Destination Development Grant

Medium
Medium

Section I Grant Information

 

Applications are only accepted through the portal.  The grant portal and link will be available July 1, 2025 3:00 p.m. CDT and will close on July 31, 2025 at 5 p.m. CDT.
 

Printable Guidelines
 

BACKGROUND

The 69th Legislative Assembly appropriated $15 million to the Department of Commerce for the Tourism Destination Development Grant Program for the 2025-2027 biennium. Grant applications will be evaluated based on how the proposed project will provide new experiences, how it aligns with North Dakota’s identity and values, and the long-term impact and the timeline for completion. 

PURPOSE

The Destination Development Grant Program provides financial support for the development or expansion of tourism experiences and attractions that contribute to North Dakota’s economic growth and diversification. The program is designed to:

  1. Increase the number of unique visitor experiences
  2. Support workforce recruitment and retention
  3. Enhance the quality of life for North Dakota residents

This grant is intended to fund infrastructure construction or the expansion of attractions and services that serve as anchor tourism destinations—projects that have the potential to stimulate and support additional tourism-related activities and businesses in the area.

Funding is meant to advance projects toward completion, not to support early-stage planning or development.

Eligible uses of funds may include (but are not limited to):

  1. Purchase or construction of new or existing tourism, recreation, entertainment, historic, or cultural attractions
  2. Infrastructure investments that directly support tourism
  3. Purchase of equipment that is essential to the operation of a specific tourism project
     

TO QUALIFY, PROJECTS MUST FALL UNDER AT LEAST ONE OF THE FOLLOWING CATEGORIES:

Accommodations

Projects that provide lodging experiences distinct from traditional hotels, motels, or short-term homestays. These accommodations should offer memorable immersive experiences that reflect the culture, landscape, or history of the area. Examples include:

  • Rehabilitation of historically significant structures unique to the area (e.g., a downtown boutique hotel).
  • Lodging reflective of regional identity (e.g., ski lodge, glamping site, hunting or fishing lodge).
  • Lodging built alongside a tourism attraction, where the attraction is the primary draw and exceeds the value of the lodging facility.
  • Construction, restoration, or renovation of full-service lodging that is or will be integrated with major tourism assets such as an attraction, convention center, or sports facility.

Culinary Experiences

Food and beverage related attractions that enhance the visitor experience and celebrate local flavor.

  • Breweries or wineries that include tours, tastings or event spaces.
  • Themed destination restaurants developed as part of a larger tourism project.
  • Cultural or regional cuisine experiences that highlight local heritage (e.g., Native American, Scandinavian, German Russian cuisine).

Themed Education and Entertainment Attractions

  • Culinary, Art, and Wellness Experiences
    • Culinary tourism and food-based experiences
    • Art-focused attractions or installations
    • Fitness and wellness retreats
  • Themed Attractions
    • Artist, author, or animal inspired attractions
    • Interactive or narrative-driven experiences
  • Outdoor and Recreational Venues
    • Parks and themed recreational spaces
    • Additional recreational activities that enhance tourism offerings
  • Value-Added Services
    • Equipment rentals (e.g., bikes, kayaks, snowshoes)
    • Guide and outfitter services
    • Curated or complete experience packages for visitors

Agritourism Attractions

Experiences rooted in agriculture, rural culture or working farms that welcome visitors.

  • Farm stays with educational tours, seasonal activities, or community events.
  • Full-service guest ranches offering accommodations and programming.
  • Ranches with event venues for conferences, weddings, or festivals.

Focused Niche Activities

Tourism offerings with a targeted theme or value-added service, often tied to place-based identity.

  • Attractions with historical or cultural themes.
  • Experiences catering to national or state parks visitors.
  • Destinations that emphasize scenic beaty or natural features.
  • Unique community-based amenities that enhance the local tourism appeal.

In addition to new projects, existing attractions may qualify for this grant under operational enhancements; however, grant funds cannot supplant an existing budget. These enhancements should extend the length of the visitor season or keep the attraction competitive with other out-of-state offerings, resulting in additional revenue and visitors. 

Grant requests should range between $25,000 and $5,000,000, but smaller projects may be considered. Applicants should provide details on how they will invest in the project with cash or in-kind contributions.

All grant-related expenditures must be incurred prior to June 15, 2027, to be eligible for reimbursement. 

Medium

ELIGIBLE ENTITIES

A for-profit or non-profit organization or business involved in tourism. Private and non-profit tourism entities or concessionaires using government buildings or public property are eligible if the grant dollars are used only to improve items belonging to the business or non-profit.

INELIGIBILITY

INELIGIBLE ENTITIES - State and federal government entities are not eligible.

INELIGIBLE PROJECTS - Projects that would not qualify include planning or hosting a new event. A tourism attraction should not be primarily devoted to the retail sale of goods, shopping centers, restaurants, or movie theaters. State and government-owned facilities are not eligible. Projects that intend to use grant dollars for staffing positions, strategic planning, marketing, and ongoing expenses are not eligible.

MATCHING REQUIREMENTS

Applicants must clearly outline the sources of their match to demonstrate both commitment and project viability. As this is a competitive program, the strength of the match, relative to the project’s size and location, will be evaluated. Applicants are encouraged to provide the most competitive matching plan possible using non-state sources.

There are two acceptable methods for providing the match:

  1. Cash Match. The applicant should be able to cover costs up front, submits invoices for reimbursement, and once verified as eligible under the grant agreement, will receive reimbursement for 50% of the approved expenses.
  2. In-Kind Contributions. These may include the value of donated land, equipment, in-house labor (excluding administrative staff and programmatic costs), and sales tax on eligible purchases. 

WHAT MAKES FOR A STRONG APPLICATION?

Competitive applications will demonstrate a clear vision, strategic alignment with tourism goals, and long-term value. Strong proposals typically include the following elements:

  1. New Experiences. Projects that introduce fresh, original, and distinctive experiences to North Dakota’s tourism landscape.
  2. Major Expansions. Proposals that detail significant growth or enhancements to existing attractions or facilities, supported by a clear funding strategy.
  3. Defining North Dakota. Initiatives that embody and promote the state’s unique identity, highlighting its natural beauty, cultural heritage, or historical significance.
  4. Long-Term Impact. Projects that have a lasting positive impact on the community and the state’s tourism industry.
  5. Timely Completion. Projects with realistic, achievable timelines that can be completed within the 2025–2027 biennium.
  6. Operational Enhancements. Capital improvements to existing attractions that elevate visitor experience or increase operational efficiency.
  7. Additional Strengths Include:
    • A clear demonstration of how the project will attract new visitors to North Dakota, supported by data or projections of increased visitation.
    • Evidence of the project’s role as a key tourism and recreation attraction within its community and region.
    • The demand for the tourism-related project is clearly demonstrated through research and analysis.
    • The experience offered is distinctive and meaningfully tied to North Dakota’s history, culture, or natural resources.
    • The project addresses known gaps in the tourism landscape and offers high-demand experiences capable of attracting and retaining out-of-state visitors for extended stays (four to six hours or overnight).
    • Projects that leverage funding from various public or private sources.
    • Projects that demonstrate responsible management of tourism activities and enhance the natural, cultural, or social resources that make a destination attractive to visitors.
      1. (Ex: promoting cultural understanding and respect by providing information or training about local culture and customs, supporting local cultural initiatives, supporting the local economy by using local suppliers, reducing environmental impacts through sustainable practices, protecting public safety by conducting activities in a safe and responsible manner.)

NOTE: CLEAR AND CONCISE RESPONSES ARE ESSENTIAL. WHILE SUPPORTING DOCUMENTS ARE ENCOURAGED AND WILL BE REVIEWED, THEY DO NOT REPLACE THE REQUIRED NARRATIVE SECTIONS IN THE GRANT PORTAL.

Please avoid repeating the same information in multiple sections. Each section of the application is designed to evaluate a specific aspect of your project, so use the opportunity to provide new and relevant details throughout your application. 

Medium

APPLICATION REQUIREMENTS TO BE CONSIDERED FOR THE DESTINATION DEVELOPMENT GRANT

Applications are only accepted through the portal.  The grant portal and link will be available July 1, 2025 3:00 p.m. CDT and will close on July 31, 2025 at 5 p.m. CDT.


PROJECT DESCRIPTION (100 TOTAL POINTS)
  • Project Overview (25 Points) Provide a clear and concise description of the project, including:
    • Project location.
    • Facility owner (if different than applicant).
    • Indicate whether the applicant owns the property on which the project is located. If not, provide any details on any long-term lease agreements or usage rights.
    • The number of days per year the project will be open to the public.
    • Intended use of matching funds.
    • How the project aligns with the grant program’s objectives and eligible project types (i.e., new experiences, major expansions, operational enhancements, defining North Dakota, long-term impact, timely completion).
  • Innovation (25 Points)
    • Describe the originality and creativity of the project.
    • How does the project offer a new or enhanced experience that will attract tourists to North Dakota?
  • Cultural and Historical Significance (20 Points)
    • Explain the projects relevance to the local culture and history of North Dakota.
    • How will it appeal to the visitors interested in learning about North Dakota heritage?
  • Tourism and Hospitality (15 Points)
    • Describe the tourism and/or hospitality experience of the individuals or organizations involved in the development and ongoing operation of the project.
  • Supporting Materials (Optional 15 Points)
    • You may include additional documentation such as:
      • Economic impact analysis.
      • Architectural drawings.
      • Community surveys.
      • Substantiality plans.
      • Other relevant planning documents.
PROJECT FINANCIALS (100 TOTAL POINTS)
  • Budget & Timeline (60 Points)
    • A detailed implementation timeline for your project and investment of grant funds. Some projects may have multiple phases or various opening dates. Please include an outline describing the vision of the project plan. This will be used to analyze the long-term impact.
    • A full budget for the entire project. Identify the amount of grant funds to be used for each phase of the project, specifically from the time the project is awarded through June 30, 2027.
    • Overall budget totals.
    • Source and value of matching funds, including in-kind contributions if applicable.
Operational Budget & Sustainability (40 Points)
  • Present an estimated operating budget for the facility once the project is complete, including a plan for how ongoing costs will be funded.
PROJECT COMPATIBILITY & APPEAL (100 TOTAL POINTS)
  • Market Demand (50 Points)
    • Explain how the project meets the needs of the tourism market at the local, regional, and state levels.
    • For existing businesses, please include current visitation numbers, visitor demographics, operational hours, and anticipated changes post-expansion.
    • For new businesses, please include a three-year visitation projection and sources of your data.
  • Visitor Demographics (25 Points)
    • Describe the target audience(s) for your project, such as families, adventure travelers, cultural tourists, etc.
  • Collaboration (25 Points)
    • Outline how the project involves collaboration with local or regional businesses, organizations, and stakeholders. Demonstrate combability with the surrounding community.
DEMAND FOR THE PROJECT (100 TOTAL POINTS)
  • Economic Impact (30 Points)
    • Detail how the project will boost the economy by increasing visitor spending, retention, job creation, tax revenue, and quality of life.
  • Tourism Growth Potential (30 Points)
    • Explain how the project will attract new and repeat visitors and contribute to the long-term growth and sustainability of tourism in North Dakota.
  • Community Benefit (20 Points)
    • Describe how the project enhances residents’ quality of life and its potential to attract or retain workforce.
  • Letters of Support (20 Points)
    • Please include three letters of support from local or regional community leaders, businesses, civic organizations, or other stakeholders.
Operational Enhancements (60 Total Points) 

(Note: This section applies to existing attractions only).

  • Feasibility (10 Points)
    • Is the proposed operational enhancement feasible given the organizations resources, capacity, and timelines? Demonstrate the organization’s capacity to complete the enhancement, with a clear implementation plan, progress milestones, and completion timeline.
  • Impact (10 Points)
    • Explain how the enhancement will improve outcomes, such as increasing season length or attracting more visitors. Please provide any data you may have that supports potential growth and revenue.
  • Social Impact (10 Points)
    • Demonstrate that the operational enhancement will have a significant social impact that will benefit the community. This project should align with the grant’s objectives and eligible projects, and the organization should be able to explain how the grant will help achieve those goals.
  • Sustainability (10 Points)
    • Describe how the project will be sustained beyond the grant period. Please include plans for ongoing evaluation and long-term success.
  • Financial Hardship (10 Points)
    • Provide evidence of financial need, such as a lack of funding or financial constraints that would prevent enhancement without this grant.
  • Collaboration (10 Points)
    • Is the applicant open to collaborating with other organizations or stakeholders to maximize the project’s impact? Are there opportunities for knowledge-sharing or partnership-building that could enhance the long-term success of the project? This can include collaborating with nonprofit organizations, engaging with local businesses or community members or other stakeholders to achieve the project’s goals.

These supporting documents will be used to help evaluate the readiness and impact of your project.

ADMINISTRATION

The Destination Development Grant is administered by the Tourism Division of the Department of Commerce.Questions may be directed to:

McKenzie Clayburgh
North Dakota Department of Commerce, Tourism Division
Phone: (701) 328-6484
Email: clayburghmckenzie@nd.gov

Applications are only accepted through the portal.  The grant portal and link will be available July 1, 2025 3:00 p.m. CDT and will close on July 31, 2025 at 5 p.m. CDT.

Medium

Section II Grant Requirements
 

All application materials must be submitted online in the grant portal. The items listed below will need to be completed and/or uploaded as part of the applicant’s submission. Complete proposals need to demonstrate clear and concise explanation of the project, cost, and overall impact on North Dakota Tourism. Applications will only be received and accepted through the online portal.

IMPORTANT NOTE: APPLICANTS MUST IDENTIFY ALL SECTIONS OF THE PROPOSAL FORMAT TO BE CONSIDERED FOR REVIEW.

  • Three Letters of Support. The lead applicant must upload/attach the letters as a single PDF.
  • Business plan including:
    • Executive Summary - This should concisely describe the key elements of the business plan including, but not limited to:
      • Business location and plan description;
      • Discussion of the tourism offering,
      • market, and competition;
      • Summary of historical and financial projections;
      • Amount of financial assistance requested;
      • Form of and purpose for the financial assistance;
      • Complete uses and sources of funds;
      • Business goals and objectives.
    • The Company
      • A general description of the business, including the service and tax identification number. Historic development of the business, including such items as: name, date, and place (state) of formation, and legal structure.
    • The Service
      • Describe the present tourism product. Compare to competitors' product, and competitive advantages over other offerings. Demand for the offering. General description of the project, the purpose for which it is undertaken, projected job creation, and salary/wage rates for all employees. Number of employees at year end, total payroll expenses for each of the previous three years (breakdown by wages, benefits). Departmental/divisional breakdown of workforce. Planned staff additions. Describe the industry and the industry outlook. Explain the sources of the projections.
  • Financial documents:
    • A funding request detailing the desired financing, including complete description of uses and sources of funds for the timeline of November 1, 2023, through June 30, 2025. If phased financing, describe phases, projected timing and detailed uses and sources of funds.
    • Three years of company historical financial statements.
    • Three years of projected financial statements. Projections should include profit and loss, balance sheet and cashflow statements. Include key assumptions made in the proformas and how these assumptions reflect industry performance.
    • Document proof showing source of project match commitment.
    • Agree to complete vendor registration with Office of Management and Budget to receive payment (if you have never received or not received payment from the state within the past 12 months): Supplier Registration. Note: The business applicant name must match your State Vendor Registration ID.
INELIGIBLE GRANT FUND EXPENSES:
  • Travel and lodging
  • This grant cannot supplant an existing budget
  • Speculative projects
  • Fees incurred preparing and submitting an application (i.e., time, research, grant writing fees, etc.)
  • Administrative, personnel and programmatic funding for existing operations
  • Taxes, except sales taxes on eligible expenses
  • Funding advocacy or lobbying efforts
  • Direct payment to individuals; the funds must be paid to a registered organization (In extreme circumstances where contractors or workers are not available a written request for an exception may be considered) 
Medium

Section III Proposal Review and Approval
 

PROPOSAL REVIEW AND RATING

  • Review and rating of proposals is conducted by the Department of Commerce. The Division will work with designated individuals to clarify proposals, verify match requirements, and to ensure completeness.

GRANT APPROVAL

The Division will officially notify the grantee of the award by contacting the respective applicant. The notification will include:

  • Amount awarded.
  • Request that the applicant name an authorized agent as the contact with the division on the specific grant.
  • Request that the grantee not publicize the award, pending a press release by the State.

Section IV Grant Contract

GRANT CONTRACT DEVELOPMENT

  • Upon approval of a grant proposal, the Division will develop a grant agreement. The Division will work with the authorized agent to finalize grant agreement details.

GRANT MATCH REQUIREMENTS

  • To be eligible for grant funding, applicants must:
  • Provide a non-state match for the project.
  • If using in-kind contributions, match should be secured on or after July 1, 2024, and no later than the grant closing date, unless otherwise approved.
  • If using cash match, applicants should be able to cover project expenses as needed. The program will reimburse 50% of eligible expenses only after documentation has been provided, approved, and processed.
  • Submit a detailed match plan in the application that clearly outlines:
    • The type of match (cash or in-kind)
    • The source(s) of the match and/or plan to obtain funding during the grant cycle.
    • The intended use of matching funds within the project.
  • Ensure the match amount reflects a strong commitment relative to the project’s size and location.

Cash Match (Reimbursement Method)

  • A cash match involves the applicant using their own funds and any other funds secured during the grant cycle—to pay for eligible project expenses, which will then be reimbursed.
  • The program will reimburse 50% of eligible expenses after invoices along with documentation are submitted and approved.
  • Applicants should be able to pay the project invoices upfront, as reimbursement is provided only after documentation has been provided, approved, and processed.
  • While applicants are encouraged to match the full cost of the project, doing so is not required.

In-Kind Match Types:

  • Donated Land/Equipment:
    • Valuation statement/appraisal
    • Documentation showing date and source of donation
  • In-House Labor:
    • Timesheets with names, dates, and hours worked
    • Documentation of wage rate (comparable market rate)
  • Sales Tax:
    • Receipts or invoices showing applicable sales tax paid on eligible project items

REPORTING REQUIREMENTS

  • Reimbursement and Documentation Guidelines
    • All documentation must be uploaded through the official grant portal. Submissions via email or otherwise will not be accepted for reimbursement or progress narrative updates.
    • Invoices must include a detailed description of the service provided. All work must be completed within the grant cycle and must align with the approved scope of work outlined in the grant agreement.
    • Summary invoices will not be accepted. Reimbursements will not cover any late fees or credit card fees.
    • Final approval of all reimbursements is at the discretion of the Director of Tourism.
    • Grantees must complete an ACH form upon receiving the award to allow for electronic deposit of reimbursement of funds. Failure to complete this form may result in delays in payment.
    • All grant-related expenditures must be incurred by June 15, 2027, to be eligible for reimbursement.

PROGRESS NARRATIVES

  • Grantees are required to submit progress narratives at the end of each quarter throughout the grant period, beginning with the commencement of the contract. These reports must be submitted through the online grant portal.
  • Each progress narrative must include:
    • A brief summary of the project’s current status
    • Updates on milestones identified in the approved project proposal and implementation plan
    • A Final report to include a narrative and photos of the completed project is required upon completion. 

NOTE: FAILURE TO COMPLY WITH REPORTING REQUIREMENTS MAY RESULT IN A SUSPENSION OF GRANT FUNDING.

GRANT CONTRACT MODIFICATION

  • The grantee will contact the Division to get prior approval of changes to match, authorized use of grant funds, grant contract term, or funding. Approved requests may be denied if not appropriate to the grant or may require grant contract modification prior to implementation. A line-item deviation from grant contract budget of no more than 10% will be accepted without prior permission and will not require grant contract modification. This deviation allowance does not include total grant contract amount.
  • Grant contract modifications should be completed during the grant contract period.

GRANT CONTRACT CLOSEOUT

Near the end of the grant contract, the Division will notify the grantee via letter and/or email that the grant contract has been closed. At this time, the new offering must be added to the partner portal for inclusion on NDtourism.com and owner should continue to update the information to attract more visitors and extend length of stays.  This notification signifies the end of the grant contract and releases the administrator and the grantee from any further obligations under the grant agreement.

Section V Monitoring

The Division will monitor all grants during the grant term. Monitoring via desk review is allowable if documentation can satisfactorily support the review. Monitoring times will be targeted to allow the grantee to have submitted at least one request for funds.  This gives the monitor and grantee an opportunity to review the process more completely.

Medium

2023-2025 Destination Development Grants

The application window for this grant closed on August 31st, and projects were awarded on November 6th, 2023.  

Click here to view the 2023-2025 complete list of applicants

Destination Development Grant Applications