The city of Farrell has approved the construction on a new sanitary sewer system in the Steel City Terrace redevelopment area.

A sanitary sewer permit was issued Wednesday, said City Manager LaVon Saternow.

The city had held up the permit while waiting for a performance bond to be obtained for the work.

"We have the bond and we have a signed agreement," Mrs. Saternow said.

Once the system is complete, the city would take it over for maintenance.

With the bond, the city would be able to complete the project should developers fail.

The city's sanitary sewer consultant, Gannett Fleming Inc. Pittsburgh, approved the designs for the system, Mrs. Saternow said.

"Everybody's happy," she said.

Mercer County Housing Authority and Ralph A. Falbo Inc., Pittsburgh, are tearing down the existing Steel City Terrace public housing apartment buildings and replacing them with new public housing apartments, apartments for rent at closer to the market rate and homes for sale.

Work is being done on Steel City property and will eventually be conducted in the surrounding neighborhood.

Authority Executive Director L. DeWitt Boosel said he was not sure when the sewer construction would begin, but preparatory work is under way.

"They're moving topsoil and doing the ground work that has to be done before" they can put the sewers in, he said.