HB-4803, As Passed House, March 22, 2012

SUBSTITUTE FOR

HOUSE BILL NO. 4803

A bill to authorize the state administrative board to transfer

or convey a certain parcel of state-owned property of approximately

6 acres in Wayne county; to prescribe conditions for the transfer

or conveyance; to create a state fairgrounds sale advisory

committee; to provide for certain powers and duties of certain

state departments and agencies in regard to the property; to

provide for disposition of revenue derived from the conveyance of

the property; and to provide for the disposal of fixtures and

equipment on the property.

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 or transfer, as provided in

this act, all or portions of certain state-owned property under the

jurisdiction of the department, which is part of the property

commonly known as the Michigan state fairgrounds, is located in the

city of Detroit, Wayne county, Michigan, and is further described

as follows:

A parcel of land in the NE 1/4 of Section 2, T1S, R11E, City of

Detroit, Wayne County, Michigan; the boundary of said parcel being

described as commencing at the North 1/4 Corner of Section 2, T1S,

R11E, Michigan Meridian; thence N 88°00'34" E, along the North

Section line, 30.11 feet; thence S 31°13'25" E, along the

Northeasterly right of way of the Grand Trunk Western Railroad,

1538.78 feet to the POINT OF BEGINNING; thence N 88°05'49" E,

537.23 feet; thence S 01°15'10" E, 937.64 feet; thence N 31°13'25"

W, along said right of way line, 1075.34 feet to the point of

beginning; said parcel contains 5.78 acres.

(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 department shall attempt to dispose of surplus,

salvage, and scrap fixtures and equipment on the property described

in subsection (1) by donating or selling the fixtures and equipment

to county or other local fairs. The department may dispose of as

otherwise provided by law any surplus, salvage, or scrap fixture or

equipment not donated or sold to a county or other local fair. The

property described in subsection (1) includes all surplus, salvage,

and scrap property or equipment remaining on the property as of the

date of the conveyance.

Sec. 2. (1) The department shall take the necessary steps to

prepare for the conveyance or transfer of the property at any time.

(2) The department may prepare for the conveyance of the

property by any of the following means:

(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.

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

(5) and (6).

(3) The department may prepare for the transfer of the

property to the state land bank fast track authority, subject to

sections 3 and 4.

(4) A conveyance under subsection (2) or section 4 of all or a

portion of the property described in section 1 shall provide for

all of the following:

(a) The property conveyed shall not be used for a horse racing

track, auto racing track, casino, railroad freight yard, jail, or

prison.

(b) In the case of a conveyance under subsection (2)(f), the

property conveyed shall be used exclusively for public purposes.

with subdivision (a) or, if applicable, subdivision (b), this state

may reenter and repossess that property, terminating the grantee's

or successor's estate in that property.

(d) If the grantee or successor disputes this state's exercise

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

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

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

of, that property.

(e) If this state reenters and repossesses that property, this

state is not liable to reimburse any party for any improvements

made on that property.

(5) A conveyance for less than fair market value authorized by

subsection (2)(f) shall provide that, if requested by this state,

the grantee shall reimburse this state for costs necessary to

prepare the property for conveyance.

(6) If all or a portion of the property is conveyed for less

than fair market value pursuant to subsection (2)(f) and if the

local unit of government intends to convey the property within 10

years after the conveyance under subsection (2)(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 price of the conveyance from this state under

subsection (2)(f) 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 price of the conveyance from this state

under subsection (2)(f) and the price of the local unit's

subsequent conveyance to a third party.

Sec. 3. (1) If all or a portion of the property is transferred

to the state land bank fast track authority pursuant to section

2(3), the state fairgrounds sale advisory committee is created

within the department.

(2) The committee does not have the power to authorize or

prohibit any action by the state land bank fast track authority and

is advisory only.

(3) The committee shall consist of 1 representative, appointed

by the governor, from each of the following neighborhood

organizations from the vicinity of the state fairgrounds:

(a) Sherwood Forest neighborhood association.

(b) University district neighborhood association.

(d) Palmer Woods neighborhood association.

(e) Greenacres neighborhood association.

(4) The members first appointed to the committee shall be

appointed within 60 days after the property is transferred to the

state land bank fast track authority.

(5) Members of the committee shall serve for terms of 3 years

or until a successor is appointed, whichever is later, except that

of the members first appointed under subsection (3), 3 shall serve

for 3 years and 2 shall serve for 2 years.

(6) If a vacancy occurs on the committee, the unexpired term

shall be filled in the same manner as the original appointment.

(7) The first meeting of the committee shall be called by the

executive director of the state land bank fast track authority. At

the first meeting, the committee shall elect from among its members

a chairperson and other officers as it considers necessary or

appropriate. After the first meeting, the committee shall meet at

least quarterly, or more frequently at the call of the chairperson

or if requested by 2 or more members.

(8) A majority of the members of the committee constitute a

quorum for the transaction of business at a meeting of the

committee. A majority of the members present and serving are

required for official action of the committee.

(9) The business that the committee may perform shall be

conducted at a public meeting of the committee held in compliance

with the open meetings act, 1976 PA 267, MCL 15.261 to 15.275.

(10) A writing prepared, owned, used, in the possession of, or

retained by the committee in the performance of an official

function is subject to the freedom of information act, 1976 PA 442,

MCL 15.231 to 15.246.

(11) Members of the committee shall serve without

compensation.

(12) Subject to subsection (2), the committee shall provide

input and make recommendations to the state land bank fast track

authority on the sale and use of the property transferred to the

state land bank fast track authority pursuant to section 2(3).

(13) The state land bank fast track authority shall provide

necessary staffing for the committee and cooperate with the

committee in the fulfillment of the committee's duties.

(14) The committee is dissolved 60 days after all property

transferred to the state land bank fast track authority pursuant to

section 2(3) of this act and section 2(3) of Senate Bill No. 515 of

the 96th Legislature is conveyed by the state land bank fast track

authority.

(15) This act and Senate Bill No. 515 of the 96th Legislature

do not together create more than 1 state fairgrounds sale advisory

committee.

Sec. 4. If all or a portion of the property is transferred to

the state land bank fast track authority pursuant to section 2(3),

and the state land bank fast track authority subsequently conveys

the property to a third party, the state land bank fast track

authority shall establish performance requirements and penalty

provisions within the purchase agreement or other agreements

related to the subsequent conveyance. Not more than 30 days after

conveying property under this subsection, the state land bank fast

track authority shall submit a report to the legislature describing

the terms of the conveyance and providing a full accounting of all

revenue from and costs associated with the conveyance. The state

land bank fast track authority shall not convey the property to a

county authority or local authority.

Sec. 5. (1) A quitclaim deed or transfer document authorized

by this act shall be approved as to legal form by the department of

attorney general.

(2) This state shall not reserve oil, gas, or mineral rights

to property conveyed under this act. However, a 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

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.

(3) 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.

(4) The net revenue received by this state from the conveyance

of property under this act, including conveyance by the state land

bank fast track authority, shall be deposited in the state treasury

and credited to the general fund.

Sec. 6. As used in this act:

(a) "Committee" means the state fairgrounds sale advisory

committee established pursuant to section 3(1).

(b) "County authority" means that term as defined in section 3

of the land bank fast track act, 2003 PA 258, MCL 124.753.

management, and budget.

(d) "Local authority" means that term as defined in section 3

of the land bank fast track act, 2003 PA 258, MCL 124.753.

(e) "Net revenue" means the proceeds from the conveyance of

the property less reimbursement for any costs to the department,

land bank fast track authority, or other state department or agency

associated with the maintenance, preparation for sale, or 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; any litigation related

to the conveyance of the property; and costs to the land bank fast

track authority to provide necessary staffing for the committee and

cooperate with the committee in the fulfillment of the committee's

duties.

(f) "State land bank fast track authority" means the land bank