Commission Defends Vote | Video

Retha Colclasure | 3/20/2013

Bismarck city commissioners this morning defended their vote to go ahead with a $27 million exhibit hall expansion project. The commission says they plan to pay for the project by borrowing from the tax revenue already dedicated to the Civic Center from the existing hospitality tax.

The tax brings in about $2.7 million every year, and usually covers the center`s operating costs, plus the cost of any repairs or improvements. In 2012, the city retired a bond that was using more than one million dollars of the annual revenue. That money will now be freed up to be borrowed for the expansion.

"We are comfortable that with bond payment of two million dollars each year we still will have sufficient revenues in that hospitality tax to pay the ongoing maintenance project costs and to continue to do those capital improvement projects and those repairs that we need," said commissioner Parrell Grossman.

Commissioners said they also plan to proceed with a feasibility study to look at building a new, larger facility on the north side of town. That project was proposed by developer Ron Knutson.

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