With two East Liberty hotels in limbo, the city's Urban Redevelopment Authority is considering a $300,000 grant to help shore up funding for a third.

The URA board is expected to vote Tuesday on whether to authorize the grant to Governor's Hotel Co. LP to help cover soft costs related to the proposed $21.5 million Hotel Indigo development at North Highland Avenue and Broad Street. Soft costs are expenses, such as architects' fees, that are not direct construction costs.

URA Executive Director Rob Stephany said the developer has lined up financing for the hotel, has secured the required zoning and planning approvals, and is set to go with the project, no small feat given the economy and tight credit markets.

"This is the over-the-hump cash they needed," he said of the grant. "They've pushed over an awful lot of hurdles and it looks as if they're getting ready to close on the deal."

Mr. Stephany said the grant would help to make up for some city tax abatements the developer had expected but lost when the five parcels needed for the project were consolidated into one lot.

Construction is expected to take 13 months, with the hotel scheduled to open in 2010. The limited-service boutique hotel involves use of East Liberty's former Governor's Hotel and other existing buildings as well as new construction. In addition to the proposed grant, the URA has provided a $2.75 million loan for the hotel.

The project is faring much better than plans for two other hotels, a 105-room Homewood Suites and a 113-room Hampton Inn, advanced by Highland Hotel LLC. The developer had trouble securing financing, prompting the URA to move last month to purchase for $300,000 two of the parcels needed for the hotels. The agency now is hoping to entice another developer to take on the project.

Also on Tuesday, the URA board will consider:

• A proposal by developer Millcraft Industries to convert a $2 million URA loan for the Piatt Place project at the former Lazarus-Macy's store into a federal New Market Tax Credit loan. Mr. Stephany said the change would enable Millcraft to bring more capital into the project and help develop office space needed for state employees moving in the fall. Millcraft is buying the State Office Building for $4.6 million.

• Creation of a new $2 million Pittsburgh Entrepreneur Fund to aid start-up and growing businesses, particularly those involved with emerging technologies like information technology, life sciences and green energy initiatives.

• A proposal to authorize about $1 million in funding for site development and the construction of five houses at a former 4.3-acre brownfield site in Manchester once owned by the Thomas & Betts Co. The initial phase is part of a plan to build 31 market rate houses for sale as part of the development.