HB-5779, As Passed Senate, September 29, 2010

SUBSTITUTE FOR

HOUSE BILL NO. 5779

A bill to authorize the state administrative board to convey

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

prescribe conditions for the conveyances; 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 conveyances.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 1. (1) The state administrative board, on behalf of the

state, may convey to the city of Mt. Pleasant, for consideration of

$1.00, all or portions of certain state-owned property now under

the jurisdiction of the department of community health, commonly

known as the Mt. Pleasant center, located in the city of Mt.

Pleasant, Isabella county, Michigan, and more particularly

described as follows:

Mt. Pleasant Center Main Campus:

A PARCEL OF LAND SITUATED IN THE TOWNSHIP OF UNION, COUNTY OF

ISABELLA, STATE OF MICHIGAN, AND DESCRIBED AS FOLLOWS TO-WIT:

A PARCEL OF LAND BEING PART OF THE EAST ½ OF SECTION 9, T14N, R4W,

MORE PARTICULARLY DESCRIBED AS: BEGINNING AT THE SOUTH ¼ CORNER OF

SAID SECTION 9; THENCE N00°15'30"W 1446.74 FEET ALONG THE NORTH-

SOUTH ¼ LINE OF SAID SECTION 9; THENCE N89°42'45"E 274.82 FEET;

THENCE N00°15'29"W 1182.23 FEET; THENCE N89°00'51"E 72.74 FEET;

THENCE N07°42'29"W 103.33 FEET; THENCE N71°34'42"W 352.72 FEET TO

THE NORTH-SOUTH 1/4 LINE; THENCE N00°15'17"W ALONG SAID NORTH-SOUTH

1/4 LINE, 2417.88 FEET TO THE NORTH SECTION LINE; THENCE

N88°50'08"E ALONG SAID NORTH LINE, 2647.57 FEET TO THE EAST SECTION

LINE; THENCE S00°17'11"E ALONG SAID EAST LINE, 2645.95 FEET TO THE

EAST-WEST 1/4 LINE; THENCE S00°16'36"E ALONG SAID EAST LINE,

1255.42 FEET; THENCE N89°57'07"W 367.31 FEET; THENCE S32°02'10"W

380.92 FEET; THENCE S60°57'30"E 219.17 FEET; THENCE S04°24'33"E

238.08 FEET; THENCE S57°56'51"E 429.20 FEET TO THE EAST SECTION

LINE; THENCE S00°16'36"E ALONG SAID EAST LINE, 497.72 FEET TO THE

SOUTH SECTION LINE; THENCE S89°28'59"W ALONG SAID SOUTH LINE,

2649.58 FEET TO THE POINT OF BEGINNING. PARCEL CONTAINS 304.62

ACRES OF LAND, MORE OR LESS.

SUBJECT TO THE PUBLIC RIGHT-OF-WAY OF PICKARD ROAD OVER THE

SOUTHERLY 58 FEET THEREOF, THE RIGHT-OF-WAY OF BAMBER ROAD OVER THE

WESTERLY 33 FEET THEREOF, THE RIGHT-OF-WAY OF RIVER ROAD OVER THE

NORTHERLY 33 FEET THEREOF AND THE RIGHT-OF-WAY OF CRAWFORD ROAD

OVER THE EASTERLY 33 FEET THEREOF.

ALSO SUBJECT TO AND TOGETHER WITH ANY RESTRICTIONS, RIGHT-OF-WAYS

OR EASEMENTS 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) shall include 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 of technology, management, and budget by an independent

appraiser.

(5) If any portion of the property described in subsection (1)

is not conveyed to the city of Mt. Pleasant within 180 days after

the effective date of this act, the director of the department of

technology, management, and budget shall take the necessary steps

to prepare to convey the remaining portions of the property 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 technology,

management, and budget.

(b) A public auction designed to realize the best value to the

state, as determined by the department of technology, management,

and budget.

best value to the state, as determined by the department of

technology, management, and budget.

(d) A value for value conveyance negotiated by the department

of technology, 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 an amount equal

to the actual costs to maintain the property, 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

subsections (6) and (7).

(g) Conveying the property to the land bank fast track

authority established under the land bank fast track act, 2003 PA

258, MCL 124.751 to 124.774.

(6) Any conveyance for less than fair market value authorized

by subsection (1) or (5)(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.

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 grantee shall reimburse the state for all costs

necessary to prepare the property for conveyance, including, but

not limited to, surveys, title work, appraisals, and environmental

assessments.

(7) For property conveyed pursuant to subsection (1) or (5)

(f), if the local unit of government grantee intends to convey the

property within 10 years after the conveyance from the state, the

grantee shall provide notice to the department of technology,

management, and budget of its intent to offer the property for

sale. The department of technology, management, and budget shall

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

price within 90 days after the notice at the original sale price

plus the costs of any physical improvements made to the property,

as determined by an auditor chosen by the state. If the state

waives its right to first purchase the property, the local unit of

government shall pay to the state 50% of the amount by which the

sale price of the local unit’s subsequent sale or sales of the

property to a third party exceeds the sum of the original sale

price and the costs of any physical improvements made by the local

unit to the property, as determined by an auditor chosen by the

state. As used in this subsection, "physical improvements" shall

include, but not be limited to, the cost of environmental

remediation, demolition, and infrastructure improvements.

(8) The conveyance authorized by this section shall be by

quitclaim deed approved by the department of attorney general.

(9) The state shall not reserve oil, gas, or mineral rights to

the property conveyed under this section. However, the 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.

(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.

(11) The net revenue received from the sale of property under

this section shall be deposited in the state treasury and credited

to the general fund. As used in this subsection, "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 any conveyance under this section.

Sec. 2. (1) The state administrative board, on behalf of the

state, may convey to the Saginaw Chippewa Indian tribe of Michigan,

for consideration of $1.00, certain state-owned property now under

the jurisdiction of the department of community health, commonly

known as the Mt. Pleasant center, and located in the city of Mt.

Pleasant, County of Isabella, Michigan, described as follows:

Parcel 1: Cemetery and Gravesites

A PARCEL OF LAND SITUATED IN THE TOWNSHIP OF UNION, COUNTY OF

ISABELLA, STATE OF MICHIGAN, AND DESCRIBED AS FOLLOWS TO-WIT:

A PARCEL OF LAND BEING IN THE NORTHEAST 1/4 OF SECTION 9, T14N,

R4W, MORE PARTICULARLY DESCRIBED AS COMMENCING AT THE NORTH 1/4

THENCE S00°15'17"E 2417.88 FEET ALONG THE N-S 1/4 LINE TO THE POINT

OF BEGINNING; THENCE CONTINUING S00°15'17"E ALONG SAID N-S 1/4

LINE, 219.84 FEET TO THE E-W 1/4 LINE; THENCE N89°00'51"E ALONG

SAID E-W 1/4 LINE, 347.58 FEET; THENCE N07°42'29"W 103.33 FEET;

THENCE N71°34'42"W 352.72 FEET TO THE POINT OF BEGINNING. PARCEL

CONTAINS 1.25 ACRES OF LAND, MORE OR LESS.

SUBJECT TO THE PUBLIC RIGHT-OF-WAY FOR BAMBER ROAD OVER THE

WESTERLY 33-FEET THEREOF.

SUBJECT TO ALL RESTRICTIONS, RIGHT-OF-WAYS, EASEMENTS, COVENANTS

AND AGREEMENTS OF RECORD, IF ANY.

Parcel 2: Six Indian School Buildings

A PARCEL OF LAND SITUATED IN THE TOWNSHIP OF UNION, COUNTY OF

ISABELLA, STATE OF MICHIGAN, AND DESCRIBED AS FOLLOWS TO-WIT:

A PARCEL OF LAND BEING PART OF THE EAST ½ OF SECTION 9, T14N, R4W,

MORE PARTICULARLY DESCRIBED AS COMMENCING AT THE SOUTHEAST CORNER

OF SECTION 9; THENCE N00°16'36"W ALONG THE EAST SECTION LINE,

497.72 FEET TO THE POINT OF BEGINNING; THENCE CONTINUING N00°16'36W

ALONG SAID EAST LINE, 894.16 FEET; THENCE N89°57'07"W 367.31 FEET;

THENCE S32°02'10"W 380.92 FEET; THENCE S60°57'30"E 219.17 FEET;

THENCE S04°24'33"E 238.08 FEET; THENCE S57°56'51"E 429.20 FEET TO

THE POINT OF BEGINNING; PARCEL CONTAINS 7.61 ACRES OF LAND, MORE OR

LESS.

SUBJECT TO THE PUBLIC RIGHT-OF-WAY OF CRAWFORD ROAD OVER THE

EASTERLY 33 FEET THEREOF.

ALSO SUBJECT TO AND TOGETHER WITH ANY RESTRICTIONS, RIGHT-OF-WAYS

OR EASEMENTS 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) shall include 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 of technology, management, and budget by an independent

appraiser.

(5) If any portion of the property described in subsection (1)

is not conveyed to the Saginaw Chippewa Indian tribe of Michigan

within 180 days after the effective date of this act, the director

of the department of technology, management, and budget shall take

the necessary steps to prepare to convey the remaining portions of

the property 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 technology,

management, and budget.

(b) A public auction designed to realize the best value to the

state, as determined by the department of technology, management,

and budget.

best value to the state, as determined by the department of

technology, management, and budget.

(d) A value for value conveyance negotiated by the department

of technology, 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 an amount equal

to the actual costs to maintain the property, 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

subsections (6) and (7).

(g) Conveying the property to the land bank fast track

authority established under the land bank fast track act, 2003 PA

258, MCL 124.751 to 124.774.

(6) Any conveyance for less than fair market value authorized

by subsection (1) or (5)(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.

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 grantee shall reimburse the state for all costs

necessary to prepare the property for conveyance, including, but

not limited to, surveys, title work, appraisals, and environmental

assessments.

(7) For property conveyed pursuant to subsection (1) or (5)

(f), if the local unit of government grantee intends to convey the

property within 3 years after the conveyance from the state, the