SB-1320, As Passed Senate, June 23, 2010

SUBSTITUTE FOR

SENATE BILL NO. 1320

     A bill to authorize the state administrative board to convey

certain state-owned property in Mason 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. The state administrative board, on behalf of the

state, may convey by quitclaim deed all or portions of certain

state-owned property now under the jurisdiction of the department

of corrections, commonly known as the camp Sauble correctional

facility, and located in the township of Free Soil, Mason county,

Michigan, and more particularly described as:

Township of Freesoil

Township 20 North, Range 16 West

Section 24

Southwest Quarter of the Southwest Quarter, 40 acres more or less.

Subject to and together with any restrictions, right-of-ways and

easements of record, if any.

Containing 40 acres of land, more or less.

     Sec. 2. The description of the real property 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.

     Sec. 3. The fair market value of the property described in

section 1 shall be determined by an appraisal prepared for the

department of technology, management, and budget by an independent

appraiser.

     Sec. 4. The property described in section 1 shall include all

surplus, salvage, and scrap property or equipment.

     Sec. 5. The director of the department of technology,

management, and budget shall first offer the property described in

section 1 to the township of Free Soil, which shall have the first

right to purchase the property for a period of 180 days after the

offer. The township of Free Soil may acquire the property, or any

portion of the property, for less than fair market value.

Conveyance of any portion of the property for less than fair market

value shall be subject to the conditions prescribed in section 7.

     Sec. 6. If any portion of the property described in section 1

is not conveyed pursuant to section 5, 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:

     (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.

     (c) Use of real estate brokerage services designed to realize

the 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 of technology, management, and budget 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.

     Sec. 7. Any conveyance to a local unit of government pursuant

to section 5 or 6(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 the 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 any 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

all costs necessary to prepare the property for conveyance.

     Sec. 8. For property conveyed pursuant to sections 5 and 6(f),

if the local unit of government intends to convey the property

within 10 years after the conveyance from the state, the local unit

shall provide notice to the director of the department of

technology, management, and budget, or its successor, 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, plus the value of any

improvements made to the property as determined by an independent

fee appraiser, within 90 days after the notice. In the event that

the state waives its right to first purchase the property, 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. 9. The department of attorney general shall approve as to

legal form all quitclaim deeds authorized by this act.

     Sec. 10. 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. 11. 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. 12. 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 any conveyance.