By Associated Press - Wednesday, April 9, 2014

RALEIGH, N.C. (AP) - North Carolina Gov. Pat McCrory’s administration has rejected Raleigh’s opening offer to purchase the old Dorothea Dix mental hospital so it can turn the site into a regional park.

The state wants to keep some of the land and sell the rest at a higher price.

McCrory attorney Robert Stephens sent the counteroffer dated Wednesday to Raleigh’s city attorney. The state wants to sell 244 acres of the 308-acre Dix property for $52 million but keep remaining land for Department of Health and Human Services operations.

The city last month offered $38 million for the entire tract and would lease 40 acres to the state for DHHS for 15 years for $1 annually.

The state also rejected the city’s request to handle environmental cleanup estimated at up to $23 million.

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