SB-1133, As Passed Senate, September 13, 2012
SENATE BILL NO. 1133
A bill to authorize the state administrative board to convey
certain parcels of state-owned property in Washtenaw county; to
prescribe conditions for the conveyance; to provide for certain
powers and duties of certain state departments in regard to the
property; and to provide for disposition of revenue derived from
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 all or portions of certain
state-owned property under the jurisdiction of the department of
state police, commonly known as the Ypsilanti state police post #26
facility, located in the township of Ypsilanti, Washtenaw county,
Michigan, and further described as follows:
That part of the Southwest 1/4 of Section 16, Town 3 South, Range 7
East, Ypsilanti Township, Washtenaw County, Michigan, described as
beginning at a point distant North 3° 10' 40" West, 960.96 feet and
South 72° 21' 20" West, 1396.20 feet from the South 1/4 corner of
said Section 16, and proceeding thence South 72° 21' 20" West,
600.00 feet; thence North 8° 24' 20" East along the centerline of
South Huron Street, 300.00 Feet; thence North 72° 21' 20" East
600.00 feet; thence South 8° 24' 20" West, 300.00 feet to the Point
of Beginning. The property described in this subsection is subject
to easements, rights-of-way, and restrictions of record, if any.
(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 by an independent appraiser.
(5) The director of the department 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 complete the purchase within 180
days after the effective date of this act. Conveyance of any
portion of the property for $1.00 is subject to the conditions
prescribed in subsections (7) and (8).
(6) If the property described in subsection (1) or any portion
thereof is not conveyed pursuant to subsection (5), the department
shall take the necessary steps to prepare to convey the remaining
property using any of the following at any time:
(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 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).
(7) A 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 this property, all members of
the public shall be subject to the same fees, terms, conditions,
(b) If the provision of the conveyance required under
subdivision (a) is violated, this state may reenter and repossess
the property, terminating the grantee's or successor's estate in
(c) If the grantee or successor disputes this state's exercise
of its right of reentry and fails to promptly deliver possession of
the property to this state, the attorney general, on behalf of this
state, may bring an action to quiet title to, and regain possession
of, the property.
(d) If this state reenters and repossesses the property, this
state is not liable to reimburse any party for any improvements
made on the property.
(e) If requested, the grantee shall reimburse the department
for costs necessary to prepare the property for conveyance.
(8) If the property is conveyed pursuant to subsection (5) or
(6)(e) and if the local unit of government intends to convey the
property within 10 years after the conveyance under subsection (5)
or (6)(e), the local unit shall provide notice to the department of
its intent to offer the property for sale. The department shall
retain a right to first purchase the property at the original sale
price within 90 days after the notice is received. If this state
repurchases the property, this state is not liable to any party for
improvements to, or liens placed on, the property. If this state
waives its right to first purchase the property, the local unit of
government shall pay to this state 40% of the difference between
the sale price of the conveyance from this state under subsection
(5) or (6)(e) 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) This state shall not reserve oil, gas, or mineral rights
to property conveyed under this section. However, a 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) 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.
(12) Net revenue shall be deposited in the state treasury and
credited to the general fund.
(13) As used in this section:
(a) "Department" means the department of technology,
management, and budget.
(b) "Net revenue" means the proceeds from the sale of the
property less reimbursement for any costs to this state associated
with the sale of the 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; and any litigation related to the conveyance of the