Extension of retained use estate

(a)

Extension required

Not later than 90 days after a request by the grantor, the Secretary of the Interior shall extend the retained use estate in accordance with this section. (b)

Requirements

The extension under subsection (a) shall— (1)except as provided in paragraph (2), be effective for the 60-year period beginning on the date the retained use estate would, but for the extension under this section, expire; (2)be subject to the terms of the retained use estate, including the right of the grantor to terminate the retained use estate in accordance with the terms thereof; and (3)require the grantor to pay to the United States, in quarterly installments for the period of the extension, fair market value rental for use of the premises for operation and management of resort facilities and services in an amount equal to— (A)for each of the first 15 years of the extension, a percentage of the gross revenues of the resort in accordance with subsections (c) and (d) to be determined no later than 90 days after the date on which the extension is granted under subsection (a) by— (i)a written agreement between the Secretary and the grantor; or (ii)if the Secretary and the grantor are unable to agree on such a percentage by the date that the extension is granted under subsection (a), through binding arbitration using procedures specified in section 51.51 of title 36, Code of Federal Regulations; and (B)for each year of the extension thereafter, the amount determined under subparagraph (A), except that— (i)such amount shall be adjusted if requested by the Secretary or the grantor; (ii)any such adjustment shall be determined— (I)through a written agreement between the Secretary and the grantor; or (II)if the Secretary and the grantor are unable to agree on such an adjustment after a 60-day period for negotiation (or a longer period for negotiation agreed upon by the Secretary and the grantor), through binding arbitration between the Secretary and the grantor using the arbitration procedures specified in section 51.51 of title 36, Code of Federal Regulations; and (iii)no more than one adjustment may be made under this subparagraph in any 15-year period. (c)

Calculation of fair market value rental

The initial payment required under subsection (b)(3)(A) and any adjustment under subsection (b)(3)(B) shall reflect the fair market value of a land lease for hotel use, as determined by an appraisal by an independent qualified appraiser who is selected jointly by the Secretary and the grantor and shall reflect— (1)any restrictions on the use of the property or terms of the retained use estate that limit the value or highest and best use of the property; (2)any amounts expended or to be expended by the grantor for preservation, maintenance, restoration (including site restoration), improvement (including construction), or repair and related expenses to the extent that such amounts are for the resort; and (3)the remaining term of the extended retained use estate. (d)

Payments

Payments under subsection (b)(3) shall— (1)be due— (A)except as provided in subparagraph (B), 60 days after the end of the applicable quarter; and (B)in the case of the last quarter of each calendar year (or the last quarter before the retained use estate expires), 90 days after the end of the calendar year (or the end of the retained use estate in the year that the retained use estate expires); (2)be based on actual gross revenues for the preceding quarter; (3)in the case of a payment due under paragraph (1)(B), include any adjustment that may be required after an audit of the gross annual revenues for the preceding year; and (4)be deposited into the General Treasury. (e)

Definitions

In this section— (1)each of the terms retained use estate and resort has the meaning given such term in section 1 of Public Law 111–261 (16 U.S.C. 398d note); and (2)the term grantor means the holder of the retained use estate.