A Hill District group said it has a tentative agreement with the city, Allegheny County and the Penguins that will give residents the first crack at arena-related jobs, corporate help for neighborhood improvements and $2 million toward a long-sought grocery.

Leaders of the One Hill Community Benefits Agreement Coalition said during a news conference yesterday afternoon that the deal includes creation of a neighborhood master plan funded by the city and county and help in developing a multipurpose center for youth, seniors and families.

However, the group has dropped its demand for a $10 million development fund in favor of a state tax credit program.

Carl Redwood, the One Hill coalition co-chair, described the deal as a "historic event" that not only will benefit the Hill but the city as a whole. He said the agreement now goes before the One Hill membership, made up of 100 organizations, for ratification May 3.

While One Hill leaders touted it as a tentative agreement, Allegheny County Chief Executive Dan Onorato and Mayor Luke Ravenstahl stopped short of making that declaration, although they acknowledged the deal was nearing completion.

"I think we are real close to signing now. That's the good thing," Mr. Onorato said. "I never want to say it's finished until we sign. But I think this is the closest we've been to having everybody's signature on a document during the entire process."

In a statement, the mayor said "we are closer to our goal of ensuring the Hill District grows stronger with the new arena development."

"There are a lot of people who put in a lot of work on this and it is accurate to say we are close to a deal," Penguins spokesman Tom McMillan said.

One Hill leaders said the community benefits agreement is the first of its kind in Pittsburgh and a "very important step" in revitalizing the Hill. It culminates a year of work.

"We all believe that this CBA agreement will really lay the groundwork for a very bright future and becomes a true start of continuing the momentum and growth of the Hill District as a neighborhood," said Evan Frazier, lead negotiator for One Hill.

Two keys to the tentative deal are access to a state tax credit-backed Neighborhood Partnership Program funded in part through corporate support and a First Source Center for jobs.

Under the partnership program, One Hill and the Hill House Association would establish a team to develop a plan for neighborhood improvements. Those initiatives would be presented to corporate sponsors for funding. The state also would have to approve the plan.

One Hill estimates the program could generate $500,000 a year in corporate funds for six years. The Penguins have agreed to help in the development of the program.

The First Source Center in the Hill would include a CareerLink job center plus resources for training, counseling, and "growth development." It would be patterned after the Big Step program in Milwaukee.

According to the terms released by One Hill, the city and county have agreed to provide $90,000 a year for at least two years to help in developing the program. Additional funding is expected through foundations.

The Penguins also have agreed to give qualified Hill District residents first consideration for service-related positions in the new arena before opening the jobs up to other applicants.

Financing for a proposed Hill grocery would be separate from the Neighborhood Partnership Program. That deal is unchanged: $1 million from the URA and $1 million from the Penguins.

If the grocery does not come to pass by Dec. 31, 2009, the Penguins' $1 million could be redirected to "another suitable economic anchor" chosen by the team.

There is, as yet, no final agreement with Save-a-Lot, with which the neighborhood is still in negotiations.

Nor is there a final deal over how or whether the eventual tenants of the 28-acre site adjacent to the arena will be encouraged or required to unionize or pay living wages. The Penguins have agreed to encourage union neutrality, but not to require it.

One parts of the deal, according to One Hill, include:

• Development of a city and county-funded master plan for the Hill, including the hiring of a planning professional.

• City and county assistance in helping the YMCA to develop and sustain a multipurpose center for Hill District youth, families, and seniors.

• A city-county review of social services in the Hill with the goal to identify gaps or problems and to prioritize needs.