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.