Go to the mobile version of this Web site.

Login | Contact Us | Site Map | Paid archives | Electronic edition | Subscription Questions | Extras

Twin Cities had an edge over Denver in raising money for the Republican convention

By James Paton, Rocky Mountain News (Contact)

Published August 20, 2008 at 9:05 p.m.

Text size  
Minneapolis-St. Paul GOP convention host leaders spruce up taxis before the Republicans arrive for their convention.

Photo by Jim Mone © Associated Press

Minneapolis-St. Paul GOP convention host leaders spruce up taxis before the Republicans arrive for their convention.

Related Links

More Fundraising

More stories »

Map my news

In raising money for the Republican National Convention, Jeff Larson and his colleagues have enjoyed an advantage.

"We have 19 Fortune 500 companies," said Larson, chief executive of the Twin Cities host committee. "People don't think of Minneapolis-St. Paul as a place for big corporate headquarters. But it is. That is one of the reasons we wanted to bring the convention here."

Colorado, with 10 corporations in the top 500, cannot compete in that area.

Focus on the largest 250 companies on the list, and the gap is more striking.

Minnesota has 11, and Colorado has two, Qwest and Dish Network. In Minnesota, eight companies - UnitedHealth Group, Target, Supervalu, Best Buy, Travelers, 3M, U.S. Bancorp and CHS - rank higher than Qwest.

The Fortune 500 factor is only part of the story, though "it certainly plays a role," Larson said recently after finding a seat in the lounge of Bank, a trendy restaurant in downtown Minneapolis. "It's helpful for us to have that base."

That's because corporations typically favor their hometowns when writing checks.

While a pack of large Minnesota corporations helped the local host committee meet its deadline and reel in about $39 million in cash and in-kind contributions by mid-July, attracting money still was challenging.

Even with all the headquarters in Minnesota, the task facing Larson and his colleagues was hardly a breeze. The total cost, including converting the Xcel Energy Center, insurance, staff and transportation, is estimated at $58 million. The local committee recently moved closer to that mark.

Bringing in money is tough in both markets. The costs are so high most cities in the future will not be able to pay the bill, Larson said. If those expenses cannot be reined in, "only New York, Los Angeles and Chicago" will be able to play the role of host, he said.

"The amount of money really is a burden for most cities," he said.

The Denver host committee said that raising money became easier once the battle between Barack Obama and Hillary Clinton was settled. The group missed a deadline in June and fell about $11 million shy of its target, but finally banked the $40 million.

The Denver group is not finished. "We will be raising money all the way up to the convention," which begins Monday, said spokesman Chris Lopez.

The Twin Cities committee also has counted "in-kind" contributions - items like phone lines, food or computer equipment - though it said the amount is mostly cash. The Denver group has said the sum it raised is 100 percent cash.

The bottom line is that having a bunch of corporate heavyweights alleviates some of the pressure on the nonprofit host committees.

One contributor is Medtronic, based in Fridley, just north of downtown Minneapolis.

When the medical device maker learned that the Twin Cities would host the Republican convention, which will be held Sept. 1-4, it jumped at the opportunity to sponsor the event. So did Target, Ameriprise Financial, Travelers, 3M and others.

Larson, the head of the Minneapolis-St. Paul host committee, said 18 of 19 Fortune 500 companies contributed to the host committee. Hormel Foods, No. 390 on the list, doesn't appear on the list of donors. The company did not return a call seeking comment.

Some Minnesota companies said they would not have chipped in for the Republican convention - at least not on this level - had the event gone to another city.

To some extent, Denver benefits from Minnesota's wealth. A number of Minnesota corporations, including Medtronic and Travelers, have given money to the Denver host committee, too, but in some cases not as much. Other giants, such as Supervalu and General Mills, contributed only to the local group.

Denver-based Qwest and Minneapolis-based Xcel are large players in both states and gave money to the two host committees.

Part of the rationale is fulfilling a civic duty and promoting the Twin Cities, the companies said. Supporting the convention also can be a good way to advance a corporation's interests.

"Health care will be topical at both conventions, and we want to make sure Medtronic and the medical device industry was represented in that dialogue," Rob Clark, the company's senior director of state government affairs, said in a recent interview.

Target also decided to get involved once the convention was set for Minneapolis-St. Paul. The retailer contributed to the Denver host committee as well.

"We're one of the largest employers in the state, and we want to help put on an awesome show," said Amy Reilly, a Target spokeswoman. "We understand how important it is for the local community and economy."

Headquarters a key

Colorado's relative shortage of mega companies may have put the Denver host committee at a disadvantage this summer, but it will remain an important issue long after the convention. Having a cluster of those corporations can assist economic development officials in selling a state or region and in encouraging others to stay or relocate.

"Where the headquarters hat hangs is also very important because of things like civic involvement, leadership and charitable contributions," Dan McElroy, commissioner of the Minnesota Department of Employment and Economic Development, said in an interview at his office in downtown St. Paul. "We don't like to lose headquarters, and we want to grow more of them."

Minnesota is fortunate to have big businesses with "long historic roots" and to have others spun off from giant corporations, McElroy said. The state also has a high-quality work force and a strong education system, two factors that appeal to corporations, he said.

Colorado boosters are justifiably proud to have 10 representatives on the list. But why doesn't Colorado have more? Minnesota has a larger population, but not that much larger.

"It's an age-old question we have struggled to answer," said Patty Silverstein, an economist with Development Research Partners in Littleton.

Persuading a Fortune 500 company to move is quite a feat, and losing them is often beyond the control of state officials. Minnesota, with Delta planning to acquire Northwest, faces the same issue.

TransMontaigne dropped off when it went private, a Brazilian company acquired Swift & Co., and in 1999, mergers wiped out several other Colorado headquarters.

patonj@RockyMountainNews.com or 303-954-2544

Top Fortune 500 corporations, Minnesota vs. Colorado

Company Rank Revenue in billions Based in

UnitedHealth Group 25 $75.43 Minnetonka, Minn.

Target 31 $63.37 Minneapolis

Supervalu 62 $37.41 Eden Prairie, Minn.

Best Buy 66 $35.93 Richfield, Minn.

Travelers Cos. 93 $26.02 St. Paul, Minn.

3M 100 $24.46 St. Paul, Minn.

U.S. Bancorp 122 $20.31 Minneapolis

CHS 145 $17.22 Inver Grove Heights, Minn.

Qwest 187 $13.78 Denver

Northwest Airlines 213 $12.53 Eagan, Minn.

General Mills 214 $12.44 Minneapolis

Medtronic 217 $12.23 Minneapolis

Dish Network 240 $11.09 Douglas County

Comments

  • August 21, 2008

    9:16 a.m.

    Suggest removal

    raoul writes:

    i thought obama and the dems were for the middle class and against corporate America?

    wait, i can hear froward, buffblg and artstarz coming to the hypocritical dems defense: big business largesse is good "change" and "hope" when we can spend it.

  • August 21, 2008

    1:25 p.m.

    Suggest removal

    silverJ writes:

    The funny thing is that Ron Paul is having an even bigger rally than Mccain (and rivaling Obama's) all on his own in Minnesota the same week. The only reason you don't hear about it is that it isn't funded by fortune 500 companies and the only agenda Paul is pushing is personal liberty. This article makes me sick.