HB-4803, As Passed Senate, March 29, 2012

 

 

 

 

 

 

 

 

 

 

 

SENATE SUBSTITUTE FOR

 

HOUSE BILL NO. 4803

 

 

 

 

 

 

 

 

 

 

 

 

A bill to authorize the state administrative board to transfer

 

or convey a certain parcel of state-owned property of approximately

 

6 acres in Wayne county; to prescribe conditions for the transfer

 

or conveyance; to create a state fairgrounds sale advisory

 

committee; to provide for certain powers and duties of certain

 

state departments and agencies in regard to the property; to

 

provide for disposition of revenue derived from the conveyance of

 

the property; and to provide for the disposal of fixtures and

 

equipment on the property.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

Sec. 1. (1) The state administrative board, on behalf of this

 

state, may convey by quitclaim deed or transfer, as provided in

 

this act, all or portions of certain state-owned property under the

 

jurisdiction of the department, which is part of the property


 

commonly known as the Michigan state fairgrounds, is located in the

 

city of Detroit, Wayne county, Michigan, and is further described

 

as follows:

 

A parcel of land in the NE 1/4 of Section 2, T1S, R11E, City of

 

Detroit, Wayne County, Michigan; the boundary of said parcel being

 

described as commencing at the North 1/4 Corner of Section 2, T1S,

 

R11E, Michigan Meridian; thence N 8800'34" E, along the North

 

Section line, 30.11 feet; thence S 3113'25" E, along the

 

Northeasterly right of way of the Grand Trunk Western Railroad,

 

1538.78 feet to the POINT OF BEGINNING; thence N 8805'49" E,

 

537.23 feet; thence S 0115'10" E, 937.64 feet; thence N 3113'25"

 

W, along said right of way line, 1075.34 feet to the point of

 

beginning; said parcel contains 5.78 acres.

 

(2) The description of the property in subsection (1) is

 

approximate and, for purposes of the conveyance or transfer, is

 

subject to adjustments as the state administrative board or the

 

attorney general considers necessary by survey or other legal

 

description.

 

(3) The department shall attempt to dispose of surplus,

 

salvage, and scrap fixtures and equipment on the property described

 

in subsection (1) by donating or selling the fixtures and equipment

 

to county or other local fairs. The department may dispose of as

 

otherwise provided by law any surplus, salvage, or scrap fixture or

 

equipment not donated or sold to a county or other local fair. The

 

property described in subsection (1) includes all surplus, salvage,

 

and scrap property or equipment remaining on the property as of the

 

date of the conveyance or transfer.


 

Sec. 2. (1) The department shall take the necessary steps to

 

prepare for the conveyance or transfer of the property at any time.

 

(2) The department may prepare for the conveyance of the

 

property by any of the following means:

 

(a) Competitive bidding designed to realize the best value to

 

this state, as determined by the department.

 

(b) A public auction designed to realize the best value to

 

this state, as determined by the department.

 

(c) Real estate brokerage services designed to realize the

 

best value to this state, as determined by the department.

 

(d) Offering the property for sale to a local unit or units of

 

government for fair market value as determined by an appraisal

 

prepared for the department by an independent appraiser.

 

(3) The department may prepare for the transfer of the

 

property to the state land bank fast track authority.

 

(4) A conveyance under section 1 or described in section 4

 

shall provide for all of the following:

 

(a) The property conveyed shall not be used for a horse racing

 

track, auto racing track, casino, railroad freight yard, jail, or

 

prison.

 

(b) If the property conveyed is used in a manner inconsistent

 

with subdivision (a), this state may reenter and repossess that

 

property, terminating the grantee's or successor's estate in that

 

property.

 

(c) If the grantee or successor disputes this state's exercise

 

of its right to reenter and fails to promptly deliver possession of

 

that property to the state, the attorney general, on behalf of this


 

state, may bring an action to quiet title to, and regain possession

 

of, that property.

 

(d) If this state reenters and repossesses that property, this

 

state is not liable to reimburse any party for any improvements

 

made on that property.

 

Sec. 3. (1) If all or a portion of the property is transferred

 

to the state land bank fast track authority pursuant to section

 

2(3), the state fairgrounds sale advisory committee is created

 

within the department.

 

(2) The committee does not have the power to authorize or

 

prohibit any action by the state land bank fast track authority and

 

is advisory only.

 

(3) The committee shall consist of 1 representative, appointed

 

by the governor, from each of the following neighborhood

 

organizations from the vicinity of the state fairgrounds:

 

(a) Sherwood Forest neighborhood association.

 

(b) University district neighborhood association.

 

(c) Detroit golf club homeowners association.

 

(d) Palmer Woods neighborhood association.

 

(e) Greenacres neighborhood association.

 

(4) The members first appointed to the committee shall be

 

appointed within 60 days after the property is transferred to the

 

state land bank fast track authority.

 

(5) Members of the committee shall serve for terms of 3 years

 

or until a successor is appointed, whichever is later, except that

 

of the members first appointed under subsection (3), 3 shall serve

 

for 3 years and 2 shall serve for 2 years.


 

(6) If a vacancy occurs on the committee, the unexpired term

 

shall be filled in the same manner as the original appointment.

 

(7) The first meeting of the committee shall be called by the

 

executive director of the state land bank fast track authority. At

 

the first meeting, the committee shall elect from among its members

 

a chairperson and other officers as it considers necessary or

 

appropriate. After the first meeting, the committee shall meet at

 

least quarterly, or more frequently at the call of the chairperson

 

or if requested by 2 or more members.

 

(8) A majority of the members of the committee constitute a

 

quorum for the transaction of business at a meeting of the

 

committee. A majority of the members present and serving are

 

required for official action of the committee.

 

(9) The business that the committee may perform shall be

 

conducted at a public meeting of the committee held in compliance

 

with the open meetings act, 1976 PA 267, MCL 15.261 to 15.275.

 

(10) A writing prepared, owned, used, in the possession of, or

 

retained by the committee in the performance of an official

 

function is subject to the freedom of information act, 1976 PA 442,

 

MCL 15.231 to 15.246.

 

(11) Members of the committee shall serve without

 

compensation.

 

(12) Subject to subsection (2), the committee shall provide

 

input and make recommendations to the state land bank fast track

 

authority on the sale and use of the property transferred to the

 

state land bank fast track authority pursuant to section 2(3).

 

(13) The state land bank fast track authority shall provide


 

necessary staffing for the committee and cooperate with the

 

committee in the fulfillment of the committee's duties.

 

(14) The committee is dissolved 60 days after all property

 

transferred to the state land bank fast track authority pursuant to

 

section 2(3) of this act and section 2(3) of Senate Bill No. 515 of

 

the 96th Legislature is conveyed by the state land bank fast track

 

authority.

 

(15) This act and Senate Bill No. 515 of the 96th Legislature

 

together create only 1 state fairgrounds sale advisory committee.

 

Sec. 4. If all or a portion of the property is transferred to

 

the state land bank fast track authority pursuant to section 2(3),

 

and the state land bank fast track authority subsequently conveys

 

the property to a third party, the state land bank fast track

 

authority shall establish performance requirements and penalty

 

provisions within the purchase agreement or other agreements

 

related to the subsequent conveyance. Not more than 30 days after

 

conveying property under this subsection, the state land bank fast

 

track authority shall submit a report to the legislature describing

 

the terms of the conveyance and providing a full accounting of all

 

revenue from and costs associated with the conveyance. The state

 

land bank fast track authority shall not convey the property to a

 

county authority or local authority.

 

Sec. 5. (1) A quitclaim deed or transfer document authorized

 

by this act shall be approved as to legal form by the department of

 

attorney general.

 

(2) This state shall not reserve oil, gas, or mineral rights

 

to property conveyed under this act. However, a conveyance


 

authorized under this act shall provide that, if the purchaser or

 

any grantee develops any oil, gas, or minerals found on, within, or

 

under the conveyed property, the purchaser or any grantee shall pay

 

this state 1/2 of the gross revenue generated from the development

 

of the oil, gas, or minerals. This payment shall be deposited in

 

the general fund.

 

(3) This state reserves all aboriginal antiquities including

 

mounds, earthworks, forts, burial and village sites, mines, or

 

other relics lying on, within, or under the property with power to

 

this state and all others acting under its authority to enter the

 

property for any purpose related to exploring, excavating, and

 

taking away the aboriginal antiquities.

 

(4) The net revenue received by this state from the conveyance

 

of property under this act, including conveyance by the state land

 

bank fast track authority, shall be deposited in the state treasury

 

and credited to the general fund.

 

Sec. 6. As used in this act:

 

(a) "Committee" means the state fairgrounds sale advisory

 

committee established pursuant to section 3(1).

 

(b) "County authority" means that term as defined in section 3

 

of the land bank fast track act, 2003 PA 258, MCL 124.753.

 

(c) "Department" means the department of technology,

 

management, and budget.

 

(d) "Local authority" means that term as defined in section 3

 

of the land bank fast track act, 2003 PA 258, MCL 124.753.

 

(e) "Net revenue" means the proceeds from the conveyance of

 

the property less reimbursement for any costs to the department,


 

land bank fast track authority, or other state department or agency

 

associated with the maintenance, preparation for sale, or sale of

 

property, including, but not limited to, administrative costs,

 

including employee wages, salaries, and benefits; costs of reports

 

and studies and other materials necessary to the preparation of

 

sale; environmental remediation; legal fees; any litigation related

 

to the conveyance of the property; and costs to the land bank fast

 

track authority to provide necessary staffing for the committee and

 

cooperate with the committee in the fulfillment of the committee's

 

duties.

 

(f) "State land bank fast track authority" means the land bank

 

fast track authority established under section 15 of the land bank

 

fast track act, 2003 PA 258, MCL 124.765.

 

Enacting section 1. This act does not take effect unless

 

Senate Bill No. 515 of the 96th Legislature is enacted into law.