PROPERTY CONVEYANCE IN MUSKEGON COUNTY H.B. 4861 (S-1):

SUMMARY OF BILL

REPORTED FROM COMMITTEE

House Bill 4861 (Substitute S-1 as reported)

Sponsor: Representative Will Snyder

House Committee: Local Government and Municipal Finance

Senate Committee: Local Government

CONTENT

The bill would authorize the State Administrative Board, on behalf of the State, to amend a previous property conveyance for parcels in Muskegon County, in the City of Muskegon. The bill would allow the State to repurchase the parcels in question for $1, and then convey those parcels back to Muskegon County. These parcels were originally conveyed to Muskegon County in 1996 with a restriction that all those parcels be used for a public purpose. The bill would allow the State to reconvey a portion of the parcels, totaling approximately 3.47 acres, back to Muskegon County for $1, and would require those parcels to be used for a public purpose.

BRIEF RATIONALE

The parcels listed for conveyance have deed restrictions that require action from the Legislature to be authorized for sale to an organization that would not use them for a public purpose. A property at 97 East Apple Avenue in Muskegon would be purchased from the State at fair market value and sold to Kids' Food Basket a nonprofit dedicated to relieving food insecurity among children. According to testimony before the House Committee on Local Government and Municipal Finance, Kids' Food Basket distributes over 1,700 meals each weekday across seven schools in Muskegon County. The organization has reached its current logistical capacity in Muskegon County and require a permanent location.

Legislative Analyst: Alex Krabill

FISCAL IMPACT

The bill would have an unknown but likely positive fiscal impact on the State. The fair market value of the 9.48-acre set of parcels is unknown, but if Muskegon County were to repurchase those parcels, the State General Fund would receive the proceeds in the amount of the fair market value for that set of parcels.

The fiscal impact on Muskegon County is unknown and would largely depend on the final disposition of the 9.48-acre set of parcels. Selling the parcels would generate some one-time revenue for the County, as well as provide the County with savings related to ongoing maintenance and security of those parcels.

Date Completed: 11-2-23 Fiscal Analyst: Josh Sefton

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.