DNC spending bonanza stays downtown

Cherry Creek, Tech Center miss out on bounty

Joyzelle Davis and Gargi Chakrabarty

Published August 30, 2008 at 12:05 a.m.

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Photo by Ken Papaleo / The Rocky

Large crowds stroll on the 16th Street Mall on Wednesday afternoon as DNC visitors spent money in downtown restaurants and shops. "It was definitely a home run," said Steve Weil, president of Rockmount Ranch Wear on Wazee Street.

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The DNC spending spree apparently didn't ripple far beyond downtown retailers and restaurants.

Businesses in Cherry Creek and the Denver Tech Center reported that they didn't get any boost from the estimated 50,000 delegates, media and onlookers in town this week. In fact, they saw a marked drop in business.

Several downtown businesses, however, enjoyed a bumper week.

"It was definitely a home run," said Steve Weil, president of Rockmount Ranch Wear on Wazee Street, which saw its sales double starting the Wednesday before the convention began. "We were stormed at times, and totally random times."

By contrast Joel Diner, owner of Pesce Fresco - an Italian restaurant in the Denver Tech Center - said his business plummeted as much as 20 percent this week.

"Because of the convention and the Beijing Olympics, people are not eating out but staying home, watching television," Diner said.

Just how much of an economic impact the convention would have on the city was one of the big unknowns heading into the DNC.

Denver had hoped that the gathering would provide a boost as big as $160 million, while some worried the impact would be just a fraction because conventioneers would be tied up with delegation business and residents would avoid downtown.

"We didn't know quite what to expect. We knew many businesses were giving people time off or letting employees work from home, but it turned out that the convention attendees more than made up for that," said Joyce Meskis, owner of the Tattered Cover.

The Tattered Cover's LoDo store turned into a hub for media and visitors as well as authors like Michael Chabon, who unexpectedly popped in to sign copies of his books. The Tattered Cover's east Denver store - far from the DNC crowds - stayed "on target" for the week, she said.

Businesses in Cherry Creek are hopeful that they may still capture tourists who stayed in town over the Labor Day weekend to see more of Denver. Several Cherry Creek businesses noted that logistics proved to be a problem, with many visitors finding it hard to get out of downtown because of road closures and infrequent cabs.

The long convention hours from 4 to 9 p.m. also might have exhausted many visitors who preferred to stay close to their hotels or attend private parties.

"It's been a little disappointing so far. There's been so much focus on downtown that there isn't another neighborhood in town that's been getting any attention," said Nick LeMasters, general manager of the Cherry Creek Shopping Center.

The center advertised prominently along the 16th Street Mall and ran hourly shuttles from several hotels, but LeMasters said he was "underwhelmed" by the number of visitors to the mall.

Elway's, the Cherry Creek hotpsot, had staffed up and stocked up in preparation for the week but didn't capture much of the convention crowd.

"Our sales were not as strong as we were hoping for," said Elway's floor manager Mary Richardson. The restaurant had opted out of hosting private parties, banking on the visitors and regular customers to carry the week.

It's too early to know from sales tax receipts how much of an impact the DNC had on Denver, but it's already paid invaluable dividends in terms of positive media coverage and exposure, said Tom Clark, executive vice president of Metro Denver Economic Development Corp.

"We're on a long-term marketing and public relations strategy, and this was a piece of that," said Clark, who described the DNC as a "grand slam" for Denver. "It exceeded expectations in terms of media bounce."

For downtown retailers, the surge of business came as a welcome break from worrying about whether consumers would continue to spend in the face of higher gas and food prices and a shaky job market.

"It was phenomenal. I had to order things in overnight for customers," said Sabine Rocho, owner of clothing boutique Eve in Larimer Square. The store stayed open an additional four hours each night during the week, serving up sangria and hors d'oeuvres as delegates streamed out of the Pepsi Center.

"It was so great to have that one-time boost, and then you move on and start holding your breath again."

Many downtown restaurants also reported record sales for the week. Earls, on the 16th Street Mall, had its best week ever, as did the fast-casual Noodles and Co.'s store in LoDo. Burger joints and hot dog stands saw long lines, while bars at night overflowed with patrons.

Not every downtown business cashed in on the convention. Greens at 16th and Arapahoe saw a 5 percent jump in sales, but that was more than offset by a 20 percent decline at its Broadway and Colfax location. Owner Jon Nassif said he kept the salad restaurant open three hours later, but that didn't help.

Don Pieratt, owner of Chez Cheese Gourmet Market in Writer's Square, said that while his business was slightly above average it wasn't the "Christmas in August" he expected because many of the delegates were already stuffed from their rounds of parties. But Pieratt didn't mind because he enjoyed the energy of the city and the goodwill that Denver seemed to be spreading during the DNC.

"I got to meet people from around the world," said Pieratt, noting that reporters and visitors from Poland, Italy and Australia came through his store during the week. "The city kept everything going very well, and the protesters behaved."

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