A dozen townhouses are to be built on one of the few parcels of unused land remaining in Mt. Lebanon, an example of the type of transit-oriented residential development long sought by the Port Authority.

The one-acre hillside site assembled by Chatham Development Corp. of Pittsburgh is situated along the light-rail line near the Poplar station.

A sidewalk on the housing side of the new street that will end in a cul de sac will make it a short trek for residents to access the transit line. A landscaped "green" buffer zone on the other side of the street will separate the development from the trolley tracks.

"We think the simple economics of gasoline costs and [Downtown] parking will help drive sales," said Mike Eveges, an engineer and Mt. Lebanon resident who's president of Chatham Development. "We think the townhouses will appeal to baby boomers and mid-career professionals."

The three-bedroom, brick units are expected to be priced at $399,000 each, which includes a two-car garage in the basement and a private elevator as an option to climbing steps necessitated by the way the units will be integrated into the tree-covered hillside. Chatham has chosen "Shady Grove" as the name for its undertaking.

Mt. Lebanon officials are expected to approve development and street plans this week. Port Authority directors are expected to approve retaining wall and storm water drainage easements next month. Construction is scheduled to get under way late this summer.

"This is the first-of-its-kind, transit-oriented development in the area," Mr. Eveges said. "It will demonstrate possibilities for the future."

Authority officials and the county's Economic Development Department have been studying potential residential and business developments in proximity to other places along the T, including Dormont Junction, Potomac Avenue and Mt. Lebanon Station, where the authority would sell "air rights" to enable construction over top of the station.

Mr. Eveges said Shady Grove will raise the local and county tax base as well. The current assessed value of the property is $83,800; the future value is to be about $4.8 million.

The Port Authority expects to benefit not only by increased ridership, albeit tiny in the overall picture, but also by encouraging smart growth for the future.

There is a proposal for Potomac Station that involves redevelopment of property currently occupied by a gasoline station and a convenience store. At Dormont Junction, plans call for building a park-n-ride garage on the current park-n-ride lot, with the first floor to be used for offices and small business. And at Mt. Lebanon Station, officials are considering large-scale development between the station and Washington Road, including building a deck over the station so building can occur on top.

The studies are being financed through the state's Transit Revitalization Investment District Act, which authorizes public agencies to work with the county and local governments and the private sector to create joint public-private "neighborhood" development projects concentrated around transit facilities.

State Rep. Chelsa Wagner, D-Beechview, is seeking to establish more revitalization districts in proximity to the T in Beechview and South Hills Junction.