Bill Text: MI HB5814 | 2013-2014 | 97th Legislature | Introduced


Bill Title: Property; conveyances; sale of state property located in Gratiot county; allow. Creates new act.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2014-09-17 - Printed Bill Filed 09/17/2014 [HB5814 Detail]

Download: Michigan-2013-HB5814-Introduced.html

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HOUSE BILL No. 5814

 

September 16, 2014, Introduced by Rep. Leonard and referred to the Committee on Appropriations.

 

     A bill to authorize the state administrative board to convey

 

certain state-owned property located in Gratiot county; to

 

prescribe conditions for the conveyance; to provide for the

 

disposition of revenue derived from the conveyance; and to provide

 

for the powers and duties of certain state departments.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

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

 

state, may convey as provided in subsection (4) or (6), all or

 

portions of state-owned property located in the township of

 

Emerson, Gratiot county, Michigan, and more specifically described

 

as follows:

 

The south 10 acres of the west 25 acres of the northwest quarter of

 

the northwest quarter of section 30, Town 11 North, Range 2 West,

 


Michigan.

 

     (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 to be conveyed under subsection (1) includes

 

all surplus, salvage, and scrap property or equipment remaining on

 

the property on the date of the conveyance.

 

     (4) 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 city of Ithaca, subject to

 

subsections (5), (7), and (8). If all of the property is not sold

 

to the city of Ithaca, the director of the department shall offer

 

the remaining property for sale for $1.00 to the county of Gratiot,

 

subject to subsections (5), (7), and (8).

 

     (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 the local unit of government

 

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

 

offer.

 

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

 

of the property is not conveyed under subsection (5), the

 

department of technology, management, and budget shall take the

 

necessary steps to convey the remaining property, except as

 

provided in subdivision (e), for not less than the fair market

 

value, using any of the following methods:

 

     (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.

 

     (c) Real estate brokerage services designed to realize the

 

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) If the property described in subsection (1) is conveyed

 

under subsection (4) or (6)(e), the state administrative board

 

shall include all of the following provisions in the deed:

 

     (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 described in subdivision (a) is violated,

 

this state may reenter and repossess the property, terminating the

 

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

 

     (c) If the grantee or any successor disputes this state's

 

exercise 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 person for any improvements

 

made on the property.

 

     (8) If the property described in subsection (1) is conveyed

 

under subsection (4) or (6)(e) and if the local unit of government

 

intends to convey the property within 10 years after the

 

conveyance, 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 has the right to first purchase

 

the property on behalf of this state 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 person

 

for improvements to, or liens placed on, the property. If the

 

department on behalf of 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 amount paid by the

 

local unit of government for the conveyance under subsection (4) or

 

(6)(e) and the amount received by the local unit of government from

 

the sale of the property.

 

     (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) The state administrative board on behalf of this state

 

shall not reserve oil, gas, or mineral rights to property conveyed

 

under this section. However, the state administrative board shall

 

include in a conveyance authorized under this section a provision

 

that, if the grantee or any successor develops any oil, gas, or

 

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

 

grantee or any successor shall pay this state 1/2 of the gross

 

revenue generated from the development of the oil, gas, or

 

minerals. A payment under this subsection shall be deposited in the

 

general fund.

 

     (13) The state administrative board shall include in a deed

 

authorized under this section a provision that 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. The revenue received by this state from the conveyance

 

of property under this act shall be deposited in the state treasury

 

and credited to the general fund.

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