Chair of N.D. military gallery project committee shares why ground was broken despite it not being fully funded

Construction is paused July 3, 2026, on the Military Gallery addition to the North Dakota Heritage Center due to insufficient fundraising. (Photo by Amy Dalrymple/North Dakota Monitor)

BISMARCK, N.D. (KFGO) – Chair of the Joint Military Museum Advisory Committee Bill Peterson said the gallery project owes Kraus-Anderson construction $157,000 a month since work has been paused.

Peterson made the decision for the project at the North Dakota Heritage Center on the capitol grounds in July because of insufficient private fundraising.

On “News and Views”, Peterson said ground was broken on the $78 million project in December 2025 before it was entirely paid for because it had a favorable fundraising forecast and a $20 million line of credit.

“Construction costs never go down and the idea that also have availability of bridge funds or construction financing ultimately played into the decision to go ahead and start,” Peterson said.

Peterson said a large donation was rescinded, but didn’t name the person or company that asked for their money back. He believes the Fargo-based PACE Fundraising has been doing a great job getting donations.

“There’s 65 donor prospects out there with $75 million of proposals that are coming through… or that have been proposed. If half of those come through, this project will fulfill its obligations,” Peterson explained.

The facility is a partnership with the State Historical Society and the North Dakota National Guard and their foundations to preserve the history of the state’s military members.

Peterson will ask the legislature for a $35 million line of credit during the special session in September with the money having to be repaid in three to five years.

“The idea that we’re running around here spending taxpayer money willy nilly without a plan or without any oversight is absurd. There’s dozens of people involved in this, [Office of Management and Budget] and facility manager, foundations. My board contains a number of highly professional people who are very accountable within the state,” Peterson said.