January 31, 2007, Introduced by Senator SWITALSKI and referred to the Committee on Appropriations.
A bill to authorize the state administrative board to convey
certain parcels of state owned property in Ingham county and Wayne
county; to prescribe conditions for the conveyances; to provide for
certain powers and duties of certain state departments and agencies
in relation to the conveyances; to provide for disposition of
revenue derived from the conveyances; and to provide for the
release of certain reversionary rights held by the state.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. (1) Subject to subsections (5) and (6), the state
administrative board, on behalf of the state, shall convey to the
city of Lansing, for not less than fair market value as determined
under subsection (4), all or portions of certain real property now
under the jurisdiction of the department of management and budget
and located in Ingham county, Michigan, and more particularly
described as:
A parcel of land in Block #4 of Claypool's Subdivision and Block
#90 of the Original Plat of the City of Lansing, City of Lansing,
Ingham County, Michigan, containing part of Lots #1 and 2, and all
of Lots #3 and 4 of said Claypool's Subdivision and all of Lots #1,
2, 3, 5 and 6 of said Block #90 of the Original Plat of the City of
Lansing, more particularly described as beginning at the northwest
corner of said Block #4, Claypool's Subdivision; thence easterly
along the north line of said block 344.33 feet; thence southerly
parallel to the west line of said block 198.00 feet; thence
easterly parallel to the north line of said block 92.26 feet;
thence northerly parallel to the west line of said block 198.00
feet to the north line of said block; thence easterly along said
north line 140.92 feet to the northwest corner of said Block #90 of
the Original Plat; thence continuing easterly on the north line of
said block 161.21 feet to the east line of said block; thence
southerly along said east line 197.35 feet to the southeast corner
of Lot 3 of said block; thence westerly 159.26 feet on the south
line of said Lot 3 to the west line of said block; thence southerly
65.42 feet on said west line to the northwest corner of Lot 5 of
said block; thence easterly 158.61 feet on the north line of said
Lot 5 to the east line of said block; thence southerly on said east
line 132.44 feet to the south line of said block; thence westerly
on said south line 157.33 feet to the southeast corner of said Lot
2, Block #4 of Claypool's Subdivision; thence continuing westerly
178.75 feet on the south line of said block; thence northerly
parallel to the west line of said block 148.50 feet; thence
westerly parallel to the south line of said block 55.00 feet;
thence southerly parallel to the west line of said block 148.50
feet to the south line of said block; thence westerly on said south
line 348.74 feet to the west line of said block; thence northerly
on said west line 396.00 feet to the point of beginning, containing
5.87 acres.
(2) The description of the property in subsection (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.
(3) The property described in subsection (1) includes all
surplus, salvage, and scrap property or equipment.
(4) The fair market value of the property described in
subsection (1) shall be determined by an appraisal prepared for the
department of management and budget by an independent appraiser.
(5) The department of management and budget shall take the
necessary steps to prepare to convey the property described in
subsection (1). The director of the department of management and
budget shall first offer the property described in subsection (1)
for sale to the city of Lansing or the Lansing economic development
corporation at not less than fair market value as determined under
subsection (4). The city of Lansing, or an entity formed by the
city of Lansing, has the first right to purchase the property for a
period of 180 days after the effective date of this act.
(6) If the property described in subsection (1) is not sold to
the city of Lansing pursuant to subsection (5), the department of
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 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.
(7) The department of attorney general shall approve as to
legal form the quitclaim deed authorized by this section.
(8) The state shall not reserve oil, gas, or mineral rights to
the parcels of property conveyed under this section. However, the
conveyances 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.
(9) 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 section. 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 section.
(10) The net revenue received from the sale of the 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 parcels of
property less reimbursement for any costs to the state associated
with the sale of the parcels 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
parcels of property.
Sec. 2. (1) The state administrative board, on behalf of the
state, may convey by quitclaim deed for not less than fair market
value or, if subsection (5)(e) applies, for less than fair market
value, all or portions of certain state owned property now under
the jurisdiction of the department of corrections, commonly known
as western Wayne correctional facility, and located in Plymouth
township, Wayne county, Michigan, and more particularly described
as follows:
A parcel of land in the N 1/2 of section 20, T1S – R8E Plymouth
Township, Wayne County, Michigan, more particularly described as
beginning at the NW corner of said section 20; thence N89˚50'10"E
2650.86 feet on the north line of said section to the N 1/4 corner
of said section; thence continuing on said north line S89˚45'02"E
1319.14 feet; thence S01˚03'21"W 2532.18 feet to the northerly
right of way of the Chesapeake and Ohio Railroad; thence along said
northerly right of way for the following four (4) courses:
1) 116.58 feet on a curve to the right with a radius of
2596.27 feet, a central angle of 02˚34'22" and a long chord bearing
and distance of N56˚44'27"W 116.57 feet
2) N55˚27'04"W 1052.13 feet
3) 672.28 feet on a curve to the left with a radius of 3889.51
feet, a central angle of 09˚54'12" and a long chord bearing and
distance of N60˚24'17"W 671.45 feet
4) N65˚21'16"W 2614.21 feet to the west line of said section
20; thence N00˚05'01"E 447.57 feet on said west line to the point
of beginning, containing 127.27 acres, more or less.
EXCEPT a parcel of land described as commencing at the N 1/4 corner
of said section 20; thence S89˚45'02"E 1119.14 feet on the north
line of said section to the point of beginning of this description;
thence continuing on said north line S89˚45'02"E 50.00 feet; thence
S01˚03'21"W 225.00 feet; thence S89˚45'02"E 150.00 feet to the east
line of a parcel recorded at Liber 22436, Page 520; thence
S01˚03'21"W 200.00 feet on said east line; thence N89˚45'02"W
200.00 feet; thence N01˚03'21"E 425.00 feet to the point of
beginning, containing 1.18 acres, more or less.
Subject to a 60-foot wide easement adjacent and parallel to the
west and north section lines for roadway purposes.
(2) The description of the property in this section 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.
The property described in this section includes all surplus,
salvage, and scrap property or equipment.
(3) The fair market value of the property described in this
section shall be determined by an appraisal prepared for the
department of management and budget by an independent appraiser.
(4) The department of attorney general shall approve as to
legal form the quitclaim deed authorized by this section.
(5) The department of management and budget shall take the
necessary steps to prepare to convey the property described in this
section 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) Offer the property for sale for fair market value to a
local unit or units of government.
(e) Offer the property for sale for less than fair market
value to a local unit or units of government subject to subsection
(6).
(6) Any conveyance to a local unit of government 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 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.
(c) If the grantee or successor disputes the state's exercise
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.
(7) 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 natural resources trust fund.
(8) Subject to the state's right to reenter and repossess the
property under subsection (6), if a local unit of government
intends to convey the property conveyed under this section within 3
years after the conveyance from the state, the local unit of
government shall provide 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
value of any improvements made to the property as determined by an
independent fee appraiser, within 90 days after the notice. 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 of government's subsequent sale or sales to a third party.
(9) All state agencies and departments shall cooperate fully
with the state administrative board to facilitate the performance
of its duties, powers, and responsibilities under this section. 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 section.
(10) The net revenue received 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, employee wages, salaries, and
benefits associated with administrative personnel; 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. 3. The state administrative board, on behalf of the
state, may release for less than fair market value the reservation
of aboriginal antiquities, including mounds, earthworks, forts,
burial and village sites, mines, and other relics, on, within, or
under the property located in the city of Detroit and recited on
the quitclaim deed between the state of Michigan and 1200 Sixth
street, LLC, recorded in liber 42965, page 77, Wayne county
register of deeds.