HB-5354, As Passed House, April 27, 2006

SUBSTITUTE FOR

HOUSE BILL NO. 5354

     A bill to authorize the state administrative board to convey

certain state owned property in Ingham county; to prescribe

conditions for the conveyance; to provide for certain powers and

duties of certain state departments in regard to the conveyance; to

provide for disposition of revenue derived from the conveyance; and

to create certain funds and provide for the disposition of money

from those funds.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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

state, may convey by quitclaim deed for not less than fair market

value all or portions of certain state owned property now under the

jurisdiction of the department of education, commonly known as the

former Michigan school for the blind, and located in the city of

Lansing, county of Ingham, Michigan, containing approximately 35

acres, and more particularly described as follows:

PARCEL A:

A parcel of land being part of Blocks 26 and 27 of the "Original

Plat of Lansing", as recorded, being part of the Northwest 1/4 and

Southwest 1/4 of Section 9, and also being part of the Northeast

1/4 and Southeast 1/4 of Section 8, all of T4N-R2W, City of

Lansing, Ingham County, Michigan, being more particularly described

as follows: BEGINNING at a M.A.G. nail at the intersection of the

West line of North Pine Street (82.5' wide) and the South line of

West Willow Street (Variable width); thence along the West line of

said North Pine Street, S01°45'54"W, 870.00 feet to a 5/8-inch

diameter iron rod and cap (#47952) on the North line of Maple

Street (82.5' wide); thence along the North line of said Maple

Street, N88°07'17"W, 678.35 feet to a 5/8-inch diameter iron rod

and cap (#47952) on the West line of State Street (50' wide);

thence along the West line of said State Street, S00°23'21"W,

202.86 feet to a concrete monument with Bronze cap (State of

Michigan); thence along the North line of lands commonly known as

"Comstock Park", N88°11'19"W, 892.01 feet to a 5/8-inch diameter

iron rod and cap (#47952) on the East line of Princeton Avenue (60'

wide); thence along the East line of said Princeton Avenue,

N00°00'00"E, 892.32 feet to a 5/8-inch diameter iron rod and cap

(#47952) on the South line of said West Willow Street; thence along

the South line of said West Willow Street, S88°29'45"E, 452.07 feet

to a 5/8-inch diameter iron rod and cap (#47952), thence 216.82

feet along the North line of lands Quit-Claimed to the State of

Michigan, recorded in Liber 884-Page 282 (I.C.R.), on a non-

tangential curve to the left, said curve having a radius of 469.38

feet, a central angle of 26°28'01", and a long chord which bears

N78°49'20"E, 214.90 feet to a M.A.G. nail; thence continuing along

said North line of lands recorded in Liber 884, Page 282,

N65°35'20"E, 105.56 feet; thence along the South line of lands

Quit-Claimed to the City of Lansing, recorded in Liber 882-Page 590

(I.C.R.), N65°35'20"E, 108.12 feet to a M.A.G. nail; thence

continuing along said South line of lands recorded in Liber 882-

Page 590, 151.53 feet on a non-tangential curve to the right, said

curve having a radius of 341.85 feet, a central angle of 25°23'49",

and a long chord which bears N78°17'15"E, 150.29 to a 5/8-inch

diameter iron rod and cap (#47952) on the South line of said West

Willow Street; thence along the South line of said West Willow

Street, S88°10'25"E, 593.56 feet to the POINT OF BEGINNING,

containing 32.74 acres, more or less. Subject to any easements or

restrictions, recorded or unrecorded.

PARCEL B:

A parcel of land being Lots 1, 2, and 3 of "Moore's Subdivision on

Block 27", as recorded in Liber 1 of Plats, Page 27 (I.C.R.), and

being Lots 1-14 inclusive of "Assessor's Plat No. 38", as recorded

in Liber 11 of Plats, Page 38 (I.C.R.), all being part of the

Southwest 1/4 of Section 9, T4N, R2W, City of Lansing, Ingham

County, Michigan, being more particularly described as follows:

BEGINNING at a concrete monument at the Northeast corner of said

"Assessor's Plat No. 38", thence along the West line of North Pine

Street (82.5' wide), S02°05'04"W, 164.84 feet to a concrete

monument at the Southeast corner of said "Assessor's Plat No. 38";

thence along the South line of said "Assessor's Plat No. 38" and

along the South line of Lots 1, 2, and 3 of said "Moore's

Subdivision on Block 27", N88°07'41"W, 625.33 feet to a M.A.G. nail

in stump on the East line of State Street (50' wide); thence along

the East line of said State Street, N00°23'21"E, 164.97 feet to a

5/8-inch diameter iron and cap (#47952) on the South line of Maple

Street; thence along the South line of said Maple Street,

S88°07'17"E, 630.21 feet to the POINT OF BEGINNING, containing 2.38

acres, more or less. Subject to any easements or restrictions,

recorded or unrecorded.

     Sec. 2. The description of the property in section 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.

     Sec. 3. The property described in section 1 includes all

surplus, salvage, and scrap property or equipment not identified by

the department of education, as of the effective date of this act,

as being items to be retained by the state.

     Sec. 4. The fair market value of the property described in

section 1 shall be an amount equal to the average of 3 separate

appraisals prepared for the department of management and budget by

3 independent appraisers, including the appraisal prepared for the

department for that property before the effective date of this act.

     Sec. 5. The department of attorney general shall approve as to

legal form and content the quitclaim deed authorized by this act.

     Sec. 6. The director of the department of management and

budget shall first offer the property described in section 1 for

sale to the mid-Michigan leadership academy, a nonprofit public

school academy, at not less than fair market value. Mid-Michigan

leadership academy has the first right to purchase the property for

a period of 180 days after the effective date of this act.

     Sec. 7. If the property described in section 1 is not sold

pursuant to section 6, the department of management and budget

shall take the necessary steps to prepare to convey the property

described in section 1 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 management and

budget.

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

state, as determined by the department of management and budget.

     (c) Use of real estate brokerage services designed to realize

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

management and budget.

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

local unit or units of government.

     Sec. 8. If a local unit of government purchases the property

for fair market value and intends to convey the property within 10

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

provide written notice to the director of the department of

management and budget of its intent to offer the property for sale.

The department of management and budget shall retain a right to

first purchase the property at the original sale price, plus the

costs of any improvements as determined by an independent fee

appraisal, within 90 days after the notice. If the state waives its

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

state 50% 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.

     Sec. 9. The state shall not reserve oil, gas, or mineral

rights to the property conveyed under this act. However, the

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 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 natural resources trust fund.

     Sec. 10. 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

described in section 1, 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.

     Sec. 11. All state agencies and departments shall provide full

cooperation to the state administrative board to facilitate the

performance of its duties, powers, and responsibilities and the

conveyance of property under this act. The state administrative

board may require a state agency or department to prepare or record

any documents necessary to evidence the conveyance of property

under this act.

     Sec. 12. (1) The net revenue received from the sale of

property under this act shall be distributed as follows:

     (a) An amount equal to 5% of the net revenue or $50,000.00,

whichever is less, shall be deposited in the state treasury and

credited to the newsline for the blind fund created in section 13.

     (b) An amount equal to 5% of the net revenue or $50,000.00,

whichever is less, shall be deposited in the Michigan school for

the blind trust fund managed by the state board of education and

shall be used for the support of camp Tuhsmeheta in Greenville,

Michigan.

     (c) The balance of the net revenue, after making the

deductions under subdivisions (a) and (b), shall be deposited in

the state treasury and credited to the general fund.

     (2) As used in this section, "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 the preparation of sale; environmental

remediation; legal fees; and any litigation related to the

conveyance of the property.

     Sec. 13. (1) The newsline for the blind fund is created within

the state treasury.

     (2) The state treasurer shall receive the money designated

under section 12(1)(a) for deposit into the fund. The state

treasurer may receive money or other assets from any source for

deposit into the fund. The state treasurer shall direct the

investment of the fund. The state treasurer shall credit to the

fund interest and earnings from fund investments.

     (3) Money in the fund at the close of the fiscal year shall

remain in the fund and shall not lapse to the general fund.

     (4) The Michigan commission for the blind shall expend money

from the fund, upon appropriation, only for distribution to the

national federation of the blind of Michigan for the purpose of the

NFB-newsline program.