Mt. Lebanon commissioners voted 4-1 Monday to approve a $6.1 million tax increment financing package for developer Michael G. Zamagias Interest Ltd. to build a condominium complex on Washington Road at Bower Hill Road.

Commissioner Keith Mulvihill voted against the TIF, which would divert tax revenues of $10 million from school and municipal tax coffers over 20 years to pay for $4.6 million in public improvements, including a turning lane on Bower Hill Road, public parking and a parklet.

"My biggest concern is the level of contribution from the developer has changed significantly since this project was proposed," Mr. Mulvihill said. He said early figures indicated the developer would put 20 percent equity into the project but, recently, that figure had dropped to less than 10 percent, with the remainder financed through loans.

"I'm not a big fan of tax increment financing," he said. "The way this one is proposed, I just didn't think it got over the hurdle."

Commissioners Barbara Logan, John Daley, David Humphreys and Dale Colby voted for the TIF.

Mr. Humphreys, the commission president, said the proposed development fit in with consultant Chan Krieger's Washington Road plan done in 1995 and the town's comprehensive plan completed in 2000, both of which called for high density residential development on that corner.

"We had numerous residents who worked on the comprehensive plan and this fulfills it," Mr. Humphreys said. "It will greatly benefit Mt. Lebanon."

He disagreed that the amount of equity was an issue in the project, because the developer is responsible for the whole cost of the project, whether it is an initial investment or a loan.

The school board has approved the TIF and the county is not participating.

A previous developer had received a TIF for a proposal for condos on the site, but that project fell through because of lack of sales.

Washington Park, a two-phase development, is projected to cost $42.8 million and would be assessed at $37.3 million upon completion. The two-building complex would include 72 units and nearly 14,000 square feet of first-floor retail space.

Over the life of the TIF, the school district and municipality would retain $9.6 million in taxes. The current assessed value of the 1.71-acre site is $845,000.

Prices of units will range from $290,000 to $1.1 million.

The developer still needs several approvals from the commission for the land development plan and other routine approvals, including a conditional use request for retail on the first floor.

Construction of phase one could start in November. The second phase would be built as demand dictates.