36 CFR 51.51 - What special terms must I know to understand leasehold surrender interest?

prev | next
§ 51.51 What special terms must I know to understand leasehold surrender interest?
To understand leasehold surrender interest, you must refer to these definitions, applicable in the singular or the plural, whenever these terms are used in this part:
Arbitration means binding arbitration conducted by an arbitration panel. All arbitration proceedings conducted under the authority of this subpart or subpart H of this part will utilize the following procedures unless otherwise agreed by the concessioner and the Director. One member of the arbitration panel will be selected by the concessioner, one member will be selected by the Director, and the third (neutral) member will be selected by the two party-appointed members. The neutral arbiter must be a licensed real estate appraiser. The expenses of the neutral arbiter and other associated common costs of the arbitration will be borne equally by the concessioner and the Director. The arbitration panel will adopt procedures that treat each party equally, give each party the opportunity to be heard, and give each party a fair opportunity to present its case. Adjudicative procedures are not encouraged but may be adopted by the panel if determined necessary in the circumstances of the dispute. Determinations must be made by a majority of the members of the panel and will be binding on the concessioner and the Director.
A capital improvement is a structure, fixture, or non-removable equipment provided by a concessioner pursuant to the terms of a concession contract and located on lands of the United States within a park area. A capital improvement does not include any interest in land. Additionally, a capital improvement does not include any interest in personal property of any kind including, but not limited to, vehicles, boats, barges, trailers, or other objects, regardless of size, unless an item of personal property becomes a fixture as defined in this part. Concession contracts may further describe, consistent with the limitations of this part and the 1998 Act, the nature and type of specific capital improvements in which a concessioner may obtain a leasehold surrender interest.
Construction cost of a capital improvement means the total of the incurred eligible direct and indirect costs necessary for constructing or installing the capital improvement that are capitalized by the concessioner in accordance with Generally Accepted Accounting Principals (GAAP). The term “construct” or “construction” as used in this part also means “install” or “installation” of fixtures where applicable.
Consumer Price Index means the national “Consumer Price Index—All Urban Consumers” published by the Department of Labor. If this index ceases to be published, the Director will designate another regularly published cost-of-living index approximating the national Consumer Price Index.
Depreciation means the loss of value in a capital improvement as evidenced by the condition and prospective serviceability of the capital improvement in comparison with a new unit of like kind.
Eligible direct costs means the sum of all incurred capitalized costs (in amounts no higher than those prevailing in the locality of the project), that are necessary both for the construction of a capital improvement and are typically elements of a construction contract. Eligible direct costs may include, without limitation, the costs of (if capitalized in accordance with GAAP and in amounts no higher than those prevailing in the locality of the project): building permits; materials, products and equipment used in construction; labor used in construction; security during construction; contractor's shack and temporary fencing; material storage facilities; power line installation and utility costs during construction; performance bonds; and contractor's (and subcontractor's) profit and overhead (including job supervision, worker's compensation insurance and fire, liability, and unemployment insurance).
Eligible indirect costs means, except as provided in the last sentence of this definition, the sum of all other incurred capitalized costs (in amounts no higher than those prevailing in the locality of the project) necessary for the construction of a capital improvement. Eligible indirect costs may include, without limitation, the costs of (if capitalized in accordance with GAAP and in amounts no higher than those prevailing in the locality of the project): architectural and engineering fees for plans, plan checks; surveys to establish building lines and grades; environmental studies; if the project is financed, the points, fees or service charges and interest on construction loans; all risk insurance expenses and ad valorem taxes during construction. The actual capitalized administrative expenses (in amounts no higher than those prevailing in the locality of the project) of the concessioner for direct, on-site construction inspection are eligible indirect costs. Other administrative expenses of the concessioner are not eligible indirect costs.
Fixtures and non-removable equipment are manufactured items of personal property of independent form and utility necessary for the basic functioning of a structure that are affixed to and considered to be part of the structure such that title is with the Director as real property once installed. Fixtures and non-removable equipment do not include building materials (e.g., wallboard, flooring, concrete, cinder blocks, steel beams, studs, window frames, windows, rafters, roofing, framing, siding, lumber, insulation, wallpaper, paint, etc.). Because of their special circumstances, floating docks (but not other types of floating property) constructed by a concessioner pursuant to the terms of a leasehold surrender interest concession contract are considered to be non-removable equipment for leasehold surrender interest purposes only. Except as otherwise indicated in this part, the term “fixture” as used in this part includes the term “non-removable equipment.”
Leasehold surrender interest solely means a right to payment in accordance with this part for related capital improvements that a concessioner makes or provides within a park area on lands owned by the United States pursuant to this part and under the terms and conditions of an applicable concession contract. The existence of a leasehold surrender interest does not give the concessioner, or any other person, any right to conduct business in a park area, to utilize the related capital improvements, or to prevent the Director or another person from utilizing the related capital improvements. The existence of a leasehold surrender interest does not include any interest in the land on which the related capital improvements are located.
Leasehold surrender interest concession contract means a concession contract that provides for leasehold surrender interest in capital improvements.
Leasehold surrender interest value means the amount of compensation a concessioner is entitled to be paid for a leasehold surrender interest in capital improvements in accordance with this part. Unless otherwise provided by the terms of a leasehold surrender interest concession contract under the authority of section 405(a)(4) of the 1998 Act, leasehold surrender interest value in existing capital improvements is an amount equal to:
(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).
Major rehabilitation means a planned, comprehensive rehabilitation of an existing structure that:
(1) The Director approves in advance and determines is completed within 18 months from start of the rehabilitation work (unless a longer period of time is approved by the Director in special circumstances); and
(2) The construction cost of which exceeds fifty percent of the pre-rehabilitation value of the structure.
Pre-rehabilitation value of an existing structure means the replacement cost of the structure less depreciation.
Real property improvements means real property other than land, including, but not limited to, capital improvements.
Related capital improvement or related fixture means a capital improvement in which a concessioner has a leasehold surrender interest.
Replacement cost means the estimated cost to reconstruct, at current prices, an existing structure with utility equivalent to the existing structure, using modern materials and current standards, design and layout.
Structure means a building, dock, or similar edifice affixed to the land so as to be part of the real estate. A structure may include both constructed infrastructure (e.g., water, power and sewer lines) and constructed site improvements (e.g., paved roads, retaining walls, sidewalks, paved driveways, paved parking areas) that are permanently affixed to the land so as to be part of the real estate and that are in direct support of the use of a building, dock, or similar edifice. Landscaping that is integral to the construction of a structure is considered as part of a structure. Interior furnishings that are not fixtures are not part of a structure.
Substantial completion of a capital improvement means the condition of a capital improvement construction project when the project is substantially complete and ready for use and/or occupancy.

Title 36 published on 2013-07-01

no entries appear in the Federal Register after this date.

This is a list of United States Code sections, Statutes at Large, Public Laws, and Presidential Documents, which provide rulemaking authority for this CFR Part.

This list is taken from the Parallel Table of Authorities and Rules provided by GPO [Government Printing Office].

It is not guaranteed to be accurate or up-to-date, though we do refresh the database weekly. More limitations on accuracy are described at the GPO site.

United States Code
U.S. Code: Title 16 - CONSERVATION

§ 1 - Service created; director; other employees

§ 1a - Repealed. June 25, 1948, ch. 646,

§ 1a-1

§ 1a-2

§ 1a-3

§ 1a-4

§ 1a-5

§ 1a-6

§ 1a-7

16 U.S. Code § 1a–7a - National Park System crime prevention assistance

16 U.S. Code § 1a–7b - Protecting Americans from violent crime

§ 1a-8

§ 1a-9

§ 1a-10

§ 1a-11

§ 1a-12

§ 1a-13

§ 1a-14

§ 1b - Secretary of the Interior’s authorization of additional activities; administration of National Park System

§ 1c - General administration provisions; system defined; particular areas

§ 1d - Appropriations

§ 1e - National Capital region arts and cultural affairs; grant program

§ 1f - Challenge cost-share agreement authority

§ 1g - Cooperative agreements

§ 1h - Sums provided by private entities for utility services

§ 1i - Reimbursable agreements

§ 1j - Cooperative agreements for national park natural resource protection

§ 2 - National parks, reservations, and monuments; supervision

§ 3 - Rules and regulations of national parks, reservations, and monuments; timber; leases

§ 3a - Recovery of costs associated with special use permits

§ 3b - Maintenance and repair of Government improvements under concession contracts

§ 4 - Rights-of-way through public lands

§ 5 - Rights-of-way through parks or reservations for power and communications facilities

§ 6 - Donations of lands within national parks and monuments and moneys

§ 6a - Repealed.

§ 7 - Repealed. Oct. 31, 1951, ch. 654,

§ 7a - Airports in national parks, monuments and recreation areas; construction, etc.

§ 7b - Acquisition of lands for airport use; contracts for operation and maintenance

§ 7c - Authorization to sponsor airport projects; use of funds

§ 7d - Jurisdiction over airports; public operation

§ 7e - Definitions

§ 8 - Roads and trails in national parks and monuments; construction, etc.

§ 8-1

§ 8a - National-park approach roads; designation

§ 8b - National-park approach roads and roads and trails within national parks and national monuments; construction, improvement, and maintenance; appropriation

§ 8c - National-park approach roads across or within national forests; approval of Secretary of Agriculture

§ 8d - National-monument approach roads

§ 8e - Conveyance to States of roads leading to certain historical areas; conditions; jurisdiction

§ 8f - Roads leading to certain historical areas; “State” defined

§ 9 - Repealed. June 30, 1949, ch. 288, title VI,

§ 9a - Government of parks, etc.; violation of regulations as misdemeanor

§ 10, 10a - Repealed.

§ 11 - Medical attention for employees

§ 12 - Aid to visitors in emergencies

§ 13 - Medical attention to employees at isolated places; removal of bodies for burial

§ 14 - Repealed.

§ 14a - Appropriations; availability for printing information and signs

§ 14b - Credits of receipts for meals and quarters furnished Government employees in the field

§ 14c - Availability for expense of recording donated lands

§ 14d - Use of funds for law enforcement and emergencies

§ 14e - Contribution for annuity benefits

§ 15 - Appropriations for purchase of equipment; waterproof footwear

§ 16 - Central warehouses at parks and monuments; maintenance; purchase of supplies and materials; distribution

§ 17 - Personal equipment and supplies for employees; purchase by Secretary of the Interior; deductions from moneys due employees

§ 17a - Repealed.

§ 17b - Services or other accommodations for public; contracts; rates

16 U.S. Code § 10, 10a - Repealed.

§ 17c - Procurement of supplies, materials, and special services to aid permittees and licensees in emergencies; authority of Secretary of the Interior

§ 17d - Omitted

§ 17e - Care and removal of indigents; disposition of dead persons

§ 17f - Property of employee lost, damaged, or destroyed while in use on official business; reimbursement of employee

§ 17g - Equipment required by field employees; by whom furnished and maintained

§ 17h - Hire, rental, and purchase of property of employees; when authorized

§ 17i - Hire of work animals, vehicles and equipment with or without personal services; rates

§ 17j - Traveling expenses of National Park System employees and dependents of deceased employees

16 U.S. Code § 10, 10a - Repealed.

16 U.S. Code § 10, 10a - Repealed.

§ 17k - Park, parkway and recreational-area programs; study by National Park Service; consent of States; purpose; cooperation of government agencies

16 U.S. Code § -

§ 17m - Consent of Congress to agreements between States; when agreements effective

§ 17n - “State” defined

16 U.S. Code § -

§ 18 - Promotion of tourist travel

§ 18a - Cooperation with travel agencies; publication of information

§ 18b - Advisory committee for promotion of tourist travel; expenses

§ 18c - Rules and regulations; employees

§ 18d - Authorization of appropriations

§ 18e - Repealed. Sept. 20, 1941, ch. 412, title V,

§ 18f - Management of museum properties

16 U.S. Code § 10, 10a - Repealed.

16 U.S. Code § 10, 10a - Repealed.

16 U.S. Code § 10, 10a - Repealed.

Title 36 published on 2013-07-01

The following are ALL rules, proposed rules, and notices (chronologically) published in the Federal Register relating to 36 CFR 51 after this date.

  • 2014-08-05; vol. 79 # 150 - Tuesday, August 5, 2014
    1. 79 FR 45390 - Concession Contracts
      GPO FDSys XML | Text
      DEPARTMENT OF THE INTERIOR, National Park Service
      Proposed rule.
      Comments must be received by September 4, 2014.
      36 CFR Part 51