We present our ongoing work on the development of a new quadrotor aerial vehicle which has a tilt-wing mechanism. The vehicle is capable of take-off/landing in vertical flight mode (VTOL) and flying over long distances in horizontal flight mode. Full dynamic model of the vehicle is derived using Newton-Euler formulation. Linear and nonlinear controllers for the stabilization of attitude of the vehicle and control of its altitude have been designed and implemented via simulations. In particular, an LQR controller has been shown to be quite effective in the vertical flight mode for all possible yaw angles. A sliding mode controller (SMC) with recursive nature has also been proposed to stabilize the vehicle's attitude and altitude. Simulation results show that proposed controllers provide satisfactory performance in achieving desired maneuvers.