Poughkeepsie officials are again considering legal action against Dutchess County over a homeless shelter the county is planning on the city's north side.

Negotiations between the city and county for a compromise fell apart, which may land both sides in court as the Poughkeepsie City Council presses the issue.

Council leaders said in a statement Tuesday they thought they had ironed out a deal with the county that a vacant Oakley Street building would be turned into a supportive living facility for families and single women, instead of the general adult shelter the county was initially planning.

The council chairperson and vice chairperson said County Executive Sue Serino informed the city she will not sign off on the deal, and is sticking with the 120-bed shelter the county legislature approved last year.

Devon Luty, the third generation owner of industrial equipment manufacturer Dorsey Metrology International, said she would like some assurance from county leaders that the shelter would not hurt the neighborhood.

"I want people to be taken care of," Luty said. "I'm just concerned for my own investment and my own staff."

City council leaders insist the shelter would prevent further growth in the neighborhood, adding that the county jail's placement in the area has negatively affected the community's character and development.

The council is still fighting the shelter plans and trying to compel the county to start housing homeless people in other parts of the county, not just Poughkeepsie.

The council chair and vice chair closed out the statement writing "All options are back on the table, including moving forward with a lawsuit against the county."

Residents a few blocks away told News 12 a shelter on Oakley Street makes sense to them.

They said police and social workers just recently disrupted a homeless encampment in Pershing Park, but also that the homeless residents might move back to the park if they do not gave a safe, clean shelter option.

"[They] Need to take a deep breath for society," city resident Taron Mizel said, "and welcome what is being brought forth."

The City Council was scheduled to meet privately Tuesday evening to discuss legal options which include filing a lawsuit and filing for an injunction, which - if granted by a judge - would freeze any plans the county has for shelter on Oakley St. until the lawsuit is resolved.

Dutchess County Executive Sue Serino was not immediately available for comment Tuesday.