HB-6030, As Passed House, December 4, 2012

SUBSTITUTE FOR

HOUSE BILL NO. 6030

A bill to authorize the state administrative board to convey

certain parcels of state-owned property in Ingham and Wayne

counties; to prescribe conditions for the conveyances; to provide

for certain powers and duties of certain state departments in

regard to the properties; and to provide for disposition of revenue

derived from the conveyances.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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

state, may convey by quitclaim deed all or portions of certain

state-owned property now under the jurisdiction of the department

of technology, management, and budget, commonly known as 221 N.

Sycamore, and located in the City of Lansing, Ingham county,

Michigan, and further described as follows:

Lot 2, Block 90, Original Plat, City of Lansing, Ingham County,

Michigan, according to the plat thereof as set forth in Liber 2 of

Plats, Pages 36 through 38, Ingham County Records. Including all

fluid, mineral and gas rights, subject to and including a mutual

driveway agreement over the South 6 feet of the East 100 feet of

the subject property and the North 6 feet of the East 100 feet of

Lot 3, Block 90, Original Plat, City of Lansing, as set forth in

Liber 293, Page 196, Ingham County Records.

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

approximate and, for purposes of the conveyance, is subject to

adjustments as the state administrative board or the attorney

general considers necessary by survey or other legal description.

(3) 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.

(4) The fair market value of the property described in

subsection (1) shall be determined by an appraisal prepared for the

department of technology, management, and budget by an independent

appraiser.

(5) The director of the department of technology, management,

and budget shall first offer the property described in subsection

(1) for sale for $1.00 to the local units of government in which

the property is located. To exercise its right to purchase the

property under this subsection, a local unit of government shall

enter into a purchase agreement within 60 days after the date of

the offer and shall complete the purchase within 120 days after the

date of the offer. Conveyance of any portion of the property for

$1.00 is subject to subsections (7) and (8).

(6) If the property described in subsection (1) is not

conveyed pursuant to subsection (5), the department of technology,

management, and budget shall take the necessary steps to prepare to

convey the property using any of the following at any time:

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

the state, as determined by the department of technology,

management, and budget.

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

state, as determined by the department of technology, management,

and budget.

best value to the state, as determined by the department of

technology, management, and budget.

(d) Offering the property for sale for fair market value to a

local unit or units of government.

(e) Offering the property for sale for less than fair market

value to a local unit or units of government subject to subsections

(7) and (8).

(f) Conveying the property to the land bank fast track

authority established under the land bank fast track act, 2003 PA

258, MCL 124.751 to 124.774.

(7) Any conveyance for less than fair market value authorized

by subsection (5) or (6)(e) shall provide for all of the following:

(a) The property shall be used exclusively for public purposes

and if any fee, term, or condition for the use of the property is

imposed on members of the public, or if any of those fees, terms,

or conditions are waived for use of the property, all members of

the public shall be subject to the same fees, terms, conditions,

and waivers.

(b) In the event of an activity inconsistent with subdivision

(a), the state may reenter and repossess the property, terminating

the grantee's or successor's estate in the property.

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

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

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

of, the property.

(d) If the state reenters and repossesses the property, the

state is not liable to reimburse any party for any improvements

made on the property.

(e) The grantee shall reimburse the state for requested costs

necessary to prepare the property for conveyance.

(8) For property conveyed pursuant to subsection (5) or

(6)(e), if the local unit of government intends to convey the

property within 10 years after the conveyance from the state, the

local unit shall provide notice to the department of technology,

management, and budget of its intent to offer the property for

sale. The department of technology, management, and budget shall

retain a right to first purchase the property at the original sale

price within 90 days after the notice. If the state repurchases the

property, the state is not liable to any party for improvements to,

or liens placed on, the property. If the state waives its first

refusal right, the local unit of government shall pay to the state

40% of the difference between the sale price of the conveyance from

the state and the sale price of the local unit's subsequent sale or

sales to a third party.

(9) The department of attorney general shall approve as to

legal form the quitclaim deed authorized by this section.

(10) The state shall not reserve oil, gas, or mineral rights

to the property conveyed under this section. However, the

conveyance authorized under this section 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 the 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.

(11) The 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

the 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.

(12) The net revenue received by the state from the sale of

property under this section shall be deposited in the state

treasury and credited to the general fund. As used in this

subsection, "net revenue" means the proceeds from the sale of the

property less reimbursement for any costs to the state associated

with the 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 prepare for the sale; environmental remediation costs;

legal fees; and costs of any litigation related to the conveyance

of the property.

Sec. 2. (1) The state administrative board, on behalf of the

state, may convey by quitclaim deed all or portions of certain

state-owned property now under the jurisdiction of the department

of human services, commonly known as the Medbury parking lot, and

located in the city of Hamtramck, Wayne county, Michigan, and

further described as follows:

WARD 15

CAP 0086 BELT LINE SUB OF THE N'LY PART OF PC 573 KNOWN AS L.

CHAPOTON FARM & THE NW'LY PART OF PC 678, HAMTRAMCK, WAYNE CO.

L 00012P82

Lot 32 & Lot 31 & W 9 ft vac alley Item 10947

Lot 58 & E 9 ft vac alley Item 10286

Lot 57 & E 9 ft vac alley Item 10287

Lot 56 & E 9 ft vac alley Item 10288

Lot 55 & E 9 ft vac alley Item 10289

Lot 54 & E 9 ft vac alley Item 10290

Subject to any easements and/or rights of record as may pertain to

these parcels.

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

approximate and, for purposes of the conveyance, is subject to

adjustments as the state administrative board or the attorney

general considers necessary by survey or other legal description.

(3) 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.

(4) The fair market value of the property described in

subsection (1) shall be determined by an appraisal prepared for the

department of technology, management, and budget by an independent

appraiser.

(5) The department of technology, management, and budget shall

take the necessary steps to prepare to convey the property using

any of the following at any time:

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

the state, as determined by the department of technology,

management, and budget.

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

state, as determined by the department of technology, management,

and budget.

best value to the state, as determined by the department of

technology, management, and budget.

(d) Offering the property for sale for fair market value to a

local unit or units of government.

(e) Offering the property for sale for less than fair market

value to a local unit or units of government subject to subsections

(6) and (7).

(f) Conveying the property to the land bank fast track

authority established under the land bank fast track act, 2003 PA

258, MCL 124.751 to 124.774.

(6) Any conveyance for less than fair market value authorized

by subsection (5)(e) shall provide for all of the following:

(a) The property shall be used exclusively for public purposes

and if any fee, term, or condition for the use of the property is

imposed on members of the public, or if any of those fees, terms,

or conditions are waived for use of the property, all members of

the public shall be subject to the same fees, terms, conditions,

and waivers.

(b) In the event of an activity inconsistent with subdivision

(a), the state may reenter and repossess the property, terminating

the grantee's or successor's estate in the property.

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

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

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

of, the property.

(d) If the state reenters and repossesses the property, the

state is not liable to reimburse any party for any improvements

made on the property.

(e) The grantee shall reimburse the state for requested costs

necessary to prepare the property for conveyance.

(7) For property conveyed pursuant to subsection (5)(e), if

the local unit of government intends to convey the property within

10 years after the conveyance from the state, the local unit shall

provide notice to the department of technology, management, and

budget of its intent to offer the property for sale. The department

of technology, management, and budget shall retain a right to first

purchase the property at the original sale price within 90 days

after the notice. If the state repurchases the property, the state

is not liable to any party for improvements to, or liens placed on,

the property. If the state waives its first refusal right, the

local unit of government shall pay to the state 40% of the

difference between the sale price of the conveyance from the state

and the sale price of the local unit's subsequent sale or sales to

a third party.

(8) The department of attorney general shall approve as to

legal form the quitclaim deed authorized by this section.

(9) The state shall not reserve oil, gas, or mineral rights to

the property conveyed under this section. However, the conveyance

authorized under this section 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 the state 1/2 of the gross revenue generated from the

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