The city and Allegheny County are taking the first steps toward building a new arena, hoping to keep the Penguins in Pittsburgh regardless of who gets the license for the city's slot machine casino.

They are asking Gov. Ed Rendell to advance $25 million to $30 million in state capital funding, to eventually be reimbursed through gambling revenues, to begin site acquisition for the new facility.

County Chief Executive Dan Onorato said yesterday officials want to start now rather than wait until the slots license is awarded in an effort to secure the future of the Penguins. The team is for sale.

"This would allow us to go to any new owner and say we're already starting this process," he said. "I think we can increase our chances of keeping the team here if they see that there's movement on the new facility, movement now on it."

The state advance would allow the city-county Sports & Exhibition Authority to begin securing property to make way for an arena. Mr. Onorato said the site borders Fifth and Centre avenues and Washington Place, the same one favored by the Penguins.

Mr. Onorato said the authority already has started doing appraisals and other preliminary site acquisition work in advance of the state funding. He said the city and the county do not have the luxury of waiting until the slots license is awarded later this year or next year to begin work.

"If we wait we won't have enough time to save this franchise. It just won't happen and we got an opportunity here to do it without tax dollars," he said.

Isle of Capri Casinos Inc., in partnership with the Penguins, has pledged $290 million toward a new arena in its bid for the city's one slot machine license. The Penguins are committed to staying in Pittsburgh if Isle of Capri gets the license.

Beyond that all bets are off.

Mr. Rendell has proposed an alternative funding plan for an arena that relies in part on a commitment of $7.5 million a year for 30 years by the winning casino operator.

PITG Gaming LLC, another Pittsburgh casino bidder, has agreed to provide the funding. The other bidder, Forest City Enterprises, also has endorsed the governor's plan, but has not committed to a dollar amount.

The Penguins have yet to embrace the governor's proposal. Mr. Rendell's plan would require the team to commit $4 million a year toward the construction.

The team is free to leave Pittsburgh once its Mellon Arena lease expires on June 30, 2007. Ownership can begin shopping the team next month.

Nonetheless, Mr. Onorato believes starting now with site acquisition gives local political leaders some leverage in talks with potential buyers.

"We're going to do everything we can to keep that franchise here," he said.

Part of the proposed arena site includes the old St. Francis Central Hospital owned by the Penguins; however, Mr. Onorato said city and county officials consider that parcel "under the control of friendly owners" and won't try to acquire it at this time.

The state money, he added, would be paid back either through the pledged contribution from the winning casino bidder or through a slots-related economic development fund to be set up by the state.

Mr. Rendell supports the advance, noting he also has forwarded money in anticipation of slots revenue for a Philadelphia convention center project.

Mr. Onorato said he believes the Penguins are in discussions with three to four groups interested in buying the team. At least one, headed by Pittsburgh native Jim Renacci, managing general partner of the Columbus Destroyers of the Arena Football league, is interested in keeping the team here.

Another who has expressed interest publicly is Lawrence Gottesdiener, head of a Massachusetts real estate development company. He wants to keep the team here or move it to Hartford, Conn.

Kansas City, Houston, Las Vegas and Winnipeg also have been eyeing the team.

In a statement, Penguins consultant David Morehouse praised the move by the city and the county, saying it is a fulfillment of a pledge the sports authority made last fall to provide land and development rights to anyone interested in funding an arena.

"The Isle of Capri stepped forward and made that commitment of $290 million, and this puts their plan one step closer to fulfillment," he said.