Party time for DNC companies

Deals already being hammered out

By Chris Walsh, Rocky Mountain News (Contact)

Published December 26, 2007 at 12:05 a.m.
Updated December 26, 2007 at 11:39 a.m.

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Photo by Ken Papaleo / The Rocky

Three Tomatoes Catering executive chef Joe Beggs prepares salads Friday afternoon. The business already has booked 18 Democratic National Convention-related gatherings in August.

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The Democratic National Convention doesn't roll into town for eight more months, but some local businesses are already benefiting in a big way, cementing deals to provide everything from posh party space to private transportation.

And the DNC economic train is just leaving the station: There will be plenty of additional opportunities for local businesses in the weeks and months leading up to - and through - the convention in August.

Just ask Joanne Katz, with Denver-based Three Tomatoes Catering, which already has booked 18 convention-related parties and gatherings scheduled for August, not to mention a handful of similar events well ahead of the convention.

Katz, who co-founded the company, expects to generate an extra $100,000 to $150,000 in revenue when it's all said and done. That could translate into a 25 percent spike in business over the same period this year.

"We have exclusive relationships with a few venues that are booked for many parties" in August, Katz said. "And with the election so close, we anticipate we will have many fundraisers to cater for both parties. We have catered two Democratic events in the past few weeks . . . and we have two Republican fundraisers on the books."

Bigger companies have a lot to gain, too.

Qwest, for instance, is vying to be the official telecommunications provider of the convention, which would give it unprecedented exposure.

The Denver Metro Convention & Visitors Bureau expects 35,000 visitors to filter through Denver, boosting business for hotels, restaurants, bars and entertainment venues, generating an estimated $160 million in economic benefits.

The bureau said there could be as many as 1,500 parties, events and other gatherings over a two-week period surrounding the convention, not to mention dozens more in coming months as organizers and others prepare for the DNC.

"It's going to be big," said Rich Grant, director of communications for the Denver Metro Convention & Visitors Bureau, adding that the city also will host two other large conventions near the DNC.

While Denver has entertained similar-sized conventions, the DNC will generate much more ancillary spending on parties, dinners, gatherings and entertainment, Grant said.

Significant boost

Some observers say city officials often overestimate the economic impact of such events. In fact, several studies argue that cities can actually lose money because of the costs associated with road closures and other transportation hassles, events that must be canceled or will not take place, and decreased worker productivity.

Some types of companies also lose business as locals put off things such as weddings, and downtown "could seem dead" if locals hibernate and stay away, Grant said.

But there's little doubt that the convention provides a significant boost to many small businesses, particularly caterers, decorators and other companies that focus on special events.

Numerous restaurants and venues, for instance, have already booked out space for DNC-related gatherings, while others report that they're starting to receive inquiries.

Jannelle Wilkins sees a big opportunity to gain business from visitors looking for Spanish translators. Her Denver-based company, Alma Journeys, offers language-immersion classes in Spanish-speaking countries.

"We'll see a lot of media and business people coming in who will need these translation services," Wilkins said.

Besides the people visiting during the convention, thousands will drop in ahead of time to prepare for the event. The convention bureau, for instance, recently hosted about 450 members of the media.

Additionally, some DNC staffers have relocated to Denver, renting out apartments, paying local taxes and spending money in the community.

DNC organizers also will spend millions of dollars for a variety of logistical and support services such as transportation, construction management and merchandising. They are now taking proposals from businesses that provide services such as transportation, satellite services and credential services.

"We have been working with a number of local businesses through- out 2007," said Jenni Engebret- sen, a spokeswoman for the Democratic National Convention Committee. "We need companies that can set up tents and a media pavilion in the parking lot, staging companies with lighting and sound and audio, local printers that can handle T-shirts, buttons and banners, and local sign-language interpreters."

Online directory

The DNC's host committee has created an online directory of local businesses catering to convention visitors. More than 1,000 companies have signed up, including those specializing in banking, decorations, flowers, graphic design, insurance, printer services, restaurants and transportation.

The list allows users to search for businesses run by minorities, women, people with disabilities, and owners who use environmentally friendly practices, although any company may apply to be in the directory.

While the DNC has offered such directories in other cities, this is the first time it is available online and in an electronically searchable format, organizers say.

The benefits go beyond the bottom line.

Local businesses will see intangible gains, such as the opportunity to make key contacts that could lead to future business.

"You can meet people from across the country and world and promote what you do to them," said Elbra Wedgeworth, president of the Denver 2008 Convention Host Committee. "The person you meet at one of these events might be the one you're doing business with next year. You can't put a price tag on that."

A Spice of Life catering in Boulder has already hosted a DNC-related event and is hoping to glean more business going forward. But owner David Rubin said additional revenue is only one benefit.

"I personally benefited by being involved in the whole process and the education of it all," Rubin said.

"As the owner of a company that is not politically active, it was arresting to learn how the process works."

A Spice of Life has been more active than most companies in trying to capitalize on the convention. It recently made contact with delegates and organizations in nearby states. While Rubin doesn't expect a financial windfall, he said the company will probably get overflow business when the larger catering companies and restaurants here hit capacity.

The overall impact of the convention could ripple through Denver for years. The city will get a hefty dose of national exposure, which could help draw more visitors here in the future.

"I've been doing this for 28 years and have never seen this perfect storm of media writing about Denver," said Grant, of the visitors bureau. "We've had reporters in town from all over the world and coverage we haven't ever had. We're seeing unprecedented media interest in the city."

walshc@RockyMountainNews.com or 303-954-2744

DNC by the numbers

35,000 visitors are expected to attend.

1,500 parties, events and other gatherings are expected over a two-week period.

1,000 companies have signed up on an online directory of local businesses catering to visitors.

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