An unused South William Street building in Newburgh could soon become a multi-use building.

Monday night, the city council approved City Manager Michael Ciaravino's negotiations with a developer.

Poughkeepsie-based company RL Baxter Building Company and its partners would invest more than $2.5 million to renovate a city-owned building. It would include commercial space, some apartments and a restaurant. Ciaravino says this is an exciting opportunity as part of a larger downtown development.

"By now coming down Liberty to South William Street and also looking at a project right on the corner as well as this development, it's another piece of a logical plan to proceed down the street," he said.

After the city manager's office and developers come to an agreement, the city council must approve it.