HB-6457, As Passed House, December 4, 2008

SUBSTITUTE FOR

HOUSE BILL NO. 6457

A bill to amend 2007 PA 43, entitled

"An act to authorize the state administrative board to convey

certain parcels of state owned property in Ingham county, Wayne

county, and Tuscola county; to prescribe conditions for the

conveyances; to provide for certain powers and duties of certain

state departments and agencies in relation to the conveyances; to

provide for disposition of revenue derived from the conveyances;

and to provide for the release of certain property rights held by

the state,"

by amending section 4.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 4. (1) The state administrative board, on behalf of the

state, may convey to ~~Indianfields township~~ Tuscola area airport

authority, in Tuscola county, for consideration of $1.00 plus the

cost necessary to prepare the real property for sale, all of

certain real property now under the jurisdiction of the department

of community health and located in Tuscola county, Michigan, and

more particularly described as:

Part of the Southeast 1/4 and Southwest 1/4 of Section 17, and part

of the Northwest 1/4 of Section 20, T12N, R9E, Indianfields

Township, Tuscola County, Michigan, described as commencing at the

Center of said Section 17; thence along the East-West 1/4 line of

said Section 17, S. 88° 41' 50" E., 335.38 feet to the Point of

Beginning; thence continuing along said East-West 1/4 line of

Section 17, S. 88° 41' 50" E., 2177.53 feet to a traverse line on

the top of bank of the Cass River; thence along said traverse line,

S. 41° 54' 49" W., 1422.68 feet and S. 82° 35' 09" W., 751.00 feet

and S. 62° 37' 43" W., 572.95 feet and S. 34° 54' 06" W., 865.51

feet and S. 63° 47' 30" W., 1325.94 feet and S. 46° 04' 24" W.,

492.67 feet to the centerline of Chambers Road; thence along said

centerline of Chambers Road on a curve to the right having a radius

of 327.40 feet, central angle of 83° 39' 40", and long chord

bearing and distance of N. 16° 26' 39" W., 436.71 feet; thence

continuing along said centerline of Chambers Road, N. 25° 23' 11"

E., 1028.69 feet to a point on a curve; thence on said curve to the

left having a radius of 230.00 feet, central angle of 52° 44' 42",

and long chord bearing and distance of N. 00° 57' 57" W., 204.33

feet to the Southeasterly line of railroad right-of-way; thence on

a non-tangent curve to the left having a radius of 3447.47 feet,

central angle of 10° 18' 35", and long chord bearing and distance

of N. 50° 54' 56" E., 619.50 feet; thence continuing along said

Southeasterly line of railroad right-of-way, N. 47° 34' 00" E.,

1723.14 feet to the Point of Beginning; containing 116.54 acres to

the water’s edge, more or less; subject to riparian rights

pertaining to the Cass River and other rights-of-way, easements and

restrictions of record.

(2) The description of the real property in subsection (1) is

approximate and for purposes of the conveyance is subject to

adjustment as the state administrative board or the attorney

general considers necessary by survey or other legal description.

(3) The property described in subsection (1) includes all

surplus, salvage, and scrap property and equipment.

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

steps necessary to convey the property described in subsection (1).

(5) The conveyance authorized by subsection (1) shall provide

for all of the following:

(a) The property shall be used exclusively for public

purposes, including, but not limited to, the purpose of a public

~~park and if~~ airport or public recreation. 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, resident and nonresident members of the

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

waivers.

(b) Upon termination of the use described in subdivision (a)

or use for any other purpose, the state may reenter and repossess

the property, terminating the grantee's estate in the property.

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.

(6) If the grantee described in subsection (1) does not

purchase the property within 180 days after the effective date of

the 2008 amendatory act that amended this section, the director of

the department of management and budget shall take the necessary

steps to prepare to convey the property 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.

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

management and budget.

(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, with standard rights

of reversionary interest.

(7) ~~(6)~~ The conveyance authorized by this section shall be by

quitclaim deed. The department of attorney general shall approve as

to legal form the quitclaim deed authorized under this section.

(8) ~~(7)~~ The conveyance authorized under this section shall

provide for the exercise of the state's ongoing property interests

in and regulatory jurisdiction over any historic artifacts and

antiquities subsequently found on the site.

(9) ~~(8)~~ The state shall not reserve oil, gas, or mineral

rights to the parcels of 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 general fund.

(10) ~~(9)~~ The revenue received from the conveyance authorized

by this section shall be deposited in the state treasury and

credited to the general fund.