SB-0881, As Passed Senate, September 21, 2016

SUBSTITUTE FOR

SENATE BILL NO. 881

A bill to authorize the department of technology, management,

and budget to convey parcels of state-owned property in Baraga,

Bay, Calhoun, Gratiot, Lenawee, Manistee, and Van Buren Counties;

to prescribe conditions for the conveyances; to provide for powers

and duties of state departments, agencies, and officers 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 department of technology, management, and

budget, on behalf of this state, may convey by quitclaim deed or

transfer by affidavit of jurisdictional transfer all or portions of

real property owned by this state that, on the effective date of

this act, is under the jurisdiction of the department of state

police. The real property that may be conveyed or transferred under

this subsection is described as follows:

BARAGA COUNTY-L'ANSE POST

Parcel 1

Starting at the Iron Pin marking the S.E. Corner of the N.W. ¼ of

the N.W. ¼ of Section 9, T 50 N, R 33 W, thence N 0° 18' W 883.1

feet to a point on the tangent of U.S. 41, thence S 44° 18' 30" E

750 feet, thence N 44° 18' 30" E 75 feet to the point of beginning,

thence N 44° 18' 30" E 125 feet, thence S 44° 18' 30" E 75 feet,

thence S 44° 18' 30" W 125 feet, thence N 44° 18' 30" W 75 feet to

the point of beginning, containing approximately 0.22 acres more or

less.

Parcel 2

A parcel of land located in the Village of L'Anse, Michigan, Part

of the S½ of NE¼ of the NW¼, Section 9, T50N, R33W. Described as

follows: Commencing at the SW corner of said NE¼ of the NW¼, Sec.

9; thence N0°-18'W a distance of 883.1 ft; thence S 44°-18'30"E a

distance of 750.0 ft; thence N 45°-41'-30" E a distance of 200.0

ft; thence S 44°-19'E a distance of 15.0 ft. to the P.O.B. of

described parcel; thence N 45°-41'E a distance of 48.5 ft; thence S

44°-19'E a distance of 17.4 ft; thence S89°-19'E a distance of 18.0

ft; thence S 0°-18'W a distance of 42.0 ft; thence S 45̊-41'W a

distance of 31.7 ft; thence N 44°-19'W a distance of 60.0 ft. to

the P.O.B. Described parcel contains 0.07 acres more or less.

BAY COUNTY-BAY CITY POST

Lots 1, 2, 3, 4, 23, 24, 25, 26, Block 1, Lennox Park, Bangor

Township, Bay County, Michigan.

CALHOUN COUNTY-PARCEL A

Lot Number Two Hundred Twenty-Seven (#227) of Greenlawn Addition,

according to the recorded plat thereof. Battle Creek Township,

Calhoun County, Michigan.

CALHOUN COUNTY-PARCEL B-BATTLE CREEK POST PARKING LOT

Commencing on the West line of the Plat of Greenlawn in Section 14,

Town 2 South, Range 8 West, and on North line of U. S. 12 Highway,

thence North along the West line of said Greenlawn 247 feet, thence

Westerly parallel with the North line of Highway U. S. 12, 50 feet,

thence South parallel with West line of Greenlawn 247 feet to the

said North line of U. S. 12 Highway, thence Easterly along same 50

feet to the place of beginning. Battle Creek Township, Calhoun

County, Michigan.

Subject to right of way in favor of State Highway Commissioner of

the State of Michigan as appears in Liber 374 at Page 384.

GRATIOT COUNTY-ITHACA POST

The South Ten (10) Acres of the West Twenty-five (25) Acres of the

Northwest quarter (NW 1/4) of the Northwest quarter (NW 1/4) of

Section Thirty (30), Town Eleven (11) North, Range Two (2) West,

Emerson Township, Gratiot County, Michigan.

LENAWEE COUNTY-PARCEL A-ADRIAN POST

A parcel of land in the S.E. 1/4 of Section 26, T6S, R3E, Lenawee

County, Michigan and more specifically described as: Commencing at

the E 1/4 corner of said Section 26; thence S00°54'25"E 1565.14

feet on the east line of said Section 26; thence West 46.29 feet,

to the westerly right-of-way of N. Adrian Highway (M-52) and the

point of beginning of this description; thence WEST 220.68 feet;

thence SOUTH 360.00 feet; thence EAST 183.01 feet, to the westerly

right-of-way of N. Adrian Highway; thence 336.36 feet, along the

westerly right-of-way of N. Adrian Highway on a curve to the left

with a central angle of 13°56'28", a radius of 1382.39 feet and a

long chord bearing and distance of N06°29'09"E 335.53 feet; thence

N00°29'05"W 26.62 feet, on the westerly right-of-way of said

highway to the point of beginning. The above described parcel

contains 1.7331 acres, more or less.

Excepted from the preceding parcel is the following land:

A parcel of land in the SE 1/4 of section 26, T6S, R3E, City of

Adrian, Lenawee County, Michigan, more particularly described as

commencing at the E 1/4 corner of said section 26; thence

S00°54'25"E, along the east line of said section 26, a distance of

1564.41 feet; thence S89°42'25"W 266.76 feet; thence S00°02'42"W

254.76 feet; thence N89°21'41"E 35.55 feet, to the point of

beginning of this description; thence continuing N89°21'41"E 80.00

feet; thence S00°38'19"E 51.00 feet; thence S89°21'41"W 80.00 feet;

thence N00°38'19"W 51.00 feet, to the point of beginning.

And the parcel is subject to the following access easement:

Commencing at the E 1/4 corner of section 26, T6S, R3E, City of

Adrian, Lenawee County, Michigan; thence S00°54'25"E 1564.41 feet,

on the east line of said section 26; thence S89°42'25"W 46.04 feet,

to the westerly right of way line of Michigan highway M-52; thence

S00°29'05"E 26.62 feet, on said right of way; thence 227.88 feet,

on the arc of a curve to the right with a central angle of

09°26'41", a radius of 1382.39 feet, and a long chord bearing and

distance of S04°14'15"W 227.62 feet, on said right of way to the

point of beginning of this easement description; thence S89°21'41"W

88.79 feet; thence S00°38'19"E 51.00 feet; thence N89°21'41"E 79.17

feet, to said westerly M-52 right of way; thence 51.90 feet, on the

arc of a curve to the left with a central angle of 02°09'04", a

radius of 1382.39 feet and a long chord bearing and distance of

N10°02'08"E 51.90 feet, on said right of way to the point of

beginning.

MANISTEE COUNTY-MANISTEE POST

Commencing on the Westerly right-of-way line of Highway U.S. 31 at

a point 27 feet South of the Southeast corner of Lot "I" of S. C.

Thompson's Addition to the City of Manistee, Michigan, thence South

82° 33' West 174.2 feet to the Westerly line of Lot "K", thence

North 28° West along the Westerly line of Lot "K" of S. C.

Thompson's Addition 15.7 feet to the Southwest corner of Lot "I"

and the Northwest corner of Lot "K" of S. C. Thompson's Addition,

thence South 78° 30' West 44 feet, thence North 36°West 97.5 feet

to the Northwesterly corner of the description, thence North 82°33'

East 272 feet to an intersection with the Westerly right-of-way

line of Highway U. S. 31, thence south 6° 22' East 100 feet along

said Westerly right-of-way line to the place of beginning: said

parcel being a part of Lots "H" and "K", and all of Lot "I", of S.

C. Thompson's Addition to the City of Manistee, Manistee County,

Michigan.

VAN BUREN COUNTY-SOUTH HAVEN POST PARKING LOT

Lots 2 and 3 of Block 1, Ravinia Park Addition to the City of South

Haven and also that part of Lot 35 of the Merrill Addition to the

City of South Haven that is described as beginning at a point on

the South Line of Lot 35, Assessor's Plat of the Merrill Addition

to South Haven that is 41 feet West of the Southeast corner of Lot

35; thence North 22°46'10" East 64.99 feet to the Northerly line of

Lot 35; thence Southwesterly 79.70 feet, more or less, to the West

corner of Lot 35; thence East along the South line of Lot 35 a

distance of 77.00 feet to the point of beginning.

(2) The department of technology, management, and budget, on

behalf of this state, shall convey the following described property

by quitclaim deed to the village of Blissfield for the

consideration of $1.00:

Premises situated in the Village of Blissfield in the County of

Lenawee, in the State of Michigan, to-wit: part of Lot Number Three

(3) of Feeback's Addition to the Village of Blissfield as per

recorded Plat thereof, described as follows: beginning at the

Southeast corner of said Lot Number Three (3) thence Northerly

along the Easterly line of said Lot Number Three (3) fifty (50)

feet; thence westerly at right angles eighty (80) feet; thence

southerly at right angles fifty (50) feet; thence easterly at right

angles eighty (80) feet to the place of beginning.

(3) The descriptions of the property in subsections (1) and

(2) are approximate and, for purposes of a conveyance under this

act, may be adjusted as the department of technology, management,

and budget or the department of attorney general considers

necessary because of a survey or another legal description.

(4) The department of technology, management, and budget may

transfer property described in subsection (1) with or without

consideration through jurisdictional transfer to another state

agency. If property is transferred under this subsection, the

transfer must be made by an affidavit of jurisdictional transfer in

recordable form rather than by quitclaim deed.

(5) The department of technology, management, and budget may

take the necessary steps to convey real property described in

subsection (1) using any of the following means:

(a) Any publicly disclosed competitive method of sale,

selected to realize the fair market value to this state, as

determined by the department of technology, management, and budget.

(b) Offering the property for sale for fair market value to 1

or more units of local government in which the property is located.

property if the other real property is determined by the department

of technology, management, and budget to be of reasonably equal

value to this state.

(d) Offering the property for sale for less than fair market

value to the units of local government in which the property is

located, subject to the following conditions:

(i) If a unit of local government makes an offer to purchase

the property that is accepted by the department of technology,

management, and budget, the unit of local government shall enter

into a purchase agreement within 60 days after making the offer and

complete the conveyance within 180 days after making the offer. The

department of technology, management, and budget may extend the

time to complete the conveyance as needed.

(ii) The property must be used exclusively for public use for

30 years after the conveyance, subject to subsection (13). If a

fee, term, or condition is imposed on members of the public for use

of the property, or if such a fee, term, or condition is waived,

all members of the public must be subject to the same fees, terms,

conditions, and waivers. The public use restriction must be

included in the deed.

(iii) If the unit of local government intends to convey the

property within 30 years after the conveyance, the unit of local

government must first offer the property for sale, in writing, to

this state, which may purchase the property at the original sale

price. The unit of local government shall provide this state 120

days to consider reacquiring the property. If this state agrees to

reacquire the property, this state is not liable to any person for

improvements to or liens placed on the property. If this state

declines to reacquire the property, the public use restrictions

described in subparagraph (ii) remain in effect.

(iv) If the unit of local government retains the property for

30 years after the conveyance, the public use restrictions under

subparagraphs (ii) and (iii) automatically terminate, except as

provided in subsection (13).

(v) The department of technology, management, and budget may

require the unit of local government to reimburse this state at

closing for costs demonstrably incurred by this state that were

necessary to prepare the property for conveyance.

(e) Transferring the property to the land bank fast track

authority created by section 15 of the land bank fast track act,

2003 PA 258, MCL 124.765.

(6) The department of technology, management, and budget shall

not convey property under this section unless the conveyance and

the terms of the conveyance have been approved by the state

administrative board.

(7) If real property is to be sold for fair market value under

this section, the fair market value must be determined by an

independent fee appraisal prepared for the department of

technology, management, and budget, or by an appraiser who is an

employee or contractor of this state.

(8) The state agency with jurisdiction over real property

conveyed or transferred under this section is responsible for all

expenses of maintaining the property until the time of conveyance

or transfer.

(9) A deed or affidavit of jurisdictional transfer authorized

by this section must be approved as to legal form by the department

of attorney general.

(10) Real property conveyed or transferred under this section

includes all surplus, salvage, and personal property or equipment

remaining on the property on the date of the conveyance or

transfer.

(11) This state shall not reserve oil, gas, or mineral rights

to property conveyed under this section. However, the conveyance

authorized under this act must provide that, if the grantee or any

successor develops any oil, gas, or minerals found on, within, or

under the conveyed property, the grantee or any successor must pay

this state 1/2 of the gross revenue generated from the development

of the oil, gas, or minerals. A payment under this subsection must

be deposited in the general fund.

(12) A conveyance under this section must reserve to this

state 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 this 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.

(13) If property conveyed under this section was used by this

state as a historical monument, memorial, burial ground, park, or

protected wildlife habitat area, the grantee or any successor shall

maintain and protect the property for that purpose in perpetuity in

accordance with applicable law.

(14) The department of technology, management, and budget

shall deposit the net revenue received from the sale of property

under this section in the state treasury. The state treasurer shall

credit the money deposited to the general fund.

(15) If property conveyed under this section is used in a

manner that violates any of the restrictions imposed under

subsection (5)(d), (11), (12), or (13), this state may reenter and

take the property, terminating the grantee's or any successor's

estate in the property. An action to regain possession of the

property under this section may be brought and maintained by the

attorney general on behalf of this state.

(16) If this state reenters and repossesses property under

subsection (15), this state is not liable to reimburse any person

for any improvements made on the property or to compensate any

person for any part of an unfulfilled contract or license issued to

provide goods or services on or for the property.

(17) The department of technology, management, and budget may

require a grantee of property conveyed under this section to record

the instrument of conveyance or jurisdictional transfer with the

appropriate register of deeds and provide the department of

technology, management, and budget with a recorded copy of the

recorded instrument.

(18) As used in this section:

(a) "Fair market value" means the highest estimated price that

the property will bring if offered for sale on the open market,

allowing a reasonable time to find a purchaser who would buy with

knowledge of the property's possible uses.

(b) "Net revenue" means the proceeds from the sale of the

property less reimbursement for any costs to the department of

technology, management, and budget associated with the sale,

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 costs

related to the conveyance.

of the property by members of the public or actual use by the unit

of local government for any of the following:

(i) Publicly owned and operated correctional facilities.

(ii) Law enforcement purposes.

(iii) Emergency management response purposes.

(iv) Public educational use.

(v) Public transportation.

(vi) Public parks and recreational areas.

(vii) Public health uses.

(viii) Wildlife conservation or restoration.

(d) "Public use" does not include use by a for-profit

enterprise or any use that is closed to the public.

(e) "Unit of local government" means a township, village,

city, county, school district, intermediate school district, or

community college district.