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