HB-5340, As Passed House, September 15, 2004

SUBSTITUTE FOR

HOUSE BILL NO. 5340

                                                                             A bill to amend 2002 PA 440, entitled                                             

"An act to authorize the state administrative board to convey               

certain state owned property in Macomb county; to prescribe                 

conditions for the conveyance; and to provide for disposition of            

the revenue from the conveyance,"                                           

by amending sections 3, 4, 5, and 6.                                        

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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

2   section 1 shall be determined by an appraisal based on using the            

3   property for providing services to  the individuals who are

4   mentally ill, aged, physically handicapped, substance abusers, or           

5   developmentally disabled,  citizens referred to collectively as            

6   community-based services.                                                   

7       Sec. 4.  The property described in section 1 shall be                       

8   conveyed  for the purpose of providing outpatient services to               

9   indigent persons requiring community health services due to                 

10  mental illness, aging, substance abuse, or developmental                    

1   disability, and the deed conveying the property shall provide for           

2   both of the following: to the Macomb-Oakland regional center,              

3   inc., commonly known as MORC, at fair market value as determined            

4   under section 3.

5   (a) That the property shall be used exclusively for                         

6   providing outpatient services to indigent persons requiring                 

7   community health services due to mental illness, aging, substance           

8   abuse, or developmental disability, for a period of 50 years                

9   after the date of the conveyance and that upon termination of               

10  that use or use for any other purpose during that period, the               

11  state may reenter and repossess the property, terminating the               

12  grantee's estate in the property.                                           

13      (b) That if the grantee disputes the state's exercise of its                

14  rights of reentry and fails to promptly deliver possession of the           

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

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

17  possession of, the property.

18      Sec. 5.  (1) The conveyance authorized by this act shall be                 

19  by quitclaim deed, and a right of first refusal agreement,                  

20  drafted by and approved by the attorney general.                            

21  (2) The quitclaim deed shall provide that if property is                    

22  subsequently offered for sale by the Macomb-Oakland regional                

23  center for any purpose other than the provision of                          

24  community-based services, the state has the first right to                  

25  repurchase the property from the grantee, for a period of 90                

26  days, for an amount equal to the price that the Macomb-Oakland              

27  regional center paid to the state for the property.

1       Sec. 6.  (1) The conveyance authorized under this act shall                 

2   provide that, if the property is subsequently sold by the                   

3   Macomb-Oakland regional center for any purpose other than the               

4   provision of community-based services as defined in section 3,              

5   and if the state has declined to exercise its first right to                

6   repurchase the property under section 5, the Macomb-Oakland                 

7   regional center shall pay to the state both of the following                

8   amounts:                                                                    

9       (a) An amount equal to the fair market value of the property                

10  according to an appraisal based on its highest and best use at              

11  the time it was sold to the Macomb-Oakland regional center by the           

12  state, less the sum of the following:                                       

13                                                                               (i) The price the Macomb-Oakland regional center paid to the                        

14  state for the property.                                                     

15      (ii) Any amount expended by the Macomb-Oakland regional                      

16  center for new construction on the property.                                

17      (b) An amount equal to 50% of the price paid by the                         

18  subsequent purchaser to the Macomb-Oakland regional center for              

19  the property, less the fair market value of the property                    

20  according to an appraisal based on its highest and best use at              

21  the time it was sold to the Macomb-Oakland regional center by the           

22  state.

23  (2) The state shall not reserve the mineral rights to the                   

24  property conveyed under this act.  However, the conveyance                  

25  authorized under this act shall provide that if the purchaser or            

26  any subsequent grantee develops any minerals found on, within, or           

27  under the conveyed property, the purchaser or any grantee shall             

1   pay 1/2 of that revenue to the state, for deposit in the state              

2   general fund.