The Pittsburgh Penguins' partner in a proposed $1 billion development at the site of Mellon Arena is willing to put up $290 million to pay for a new, 18,000-seat home for the National Hockey League team.

The Penguins' development, which would secure the team's future in Pittsburgh, is contingent on winning a license for the city's slot machine casino.

Besides construction of a casino and a replacement for the aging arena, oldest in the NHL, the development would include a mix of offices, residential units and retail space.

The Penguins will team with a yet-unidentified gambling operator and with Nationwide Realty Investors of Columbus, Ohio., to handle development.

As part of its application for the Pittsburgh slots license, the gaming operator intends to pledge the money to build a new arena. It also would finance construction of the casino for 3,000 slot machines, with room to expand to 5,000.

The Penguins will not be the applicant for the state license, nor will the team take any profits from the slots casino. Once a new arena is built, it plans to turn ownership over to the city-county Sports & Exhibition Authority.

In all, the casino and arena developments are expected to cost a total $600 million to $700 million. The team is planning at least another $400 million in development at the current 50-acre arena site.

The Penguins were expected to announce details of the proposed development today. David Morehouse, a consultant for the Penguins, would not comment on the proposal last night.

Nationwide Realty financed construction of the 18,500-seat Nationwide Arena in Columbus and spearheaded development of the 95-acre arena district, which includes bars, clubs and a movie theater. The firm also has been involved in development of the Waterfront complex in the Homestead area and other projects in Pittsburgh.

The mixed-use development proposed by the Penguins is similar to a $500 million office, retail and housing plan it unveiled several years ago in a bid to win public support for a new arena.

That proposal would have included shops, restaurants, parking garages, three to seven new office towers, and rental and for-sale housing. While the theme of the new plan essentially is the same, the mix probably will change, based on the current real estate and office climate.

The Penguins are planning to restore a street grid that will reconnect the lower Hill District with Downtown. The team also intends to use the former St. Francis Central Hospital property it purchased for $8 million in 2000 as part of its proposal.

In addition to teaming with a casino operator and Nationwide Realty, the Penguins are hoping to join with a local group so additional slots-related revenue can be returned to the community.

With today's expected announcement, the team will be the first of the potential competitors for the Pittsburgh casino to unveil detailed plans. The sports authority board also is expected to meet today to consider possible terms relating to a new arena should the Penguins secure funding for it.

Others expected to be in the hunt for the casino license are Station Square owner Forest City Enterprises, which will team with gambling power Harrah's Entertainment; Alco Parking Corp. President Merrill Stabile; MTR Gaming, owner of Mountaineer Race Track and Gaming Resort; and Beaver County developer Charles Betters.