Gov. Ed Rendell is willing to commit more state money to remaking the Fifth and Forbes corridor Downtown, but it may not be as much as the developer of 19 city-owned buildings wants.

During a visit to East Liberty yesterday, the governor said he is prepared to provide state money to help with $71 million in projects proposed by Millcraft Industries Inc. of Washington County, including the reuse of the old G.C. Murphy's store on Fifth Avenue.

Mr. Rendell said, however, the amount may fall short of the $18 million Millcraft requested from the state during a meeting in Harrisburg last week.

"I'm not sure we can do all of that, but we're going to try to be helpful," he said.

The money would supplement nearly $34 million in state funding Mr. Rendell already has committed to efforts to transform the blighted corridor, once the city's retail hub.

He has given $30 million to PNC Financial Services Group for its $170 million office tower on Fifth Avenue, where construction is expected to start this summer, and $3.75 million toward Millcraft's $52 million conversion of the former Lazarus-Macy's store at Fifth and Wood Street into condominiums, offices and retail space.

Mr. Rendell could not say how much the state would be able to commit to the latest initiative, but he added he likes what Millcraft and partner Ira Morgan are proposing for the corridor, starting with the reuse of the 19 city-owned buildings.

The initial phase would involve the $21 million transformation of the Murphy's store into Marketplace Square, featuring 50 apartments and condos, 25,000 square feet of stores, and 50 parking spaces. The $50 million Forbes Village on Forbes Avenue would offer 150 apartments and condos and 20,000 square feet of stores.

"It has the capacity to totally turn around Downtown Pittsburgh, so we intend to be helpful," the governor said.

Lucas Piatt, Millcraft vice president of real estate, said much of the requested state aid would be used for infrastructure-related improvements, such as facades, sidewalks, and water and sewer lines.

The state's inability to provide the full $18 million wouldn't kill the project, but it could affect the developer's ability to offer more moderately priced housing, Mr. Piatt said.

"We're trying to do affordable housing, which is a real challenge Downtown," he said. "[State money] would assist us in doing some more affordable housing."

The request for $18 million in state aid is lower than the $24 million in public subsidies Washington, D.C., developer Madison Marquette had sought for a proposed $50 million to $60 million redevelopment in the corridor. Mayor Bob O'Connor balked at the level of subsidies for that project.

In addition to Piatt Place, Marketplace Square and Forbes Village, Millcraft also is talking conceptually about adding more apartments, more retail and entertainment, and student suites in subsequent phases, perhaps in partnership with other building owners.

Overall, Millcraft's total investment Downtown could approach $269 million, including its conversion of the Lazarus-Macy's building.

Millcraft and the city's Urban Redevelopment Authority also are trying to finalize an agreement by Thursday that would give the developer exclusive rights over the 19 city-owned properties in the corridor.

The city spent $13.8 million acquiring the parcels, mostly on Fifth and Forbes avenues, but could end up selling them at a loss as part of the deal. The properties carry an assessed value of $9.5 million.