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.