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Tourism funding, destination development grants reviewed; committee hears early results and requests carryover authority
Summary
Commerce testified on tourism marketing and the recent Destination Development Grant program: strong applicant demand, early project openings and ongoing monitoring, with staff seeking carryover authority for some slower-starting projects.
Sarah Adi Coleman, director of the tourism and marketing division at the Department of Commerce, updated the committee on operating and one-time tourism proposals and results from the Destination Development Grant program.
Sarah said tourism's operating base (operating/media/production) is about $9 million ongoing (she corrected an earlier larger figure to remove prior one-time additions) and noted media costs, website/technology and longer campaign duration drive operating needs. Both governors recommended continued tourism marketing support and Armstrong's budget shifted some operating dollars from the general fund to SIF for one-time items.
Destination Development Grants: staff reported there were 81 applicants from 41 communities requesting about $151.6 million; the program funded a subset of projects and staff analyzed project types. Summary counts included 23 brand-new projects, 26 expansions/enhancements, 12 categorized as both expansion and maintenance, 14 maintenance-focused projects and 6 that did not fit program parameters. Staff said recipients are required to provide quarterly updates; some projects already show bookings and openings (Indian Hills Resort family lodge opened and has booked events; Woodlands Resort event center has events scheduled). Several applicants will need carryover authority to complete construction; staff said they will request that carryover when necessary.
Sarah also described the earlier tourism operating dollars that had been funded through SIF and noted Armstrong removed a Burgum proposal to fund tourism operating expenses for a 250th Great American State Fair event.
Ending: The committee asked for follow-up documents on recipient progress; staff said they will supply quarterly reports and will request carryover authority where projects have not yet reached construction completion.
