Bill Text: MI HB5206 | 2009-2010 | 95th Legislature | Introduced
Bill Title: Property; conveyances; certain state owned property in Kalamazoo county; provide for conveyance. Creates land transfer act. TIE BAR WITH: HB 5205'09, HB 5207'09
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2009-07-28 - Printed Bill Filed 07/17/2009 [HB5206 Detail]
Download: Michigan-2009-HB5206-Introduced.html
HOUSE BILL No. 5206
July 16, 2009, Introduced by Rep. Robert Jones and referred to the Committee on Commerce.
A bill to authorize the state administrative board to convey
certain state owned property in Kalamazoo county; to prescribe
conditions for the conveyance; to provide for certain powers and
duties of the department of 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 state administrative board, on behalf of the
state, may convey to western Michigan university, for consideration
of $1.00, certain real property now under the jurisdiction of the
department of corrections and located in Kalamazoo county,
Michigan, and more particularly described as:
A parcel of land in the SW1/4 of Section 21, T2S,R11W, City of
Kalamazoo, Kalamazoo County, Michigan and more particularly
described as commencing at the S1/4 corner of said Section 21;
thence S89°48'12"W 1,564.12 feet, on the south line of said Section
21 to the centerline of Oakland Drive; thence N22°47'00"E 258.39
feet, on the centerline of Oakland Drive; thence N 79°05'07"W 33.72
feet, to the point of beginning of this description and westerly
right-of-way of Oakland Drive; thence N79°05'07"W 488.27 feet;
thence S00°17'51"W 270.00 feet, to the northerly right-of-way of
Howard Street; thence S78°11'48"E 32.94 feet, on said right-of-way;
thence 293.13 feet on the arc of a curve to the left whose central
angle is 12°00'00", radius of 1,399.40 feet and a long chord
bearing and distance of S84°29'48"E 292.60 feet, on said right-of-
way; thence N89°48'12"E 68.27 feet, on said right-of-way to the
westerly right-of-way of Oakland Avenue; thence N22°47'00"E 230.06
feet, on said right-of-way to the point of beginning, containing
2.55 acres, more or less. All bearings are relative and referenced
to previous surveys/descriptions of Kalamazoo Regional Psychiatric
Hospital properties.
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.
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 western Michigan university within 6 months after the effective
date of this act, the director of the department of 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 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) A value for value conveyance negotiated by the department
of 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 of the conveyance from the state, the local
unit shall provide notice to 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 within 90 days after the
notice. In the event that 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'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.
Enacting section 1. This act does not take effect unless all
of the following bills of the 95th Legislature are enacted into
law:
(a) Senate Bill No.____ or House Bill No. 5205(request no.
02738'09).
(b) Senate Bill No.____ or House Bill No. 5207(request no.
02739'09).
