“The Hole:” The decade-long succession of failed attempts to redevelop Bismarck’s first urban renewal project

Bismarck demolished an entire city block between 1973-1974 that would stand empty until 1983.
"The Hole" urban renewal site at Broadway & 6th, early 1980s. Courtesy KFYR-TV.

The downtown block that today contains Radisson Hotel and Trestle was the site of Bismarck’s first urban renewal effort, one that didn’t go as planned after a succession of failed proposals over the span of more than ten years… some of those bold proposals would have dramatically altered Bismarck’s cityscape, one of which included a 19-story tower and another would have redeveloped all of downtown.

The site previously contained a block of historic buildings, most notably the original home of Saint Alexius (Lamborn Hotel) and the original location of what became Dan’s Supermarket. The buildings were demolished between 1973-1974 as part of Bismarck’s first urban renewal project. When redevelopment plans fell through… again and again, the cleared land sat vacant through the decade. Bismarck residents bemusedly started referring to the block as “the hole.”

Urban renewal was popular across the nation in the 1970s, funded largely by federal government bonds. The Urban Renewal Agency was in charge of fielding offers and making suggestions to the city, who pledged not to raze any buildings until locking in a redevelopment commitment.

Grand Pacific Hotel Corporation of Seattle was first given approval to redevelop the site. It was the boldest of all the plans considered. As announced in October 1970, a 19-story mixed-use hotel complex called Motor Capital Inn that would stand 100 feet lower than the Capitol was planned. It was to also include a bank, retail, and office space with the top 14 floors of a central tower dedicated to the hotel, which was to have 178 guest rooms, and swimming pool on the third floor. The entire project was expected to cost $5 million, which frankly seems low considering its scope. The developer also planned to construct a department store on another urban renewal site – where the company’s namesake Grand Pacific Hotel stood, but those plans were independent other than the fact that the company wanted to continue operating the Grand Pacific Hotel until the new hotel was completed despite that the hotel was facing foreclosure.

Motor Capital Inn concept, October 1970Motor Capital Inn concept, October 1970 22 Oct 1970, Thu The Bismarck Tribune (Bismarck, North Dakota) Newspapers.com

With a solid commitment in place to redevelop the site, by 1971 the city proceeded with efforts to prepare the block for redevelopment, which included acquiring eight buildings located there for $328,000 in federal urban renewal funding. All but one of the historic buildings on the block were removed in 1973, with the final building being razed the following year.

When Grand Pacific Hotel Corporation sought to extend its deadline in May 1973, the city opted to consider alternative projects. One of those was the Pennsylvania Utilities and Investment Corporation, who intended to redevelop a seven-block area – essentially the entire downtown, but the company pulled its offer due to financing concerns.

In January 1976, William O’hare Company of Boise applied to build a motor hotel on the site, but quickly pulled out due to financing. If that name sounds familiar, William O’hara (and also sometimes spelled as “O’hare” in old newspaper articles) was a pioneer businessman perhaps most remembered as a founding partner in the long-time local department store A.W. Lucas Company in 1899. It’s unclear if the name is a coincidence or directly related here.

A more promising proposal was submitted the following month by Atwood Associates of Mankato, who had just completed the Norwest Bank (today Wells Fargo) building at the Grand Pacific Hotel urban renewal site at 4th Street and Broadway Avenue, was approved to build a $10-$12 million hotel complex. It was to include a 12-story office tower and 187-room motor hotel with pool and bar. After one extension, a study concluded the plan was not financially viable so Atwood pulled its proposal.

In March 1977, the Urban Renewal Agency received two more proposals. One proposal called for a $9 million hotel, office, retail, and housing complex. The proposal that the agency selected was submitted by a group of local businessmen to construct headquarters for State Bank of Burleigh County (today U.S. Bank) at a cost of $4-$5 million, along with a Sambo’s restaurant, two-level retail complex, and parking lot. This plan got as far as announcing a summer 1978 groundbreaking, but when the time arrived financing fell through along with another proposal for the site.

In September 1978, three more proposals were submitted, including another attempt by State Bank of Burleigh County who expanded the plan to include a Holiday Inn hotel in partnership with Tjaden Corporation – then owners of Bismarck’s iconic Holiday Inn on Memorial Highway.

The Atwood-Tjaden joint proposal was accepted. Atwood soon dropped out, but Tjaden remained committed to developing a Holiday Inn on the site independently. After missing three deadlines by late 1981, the agency once again re-opened bids.

Sheraton Galleria “Super Block” concept sketch. Courtesy KFYR-TV.

Two more proposals were submitted in January 1982, both of which offered similar projects and one would ultimately come to fruition – partially. Galleria Associates proposed a multi-phase development project at the long-vacant Sixth Street Urban Renewal site. Charles Whittey was a principal in Galleria Associates. Whittey was also affiliated with Tjaden Corporation. The $30.8 million plan called for a 10-story hotel on the northwest corner, a 13-story office and condominium tower on the southeast corner, a 233-vehicle parking ramp on the northeast corner, and a two-story mixed-use building at the center. The cost estimate soon grew to $32 million, then again to $34.8 million. The completed complex, described as a “super block,” would have occupied the entire city block.

Even though this project finally progressed, it wasn’t without issues and delays and only the first phase was completed, leaving the southern lot empty for another 40 years until Trestle was completed in 2023.

Sheraton Galleria sign, 1983. Courtesy KFYR-TV.

The Sheraton Galleria (today’s Radisson Hotel) began construction in late 1982 with the bulk of construction taking place in 1983 and carrying into 1984. The hotel itself cost $9.4 million to construct, $8.3 million of which financed by MIDA bonds. Concurrently, the City Commission approved construction of the adjoining Galleria parking ramp for $3 million and a skyway linking the hotel to the Parkade, which itself was undergoing expansion. There were also plans to connect the complex by skyway with the joint Q&R Clinic/Bismarck Hospital complex being constructed directly across but that never came to fruition.

Sheraton Galleria circa 1980s. Courtesy KFYR-TV.

After some setbacks, chiefly financial concerns, the Sheraton Galleria opened in December 1983 although some of the finishing touches on the hotel weren’t completed until 1984. Only the first flour floors were finished at this time; only two guest room floors. A news article of its opening mentioned issues with guest room keys and missing light bulbs, among other unfinished aspects. It wouldn’t be until May 1984 that construction was officially completed and phase two, which included the office and condominium tower and two-story mixed-use building at the center never proceeded as financing rocked the hotel’s developers with the hotel on the brink of bankruptcy for years until selling to Kelly Inn Limited of Sioux Falls in 1987.