Sec. 11. (a) If retention of the land by the director or other state agency is impractical, the director may, with the approval of the governor, do either of the following:
(1) Sell the land to political subdivisions of the state at the cost of acquisition and restoration.
(2) Dispose of the land by public sale to the highest bidder for not less than the fair market value as determined by two (2) private appraisers appointed by the director.
(b) The proceeds of a sale shall be deposited in the fund created under section 1 of this chapter.