The Liberty Street School may be a target of development. The Mid-Hudson News Network reports:

Newburgh may let developer renovate old school into condos

Newburgh -- The City of Newburgh may let Blue Stone Developers of Westchester County assume control of the long-abandoned Liberty Street School and extensively renovate it into 25 condominium units.

Mayor Nicholas Valentine is excited about the potential as additional housing stock in a neighborhood that could be reborn into a commuter area.

"It’s only a couple of blocks from the ferry and so much of what we are seeing in our East End development has to do with, 'can you walk to the ferry? If you can walk to the ferry, I’m interested because having a car or two cars as part of a family, you don’t need it if one of the spouses work in New York and commute, you can do this with a one-car family, which is a great savings."

Over at the Voy Forums, this post suggests more details (which have not been fact-checked):

[...] on August 12th of 2002 our city council with Resolution No, 151 authorized the preparation of a land Disposition Agreement with regard to the sale and proposed development of the Liberty Street School. It had to have been a City owned property. Then along came May 9th 2005, Resolution No.79-2005

A resolution rescinding Resolution 151-2002 and Resolution No. 17-2003 concerning the real Property known as Liberty Street School(Sec 45,Block5,Lot 18 in the City of Newburgh.

This property was to be developed as a Academy of arts. It is apparent the funding did not come through in a timely manner therefore the City took back their property.