Act No. 106
Public Acts of 2017
Approved by the Governor
July 13, 2017
Filed with the Secretary of State
July 13, 2017
EFFECTIVE DATE: July 13, 2017
STATE OF MICHIGAN
99TH LEGISLATURE
REGULAR SESSION OF 2017
Introduced by Rep. Schor
ENROLLED HOUSE BILL No. 4759
AN ACT to authorize the department of technology, management, and budget to convey parcels of state-owned property in Ingham County; to provide for powers and duties of state departments, agencies, and officers and branches of state government in regard to the property; and to provide for 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 all or portions of real property owned by this state located in the city of Lansing, county of Ingham, Michigan, and further described as follows:
PARCEL 1
The East 30 feet of the West 78 feet of the North 100 feet of Lots 11 and 12 and the North 100 feet of the West 48 feet of Lots 11 and 12, Block 115, Original Plat of the City of Lansing, City of Lansing, Ingham County, Michigan, according to the recorded plat thereof.
PARCEL 2
The north 32 5/6 feet of Lot 10 and the South 21 feet of Lot 11, Block 115, Original Plat of the City of Lansing, City of Lansing, Ingham County, Michigan, according to the recorded plat thereof.
(2) The department of technology, management, and budget may take the necessary steps to convey real property described in subsection (1) using 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, or by a value-for-value conveyance negotiated by the department of technology, management, and budget designed to realize the best value to this state. In determining whether a value-for-value conveyance of the property represents the best value, the department may consider the fair market value or the total value based on a property exchange, or any positive economic impact to this state likely to be generated by the proposed use of the property.
(3) 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 or the director of the department of technology, management, and budget.
(4) The fair market value must be determined 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.
(5) The state agency or branch of state government with jurisdiction over real property conveyed or transferred under this section is responsible for all expenses of maintaining the property until the time of conveyance or transfer.
(6) A deed authorized by this section must be approved as to legal form by the department of the attorney general.
(7) 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.
(8) This state shall not reserve oil, gas, or mineral rights to property conveyed under this section. However, the conveyance authorized under this section must provide that, if the grantee or any successor develops any oil, gas, or minerals found on, within, or under the conveyed property, the grantee or any successor must pay this state 1/2 of the gross revenue generated from the development of the oil, gas, or minerals. A payment under this subsection must be deposited in the general fund.
(9) A conveyance under this section must reserve to this state 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.
(10) The revenue received from the sale of property under this section must be used to reimburse the department of technology, management, and budget as required by section 896 of article VIII of 2014 PA 252 and to reimburse the department of technology, management, and budget for costs incurred related to the sale of the property, related expenses, and other ongoing costs, including, but not limited to, administrative costs, costs of appraisals, 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. Any remaining revenue must be deposited in the general fund.
(11) If property conveyed under this section is used in a manner that violates any of the restrictions imposed under subsection (8) or (9), this state may reenter and take the property, terminating the grantee’s or any successor’s estate in the property. An action to regain possession of the property under this section may be brought and maintained by the attorney general on behalf of this state.
(12) If this state reenters and repossesses property under subsection (11), this state is not liable to reimburse any person for any improvements made on the property or to compensate any person for any part of an unfulfilled contract or license issued to provide goods or services on or for the property.
(13) The department of technology, management, and budget may require a grantee of property conveyed under this section to record the sale with the appropriate register of deeds and provide the department of technology, management, and budget with a recorded copy of the recorded instrument.
(14) As used in this section, “fair market value” means the highest estimated price that the 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.
This act is ordered to take immediate effect.
Clerk of the House of Representatives
Secretary of the Senate
Approved
Governor