Conditional Land Use Transfer (PA 425)

P.A. 425 of 1984, as amended, is the conditional land use transfer statute that allows one municipality the option of conditionally transferring land to another.  P.A. 425 came into being because annexation is legally difficult, tends to pit neighbor against neighbor, and because important economic development projects for regions became victims of a lack of annexation cooperation.

A conditional land use agreement allows both municipalities involved in land negotiation great flexibility.  Land transfer is sometimes needed for properties that lack infrastructure necessary to support economic development projects.  The agreement should provide the least expensive infrastructure possible to the proposed site. It has also been used to gain economic incentive tools that only core or distressed communities can offer toward support of economic development projects.