Farrell council supported granting an option Monday to a developer who wants to build housing for the elderly in the former Farrell City Park.

Alpha Housing and Health Care Inc., New Castle, proposed building a 19-unit independent living apartment complex on 2.96 acres, connecting to Memorial Drive Extension.

Council recommended the Farrell Redevelopment Authority enter into an option agreement, the length of which will be determined later.

The one-bedroom apartments would be about 540 square feet each, and the building would have a laundry room and community room for all to use, said architect Robert L. Marz, vice president of Roth Marz Partnership P.C., which is based in Erie.

A building manager would live on site, leaving 18 apartments open for rent.

John Hadgkiss, president of Alpha, said the company will seek a competitive grant of about $1.4 million from the federal Department of Housing and Urban Development for construction.

He said the project would take the entire amount of money and number of units available for this district in this round of funding.

"We're going for the whole shooting match," he said. "With the city's backing, I think we'll be successful."

The 5-1 council vote did not have Councilman Louis Falconi's backing. He said he would rather see commercial or business development that would benefit more of the community, such as a restaurant.

"That's the last of the prime land that we have," he said.

Falconi added he is "not crazy" about the proposal and is not convinced there is a need, noting figures from Mercer County Community Action Agency that Gargano Towers, a 36-apartment elderly housing building in Farrell, averages only 12 people on its waiting list.

Councilwoman Helen Marenchin voted for the project but also worried about demand, particularly when she learned Alpha had not conducted a marketing study.

Hadgkiss said HUD would not fund the project unless Alpha could show that every unit would be filled and would demand a marketing study.

He added that Alpha has units from Philadelphia to New Castle, including 200 in Lawrence County. "We have a waiting list for every unit we ever put up," he said.

The company has a 23-unit complex in Wampum that is full. "It's a very remote area compared to Farrell, Sharon and Hermitage," he said.

While the company might seek tax-exempt status, Hadgkiss said it plans to pay property taxes to the city, school district and county in whatever amount a privately funded project of its size would be charged.

"All of our units pay property taxes," he said. "We pay whatever the taxes are."

Hadgkiss said Alpha is facing a June 1 deadline to apply for the HUD grant.

Council agreed to accept the sale price as determined by HUD. City Manager LaVon Saternow said the sale price will be based on the land's appraised value.