Concession Contracts; Implementation of Alternate Valuation Formula for Leasehold Surrender Interest in the Signal Mountain Lodge and Leek's Marina Proposed Concession Contract, Grand Teton National Park, 29573-29574 [2010-12703]
Download as PDF
<![CDATA[
Federal Register / Vol. 75, No. 101 / Wednesday, May 26, 2010 / Notices
be made publicly available at any time.
While you can ask us in your comment
to withhold your personal identifying
information from public review, we
cannot guarantee that we will be able to
do so.
Jean Sonneman,
Acting Information Collection Clearance
Officer.
[FR Doc. 2010–12707 Filed 5–25–10; 8:45 am]
BILLING CODE 4310–84–P
DEPARTMENT OF THE INTERIOR
National Park Service
Concession Contracts; Implementation
of Alternate Valuation Formula for
Leasehold Surrender Interest in the
Signal Mountain Lodge and Leek’s
Marina Proposed Concession
Contract, Grand Teton National Park
National Park Service; Interior.
Notice.
AGENCY:
wwoods2 on DSK1DXX6B1PROD with NOTICES_PART 1
ACTION:
SUMMARY: The National Park Service
(NPS), by notice in the Federal Register
dated February 1, 2010, invited public
comments on a proposed alternative
formula for the valuation of leasehold
surrender interest (LSI) pursuant to
authority contained in Public Law 105–
391 enacted in 1998 (the 1998 Act) to
be included in its proposed concession
contract GRTE003–11 for operation of
the Signal Mountain Lodge and Leeks
Marina at Grand Teton National Park
(new contract). NPS invites further
public comment in the proposed LSI
alternative.
DATES: Public comments will be
accepted on or before June 25, 2010.
ADDRESSES: Send comments to Ms. Jo
Pendry, Chief, Commercial Services
Program, National Park Service, 1201
Eye Street, NW., 11th Floor,
Washington, DC 20005, or via e-mail at
jo_pendry@nps.gov or via fax at 202–
371–2090.
FOR FURTHER INFORMATION CONTACT: Jo
Pendry, Chief Commercial Services
Program, 202–513–7156.
SUPPLEMENTARY INFORMATION: Public
comments received in response to the
February 1, 2010, Federal Register
notice regarding the proposed LSI
alternative expressed concerns, among
other matters, that the notice did not
contain a sufficient explanation of the
relationship of the proposed LSI
alternative to the objectives of providing
a fair return to the government and
fostering competition for the new
contract. For this reason, NPS considers
it appropriate to provide a further
opportunity for public comment on the
VerDate Mar<15>2010
15:16 May 25, 2010
Jkt 220001
proposed LSI alternative. Although
NPS, among other matters, is
considering the possibility of changing
the currently proposed LSI provisions of
the new contract with respect to the
treatment of fixtures for LSI purposes,
the NPS will not make a final
administrative decision in regard to the
proposed LSI alternative until after full
consideration of all public comments
received in response to both this and the
February 1, 2010, Federal Register
notice. The submission date for
proposals for the new contract has been
extended to August 10, 2010, by notice
in FedBizOpps (FedBizOpps.gov) under
Solicitation No. GRTE003–11 published
on April 29, 2010.
The standard formula for LSI value for
applicable improvements provided by a
concessioner under a National Park
Service concession contract as defined
in 36 CFR Part 51 (‘‘standard LSI
formula’’) is as follows:
(1) The initial construction cost of the
related capital improvement;
(2) Adjusted by (increased or
decreased) the same percentage increase
or decrease as the percentage increase or
decrease in the Consumer Price Index
from the date the Director approves the
substantial completion of the
construction of the related capital
improvement to the date of payment of
the leasehold surrender interest value;
(3) Less depreciation of the related
capital improvement on the basis of its
condition as of the date of termination
or expiration of the applicable leasehold
surrender interest concession contract,
or, if applicable, the date on which a
concessioner ceases to utilize a related
capital improvement (e.g., where the
related capital improvement is taken out
of service by the Director pursuant to
the terms of a concession contract).
However, Section 405(a)(4) of Public
Law 105–391 authorizes the inclusion of
alternative LSI value formulas in
concession contracts (such as the new
contract) estimated to have an LSI value
in excess of $10,000,000. Under this
authority, the proposed LSI alternative
is as follows:
(1) Initial LSI Value. The reduction of
the initial LSI value under the new
contract on a monthly straight line
depreciation basis applying a 40-year
recovery period regardless of asset class.
There is no adjustment of the initial LSI
value as a result of the installation
(including replacement) of fixtures in
the related capital improvements during
the term of the proposed contract; and
(2) New LSI Value. The reduction of
the LSI value in any new structures or
major rehabilitations constructed during
the term of the new contract to be based
on straight line depreciation and also
PO 00000
Frm 00067
Fmt 4703
Sfmt 4703
29573
apply a 40-year recovery period (on a
monthly basis) with no asset class
distinctions. The construction cost of
new capital improvements will include
the costs of installed fixtures. Any
installation (or replacement) of fixtures
after the initial construction would not
alter the established LSI value in the
improvements.
Section 405(a)(4) of the 1998 Act
requires NPS, in certain circumstances,
to determine that use of the LSI
alternative, in comparison to the
standard LSI formula, is necessary in
order to provide a fair return to the
government and to foster competition
for the new contract by providing a
reasonable opportunity for profit to the
new concessioner.
With regard to a fair return to the
government, under the standard LSI
formula the amount of money paid (by
the government, directly or indirectly)
for LSI as of the expiration of the new
contract is inevitably speculative at the
time of contract solicitation, contract
award, and during the contract term.
This is because the future rate of the
Consumer Price Index (CPI), the amount
of future physical depreciation that will
occur, and the cost to cure such future
physical depreciation, must all be
estimated in advance of the new
contract by both NPS and prospective
concessioners.
As a consequence, if the NPS were to
establish the required minimum
franchise fee for the new contract under
the terms of the standard LSI formula,
that minimum fee necessarily would
incorporate speculative estimates of
these factors. Likewise, if a prospective
concessioner offered to meet or exceed
the minimum franchise fee established
by NPS under the standard LSI formula,
its business decision would necessarily
be made in reliance on speculative
estimates of future CPI and future
physical depreciation of LSI
improvements.
If the NPS depreciation and CPI
assumptions made at the time of
contract solicitation ultimately prove to
be inaccurate, its minimum franchise
fee will result in a less than fair return
to the government. NPS therefore
believes, subject to review of public
comments, that the proposed LSI
alternative, in comparison to the
standard LSI formula, will better
provide a fair return to the government
under the new contract.
NPS also believes (again, subject to
review of public comments) that
eliminating the speculative aspect of LSI
value will help foster competition for
the new contract by providing a
reasonable opportunity to make a profit.
This is because prospective
E:\FR\FM\26MYN1.SGM
26MYN1
wwoods2 on DSK1DXX6B1PROD with NOTICES_PART 1
29574
Federal Register / Vol. 75, No. 101 / Wednesday, May 26, 2010 / Notices
concessioners will know not only the
amount of money they will be obliged
to pay the prior concessioner for
existing LSI under the terms of the new
contract, but also will know with a high
degree of certainty how much money
they will recover from this payment
upon the expiration of the new contract
(based on the 40-year amortization
period). The proposed LSI alternative
effectively eliminates the speculation
about physical depreciation and CPI
that is required for proposed contracts
under the standard LSI formula. The
resulting lower risk and greater certainty
in the business opportunity will foster
competition for the new contract by
providing a reasonable opportunity to
make a profit.
The proposed LSI alternative is
projected to provide approximately the
same rate of return for the new
concessioner as the standard LSI
formula. This is because, in developing
the minimum franchise fee under the
proposed LSI alternative, NPS estimated
that the new contract would provide the
new concessioner with a reasonable
opportunity to make a net profit. This
estimate took into consideration, among
other matters, applicable industry rate
of return expectations, the purchase
price of the existing LSI improvements,
and the LSI value that will be payable
to the concessioner after contract
expiration under the proposed LSI
alternative. If the standard LSI formula
were utilized, the projected LSI value
payment to the new concessioner would
necessarily be much higher, resulting in
a much higher minimum franchise fee
for the new contract.
In other words, the lower LSI value
payment upon contract expiration under
the proposed LSI alternative (as
opposed to the standard LSI formula)
results in a lower minimum franchise
fee, and achieves the same approximate
projected rate of return to the
concessioner. The proposed LSI
alternative results in increased cash
flows to the concessioner during the
entire term of the contract, while the
standard LSI formula provides a higher
payment of LSI at the expiration of the
contract.
The proposed LSI alternative, if
adopted by NPS, would be applicable
only to the new contract, GRTE003–11.
NPS has made no decision to apply the
proposed LSI alternative or any other
LSI alternative to future concession
contracts. If the same or other
alternative LSI formulas are considered
for utilization in subsequent contracts
pursuant to Section 405(a)(4) of the
1998 Act, opportunities for public
comment will be provided as required.
NPS will provide notice of its final
VerDate Mar<15>2010
15:16 May 25, 2010
Jkt 220001
decision regarding the LSI provisions of
the new contract in the Federal Register
and/or in FedBizOpps (FedBizOpps.gov
under Solicitation No. CC–GRTE003–
11).
Before including your address, phone
number, e-mail address, or other
personal identifying information in your
comment, you should be aware that
your entire comment—including your
personal identifying information—may
be made publicly available at any time.
While you can ask us in your comment
to withhold your personal identifying
information from public review, we
cannot guarantee that we will be able to
do so.
Daniel N. Wenk,
Deputy Director, Operations.
[FR Doc. 2010–12703 Filed 5–25–10; 8:45 am]
BILLING CODE 4312–53–P
DEPARTMENT OF THE INTERIOR
National Park Service
Final Legislative Environmental Impact
Statement for the Harvest of GlaucousWinged Gull Eggs by the Huna Tlingit
in Glacier Bay National Park
National Park Service, Interior.
Notice of Availability of the
Final Legislative Environmental Impact
Statement for the Harvest of GlaucousWinged Gull Eggs by the Huna Tlingit
in Glacier Bay National Park.
AGENCY:
ACTION:
SUMMARY: The National Park Service
(NPS) announces the availability of a
final Legislative Environmental Impact
Statement (LEIS) for the harvest of
glaucous-winged gull eggs by the Huna
Tlingit in Glacier Bay National Park.
The document describes and analyzes
the environmental impacts of a
preferred alternative and one additional
action alternative for managing a limited
harvest of glaucous-winged gull eggs. A
no action alternative is also evaluated.
This notice announces the availability
of the final LEIS.
DATES: A Record of Decision will be
made no sooner than 30 days after the
date the Environmental Protection
Agency’s Notice of Availability for this
final LEIS appears in the Federal
Register.
The final LEIS may be
viewed online at https://
parkplanning.nps.gov. Hard copies of
the final LEIS are available on request
from the address below.
FOR FURTHER INFORMATION CONTACT:
Mary Beth Moss, Project Manager,
Glacier Bay National Park and Preserve,
Telephone: (907) 723–1777.
ADDRESSES:
PO 00000
Frm 00068
Fmt 4703
Sfmt 4703
The NPS
has prepared an LEIS to analyze the
effects of authorizing the limited
collection of glaucous-winged gull eggs
within Glacier Bay National Park by
Hoonah Indian Association (HIA; the
federally recognized government of the
Huna Tlingit) tribal members. Glacier
Bay is the traditional homeland of the
Huna Tlingit who traditionally
harvested eggs there prior to park
establishment. The practice was
curtailed in the 1960s, as the Migratory
Bird Treaty Act and federal regulations
prohibit it. In the late 1990s, at the
behest of tribal leaders, the NPS agreed
to explore ways to authorize this
important cultural tradition. Section 4
of the Glacier Bay National Park
Resource Management Act of 2000
directed the Secretary of Interior, in
consultation with local residents, to
assess whether gull eggs could be
collected in Glacier Bay National Park
on a limited basis without impairing the
biological sustainability of the gull
population. The Act further requires
that the Secretary submit
recommendations for legislation to
Congress if the study determines that
gull egg harvest could occur without
impairing the biological sustainability of
the park’s gull population. NPS
commissioned ethnographic and
biological studies to inform the analysis
included in this LEIS.
The NPS outlined a range of
alternatives based on project objectives,
park resources and values, and public
input and analyzed the impacts each
would have on the biological and
human environment.
Alternative 1: No Action: This
alternative serves as a baseline for
evaluating the impacts of the action
alternatives. This alternative would not
authorize the harvest of glaucouswinged gull eggs in Glacier Bay National
Park. Glaucous-winged gulls would
continue to breed in Glacier Bay
without human disturbance.
Alternative 2: This alternative would
propose legislation to authorize the
annual harvest of glaucous-winged gull
eggs at up to two designated locations
on a single pre-selected date on or
before June 9 of each year.
Alternative 3: NPS Preferred
Alternative: Alternative 3 would
propose legislation to authorize the
annual harvest of glaucous-winged gull
eggs at up to five designated locations
in Glacier Bay National Park on two
separate dates. A first harvest visit
would be authorized to occur at each of
the open sites on or before the 5th day
following onset of laying as determined
by NPS staff monitoring a reference site.
A second harvest at the same sites
SUPPLEMENTARY INFORMATION:
E:\FR\FM\26MYN1.SGM
26MYN1
]]>Agencies
[Federal Register Volume 75, Number 101 (Wednesday, May 26, 2010)]
[Notices]
[Pages 29573-29574]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-12703]
-----------------------------------------------------------------------
DEPARTMENT OF THE INTERIOR
National Park Service
Concession Contracts; Implementation of Alternate Valuation
Formula for Leasehold Surrender Interest in the Signal Mountain Lodge
and Leek's Marina Proposed Concession Contract, Grand Teton National
Park
AGENCY: National Park Service; Interior.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: The National Park Service (NPS), by notice in the Federal
Register dated February 1, 2010, invited public comments on a proposed
alternative formula for the valuation of leasehold surrender interest
(LSI) pursuant to authority contained in Public Law 105-391 enacted in
1998 (the 1998 Act) to be included in its proposed concession contract
GRTE003-11 for operation of the Signal Mountain Lodge and Leeks Marina
at Grand Teton National Park (new contract). NPS invites further public
comment in the proposed LSI alternative.
DATES: Public comments will be accepted on or before June 25, 2010.
ADDRESSES: Send comments to Ms. Jo Pendry, Chief, Commercial Services
Program, National Park Service, 1201 Eye Street, NW., 11th Floor,
Washington, DC 20005, or via e-mail at jo_pendry@nps.gov or via fax at
202-371-2090.
FOR FURTHER INFORMATION CONTACT: Jo Pendry, Chief Commercial Services
Program, 202-513-7156.
SUPPLEMENTARY INFORMATION: Public comments received in response to the
February 1, 2010, Federal Register notice regarding the proposed LSI
alternative expressed concerns, among other matters, that the notice
did not contain a sufficient explanation of the relationship of the
proposed LSI alternative to the objectives of providing a fair return
to the government and fostering competition for the new contract. For
this reason, NPS considers it appropriate to provide a further
opportunity for public comment on the proposed LSI alternative.
Although NPS, among other matters, is considering the possibility of
changing the currently proposed LSI provisions of the new contract with
respect to the treatment of fixtures for LSI purposes, the NPS will not
make a final administrative decision in regard to the proposed LSI
alternative until after full consideration of all public comments
received in response to both this and the February 1, 2010, Federal
Register notice. The submission date for proposals for the new contract
has been extended to August 10, 2010, by notice in FedBizOpps
(FedBizOpps.gov) under Solicitation No. GRTE003-11 published on April
29, 2010.
The standard formula for LSI value for applicable improvements
provided by a concessioner under a National Park Service concession
contract as defined in 36 CFR Part 51 (``standard LSI formula'') is as
follows:
(1) The initial construction cost of the related capital
improvement;
(2) Adjusted by (increased or decreased) the same percentage
increase or decrease as the percentage increase or decrease in the
Consumer Price Index from the date the Director approves the
substantial completion of the construction of the related capital
improvement to the date of payment of the leasehold surrender interest
value;
(3) Less depreciation of the related capital improvement on the
basis of its condition as of the date of termination or expiration of
the applicable leasehold surrender interest concession contract, or, if
applicable, the date on which a concessioner ceases to utilize a
related capital improvement (e.g., where the related capital
improvement is taken out of service by the Director pursuant to the
terms of a concession contract).
However, Section 405(a)(4) of Public Law 105-391 authorizes the
inclusion of alternative LSI value formulas in concession contracts
(such as the new contract) estimated to have an LSI value in excess of
$10,000,000. Under this authority, the proposed LSI alternative is as
follows:
(1) Initial LSI Value. The reduction of the initial LSI value under
the new contract on a monthly straight line depreciation basis applying
a 40-year recovery period regardless of asset class. There is no
adjustment of the initial LSI value as a result of the installation
(including replacement) of fixtures in the related capital improvements
during the term of the proposed contract; and
(2) New LSI Value. The reduction of the LSI value in any new
structures or major rehabilitations constructed during the term of the
new contract to be based on straight line depreciation and also apply a
40-year recovery period (on a monthly basis) with no asset class
distinctions. The construction cost of new capital improvements will
include the costs of installed fixtures. Any installation (or
replacement) of fixtures after the initial construction would not alter
the established LSI value in the improvements.
Section 405(a)(4) of the 1998 Act requires NPS, in certain
circumstances, to determine that use of the LSI alternative, in
comparison to the standard LSI formula, is necessary in order to
provide a fair return to the government and to foster competition for
the new contract by providing a reasonable opportunity for profit to
the new concessioner.
With regard to a fair return to the government, under the standard
LSI formula the amount of money paid (by the government, directly or
indirectly) for LSI as of the expiration of the new contract is
inevitably speculative at the time of contract solicitation, contract
award, and during the contract term. This is because the future rate of
the Consumer Price Index (CPI), the amount of future physical
depreciation that will occur, and the cost to cure such future physical
depreciation, must all be estimated in advance of the new contract by
both NPS and prospective concessioners.
As a consequence, if the NPS were to establish the required minimum
franchise fee for the new contract under the terms of the standard LSI
formula, that minimum fee necessarily would incorporate speculative
estimates of these factors. Likewise, if a prospective concessioner
offered to meet or exceed the minimum franchise fee established by NPS
under the standard LSI formula, its business decision would necessarily
be made in reliance on speculative estimates of future CPI and future
physical depreciation of LSI improvements.
If the NPS depreciation and CPI assumptions made at the time of
contract solicitation ultimately prove to be inaccurate, its minimum
franchise fee will result in a less than fair return to the government.
NPS therefore believes, subject to review of public comments, that the
proposed LSI alternative, in comparison to the standard LSI formula,
will better provide a fair return to the government under the new
contract.
NPS also believes (again, subject to review of public comments)
that eliminating the speculative aspect of LSI value will help foster
competition for the new contract by providing a reasonable opportunity
to make a profit. This is because prospective
[[Page 29574]]
concessioners will know not only the amount of money they will be
obliged to pay the prior concessioner for existing LSI under the terms
of the new contract, but also will know with a high degree of certainty
how much money they will recover from this payment upon the expiration
of the new contract (based on the 40-year amortization period). The
proposed LSI alternative effectively eliminates the speculation about
physical depreciation and CPI that is required for proposed contracts
under the standard LSI formula. The resulting lower risk and greater
certainty in the business opportunity will foster competition for the
new contract by providing a reasonable opportunity to make a profit.
The proposed LSI alternative is projected to provide approximately
the same rate of return for the new concessioner as the standard LSI
formula. This is because, in developing the minimum franchise fee under
the proposed LSI alternative, NPS estimated that the new contract would
provide the new concessioner with a reasonable opportunity to make a
net profit. This estimate took into consideration, among other matters,
applicable industry rate of return expectations, the purchase price of
the existing LSI improvements, and the LSI value that will be payable
to the concessioner after contract expiration under the proposed LSI
alternative. If the standard LSI formula were utilized, the projected
LSI value payment to the new concessioner would necessarily be much
higher, resulting in a much higher minimum franchise fee for the new
contract.
In other words, the lower LSI value payment upon contract
expiration under the proposed LSI alternative (as opposed to the
standard LSI formula) results in a lower minimum franchise fee, and
achieves the same approximate projected rate of return to the
concessioner. The proposed LSI alternative results in increased cash
flows to the concessioner during the entire term of the contract, while
the standard LSI formula provides a higher payment of LSI at the
expiration of the contract.
The proposed LSI alternative, if adopted by NPS, would be
applicable only to the new contract, GRTE003-11. NPS has made no
decision to apply the proposed LSI alternative or any other LSI
alternative to future concession contracts. If the same or other
alternative LSI formulas are considered for utilization in subsequent
contracts pursuant to Section 405(a)(4) of the 1998 Act, opportunities
for public comment will be provided as required. NPS will provide
notice of its final decision regarding the LSI provisions of the new
contract in the Federal Register and/or in FedBizOpps (FedBizOpps.gov
under Solicitation No. CC-GRTE003-11).
Before including your address, phone number, e-mail address, or
other personal identifying information in your comment, you should be
aware that your entire comment--including your personal identifying
information--may be made publicly available at any time. While you can
ask us in your comment to withhold your personal identifying
information from public review, we cannot guarantee that we will be
able to do so.
Daniel N. Wenk,
Deputy Director, Operations.
[FR Doc. 2010-12703 Filed 5-25-10; 8:45 am]
BILLING CODE 4312-53-P
