SENATE BILL NO. 658

November 13, 2019, Introduced by Senator OUTMAN and referred to the Committee on Appropriations.

A bill to authorize the department of technology, management, and budget to convey state-owned property in Mecosta 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) "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 the sale; environmental remediation; legal fees; and any litigation costs related to the conveyance.

(b) "Public use" means, subject to subdivision (c), actual use of the property by members of the public or actual use by the city of Big Rapids 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.

(c) Public use does not include use by a for-profit enterprise or any use that is closed to the public.

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 described in subsection (2) that is owned by this state and under the jurisdiction of the department of natural resources.

(2) The real property that may be conveyed under this act is described as follows:

(a) Property described as follows:
DEPOT PARCEL UNENCUMBERED
That part of the City of Big Rapids, Mecosta County, Michigan, being a part of the Southeast quarter of Section 11, T15N, R10W, described as beginning at a point on the Southerly line of Maple Street 293.5 feet Northeasterly of the Easterly line of South Third Avenue; thence run Northeasterly along the said Southerly line of Maple Street to the Westerly line of the Michigan Department of Natural Resources Fred Meijer White Pine Trail State Park right of way, being a distance of 20.00 feet Southwesterly at a right angle from the centerline of the main track of the former railroad right of way; thence run Southeasterly parallel and 20.00 feet Westerly of the centerline of the main track of the former railroad right of way a distance of 200.00 feet; thence run Southwesterly at a right angle to the Easterly line of Vacated Fourth Avenue a distance of 130.50 feet more or less to the said Easterly line of Vacated Fourth Avenue; thence run Northwesterly along the said Easterly line of Vacated Fourth Avenue to the Northeasterly corner of C.D. Stimson and Co.'s Addition to the City of Big Rapids; thence run Northeasterly along the Northwesterly line of C.D. Stimson and Co.'s said plat extended, a distance of 0.50 feet; thence run Northwesterly parallel and 293.50 feet Easterly of the Easterly line of South Third Avenue, a distance of 150.00 feet to the South line of Maple Street and the point of beginning. Contains 0.6 acres more or less.
REMAINDER ENCUMBERED
That part of the City of Big Rapids, Mecosta County, Michigan, being a part of the Southeast quarter of Section 11, T15N, R10W, described as commencing at the intersection of the North line of Colburn Avenue and the Westerly line of the Michigan Department of Natural Resources Fred Meijer White Pine Trail State Park right-of-way, being a distance of 20.00 feet Southwesterly at a right angle from the centerline of the main track of the former railroad right-of-way; thence run Northwesterly parallel and 20.00 feet Westerly of the centerline of the main track of the former railroad right-of-way, 205.13 feet to a point 20.00 feet Southwesterly of an abandoned railroad spur, being the point of beginning of the following described parcel of land: thence run Northwesterly parallel and 20.00 feet Southwesterly of said abandoned railroad spur to the Easterly line of Vacated South Fourth Avenue; thence run Northwesterly along the Easterly line of Vacated South Fourth Avenue to a point 50 feet Southeasterly of the Northeast corner of C.D. Stimson and Co.'s Addition to the City of Big Rapids; thence run Northeasterly at a right angle to the Easterly line of Vacated Fourth Avenue a distance of 130.50 feet more or less to the Westerly line of the Michigan Department of Natural Resources Fred Meijer White Pine Trail State Park right-of-way, being a distance of 20.00 feet Southwesterly at a right angle from the centerline of the main track of the former railroad right-of-way; thence run Southeasterly parallel and 20.00 feet Westerly of the centerline of the main track of the former railroad right-of-way to the point of beginning. Also Lots 25, 26 and 27 of C. D. Stimson and Co.'s Addition to the City of Big Rapids, together with the 20.00 feet of Vacated South Fourth Avenue lying adjacent thereto. Contains 1.9 acres more or less.

(b) Property described as follows:
PARENT PARCEL
That part of the DNR Railroad property, formerly Penn Central, known as the G.R. & I. Branch, as located in the City of Big Rapids, described as commencing at the Southeast corner of Section 11, T15N, R10W, thence run S8903'11"W along the South line of said Section 11 a distance of 1534.17, thence run N3120'09"W a distance of 37.91 feet to the intersection of the North line of Coburn Avenue with a line 20 feet Southwesterly of and parallel with the previous Railroad main line, said point being the point of beginning of the following described parcel of land: thence run N3120'09"W along the said line a distance of 205.13 feet; thence run Northwesterly along a 468.83 feet radius curve to the left being 20 feet Southerly of and parallel with a previous Railroad spur line a distance of 358.47 feet to the Northeasterly line of Vacated Fourth Avenue, the chord bears N5314'25"W a distance of 349.80 feet; thence run N3120'07"W along the said line a distance of 15.12 feet to the Southeasterly line of Lot 25 of C.D.Stimson & Co's Addition to the City of Big Rapids and it's Northeasterly extension; thence run S5830'38"W along the said line a distance of 157.51 feet to the Northeasterly line of an alley; thence run N3124'33"W along the said line a distance of 150.00 feet to the Northwesterly line of Lot 27 of said Addition; thence run N5830'38"E along the said line and it's Northeasterly extension a distance of 157.70 feet to the said Northeasterly line of Vacated Fourth Avenue; thence run N3120'07"W along the said line a distance of 250.00 feet to the Northwesterly line of C.D.Stimson's & Co's Addition and it's Northeasterly extension; thence run N3104'38"W a distance of 150.00 feet to a point 293.50 feet Northeasterly from the intersection of the Southeasterly line of Maple Street with the Northeasterly line of Third Avenue; thence run N5908'45"E along the said line a distance of 224.82 feet (recorded as 225.5 feet) to the Southwesterly line of Roben's Addition to the City of Big Rapids; thence run S3120'09"E along the said line and it's Southeasterly extension a distance of 1147.98 feet to the said North line of Coburn Avenue; thence run S8846'07"W along the said line a distance of 109.81 feet to the point of beginning. Contains 4.98 acres of land more or less.
DEPOT PARCEL
That part of the DNR Railroad property, formerly Penn Central, known as the G.R. & I. Branch, as located in the City of Big Rapids, described as commencing at the Southeast corner of Section 11, T15N, R10W, thence run S8903'11"W along the South line of said Section 11 a distance of 1534.17, thence run N3120'09"W along a line being 20 feet Southwesterly of and parallel with the previous Railroad main line a distance of 931.16 feet to the point of beginning of the following described parcel of land: thence run S5908'35"W a distance of 130.50 feet to the Northeasterly line of Vacated Fourth Avenue; thence run N3120'07"W along the said line a distance of 50.00 feet to the Northwesterly line of C.D.Stimson's & Co's Addition and it's Northeasterly extension; thence run N3104'38"W a distance of 150.00 feet to a point 293.50 feet Northeasterly from the intersection of the Southeasterly line of Maple Street with the Northeasterly line of Third Avenue; thence run N5908'43"E along the said line a distance of 139.82 feet to a line 10 feet Southwesterly of and parallel with the said Railroad main line; thence run S3120'09"W along the said line a distance of 200.00 feet; thence run S5908'35"W a distance of 10.00 feet to the point of beginning. Contains 0.64 acres of land more or less.
TRAIL PARCEL
That part of the DNR Railroad property, formerly Penn Central, known as the G.R. & I. Branch, as located in the City of Big Rapids, described as commencing at the Southeast corner of Section 11, T15N, R10W, thence run S8903'11"W along the South line of said Section 11 a distance of 1534.17, thence run N3120'09"W a distance of 37.91 feet to the intersection of the North line of Coburn Avenue with a line 20 feet Southwesterly of and parallel with the previous Railroad main line, said point being the point of beginning of the following described parcel of land: thence run N3120'09"W along the said line a distance of 893.70 feet; thence run N5908'35"E a distance of 10.00 feet to a line 10 Southwesterly of and parallel with the said Railroad main line; thence run N3120'09"W along the said line a distance of 200.00 feet to the Southeasterly line of Maple Street; thence run N5908'43"E along the said line a distance of 85.00 feet to the Southwesterly line of Roben's Addition to the City of Big Rapids; thence run S3120'09"E along the said line and it's Southeasterly extension a distance of 1147.98 feet to the North line of Coburn Avenue; thence run S8846'07"W along the said line a distance of 109.81 feet to the point of beginning. Contains 2.40 acres of land more or less.
REMAINDER PARCEL
That part of the DNR Railroad property, formerly Penn Central, known as the G.R. & I. Branch, as located in the City of Big Rapids, described as commencing at the Southeast corner of Section 11, T15N, R10W, thence run S8903'11"W along the South line of said Section 11 a distance of 1534.17, thence run N3120'09"W a distance of 37.91 feet to the intersection of the North line of Coburn Avenue with a line 20 feet Southwesterly of and parallel with the previous Railroad main line; thence run N3120'09"W along the said line a distance of 205.13 feet to the point being the point of beginning of the following described parcel of land: thence run Northwesterly along a 468.83 feet radius curve to the left being 20 feet Southerly of and parallel with a previous Railroad spur line a distance of 358.47 feet to the Northeasterly line of Vacated Fourth Avenue, the chord bears N5314'25"W a distance of 349.80 feet; thence run N3120'07"W along the said line a distance of 15.12 feet to the Southeasterly line of Lot 25 of C.D.Stimson & Co's Addition to the City of Big Rapids and it's Northeasterly extension thereof; thence run S5830'38"W along the said line a distance of 157.51 feet to the Northeasterly line of an alley; thence run N3124'33"W along the said line a distance of 150.00 feet to the Northwesterly line of Lot 27 of said Addition; thence run N5830'38"E along the said line and it's Northeasterly extension a distance of 157.70 feet to the said Northeasterly line of Vacated Fourth Avenue; thence run N3120'07"W along the said line a distance of 200.00 feet; thence run N5908'35"E a distance of 130.50 feet to a line 20 feet Southwesterly of and parallel with the said Railroad main line; thence run S3120'09"E along the said line a distance of 688.57 feet to point of beginning. Contains 1.94 acres of land more or less.
30' INGRESS-EGRESS EASEMENT
That part of the DNR Railroad property, formerly Penn Central, known as the G.R. & I. Branch, as located in the City of Big Rapids, described as commencing at the Southeast corner of Section 11, T15N, R10W, thence run S8903'11"W along the South line of said Section 11 a distance of 1534.17, thence run N3120'09"W along a line being 20 feet Southwesterly of and parallel with the previous Railroad main line a distance of 931.16 feet; thence run S5908'35"W a distance of 74.00 feet to the point of beginning of the following described Ingress and Egress Easement: thence run S5908'35"W a distance of 30.00 feet; thence run N3120'09"W a distance of 200.00 feet to the Southeasterly line of Maple Street; thence run N5908'43"E along the said line a distance of 30.00 feet; thence run S3120'09"E a distance of 200.00 feet to the point of beginning. Contains 0.64 acres of land more or less.

(3) The descriptions of the property in subsection (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 shall not convey property under this act unless the conveyance and the terms of the conveyance have been approved by the state administrative board.

Sec. 3. (1) The department of technology, management, and budget may take the necessary steps to convey real property described in section 2 by offering the property for sale to the city of Big Rapids for $1.00.

(2) A conveyance under subsection (1) is subject to the following conditions:

(a) The property must be used exclusively for public use. 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.

(b) If the city of Big Rapids intends to convey the property, the city must first offer the property for sale, in writing, to this state, which may purchase the property at the original sale price. The city 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 subdivision (a) remain in effect. This restriction must be included in the deed.

(c) The department of technology, management, and budget may require the city of Big Rapids to reimburse this state at closing for costs demonstrably incurred by this state that were necessary to prepare the property for conveyance.

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 antiquities.

(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 section 3 or 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 state.

(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 natural resources 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.