Legislative Analysis
Phone: (517) 373-8080
REMOVE USE CONDITIONS AND STATE REENTRY RIGHTS
http://www.house.mi.gov/hfa
ON A PROPERTY IN MUSKEGON COUNTY
Analysis available at
House Bill 4861 (H-1) as reported from committee http://www.legislature.mi.gov
Sponsor: Rep. Will Snyder
Committee: Local Government and Municipal Finance
Complete to 10-19-23
SUMMARY:
House Bill 4861 would authorize the State Administrative Board, on behalf of the state, to
amend a prior conveyance to Muskegon County that would release use conditions and the
state’s reentry rights on a property located in Muskegon, in Muskegon County.
The property is a series of parcels that currently houses Muskegon County’s South Government
Campus buildings. The bill would release the public use deed restriction through a quitclaim
deed or another attorney general-approved instrument. Under a public use conveyance, if the
property is used for any purpose inconsistent with any restrictions that follow a public use, the
state may reenter and repossess the property, terminating the grantee’s or successor’s estate in
the property. The bill also releases the state's right of reentry.
The State Administrative Board could seek fair market value of the property, plus any
reasonable and demonstrable costs of implementation. The fair market value of the property
would be determined by the Department of Technology, Management, and Budget (DTMB) or
a DTMB contractor.
Any revenue received through the sale of the property would be deposited into the state’s
general fund.
BACKGROUND:
In 1996, Muskegon County acquired a property on Marquette Avenue with the condition that
the property be used exclusively for public purposes or otherwise the state may reenter and
repossess the property. 1 The county then entered an agreement with Baker College to swap the
property for a property on Apple Avenue, which became the county government’s South
Campus. 2 In 2022, Muskegon County bought back the Marquette Avenue property, where it
plans to move most of its operations from Apple Avenue. 3
According to committee testimony, Muskegon County plans to sell the Apple Avenue property
to Kids’ Food Basket, a nonprofit organization that addresses children’s food insecurity. The
1
The property was formerly the Muskegon Regional Center for Developmental Disabilities. For the original 1996
conveyance, see: http://www.legislature.mi.gov/documents/1995-1996/billenrolled/Senate/pdf/1996-SNB-0817.pdf.
2
See: https://www.muskegonrecords.com/recorder/eagleweb/viewDoc.jsp?node=DOCC4265545 and
https://www.mlive.com/news/muskegon/2022/10/kids-food-basket-plans-700k-purchase-of-muskegon-county-
health-department-building.html.
3
See: https://www.mlive.com/news/muskegon/2022/07/baker-college-campus-in-muskegon-officially-sold-to-
county.html.
House Fiscal Agency Page 1 of 2
 sale would allow Kids’ Food Basket to establish a permanent location in Muskegon with access
to public transit. The Muskegon County Board of Commissioners approved the purchase
agreement for the building in September 2022. 4
FISCAL IMPACT:
House Bill 4861 would have an indeterminate impact on state and local government. Removing
some of the property conditions would allow for a greater use of the land for local government,
including possibly selling it. Selling the property with fewer restrictions at fair market value
could result in a larger amount of revenue received from the sale, which would be deposited
into the state’s general fund.
POSITIONS:
Representatives of the following entities testified in support of the bill (9-6-23):
• Muskegon County
• Kids’ Food Basket
The following entities indicated support for the bill (9-6-23):
• City of Muskegon
• Public Health – Muskegon County
The Department of Technology, Management, and Budget indicated having no position on the
bill. (9-6-23)
Fiscal Analyst: Perry Zielak
■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their
deliberations and does not constitute an official statement of legislative intent.
4
See Action 2022-309: https://www.co.muskegon.mi.us/DocumentCenter/View/15485/2022-Board-Minutes-
PDF#page=72.
House Fiscal Agency HB 4861 (H-1) as reported Page 2 of 2