HOUSE BILL No. 6046

 

May 10, 2006, Introduced by Reps. Farrah, Taub, Elsenheimer, Hildenbrand, Stakoe, Amos, Garfield, Leland, Tobocman, Accavitti, Clack, Condino, Clemente, McConico, Hunter and Cheeks and referred to the Committee on Local Government and Urban Policy.

 

     A bill to amend 1994 PA 451, entitled

 

"Natural resources and environmental protection act,"

 

by amending section 2131 (MCL 324.2131), as amended by 2001 PA 174.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 2131. (1) Except as otherwise provided in subsection (2)

 

or (3), the department may designate as surplus land any state

 

owned land that is under the control of the department and that has

 

been dedicated for public use and may, on behalf of the state, sell

 

that land if the department determines all of the following:

 

     (a) That the sale will not diminish the quality or utility of

 

other state owned land.

 

     (b) That the sale is not otherwise restricted by law.

 


     (c) That the sale is in the best interests of the state.

 

     (d) That 1 or both of the following conditions are met:

 

     (i) The land has been dedicated for public use for not less

 

than 5 years immediately preceding its sale and is not needed to

 

meet a department objective.

 

     (ii) The land is occupied for a private use through inadvertent

 

trespass.

 

     (2)  The  Except as otherwise provided under subsection (3),

 

the department shall not authorize the sale of surplus land as

 

provided in subsection (1) if the proceeds from the sale of the

 

land will cause the fund to exceed $2,500,000.00.

 

     (3) Before offering real property for public sale, the

 

department shall first offer the property for sale for less than

 

fair market value to the local units of government in which the

 

property is located. In order to exercise its right to purchase the

 

property under this subsection, a local government must enter into

 

a purchase agreement within 60 days after the date of the offer and

 

shall complete the purchase within 120 days after the date of the

 

offer. Except as provided under subsection (4), if a local unit of

 

government purchases the property and, within 1 year after the date

 

of that purchase, conveys the property for use other than for

 

public purposes, the local unit of government shall pay to the

 

state 50% of the net profit, if any, realized from that conveyance.

 

     (4) A local unit of government may utilize the savings of

 

property purchased under subsection (3) to create or improve the

 

overall economic opportunities for the local unit of government and

 

its residents. Property purchased under this subsection may be used

 


for nonpublic purposes, and the local unit of government may

 

proceed either in its own right, in conjunction with a private

 

entity, or through the sale of the property under the terms and

 

conditions which comply with the restrictions of this subsection.