When the Cincinnati Reds played at home, owners of the Hofbrauhaus, a German-style beer hall in nearby Newport, Ky., noticed that business was very good. But when the Pirates came to town, they found business to be even better.

Thus, the seeds were planted to build only the third Hofbrauhaus in the United States, in Pittsburgh at the SouthSide Works.

After lengthy delays, including concerns about the impact of Allegheny County's recently enacted 10 percent drink tax, the city Urban Redevelopment Authority board cleared the way yesterday for construction of the restaurant, which will be built behind the Cheesecake Factory, facing the Monongahela River.

The other Hofbrauhaus is in Las Vegas.

At one time, officials hoped to open the Pittsburgh Hofbrauhaus, which will feature a brew pub and an outdoor beer garden, by spring 2006. Now they are shooting for an opening in late October or early November.

Nick Ellison, managing member of Hofbrauhaus Pittsburgh LLC, said the project was held up by a number of issues. One involved disclosures required by the federal government. Another was delays in getting the site it wanted in the SouthSide Works.

Mr. Ellison said the $3.8 million project also was nearly derailed by the county's 10 percent drink tax, which caused some investors to become skittish and forced Hofbrauhaus Pittsburgh LLC to restructure its financing.

"We're going ahead, but we're concerned about it," Mr. Ellison said.

The South Side Hofbrauhaus will feature bench-style seating for about 600 people indoors and another 400 outside. It and the two others are patterned after Munich's famous Hofbrauhaus, which was founded in the late 16th century.

Mr. Ellison said about 99 percent of the beer consumed there will be brewed on the premises. Beer will be served in one liter and half-liter glass mugs. The menu will feature authentic German food as well as standard American fare like sandwiches and salads.

The restaurant will employ about 200 people and have a $2 million payroll.

The board also accepted a $600,000 state Growing Greener II grant to be used for the Carlyle condominium project Downtown, despite concerns by state Sen. Jim Ferlo, a board member, about whether prevailing wages were being paid and about union participation in the development. The grant will be used to replace a utility vault.

David W. Bishoff, president of Columbus, Ohio-based E.V. Bishoff Co., the developer, said he did not know if prevailing wages were being paid, but added that would be determined by a state audit required as part of the grant.