Efforts to find money to build a replacement for Mellon Arena and to secure the Penguins' future in Pittsburgh are advancing on two fronts.

During its meeting yesterday, City Council added its voice to those who want Pittsburgh's eventual casino operator to use slot machine revenue to help fund a new arena.

The city-Allegheny County Sports & Exhibition Authority board is expected to meet tomorrow to vote on possible terms of an agreement with the hockey team to build an arena should it win the slots license from the state.

Whoever gets the license should "fully, privately fund a new arena," City Council said in a resolution that received near unanimous approval yesterday. One council member, Sala Udin, abstained.

"Somebody's going to be very rich when they get that casino license," said Councilman William Peduto, one of the resolution's authors. It would create "a level playing field" if all applicants were required to include arena funding as part of their applications for the license.

"If a new facility is built, the capacity will hopefully increase the number of events to 200 a year," said Councilman Jim Motznik, the other author.

Council will send the resolution to the state Gaming Control Board, which will award the lone slots license in the city and is not obligated to abide by council's wishes. It also will send the resolution to five groups that are expected to apply for the license.

Councilman Doug Shields said a slots parlor next to an arena would make "an awful lot of sense," since patrons could visit both in one trip.

David Morehouse, a consultant for the Penguins, said the team was "encouraged that City Council not only sees the value of a new arena for the region but also recognizes the value of the Penguins to the region."

But council opted not to play favorites with the city's zoning code, unanimously passing changes that allow the parlor to locate at Station Square, Downtown, near Mellon Arena, on the North Shore between the West End and the 16th Street bridges, or on a small parcel in the Strip District. Those are the locations favored by the expected applicants.

Gambling is already permitted for an undeveloped hilltop in the city's Hays neighborhood.

The sports authority board, meanwhile, will meet to consider proposed terms of a deal with the Penguins should the team win the slots license. The terms would cover issues like length of lease, development rights, parking and concession revenue, and capital improvements.

Agreement was reached during a private meeting last week between the Penguins, Mayor Tom Murphy, Mayor-elect Bob O'Connor, county Chief Executive Dan Onorato, and authority officials. It came after Penguins owner Mario Lemieux said there was only a "slim chance" the team would remain in Pittsburgh after its lease expired in 2007 because of the lack of progress toward a new facility.

Mr. Onorato said the terms to be considered tomorrow are similar to the type of agreement worked out with the Pirates and the Steelers in the construction of PNC Park and Heinz Field.

"There has not been an agreement yet on all the terms. There's still some discussion," he said.

The Penguins are hoping to fund a $300 million arena through slots revenues.

Mr. Onorato also has vowed to build an arena, with or without slots money. As part of that pledge, the city and county may ask for $90 million in state funds previously earmarked for an arena.

Like City Council, Mr. Onorato also has said he would like to see the winner of the Pittsburgh slots license dedicate revenue toward an arena.