North Carolina and Raleigh agree on Dix hospital property deal

RALEIGH (WTVD) -- North Carolina Gov. Pat McCrory and Raleigh Mayor Nancy McFarlane announced an agreement on the Dorothea Dix property at a noon news conference Monday.

Raleigh leaders had agreed to a deal with the previous Perdue administration to lease the former state mental hospital property, but Republicans baulked at the deal, saying the state wasn't getting enough.

Negotiations on a sale have been going on since. This past July, city officials said the state had turned down an offer of $45 million to buy the land to turn it into a park.

The new deal agreed upon Monday is for $52 million.

"This agreement allows the creation of a destination park in our state capital, protects state taxpayers and continues to honor the legacy of Dorothea Dix," said McCrory.

North Carolina closed the Dorothea Dix mental hospital on the site in 2012 and moved the last patients to Central Regional in Butner. The property also includes the old hospital and dozens of administrative buildings.

The agreement is subject to final approval by the North Carolina Council of State and the Raleigh City Council.

Click here to read the terms of the deal(.pdf)

McFarlane said she was happy to finally get a deal done.

"A centrally located urban park in Downtown Raleigh will spur economic development and provide open space and recreational opportunities for residents and visitors but more importantly, this acquisition secures and preserves property that has historic significance not only for the city but the entire state of North Carolina," said McFarlane.

Raleigh has until the end of the year to secure financing.

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