Mayor Bob O'Connor's administration has asked City Council to start approving aid for development of the proposed PNC Financial Services Group tower, Downtown.

Council yesterday received a resolution that would allow the Urban Redevelopment Authority to craft a plan to borrow $18 million to help finance the tower.

The URA would pay the debt using most of the new parking and property taxes from the development that would otherwise go to the city, Allegheny County and Pittsburgh Public Schools, in a process called tax-increment financing, or TIF.

City Council, Allegheny County Council and the city school board must pass resolutions allowing the URA to create such a financing plan, and later approve separate measures for the final plan.

PNC wants to build a 25- to 30-story tower that would include a luxury hotel of 150 or more rooms, about 30 top-floor condominiums and 360,000 square feet of office space. It is expected to cost $170 million.

The state has promised $30 million for the project.

"Having a $30 million grant and an $18 million TIF seems excessive," said city Councilman William Peduto.

City Council President Luke Ravenstahl called the tower "the shot in the arm our Downtown needs," and said he plans to support the financing plan.

County Council's economic development committee is expected to consider the TIF tomorrow.

Mr. O'Connor's administration also submitted a final plan for a $25 million financing of four proposed parking garages in South Oakland.

The parking garages would provide spaces for workers at 11 buildings proposed for the Pittsburgh Technology Center. The URA has said those buildings would bring $3.2 million in new tax revenue to the city.

The URA's board is set to vote Thursday on whether to create a financing plan for PNC's tower, and on the garage financing. The school board is expected to vote on both Jan. 25.