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SB 960

Local government: other; process to vacate certain deed restrictions; provide for. Creates new act.

2025-2026 Regular Session Introduced by Rosemary Bayer and 5 co-sponsors

Allows local governments to strike certain private use restrictions on vacant, blighted commercial properties in retail zones via court action to aid redevelopment.

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Bill Summary · SB 960

Summary of SB 960 (2025-2026) – Michigan

Purpose and intent

SB 960, titled the “dark store prevention act,” would authorize local governments to remove certain private restrictions or covenants from deed or other property instruments on commercial properties. The aim appears to address issues related to property value and use restrictions that may influence assessments and retail competition, by allowing governments to vacate or “strike” private restrictions that limit how commercial properties can be used.

Key provisions and changes

  • Definitions:
    • Commercial property: real property used for commercial purposes ( wholesale, retail, or service). Properties zoned for industrial use are excluded.
    • Local government: a city, village, or township.
    • Private restriction or covenant: any deed, lease, or contract restriction on property use.
  • Conditions for action by local government:
    • The property must be in a retail zone.
    • The building or structure on the property has been vacant for at least 2 years.
    • The local government must hold at least one public hearing regarding the proposed removal.
    • The property is a blighted property (as defined by 1945 PA 344).
  • Procedure to remove a restriction:
    • The local government would file an action in the circuit court of the county where the property is located.
    • The case would be an in rem, declaratory judgment action, with the property described by its description in the complaint.
    • The local government and the property owner must be necessary parties to the action.
    • A county-level local government may intervene as a plaintiff if the property lies within the county’s jurisdiction.
    • If the court finds that a private restriction exists and the property meets all conditions, the court must issue an order striking the restriction from the records of the register of deeds and eliminating the restriction from the relevant deed or instrument.
  • Fees:
    • The register of deeds may assess recording fees for the documents prepared and recorded under this act, consistent with section 2567 of the Revised Judicature Act (1961 PA 236).

Who and what would be affected

  • Affected entities:
    • Local governments (cities, villages, townships) seeking to remove private restrictions on eligible commercial properties.
    • Commercial property owners whose deeds or instruments contain private restrictions or covenants and that meet the statutory conditions.
    • County governments, which may intervene as plaintiffs in eligible cases.
    • Registers of deeds, which would record the court order removing the restriction and charge applicable recording fees.
  • Scope of impact:
    • Limited to commercial properties in retail zones, with vacant buildings for at least two years and deemed blighted under state law.

Procedural and timeline aspects

  • Initiation: Local government must file a complaint in the circuit court after a public hearing and satisfaction of all conditions.
  • Litigation type: In rem, declaratory judgment action; property described in the action governs.
  • Parties: Local government and property owner are necessary parties; county may intervene.
  • Outcome: Court order to strike the private restriction from the records and remove it from the deed/instrument.
  • Recording: Deeds are recorded with applicable fees by the register of deeds at the conclusion.

Remarks

  • The bill establishes a targeted mechanism to decouple certain private use restrictions from ownership to potentially facilitate redevelopment and property value in blighted retail areas. It creates a specific pathway with defined conditions, hearings, and court processes, balancing local government authority with property rights and record-keeping requirements.

Compiled from official sources — confirm details with the bill’s official record.

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