SB-0566, As Passed Senate, September 22, 2005

 

 

 

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

SENATE BILL NO. 566

 

(As amended, September 22, 2005)

 

 

 

 

 

 

 

 

 

 

 

     <<A bill to authorize the state administrative board to convey

 

certain parcels of state owned property in Wayne county; to

 

prescribe conditions for the conveyances; to prescribe certain

 

powers and duties of certain state departments and agencies; and to

 

provide for disposition of revenue derived from the conveyances.>>

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

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

 

state, may convey by quitclaim deed to Plymouth township, in Wayne

 

county, for consideration of $1.00, all or portions of certain

 

property now under the jurisdiction of the department of

 

corrections and located in Plymouth township, Wayne county,

 

Michigan, and further described as follows:

 


A parcel of land in the northeast quarter of section 20, Plymouth

 

Township, Wayne County, Michigan, Town 1 South, Range 8 East,

 

described as: commencing at the N 1/4 corner of said section 20;

 

thence S89˚45'02"E 1119.14 feet on the north line of said section

 

to the point of beginning of this description; thence continuing on

 

said north line S89˚45'02"E 50.00 feet; thence S01˚03'21"W 225.00

 

feet; thence S89˚45'02"E 150.00 feet to the east line of a parcel

 

recorded at Liber 22436, Page 520; thence S01˚03'21"W 200.00 feet

 

on said east line; thence N89˚45'02"W 200.00 feet; thence

 

N01˚03'21"E 425.00 feet to the point of beginning, containing 1.18

 

acres, more or less.

 

     (2) The description of the parcel in this section 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.

 

The property described in this section includes all surplus,

 

salvage, and scrap property or equipment.

 

     (3) The department of attorney general shall approve as to

 

legal form the quitclaim deed authorized by this section.

 

     (4) The conveyance authorized by this section shall provide

 

for all of the following:

 

     (a) The property shall be used exclusively for public

 

purposes, including, but not limited to, the construction of a

 

water tower, 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 this property, all

 

members of the public shall be subject to the same fees, terms,

 


conditions, and waivers.

 

     (b) In the event of an activity inconsistent with subdivision

 

(a), the 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 the state's exercise

 

of its right of reentry and fails to promptly deliver possession of

 

the property to the state, the attorney general, on behalf of the

 

state, may bring an action to quiet title to, and regain possession

 

of, the property.

 

     (d) If the state reenters and repossesses the property, the

 

state shall not be liable to reimburse any party for any

 

improvements made on the property.

 

     (5) The 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 the state 1/2 of the gross revenue generated from the

 

development of the oil, gas, or minerals. This payment shall be

 

deposited in the natural resources trust fund.

 

     (6) The state reserves all aboriginal antiquities, including

 

mounds, earthworks, forts, burial and village sites, mines, or

 

other relics lying on, within, or under the property conveyed under

 

this section, with power to the 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.

 

     (7) Subject to the state's right to reenter and repossess the

 


property under subsection (4), if the grantee intends to convey the

 

property conveyed under this section within 3 years after the

 

conveyance from the state, the grantee shall provide notice to the

 

director of the department of management and budget of its intent

 

to offer the property for sale. The department of management and

 

budget shall retain a right to first purchase the property at the

 

original sale price, plus the value of any improvements made to the

 

property as determined by an independent fee appraiser, within 90

 

days after the notice. If the state waives its first refusal right,

 

the grantee shall pay to the state 40% of the difference between

 

the sale price of the conveyance from the state and the sale price

 

of the grantee's subsequent sale or sales to a third party.

 

     (8) All state agencies and departments shall cooperate fully

 

with the state administrative board to facilitate the performance

 

of its duties, powers, and responsibilities under this section. The

 

state administrative board may require a state agency or department

 

to prepare or record any documents necessary to evidence the

 

conveyance of property under this section.

 

     (9) The net revenue received from the sale of property under

 

this section shall be deposited in the state treasury and credited

 

to the general fund. As used in this subsection, "net revenue"

 

means the proceeds from the sale of the property less reimbursement

 

for any costs to the state associated with the sale of property,

 

including, but not limited to, employee wages, salaries, and

 

benefits associated with administrative personnel; 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.

 

     Sec. 2. (1) The state administrative board, on behalf of the

 

state, may convey by quitclaim deed for not less than fair market

 

value all or portions of certain state owned property now under the

 

jurisdiction of the department of corrections, commonly known as

 

western Wayne correctional facility, and located in Plymouth

 

township, Wayne county, Michigan, and more particularly described

 

as follows:

 

A parcel of land in the N 1/2 of section 20, T1S – R8E Plymouth

 

Township, Wayne County, Michigan, more particularly described as

 

beginning at the NW corner of said section 20; thence N89˚50'10"E

 

2650.86 feet on the north line of said section to the N 1/4 corner

 

of said section; thence continuing on said north line S89˚45'02"E

 

1319.14 feet; thence S01˚03'21"W 2532.18 feet to the northerly

 

right of way of the Chesapeake and Ohio Railroad; thence along said

 

northerly right of way for the following four (4) courses:

 

     1) 116.58 feet on a curve to the right with a radius of

 

2596.27 feet, a central angle of 02˚34'22" and a long chord bearing

 

and distance of N56˚44'27"W 116.57 feet

 

     2) N55˚27'04"W 1052.13 feet

 

     3) 672.28 feet on a curve to the left with a radius of 3889.51

 

feet, a central angle of 09˚54'12" and a long chord bearing and

 

distance of N60˚24'17"W 671.45 feet

 

     4) N65˚21'16"W 2614.21 feet to the west line of said section

 

20; thence N00˚05'01"E 447.57 feet on said west line to the point

 

of beginning, containing 127.27 acres, more or less.

 

EXCEPT a parcel of land described as commencing at the N 1/4 corner

 


of said section 20; thence S89˚45'02"E 1119.14 feet on the north

 

line of said section to the point of beginning of this description;

 

thence continuing on said north line S89˚45'02"E 50.00 feet; thence

 

S01˚03'21"W 225.00 feet; thence S89˚45'02"E 150.00 feet to the east

 

line of a parcel recorded at Liber 22436, Page 520; thence

 

S01˚03'21"W 200.00 feet on said east line; thence N89˚45'02"W

 

200.00 feet; thence N01˚03'21"E 425.00 feet to the point of

 

beginning, containing 1.18 acres, more or less.

 

Subject to a 60-foot wide easement adjacent and parallel to the

 

west and north section lines for roadway purposes.

 

     (2) The description of the property in this section 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.

 

The property described in this section includes all surplus,

 

salvage, and scrap property or equipment.

 

     (3) The fair market value of the property described in this

 

section shall be determined by an appraisal prepared for the

 

department of management and budget by an independent appraiser.

 

     (4) The department of attorney general shall approve as to

 

legal form the quitclaim deed authorized by this section.

 

     (5) The department of management and budget shall take the

 

necessary steps to prepare to convey the property described in this

 

section using any of the following at any time:

 

     (a) Competitive bidding designed to realize the best value to

 

the state, as determined by the department of management and

 

budget.

 


     (b) A public auction designed to realize the best value to the

 

state, as determined by the department of management and budget.

 

     (c) Use of real estate brokerage services designed to realize

 

the best value to the state, as determined by the department of

 

management and budget.

 

     (d) Offer the property for sale for fair market value to a

 

local unit or units of government.

 

     (e) Offer the property for sale for less than fair market

 

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

 

(6).

 

     (6) Any conveyance to a local unit of government authorized by

 

subsection (5)(e) 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 this property, all members of

 

the public shall be subject to the same fees, terms, conditions,

 

and waivers.

 

     (b) In the event of an activity inconsistent with subdivision

 

(a), the 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 the state's exercise

 

of its right of reentry and fails to promptly deliver possession of

 

the property to the state, the attorney general, on behalf of the

 

state, may bring an action to quiet title to, and regain possession

 

of, the property.

 

     (d) If the state reenters and repossesses the property, the

 


state shall not be liable to reimburse any party for any

 

improvements made on the property.

 

     (7) The 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 the state 1/2 of the gross revenue generated from the

 

development of the oil, gas, or minerals. This payment shall be

 

deposited in the natural resources trust fund.

 

     (8) The state reserves all aboriginal antiquities, including

 

mounds, earthworks, forts, burial and village sites, mines, or

 

other relics lying on, within, or under the property conveyed under

 

this section, with power to the 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.

 

     (9) Subject to the state's right to reenter and repossess the

 

property under subsection (6), if a local unit of government

 

intends to convey the property conveyed under this section within 3

 

years after the conveyance from the state, the local unit of

 

government shall provide notice to the director of the department

 

of management and budget of its intent to offer the property for

 

sale. The department of management and budget shall retain a right

 

to first purchase the property at the original sale price, plus the

 

value of any improvements made to the property as determined by an

 

independent fee appraiser, within 90 days after the notice. If the

 

state waives its first refusal right, the local unit of government

 


shall pay to the state 40% of the difference between the sale price

 

of the conveyance from the state and the sale price of the local

 

unit of government's subsequent sale or sales to a third party.

 

     (10) All state agencies and departments shall cooperate fully

 

with the state administrative board to facilitate the performance

 

of its duties, powers, and responsibilities under this section. The

 

state administrative board may require a state agency or department

 

to prepare or record any documents necessary to evidence the

 

conveyance of property under this section.

 

     (11) The net revenue received from the sale of property under

 

this section shall be deposited in the state treasury and credited

 

to the general fund. As used in this subsection, "net revenue"

 

means the proceeds from the sale of the property less reimbursement

 

for any costs to the state associated with the sale of property,

 

including, but not limited to, employee wages, salaries, and

 

benefits associated with administrative personnel; 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.