SB-1149, As Passed Senate, December 3, 2014

 

 

 

 

 

 

 

 

 

 

 

 

 

SENATE BILL No. 1149

 

 

November 13, 2014, Introduced by Senator RICHARDVILLE and referred to the Committee on Committee of the Whole.

 

 

 

     A bill to authorize the state administrative board to convey

 

parcels of state-owned property in Ingham county; to prescribe

 

conditions for the conveyance; to provide for powers and duties of

 

state departments regarding the property; and to provide for

 

disposition of revenue derived from the conveyance.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 1. (1) The state administrative board, on behalf of this

 

state, may convey by quitclaim deed all or portions of state-owned

 

property now under the jurisdiction of the senate, commonly known

 

as the Farnum building, and located in the city of Lansing, county

 

of Ingham, and further described as follows:

 

PARCEL 1

 

     The East 30 feet of the West 78 feet of the North 100 feet of

 

Lots 11 and 12 and the North 100 feet of the West 48 feet of Lots


 

11 and 12, Block 115, Original Plat of the City of Lansing, City of

 

Lansing, Ingham County, Michigan, according to the recorded plat

 

thereof.

 

PARCEL 2

 

     The north 32 5/6 feet of Lot 10 and the South 21 feet of Lot

 

11, Block 115, Original Plat of the City of Lansing, City of

 

Lansing, Ingham County, Michigan, according to the recorded plat

 

thereof.

 

     (2) The description of the property in subsection (1) is

 

approximate and, for purposes of the conveyance, is subject to

 

adjustments as the state administrative board or the attorney

 

general considers necessary by survey or other legal description.

 

     (3) In conveying the property under subsection (1), the state

 

administrative board shall include all surplus, salvage, and scrap

 

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

 

conveyance.

 

     (4) The fair market value of the property described in

 

subsection (1) shall be determined by an appraisal prepared for the

 

department of technology, management, and budget by an independent

 

appraiser.

 

     (5) The director of the department of technology, management,

 

and budget shall take the necessary steps to prepare to convey the

 

property described in subsection (1) using any of the following at

 

any time:

 

     (a) Competitive bidding designed to realize the best value to

 

this state, as determined by the department of technology,

 

management, and budget.


 

     (b) A public auction designed to realize the best value to

 

this state, as determined by the department of technology,

 

management, and budget.

 

     (c) Real estate brokerage services designed to realize the

 

best value to this state, as determined by the department of

 

technology, management, and budget.

 

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

 

local unit or units of government.

 

     (e) Conveying the property to the land bank fast track

 

authority established under the land bank fast track act, 2003 PA

 

258, MCL 124.751 to 124.774.

 

     (6) The department of attorney general must approve as to

 

legal form the quitclaim deed authorized by this section.

 

     (7) In making the conveyance under subsection (1), the state

 

administrative board shall not reserve to this state oil, gas, or

 

mineral rights to the property conveyed under this section.

 

However, the conveyance authorized under this section shall 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. A payment under this subsection shall be deposited in the

 

general fund.

 

     (8) In making the conveyance under subsection (1), the state

 

administrative board shall reserve 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.

 

     (9) The revenue received from the sale of property under this

 

section shall be disbursed to reimburse the department of

 

technology, management, and budget for expenses incurred by the

 

senate for lease, purchase, or transition costs related to

 

relocation from the Farnum building as described in section 896 of

 

article VIII of 2014 PA 252 and costs incurred by the department of

 

technology, management, and budget related to the sale of the

 

property, related expenses, and other ongoing costs including, but

 

not limited to, administrative costs, including employee wages,

 

salaries, and benefits; costs of appraisals, reports, studies, and

 

other materials necessary to the preparation for sale;

 

environmental remediation; legal fees; ongoing costs for the

 

maintenance, utilities, security, and other ongoing costs

 

associated with maintaining the building while vacant; and any

 

costs incurred in relation to any litigation related to the

 

conveyance of the property. Any remaining revenue shall be

 

deposited in the general fund.