RALEIGH, N.C. -
The state of North Carolina has rejected a bid by Raleigh to buy the Dorothea Dix property and countered with a higher price.
“The State believes that the City’s appraisal substantially undervalues the property,” General Counsel Robert C. Stephens of the State writes to Thomas McCormick, the city attorney.
The state declined to assume any “clean-up costs” for the property when it came to environmental issues.
The state also said the Department of Health and Human Services needed to remain on the Dix property, rather than be moved. Stephens wrote that the cost of moving DHHS would “be substantial.”
The state offered to sell the city 243.95 acres at $213,953 per acre for a total price of $52.2 million.
The remaining 64 acres would remain with the state.
The city of Raleigh had offered to buy the Dix property for $38 million in a letter to Gov. Pat McCrory’s office on March 24.
In that offer, the city asked the state to pay any environmental costs. The city also offered to 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."
Mayor Nancy McFarlane said through a spokeswoman that the city is willing to continue negotiating.
Click here to read the City of Raleigh's offer to purchase the Dix property.