The city of Pittsburgh's development arm plans to get back in the business of backing beer, after the Urban Redevelopment Authority board voted today to lend $300,000 to an investor looking to buy Penn Brewing Co. and return its brewing and bottling operations to the base of Troy Hill.

That investor, Tom Pastorius, was the founder of the brewery and restaurant, but sold it to Birchmere Capital in 2003 and saw the manufacturing outsourced to Wilkes-Barre. He said after the URA vote that the loan will allow him to purchase the business -- as soon as issues regarding the ownership of the building are worked out.

His purchase is contingent upon the nonprofit North Side Leadership Conference buying the building -- which still contains the Penn Brewery restaurant and offices -- from its current owners, E & O Partners. The conference and the partnership were close to a sale until the latter demanded more cash -- in addition to tax credits and the assumption of debt -- than the latter could afford.

Because the transfer of the building isn't final, URA board member Jim Ferlo, a state senator from Highland Park, voted against the loan. The other four board members voted for it.

The decision comes just weeks after Iron City Brewing left the city for Latrobe, despite having received a loan from the URA and large-scale debt forgiveness from the Pittsburgh Water and Sewer Authority.

"With Iron City's departure from the city," said URA Executive Director Rob Stephany, "Penn Brewery . . . could stand to really re-enter the marketplace in a strong way" as Pittsburgh's beer.

Mr. Pastorius said the URA's decision makes it possible for him to buy the business as soon as the building's ownership is settled.

"I love the business," said Mr. Pastorius. "I love the beer. It's my legacy. I don't want to leave it in shambles."

The URA board also approved a $50,000 loan to Brookline Beer, for which it had to waive guidelines that usually bar lending to beer distributors. Mr. Stephany said that loan is necessary to help a Brookline Boulevard anchor business to maintain inventory while refinancing debt.