November 8, 2012, Introduced by Rep. Wayne Schmidt and referred to the Committee on Appropriations.
A bill to authorize the state administrative board to convey
certain state-owned property in Grand Traverse and Otsego counties;
to prescribe conditions for 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.
(c) Real estate brokerage services designed to realize the
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.
(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 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, 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.
(c) Real estate brokerage services designed to realize the
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.
(c) In the event of an activity inconsistent with subdivision
(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. 3. (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.