HOUSE BILL NO. 6514
December 16, 2020, Introduced by Rep. Maddock
and referred to the Committee on Appropriations.
the people of the state of michigan enact:
(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.
(c) "Qualified nonprofit organization" means an organization to which both of the following apply:
(i) The organization is registered with the department of the attorney general under the supervision of trustees for charitable purposes act, 1961 PA 101, MCL 14.251 to 14.266.
(ii) If required under any law of this state, the organization is registered with the secretary of state.
Sec. 2. (1) The department of technology, management, and budget, on behalf of this state, shall 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 state transportation department, Michigan aeronautics commission.
(2) All of the following apply to the real property to be conveyed under this act:
(a) The property is commonly referred to as the Houghton Lake State Airport.
(b) The property consists of all property located in Roscommon County that is under the jurisdiction of the Michigan aeronautics commission.
(c) A portion of the property is identified for tax purposes in the records of Roscommon County as parcel number 011-203-006-0015, and partially described as:
224 THAT PART OF NW1/4 LYING S OF M-55 R/W GOVT LOT 3 SEC 3 EXC N 350FT OF W 350FT & EXC COM AT W1/4 COR TH S89DEG31'25"E 1475.41FT FOR POB TH S89DEG31'25"E 1329.48FT TO SW COR OF 3RD ADD HTN LK PARK TH N ALG WLY LINE OF PLAT 237.92FT TO SLY R/W M-55 TH
(d) The state transportation department shall provide to the department of technology, management, and budget a complete legal description of the property to be conveyed immediately on enactment of this act.
(3) The description of the property provided under 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.
Sec. 3. (1) The department of technology, management, and budget shall take the necessary steps to convey real property described in section 2 using any of the following means:
(a) Any 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) Offering the property for sale for fair market value to 1 or more units of local government in which the property is located.
(c) Exchanging some or all of the property for other real property if the other real property is determined by the department of technology, management, and budget to be of reasonably equal value to this state.
(d) Offering the property for sale for less than fair market value, including offering to convey the property for as little as $1.00, to qualified nonprofit organizations. If property is conveyed under this subdivision, the department of technology, management, and budget may require the qualified nonprofit organization to which the property is conveyed to reimburse this state at closing for costs demonstrably incurred by this state that were necessary to prepare the property for conveyance.
(2) If the real property described in section 2 is not conveyed under subsection (1) by December 31, 2020, the department of technology, management, and budget shall convey the property for no consideration to the first person that requests the department to transfer the property to the person.
(3) 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, subject to subsection (9), 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) Subject to subsection (9), 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) Subject to subsection (9), 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 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.
(8) A conveyance under this act must contain a restriction that, except as provided in subsection (6), the transferor or any successor in interest to the transferor may not convey the property to this state.
(9) The department of technology, management, and budget shall not include restrictions under subsections (3) to (5) in any deed to convey the property under section 3(2).
Sec. 5. (1) The state transportation department 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 act in the state treasury. The state treasurer shall credit the money deposited to the general fund.