Senators passed the measure 29-to-21, with several Wake County Republican senators voting against it.
Democratic Senator Josh Stein told his colleagues that those who say they want to void the lease in order to provide funding for mental health costs aren't being honest.
"So to say that this is about mental health is a farce," says Stein. "It isn't about mental health. This is about a lease that you didn't like, because it was signed by a governor you didn't like, with a city you don't like. That's what this is about."
The bill also says the city can only lease portions of the Dix property that include a flood plain and a former landfill. The measure now goes to the House.