The Chenango IDA is weighing an unprecedented tax deal for a proposed $14 million project that would see redevelopment of the historic Unguentine building in downtown Norwich. (Photo by Shawn Magrath)

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.