H.B. 4857 (H-1): COMMITTEE SUMMARY - NEW BUFFALO TWP CONVEYANCE

House Bill 4857 (Substitute H-1 as passed by the House)

Sponsor: Representative Ron Jelinek

Senate Committee: Local, Urban and State Affairs

Date Completed: 4-28-98

CONTENT

The bill would authorize the Department of State Police, on behalf of the State, to convey to New Buffalo Township for $1 two parcels of real property under the Department's jurisdiction and located in Berrien County. A portion of one of the parcels would be excepted from the conveyance.

The conveyance would have to require the property to be used for a municipal public purpose, and provide that upon termination of that use, or upon use for any other purpose, title to the property would revert immediately to the State, which would assume no liability for any improvements made by any other party.

The conveyance would have to be by quitclaim deed approved by the Attorney General, and reserve to the State all rights to coal, oil, gas, and other nonmetallic minerals found on, within, or under the conveyed property.

- Legislative Analyst: S. Lowe

FISCAL IMPACT

The bill would have an indeterminate fiscal impact on State and local government.

Although there exists no recent appraisal, due to a number of factors including location, zoning, the shape of the parcels, etc., the property in question reportedly has little or no value to the State. That being the case, the conveyance of the property to New Buffalo Township for $1 would have little fiscal impact on the State. There are also reported liability and ongoing maintenance concerns with this property as vacant buildings exist on the property. Finally, although it appears as though the Department of Transportation originally purchased the property with restricted Transportation Fund revenue (and the Constitution would require the repayment of the Fund at the fair market value of the property), the property evidently is now under the jurisdiction of the Department of State Police, which has declared the property to be surplus.

According to the Department of State Police, the Township of New Buffalo is currently leasing the property for $1 and uses it for public purposes including the operation of several public safety entities.

- Fiscal Analyst: M. HansenS9798\S4857SA

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.