May 19, 2010, Introduced by Reps. Lindberg, Nerat, McDowell and Lahti and referred to the Committee on Appropriations.
A bill to authorize the department of technology, management,
and budget to convey certain state owned property in Schoolcraft
county; to prescribe conditions for the conveyance; to provide for
certain powers and duties of the department of technology,
management, and budget in implementing the conveyance; and to
provide for disposition of revenue derived from the conveyance.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. The department of technology, management, and budget,
on behalf of the state, may convey to Schoolcraft county, for
consideration of $1.00, certain real property now under the
jurisdiction of the department of corrections and located in the
city of Manistique, Schoolcraft county, Michigan, and more
particularly described as:
A parcel of land being part of the NE 1/4 of the NE 1/4 of Section
12, T41N-R16W, and part of the NW 1/4 of the NW 1/4 of Section 7,
T41N-R15W, City of Manistique, Schoolcraft County, Michigan
described as:
Commencing at the Northwest corner of Section 7; thence
S00°22'09"W, 15.58 feet to the South Right-of-Way line of the
Wisconsin Central Railroad; thence S88° 22'52"E, 547.40 feet along
the South Railroad Right-of-Way line; thence S00° 22'09"W, 894.43
feet; thence N89°36'54"W, 547.27 feet to a found concrete monument
on the West line of Section 7; thence N89°05'11"W, 449.78 feet to a
found concrete monument; thence S02°29'48"W, 60.01 feet to a found
concrete monument; thence N89°03'52"W, 422.66 feet to the East
Right-of-Way line of Maple Avenue; thence N02°24'01"E, 104.30 feet
along the East Right-of-Way line of Maple Avenue to the North
Right-of-Way line of Pine Street; thence N78°15'15"W, 31.60 feet
along the North Right-of-Way line of Pine Street; thence
N03°17'44"E, 867.11 feet to the South Right-of-Way line of the
Wisconsin Central Railroad; thence S88°22'52"E, 857.85 feet along
the South Railroad Right-of-Way line to the Point of Beginning
containing 30.297 acres and subject to restrictions, reservations,
rights-of-way and easements of record.
Sec. 2. (1) The description of the parcel in section 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.
(2) The property described in section 1 includes all surplus,
salvage, and scrap property or equipment remaining on the property
as of the date of conveyance.
Sec. 3. The conveyance authorized by section 1 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, resident and
nonresident members of the public shall be subject to the same
fees, terms, conditions, and waivers.
(b) In the event of activity inconsistent with subdivision
(a), the state may reenter and repossess the property, terminating
the grantee's estate in the property.
(c) If the grantee 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.
Sec. 4. (1) If the property described in section 1 is not sold
to Schoolcraft county within 180 days after the effective date of
this act, the director of the department of technology, management,
and budget shall take the necessary steps to prepare to convey the
property described in section 1 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 technology,
management, and budget.
(b) A public auction designed to realize the best value to the
state, as determined by the department of technology, 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
technology, management, and budget.
(d) A value for value conveyance negotiated by the department
of technology, management, and budget designed to realize the best
value to the state. In determining whether value for value
consideration for the property represents the best value, the
department may consider the fair market value or the total value
based on any positive economic impact to the state likely to be
generated by the proposed use of the property, especially economic
impact resulting in the creation of jobs or increased capital
investment in the state.
(e) Offering the property for sale for fair market value to a
local unit or units of government.
(f) Offering the property for sale for less than fair market
value to a local unit or units of government subject to subsection
(2).
(2) Any conveyance to a local unit of government authorized by
subsection (1)(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 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.
(e) If the local unit of government intends to convey the
property within 3 years after the conveyance from the state, the
local unit of government shall provide notice to the department of
technology, management, and budget of its intent to offer the
property for sale. The department of technology, management, and
budget shall retain a right to first purchase the property at the
original sale price within 90 days after the notice. If the state
waives its first purchase 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's subsequent sale or sales to a third party.
Sec. 5. (1) The conveyance authorized by this act shall be by
quitclaim deed designed or otherwise approved as to legal form by
the attorney general. The state shall not reserve oil, gas, or
mineral rights to the property conveyed under this act. However,
the conveyance authorized under this act 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.
(2) 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 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.
Sec. 6. The net revenue received from the sale of property
under this act shall be deposited in the state treasury and
credited to the general fund. As used in this section, "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, 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.