5465: FLOOR ANALYSIS (12-4-02) - LEONI TOWNSHIP CONVEYANCE

LEONI TOWNSHIP CONVEYANCE - H.B. 5465 (H-3): FLOOR ANALYSIS

House Bill 5465 (Substitute H-3 as discharged)

Sponsor: Representative Clark Bisbee

Senate Committee: Local, Urban and State Affairs

CONTENT

The bill would authorize the State Administrative Board, on behalf of the State, to convey for at least fair market value certain State-owned property in Leoni Charter Township, Jackson County. The property consists of 369.78 acres and 2.29 would be placed in a wetland bank.

Any conveyance under the bill would have to provide for the grantee to use the property for an industrial park with adjacent wetlands, in conjunction with the enterprise park proposed industrial development plan presented to the Department of Management and Budget, the Department of Corrections (DOC), Blackman Charter Township, and Leoni Charter Township, and in conjunction with the resolutions of support for that plan from the two townships.

A sale would have to be conducted so as to realize the highest price for the property and the highest return for the State. It would have to use a competitive sealed bid, an oral bid, a public auction, and/or the use of broker services. Broker services could be used only if there were at least three bidders. The DOC and the State would have to approve all final sales.

The bill is tie-barred to Senate Bill 616 and House Bill 5456, which also would authorize conveyances in Jackson County.

- Legislative Analyst: Suzanne Lowe

FISCAL IMPACT

The bill would have an indeterminate, yet likely positive, fiscal impact on State and local government. Given that the bill would require the conveyance of the property to be for fair market value, the State could realize additional revenue from the conveyance. At this time, there is no appraisal available indicating the property's value. Local taxing units also could benefit from the bill if property tax revenue were generated from development of the property.

Date Completed: 12-4-02 - Fiscal Analyst: Mike HansenFloor\hb5465 - Bill Analysis @ www.senate.michigan.gov/sfa

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.