disruption arising out of the Republican convention:
http://www.twincities.com/mld/twincities/news/local/15813041.htm
Posted on Sun, Oct. 22, 2006
Boon for some, bane for others
BY TOM WEBB
Pioneer Press
Caterers, party planners and hotels are poised for a bonanza when
the GOP comes to the area. But many local shops, restaurants and
bars will be left in the cold.
When Boston won the 2004 Democratic National Convention, boosters
dreamed of economic riches. They never imagined security that would
close 40 miles of roads, fence off a dozen blocks downtown and
cripple local businesses during convention week.
After that experience, one Boston veteran was convinced that neither
political party would ever hold a convention downtown again. David
Passafaro, president of Boston's host committee, figured future
conventions would be held in suburban arenas surrounded only by
parking lots.
Instead, the 2008 Republican National Convention is coming to two
downtowns, St. Paul and Minneapolis. And if Boston is any guide, the
Twin Cities are in for heady times ΓΒ and big-time headaches.
The Twin Cities will buzz with the excitement of hosting 45,000
visitors for a major national event. But in a post-Sept. 11 world,
downtown businesses and commuters will face unprecedented security
disruptions.
Caterers, party planners and hotels are poised for a bonanza. But
many local shops, restaurants and bars will be left in the cold.
Presidents, movie stars, media celebrities, corporate titans and
VIPs will flock to town. But they'll be strutting at private
parties, and you're not invited.
The Twin Cities will get international exposure and, planners hope,
a long-term economic boost ΓΒ unless something goes horribly wrong.
"So don't screw it up," Passafaro said this month. "You've got way
too many people watching. It's not like you've got 10,000
anesthesiologists."
A PARTY PLANNER'S DREAM
They don't call it a political party for nothing.
Before the convention even begins, every state delegation throws a
party. That means 50 party sites, 50 caterers and 50 teams of
waiters.
Then come the glittering events for the big donors. The lavish
bashes sponsored by corporate lobbyists. The fundraisers for
candidates. The rockin' after-parties. Not to mention the issue
luncheons, media fetes, cocktail receptions and hospitality suites
during a weeklong schmooze-a-thon.
"It's a rolling series of events," said Mark Andrew, chairman of
Meeting Planners International, a national planners group. "The best
part about it is, it really is only three hours a day where (the
delegates) are going to be at one location. That's a planner's
dream."
Said Passafaro: "The businesses that deal with conventions ΓΒ
florists, catering, chair rentals, table linens, transportation,
taxis, hotels, all that kind of stuff ΓΒ it's a huge boon to them
because it's so intense."
Ditto those who have prime party space to rent. Organizers already
have put dozens of venues on hold, including St. Paul's James J.
Hill Library, Union Depot ΓΒ even a courtroom where a gangster was
tried.
Ironically, the crush of parties undercuts other local businesses.
"If restaurateurs and bars are hoping for above-average business,
they ought to think long and hard," warned Frank Conte of Boston's
Beacon Hill Institute, a free-market policy group. "Conventioneers
get most of their dinners and drinks for free. Why buy something
when you get it for free?"
SECURITY: THE NEW REALITY
'Security, clearly above and beyond everything else, was the No. 1
issue we had to face," Passafaro said. "And that won't change for
you guys."
The 2004 conventions were the first to have to deal with post-Sept.
11 security measures. The Republican convention in New York City
that year was unique in many ways, including its 10,000 police
officers. So Boston's experience may be the closest parallel of what
the Twin Cities can expect, if an inexact one.
In Boston, three factors raised concern: protecting against a
potential terrorist strike, the convention's downtown location and
the arena's exposed site near highways, waterways and mass transit.
Still, the scope of the security clampdown was a shock.
Interstate highways were closed each afternoon, even 10 miles away.
So were tunnels, bridges, transit stations and more than a dozen
blocks of downtown. Many businesses told employees to work from home
or go on vacation.
"This is nothing short of horrifying," the Boston Globe
editorialized when the security picture was revealed, dubbing it
the "shut up and stay home" plan.
There's no way to know, nearly two years before the convention, what
security steps the FBI and U.S. Secret Service will require in the
Twin Cities. St. Paul is better positioned in one regard: the Xcel
Energy Center is far less exposed to transit and freeways than
Boston's arena.
But the Xcel is downtown, and if Boston's measures are any guide,
block after block of downtown St. Paul will be fenced off, affecting
hospitals, businesses, restaurants and museums.
Traffic on the nearby Mississippi River probably will be halted. The
downtown St. Paul airport will be closed. All roads leading to the
arena, including nearby interstates 35E and 94, are likely to be
restricted, perhaps closed.
The east metro's largest hospital, United, is about a block from the
convention site. Spokeswoman Terri Dresen said discussions have
begun about how United's 3,500 employees will get to work during the
convention, how its patients will get care and how its emergency
facilities will be readied in case of large-scale disaster.
In Boston, convention-goers were protected, but at a cost. Boston
commuter traffic fell 40 percent during the week, and the security
gantlet kept convention-goers inside the perimeter.
"It was as if an invisible blizzard had hit town," the Boston
Business Journal reported from the city's empty streets.
Minnesota's convention planners say they've learned from Boston and
are seeking ways to include local residents.
"We want people to experience it," said Jeff Larson, acting co-
director of the Twin Cities host committee. "I think part of the
message in Boston was, 'Don't come downtown; it's going to be a
mess.' ΓΒ We're committed to having the people of Minneapolis and St.
Paul and the surrounding areas feel a part of this convention,
instead of it being intrusive."
Ultimately, however, federal authorities, not local organizers, will
determine what stays open and what is closed.
COSTS AND BENEFITS
It will cost an estimated $82 million to hold the Republican
convention in the Twin Cities.
Organizers say the money will come from two sources: the federal
government, which traditionally pays for security, and corporate
donors, who pay for everything else. That's the plan. The fear is
that funding will fall short, and local taxpayers and vendors will
be left holding the bag.
In Boston, organizers secured $20 million in local pledges before
they even bid. The Twin Cities did not do that, but organizers do
not seem overly worried about money.
"This is a very generous community," Larson said. "Minneapolis and
St. Paul have a lot of civic pride, a lot of corporate pride. ΓΒ The
corporate giving in this community has been extraordinary, and I
think it's going to be a big plus for us."
Two prominent business leaders, Democrat Vance Opperman and
Republican Stanley Hubbard, are leading the fundraising, the vast
majority of which will have to be done locally.
But fundraising is just half the picture. There's also money spent,
and conventions don't always stay within budget. After Sept. 11,
Boston's security costs quadrupled from the original estimates.
Public-employee unions used the convention to win generous
contracts. And despite signed contracts, both the party and the
presidential campaign lobbied hard for costly upgrades, Passafaro
recalled.
Despite some shouting matches and threats to Boston's future,
Passafaro proudly noted that his city was able to preserve the
budget and even generate a surplus.
Convention boosters prefer to focus on the upside, rather than the
cost, and cite two types of economic impact: immediate dollars and
long-term impact.
The Twin Cities did not run an economic analysis for the convention.
Estimates from other host cities fixed the economic impact at about
$150 million.
A study by the Beacon Hill Institute said Boston's actual boost was
much lower, $14.8 million, mostly because the convention forced out
two big events, costing the city $110 million.
The Twin Cities will not have that problem. The Republican
convention begins on Labor Day 2008 and runs for four days. No other
major events are booked.
Then there's longer term. Mark Andrew, of the national planners
group, thinks winning the convention sends an important message.
"They're not going to have a convention of that magnitude unless the
city is really ready," Andrew said.
The unstated message: If the Twin Cities can host this, it can
handle your convention.