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State of
DEPARTMENT
OF NATURAL RESOURCES |
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JENNIFER M. GRANHOLM governor |
REBECCA A. HUMPHRIES director |
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State of
DEPARTMENT
OF NATURAL RESOURCES |
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JENNIFER M. GRANHOLM governor |
REBECCA A. HUMPHRIES director |
POSITION
The Department of
Natural Resources (DNR) does not own the property described in the bill, and is
neither for nor against the proposal.
PROBLEM/BACKGROUND
In 1939, the Department
was gifted a 20-acre parcel in the Township of Clearwater, Kalkaska County. On March 8, 1976, the Township entered into a
25-year lease agreement with the DNR.
The parcel, located on Rapid River, was leased for recreational
purposes. Act No. 138 of 2002 provided
for the legislative transfer of the parcel for one dollar ($1.00). The transfer, dated April 26, 2002, was
deeded exclusively for "public recreational boating and fishing
access" purposes. This special use
legislation included stipulation retaining a reverter interest in the State of
Michigan that allowed the DNR to reenter and reposess the property upon
termination of that use.
In 2005, the Township contacted the
DNR to sell a portion of the land to an individual who had trespassed by
building a deck on a portion of the land. Based on the stipulations of Act 138 of 2002,
legislative action was required to authorize such a conveyance.
The DNR supports conveying the
property to the Township. However, if
the parcel is to be conveyed by the Township to the individual, the DNR
recommends it be conveyed for fair market value. Otherwise, the result of the action is to
convey land to a private individual without compensation when the land had been
deeded for public purpose.
DESCRIPTION OF BILL
House Bill No. 4965 would allow the conveyance of
the right of reverter and the right of reentry by quitclaim deed to the
Township of Clearwater, Kalkaska County.
The rights requested are on a 0.24 acre of land for the consideration of
$1.00. The bill authorizes the State Administrative
Board to convey the interest in the land; however, the reverter rights are held
by the DNR. The bill should be changed
to authorize the DNR to convey the reversionary rights.
SUMMARY OF ARGUMENTS
Pro
The DNR supports
resolving the trespass on Township property.
Con
The Township should
purchase the parcel at fair market value in order to remove the reversionary
interest. Private individuals should not
be rewarded for causing trespass onto public property that was conveyed for
public recreational purposes. The DNR resolves trespasses on state land
with private individuals by requiring them to vacate the land or pay the state
fair market value for the land in trespass.
FISCAL/ECONOMIC IMPACT
Are there revenue or
budgetary implications in the bill to the --
Budgetary:
The DNR will incur costs associated with processing
the deed with the Office of the Attorney General, and spend valuable staff time.
Revenue:
None
Comments:
None
Budgetary:
The Office of Attorney General will spend valuable staff
time reviewing and preparing the deed.
Revenue:
The State would
receive $1.00 to be deposited into the General Fund.
Comments:
None
Comments:
The Township would
purchase the parcel for $1.00.
OTHER STATE DEPARTMENTS
None
ANY OTHER PERTINENT INFORMATION
This bill is also
being introduced in the Senate as 601 by Senator Michelle McManus.
ADMINISTRATIVE
RULES IMPACT
Rules can be
promulgated to provide for administration of the act.
_______________________________
Rebecca A. Humphries
Director
_______________________________
Date
OLAF/PRD
