The North Dakota Senate approved a $20 million construction loan to restart work on the stalled Military Gallery project on the State Capitol grounds. The measure, Senate Bill 2407, passed by a vote of 39-8 on Thursday during a special session primarily called to address kratom regulation in the state. The bill now moves to the House for consideration on Friday.
This action comes amid significant disappointment among some lawmakers who expressed frustration that no one is being held accountable for the project’s previous failures. The $78 million project’s funding was originally intended to be evenly split between the state and private donors. The newly approved loan unlocks $15 million of state funding that had already been earmarked for the project and authorizes a $20 million line of credit from the Bank of North Dakota to allow construction to resume while fundraising efforts seek renewed private donations.
Several senators voiced strong concerns regarding the project's troubled history. Sen. Dale Patten, R-Watford City, described the unfinished building project as a “black eye” on the Capitol grounds, stating that the Legislature must find a solution. Sen. Ron Sorvaag, R-Fargo, indicated that the fundraising firm had failed at their job so far and acknowledged the risk that the state could end up paying for it entirely.
Other lawmakers underscored the need for accountability for past issues. Sen. Jose Castaneda, R-Minot, called the situation atrocious and unacceptable, emphasizing that something needs to be done to review the past. Sen. Jonathan Sickler, R-Grand Forks, highlighted the July 3 pause of construction as a clear sign of problems and expressed particular concern about disagreements among project leaders regarding the timing of construction initiation in the summer of 2025. He indicated that agency performance during this process would likely face scrutiny during future budget reviews.
Some senators opposed the bill because it did not address accountability or create enough new oversight. Sen. Sean Cleary, R-Bismarck, described the situation as a lose-lose. Sen. David Clemens, R-West Fargo, a veteran, stated he would not support the bill out of respect for taxpayers, offering an apology to North Dakota taxpayers for not being better watchmen. Clemens warned that if private fundraising does not improve, the state's exposure could reach $59 million.
Despite these concerns, supporters of the bill emphasized the need to move forward. Sen. Randy Burckhard, R-Minot, said they needed to honor the military, adding that it was too late to reverse course. Rep. Don Vigesaa, R-Cooperstown, noted that the construction pause was costing the state $157,000 per month and action was needed to restart the project. Rep. Glenn Bosch, R-Bismarck, a key lawmaker in drafting the amended bill, said he believed they had found a good solution, being responsible stewards and allowing contractors to proceed without spending more than already appropriated this session.
The $20 million line of credit is officially due to be repaid by March 31, 2029. However, Sen. Brad Bekkedahl, R-Williston, expressed confidence that donations would fully repay the credit, and Sen. Castaneda stated his intention for future lawmakers to extend the deadline as long as necessary for private donations to cover the loan. Castaneda indicated that the only additional cost to taxpayers should be potentially paying the interest that accrues over time.
To address some oversight concerns, the bill places management of the project in the hands of the Capitol Grounds Planning Commission, which includes four lawmakers. Additionally, the State Historical Society will be required to report quarterly to the Legislature’s Budget Section on the progress of both construction and fundraising.
Legislative leaders, including Sen. Bekkedahl, maintained that the special session was a time for resolution rather than recrimination regarding past mistakes. However, lawmakers like Sen. Castaneda stressed that this could not be a permanent stance on accountability.
The bill appears to have support among the Republican majority in the House, based on comments made during a caucus meeting Thursday. Rep. Brandy Pyle, R-Casselton, stated the bill demonstrates lawmakers' commitment to North Dakotans and belief in the military, expressing confidence that fundraisers would ultimately succeed. Pyle added that it was not fair to blame fundraisers for an early start to construction.
