The city-Allegheny County Sports & Exhibition Authority board authorized a $325 million bond issue for a new arena that will keep the Penguins in Pittsburgh for nearly 30 years.

Yesterday's action was among several significant steps taken by the SEA board to move the arena construction into full gear and to cement the March agreement reached between the Penguins and state and local leaders that kept the team here.

Meeting less than an hour, the board authorized the SEA to:

Enter into a lease with the Penguins on the new arena, one that will run 29 years and 11 months, based on the terms agreed to in March, plus an accompanying agreement that will bind the team to Pittsburgh for at least that long. The formal lease documents are still being finalized.

Buy the former St. Francis Central Hospital from the team for $8.5 million, $500,000 more than the Penguins paid for it in 2000. The property is needed for the arena construction.

Enter into an extension with the Penguins covering the time the team will play at Mellon Arena until their home is ready. Under the extension, the Penguins could take over from SMG as master tenant of the building in July, giving them more control over revenue.

SEA Executive Director Mary Conturo said the $325 million bond issue will cover the $290 million construction cost plus a possible parking garage, a $3 million contribution to an arena capital improvement fund, and expenses and reserves associated with the borrowing.

The SEA expects to close on the financing in the next month, freeing up money for the construction. Site preparation should be completed before the end of the year, though construction may not start until early next year.

The Penguins hope to move into their new home during the 2009-10 season, but it is still too early to tell whether that will be possible.

"I don't think anybody knows the answer to that," Ms. Conturo said.

Among yesterday's authorizations was one giving the Penguins responsibility over the arena construction, with oversight by the SEA and the state. The team has hired HOK Sport, the nationally renowned architectural firm, to design the building, which will be built behind Epiphany Church between Centre and Fifth avenues. HOK also designed Heinz Field and PNC Park.

The arena bond issue will be funded through two slots gambling-related pots and rent from the Penguins.

Pittsburgh casino winner Don Barden is providing $7.5 million a year. The state is contributing $7.5 million a year from a gambling-backed economic development fund.

The team's share will be $3.6 million a year, but that could increase by $500,000 annually if the Penguins decide to build a 500-space parking garage as part of the arena complex.

With the way the bond issue is structured, Mr. Barden won't have to start paying his $7.5 million-a-year share until Oct. 1, 2009, to give him time to get his North Shore casino up and running.

Mr. Barden was awarded the Pittsburgh license by the state Gaming Control Board in December, but the two losing bidders appealed the award to the state Supreme Court, which has yet to issue a ruling. If the award is upheld, Mr. Barden hopes to open his casino in summer 2008.

If by some chance Mr. Barden wasn't able to make his payment or another of the funding sources fell short of the amount needed to pay off the bonds, the state would be obligated to make up the difference. It would be reimbursed if the money became available.

While the board authorized the SEA to enter into a new arena lease with the Penguins, Ms. Conturo said the final document still is being completed.

"Physically we're not quite ready to sign. We're a few days away from doing that," she said.

The lease gives the Penguins control over all revenue sources from the new arena, worth millions of dollars each year, but also holds them responsible for all operating and maintenance costs. They also would be responsible for booking all non-hockey events.

As part of yesterday's actions, the board also authorized the creation of a new parking surcharge related to the arena. The actual amount has yet to be set. The surcharge is designed to generate $400,000 a year to be deposited into a capital reserve fund to maintain and improve the new arena. Any amounts collected in excess of that would go to the Penguins.

The board also authorized the continuation of existing ticket surcharges of 5 percent on non-hockey tickets and 3 percent on hockey tickets and existing parking surcharges of $1 for events and 50 cents for non-events.

It also gave Ms. Conturo authority to enter into an option agreement with the team for the development rights to the 28-acre Mellon Arena site. However, Ms. Conturo said that won't be finalized for at least six months.