HB-6029, As Passed House, December 4, 2012

SUBSTITUTE FOR

HOUSE BILL NO. 6029

A bill to authorize the state administrative board to convey

certain state-owned property in Grand Traverse, Otsego, and

Schoolcraft counties and to accept and convey certain other

property in Grand Traverse county; to prescribe conditions for the

acceptance and the conveyances; to provide for certain powers and

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

provide for disposition of revenue derived from the conveyances;

and to authorize the state administrative board to transfer certain

state-owned property in Jackson county from the state

transportation department to the department of corrections.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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

state, may convey by quitclaim deed all or portions of certain

state-owned property now under the jurisdiction of the department

of technology, management, and budget, commonly known as the former

Chesapeake and Ohio Railroad right of way, located in the city of

Traverse City, Grand Traverse county, Michigan, and further

described as the North 25 feet of Lots 8 through 21, Block 12,

Hannah's Fifth Addition to Traverse City. The above described

parcel is subject to any easements and/or rights of record as may

pertain to this parcel.

(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 of technology, management, and budget by an independent

appraiser.

(5) The director of the department of technology, management,

and budget shall first offer the property described in subsection

(1) to Traverse City area public schools, which shall have the

first right to purchase the property, for consideration of $1.00,

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

Conveyance of any portion of the property for $1.00 is subject to

subsections (7) and (8).

(6) If any portion of the property described in subsection (1)

is not conveyed pursuant to subsection (5), the department of

technology, management, and budget shall take the necessary steps

to prepare to convey the remaining portions of 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 technology,

management, and budget.

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

state, as determined by the department of technology, management,

and budget.

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

technology, management, and budget.

(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).

(f) Conveying the property to the land bank fast track

authority established under the land bank fast track act, 2003 PA

258, MCL 124.751 to 124.774.

(7) Any conveyance 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 the 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 is not liable to reimburse any party for any improvements

made on the property.

(e) The grantee shall reimburse the state for requested costs

necessary to prepare the property for conveyance.

(8) For property conveyed pursuant to subsection (5) or

(6)(e), if the grantee intends to convey the property within 10

years after the conveyance from the state, the grantee shall

provide notice to the department of technology, management, and

budget of its intent to offer the property for sale. The department

of technology, management, and budget shall retain a right to first

purchase the property at the original sale price within 90 days

after the notice. If the state repurchases the property, the state

is not liable for any improvements to, or liens placed on, the

property. If the state waives its first refusal right, the grantee

under subsection (5) or (6)(e) 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 grantee'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) 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 general fund.

(11) 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.

(12) The net revenue received by the state 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,

administrative costs, including employee wages, salaries, and

benefits; costs of reports and studies and other materials

necessary to prepare for the sale; environmental remediation costs;

legal fees; and costs of any litigation related to the conveyance

of the property.

Sec. 2. (1) The state administrative board, on behalf of the

state, subject to and contingent upon the conveyance of the

property to the township of Garfield, Grand Traverse county, as

provided in subsection (3), may accept from the township of

Garfield, for consideration of $1.00, certain real property that

was conveyed to the township of Garfield in the quitclaim deed

recorded in liber 984, page 304, Grand Traverse county records, and

is located in the township of Garfield, Grand Traverse county,

Michigan, and further described as follows:

PART OF THE NORTHWEST 1/4 OF SECTION 9, T27N, R11W, DESCRIBED AS

COMMENCING AT THE WEST 1/4 CORNER OF SAID SECTION 9; THENCE

N00°52'22"E, 962.58 FEET ALONG THE WEST LINE OF SAID SECTION 9;

THENCE N89°57'22"E, 1614.17 FEET; THENCE S36°46'34"E, 864.75 FEET

TO THE POINT OF BEGINNING; THENCE S36°46'34"E, 228.74 FEET; THENCE

S01°05'58"W, 16.51 FEET; THENCE N88°54'23"W, 210.47 FEET; THENCE

N01°05'58"E, 197.04 FEET; THENCE S88°56'10"E, 70.04 FEET TO POINT

OF BEGINNING. SAID PARCEL CONTAINS 0.66 ACRES OF LAND SUBJECT TO

EASEMENTS OR RESTRICTIONS, IF ANY.

(2) The description of the parcel in subsection (1) is

approximate and for purposes of the conveyances is subject to

adjustment as the state administrative board or attorney general

considers necessary by survey or other legal description.

(3) The state administrative board, on behalf of the state,

after receiving the conveyance authorized in subsection (1), shall

convey to Garfield township, for consideration of $1.00, the real

property described in subsection (1).

(4) The conveyance authorized by subsection (3) shall provide

for all of the following:

(a) Unless the property is conveyed for fair market value

after the conveyance described in subsection (3), the property

shall be used exclusively for public purposes.

(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.

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 is not liable to reimburse any party for any improvements

made on the property.

(e) If the property is sold by Garfield township, or another

local unit of government that is a successor in interest, for fair

market value, upon the first such sale of the property, the local

unit of government selling the property shall pay to the state 40%

of the sales price of the property.

(5) 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 state treasury and credited to the general fund.

(6) The state shall reserve all aboriginal antiquities

including mounds, earthworks, forts, burial and village sites,

mines, and other relics, on, within, or under the property conveyed

under this section, 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 aboriginal antiquities.

(7) The conveyance under subsection (3) shall be by quitclaim

deed or other instrument approved by the attorney general.

(8) Revenue to the state from the sale of property under this

section shall be deposited in the state treasury and credited to

the general fund.

Sec. 3. (1) The state administrative board, on behalf of the

state, may convey by quitclaim deed all or portions of certain

state-owned property now under the jurisdiction of the department

of community health, commonly known as Pinehaven buildings 31 and

32, and located at 102 McLouth road on part of the SW ¼ of section

27, T31N, R3W, Livingston township, Otsego county, Michigan, and

more particularly described as follows:

Commencing at the southwest corner of said section 27, thence

S89°22'16"E, 400.00' along the south line of said section 27, to the

point of beginning; thence N00°37'44"E. 350.00'; thence S89°22'16"E

450.16'; thence S00°37'44"W 350.00' to the south line of said

section 27; thence N89°22'16"W 450.16' along said south line to the

point of beginning, containing 3.62 acres and subject to easements

of record.

(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 of technology, management, and budget by an independent

appraiser.

(5) The director of the department of technology, management,

and budget shall first offer the property described in subsection

(1) to the north country community mental health authority, a

governmental entity, which shall have the first right to purchase

the property, for consideration of $1.00, for a period of 180 days

after the effective date of this act. Conveyance of any portion of

the property for $1.00 is subject to subsections (7) and (8).

(6) If any portion of the property described in subsection (1)

is not conveyed pursuant to subsection (5), the department of

technology, management, and budget shall take the necessary steps

to prepare to convey the remaining portions of 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 technology,

management, and budget.

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

state, as determined by the department of technology, management,

and budget.

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

technology, management, and budget.

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

value to a local unit or units of government, or to a governmental

corporation, subject to subsections (7) and (8).

(7) Any conveyance for less than fair market value authorized

by subsection (5) or (6)(d) shall provide for all of the following:

(a) The property shall be used exclusively for the public

purposes of providing inpatient residential community health

services and related community mental health services to persons

requiring them due to mental illness, aging, substance abuse,

developmental disability, or other mental disability for a period

of at least 50 years after the date of the conveyance.

(b) 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 the property, all

members of the public shall be subject to the same fees, terms,

conditions, and waivers.

(a) or (b), the state may reenter and repossess the property,

terminating the grantee's or successor's estate in the property.

(d) 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.

(e) If the state reenters and repossesses the property, the

state is not liable to reimburse any party for any improvements

made on the property.

(f) The grantee shall reimburse the state for requested costs

necessary to prepare the property for conveyance.

(8) For property conveyed pursuant to subsection (5) or

(6)(d), if the grantee intends to convey the property within 50

years after the conveyance from the state, the grantee shall

provide notice to the department of technology, management, and

budget of its intent to offer the property for sale. The department

of technology, management, and budget shall retain a right to first

purchase the property at the original sale price within 90 days

after the notice. If the state repurchases the property, the state

is not liable to any party for improvements to, or liens place on,

the property. If the state waives its first refusal right, the

grantee under subsection (5) or (6)(d) 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 grantee'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) 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 successor in interest develops any oil, gas, or

minerals found on, within, or under the conveyed property, the

purchaser or 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) 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.

(12) The net revenue received by the state 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,

administrative costs, including employee wages, salaries, and

benefits; costs of reports and studies and other materials

necessary to prepare for the sale; environmental remediation costs;

legal fees; and costs of any litigation related to the conveyance

of the property.

Sec. 4. (1) The state administrative board may transfer from

the state transportation department to the department of

corrections, without consideration, a parcel of land in the

townships of Blackman and Leoni, Jackson county, Michigan, more

specifically described as follows:

All that part of the Michigan department of transportation

railroad, formerly Grand Trunk Western, right of way, 100 feet

wide, more or less, further described as: beginning at a point on

the centerline of said railroad which is at the southwesterly end

of the bridge over the Portage river in the southeast corner of the

southwest quarter of section 5, town 2 south, range 1 east, Leoni

township, Jackson county, Michigan, thence southwesterly, following

along the centerline of said railroad, 3.98 miles, more or less,

passing through Sections 5, 8, 7 and 18 of said township, Sections

13, 14, 23, town 2 south, range 1 west, Blackman township, Jackson

county, Michigan, to the point of ending on the westerly right of

way line of the highway M-106. Contains 46.50 acres, more or less.

(2) The property description in subsection (1) is approximate

and subject to possible adjustment by a professional survey

conducted by the department of technology, management, and budget.

(3) The transfer authorized by this section is permanent and

effective when approved by the state administrative board. The

department of corrections shall then assume full responsibility for

the property.

(4) All documents regarding the transfer of the property

described in subsection (1) shall be approved as to legal form by

the department of attorney general.

(5) The department of technology, management, and budget shall

coordinate and implement the transfer, but any survey costs or

transaction closing costs incurred by the department of technology,

management, and budget in doing so shall be reimbursed by the

department of corrections.

Sec. 5. (1) The state administrative board, on behalf of the

state, may convey by quitclaim deed all or portions of certain

state-owned property now under the jurisdiction of the department

of corrections, commonly known as Camp Manistique, and located in

the city of Manistique, Schoolcraft county, Michigan, and further

described as follows:

A parcel of land being part of the NE 1/4 of the NE 1/4 of Section

12, T41N-R16W, and part of the NW 1/4 of the NW 1/4 of Section 7,

T41N-R15W, City of Manistique, Schoolcraft County, Michigan

described as:

Commencing at the Northwest corner of Section 7; thence

S00°22'09"W, 15.58 feet to the South Right-of-Way line of the

Wisconsin Central Railroad; thence S88° 22'52"E, 547.40 feet along

the South Railroad Right-of-Way line; thence S00° 22'09"W, 894.43

feet; thence N89°36'54"W, 547.27 feet to a found concrete monument

on the West line of Section 7; thence N89°05'11"W, 449.78 feet to a

found concrete monument; thence S02°29'48"W, 60.01 feet to a found

concrete monument; thence N89°03'52"W, 422.66 feet to the East

Right-of-Way line of Maple Avenue; thence N02°24'01"E, 104.30 feet

along the East Right-of-Way line of Maple Avenue to the North

Right-of-Way line of Pine Street; thence N78°15'15"W, 31.60 feet

along the North Right-of-Way line of Pine Street; thence

N03°17'44"E, 867.11 feet to the South Right-of-Way line of the

Wisconsin Central Railroad; thence S88°22'52"E, 857.85 feet along

the South Railroad Right-of-Way line to the Point of Beginning

containing 30.297 acres and subject to restrictions, reservations,

rights-of-way and easements of record.

(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 of technology, management, and budget by an independent

appraiser.

(5) The director of the department of technology, management,

and budget 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

enter into a purchase agreement within 60 days after the date of

the offer and shall complete the purchase within 120 days after the

date of the offer. Conveyance of any portion of the property for

$1.00 is subject to subsections (7) and (8).

(6) If the property described in subsection (1) is not

conveyed pursuant to subsection (5), the department of technology,

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 technology,

management, and budget.

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

state, as determined by the department of technology, management,

and budget.

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

technology, management, and budget.

(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).

(f) Conveying the property to the land bank fast track

authority established under the land bank fast track act, 2003 PA

258, MCL 124.751 to 124.774.

(7) Any 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 the 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 is not liable to reimburse any party for any improvements

made on the property.

(e) The grantee shall reimburse the state for requested costs

necessary to prepare the property for conveyance.

(8) For property conveyed pursuant to subsection (5) or

(6)(e), if the local unit of government intends to convey the

property within 10 years after the conveyance from the state, the

local unit shall provide notice to the department of technology,

management, and budget of its intent to offer the property for

sale. The department of technology, management, and budget shall

retain a right to first purchase the property at the original sale

price within 90 days after the notice. If the state repurchases the

property, the state is not liable to any party for improvements to,

or liens placed on, the property. 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'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) 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 general fund.

(11) 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.

(12) The net revenue received by the state 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,

administrative costs, including employee wages, salaries, and

benefits; costs of reports and studies and other materials

necessary to prepare for the sale; environmental remediation costs;

legal fees; and costs of any litigation related to the conveyance

of the property.