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HB 4090

Property: conveyance of state property; transfer of certain state-owned property in Detroit; provide for. Creates land transfer act.

2025-2026 Regular Session Introduced by Alabas Farhat

Authorizes conveyance of the 96.14-acre Detroit Detention Center site to Detroit or other buyers under public-use limits, with state repurchase rights and General Fund proceeds.

assigned PA 6'25 with immediate effect
#property:conveyanceofstateproperty
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Bill Summary · HB 4090

Summary — HB 4090 (Public Act 6 of 2025)

Authorizes conveyance of a 96.14‑acre former state correctional site in Detroit (the Mound/Ryan site that houses the Detroit Detention Center) and sets procedures, conditions, and fiscal terms for the transfer.

Purpose

Allow the State Administrative Board (through DTMB) to convey all or portions of the state‑owned property formerly used as Mound and Ryan Correctional Facilities (currently the Detroit Detention Center, DDC) to the City of Detroit or other purchasers, with statutory conditions designed to protect state interests and prioritize public uses.

Key provisions

  • Property covered: approximately 96.14 acres in the City of Detroit (legal description in the act). DDC operates within a roughly 53.5‑acre fenced area and includes about 56,544 sq. ft. of buildings used for detention and police operations.
  • First right to City of Detroit: DTMB must first offer the property to the City; the City has a 2‑year exclusive right to acquire all or portions for $1.00 (conveyance for $1 is subject to special conditions — see below).
  • If City does not purchase, DTMB may convey by:
    • Competitive bidding, public auction, or use of brokers;
    • Value‑for‑value exchange (considering economic impacts);
    • Sale to one or more local units of government at fair market value or below;
    • Conveyance to a land bank authority.
  • Fair market sales must be supported by an independent fee appraisal prepared for DTMB.
  • Net proceeds (sale receipts less DTMB sale costs) and any mineral royalty revenue are credited to the State General Fund.

Conditions and reserved state rights (applies especially to below‑market transfers)

  • Purchaser must use the property exclusively for public use (defined categories include government administration, publicly‑owned correctional facilities, law enforcement, public education, parks, public health, transit, wildlife conservation; excludes for‑profit or closed uses).
  • If a local unit later intends to sell, it must first offer the property back to the State at the original sale price; the State has a one‑year right to repurchase. If the State waives repurchase and the local unit later sells for more, the local unit must reimburse the State for the full difference.
  • Purchaser must reimburse DTMB for demonstrable closing/preparation costs; DTMB may require recording of deed at purchaser’s expense.
  • Attorney General must approve deed/legal form.
  • The State reserves rights to all aboriginal antiquities on or under the land.
  • The State does not retain mineral rights, but if oil/gas/minerals are developed after conveyance, the State is entitled to one‑half (50%) of gross revenue from that extraction (credited to General Fund).
  • DTMB/state may repossess the property if conveyance/use violates statutory conditions.

Fiscal impact

  • State: likely neutral. The FY 2024‑25 MDOC budget included approximately $11.419 million for DDC operations (funded by City reimbursement). Conveyance and City operation would eliminate that line item and the corresponding local reimbursement; MDOC could transfer up to 75.8 FTE officers to other posts, and avoid long‑term property liabilities.
  • City of Detroit: fiscal impact unknown — costs shift to the City if it assumes direct operation; potential savings or increased costs depending on staffing and operations.
  • All sale proceeds and mineral revenues credited to the State General Fund.

Who is affected

  • City of Detroit (first option to acquire and potential new operator/owner).
  • Michigan Department of Corrections (jurisdictional transfer, staffing reassignments).
  • Department of Technology, Management, and Budget (administration of conveyance).
  • Local units or land bank authorities (potential purchasers).
  • Broader public (conditions restrict use to public purposes).

Timeline / Procedural status

  • Introduced: Feb 19, 2025 (Rep. Alabas Farhat primary sponsor in Michigan House).
  • Passed House: May 14, 2025 (immediate effect).
  • Passed Senate: June 25, 2025 (given immediate effect).
  • Presented to Governor: June 26, 2025.
  • Approved by Governor and filed with Secretary of State: June 27, 2025.
  • Enacted as Public Act 6 of 2025 — effective June 27, 2025 (immediate effect).

If you want, I can extract the full statutory text of specific sections (e.g., the repurchase clause, mineral‑revenue share, or public‑use definition) or prepare a one‑page briefing for municipal officials.

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

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