SENATE BILL No. 1118

 

 

September 5, 2018, Introduced by Senator HANSEN and referred to the Committee on Appropriations.

 

 

 

     A bill to authorize the department of technology, management,

 

and budget to convey or transfer state-owned property in Muskegon

 

County; to prescribe conditions for the conveyance; to provide for

 

the powers and duties of certain state departments in regard to the

 

property; and to provide for the disposition of revenue derived

 

from the conveyance.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 1. (1) The department of technology, management, and

 

budget, on behalf of this state, may convey by quitclaim deed or

 

transfer by affidavit of jurisdictional transfer all or portions of

 

state-owned property now under the jurisdiction of the department

 

of corrections. The property is described as follows:

 

     (a) Parcel 1: Lots 44 to 48, both inclusive, Port City


Industrial Center No. 4, part of the Southeast 1/4 of Section 34

 

and the Southwest 1/4 of Section 35, Town 10 North, Range 16 West,

 

City of Muskegon, Muskegon County, Michigan, as recorded in Liber

 

20 of Plats, Pages 53 to 55 inclusive, Muskegon County Records.

 

     (b) Parcel 2: Lots 59 to 69, both inclusive, Port City

 

Industrial Center No. 6, part of the Southwest 1/4 and part of the

 

Southeast 1/4 of Section 35, Town 10 North, Range 16 West, City of

 

Muskegon, Muskegon County, Michigan, as recorded in Liber 22 of

 

Plats, Pages 5 to 8 inclusive, Muskegon County Records.

 

     (c) Parcel 3: The Northwest 1/4 of the Northeast 1/4 of

 

Section 2, Town 9 North, Range 16 West, Fruitport Township,

 

Muskegon County, Michigan, except railroad right of way; also

 

described as: (a) beginning at the Northeast corner of the

 

Northwest 1/4 of Northeast 1/4 of said Section 2; thence South 2

 

degrees 39 minutes West, 1133.35 feet along the East 1/8th line of

 

said Section 2; thence North 70 degrees 46 minutes West, 1378.40

 

feet along the Northerly line of land that was conveyed to

 

Consolidated Rail Corporation; thence North 2 degrees 01 minute

 

East, 674.89 feet along the North and South quarter line of said

 

Section 2; thence North 89 degrees 53 minutes East along the North

 

line of said Northwest 1/4 of Northeast 1/4 to the place of

 

beginning; and (b) Beginning at a point on the North and South

 

quarter line of said Section 2 which is South 2 degrees 01 minute

 

West 779.59 feet from the North quarter corner of said Section 2;

 

thence South 70 degrees 46 minutes East, 1377.18 feet along the

 

Southerly line of land that was conveyed to Consolidated Rail

 

Corporation; thence South 2 degrees 39 minutes West, 137.15 feet


along the East 1/8th line of said Section 2; thence North 89

 

degrees 49 minutes 40 seconds West, 1314.65 feet along the

 

centerline of Broadway Avenue and the North 1/8th line of said

 

Section 2; thence North 2 degrees 01 minutes East, 587.04 feet

 

along the North and South quarter line of said Section 2 to the

 

Point of Beginning.

 

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

 

not convey property under this section unless the conveyance and

 

the terms of the conveyance have been approved by the state

 

administrative board.

 

     (3) The description of the property in subsection (1) is

 

approximate and, for purposes of the conveyance, is subject to

 

adjustment as the department of technology, management, and budget

 

or the attorney general considers necessary.

 

     (4) Real property conveyed or transferred under this section

 

includes all surplus, salvage, and personal property or equipment

 

remaining on the property on the date of the conveyance or

 

transfer.

 

     (5) The department of corrections is responsible for all

 

expenses of maintaining the property described in subsection (1)

 

until the time of conveyance or transfer.

 

     (6) The department of attorney general shall approve as to

 

legal form all deeds or affidavits of jurisdictional transfer

 

authorized by this section.

 

     (7) The department of technology, management, and budget may

 

transfer the property described in subsection (1), with or without

 

consideration, through jurisdictional transfer to another state


agency. If property is transferred under this subsection, the

 

transfer must be made by an affidavit of jurisdictional transfer in

 

recordable form rather than a quitclaim deed.

 

     (8) The department of technology, management, and budget may

 

transfer all or portions of the property described in subsection

 

(1) to the Michigan land bank fast track authority established

 

under section 15 of the land bank fast track act, 2003 PA 258, MCL

 

124.765. For properties or portions of properties conveyed to the

 

Michigan land bank fast track authority, the Michigan land bank

 

fast track authority shall do both of the following:

 

     (a) Convey the property in accordance with the land bank fast

 

track act, 2003 PA 258, MCL 124.751 to 124.774.

 

     (b) Deposit the net revenue received by this state or the

 

Michigan land bank fast track authority from the sale of property

 

under this subsection into the land bank fast track fund.

 

     (9) The net revenue received from the sale of property under

 

this section must be deposited in the state treasury and credited

 

to the general fund, except as provided otherwise under subsection

 

(8).

 

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

 

to the property conveyed under this section. However, the

 

conveyance authorized under this section must 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 this state 1/2 of the gross revenue generated

 

from the development of the oil, gas, or minerals. This payment

 

must be deposited in the general fund.


     (11) 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.

 

     (12) If property conveyed under this section was used by this

 

state as a historical monument, memorial, burial ground, park, or

 

protected wildlife habitat area, it must be maintained and

 

protected for that purpose in perpetuity in accordance with

 

applicable law.

 

     (13) A conveyance under this section must contain restrictions

 

as provided in subsections (10) to (12). If the property is used

 

for any purpose that is inconsistent with any restrictions under

 

subsection (10), (11), or (12), this state may reenter and

 

repossess the property, terminating the grantee's or successor's

 

estate in the property.

 

     (14) The department of technology, management, and budget may

 

require a grantee of a property conveyed under this section to

 

record the instrument of conveyance or jurisdictional transfer with

 

the applicable register of deeds and provide the department with a

 

recorded copy of the recorded instrument as a condition of closing.

 

     (15) As used in this section, "net revenue" means the proceeds

 

from the sale of the property less reimbursement for any costs to

 

the department of technology, management, and budget or to the

 

Michigan land bank fast track authority 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 the preparation of

 

sale; environmental remediation; legal fees; and any litigation

 

costs related to the conveyance of the property.