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Projects that have had funding lined up ahead of time have turned out differently.

After the Athens Mental Health Center closed in 1993, the state of Ohio swapped the 700-acre property with land owned by Ohio University. That gave the aging buildings an owner with deep pockets.

Today, the land is home to a day-care center, a biotech research center, a leadership institute and the Kennedy Museum of Art.

Still, university planner Pam Callahan said that only about 40 percent of the hospital buildings have been renovated so far. The rest are waiting their turn in the college's construction budget.

"The property competes with many other needs on our campus," she said.

How will Dix be paid for?

The state legislature wants at least $40 million for Dix Hill. Under one plan, private donors would give $10 million. But no one agrees on exactly where to find the other $30 million.

The Raleigh city council has debated creating a special tax district on the property. There wouldn't be any new taxes, but as property values rose, the extra money coming into City Hall would pay off the debt.

But critics say that would put pressure on the park's owners to develop the property.

Park advocates think the tax district should be created on land outside the campus. They say that new condominiums and shops would spring up nearby if the property become a major park, and the taxes on that new development would cover the debt.

But Mayor Charles Meeker and some council members aren't sure the city should have any tax districts there. They think the city could pay off the debt from its regular budget.

That could also lead to development on Dix, if the city faced falling tax revenues from a recession in the future.

Lesson: Get local residents involved or risk anger and lawsuits.

Case study

Even in the best circumstances, the hospital properties can take years to redevelop. Experts say that it's critical to have an owner who is committed to historic buildings and open space in order to see the project through the inevitable problems that will arise.

After it closed the Danvers State Hospital, the state of Massachusetts kept control of the 500-acre property, but it allowed a citizens advisory commission appointed by the town to have a say.

The commission chose Archstone, a developer that promised to restore the Gothic brick central building that dated to 1878. But when Archstone backed out for financial reasons, the state chose AvalonBay Communities, a runner-up. That company decided to keep the facade of the main building, but it demolished 14 buildings.

Some town residents lost a lawsuit, and several members of the citizens advisory group said they were not happy with the outcome.

"We didn't really have control of the site," said Robert Pariseau, a retired engineer who led the group.

A similar process is going much more smoothly in Fergus Falls, Minn.

There, the state and the city worked as equal partners to redevelop the Fergus Falls State Hospital before it completely shut down. A city-appointed commission studied proposals, and the City Council had final say over which developers were picked.

If the city doesn't receive good offers on a building, then the state will tear it down.

So far, developers have been willing, and the state has turned over five buildings to be remodeled into high-end condominiums and offices. That has spurred other developers to consider redeveloping the central building, said Harold Stanislawski, executive director of the town's economic improvement commission.

"It's a massive project," he said. "But if we're going to be successful, we're going to have to work together."

Who would manage Dix?

Raleigh is considering creating a nonprofit development corporation to manage Dix Hill. A panel of experts from the Urban Land Institute proposed a seven-member board. Members would be nominated by nearby N.C. State University, Wake County, the legislature and a park conservancy, but chosen by the mayor of Raleigh.

If history is a guide, public involvement will continue to be controversial. The legislature passed a bill specifically to prevent Gov. Mike Easley from selling off the Dix campus. But lawmakers' efforts to include the public didn't resolve the concerns of park advocates.

Plans by Charlotte-based LandDesign and the Washington-based Urban Land Institute, both hired by the state, were roundly criticized by the public. A legislative task force's efforts were inconclusive. And park advocates say they still fear a backroom deal will decide Dix Hill.

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