National Park Service and DNR officials say the issue is how the pavilion will be classified.
The theme for the 19th annual sand sculpture event on the Dunes lake shore was Indiana's Bicentennial.
A study concludes that fungi on the covered trees formed a sort of cement that allowed the sand to keep its hallowed out shape.
Two Indiana Harbor Belt Co. locomotives started a series of wildfires at Indiana Dunes in 2012.
The National Park Service closed the dune after it collapsed in 2013, trapping a 6-year-old boy.
The bill would allow alcohol permits at state parks without local input.
The developer's request for an alcohol license was previously rejected by the Alcohol and Tobacco Commission.
The J.D. Marshall Nature Preserve includes a ship that sank in 1911 as well as the 100 acres of water surrounding it.