Bill Text: MI SB1036 | 2017-2018 | 99th Legislature | Introduced
Bill Title: Property; conveyances; state-owned property under the jurisdiction of the department of corrections; provide for the sale of. Creates new act.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2018-09-05 - Assigned Pa 334'18 With Immediate Effect [SB1036 Detail]
Download: Michigan-2017-SB1036-Introduced.html
SENATE BILL No. 1036
May 29, 2018, Introduced by Senator SCHMIDT and referred to the Committee on Banking and Financial Institutions.
A bill to authorize the department of technology, management,
and budget to convey or transfer parcels of state-owned property in
Ionia, Grand Traverse, and Tuscola Counties; to prescribe
conditions for the conveyances; 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
conveyances.
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 properties now under the jurisdiction of the department
of corrections. The properties are described as follows:
(a) Property located in the City of Ionia, County of Ionia,
described as follows:
DEERFIELD CORRECTIONAL FACILITY PARCEL
Parcel of land situated in the City of Ionia, County of Ionia,
State of Michigan, and described as follows to-wit:
That part of the West 1/2 of the Southwest 1/4 of Section 25, T7N-
R7W, City of Ionia, County of Ionia, State of Michigan more
particularly described as: Beginning at the Southwest corner of
said Section 25, Town 7 North, Range 7 West; thence South 89°40'53"
East, along the South line of said Section 25, 1319.48 feet to the
West 1/8 line of the Southwest 1/4 of said Section 25 as
monumented; thence N00°34'03"E, along said 1/8 line as monumented,
711.67 feet to the extension of the centerline of an asphalt drive;
thence North 24°29'14" West, along said centerline and its
extension, 947.46 feet to the south line of a parcel recorded in
Liber 221 Page 522, Ionia County records; thence South 82°41'16"
West, along the south line of said parcel 244.38 feet; thence North
15°16'14" West, along the west line of said parcel, 310.00 feet to
the south right of way line of Riverside Drive as shown on survey
of Michigan Reformatory and the Ionia State Hospital dated August
13, 1929, thence South 74°43'46" West, along said south right of
way line, 450.26 feet; thence, continuing on said south right of
way line, on a 171.20 foot curve to the left, with a radius of
1113.28, and a chord bearing and distance of South 70°19'35" West
171.03 feet to the west line of said section 25; thence South
00°29'46" West, along said West line of section 25, 1658.38 feet to
the to the Point of Beginning. Parcel contains 46.30 acres of land,
more or less.
SUBJECT TO the public right-of-way of Harwood Road.
ALSO SUBJECT TO all agreements, covenants, easements, rights-of-
way, reservations and restrictions of record, if any.
(b) Property located in Fife Lake Township, Grand Traverse
County, described as follows:
CAMP PUGSLEY PARCEL 1
(Liber 1458 Page 388 of G.T.C.R., December 27, 2000)
Township of Fife Lake, Town 25 North, Range 09 West, Section 20.
The West one-half (W 1/2) of the Southwest one-quarter (SW 1/4),
the Northeast one-quarter (NE 1/4) of the Southwest one-quarter (SW
1/4) and the West one-half (W 1/2) of the Southwest one-quarter (SW
1/4) of the Southeast one-quarter (SE 1/4)
SUBJECT TO the right-of-way of Walton Road over the Southerly 33
feet thereof.
ALSO SUBJECT TO all agreements, covenants, easements, right-of-
ways, reservations and restrictions of record, if any.
CAMP PUGSLEY PARCEL 2:(Special Use Permit #12-86, January 6, 1987)
T25N, R9W, Sec. 20, SE1/4 of the SW1/4.
SUBJECT TO the right-of-way of Walton Road over the Westerly 33
feet thereof.
ALSO SUBJECT TO all agreements, covenants, easements, right-of-
ways, reservations and restrictions of record, if any.
(c) Property located in Indian Fields Township, Tuscola
County, described as:
CAMP TUSCOLA PARCEL A
Property located at 2420 Chambers Road in the Township of Indian
Fields, Tuscola County, Michigan, described as:
A parcel of land in the W. 1/2 of Section 20, T12N, R9E, Tuscola
County, Michigan and more specifically described as commencing at
the southwest corner of said Section 20; thence N02°29'58"E 1596.20
feet, on the west line of said Section 20 to the point of beginning
of this description; thence N02°29'58"E 188.93 feet, on said west
section line to a point on the east bank of the Cass River; thence
on a meander line on the east high bank of the Cass River on the
next nine calls; thence N42°03'45"E 472.98 feet; thence N31°09'17"E
592.87 feet; thence N32°30'22"E 138.73 feet; thence N29°45'45"E
365.86 feet; thence N04°16'44"E 686.27 feet; thence N35°14'10"E
441.67 feet; thence N14°41'05"E 256.84 feet; thence N05°28'20"E
254.56 feet; thence N26°21'15"E 33.00 feet, to the centerline of
Chambers Road; thence on the centerline of Chambers Road on a curve
to the right 239.49 feet, with a central angle of 09°07'26" and a
radius of 1503.96 feet; thence S54°31'19"E 28.21 feet, on the
centerline of Chambers road; thence 365.44 feet on a curve to the
right on the centerline of Chambers Road with a central angle of
57°50'27" and a radius of 361.99 feet; thence S03°19'08"W 1533.95
feet, on the centerline of Chambers Road; thence 476.60 feet on a
curve to the right on the centerline of Chambers Road with a
central angle of 71°32'44" and a radius of 381.68 feet; thence
S74°51'52"W 532.06 feet, on the centerline of Chambers Road; thence
218.50 feet on a curve to the left on the centerline of Chambers
Road with a central angle of 16°23'40" and a radius of 763.61 feet;
thence S58°28'12"W 549.53 feet, on the centerline of Chambers Road;
thence 257.37 feet on a curve to the left on the centerline of
Chambers Road with a central angle of 55°58'14" and a radius of
263.46 feet, to the point of beginning. The above described parcel
contains 40.09 acres, more or less. In addition, all bottom land
between the above described meander line and the centerline of the
Cass River shall be conveyed with this description. All bearings
are relative and referenced to the west line of Section 20, from a
previously recorded survey in Liber 578, Page 1253, Tuscola County
Records.
CAMP TUSCOLA PARCEL B
A parcel of land in the S.E. 1/4 of Section 19, T12N, R9E, Indian
Fields Township, Tuscola County, Michigan and more specifically
described as commencing at the S.E. corner of said Section 19;
thence N02°29'58"E 1732.13 feet, on the east line of said Section
19 to the point of beginning; thence N02°29'58" 53.00 feet, on the
east line of said section to a point on the easterly high bank of
the Cass River; thence S55°02'11"W 688.28 feet, along said high
bank to the northerly right of way of Washburn Road; thence
N74°51'02"E 538.67 feet, on said right of way to the westerly right
of way of Chambers Road; thence N02°29'58"E 66.40 feet, on said
westerly right of way; thence 141.21 feet on the arc of a curve to
the right, on the westerly right of way of Chambers Road with a
central angle of 27°17'28" and a radius of 296.47 feet, to the
point of beginning, containing 1.42 acres, more or less.
CAMP TUSCOLA PARCEL C
A parcel of land in the S.E. 1/4 of Section 19, Tl2N, R9E, Indian
Fields Township, Tuscola County, Michigan and more specifically
described as commencing at the S.E. corner of said Section 19;
thence N87°24'11"W 874.10 feet, on the south line of said section;
thence N00°00'00"E 1272.44 feet, to a point on the north right of
way of Washburn Road and the point of beginning; thence S82°39'08"W
835.36 feet, on the northerly right of way of Washburn Road to a
point on the southeasterly high bank of the Cass River; thence
N54°46'13"E 623.54 feet, on the high bank of the Cass River; thence
S51°36'42"E 407.19 feet, on the high bank of the Cass River; thence
to the point of beginning, containing 2.80 acres, more or less.
CAMP TUSCOLA PARCEL D
A parcel of land in the S.E. 1/4 of Section 19, T12N, R9E, Indian
Fields Township, Tuscola County, Michigan and more specifically
described as commencing at the S.E. corner of said Section 19;
thence N87°24'11"W 33.00 feet, on the south line of said Section 19
to the westerly right of way of Chambers Road and the point of
beginning; thence N02°29'58"E 1460.49 feet, on the westerly right
of way of Chambers Road to the southerly right of way of Washburn
Road; thence on the southerly right of way of Washburn Road on the
next eight calls; thence S74°51'02"W 517.67 feet; thence 403.88
feet on the arc of a curve to the right with a central angle of
07°48'06" and a radius of 2966.08 feet; thence S82°39'08"W 835.36
feet; thence 388.87 feet on the arc of a curve to the left with a
central angle of 46°27'14" and a radius of 479.63 feet; thence
S36°11'54"W 342.84 feet; thence 194.76 feet, on the arc of a curve
to the left with a central angle of 08°28'17" and a radius of
1317.22 feet; thence S27°43'37"W 397.00 feet; thence 44.10 feet on
the arc of a curve to the left with a central angle of 02°24'42"
and a radius of 1047.60 feet to the south line of said Section 19;
thence S87°24'11"E 2498.45 feet, on the south line of said section
to the point of beginning, containing 60.57 acres, more or less.
CAMP TUSCOLA PARCEL E
A parcel of land in the N.E. 1/4 of Section 30, T12N, R9E, Indian
Fields Township, Tuscola County, Michigan and more specifically
described as commencing at the N.E. corner of said Section 30;
thence N87°24'1l"W 1291.30 feet, on the north line of said Section
30 to the point of beginning; thence N87°24'11"W 1207.15 feet, on
the north line of said Section 30 to the easterly right of way of
Washburn Road; thence 72.12 feet on the arc of a curve to the left,
on the easterly right of way of Washburn Road, with a central angle
of 03°56'40" and a radius of 1047.60 feet; thence S21°22'15"W
276.19 feet, on the easterly right of way of Washburn Road; thence
S87°24'11"E 1322.34 feet; thence N02°27'54"E 328.93 feet, to the
point of beginning, containing 9.56 acres, more or less. In
addition, all bottom land between the above described high bank
line and the centerline of the Cass River shall be a part of this
description. All bearings are relative and referenced to the west
line of Section 20, from a previously recorded survey in Liber 578,
Page 1253, Tuscola County Records.
ALSO SUBJECT TO all agreements, covenants, easements, right-of-
ways, reservations and restrictions of record, if any.
(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 descriptions of the property in subsection (1) are
approximate and, for purposes of the conveyances, are subject to
adjustments as the department of technology, management, and budget
or the attorney general considers necessary by survey or other
legal description.
(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) If the property is to be sold for fair market value under
this section, the property must first be appraised by an
independent fee appraisal prepared for the department of
technology, management, and budget, or by an appraiser who is an
employee or contractor of this state.
(6) The state agency with jurisdiction over the real property
under this section is responsible for all expenses of maintaining
the property until the time of conveyance or transfer or, for a
conveyance under subsection (11), until the property is sold by the
Michigan land bank fast track authority.
(7) The department of attorney general shall approve as to
legal form all deeds or affidavits of jurisdictional transfer
authorized by this section.
(8) The department of technology, management, and budget may
transfer the property described in subsection (1)(a) and (c), with
or without consideration, through jurisdictional transfer to
another state agency. If property is transferred under this
subdivision, the transfer must be made by an affidavit of
jurisdictional transfer in recordable form rather than a quitclaim
deed.
(9) The department of technology, management, and budget may
take the necessary steps to convey the real property described in
subsection (1)(a) and (c) using any of the following means:
(a) Any publicly disclosed competitive method of sale,
selected to realize the fair market value to this state, as
determined by the department of technology, management, and budget.
(b) Offering the property for sale for fair market value to 1
or more local units of government.
(c) Exchanging some or all of the property for other real
property if the other real property is determined by the department
of technology, management, and budget to be of reasonably equal
value to this state.
(d) Offering the property for sale for less than fair market
value to the local units of government, subject to the following
conditions:
(i) If a local unit of government makes an offer to purchase
the property, which is accepted by the department of technology,
management, and budget, the local unit of government shall enter
into a purchase agreement within 60 days after making an offer for
the property and complete the conveyance within 180 days after the
date of the offer. The department of technology, management, and
budget may extend the period to complete the conveyance as needed.
(ii) The property must be used exclusively for public use for
30 years following the conveyance, subject to subsection (15). 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 must be subject to the same fees, terms, conditions, and
waivers. The public use restriction must be included in the deed.
(iii) Within 30 years after the conveyance, the unit may offer
the property for sale, in writing, to this state, which may
purchase the property at the original sale price. This state must
be provided 120 days to consider reacquiring the property. If this
state agrees to reacquire the property, this state is not liable to
any person for improvements to or liens placed on the property. If
this state declines to reacquire the property, the public use
restrictions described in subparagraph (ii) remain in effect.
(iv) If the local unit of government retains the property for
30 years after the conveyance date from this state, the public use
restrictions under subparagraphs (ii) and (iii) automatically
terminate, subject to subsection (15).
(v) If the local unit of government 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.
(vi) If this state reenters and repossesses the property, this
state is not liable to reimburse any party for any improvements
made on the property, nor to compensate any party for any part of
an unfulfilled contract or license issued for the provision of
goods or services on or for the property.
(vii) The department of technology, management, and budget may
require the local unit of government to reimburse this state at
closing for this state's demonstrably incurred costs as were
necessary to prepare the property for conveyance.
(10) The department of technology, management, and budget may
transfer all or portions of the property described in subsection
(1)(a) and (c) 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 to be used
for the demolition and remediation of state-owned properties.
(11) The department of technology, management, and budget
shall convey the property described in subsection (1)(b) 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
$1.00. The Michigan land bank fast track authority shall sell the
property described in subsection (1)(b) in a manner and on terms
that the authority, in its discretion, determines are calculated to
realize the greatest benefit to this state.
(12) 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
(10).
(13) This state shall not reserve oil, gas, or mineral rights
to the property conveyed under this section. However, the
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
must be deposited in the general fund.
(14) 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.
(15) 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.
(16) If the property is used for any purpose that is
inconsistent with any restrictions under subsection (9)(d), (13),
(14), or (15), this state may reenter and repossess the property,
terminating the grantee's or successor's estate in the property.
(17) 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.
(18) As used in this section:
(a) "Fair market value" means the highest estimated price that
real property will bring if offered for sale on the open market,
allowing a reasonable time to find a purchaser who would buy with
knowledge of the property's possible uses.
(b) "Local unit of government" means the township, village,
city, county, school district, intermediate school district, or
community college district in which the property is located.
(c) "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.
(d) "Public use" means, subject to subdivision (e), actual use
of the property by members of the public or for the local unit of
government to use the property for any of the following:
(i) Publicly owned and operated correctional facilities.
(ii) Law enforcement purposes.
(iii) Emergency management response purposes.
(iv) Public educational use.
(v) Public transportation.
(vi) Public parks and recreational areas.
(vii) Public health uses.
(viii) Wildlife conservation or restoration.
(e) "Public use" does not include use by for-profit
enterprises or other uses closed to the public.
