BillCam

SB-1118, As Passed Senate, August 15, 2018

SUBSTITUTE FOR

SENATE BILL NO. 1118

A bill to authorize the department of technology, management,

and budget to convey or transfer state-owned property in Muskegon

and Tuscola Counties; to prescribe conditions for the conveyances;

to provide for the powers and duties of certain state departments

in regard to the property; and to provide for the 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

state-owned property now under the jurisdiction of the department

of corrections located in Muskegon County. The property to be

conveyed under this subsection is described as follows:

Parcels of land situated in the City of Muskegon, Muskegon County,

State of Michigan, and described as follows to-wit:

PARCEL 2:

Part of the South 1/2 of Section 35, T10N-R16W, City of Muskegon,

Muskegon County, Michigan and more fully described as: Beginning at

the South 1/4 corner of Section 35, Town 10 North, Range 16 West,

said point also being the Southeast corner of Lot 69 of the

recorded plat of "Port City Industrial Center No. 6" as recorded in

Liber 22, pages 5-8, Muskegon County records; thence South

8956'51" West, along the South line of said Lot 69, 633.77 feet to

the Southwest Corner of said Lot 69; thence North 0040'22" East

890.06 feet to the Northwest Corner of said Lot; thence South

8956'00" East 632.90 feet to the Northwest Corner of Lot 68 of

said plat; thence South 0037'04" West 100.00 feet; thence South

8956'00" East 1289.87 feet to the East line of Lot 67 of said

plat; thence, along the East line of said Lot 67 the following

three (3) courses; along a 303.18 foot curve to the right with a

radius of 642.00 feet and a chord bearing and distance of South

2250'42" West 300.37 feet; thence on a 371.00 foot curve to the

left with a radius of 303.00 feet and a chord bearing and distance

of South 0133'47" West 348.26 feet; thence South 3311'07" East

192.07 feet to the Southeast Corner of Lot 67 of said plat; thence

South 8955'56" West, along the South line of Lots 67 and 68 of

said plat, 1277.39 feet to the Point of Beginning. Parcel contains

34.49 acres of land, more or less.

PARCEL 3A:

Part of the Northwest of the Northeast of Section 2, Town 9

North, Range 16 West, City of Muskegon, Muskegon County, Michigan,

described as: beginning at the Northeast corner of the Northwest

of the Northeast of Section 2; thence South 2 degrees 39 minutes

West, 1133.35 feet along the East 1/8th line of said Section 2;

thence North 70 degrees 46 minutes West, 1378.4 feet along the

Northerly line of land that was conveyed to Consolidated Rail

Corporation; thence North 2 degrees 01 minute East, 674.89 feet

along the North and South quarter line of said Section 2; thence

North 89 degrees 53 minutes East along the North line of said

Northwest of Northeast to the place of beginning. Parcel

contains 27.47 acres of land, more or less.

SUBJECT TO all agreements, covenants, easements, right-of-ways,

reservations and restrictions of record, if any.

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

behalf of this state, may convey property under the jurisdiction of

the department of health and human services by quitclaim deed to

the Tuscola Area Airport Authority, or by quitclaim deed or

affidavit of jurisdictional transfer as otherwise provided in this

section. The property to be conveyed under this subsection is

described as follows:

A parcel of land situated in Section 18, Town 12 North, Range 9

East, Township of Indianfields, County of Tuscola, State of

Michigan, and described as follows to-wit:

Beginning at the Southeast corner of Section 12, Town 12 North,

Range 8 East, said point also being on the centerline of State

Highway M-81; thence, along said centerline, on a 250.06 foot curve

to the left, having a radius 34379.29 feet and a chord bearing and

distance of South 8935'59" East 250.06 feet; thence, continuing on

said centerline, South 8935'59" East 566.52 feet; thence North

0158'02" West 1348.13 feet; thence South 8939'42" East 1324.28

feet to the North and South one-quarter line of said Section 18;

thence North 0154'51" West, along said North and South one-quarter

line, 1210.97 feet to the East and West one-quarter line of said

Section 18; thence South 8802'38" West, along the East and West

one-quarter line of said Section 18, 2094.39 feet to the West line

of said Section 18; thence South 0054'19" East, along the West

line of said Section 18, 2472.91 feet to the Southeast Corner of

Section 12, Town 12 North, Range 9 East and the Point of Beginning.

Parcel contains 81.32 acres of land, more or less.

This description constitutes the remainder of land in the Southwest

one-quarter of Section 18, T12N-R9E from deed Liber 156 Page 562

granted from Martha Gamble to the State of Michigan after the

recording of deed Liber 922 pages 868-870 selling land from State

of Michigan to the Tuscola County Airport Authority.

SUBJECT TO a 66 foot wide highway easement for M-81 over the

southerly 33 foot thereof.

ALSO SUBJECT TO all agreements, covenants, easements, right-of-

ways, reservations and restrictions of record, if any.

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

not convey property under subsection (1) or (2) unless the

conveyance and the terms of the conveyance have been approved by

the state administrative board.

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

(2) are approximate and, for purposes of the conveyances, are

subject to adjustment as the department of technology, management,

and budget or the attorney general considers necessary by survey or

other legal description.

(5) Surplus real property conveyed or transferred under

subsection (1) or (2) includes all surplus, salvage, and personal

property or equipment remaining on the property on the date of the

conveyance or transfer.

(6) If surplus real property is to be sold for fair market

value under subsection (1) or (2), the property must first be

appraised 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.

(7) The department of corrections, for the property described

in subsection (1), and the department of health and human services,

for the property described in subsection (2), are responsible for

all expenses of maintaining the property described in subsections

(1) and (2) until the time of conveyance or transfer.

(8) The department of attorney general shall approve as to

legal form all deeds or affidavits of jurisdictional transfer

authorized by subsection (1) or (2).

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

transfer the property described in subsection (1), with or without

consideration, through jurisdictional transfer to another state

agency. If the property described in subsection (2) is not conveyed

to the Tuscola Area Airport Authority as described in subsection

(2), the department of technology, management, and budget may

transfer that property, 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

a quitclaim deed.

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

transfer the property described in subsection (1) and, if the

property described in subsection (2) is not conveyed to the Tuscola

Area Airport Authority as described in subsection (2), may transfer

the property described in subsection (2) or portions of that

property to the Michigan land bank fast track authority established

under section 15 of the land bank fast track act, 2003 PA 258, MCL

124.765. For properties or portions of properties conveyed to the

Michigan land bank fast track authority, the Michigan land bank

fast track authority shall do both of the following:

(a) Convey the property in accordance with the land bank fast

track act, 2003 PA 258, MCL 124.751 to 124.774.

(b) Deposit the net revenue received by this state or the

Michigan land bank fast track authority from the sale of property

under this subsection into the land bank fast track fund.

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

shall offer the property described in subsection (2) for sale to

the Tuscola Area Airport Authority for $1.00. A conveyance under

this subsection must be subject to the conditions required for a

conveyance under subsection (12)(d).

(12) If the property described in subsection (2) is not

transferred to the Tuscola Area Airport Authority as described in

subsection (2), the department of technology, management, and

budget may transfer the property under subsection (9) or (10) or

take the necessary steps to convey that property using any of the

following means:

(a) Any publicly disclosed competitive method of sale,

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

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

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

local unit or units of government.

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 local units of government in which the property is

located, subject to the following conditions:

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

the property that is accepted by the department of technology,

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

into a purchase agreement within 60 days after the date of the

offer and complete the conveyance within 180 days after the date of

the offer. The department of technology, management, and budget may

extend the period to complete the conveyance as needed.

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

30 years following the conveyance, subject to restrictions imposed

under subsection (16). 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. The public use restriction

must be included in the deed.

(iii) Within 30 years after the conveyance, the unit may offer

the property for sale, in writing, to this state, which may

purchase the property at the original sale price. This state will

be provided 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) will remain in effect.

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

30 years after the date of the conveyance from this state, the

public use restrictions under subparagraphs (ii) and (iii) will

automatically terminate, subject to the restrictions imposed under

subsection (16).

(v) If the local unit of government or its 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.

(vi) If this state reenters and repossesses the property, this

state is not liable to reimburse any party for any improvements

made on the property nor to compensate any party for any part of an

unfulfilled contract or license issued for the provision of goods

or services on or for the property.

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

require the local unit of government to reimburse this state at

closing for this state's demonstrably incurred costs as were

necessary to prepare the property for conveyance.

(13) The net revenue received from the sale of property under

subsection (1) or (2) must be deposited in the state treasury and

credited to the general fund, except as provided otherwise under

subsection (10).

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

to the property conveyed under subsection (1) or (2). However, the

conveyance authorized under subsection (1) or (2) 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.

(15) 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 conveyed under

subsection (1) or (2) 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.

(16) If property conveyed under subsection (1) or (2) was used

by this state as a historical monument, memorial, burial ground,

park, or protected wildlife habitat area, it must be maintained and

protected for that purpose in perpetuity in accordance with

applicable law.

(17) If property conveyed under subsection (1) or (2) is used

for any purpose that is inconsistent with any restrictions under

subsection (11), (12), (14), (15), or (16), as applicable, this

state may reenter and repossess the property, terminating the

grantee's or successor's estate in the property. If this state

reenters and repossesses property under this subsection, 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.

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

require a grantee of a property conveyed under subsection (1) or

(2) to record the instrument of conveyance or jurisdictional

transfer with the applicable register of deeds and provide the

department with a recorded copy of the recorded instrument as a

condition of closing.

(19) 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 state-owned

properties now under the jurisdiction of the department of health

and human services located in Tuscola County. The property to be

conveyed or transferred under this subsection is described as

follows:

PARCEL 2:

DESCRIPTION: A parcel of land situated in Sections 18 and 19, Town

12 North, Range 9 East, Township of Indianfields, County of

Tuscola, State of Michigan, and described as follows to-wit:

Beginning at the Southeast Corner of Section 12, Town 12 North,

Range 8 East; said point being on the centerline of Michigan State

Highway M-81; thence, along said centerline of highway for the

following two (2) courses, along a 250.06 foot curve to the left,

having a radius of 34379.29 feet and a chord bearing and distance

of South 8935'59" East 250.06 feet; thence South 8935'59" East

566.52 feet; thence North 0158'02" West 33.03 feet to a point on

the northerly easement line of Michigan State Highway M-81; thence

South 8935'59" East 1323.35 feet to the intersection of said

northerly easement line and the North-South one-quarter line of

Section 18, T12N-R9E; thence South 0155'28" East, along said North

and South one-quarter line, 33.03 feet to the centerline of said

highway; thence, along said centerline the following two (2)

courses: thence South 8935'59" East 141.21 feet; thence on a

480.79 foot curve to the left having a radius of 2858.85 feet, with

a chord bearing and distance of North 8534'57" East 480.23 feet to

the centerline of Center Street; thence, along the centerline of

said Center Street the following two (2) courses, South 5525'18"

East 96.30 feet; thence on a 45.80 foot curve to the left having a

radius of 580.47 feet, with a chord bearing and distance of South

6018'22" East 45.79 feet to the north line of the Michigan Central

Railroad Company; thence along the north line of said railroad,

South 7052'47" West 3023.54 feet to the West line of said section

19; thence North 0112'54" West, along said west line, 1046.88 feet

to the Point of Beginning. Parcel contains 36.92 acres of land,

more or less.

SUBJECT TO the 66' wide right of way of Center Street over the

easterly 33' thereof.

ALSO SUBJECT TO a variable easement for M-81 highway as shown on

survey.

ALSO SUBJECT TO the right-of-way of Handy Road over the westerly 33

feet thereof.

ALSO SUBJECT TO all agreements, covenants, easements, right-of-

ways, reservations and restrictions of record, if any.

PARCEL 3:

DESCRIPTION: A parcel of land situated in Sections 18, 19 and 20

Town 12 North, Range 9 East, Township of Indianfields, County of

Tuscola, State of Michigan, and described as follows to-wit:

Beginning at the Southeast corner of Section 13, Town 12 North,

Range 8 East; thence South 0107'31" East 239.06 feet to the South

line of Section 19, Town 12 North, Range 9 East; thence North

8806'37" East, along the South line of said Section 19, 2131.37

feet to a traverse line along the westerly side of the Cass River;

thence, along said traverse line for the following seven (7)

courses, North 1728'36" East 2264.16 feet; thence South 8129'07"

East 477.45 feet; thence North 8952'03" East 1187.63 feet; thence

North 4409'05" East 777.64 feet; thence North 2500'34" East

536.20 feet; thence North 1421'42" West 436.72 feet; thence North

0722'58" East 247.90 feet to the end of said traverse line; thence

South 8755'11" West, parallel with the North line of said section

19, 719.89 feet; thence North 0158'18" West, parallel with the

East line of said section 19, 1202.91 feet; thence South 8755'11

West, parallel with the North line of said section 19, 397.51;

thence North 0128'17" West 714.99 feet, to the south line of the

Michigan Central Railroad; thence South 7052'47" West, along said

south line of railroad and its extension, 1107.57 feet to the North

line of said section 19 and the centerline of Center Street; thence

South 8755'11" West, along said North line, 56.55 feet; thence,

continuing along said centerline of Center street, on a 10.97 foot

curve to the right having a radius of 268.88 feet and a chord

bearing and distance of South 8905'19" West 10.97 feet to said

southerly line of said railroad; thence South 7052'47" West

3140.25 feet to the West line of said section 19; thence South

0112'54" East, along said West line, 1512.21 feet to the East one-

quarter Corner of Section 13, Town 12 North Range 8 East; thence,

continuing along said West line, South 0117'28" East 2607.34 feet

to the Point of Beginning. Parcel contains 443.13 acres of land,

more or less.

Including all land between the described traverse line and the

centerline of the Cass River.

SUBJECT to the 66 foot wide right-of-way of Center Street as shown

on survey.

ALSO SUBJECT TO the right-of-way of Handy Road over the westerly 33

feet thereof.

ALSO SUBJECT TO all agreements, covenants, easements, right-of-

ways, reservations and restrictions of record, if any.

PARCEL 5:

DESCRIPTION: A parcel of land situated in Sections 17 and 20, Town

12 North, Range 9 East, Township of Indianfields, County of

Tuscola, State of Michigan, and described as follows to-wit:

Commencing at the East one-quarter corner of Section 17, Town 12

North, Range 9 East; thence South 8806'51" West, along the East

and West one-quarter line of said Section 17, 99.90 feet to the

point of beginning of this description; thence South 8806'51"

West, along said East-West one-quarter line of said Section,

2177.27 feet to the southeasterly line of the Michigan Central

Railroad; thence, along the southeasterly line of said railroad for

the following two (2) courses: thence South 4422'03" West 1803.14

feet; thence on a 539.24 foot curve to the right with a radius of

3298.74 with a chord bearing and distance of South 4901'08" West

538.64 feet to the centerline of Chambers Road as previously

defined in an unrecorded survey by Spicer Group drawing CA-1617

dated March 26, 2007; thence, along said centerline the following

three (3) courses, on a 218.66 foot curve to the right, having a

radius of 230.00 feet and chord bearing and distance of South

0500'58" East 210.52 feet; thence South 2212'00" West 1028.69

feet; thence on a 478.05 foot curve to the left, having a radius of

327.41 feet with a chord bearing and distance of South 1937'52"

East 436.70 feet to the end of said centerline and to a traverse

line along the westerly side to the Cass River; thence, along said

traverse line for the following six (6) courses: North 4253'13"

East 492.67 feet; thence North 6036'19" East 1325.94 feet; thence

North 3142'55" East 865.51 feet; thence North 5926'32" East

572.95 feet; thence North 7923'58" East 751.00 feet; thence North

3843'38" East 1422.68 feet to the Point of Beginning. Parcel

contains 113.18 acres of land, more or less.

Including all land between the described traverse line and the

centerline of the Cass River.

SUBJECT TO the right of way for Chambers Road over the westerly 33

foot, thereof.

ALSO SUBJECT TO all agreements, covenants, easements, right-of-

ways, reservations and restrictions of record, if any.

PARCEL 6:

DESCRIPTION: A parcel of land situated in Section 17, Town 12

North, Range 9 East, Township of Indianfields, County of Tuscola,

State of Michigan, and described as follows to-wit:

Commencing at the West one quarter corner of Section 17, Town 12

North, Range 9 East; thence North 8757'00" East, along the east

and west one-quarter line, 2623.97 feet to the Center one-quarter

corner of said Section 17, Town 12 North, Range 9 East; thence

North 8806'51" East, along the East and West one quarter line of

said section 17, 115.46 feet to the centerline of the 66 foot wide

easement for State Highway M-81 and the point of beginning of this

description: thence, along said centerline for the following two

(2) courses; thence South 4423'17" West 1720.92 feet; thence on a

438.90 foot curve to the right with a radius of 2866.60 feet with a

chord bearing and distance of South 4846'28" West 438.47 feet to

the centerline of Chambers Road; thence South 3650'22" East, along

said centerline, 44.70 feet to the northwesterly line of the

Michigan Central Railroad Company; thence, along said northwesterly

line for the following two (2) courses: thence on a 523.10 foot

curve to the left, having a radius of 3198.74 feet with a chord

bearing and distance of North 4901'14" East 522.52 feet; thence

North 4422'01" East 1698.70 feet to the East and West one-quarter

line of said Section; thence South 8806'51" West, along said one-

quarter line, 75.54 feet to the point of beginning. Intending to

describe the area bounded by the northwesterly line of the Michigan

Central Railroad on the south, the centerline of State Highway M-81

on the west, the centerline of Chambers Road on the south and the

East and West one-quarter line of section 17, T12N-R9E on the

north. Parcel contains 2.59 acres of land, more or less.

SUBJECT TO a 66 foot wide easement for state Highway M-81 over the

northerly 33 foot, thereof.

ALSO SUBJECT TO the right of way of Chambers Road over the westerly

33 foot, thereof.

ALSO SUBJECT TO all agreements, covenants, easements, right-of-

ways, reservations and restrictions of record, if any.

PARCEL 7:

DESCRIPTION: A parcel of land situated in Sections 17 and 18, Town

12 North, Range 9 East, Township of Indianfields, County of

Tuscola, State of Michigan, and described as follows to-wit:

Commencing at the Southeast corner of Section 18, Town 12 North,

Range 9 East; thence North 0201'40" West, along the East line of

said section 18, 640.60 feet to the northerly line of the Michigan

Central Railroad Company and the point of beginning of this

description; thence, along said northerly line the following (2)

courses North 7052'47" East 332.37 feet; thence on a 958.81 foot

curve to the left with a radius of 3198.74 feet and a chord bearing

and distance of North 6217'34" East 955.23 feet to the centerline

of Chambers Road; thence North 3650'22" West, along said

centerline, 44.70 feet to the centerline of a 66 foot wide easement

for State highway M-81; thence along said M-81 centerline the

following three (3) courses: thence on a 887.12 foot curve to the

right with a radius of 2866.60 feet and a chord bearing and

distance of South 6201'34" West 883.58 feet; thence South

7053'30" West 2009.12 feet; thence on a 492.62 foot curve to the

right having a radius of 2858.88 feet and a chord bearing and

distance of South 7549'41" West 492.01 feet to the centerline of

Center Street; thence, along said centerline of Center Street the

following (2) courses; thence South 5525'18" East 96.30 feet;

thence on a 45.85 foot curve to the left with a radius of 268.83

feet and a chord bearing and distance of South 6018'22" East 45.79

feet to the northerly line of said railroad; thence along said

northerly line the following three (3) courses: thence North

7052'47" East 314.39 feet; thence North 0023'42" West 21.12 feet;

thence North 7052'47" East 1700.72 feet to the Point of Beginning.

Parcel contains 3.99 acres of land, more or less.

SUBJECT TO a 66 foot wide easement of State Highway M-81 over the

northerly 33 foot, thereof.

SUBJECT to the 66 foot wide right-of-way of Center Street as shown

on survey.

ALSO SUBJECT TO a 66 foot wide right of way for Chambers Road over

the easterly 33 foot, thereof.

ALSO SUBJECT TO all agreements, covenants, easements, right-of-

ways, reservations and restrictions of record, if any.

(20) The property legally described in subsection (19) was

described generally in 2018 PA 334 as the "CARO PROPERTY". If the

department of technology, management, and budget conveys or

transfers the property under subsection (19), the department shall

do so as required by 2018 PA 334.

(21) As used in this section:

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

the real property would bring if offered for sale on the open

market, allowing a reasonable time to find a purchaser that would

buy with knowledge of the property's possible uses.

(b) "Local unit of government" means the township, village,

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

community college district in which the property is located.

property less reimbursement for any costs to the department of

technology, management, and budget or to the Michigan land bank

fast track authority 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 costs

related to the conveyance of the property.

(d) "Public use" means, subject to subdivision (e), actual use

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.

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

enterprise or any use that is closed to the public.