Minot, ND – The Dunseith Debacle has consumed a considerable amount of my time over the past few months and has likely been the most significant story I’ve covered at The Dakotan during my time here. To summarize the situation as concisely as possible: businessman Charles Hoefer purchased the former Benchmark chip manufacturing facility in Dunseith, ND. However, shortly after renovations began, Hoefer and his team made a startling discovery—numerous aerospace components, some with military applications, as well as files related to operations at Minot Air Force Base. Even more concerning, they found what appeared to be active work zones inside the facility.
Hoefer immediately reported his findings to the authorities, which is where the second half of this story begins.
Since contacting officials, Hoefer has faced conflicting messaging, a lack of institutional support, and a series of troubling incidents—including alleged stalking, intimidation, and extortion attempts. Additionally, despite public assurances of support, the North Dakota Department of Commerce has reportedly obstructed his efforts to complete initial financing, repeatedly freezing loans and undermining deals behind the scenes when Hoefer had millions on the table from outside investors.
Despite these challenges, Hoefer has recently taken his fight public. Over the past three months, he has participated in a series of podcasts with us at The Dakotan to bring attention to his situation.
Following a December meeting between state legislators and Commerce Department representatives, Hoefer now alleges that numerous falsehoods were presented to lawmakers regarding his business dealings with the department. In response, he has prepared a detailed presentation, which he will review with Jonathan and me in an upcoming podcast.
Meanwhile, Hoefer has rallied support from a coalition of legislators and local leaders in the Dunseith and Bottineau areas. Two formal letters have been sent to Governor Kelly Armstrong’s office advocating on his behalf.
The first letter, signed by both the Bottineau Economic Development Corporation (EDC) and the Community Development Corporation of Dunseith, outlines a timeline of the issues Hoefer has faced. It urges the governor to agree to a cooperative resolution, stating: “Governor, this matter is costing our communities jobs and, in our view, is tied to personal issues at the Development Fund—not the quality of Hoefer Group’s project, which represents the best opportunity we’ve had in years. We respectfully request that you take action and accept Hoefer Group’s cooperative resolution proposal.”
Whitney Gonitzke, Director of the Bottineau Economic Development Coorporation commented on the matter, saying "The loss of Benchmark hurt our area, and our community has been anxiously awaiting the ramp up of work and employment for the RV manufacturer, Hoefer Group. We have been disappointed with Commerce’s response to Hoefer Group, which is in opposition to the community and all project partners. Local lenders, investors and EDCs are dedicated to the vision of state-of-the-art RVs being manufactured in Dunseith, with many more opportunities ahead."
The second letter, authored by District 15 Senator Kent Weston and signed by 17 additional state legislators, goes further. Weston details his own investigation into the situation, highlighting inconsistencies in the Commerce Department’s statements and the economic benefits a fully operational facility in Dunseith could bring. Weston briefly commented on the situation to me saying, "This is a serious issue that warrants attention from the governors office to bring action and transparency to the commerce department and bring an amicable resolution."
With the ball now in Governor Armstrong’s court, Hoefer awaits a response to his request for a meeting. His goal is to reach a mutually beneficial agreement with the state that would allow him to begin RV production lines and bring in outside partners. Hoefer stated, "These letters show the Governor this issue cannot be ignored. In 2022, we found shocking crimes tied to the Dunseith factory. We were promised support and instructed in clean-up by Commerce, and records of that are made public. The crimes were part of a separate, concealed Commerce project, and ever since discovering it, we’ve faced sabotage, gaslighting, and retaliation by Commerce and North Dakota Development Fund officials."
"Governor Armstrong controls the Development Fund. He picks its board and directs the Commerce Commissioner, who sits on and guides its board. The letters present third party conclusions of unjustified actions by Commerce officials that harm local communities, cripple our business, and stain the State’s image as a place for new manufacturing jobs. An amicable resolution is on the Governor’s desk, crafted with input from legislators, and there is no justification to delay remedy.”
We have reached out to the Governor as well as his Chief of Staff for comment, but they have yet to respond as of Friday evening. As this story continues to develop, we will keep you informed on the latest updates in what could become one of the biggest scandals in North Dakota in our lifetimes.
