After years of delays, a developer may be ready to move forward with a $31.3 million project to build apartments and retail space at the Castle Shannon light rail transit stop.

JRA Development Group Inc. wants to build 110 to 136 apartments above about 50,000 square feet of retail space on part of the parking lot adjacent to the LRT station.

To replace parking spaces lost to construction, the developer proposes adding parking deck above the remaining spaces, which would increase parking capacity to 650 spaces from the current 500.

Allegheny County Council is expected today to authorize a committee to review possible tax increment financing of $5 million to help finance the deck. The project also could involve state funds through the Redevelopment Capital Assistance program, said Dennis Davin, director of the Allegheny County Department of Economic Development, who characterized a development agreement with JRA principal James Aiello as "very, very close."

The project, which has been proposed in several different forms over the years, would be built along Castle Shannon Boulevard. Details haven't been worked out yet, but the site likely would have retail space on the first floor and as many as five floors of apartments above it.

A significant part of the parking project would involve grading to make the site level.

Mr. Davin said the project is part of a concerted effort by the county to promote development at or around transit stops. Such projects encourage the use of public transit and could generate revenue for the financially troubled Port Authority, which would serve as a landlord in the Castle Shannon project.

"The [light rail system] is a tremendous asset for the southern communities," Mr. Davin said. "We want to push this. As long as the Port Authority is comfortable with the arrangement, this is the type of development we want to promote to help those communities and help the Port Authority."

A TIF involves diverting a portion of the expected tax revenue from a project to help pay for construction. Representatives from Castle Shannon and the Keystone Oaks School District, which would have to approve the tax diversion, will be part of the TIF review committee.

"We would certainly welcome this development," said Thomas Hartswick, Castle Shannon's borough manager. "It would maybe be the catalyst for more transit-related development to take place."

Mr. Hartswick noted that it is common to have residential and commercial development around transit stops in cities such as Dallas and Chicago.

Neither Mr. Aiello nor Henry Nutbrown, who has been working on the project for Port Authority, could be reached for comment.

Mr. Davin said the county, Port Authority and Mt. Lebanon officials are working on a similar concept above the Mt. Lebanon LRT station, but it is in the early stages and no specific project or developer has been identified yet.