According to Soundtrack Collector, VILLAGE OF NEW YORK was written by "Gilkyson-Dehr-F. Miller." That would be Terry Gilkyson, Rich Dehr, and Frank Miller, who performed together as the group The Easy Riders. The song was written for the film, and I can't find any evidence of it having been recorded anywhere except on the soundtrack album.

There is more information about the film here and here.

Alas, I was unable to find any lyrics or sound clips.

However, a quote nearly identical to yours appears on this page, written by Julie Dietrich. She is quoting her father, Jerome Larson, who sang the song. You might try contacting her through the web site manager, who is, I think, her brother David Larson.