They're a long way from asking customers if they'd prefer paper or plastic -- they don't even have a date set for their ground-breaking -- but Hill House Economic Development Corp. officials yesterday announced that they've lined up financing for a new grocery in the Hill District.

For three months, supporters of the $8.4 million project had wrestled with a $2 million shortfall. The Urban Redevelopment Authority board had set its Thursday meeting as a deadline for the funding to be arranged.

Yesterday's announcement by Evan Frazier, Hill House Association president and chief executive officer, followed monetary commitments from public and private sources that are expected to cover those costs.

"We're pleased to share that we've secured funding to close the gap for the $8.4 million Kuhn's Market proposal for the Hill District grocery store," Mr. Frazier said.

"In spite of the challenging economy and the way financing has been struggling out there, we feel really good, thanks to people like Dan Onorato with the county and Jake Wheatley with the state and a few local foundations that really stepped up. The $2 million hurdle that seemed to be a barrier with the URA, we feel, has been satisfied. At least from our side."

Kevin Evanto, spokesman for Allegheny County Executive Dan Onorato, said the county is pitching in $750,000 in federal Community Development Block Grant money that is intended to boost low-income areas.

Another $500,000 in state money, Mr. Frazier said, was delivered by Rep. Jake Wheatley, D-Hill District. The remaining $750,000 has been secured from foundations and local sources, he said.

"We knocked on a lot of doors," Mr. Frazier laughed.

Mr. Frazier said the grocery is critically important, not only to meeting basic food needs for the neighborhood and the jobs it would bring, but also as a building block for developing the community.

"Not a day goes by that people don't ask what's happening," he said. "It's something we're all rallying behind to make happen."

The financing still must be approved by the URA board.

Kuhn's plans to build the 40,000-square-foot, full-service grocery, including a pharmacy, a bakery and a cafe, on city-owned property at Centre Avenue and Heldman Street.

If the financing had not emerged, however, discount grocer Save-A-Lot might have emerged as a contender with its plans for a 16,000-square-foot, limited-service store.

Whichever grocery ends up being built will get $2 million in help from the Pittsburgh Penguins and the URA under a community benefits agreement reached last year with Hill leaders.

"A number of factors, many of them beyond our control, remain to be dealt with before he could talk about actually breaking ground for the new store," Mr. Frazier said. "But we're doing everything we can to move ahead with this project. We'll know more after Thursday."