BARRY COUNTY CONVEYANCE S.B. 1123: COMMITTEE SUMMARY
Senate Bill 1123 (as introduced 3-25-04)
Sponsor: Senator Patricia L. Birkholz
Committee: Appropriations
Date Completed: 6-15-04
CONTENT
The bill would authorize the State Administrative Board, on behalf of the State, to convey all or portions of two parcels of State-owned property now under the jurisdiction of the Department of Labor and Economic Growth located in the City of Prairieville in Barry County, to the local units of government in which the property is located for less than fair market value. If a local unit of government failed to enter into a purchase agreement within 60 days after the date of offer, and complete the purchase within 120 days after the offer, the property could be offered for public sale and conveyed, for not less than fair market value to be determined by an appraisal prepared by an independent appraiser.
A conveyance to a local unit would have to require that the property be used exclusively for public purposes, and provide that if the property were not used for public purposes, the State could repossess the property, terminating the grantee's estate in it. If the property were offered for public sale, it would have to be conducted in a manner designed to realize the highest price from the sale, or the highest value to the State, and done in an open manner using a competitive sealed bid, real estate brokerage services, and/or a public auction. A notice of the bid auction, or use of brokerage services would have to be published at least once in a newspaper not less than 10 business days before the sale.
The conveyance would have to be by quitclaim deed approved by the Attorney General. The State would retain rights in aboriginal antiquities, but not the mineral rights. The conveyance would have to provide, however, that if the purchaser or any grantee developed any minerals found on, within, or under the property, the purchaser or grantee would have to pay half of the gross revenue generated from the development of the minerals to the State.
The bill would authorize the Director of the Department of Management and Budget (DMB) if it were in the best interests of the State, to order a reappraisal; withdraw the property from sale; or, with the concurrence of the State Administrative Board, offer the property for sale for less than fair market value.
FISCAL IMPACT
The bill would have an indeterminate impact on State and local government. Given that there is no current appraisal of the property, it is difficult to estimate how much the State could realize from its sale. In addition, if a local unit purchased the property, according to the bill, the sale could be for less than the appraised value. The bill may result in additional costs to the Department of Labor and Economic Growth as the bill would require the Department to reimburse the DMB for costs of the sale that exceeded the sale price. Any money realized beyond the closing and transaction costs would be deposited into the State's General Fund.
Fiscal Analyst: Michael HansenAnalysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent. sb1123/0304