NORWICH – A possible tax break is in the works for a proposed $14 million project that would breathe new life into an industrial building in downtown Norwich.

The Chenango County Industrial Development Agency (IDA) is considering a 20-year tax abatement for 20 American Ave., locally known as the Unguentine building, which would expedite ongoing efforts of private developers to construct up to 30 apartments in the four-story building with commercial units on the ground floor.

The IDA Board accepted an application for a payment in lieu of taxes (PILOT) agreement last month, citing a need for more quality workforce housing in the city. The agreement is a first for the Chenango IDA which has never struck a PILOT deal for a residential project.

“This is new to us,” said Sal Testani, president and CEO of Commerce Chenango, the sister agency of the Chenango IDA.

Testani also pointed to other IDAs which have executed similar PILOT agreements in other municipalities. “It’s very progressive, but I think it shows the right path for this IDA.”