June 19, 2019, Introduced by Senator MCBROOM and referred to the Committee on Appropriations.
A bill to authorize the department of technology, management,
and budget to convey state-owned property in Baraga County; to
prescribe conditions for the conveyance; 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 conveyance.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. As used in this act:
(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.
Sec. 2. (1) The department of technology, management, and
budget, on behalf of this state, may convey by quitclaim deed all
or portions of real property owned by this state that is under the
jurisdiction of the department of military and veterans affairs.
(2) The real property that may be conveyed under this act is
described as follows:
Property located in the Village of Baraga, Baraga County, Michigan,
described as the North 700 feet of Government Lot 3, Section 33,
T51N, R33W, lying between the D.S.S. & A. Railroad and US 41-A.
(3) The description of the property in subsection (2) is
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 shall
not convey property under this act unless the conveyance and the
terms of the conveyance have been approved by the state
Sec. 3. (1) The department of technology, management, and
budget may take the necessary steps to convey real property
described in section 2 using either of the following means:
(a) A 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) Selling the property for less than fair market value to
the highest bidder if a publicly disclosed, competitive method of
sale as provided in subdivision (a) has been unsuccessful in
bringing an offer to purchase the property for fair market value
after being held open for 6 months or longer.
(2) 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.
Sec. 4. (1) A deed authorized by this act must be approved as
to legal form by the department of attorney general.
(2) Real property conveyed under this act includes all
surplus, salvage, and personal property or equipment remaining on
the property on the date of the conveyance.
(3) This state shall not reserve oil, gas, or mineral rights
to property conveyed under this act. 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.
(4) A conveyance under this act 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
(5) If property conveyed under this act 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.
(6) If property conveyed under this act is used in a manner
that violates any of the restrictions imposed under subsection (3),
(4), or (5), 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 may be
brought and maintained by the attorney general on behalf of this
(7) If this state reenters and repossesses property under
subsection (6), 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.
Sec. 5. (1) The department of military and veterans affairs is
responsible for all expenses of maintaining the property to be
conveyed under this act until the time of conveyance.
(2) The department of technology, management, and budget may
require a grantee of property conveyed under this act to record the
instrument of conveyance with the appropriate register of deeds and
provide the department of technology, management, and budget with a
recorded copy of the recorded instrument.
(3) 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.