IB 

Union Calendar No. 816 

115TH CONGRESS 

2D SESSION H. R. 4731 

[Report No. 115–1049] 

To extend the retained use estate for the Caneel Bay resort in St. John, 

United States Virgin Islands, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 21, 2017 

Ms. PLASKETT introduced the following bill; which was referred to the 

Committee on Natural Resources 

NOVEMBER 27, 2018 

Reported with an amendment, committed to the Committee of the Whole 

House on the State of the Union, and ordered to be printed 

[Strike out all after the enacting clause and insert the part printed in italic] 

[For text of introduced bill, see copy of bill as introduced on December 21, 2017] 


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•HR 4731 RH

A BILL 

To extend the retained use estate for the Caneel Bay resort 

in St. John, United States Virgin Islands, and for other 

purposes. 


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•HR 4731 RH

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. EXTENSION OF RETAINED USE ESTATE. 

4 (a) EXTENSION REQUIRED.—Not later than 90 days 

5 after a request by the grantor, the Secretary of the Interior 

6 shall extend the retained use estate in accordance with this 

7 section. 

8 (b) REQUIREMENTS.—The extension under subsection 

9 (a) shall— 

10 (1) except as provided in paragraph (2), be effec11 tive for the 60-year period beginning on the date the 

12 retained use estate would, but for the extension under 

13 this section, expire; 

14 (2) be subject to the terms of the retained use es15 tate, including the right of the grantor to terminate 

16 the retained use estate in accordance with the terms 

17 thereof; and 

18 (3) require the grantor to pay to the United 

19 States, in quarterly installments for the period of the 

20 extension, fair market value rental for use of the 

21 premises for operation and management of resort fa22 cilities and services in an amount equal to— 

23 (A) for each of the first 15 years of the ex24 tension, a percentage of the gross revenues of the 

25 resort in accordance with subsections (c) and (d) 


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•HR 4731 RH

1 to be determined no later than 90 days after the 

2 date on which the extension is granted under 

3 subsection (a) by— 

4 (i) a written agreement between the 

5 Secretary and the grantor; or 

6 (ii) if the Secretary and the grantor 

7 are unable to agree on such a percentage by 

8 the date that the extension is granted under 

9 subsection (a), through binding arbitration 

10 using procedures specified in section 51.51 

11 of title 36, Code of Federal Regulations; and 

12 (B) for each year of the extension thereafter, 

13 the amount determined under subparagraph (A), 

14 except that— 

15 (i) such amount shall be adjusted if re16 quested by the Secretary or the grantor; 

17 (ii) any such adjustment shall be deter18 mined— 

19 (I) through a written agreement 

20 between the Secretary and the grantor; 

21 or 

22 (II) if the Secretary and the 

23 grantor are unable to agree on such an 

24 adjustment after a 60-day period for 

25 negotiation (or a longer period for neVerDate Sep 11 2014 23:36 Nov 27, 2018 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6203 E:\BILLS\H4731.RH H4731

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•HR 4731 RH

1 gotiation agreed upon by the Secretary 

2 and the grantor), through binding ar3 bitration between the Secretary and the 

4 grantor using the arbitration proce5 dures specified in section 51.51 of title 

6 36, Code of Federal Regulations; and 

7 (iii) no more than one adjustment may 

8 be made under this subparagraph in any 

9 15-year period. 

10 (c) CALCULATION OF FAIR MARKET VALUE RENTAL.— 

11 The initial payment required under subsection (b)(3)(A) 

12 and any adjustment under subsection (b)(3)(B) shall reflect 

13 the fair market value of a land lease for hotel use, as deter14 mined by an appraisal by an independent qualified ap15 praiser who is selected jointly by the Secretary and the 

16 grantor and shall reflect— 

17 (1) any restrictions on the use of the property or 

18 terms of the retained use estate that limit the value 

19 or highest and best use of the property; 

20 (2) any amounts expended or to be expended by 

21 the grantor for preservation, maintenance, restoration 

22 (including site restoration), improvement (including 

23 construction), or repair and related expenses to the 

24 extent that such amounts are for the resort; and 


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1 (3) the remaining term of the extended retained 

2 use estate. 

3 (d) PAYMENTS.—Payments under subsection (b)(3) 

4 shall— 

5 (1) be due— 

6 (A) except as provided in subparagraph 

7 (B), 60 days after the end of the applicable quar8 ter; and 

9 (B) in the case of the last quarter of each 

10 calendar year (or the last quarter before the re11 tained use estate expires), 90 days after the end 

12 of the calendar year (or the end of the retained 

13 use estate in the year that the retained use estate 

14 expires); 

15 (2) be based on actual gross revenues for the pre16 ceding quarter; 

17 (3) in the case of a payment due under para18 graph (1)(B), include any adjustment that may be re19 quired after an audit of the gross annual revenues for 

20 the preceding year; and 

21 (4) be deposited into the General Treasury. 

22 (e) DEFINITIONS.—In this section— 

23 (1) each of the terms ‘‘retained use estate’’ and 

24 ‘‘resort’’ has the meaning given such term in section 

25 1 of Public Law 111–261 (16 U.S.C. 398d note); and 


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•HR 4731 RH

1 (2) the term ‘‘grantor’’ means the holder of the 

2 retained use estate. 


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Union Calendar No. 816 

115TH CONGRESS 

2D SESSION H. R. 4731 

[Report No. 115–1049] 

A BILL 

To extend the retained use estate for the Caneel 

lands, and for other purposes. Bay resort in St. John, United States Virgin IsNOVEMBER 27, 2018 

Reported with an amendment, committed to the Comand ordered to be printed mittee of the Whole House on the State of the Union, 


dlhill on DSK3GLQ082PROD with BILLS