The AIM Center is making plans to develop "supportive house" at a city-owned site on East Main Street.
The city plans to donate the property at 1815 E. Main to the non-profit group.
AIM said it plans to plans to develop 60 units of permanent supportive housing there.
The deal at the former manufacturing site is dependent upon the site being accepted into the state Brownfield Program.
The AIM Center "offers employment, education, housing, socialization, and wellness opportunities for adults living with serious mental illness. We are non-medical and non-clinical; however, we work with other mental health professionals to provide comprehensive mental health services."