Bill Text: MI SB1133 | 2011-2012 | 96th Legislature | Engrossed

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Property; conveyances; sale of Ypsilanti state police post; provide for. Creates land transfer act.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2012-12-31 - Assigned Pa 0489'12 With Immediate Effect [SB1133 Detail]

Download: Michigan-2011-SB1133-Engrossed.html

SB-1133, As Passed House, December 4, 2012

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

SENATE BILL NO. 1133

 

 

 

 

 

 

 

 

 

 

 

 

 

     A bill to authorize the state administrative board to convey

 

certain parcels of state-owned property in Washtenaw county; to

 

prescribe conditions for the conveyance; to provide for certain

 

powers and duties of certain state departments in regard to the

 

property; and to provide for disposition of revenue derived from

 

the conveyance.

 

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 all or portions of certain

 

state-owned property under the jurisdiction of the department of

 

state police, commonly known as the Ypsilanti state police post #26

 

facility, located in the township of Ypsilanti, Washtenaw county,


 

Michigan, and further described as follows:

 

That part of the Southwest 1/4 of Section 16, Town 3 South, Range 7

 

East, Ypsilanti Township, Washtenaw County, Michigan, described as

 

beginning at a point distant North 3° 10' 40" West, 960.96 feet and

 

South 72° 21' 20" West, 1396.20 feet from the South 1/4 corner of

 

said Section 16, and proceeding thence South 72° 21' 20" West,

 

600.00 feet; thence North 8° 24' 20" East along the centerline of

 

South Huron Street, 300.00 Feet; thence North 72° 21' 20" East

 

600.00 feet; thence South 8° 24' 20" West, 300.00 feet to the Point

 

of Beginning. The property described in this subsection is subject

 

to easements, rights-of-way, and restrictions of record, if any.

 

     (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 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.

 

     (4) The fair market value of the property described in

 

subsection (1) shall be determined by an appraisal prepared for the

 

department by an independent appraiser.

 

     (5) The director of the department shall first offer the

 

property described in subsection (1) for sale for $1.00 to the

 

local units of government in which the property is located. To

 

exercise its right to purchase the property under this subsection,

 

a local unit of government shall complete the purchase within 180

 

days after the effective date of this act. Conveyance of any


 

portion of the property for $1.00 is subject to the conditions

 

prescribed in subsections (7) and (8).

 

     (6) If the property described in subsection (1) or any portion

 

thereof is not conveyed pursuant to subsection (5), the department

 

shall take the necessary steps to prepare to convey the remaining

 

property using any of the following at any time:

 

     (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.

 

     (c) Real estate brokerage services designed to realize the

 

best value to this state, as determined by the department.

 

     (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 subject to subsections

 

(7) and (8).

 

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

 

subsection (5) or (6)(e) 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) If the provision of the conveyance required under

 

subdivision (a) is violated, this 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 this state's exercise

 

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

 

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

 

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

 

of, the property.

 

     (d) If this state reenters and repossesses the property, this

 

state is not liable to reimburse any party for any improvements

 

made on the property.

 

     (e) If requested, the grantee shall reimburse the department

 

for costs necessary to prepare the property for conveyance.

 

     (8) If the property is conveyed pursuant to subsection (5) or

 

(6)(e) and if the local unit of government intends to convey the

 

property within 10 years after the conveyance under subsection (5)

 

or (6)(e), the local unit shall provide notice to the department of

 

its intent to offer the property for sale. The department shall

 

retain a right to first purchase the property at the original sale

 

price 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 sale price of the conveyance from this state under subsection

 

(5) or (6)(e) and the sale price of the local unit's subsequent

 

sale or sales to a third party.

 

     (9) The department of attorney general shall approve as to


 

legal form the quitclaim deed authorized by this section.

 

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

 

to property conveyed under this section. However, a 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.

 

     (11) 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.

 

     (12) Net revenue shall be deposited in the state treasury and

 

credited to the general fund.

 

     (13) As used in this section:

 

     (a) "Department" means the department of technology,

 

management, and budget.

 

     (b) "Net revenue" means the proceeds from the sale of the

 

property less reimbursement for any costs to this state associated

 

with the sale of the 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; and any litigation related to the conveyance of the


 

property.

feedback