[Congressional Record (Bound Edition), Volume 160 (2014), Part 11]
[Extensions of Remarks]
[Pages 16236-16238]
[From the U.S. Government Publishing Office, www.gpo.gov]




    HISTORICAL RECORD OF THE HALTING OF A McDONALD'S AT UTULEI BEACH

                                  _____
                                 

                      HON. ENI F. H. FALEOMAVAEGA

                           of american samoa

                    in the house of representatives

                      Thursday, November 20, 2014

  Mr. FALEOMAVAEGA. Mr. Speaker, I rise today to include, for 
historical purposes, information about my opposition to the 
construction of a McDonald's at Utulei Beach.

                     [Press Release, Apr. 26, 2006]

       Faleomavaega Makes Final Appeal to McDonald's Corporation

       Congressman Faleomavaega announced today that he has made a 
     final appeal to Mr. Jim Skinner, Vice-Chairman and CEO of the 
     McDonalds Corporation, in a letter dated April 26, 2006. The 
     letter was copied to Jonathan B. Jarvis, Regional Director of 
     the National Park Service, Governor Togiola, Lieutenant 
     Governor Ipulasi, President Lolo Moliga and Senators, Speaker 
     Matagi R. McMoore and Representatives, Lydia Faleafine of the 
     DOI in American Samoa, Peter Bush, Managing Director/CEO, 
     McDonalds Australia, Charles Tautolo, CEO of McDonalds 
     American Samoa, and Lelei Peau, Chairman, PNRS Board, ASG. 
     The full text of the Congressmans letter is included below.
       Dear Mr. Skinner:
       As a follow-up to my letter of May 25, 2005, I am once 
     again requesting your immediate intervention regarding a 
     decision made by McDonalds to build a new facility at the 
     Utulei Beach Park in American Samoa. Utulei Beach is the only 
     public beach in America Samoa and building at this site goes 
     against the core values of McDonalds which promotes an agenda 
     of community involvement, environmental protection, and a 
     promise to earn the trust of your customers and everyone else 
     affected by your business.
       Most importantly, based upon relevant information including 
     documents, maps, and other material, there is a signed 
     agreement (attached) between the American Samoa Government 
     (ASG) and the US National Park Service (NPS) that places 
     Utulei Beach Park within the Land and Water Conservation Fund 
     Program (LWCF) as park land dedicated to public outdoor 
     recreational use in perpetuity. Also included with the 
     agreement is a map (attached) clearly showing that the 
     entirety of the Utulei Beach Park is included in the 
     agreement which places the proposed McDonalds within a 
     protected park area and violates ASGs agreement with the NPS. 
     Because ASG has accepted over $4 million from the federal 
     government since signing this agreement, I can assure you 
     that the NPS is prepared to take whatever legal action is 
     necessary against ASG and the McDonalds Corporation if this 
     matter is not

[[Page 16237]]

     expeditiously resolved. Please note that both NPS and ASG are 
     under the jurisdiction of the US Department of the Interior 
     and any action taken will directly involve the US Secretary 
     of the Interior and this will not be good for ASG or for 
     McDonalds.
       As you know, last year I copied you on a letter I wrote to 
     Mr. Charles Tautolo, CEO of McDonalds American Samoa, in 
     which I requested a copy of the feasibility study of the 
     proposed plan to construct a McDonalds at Utulei Beach Park. 
     To date, I have not received a copy of the feasibility study 
     and I am very concerned about how the McDonalds Corporation 
     can support construction of a new facility at any location 
     when no environmental study has been conducted.
       I also question how the McDonalds Corporation can support a 
     lease agreement which is itself under review by the court. In 
     brief, the Governor initially signed what he thought was a 9-
     year lease agreement with an option of renewal for an 
     additional 20 years plus. However, the legal counsel for the 
     local Senate noted that the proposed lease was actually for 
     ten years and, as such, local law requires the lease to be 
     approved by the local legislature. Consequently, the counsel 
     for the Senate filed suit in court challenging the validity 
     of the proposed lease. While the case was pending in court, 
     the Governors counsel re-drafted the lease agreement to make 
     sure the terms of the lease was for less than ten years so 
     that it did not require legislative approval. ASGs attorneys 
     petitioned the court to dismiss the Senates lawsuit but the 
     court denied the request so this matter is also pending.
       While it was my hope that the McDonalds Corporation would 
     have interceded and resolved this situation more than a year 
     ago for no other reason than it was the right thing to do, I 
     would strongly urge you to take action now before this 
     situation brings unwanted embarrassment to the McDonalds 
     Corporation. I would also suggest that you direct your 
     Managing Director for McDonalds Australia to be more 
     responsive to the concerns of the people of American Samoa. I 
     am extremely disappointed that he did not even offer a 
     courtesy response to my letter of almost a year ago and I 
     consider his lack of interest in this issue to be 
     unprofessional and unbecoming of a corporate official of the 
     McDonalds Corporation.
       Considering that this issue now involves the federal 
     government and based on documentation provided by NPS which I 
     am convinced is correct, I am trying my best to prevent a 
     confrontation between the McDonalds Corporation, ASG, and the 
     US Department of the Interior. For this reason, I am making a 
     final appeal to you and I am hopeful that at your earliest 
     convenience you will work to favorably resolve this matter 
     and support efforts to put an end to construction of a new 
     McDonalds at Utulei Beach Park.
       The Congressman concluded his letter by saying, As I have 
     previously stated, the people of American Samoa will support 
     the construction of a new McDonalds in American Samoa at any 
     other location. We also applaud the many valuable 
     contributions McDonalds has made in American Samoa and wish 
     you continued success.
                                 ______
                                 

                     [Press Release, July 24, 2006]

  Faleomavaega Thanks US National Park Service for Responding to His 
   Concerns About Its Recent Meeting With Governor Togiola Regarding 
                            McDonalds Lease

       Congressman Faleomavaega announced today that he wishes to 
     thank the US National Park Service (NPS) for responding to 
     his concerns about its recent meeting with Governor Togiola 
     in Oakland, California on Friday June 23, 2006 regarding the 
     McDonalds lease and Utulei Beach Park. The NPS provided 
     clarification about its meeting in a letter dated July 6, 
     2006 which was addressed to Governor Togiola and copied to 
     Congressman Faleomavaega, Deputy Secretary of the Interior 
     Lynn Scarlett, and Deputy Assistant Secretary Papalii David 
     Cohen, Office of Insular Affairs (OIA) at the DOI.
       I thank the NPS for responding to my concerns which I 
     raised in a letter to US Secretary of the Interior Dirk 
     Kempthorne on June 29, 2006, about a week after the Governor 
     met with OIA and the NPS behind closed doors to discuss the 
     proposed construction of a McDonalds at Utulei Beach Park, 
     Faleomavaega said. While I appreciate that the meeting was 
     held as a result of Acting Secretary of the Interior Lynn 
     Scarletts letter to Governor Togiola dated June 7, 2006 
     regarding ASGs failure to comply with the legal requirements 
     of the Land and Water Conservation Fund (LWCF) Act, I stated 
     that the public wants to know what federal and local 
     officials are doing to resolve this problem.
       I also stated that I expect the DOI to strictly adhere to 
     the standards of conversion, or replacements of lands, as 
     outlined by federal law. While I was also hopeful that 
     Governor Togiola would protect American Samoas only beach for 
     future generations, federal law leaves him with two 
     alternatives. One, he can propose construction of a McDonalds 
     at a site other than Utulei Beach or, two, he must give up 
     valuable ASG land of similar value and recreational use in 
     order to commercially develop Utulei Beach if he can find ASG 
     land that meets the strict criteria set forth for conversion, 
     Faleomavaega said.
       Federal law requires the NPS to consider the Governors 
     proposal to offer up replacement lands but I have made it 
     clear that I am opposed to any proposal or framework of 
     resolution that lowers the standards of conversion. I have 
     also urged the DOI to let conversion negotiations proceed 
     between NPS and ASG without undue influence.
       In response to the concerns I raised in my letter, NPS has 
     responded appropriately and provided clarification which 
     shows that NPS is committed to adhering strictly to the law. 
     In fact, The NPS makes it clear that the framework of 
     resolution which resulted from the Governors meeting of June 
     23rd is only an outline and a brief summary of their 
     conversation. NPS states, we feel other details of our 
     conversation are important to keep in mind as we move 
     forward.
       Some of these details include the following statements made 
     by NPS in its letter of July 6, 2006 to Governor Togiola:
       We are obliged both philosophically and legally to preserve 
     the publics outdoor recreation estate. The National Park 
     Services ability to authorize conversions of LWCF property is 
     strictly circumscribed by the LWCF Act, and in particular the 
     regulations found in Title 36 of the Code of Federal 
     Regulations, Part 59. The details of these requirements were 
     referenced in our conversation in terms of the proposed 
     replacement property needing to meet LWCF standards. We spoke 
     specifically at the time of the necessity of having 
     sufficiently considered alternatives to converting parkland, 
     the need for appraisals for all properties involved to insure 
     that the replacements are of at least equal fair market 
     value, the necessity of any replacement property meeting the 
     criterion of reasonably equivalent usefulness and location, 
     and that the proposal be in conformity with the Territorys 
     Comprehensive Outdoor Recreation Plan.
       The NPS further outlined nine criteria that govern 
     conversions and informed Governor Togiola that it will need 
     documentation showing that these criteria have been met. The 
     NPS also said that--
       Being that Utulei Beach Park is the only beach affording 
     public access to good swimming and recreational boating on 
     Tutuila Island, the threshold for replacement property to 
     meet the reasonably equivalent usefulness and location 
     criterion is quite high. The Government of American Samoa 
     must make the case that this criterion is met by any 
     replacement property in another location.
       In offering replacement lands, the NPS stated that Governor 
     Togiola said other locations had been considered for the 
     McDonalds lease but that locating it at Utulei Beach is 
     critical to the overall redevelopment plans for the Utulei 
     and Fagatogo area.
       Based on this representation, the NPS said it would 
     consider the Governors proposal as required by federal law, 
     Faleomavaega said. However, in the same letter, the NPS also 
     stated that in its discussion with the Governor, the Governor 
     said that he did not intend for there to be any further 
     commercial development of Utulei Park other than the proposed 
     McDonalds.
       On the one hand, the Governor says he needs to construct a 
     McDonalds at Utulei Beach because this is critical to the 
     overall redevelopment plans for the Utulei and Fagatogo area 
     and, on the other hand, he says that the McDonalds 
     corporation will be the only corporation allowed to build at 
     Utulei Beach. How fair is this to Kentucky Fried Chicken, 
     Pizza Hut, and the rest of our local business owners? 
     Faleomavaega asked.
       Do our business owners have a say in this? What about our 
     Fono? Has the Governor submitted an economic development plan 
     to our Legislature for consideration? If not, why not? Also, 
     what is the role of the Fono in determining what lands the 
     Governor may offer up as replacement lands for Utulei Beach?
       Whatever direction this takes, I believe the NPS has an 
     obligation to keep the public informed and I will do my part 
     to make sure this is so. For now, I am pleased that the NPS 
     has agreed to provide an initial review of proposed 
     replacement properties that would indicate if there are any 
     obvious facts that would render them ineligible before funds 
     are expended to obtain surveys, appraisals, recreational 
     development plans, and environmental compliance. Most 
     importantly, I am pleased that the NPS has underscored the 
     importance of the Governors commitment to prohibiting any 
     ground disturbing activity related to the McDonalds lease 
     until NPS has completed the review and approval process for 
     replacement properties.
       Again, I thank the NPS for providing clarification on its 
     recent meeting with the Governor and I am encouraged that the 
     NPS is taking this matter very seriously. I am also 
     encouraged that the NPS has documented its meeting with the 
     Governor in its July 6th letter so that all facts pertaining 
     to this historic issue can be made part of the public record. 
     Utulei Beach is the peoples beach and, as such, our people 
     have every right to know how ASG officials make decisions 
     that will impact, for generations to come, the use of the 
     most scenic and only beach park in American Samoa.
       Our people also have every right to know what local lands 
     will be given away to the

[[Page 16238]]

     federal government to accommodate the needs of one business 
     owner. For this reason, a full copy of the NPS letter dated 
     July 6, 2006 is posted on my website, Faleomavaega concluded.
                                 ______
                                 

                     [Press Release, May 19, 2006]

  House Passes Interior Appropriations Bill With Over $33 Million for 
 American Samoa; Urges Accountability of Federal Funds and Discourages 
                 Commercial Development of Utulei Beach

       Congressman Faleomavaega announced today that late last 
     night the House Committee on Interior Appropriations passed 
     by a vote of 293 to 128 H.R. 5386, the FY 2007 Interior 
     Appropriations bill which includes over $33 million for the 
     operations of the American Samoa Government and Capital 
     Improvement Projects (CIPS). The bill also includes language 
     which urges greater accountability of ASG funds and 
     discourages the commercial development of Utulei Beach Park.
       As I said in my release of May 16th, ASG continues to be 
     the only government that receives a direct appropriation from 
     Congress for the operations of its government despite being 
     designated as high risk, the Congressman said. As a result of 
     this support, I am hopeful that our local government will 
     provide better accountability and I commend ASG for the 
     progress it is making.
       At this time, I thank the House Committee on Interior 
     Appropriations for including my request to set aside $500,000 
     of the $22,880,000 ASG will receive for government 
     operations. As stated in the Committee report, The Committee 
     expects the government of American Samoa will use no less 
     than $500,000 of this funding for physical education 
     activities at school. I am pleased by this outcome since our 
     public schools lack adequate facilities, equipment and 
     personnel to provide quality health and education programs 
     which are critical to the physical, mental, and social 
     development of our students. As a result of this funding, I 
     am hopeful that our local DOE will have the support it needs 
     to purchase equipment and establish sports programs for the 
     benefit of our children.
       I am also hopeful that our local leaders will work quickly 
     to resolve the McDonalds issue that has now drawn 
     Congressional attention. Again, I like McDonalds and I 
     applaud the many valuable contributions McDonalds has made in 
     American Samoa. I also support construction of a new 
     McDonalds anywhere in American Samoa but Utulei Beach.
       The fact is Utulei Beach is a federally protected park area 
     and, by contractual agreement, cannot be used for any 
     commercial purpose. Therefore, the current proposal to 
     construct a McDonalds within a federally protected park area 
     is a potential violation of ASGs agreement with the US 
     National Park Service (NPS) and, as such, is an issue that 
     has escalated into a federal problem that must be 
     expeditiously resolved.
       In other words, the current debate about McDonalds is a 
     debate about location. If McDonalds builds on land solely-
     controlled by ASG, then its a local issue. But if McDonalds 
     seeks to build on land that has been protected as a federal 
     park area, then its a federal issue and this is why Congress 
     has taken an interest.
       Put another way, ASG, by choice, entered into an agreement 
     with the NPS to protect Utulei Beach and now Congress has 
     spoken out in the FY 2007 Interior Appropriations bill to 
     encourage the American Samoa government to not allow 
     commercial development of waterfront areas of Utulei Beach 
     Park because this site has such high recreational and natural 
     values, and it has enjoyed funding from the Land and Water 
     Conservation Fund Program which indicates that this park land 
     should be dedicated to public outdoor recreational use in 
     perpetuity.
       While it is unfortunate that construction of a new 
     McDonalds in our Territory has received Congressional 
     attention and while it is worrisome that the US Congress has 
     taken notice that ASG received federal funds to preserve 
     Utulei Beach but is not being accountable for those funds, I 
     believe it is in the best interest of our Territory to 
     resolve this matter quickly so that other federal funding we 
     receive will not be jeopardized.
       As I said in a previous release, American Samoa, on a per 
     capita basis, receives more federal education funding per 
     pupil than any other State or Territory. Our health care 
     funding has also doubled and recently we were able to 
     significantly increase our Medicaid funding. With the amount 
     of support and funding we are receiving, I am convinced if 
     there is better accountability of federal funds we will see 
     significant improvements in this Territory.
       Again, I thank my colleagues for their support and, as this 
     bill now moves to the Senate for consideration, I will 
     continue to work to make sure American Samoa receives its 
     fair share of federal dollars, Congressman Faleomavaega 
     concluded.

                          ____________________