Agreements with two senior living complexes are expected to bring additional tax revenue to the Mt. Lebanon school district and municipality.

One of the agreements involves the financially troubled Covenant at South Hills, which is in the process of a sale. The Covenant had fallen behind on payment of its taxes and had filed appeals over its assessment.

But, according to an agreement with taxing bodies that is retroactive to 2003, the Covenant owners have agreed to an assessment of $28 million, which is the price owners are hoping to sell the property for in the near future, said Tom Peterson, solicitor for the Mt. Lebanon School District.

That figure is down considerably from the $60 million price tag put on the property when it opened its independent living section in the fall of 2002.

According to the agreement, the Covenant owners will get a 20 percent discount on the $28 million assessment to account for the parts of the complex that are tax-exempt, Mr. Peterson said.

In addition, for the early years of the development, when it was not fully occupied, taxes will be considered on a total less than the full $28 million.

If the property is sold to a for-profit owner, then it will be taxed on the full $28 million, with no discounts.

As part of the pact, the Covenant will pay one year's worth of taxes and in exchange, the taxing bodies will hold off on any tax collection for six months.

"Their hope is that the sale will go through and then they will have some cash," Mr. Peterson said.

If the sale does not go through and the remainder of the taxes aren't paid, then the taxing bodies can file liens against the property, the solicitor said.

For the Mt. Lebanon School District that would mean a payment of $585,000 for 2004. For the municipality, which would get two years worth of payments, 2004 and 2005, it would mean about $230,000, Mr. Peterson said.

However no payments will be made until the tentative agreement is approved by the Covenant's bond holders.

The other agreement is a five-year renewal of a pact the taxing bodies have had with Asbury Heights to make a payment in lieu of taxes.

Asbury Heights has agreed to make an annual payment of $315,000 that the taxing bodies, the school district, municipality and county split based upon their millage levies.