HOUSE BILL NO. 6154

A bill to require the department of technology, management, and budget to convey a parcel of state-owned property in Baraga County; to prescribe conditions for the conveyance; to provide for powers and duties of 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 department of technology, management, and budget, on behalf of this state, shall convey the property described in this section, previously authorized to be sold under 2016 PA 512, to the Upper Peninsula Human Trafficking Task Force for $1.00, subject to the restrictions under section 3. The property to be conveyed under this act is described as:

Parcel 1

Starting at the Iron Pin marking the S.E. Corner of the N.W. 1/4 of the N.W. 1/4 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 S1/2 of NE1/4 of the NW1/4, Section 9, T50N, R33W. Described as follows: Commencing at the SW corner of said NE1/4 of the NW1/4, 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 1 0.07 acres more or less.

Sec. 2. The description of the property in section 1 is approximate and for purposes of the conveyance is subject to adjustments as the department of technology, management, and budget or the attorney general considers necessary by survey or other legal description.

Sec. 3. The conveyance of the property described in this act must provide for all of the following:

(a) The property must 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 must be subject to the same fees, terms, conditions, and waivers. On termination of the property's exclusive use for public purposes, this state may reenter and repossess the property, terminating the grantee's estate in the property.

(b) If the grantee or successor disputes this state's exercise of its right of reentry and fails to promptly deliver possession of the property to this state, the attorney general, on behalf of this state, may bring an action to quiet title to, and regain possession of, the property.

(c) If this state reenters and repossesses the property, the state is not liable to reimburse any party for any improvements made on the property.

(d) The grantee or successor shall reimburse this state for requested costs necessary to prepare the property for conveyance.

(e) If the grantee or successor intends to convey the property within 30 years after the conveyance from this state, the grantee or successor 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 of the property at the original sale price within 180 days after the notice. If this state waives its first refusal right, the grantee shall pay to this state 100% of the difference between the sale price of the conveyance from this state and the sale price of the grantee's subsequent sale to a third party.

Sec. 4. The conveyance of the property under this act must include all surplus, salvage, and scrap property or equipment remaining on the property on the date of the conveyance.

Sec. 5. The conveyance under this act must be by quitclaim deed, as approved by the department of attorney general.

Sec. 6. This state shall not reserve oil, gas, or mineral rights to the property conveyed under this act. However, a conveyance authorized under this act must 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 this state 1/2 of the gross revenue generated from the development of the oil, gas, or minerals. This payment must be deposited in the general fund of this state.

Sec. 7. This 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 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.

Sec. 8. The net revenue received from the sale of property under this act must 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 associated with the sale of the 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 the conveyance of the property.