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House bill would clear title on Standish prison property to allow public sale
Summary
House Bill 4011 would transfer ownership of the vacant Standish maximum correctional facility from the Michigan Department of Corrections to the Department of Technology, Management and Budget for public sale; sponsor said the transfer could help repurpose the site for community needs such as mental-health services.
House Bill 4011, sponsored in testimony by Representative Hoadley, would transfer a state-owned property in Arenac County — the former Standish maximum correctional facility — from the Michigan Department of Corrections (MDOC) to the Department of Technology, Management and Budget (DTMB) so the parcel can be put up for public sale.
The bill was introduced at a May committee hearing and met with support from MDOC staff. Representative Hoadley told the House Appropriations Committee the facility “now sits empty and deserted” and said the conveyance would make it possible for the community to repurpose the site to meet local needs, including mental-health services. Kyle Kaminski of the Michigan Department of Corrections said the department “fully supports” declaring the property surplus and moving forward with conveyance.
Why it matters: The facility has been vacant for more than a decade, and proponents said the sale could return the site to the tax rolls and create jobs if redeveloped. The sponsor characterized the transfer as a first step to attract interest from health-care providers and other potential buyers.
Details and process: Neil D’Souza of DTMB described the state’s process: the owning agency declares a property surplus, DTMB conducts an appraisal after the legislation passes, and the state follows a real-estate process that seeks the best offer. D’Souza said sale proceeds would be deposited to the state general fund, not to a department-specific account.
Property condition and costs: MDOC staff said Standish has been maintained only at a minimal level since its closure and that there is no dedicated, full-time staff assigned to the site; maintenance has been done by crews from other MDOC facilities as needed. Committee members asked about historical and ongoing costs; MDOC said occasional capital work (for example, roof repairs) has occurred but an exact total since the 2009 closure was not on hand and would be provided on request.
Site details and community interest: Representative Hoadley and other lawmakers described outreach over several years to local hospitals, law enforcement and mental-health stakeholders and said some interest in repurposing the site has developed, but they stressed that putting the site up for sale does not guarantee a specific future use. Committee member questions established that the parcel is approximately 78 acres and that the bill, as written, would permit a sale at fair market value. If a local government option were used, the sale could include restrictions for public uses; in an open-market sale the buyer would be bound by local zoning, like any other private purchaser.
Next steps: The bill was presented for testimony; committee members asked DTMB and MDOC to provide additional details, including a historical accounting of maintenance costs and a list of other vacant state properties. No formal committee vote on the bill was recorded during the hearing.
The sponsor and department witnesses said they would follow up with additional details requested by committee members.
