HB-4080, As Passed House, June 20, 2013HB-4080, As Passed Senate, June 20, 2013

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 4080

A bill to authorize the state administrative board to convey

certain parcels of state-owned property in Chippewa and Schoolcraft

counties; to prescribe conditions for the conveyances; and to

provide for certain powers and duties of certain state departments

in regard to the properties.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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

state, may convey by quitclaim deed to the township of Kinross or

the county of Chippewa all or portions of certain state-owned

property under the jurisdiction of the department of corrections,

located in the township of Kinross, Chippewa county, Michigan, and

further described as follows:

Parcel A

Part of Lot 4, of "Chippewa County Industrial Air Park Plat"; Part

of Sections 31 & 32, T45N, R1W, Kinross Township, Chippewa County,

Michigan, more particularly described as, commencing at the

Northeast corner of Section 31; thence along the north line of said

Section, N 89° 59' 39" W 1075.01 feet; thence S 00° 16' 05" E 33.00

feet to the South Right-of-Way of Tone Road and the Point of

Beginning; thence along said Right-of-Way S 89° 59' 39" E 470.94

feet; thence S 05° 39' 59" E 240.61 feet; thence S 89° 43' 17" W

493.57 feet, thence N 00° 16' 05" W 241.88 feet to the South Right-

of-Way of Tone Road and the Point of Beginning containing 2.68

acres more or less and excepting all easements and restrictions of

record, if any.

Parcel B

Part of Lot 4, of "Chippewa County Industrial Air Park Plat"; Part

of Sections 31 & 32, T45N, R1W, Kinross Township, Chippewa County,

Michigan, more particularly described as, commencing at the

Northeast corner of Section 31; thence along the north line of said

Section, N 89° 59' 39" W 1075.01 feet; thence S 00° 16' 05" E 33.00

feet to the South Right-of-Way of Tone Road and the Point of

Beginning; thence continuing S 00° 16' 05" E 241.88 feet; thence S

89° 43' 17" W 57.32 feet; thence N 05° 35' 43" W 243.33 feet to the

South Right-of-Way of Tone Road; thence along said Right-of-Way S

89° 59' 39" E 79.92 feet to the Point of Beginning containing 0.38

acres more or less and excepting all easements and restrictions of

record, if any.

(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 includes all surplus, salvage, and scrap

property or equipment remaining on the property as of the date of

the conveyance.

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

and budget shall first offer the property for sale for $1.00 to the

township of Kinross. If all of the property is not sold to the

township of Kinross as provided in subsection (5), the director of

the department shall offer the remaining property for sale for

$1.00 to the county of Chippewa.

(5) To purchase the property under subsection (4), a local

unit of government shall enter into a purchase agreement within 60

days after the date of the offer to that local unit of government

and complete the purchase within 120 days after the date of the

offer. Conveyance of any portion of the property under subsection

(4) is subject to the conditions prescribed in subsections (7) and

(8).

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

thereof is not conveyed pursuant to subsection (4), the department

of technology, management, and budget shall take the necessary

steps to prepare to convey the remaining property using any of the

following at any time:

(a) Competitive bidding designed to realize the best value to

this state, as determined by the department.

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

this state, as determined by the department.

best value to this state, as determined by the department.

(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).

(7) A conveyance authorized by subsection (4) 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) If a provision of the conveyance described in subdivision

(a) is violated, this 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 this state, the attorney general, on behalf of this

state, may bring an action to quiet title to, and regain possession

of, the property.

(d) If this state reenters and repossesses the property, this

state is not liable to reimburse any party for any improvements

made on the property.

(8) If the property is conveyed pursuant to subsection (4) or

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

property within 10 years after the conveyance under subsection (4)

or (6)(e), 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 shall retain a right to first

purchase the property at the original sale price within 90 days

after the notice is received. If this state repurchases the

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

to, or liens placed on, the property. If this state waives its

right to first purchase the property, the local unit of government

shall pay to this state 40% of the difference between the sale

price of the conveyance from this state under subsection (4) or

(6)(e) and the sale price of the local unit's subsequent sale or

sales to a third party.

(9) 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.

(10) If requested by this state, the grantee shall reimburse

this state for costs necessary to prepare the property for

conveyance.

(11) The quitclaim deed authorized by this section shall be

approved as to legal form by the department of attorney general.

(12) This state shall not reserve oil, gas, or mineral rights

to property conveyed under this section. However, a 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 grantee shall pay

this 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.

(13) This 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

this 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. 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 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 includes all surplus, salvage, and scrap

property or equipment remaining on the property as of the date of

the conveyance.

(4) 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

this state, as determined by the department.

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

this state, as determined by the department.

best value to this state, as determined by the department.

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

local unit or units of government.

(5) 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.

(6) If requested by this state, the grantee shall reimburse

this state for costs necessary to prepare the property for

conveyance.

(7) The quitclaim deed authorized by this section shall be

approved as to legal form by the department of attorney general.

(8) This state shall not reserve oil, gas, or mineral rights

to property conveyed under this section. However, a 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 grantee shall pay

this 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) This 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

this 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.

(10) 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 this 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.