RALEIGH: City offers to buy Dix property for $38 million - WNCN: News, Weather

Raleigh offers to buy Dix property for $38 million

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Negotiations between officials from the state and the city of Raleigh began again last month regarding the future of the campus. Negotiations between officials from the state and the city of Raleigh began again last month regarding the future of the campus.
RALEIGH, N.C. -

The City of Raleigh has offered to buy the Dorothea Dix property for $38 million.

The city sent the offer to Gov. Pat McCrory's office on March 24, asking for a response by March 31. If the state accepts the offers, the city will then lease about 40.3 acres back to the state at $1 per year for 15 years "to facilitate the transition of DHHS operations to another location."

The city estimates the total value of the offer to be $44.3 million.

As part of the transaction, the city is also asking the state to pay for any environmental cleanup costs, such as asbestos removal.

  • Click Here to read the City of Raleigh's offer to purchase the Dix property.

Negotiations between officials from the state and the city of Raleigh began again last month regarding the future of the campus.

Former Democratic Gov. Beverly Perdue signed a $68 million, 75-year lease with Raleigh officials before she left office.

But in 2013, Republican senators demanded the deal be scrapped. The Senate voted to dissolve the city's lease immediately, saying it didn't represent the property's fair-market value and failed to protect health services as the property was originally intended.

City officials threatened to sue if the lease was voided.

By the end of last year's legislative session, McCrory and House leaders worked out a "standstill" agreement under which the city would hold off on enforcing provisions of the Perdue lease while a new deal was worked out.

The Associated Press contributed to this report.

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