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NC declines Raleigh offer for Dix property

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RALEIGH, N.C. -

 The State of North Carolina has declined the city of Raleigh's $45 million offer for Dorothea Dix property, the state said in a letter.

In a letter, state General Counsel Robert C. Stephens expressed "disappointment" in how the city has handled negotiations.

"The state of North Carolina respectfully declines this offer," Stephens wrote. "Moreover, we must express our disappointment with the terms contained in it."

Stephens wrote, "Given your most recent offer, it appears that despite our best efforts to negotiate in good faith with the City, we seem to be moving further apart."

Stephens said, "Your most recent offer is for all 307.95 acres without compensating the state for its relocation costs [for DHHS]," Stephens wrote.

The state offered two alternatives for the city to consider.

* The state sells 243.95 acres for $44.1 million and the state retains 64 acres.

* The state works with N.C. State University to see if it could move DHHS to the Spring Hill property. The city would agree to help the state work with N.C. State. In this scenario, the state proposed selling 281.95 acres for $53.7 million and retaining 26 acres. The state would need to get 60 acres of Spring Hill property to make that work.

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