HB-4480, As Passed House, April 13, 2010
March 3, 2009, Introduced by Reps. Cushingberry, Johnson and Durhal and referred to the Committee on Appropriations.
A bill to authorize the state administrative board to convey a
certain parcel of state owned property in Wayne county; to
prescribe conditions for the conveyance; to provide for certain
powers and duties of 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. The state administrative board, on behalf of the state
and subject to the terms stated in this act, may convey by
quitclaim deed, for not less than fair market value, all or
portions of certain state owned property now under the jurisdiction
of the department of human services, commonly known as Dexter-
Elmhurst, and located in the city of Detroit, county of Wayne,
Michigan, and more particularly described as follows:
Lots 113 to 119, inclusive; Lots 190 to 197, inclusive; and the
East 10 feet of Lot 198, Lewis and Crofoot's Subdivision No. 4 on
East 1/2 of 1/4 Section 29, in Ten Thousand Acre Tract, Greenfield,
T1S, R11E, Wayne County, Michigan, as recorded in Liber 26, Page 84
of Plats, Wayne County Records.
Sec. 2. The description of the property in section 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.
Sec. 3. The property described in section 1 includes all
surplus, salvage, and scrap property or equipment.
Sec. 4. The fair market value of the property described in
section 1 shall be determined by an appraisal prepared for the
department of management and budget by an independent appraiser.
Sec. 5. Subject to section 6, 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) 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 section 7.
Sec. 6. Before offering the property describe in section 1 for
public sale, the director of the department of management and
budget shall first offer the property for sale for consideration of
$1.00 to the county of Wayne, or an entity formed by the county of
Wayne, subject to section 7. The county of Wayne, or an entity
formed by the county of Wayne, shall have a first right to purchase
the property for 120 days after the effective date of this act.
Sec. 7. Any conveyance to a local unit of government
authorized by section 5(e) or 6 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) The local unit of government shall reimburse the state for
requested costs necessary to prepare the property for conveyance.
(f) If the local unit of government intends to convey the
property within 10 years after purchasing the property from this
state, the local unit of government 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. If the state waives that
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 of government's
subsequent sale or sales to a third party.
Sec. 8. The department of attorney general shall approve as to
legal form the quitclaim deed authorized by this act.
Sec. 9. 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.
Sec. 10. 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. 11. 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, 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.