Bill Text: MI SB0425 | 2011-2012 | 96th Legislature | Engrossed

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Bill Title: Property; conveyances; transfer of Scott corrections facility in Northville; provide for. Creates new act.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Engrossed - Dead) 2011-09-27 - Referred To Committee On Appropriations [SB0425 Detail]

Download: Michigan-2011-SB0425-Engrossed.html

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SB-0425, As Passed Senate, September 27, 2011

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SENATE BILL No. 425

 

 

June 9, 2011, Introduced by Senator COLBECK and referred to the Committee on Appropriations.

 

 

 

     A bill to authorize the state administrative board to convey

 

certain parcels of state-owned property in Wayne county; to

 

prescribe conditions for the conveyance; to provide for certain

 

powers and duties of certain state departments in regard to the

 

property; and to provide for disposition of revenue derived from

 

the conveyance.

 

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 all or portions of certain

 

state-owned property under the jurisdiction of the department of

 

corrections, commonly known as the Scott correctional facility, and

 

located in the township of Northville, Wayne county, Michigan, and

 

further described as follows:

 

Commencing at the southeast corner of Section 17, T1S,R8E, Wayne

 

County, Michigan; thence N00°16'01"E 60.00 feet, on the east line

 

of said Section 17; thence N89°45'00"W 60.00 feet to the point of

 

beginning, said point being the right-of-way intersection of the

 

west line of Beck Road and the north line of 5 Mile Road; thence

 

N00°16'01"E 1561.18 feet on said westerly right-of-way; thence

 

N89°58'59"W 1445.69 feet; thence S03°42'55"W 1558.15 feet, to the

 

northerly right-of-way of 5 Mile Road; thence S89°45'00"E 1539.40

 

feet on said northerly right-of-way to the point of beginning,

 

containing 53.16 acres, more or less. All bearings are relative and

 

referenced to a previous survey of this section and a survey by

 

McNeely & Lincoln, Job #7360. The above described parcel is subject

 

to any easements or rights of record that 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 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 shall first offer the

 

property described in subsection (1) for sale for $1.00 to the

 

local units of government in which the property is located. To

 

purchase the property under this subsection, a local unit of

 

government shall enter into a purchase agreement within 60 days

 

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

 

days after the date of the offer. Conveyance of the property or any

 

portion thereof for $1.00 is subject to subsections (6) and (7).

 

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

 

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

 

shall take the necessary steps to prepare to convey the remaining

 

property by any of the following means 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.

 

     (c) Real estate brokerage services designed to realize the

 

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

 

     (d) A negotiated sale process conducted by the department in a

 

manner to provide this state with consideration for the property

 

representing at least a fair exchange of value for value. In

 

determining whether consideration for the property represents a

 

fair exchange of value for value, the department may consider the

 

highest return and best value to this state based on either or both

 

of the following:

 

     (i) The fair market value of the property as determined by an

 

appraisal prepared for the department by an independent appraiser.

 

     (ii) The total value to this state of the sale of the property

 

considering the best interests of this state, including, but not

 

limited to, any positive economic impact to this state likely to be

 

generated by the proposed use of the property, especially the

 

creation or retention of jobs, increased capital investment,

 

environmental remediation, or avoidance of property ownership costs

 

for this state, as determined by the department.

 

     (e) Offering the property for sale to a local unit or units of

 

government for fair market value as determined by an appraisal

 

prepared for the department by an independent appraiser.

 

     (f) Offering the property for sale for less than fair market

 

value to a local unit or units of government subject to subsections

 

(6) and (7).

 

     (g) 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.

 

     (6) A conveyance for less than fair market value authorized by

 

subsection (4) or (5)(f) 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.

 

     (c) If the grantee or 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 party for any improvements

 

made on the property.

 

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

 

this state for costs necessary to prepare the property for

 

conveyance.

 

     (7) If property is conveyed pursuant to subsection (4) or

 

(5)(f) and if the local unit of government intends to convey the

 

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

 

or (5)(f), the local unit shall provide notice to the department of

 

its intent to convey the property. 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 (5)(f) and the sale price of the local unit's subsequent

 

conveyance to a third party.

 

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

 

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

 

     (9) 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 any 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.

 

     (10) 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.

 

     (11) The net revenue received by this state from the sale of

 

property under this section shall be deposited in the state

 

treasury and credited to the general fund.

 

     (12) As used in this section:

 

     (a) "Department" means the department of technology,

 

management, and budget.

 

     (b) "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 the preparation of sale; environmental remediation;

 

legal fees; and any litigation related to the conveyance of the

 

property.