Destination Development Grant

Section I Grant Information
 

The grant portal and link will be available August 1, 2025 by 3:00 p.m. CDT and will close on Sept. 2, 2025 at 5 p.m. CDT.

Applications are only accepted through the portal.  

Applicants must submit all materials online, including a detailed project description, budget, and letters of support. Competitive applications will demonstrate a clear vision, strategic alignment with tourism goals, and long-term value. 

For questions, contact:

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

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. Encourage length of stay and overnight visits
3. Support workforce recruitment and retention
4. 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 beauty or natural features.
• Unique community-based amenities that enhance the local tourism appeal.

Projects can be multi-use and multi-seasonal, serving multiple purposes and events within a community rather than being limited to a single use.

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.

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

ELIGIBLE ENTITIES

For-profit businesses, non-profit organizations, or tourism-related entities are eligible to apply. This includes those operating in government-owned buildings or on public property, provided the grant funds are used solely to improve assets owned by the business or non-profit — not the public facility itself.
 

INELIGIBILITY

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

INELIGIBLE PROJECTS - Projects that are state or government owned facilities are not eligible for funding, and grant funds may not be used for staffing, strategic planning, marketing, or ongoing operational expenses.
 

MATCHING REQUIREMENTS

Applicants may apply under one of the following three options. A total of $15 million is available, divided equally across the three options. Please review the criteria carefully and select the option that best aligns with your project.

• Option 1: $5 Million – 1:1 Match Required
  • $5 million for single or multiple projects.
  • 1:1 match required (cash or in-kind support).
  • Reimbursement of 50% of invoices for cash match.
• Option 2: $5 Million – Match Waiver Allowed
  • $5 million for projects unable to raise matching funds.
  • No match required, but a Match Waiver Request must be submitted.
• Option 3: $5 Million (Awards up to $500,000)
  • Up to $500,000 per project.
  • 1:1 match required (cash or in-kind support).
  • Priority for projects in rural communities with populations under 20,000.

Applicants who choose the match requirement must clearly outline the sources of their match to demonstrate both commitment and project viability. This is a competitive grant 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. Here are two acceptable methods for providing the match:

1. Cash Match. The applicant should be able to cover costs up front, then submit 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 enhance visitor experiences by extending the length of stay and boosting overnight accommodations.
   • 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. 

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 August 1, 2025  by 3:00 p.m. CDT and will close on Sept. 2, 2025 at 5 p.m. CDT.

Application Portal

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.
  • Is the project multi-use or multi-season
  • 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.
• Applicants must also include a 10-year sustainability plan outlining how the project will remain viable and impactful over the next decade. This should address long-term operations and financial self-sufficiency. It should demonstrate how the project will continue to benefit the local community, adapt to changing tourism trends, and maintain relevance without ongoing reliance on grant funding.

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.
  • If requesting a match waiver, please note that additional community support requirements apply, in addition to the three support letters referenced here.

Additional information regarding the additional requirements can be found in the match waiver.

Operational Enhancements (60 Total Points) 

(Note: This section applies to existing attractions that are not planning a major expansion). 

• Feasibility (10 Points)
  • Is the proposed operational enhancement feasible given the organization’s 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.
  • This section is still required, even if the applicant has requested a match waiver.
• 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.
  • This section is still required, even if applicant requested a match waiver.

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.  

Timeline: The grant portal and link will be available August 1, 2025 by 3:00 p.m. CDT and will close on Sept. 2, 2025 at 5 p.m. CDT.

Application Portal

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 by Sept. 2, 2025 at 5:00 p.m. CDT.

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

SUPPORTING DOCUMENTATION

Please upload the supporting documentation referenced below as separate files, appropriately labeled in addition to your application. The support letters should be uploaded together as a single PDF document. 

• Three Letters of Support. The lead applicant must upload the three letters as a single PDF. If you are requesting a match waiver, please note that additional community support requirements apply, in addition to the three support letters referenced here. The additional requirement information can be found within the match waiver document.
• 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 July 1, 2025, through June 30, 2027. 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, if applicable.
  • 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) 

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

Applicants for the Destination Development Grant may apply under one of the following three options. A total of $15 million is available, divided equally across the three options listed below. Please review the criteria carefully and select the option that best aligns with your project.

OPTION 1: $5 Million – 1:1 Match Required

• $5 million will be awarded to one or more projects.
• 1:1 match is required. The match may be fulfilled through cash contributions or in-kind support.
  • Projects able to provide a cash match are reimbursed 50% of invoices
  • Examples of eligible in-kind contributions include:
    • Donated materials or equipment.
    • Volunteer labor (no administration allowed).
    • Donated land or facilities (documented value).
    • Applicants must provide clear documentation of match sources and values in their application.

OPTION 2: $5 Million – Match Waiver Allowed 

• $5 million will be awarded to grant projects who are unable to raise dollars to match the state investment. Dollars may go to a to a single project or multiple projects.
• No match is required, but applicants must complete and submit a Match Waiver Request.
  • The waiver must include:
    • A clear explanation as to why providing a match presents a hardship.
    • Additional information on the local support and collaborating entities.
    • Be typed on the applicant’s official letterhead.
    • Be signed and dated by an authorized representative.
    • Be uploaded as part of the application.

OPTION 3: $5 Million (Awards up to $500,000)

• Applicants may request any amount up to a maximum of $500,000. Multiple grants will be awarded.  
• Projects require a 1:1 match. The match may be fulfilled through cash contributions or in-kind support.
  • Projects able to provide a cash match are reimbursed 50% on invoices
  • Examples of eligible in-kind contributions include:
    • Donated materials or equipment.
    • Volunteer labor (no administration allowed).
    • Donated land or facilities (documented value).
    • Priority points will be given to projects located in rural communities with populations under 20,000. 

REPORTING REQUIREMENTS

• Reimbursement and Documentation Guidelines Once Awarded Funding
  • 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 should be incurred by June 30, 2027, to be eligible for reimbursement as carryover authority is not guaranteed.

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 project is required upon completion.
  • Ongoing communication with the Department of Commerce-Tourism Division is required after project completion. This includes keeping your business profile updated in the Partner Portal and submitting regular visitor statistics reports.

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.