[Congressional Record Volume 155, Number 31 (Monday, February 23, 2009)]
[House]
[Pages H1622-H1623]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                              {time}  1530
                VIRGIN ISLANDS NATIONAL PARK LAND LEASE

  Ms. BORDALLO. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 714) to authorize the Secretary of the Interior to lease 
certain lands in Virgin Islands National Park, and for other purposes.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                                H.R. 714

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. CANEEL BAY LEASE AUTHORIZATION.

       (a) Definitions.--In this section:
       (1) Park.--The term ``Park'' means the Virgin Islands 
     National Park.
       (2) Resort.--The term ``resort'' means the Caneel Bay 
     resort on the island of St. John in the Park.
       (3) Retained use estate.--The term ``retained use estate'' 
     means the retained use estate for the Caneel Bay property on 
     the island of St. John entered into between the Jackson Hole 
     Preserve and the United States on September 30, 1983.
       (4) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (b) Lease Authorization.--
       (1) In general.--If the Secretary determines that the long-
     term benefit to the Park would be greater by entering into a 
     lease with the owner of the retained use estate than by 
     authorizing a concession contract upon the termination of the 
     retained use estate, the Secretary may enter into a lease for 
     the operation and management of the resort.
       (2) Acquisitions.--The Secretary may--
       (A) acquire associated property from the owner of the 
     retained use estate; and
       (B) on the acquisition of property under subparagraph (A), 
     administer the property as part of the Park.
       (3) Authority.--Except as otherwise provided by this 
     section, a lease shall be in accordance with subsection (k) 
     of section 3 of Public Law 91-383 (16 U.S.C. 1a-2(k)), 
     notwithstanding paragraph (2) of that subsection.
       (4) Terms and conditions.--A lease authorized under this 
     section shall--
       (A) be for the minimum number of years practicable, taking 
     into consideration the need for the lessee to secure 
     financing for necessary capital improvements to the resort, 
     but in no event shall the term of the lease exceed 40 years;
       (B) prohibit any transfer, assignment, or sale of the lease 
     or otherwise convey or pledge any interest in the lease with 
     prior written notification to, and approval by the Secretary;
       (C) ensure that the general character of the resort 
     property remains unchanged, including a prohibition against--
       (i) any increase in the overall size of the resort; or
       (ii) any increase in the number of guest accommodations 
     available at the resort;
       (D) prohibit the sale of partial ownership shares or 
     timeshares in the resort; and
       (E) include any other provisions determined by the 
     Secretary to be necessary to protect the Park and the public 
     interest.
       (5) Rental amounts.--In determining the fair market value 
     rental of the lease required under section 3(k)(4) of Public 
     Law 91-383 (16 U.S.C. 1a-2(k)(4)), the Secretary shall take 
     into consideration--
       (A) the value of any associated property conveyed to the 
     United States; and
       (B) the value, if any, of the relinquished term of the 
     retained use estate.
       (6) Use of proceeds.--Rental amounts paid to the United 
     States under a lease shall be available to the Secretary, 
     without further appropriation, for visitor services and 
     resource protection within the Park.
       (7) Congressional notification.--The Secretary shall submit 
     a proposed lease under this section to the Committee on 
     Energy and Natural Resources of the Senate and the Committee 
     on Natural Resources of the House of Representatives at least 
     60 days before the effective date of the lease.
       (8) Renewal.--A lease entered into under this section may 
     not be extended or renewed.
       (9) Termination.--Upon the termination of a lease entered 
     into under this section, if the Secretary determines the 
     continuation of commercial services at the resort to be 
     appropriate, the services shall be provided in accordance 
     with the National Park Service Concessions Management 
     Improvement Act of 1998 (16 U.S.C. 5951 et seq.).
       (c) Retained Use Estate.--
       (1) In general.--As a condition of the lease, the owner of 
     the retained use estate shall terminate, extinguish, and 
     relinquish to the Secretary all rights under the retained use 
     estate and shall transfer, without consideration, ownership 
     of improvements on the retained use estate to the National 
     Park Service.
       (2) Appraisal.--
       (A) In general.--The Secretary shall require an appraisal 
     by an independent, qualified appraiser that is agreed to by 
     the Secretary and the owner of the retained use estate to 
     determine the value, if any, of the relinquished term of the 
     retained use estate.
       (B) Requirements.--An appraisal under paragraph (1) shall 
     be conducted in accordance with--
       (i) the Uniform Appraisal Standards for Federal Land 
     Acquisitions; and
       (ii) the Uniform Standards of Professional Appraisal 
     Practice.

  The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from 
Guam (Ms. Bordallo) and the gentleman from Utah (Mr. Bishop) each will 
control 20 minutes.
  The Chair recognizes the gentlewoman from Guam.


                             General Leave

  Ms. BORDALLO. Mr. Speaker, I ask unanimous consent that all Members 
may have 5 legislative days in which to revise and extend their remarks 
and include extraneous material on the bill under consideration.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentlewoman from Guam?
  There was no objection.
  Ms. BORDALLO. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I would like to commend our distinguished colleague from 
the Virgin Islands, a valuable member of the Committee on Natural 
Resources, Donna Christensen, for sponsoring H.R. 714. This legislation 
would authorize the National Park Service to continue its successful 
relationship with Caneel Bay Resort, ensure that park resources are 
protected, and allow the resort to undertake needed maintenance and 
improvement programs that will benefit visitors to the Virgin Islands 
National Park and the Caneel Bay Resort well into the future.
  Mr. Speaker, this legislation was approved by the House in the 
previous Congress, but was not considered in the other body. It should 
be noted, however, that H.R. 714 includes some technical changes 
suggested by our colleagues in the Senate after hearings were conducted 
on the bill last year.
  Congresswoman Christensen deserves our thanks for her work in 
ensuring that visitor services at the Virgin Islands National Park are 
available and that the park's stunning natural resources are always 
protected.
  I urge my colleagues to support the passage of H.R. 714.
  Mr. Speaker, I reserve the balance of my time.
  Mr. BISHOP of Utah. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, this bill has been adequately explained by the other 
side and we support this legislation.
  I reserve my time.
  Ms. BORDALLO. Mr. Speaker, I yield such time as she may consume to 
the gentlewoman from the Virgin Islands (Mrs. Christensen), the author 
of this legislation.
  Mrs. CHRISTENSEN. Mr. Speaker, I thank Congresswoman Bordallo for 
those kind words and for yielding me time.
  I rise, of course, in strong support of H.R. 714, legislation that I 
introduced to authorize the Secretary of the Interior to enter into a 
lease with the owners of Caneel Bay Resort in my congressional 
district. I want to begin by thanking Chairman Rahall, as well as 
Chairman Grijalva, for their strong and steadfast support of this bill. 
Chairman Grijalva actually traveled to my district to see for himself 
how important the resort is to the island and the people of St. John 
and to meet with not only the management, but the employees, because it 
is important to the entire Virgin Islands.
  Mr. Speaker, Caneel Bay traces its roots to Lawrence Rockefeller's 
coming to the Island of St. John in 1952. He purchased the then-
existing resort facilities and also acquired more than 5,000 
surrounding acres to protect the area. In 1956, he donated the 
additional land to create the Virgin Islands National Park. At the same 
time, he created Caneel Bay Resort, comprising 170 acres, which 
continues to complement and be environmentally consistent with the 
natural beauty of the park's setting.
  Mr. Rockefeller subsequently decided to transfer the land underlying 
Caneel Bay to the National Park Service while retaining the 
improvements and continuing the Caneel Bay operations. He accomplished 
this through the execution of a series of unique agreements generally 
known as a retained use estate, or RUE.

[[Page H1623]]

  The bill before us is necessary because the RUE is slated to expire 
in 2023 and its current owners require more than the remaining 15 years 
to provide the capital and long-term financing necessary to reverse the 
decline of the facilities over the years and to return it to the 
grandeur and stature that it deserves. It has been impossible for them 
to get that financing with just 15 years remaining in the RUE.
  Mr. Speaker, I have spent the last 4 years meeting with the National 
Park Service officials, representatives of the Rockefeller group, and 
various public officials and business partners to work out an equitable 
framework for the long-term lease with the National Park Service which 
will ensure the viability of the Caneel Bay Resort, the largest 
employer on St. John in the U.S. Virgin Islands.
  In return for a long-term lease needed to ensure the infusion of 
capital funds, the owners have agreed to pay consideration to the 
government based on independent appraisals commissioned by the parties, 
which will include valuable land and buildings held by them outside the 
park but which are necessary for resort operations. No consideration is 
currently being paid to the government under the existing retained use 
estate which expires in 2023.
  Mr. Speaker, Caneel Bay, along with virtually every business in the 
Virgin Islands, and I would say across the country, has suffered a 
dramatic decline in revenue and, in our case, future bookings. The 
company is being forced to make some very difficult decisions in an 
attempt to preserve its solvency so that it may survive this economic 
downturn. They are currently reducing employees' hours, have been 
forced to eliminate some positions and are laying off employees. They 
are making every effort to minimize losses due to the deepening 
economic recession as well as alleviate the impact on our long-term 
employees who are also struggling in this economic environment.
  The bill was supported by the administration at hearings both in the 
House and Senate as the best means of conclusively addressing this 
issue.
  In conclusion, Mr. Speaker, I want to thank the Natural Resources 
staff director, Jim Zoia, and the staff of the National Parks, Forest 
and Public Lands Subcommittee, in particular former staff director Rick 
Healy and current staff director Dave Watkins, for their hard work in 
making it possible for H.R. 714 to be on the floor today. I also want 
to thank the full committee ranking member, Doc Hastings, and 
subcommittee ranking member, Rob Bishop, and their staffs for their 
support as well.
  I urge my colleagues to support the passage of this bill, which is 
very important to the economy of my district and the U.S. Virgin 
Islands.
  Mr. BISHOP Of Utah. Mr. Speaker, I yield back the balance of my time.
  Ms. BORDALLO. Mr. Speaker, I again urge Members to support H.R. 714, 
and I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentlewoman from Guam (Ms. Bordallo) that the House suspend the rules 
and pass the bill, H.R. 714.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill was passed.
  A motion to reconsider was laid on the table.

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