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Raleigh city council signs off on $52M purchase of state's Dorothea Dix hospital property

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RALEIGH, North Carolina — Raleigh officials have approved plans to buy 300 acres near downtown that formerly housed a state mental hospital for about $52 million.

Raleigh's city council on Friday approved the contract for the Dorothea Dix hospital property negotiated with Gov. Pat McCrory's administration.

The next step for the deal announced in January would be approval by a body of statewide elected officials chaired by McCrory. The Council of State meets May 5.

Former Gov. Bev Perdue agreed weeks before leaving office in 2013 to lease the land for a Raleigh destination park. The Republican-controlled Legislature criticized the plan as a bad deal for the state. The incoming McCrory renegotiated it.

Some land where state employees still work would be leased back to the state for as long as 25 years.

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