MIDDLETOWN, N.Y. -- Middletown is one step closer to having a new city court location. 

This empty building on South Street used to be a federal courthouse, but has been abandoned for years. 

Leaders in Middletown had their eyes on the building as a new city court space. 

Middletown currently uses both a designated space in City Hall and temporary rooms in the City Common Council office. 

The city was offered a $2.7 million state grant several years ago that would let Middletown buy and renovate the old courthouse; Middletown just needed the green light from the Dormitory Authority of the State of New York. 

"We have missed having the employees and the folks that used that facility around in the downtown," said John Degnan, Business Improvement District executive director. "So the downtown will benefit as a result of the municipal use that's going to happen within the property next door.

After the Common Council's final approval, the city needs to negotiate with the state Office of Court Administration about adding more space to the building.