SB-1403, As Passed Senate, November 13, 2008

SENATE BILL No. 1403

June 24, 2008, Introduced by Senator SWITALSKI and referred to the Committee on Appropriations.

A bill to authorize the department of management and budget to

convey certain state owned property in Wayne county; to prescribe

conditions for the conveyance; to provide for certain powers and

duties of the department of management and budget in implementing

the conveyance; to provide for disposition of revenue derived from

the conveyance; and to repeal acts and parts of acts.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 1. The department of management and budget, on behalf of

the state, may convey to Wayne state university, for consideration

of $1.00, certain real property now under the jurisdiction of the

department of corrections and located in Wayne county, Michigan,

and more particularly described as:

That part of Lots 17 and 18, of Walker’s Subdivision, of Park Lots

49, 50, 51 and 52, in the City of Detroit, Wayne County, Michigan,

as recorded in Liber 1, Page 282, of Plats, Wayne County Records,

described as: Beginning at the intersection of the Northerly line

of Lot 18 and the Westerly line of Woodward Avenue (120 feet wide);

thence Southerly along the Westerly line of Woodward Avenue, 120.00

feet to a point; thence Westerly parallel to the Southerly line of

said Lot 18, 170.18 feet to a point; thence Northerly parallel to

the Westerly line of Woodward Avenue, 20.00 feet, to a point of the

Southerly line of said Lot 18; thence Westerly along the Southerly

line of said Lot 18, 116.35 feet to a point; thence Northerly

parallel to Westerly line of Woodward Avenue, 35 feet to a point;

thence Easterly parallel to Southerly line of said Lot 18, 3.35

feet to a point; thence Northerly parallel to Westerly line of

Woodward Avenue, 65 feet to a point on the Northerly line of said

Lot 18; thence Easterly along the Northerly line of said Lot 18,

283.18 feet to the Point of Beginning.

Also, all that part of Lot 19, of Walker’s Subdivision of Park Lots

49, 50, 51 and 52, City of Detroit, Wayne County, Michigan, as

recorded in Liber 1, Page 282, of Plats, Wayne County Records,

described as: Beginning at a point on the Southerly line of said

Lot 19, which is South 60 degrees 05 minutes 20 seconds West, a

distance of 10.00 feet from the intersection of said Southerly line

of Lot 19 with the Westerly right of way line of Woodward Avenue

(120 feet wide); thence continuing South 60 degrees 05 minutes 20

seconds West, a distance of 275.18 feet; thence North 29 degrees 54

minutes 40 seconds West, a distance of 10 feet; thence North 62

degrees 10 minutes 12 seconds East, a distance of 275.36 feet to

the Point of Beginning.

Sec. 2. (1) The description of the parcel in section 1 is

approximate and for purposes of the conveyance is subject to

adjustment as the state administrative board or the attorney

general considers necessary by survey or other legal description.

(2) The property described in section 1 includes all surplus,

salvage, and scrap property or equipment.

Sec. 3. The conveyance authorized by section 1 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, resident and

nonresident members of the public shall be subject to the same

fees, terms, conditions, and waivers.

(b) In the event of activity inconsistent with subdivision

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

the grantee's estate in the property.

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 shall not be liable to reimburse any party for any

improvements made on the property.

Sec. 4. (1) If the property described in section 1 is not sold

to Wayne state university within 6 months after the effective date

of this act, the director of 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.

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

management and budget.

(d) A value for value conveyance negotiated by the department

of management and budget designed to realize the best value to the

state. In determining whether value for value consideration for the

property represents the best value, the department may consider the

fair market value or the total value based on any positive economic

impact to the state likely to be generated by the proposed use of

the property, especially economic impact resulting in the creation

of jobs or increased capital investment in the state.

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

local unit or units of government.

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

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

(2).

(2) Any conveyance to a local unit of government authorized by

subsection (1)(f) 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,

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 shall not be liable to reimburse any party for any

improvements made on the property.

(e) If the local unit of government intends to convey the

property within 3 years of the conveyance from the state, the local

unit shall provide notice to 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 within 90 days after the

notice. In the event that 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.

Sec. 5. (1) The conveyance authorized by this act shall be by

quitclaim deed designed or otherwise approved as to legal form by

the attorney general. 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 general fund.

(2) 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.

Sec. 6. The net revenue received from the sale of property

under this act shall be deposited in the state treasury and

credited to the general fund. 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, 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.