Shawn Magrath Photo

NORWICH – The City of Norwich Joint Committee is pondering a proposal that could breath new life into the long vacant Unguentine Building on American Ave. in the downtown area.
According to Community Development Specialist Todd Dreyer, there’s interest from a private development firm to repurpose the four-story, 67,000 square foot brick warehouse, once owned by Norwich Pharmaceuticals, for affordable housing with as many as 40 apartments. A walkthrough with a representative of the firm was coordinated last month between Dreyer and the building’s current owner.
“There’s definitely interest in the project, but they didn’t want to do it if it wasn’t going to be received well by the city’s elected officials,” said Dreyer.
The proposed project would include two apartments designated specifically for elderly tenants and about half a dozen for people with developmental disabilities. The remaining apartments would be available to families with 60 percent or less of the medium income (which is $24,780 annually for a single individual; $35,340 for a family of four).
The project, if pursued, would likely be eligible for the same tax credits received by Two Plus Four Management, the company that developed Cobbler’s Square Apartments on State Street in 2013. Although Two Plus Four pays approximately $26,000 a year in taxes, the property is re-assessed every year under a special section of property tax law. And that’s all part of the draw for the Unguentine Building, said Dreyer.
“I think the tax credit financing that’s used for these types of things is what makes it a viable project,” he added.
But the idea of more affordable housing in Norwich may not be in the city’s best interest, according to some city officials. Some argued that large housing complexes can cause issues that demand attention and may even discourage private investors from developing high-end housing in the city.
“A lot of cities are moving away from apartment complexes and more toward individual housing,” said City Supervisor Robert Jeffrey. “When you cluster people together, you start to see some challenges. It’s a great concept, but is it right for Norwich?”
Then there’s the issue of demand. Committee members agreed that such a project can’t move forward without evidence of a need for affordable housing. The city worked in conjunction with Two Plus Four to have a third party conduct a housing study for the Cobbler’s Square project in 2012, and the city still has the results. However, that study is already four years old, said Dreyer, so an updated study may be warranted.
The council also agreed that the proposed project ought to align with the city’s comprehensive plan.
“If we were to look at anything major like this, it has to be considered through the context of our long-term strategy and how it fits into our comprehensive plan,” said Ward Three Alderman John Deierlein.
Deierlein also said that he still has questions about the project.
Given that the Unguentine Building has been abandoned for decades, the city hasn’t ruled out the possibility of an affordable housing project. Members of the Joint Committee agreed that they needed more information from the developer in order to make any further decisions.