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
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 88°00'34" E, along the North
Section line, 30.11 feet; thence S 31°13'25" E, along the
Northeasterly right of way of the Grand Trunk Western Railroad,
1538.78 feet to the POINT OF BEGINNING; thence N 88°05'49" E,
537.23 feet; thence S 01°15'10" E, 937.64 feet; thence N 31°13'25"
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
(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
(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
(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
(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
(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
(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
(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.