The Hill District's long drought without a grocery could be nearing its end.

City Urban Redevelopment Authority board members yesterday selected Kuhn's Market, in partnership with the Hill House Economic Development Corp., to build a 40,000-square-foot full-service grocery store at Centre Avenue and Heldman Street.

The URA chose Kuhn's over St. Louis-based Save-A-Lot, the discount chain that offered to build a 16,000-square-foot limited-service grocery on the same city-owned parcel.

"We're very excited that we think we have a horse to ride here," URA Executive Director Rob Stephany said.

What made the difference in the choice, URA officials said, were the wishes of Hill residents, who preferred a full-service store. The Kuhn's market will include a pharmacy, a bakery and a cafe.

Peter Boschini, a Kuhn's representative who attended the meeting, said the store probably will have 10 times the items a Save-A-Lot would and employ more people.

"You won't have to make three or four trips," he said. "This is some place you can go and get everything you need."

Another board member, state Sen. Jim Ferlo, D-Highland Park, warned that there were details to work out.

In that regard, the URA board gave Kuhn's and Hill House an exclusive three-month period to work out final financing and other issues. If that is done, the board then will consider the next step -- sale of the publicly owned land to the co-developers for the project.

"Our collective prayer is a groundbreaking in a few months," Mr. Ferlo said.

The development will be aided by a commitment of $1 million each from the URA and the Penguins, as part of a community benefits agreement reached with Hill residents.

Evan Frazier, Hill House president and chief executive officer, said there's still a $2 million gap in the funding needed for the $8.4 million project. Hill House and Kuhn's are hoping to secure the additional funding from local foundations and the state. He said both are "very optimistic" about the prospects.

"We do think it's achievable," he said. "It's not an overwhelming gap."

Mr. Frazier said that Kuhn's has committed to a 10-year lease as part of the proposed deal.

Howard B. Slaughter Jr., chief executive officer with Landmarks Community Capital Corp., which has worked with Save-A-Lot on the Hill store, said he respected the wishes of the community.

He said Save-A-Lot will continue to scout for locations in the city, although it's not interested in putting a second grocery in the Hill. However, if the Kuhn's deal should fall through for some reason, "we're certainly willing to come back to the table," he said.

The Hill has been without a grocery for many years, despite efforts by the city and the community to entice an operator into the neighborhood.