A proposal to provide up to $15 million to support a Cass County research and technology park prompted questions about structure, oversight and fiscal risk when it came before the House Government and Veterans Affairs committee Wednesday.

Representative TJ Brown, who has been working with the park, described a potential compromise: a $7.5 million direct grant and a $7.5 million line of credit overseen by the state’s industry commission, with the industry commission evaluating performance milestones over two years before the second $7.5 million would be released or converted.

Brenda Weiland, CEO of the NDSU Research and Technology Park, described multiple revenue streams the park expects to develop: royalties from intellectual property, engineering contracts with global corporations and defense contractors, ground leases from tenants and incubator lease income. “There’s 4 listed revenue streams,” she told the committee, listing royalties, contracts, ground leases and lease income as business lines that would support the park.

Why it matters: Supporters said the park could create jobs and expand the state’s technology capacity; skeptics warned about committing large state dollars and asked for clarity on whether a line of credit would equate to an immediate appropriation or a later deficiency payment the state would guarantee.

Outstanding finance questions
- Several members asked legislative counsel and finance staff to clarify how a line-of-credit mechanism would be treated under state budgeting rules — whether the state would be on the hook immediately for the full $15 million or whether the line would be contingent and contingent upon later appropriations or milestone certification.

- Representative Veil and others asked whether a line of credit would effectively obligate the state for the full amount in future sessions via deficiency payments.

Committee directions: The committee held the item for additional legal and finance clarification and asked staff to bring a finance official to a later meeting to explain how a line of credit would operate in state budget practice. Several members supported the project’s potential economic impact but asked for protections for taxpayers if private fundraising did not match expectations.

Next steps: Sponsors said they and legislative counsel are preparing an amendment to reflect the grant/line-of-credit approach and would return once LC and finance staff have clarified the mechanics.