Farrell council Monday agreed to use its power of eminent domain to create new deeds for two parcels.

Mercer County Housing Authority's nonprofit affiliate, Community Homebuyers Inc., bought the parcels at tax sale to be part of the redevelopment of Steel City Terrace, Farrell.

Authority Executive Director L. DeWitt Boosel said no deeds could be found for the properties. To create a deed, the city had to condemn the properties, he said.

The city's move comes on the heels of the authority's action two weeks ago to condemn 17 other properties to clear their titles.

In some cases, the properties were up for tax sale decades ago and the original owners have died and their heirs moved away.

"You would be amazed at some of the problems with the lots," Boosel said.

A person or business who buys the lots probably would not be able to get clear title to them because only public entities can use the power of eminent domain, he said.

Under the Steel City plan, the authority and developer Ralph A. Falbo Inc. of Pittsburgh plan to demolish the existing Steel City public housing apartment buildings and replace them with 74 public housing units, 45 apartments for rent at closer to the market rate and 26 homes for sale.

Some of the work would be done in the surrounding neighborhood on properties CHI has bought.

The first phase of the project, demolishing existing Steel City buildings and building 53 apartments, has begun.

In a related matter, City Manager LaVon Saternow said she met recently with state officials about a $2 million grant the city sought on behalf of the authority.

While state Department of Community and Economic Development officials "liked the project," she said, they added: "They assured us that the grant would be for less than $2 million."

Developers proposed using the grant for projects such as site development, demolition, infrastructure and resident support services.