89–010 

Calendar No. 296 

111TH CONGRESS REPORT " ! SENATE 2d Session 111–146 

VIRGIN ISLANDS NATIONAL PARK 

MARCH 2, 2010.—Ordered to be printed 

Mr. BINGAMAN, from the Committee on Energy and Natural 

Resources, submitted the following 

R E P O R T 

[To accompany H.R. 714] 

The Committee on Energy and Natural Resources, to which was 

referred the Act (H.R. 714) to authorize the Secretary of the Interior to lease certain lands in Virgin Islands National Park, and for 

other purposes, having considered the same, reports favorably 

thereon with amendments and recommends that the Act, as 

amended, do pass. 

The amendments are as follows: 

1. On page 2, line 12, insert ‘‘(as amended, assigned, and assumed)’’ before the period. 

2. On page 2, line 21, insert ‘‘with the owner of the retained use 

estate’’ before ‘‘for’’. 

3. On page 3, line 19, strike ‘‘with’’ and insert ‘‘without’’. 

4. On page 4, line 5, strike ‘‘and’’. 

5. On page 4, between lines 5 and 6, insert the following: 

(E) include provisions to ensure the protection of the 

natural, cultural, and historic features of the resort and 

associated property, consistent with the laws and policies 

applicable to property managed by the National Park Service; and 

6. On page 4, line 6, strike ‘‘(E)’’ and insert ‘‘(F)’’. 

7. On page 5, line 3, strike ‘‘effective date’’ and insert ‘‘award’’. 

8. On page 5, line 24, strike ‘‘that’’ and insert ‘‘who’’. 

PURPOSE

The purpose of H.R. 714 is to authorize the Secretary of the Interior to lease the Caneel Bay resort in Virgin Islands National Park. 


smartinez on DSKB9S0YB1PROD with REPORTS
2 

BACKGROUND AND NEED

The Caneel Bay resort is located on a 170-acre peninsula within 

Virgin Islands National Park, on the island of St. John. The resort 

was established in 1956 by Laurance Rockefeller and the Jackson 

Hole Preserve, a non-profit organization supported by the Rockefeller family. The Jackson Hole Preserve also purchased and donated most of the land that is now included within the park, although initially, the Caneel Bay parcel was not included within the 

park. 

In 1983, the Jackson Hole Preserve donated the land at Caneel 

Bay to the Federal Government for inclusion in the park; however, 

it created a retained use estate and reserved the right to continue 

the resort operations through 2023. Under the terms of the reserved use estate, once it expires in 2023 the owner of the estate 

must cease operations and donate the buildings and other property 

covered by the retained use estate to the National Park Service. 

In 2004, Jackson Hole Preserve sold the retained use estate to 

CBI Acquisition LLC, which now operates the Caneel Bay resort. 

CBI has a management contract with Rosewood Hotels & Resorts 

to provide the day-to-day operation of the resort. 

H.R. 714 authorizes the Secretary of the Interior to enter into a 

non-competitive lease with the owner of the retained use estate for 

a term of up to 40 years, to provide for the continued operation and 

management of the Caneel Bay resort, if the Secretary determines 

that the lease will provide a greater long-term benefit to the park 

than allowing the retained use estate to expire. 

LEGISLATIVE HISTORY

H.R. 714, sponsored by Delegate Christensen, passed the House 

of Representatives by a voice vote on February 23, 2009. During 

the 110th Congress, the Committee considered similar legislation, 

H.R. 1143. The Subcommittee on National Parks of the Senate Energy and Natural Resources Committee held a hearing on that bill 

on June 17, 2008 (S. Hrg. 110–539), although no further action was 

taken. 

The Subcommittee on National Parks held a hearing on H.R. 714 

on July 15, 2009. (S. Hrg. 111–92). At its business meeting on December 16, 2009, the Committee on Energy and Natural Resources 

ordered H.R. 714 favorably reported with amendments. 

COMMITTEE RECOMMENDATION

The Committee on Energy and Natural Resources, in open business session on December 16, 2009, by a voice vote of a quorum 

present, recommends that the Senate pass H.R. 714, if amended as 

described herein. 

COMMITTEE AMENDMENTS

During its consideration of H.R. 714, the Committee adopted 8 

amendments which reflect the recommendations made by the National Park Service at the subcommittee hearing. Amendment #5 

adds a requirement that any lease entered into under this Act include provisions to ensure the protection of the natural, cultural, 

and historic features of the Caneel Bay resort and associated property, consistent with the laws and policies applicable to National 


smartinez on DSKB9S0YB1PROD with REPORTS
3 

Park System lands. The other seven amendments make technical, 

clarifying, or conforming changes. 

SECTION-BY-SECTION ANALYSIS

Section 1(a) defines key terms used in the bill. 

Subsection (b) authorizes the Secretary of the Interior to enter 

into a lease with the owner of the retained use estate for a period 

not to exceed 40 years, to provide for the continued management 

and operation of the Caneel Bay resort in Virgin Islands National 

Park, if the Secretary determines that the long-term benefit to the 

park would be greater by entering into the lease rather than allowing the retained use estate to expire and subsequently issuing a 

concessions contract. 

A lease entered into under the authority of this Act must comply 

with the terms and conditions specified in paragraph (b)(4), including that the lease be for the minimum number of years practicable; 

that the lease prohibit any transfer of the lease to another party 

without the written approval of the Secretary of the Interior; that 

the general character of the resort property remain unchanged, 

with no increase in the overall size of the resort or the number of 

guest accommodations; that the lease prohibit the sale of partial 

ownership shares or timeshares; that the lease include provisions 

to ensure the protection of the natural, cultural, and historic features of the resort, consistent with National Park System laws; and 

that the lease include any other terms and conditions the Secretary 

determines necessary to protect Virgin Islands National Park and 

the public interest. 

Subsection (c) requires the owner of the retained use estate, as 

a condition of the lease, to extinguish and relinquish to the Secretary of the Interior all rights under the retained use estate, and 

to transfer, without consideration, ownership of improvements on 

the retained use estate to the National Park Service. 

COST AND BUDGETARY CONSIDERATIONS

The following estimate of costs of this measure has been provided 

by the Congressional Budget Office: 

H.R. 714—An act to authorize the Secretary of the Interior to lease 

certain lands in Virgin Islands National Park 

H.R. 714 would authorize the National Park Service (NPS) to 

execute a lease with property owners at Caneel Bay on St. John 

in the Virgin Islands. Based on information provided by the NPS, 

CBO estimates that implementing the legislation would have no effect on discretionary spending. Enacting the legislation would increase both offsetting receipts (from lease payments) and direct 

spending of those receipts beginning in fiscal year 2010, but CBO 

estimates that any net effect on the federal budget would be negligible. Enacting H.R. 714 would not affect revenues. 

The legislation contains no intergovernmental or private-sector 

mandates as defined in the Unfunded Mandates Reform Act and 

would not affect the budgets of state, local, or tribal governments. 

Under the lease authorized by H.R. 714, the owners of the 

Caneel Bay Resort would continue to operate the facility, which is 

located within the boundary of the Virgin Islands National Park, 

for up to 40 years. The resort is currently operated under a reVerDate Nov 24 2008 07:23 Mar 04, 2010 Jkt 089010 PO 00000 Frm 00003 Fmt 6659 Sfmt 6602 E:\HR\OC\SR146.XXX SR146

smartinez on DSKB9S0YB1PROD with REPORTS
4 

tained use estate (RUE) that will expire at the end of fiscal year 

2023. The RUE was granted by the original owners of the resort 

when they donated the land under that facility to the NPS in 1983. 

The original RUE agreement did not provide for any lease payments to the federal government; the lease authorized by H.R. 714 

would both require such payments and authorize the NPS to use 

the proceeds without further appropriation for visitor services and 

other park expenses. 

The CBO staff contact for this estimate is Deborah Reis. The estimate was approved by Theresa Gullo, Deputy Assistant Director 

for Budget Analysis. 

REGULATORY IMPACT EVALUATION

In compliance with paragraph 11(b) of rule XXVI of the Standing 

Rules of the Senate, the Committee makes the following evaluation 

of the regulatory impact which would be incurred in carrying out 

H.R. 714. 

The Act is not a regulatory measure in the sense of imposing 

Government-established standards or significant economic responsibilities on private individuals and businesses. 

No personal information would be collected in administering the 

program. Therefore, there would be no impact on personal privacy. 

Little, if any, additional paperwork would result from the enactment of H.R. 714, as ordered reported. 

CONGRESSIONALLY DIRECTED SPENDING

H.R. 714, as reported, does not contain any congressionally directed spending items, limited tax benefits, or limited tariff benefits as defined in rule XLIV of the Standing Rules of the Senate. 

EXECUTIVE COMMUNICATIONS

The testimony provided by the National Park Service at the July 

15, 2009, Subcommittee hearing on H.R. 714 follows: 

STATEMENT OF KATHERINE H. STEVENSON, ACTING DEPUTY

DIRECTOR, SUPPORT SERVICES, NATIONAL PARK SERVICE, 

DEPARTMENT OF THE INTERIOR

Mr. Chairman, thank you for the opportunity to provide 

the Department of the Interior’s views on H.R.714, a bill 

to authorize the Secretary of the Interior to lease certain 

lands in Virgin Islands National Park, and for other purposes. 

The Department supports H.R. 714, with some minor 

amendments. 

This legislation would allow the Secretary of the Interior 

to enter into a lease with the current holder of a retained 

use estate for property at Caneel Bay within Virgin Islands National Park after the termination of the retained 

use estate and donation of all improvements to the National Park Service (NPS). The Caneel Bay resort is one of 

two large resorts on the island of St. John. Located on a 

150-acre peninsula on the northwest side of the island, 

this luxury resort has approximately 425 to 450 employees 

and serves as one of the primary economic engines for the 


smartinez on DSKB9S0YB1PROD with REPORTS
5 

U.S. Virgin Islands. A large number of employees travel 

daily to St. John from their residences on neighboring St. 

Thomas. The resort is also an Economic Development Center beneficiary and, as such, receives various tax exemptions from the Government of the Virgin Islands. 

Laurance Rockefeller established the Caneel Bay resort 

in 1956. In 1983, Jackson Hole Preserve, a Rockefeller corporation, donated the land at Caneel Bay to the United 

States Government for inclusion within Virgin Islands National Park and reserved to itself the right to continue its 

operations for 40 years under a retained use estate. Jackson Hole Preserve did not convey the improvements on the 

land to the United States at that time. The retained use 

estate will expire on September 30, 2023. The warranty 

deed stipulates that when the retained use estate terminates, the owner of the retained use estate must donate 

the buildings and other improvements to the NPS. 

Enactment of H.R. 714 would allow the current holder 

of the retained use estate to negotiate a long-term lease, 

up to 40 years, with the NPS that could extend the Caneel 

Bay Resort operation well beyond the year 2023. Such an 

extension could allow the leaseholder to secure financing 

to undertake capital improvements that would most likely 

not be possible financially under the remaining term of the 

current retained use estate. 

The NPS has evaluated various options for the future 

use and management of the Caneel Bay property. Based 

upon a value analysis, we believe that the continued future operation of Caneel Bay as a resort under a lease 

would provide the greatest advantage to the NPS and the 

U.S. Virgin Islands. A lease could provide economic and 

administrative benefits to the NPS and the lessee that are 

not available or not as viable as under a retained use estate or a concession contract, two of the other options that 

were examined. 

Legislation is necessary because the NPS does not have 

the authority to enter into a noncompetitive lease under 

existing regulations (36 CFR § 18, Leasing of Properties in 

Park Areas). The only exceptions to competitive leasing 

under the regulations are for leases to nonprofit organizations or units of government, and for leases of duration of 

60 days or less. 

We would like to stress that we are supporting this legislation because the Caneel Bay resort is an exceptional 

case. In general, where leasing has been determined to be 

appropriate in a national park unit, we support leasing 

through the usual competitive process, consistent with existing law and regulations. 

H.R. 714 requires that the operations and maintenance 

of the resort be conducted in a manner consistent with the 

preservation and conservation of the resources and values 

of the park. Additionally, the lease authorized by the bill 

would address the continued protection, preservation, and 

restoration of the property’s structures, many of which are 

more than 50 years old, and may be eligible for the NaVerDate Nov 24 2008 07:23 Mar 04, 2010 Jkt 089010 PO 00000 Frm 00005 Fmt 6659 Sfmt 6969 E:\HR\OC\SR146.XXX SR146

smartinez on DSKB9S0YB1PROD with REPORTS
6 

tional Register of Historic Places. The lease also would address the fair market value rent of the property, constraints on development of property during the term of the 

lease, and the ability to transfer the lease in the future. 

The legislation also provides for the rental proceeds to 

be retained by the Virgin Islands National Park and used 

for visitor services and resource protection. It would require congressional notification at least 60 days prior to 

the effective date of the lease, similar to the requirement 

for large concession contracts. And, it would require the 

property’s conversion to a concession operation after the 

lease expires if the Secretary determines continuation of 

commercial services at the resort to be appropriate. When 

the current retained use estate was created, there were 

three small properties that are integral to the operation of 

the Caneel Bay resort that were not included. These properties could be acquired by the NPS and included under 

the terms of the lease that would be authorized by H.R. 

714. 

We appreciate the many changes that have been made 

to this legislation since it was first introduced in the 110th 

Congress to help assure that the interests of Virgin Islands National Park, and the general public, would be protected if the Caneel Bay resort property is leased on a noncompetitive basis. We would like to work with the subcommittee on a few minor changes that would further clarify the bill language. 

Mr. Chairman, this concludes my prepared remarks. I 

would be pleased to answer any questions you or other 

members of the subcommittee may have. 

CHANGES IN EXISTING LAW

In compliance with paragraph 12 of rule XXVI of the Standing 

Rules of the Senate, the Committee notes that no changes in existing law are made by H.R. 714 as ordered reported. 

Æ 


smartinez on DSKB9S0YB1PROD with REPORTS