Inside Fundraising for the 2008 Party Conventions: Party … · 2019-01-29 · • June 2007: Gov. Ritter was in ... • The host committee met its December target, reported the Denver

©2008 The Campaign Finance Institute www.CFInst.org

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New CFI Analysis of Convention Fundraising Documents

Inside Fundraising for the 2008 Party Conventions: Party Surrogates Gather Soft Money While Federal

Regulators Turn a Blind Eye The Democratic and Republican parties have each accepted $16.4 million federal grants to support their upcoming presidential nominating conventions. The money is provided on condition that the parties spend no other funds on these events. This program was enacted in 1974 following a corporate contributions and corruption scandal surrounding the 1972 Republican convention. But outside the public financing system, private support of conventions via convention city “host committees” has exploded in recent years. In 2004, if one leaves aside the $50 million federal grant to each convention city government for security, private financing paid for approximately 80% of each party’s convention. It subsidized the “build out” of the auditorium, construction of a media center, mounting of a lavish TV production, communications and party office space – all components of the biggest and longest political ad of the presidential election. The host committees formally disburse the funds, but the party convention committees elaborate and revise the host committees’ budgets, approve their contract specifications, and even select the contractors.1 Contributions, largely corporate, to host committees soared from $1 million in 1980 and only $8 million as late as 1992, to $56 million in 2000 and $142 million in 2004. Private financing for the 2008 conventions is currently slated to total about $112 million but, based on past history, the final figure could well go higher. (see Appendix D for a tabular history of convention financing). After the enactment of the 2002 Bipartisan Campaign Reform Act -- which banned unlimited corporate, union and individual “soft money” contributions to political parties -- the Federal Election Commission considered whether its longstanding “narrow exemption” for host committee spending had evolved into a gigantic loophole, one that could permit the return of potentially “corrupting” party soft money via conduits. In the end however, the Commission thought it found a reason to uphold the existing system: “[T]he fact that historically members of the opposite party have played key roles in the convention host committees strongly supports the Commission’s conclusion that the host committee activity is motivated by a desire to promote the convention city and not by political considerations.”2 But CFI’s assessment of evidence concerning host committees fundraising for the upcoming Democratic convention in Denver, and the Republican one in Minneapolis-St.Paul (including the results of CFI freedom of information requests to Governors and


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Mayors in Colorado and Minnesota) leads to a radically different conclusion. When one looks not simply at the formal organization of the host committees (as the FEC did ) but at who is actually raising the money, one sees that the dominant roles are being played by teams of elected officials at all levels of government from the convention party and their associates in the party’s network of financiers and operatives. Basically, Republican elected officials, their financiers and party operatives are asking for money to fund the Republican convention while Democratic ones are doing the same thing for the Democratic convention. Furthermore, when these Colorado Democrats and Minnesota Republicans “make the ask”, their undeniable civic boosterism frequently is accompanied by offers of special access to federal elected officials, national party leaders and other party influentials. Contrary to the FEC’s conclusion, “political considerations” have a lot to do with host committee fundraising activity. All the more so when one considers that about half of the private money for both conventions this year is slated to come from out-of-state companies with relatively little desire to “promote the convention city.” The Denver Host Committee: A Democratic Fundraising Mechanism Steve Farber is a prominent Denver attorney and civic leader, the founding partner of Brownstein, Farber, and Hyatt, which conducts one of the largest lobbying businesses in Washington D.C, and a major state and national Democratic donor. In July 2004, Farber hosted his golfing buddy Bill Clinton at his home where the ex-President plugged his book and raised funds for his presidential library. Farber had “raised millions” for three-time Colorado Democratic Governor Roy Romer’s campaigns.3 According to Opensecrets.org, he and his wife Cindy have contributed $148,000 to federal elections since 2003, $129,000 to Democrats. His partner, Norman Brownstein and wife Helen have donated $170,600 to the Democrats in the same time period. In 2006, Farber became head of fundraising for the host committee bidding for Denver’s first Democratic Convention in 100 years.4 The committee’s, and its supporters’, basic argument to the Democratic National Committee was that its Denver location offered the Party an opening to a changing electorate in the Mountain West.5 Working with Willie Shepherd, another Denver lawyer, civic activist and Democratic contributor ($15,250 to Democrats since 2005 according to Opensecrets.org), Farber helped secure soft promises of $23 million in cash and in-kind services from corporations and wealthy individuals.6 When the committee’s bid was accepted in January 2007, it reorganized to deal with what Farber called its “top priority”: fundraising.7 A new “Executive Committee” brought in four top Democratic elected officials: Governor Bill Ritter, U.S. Senator Ken Salazar, Mayor John Hickenlooper and U.S. Representative Diana DeGette. The Executive also included two holdovers from the previous committee leadership -- Farber and Democratic councilwoman Elbra Wedgeworth who had first proposed bringing the convention to Denver to DNC Chairman Howard Dean.8 (Farber, the head of “Democrats for Business” had uncharacteristically supported Ritter’s Republican opponent in the just-concluded


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gubernatorial election, but quickly returned to the party fold9). Ritter, Salazar and Hickenlooper personally promised Dean in a conference call that they would raise the required private funding of $55 million in cash and in-kind services. Of this amount, as much as $35 million was expected to come from outside of Colorado.10 Although the entire Executive Committee has been involved in fundraising, it is clear from records released to CFI (under the Colorado Open Records Act) by the Governor’s and Mayor’s office, and from local press reports and interviews, that Ritter, Farber, Hickenlooper and Salazar have been the most important solicitors. Often team members have prospected for funds jointly. (Sources for the following account are the released documents unless otherwise indicated in citations)

• April 2007: Mayor Hickenlooper traveled to San Diego for a fundraising breakfast hosted by Murray Galinson, a banker, community leader and major national Democratic donor. He also went to Philadelphia to meet with representatives of Lockheed Martin, Aramark, PNC Bank, Sunoco and Charming Shoppes Inc. (the first is listed as a sponsor, i.e. donor, on the host committee website) among others.

• April 2007: Gov. Ritter, Farber and Mayor Hickenlooper went to Las Vegas and

met with over 20 potential donors individually and as many as 30 others in groups. (Farber’s firm has a major practice with Las Vegas casinos). Ritter sent personal thank you notes to a number of companies including International Game Technology, David/Hicks Brokerage, The Molasky Companies, Golden Gaming and Insight Holdings.11

• May 2007: Mayor Hickenlooper and Farber journeyed to New York to approach

unidentified Wall Street executives.12 • June 2007: Gov. Ritter was in Chicago meeting with such top national

Democratic donors as Fred Eychaner of Newsweb and J.B. Pritzker (heir to the Hyatt hotel fortune), both of whom had previously promised to support the convention,13 and investor and prominent Barack Obama supporter James Crown.14 (See Appendix A)

• July 2007: Rep. DeGette “helped tout the convention to Democratic activists and

lobbyists…. ‘When you have the conventions in a place like Denver or Minneapolis, it’s all hands on deck,’ she urged.”15

• August 2007: Farber told a reporter he was making 10 fundraising calls a day

from his Denver office16

• September 2007: Farber forwarded to Mayor Hickenlooper a welcome e-mail he had received from an official of Qwest Communications. Qwest had made the biggest pledge to the host committee in 2006 ($6 million in cash as well as in-kind services), but had not yet delivered due to a dispute about whether it would


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be appointed the convention’s Official Telecommunications Provider.17 The e-mail read: “We wire transferred 500K this morning…Look forward to finalizing our sponsorship with the host and the DNCC…”

• September 2007: Gov. Ritter met with representatives of Safeway and Amgen in

Washington, D.C. (both later became sponsors).

• December 2007: As a $15 million cash party fundraising deadline approached, Gov. Ritter approached Anna Burger, International Secretary-Treasurer of the Service Employees International Union, about “getting more money by Dec. 14.” SEIU’s Section 527 political organization transferred $250,000 to the host committee on December 14.18

• The host committee met its December target, reported the Denver Business

Journal, “with help from prominent local Democrats – including Governor Bill Ritter, Senator Ken Salazar, and Denver Mayor John Hickenlooper as well as attorney Steve Farber –who personally appealed to business executives.”19 According to Hickenlooper, he and others – he mentioned U.S. Sen. Ken Salazar, Gov. Bill Ritter and U.S. Rep. Diana DeGette -- had “traveled 20,000 miles and spoken to people from 60-80 companies since June.”20

Minneapolis-St. Paul: Republicans Outside the Host Committee Lead Its Fundraising The original Minneapolis-St.Paul host committee was in the running for both party conventions. It was co-chaired by Vance Opperman, a leading Democratic businessman/political fundraiser, and Stanley Hubbard, a leading Republican businessmen/ political fundraiser. But after the Republicans chose the Twin Cities in September 2006 and the DNC began to look toward other locales, Opperman took a back seat on the committee. By mid-2007 the host committee’s leadership and strategy was being overwhelmingly shaped by two Republican elected officials, Governor Tim Pawlenty and Republican Senator Norm Coleman, neither of whom actually sat on the host committee. Furthermore, documents demonstrate that Pawlenty himself carried out a major part of the committee’s fundraising for Minnesota’s first convention since 1892. The second term Governor had a special interest in presidential politics. A “Pioneer” bundler of contributions for George W. Bush in 2004, he has been one of the three co-chairs of Senator John McCain’s 2008 presidential campaign. Democratic Mayors Chris Coleman of St. Paul and R.T. Ryback of Minneapolis, who were also not on the host committee, have played relatively small roles in raising convention funds based on their responses to CFI requests for relevant records and interviews with their staffs. Erin Dady, Director of Convention Planning for the City of St. Paul, where the convention itself will take place, told CFI that Mayor Coleman “had little or no role in fundraising.” She observed that while Mayor Coleman attended two meetings with Pawlenty, Senator Coleman and Ryback, “we never saw a list of who


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contributed,” and “we have left fundraising to members of the host committee.”21 Tina Smith, Ryback’s Chief of Staff, said that to her knowledge he has not done “the heavy lifting” for the convention outside of “CivicFest,” a collateral host committee event celebrating Minnesota and American History, Democracy and the Presidency.22 Here is how fundraising has worked, based mainly on material released after CFI’s requests to the Governor’s and two Mayors’ offices (under the Minnesota Government Data Practices Act) for records of communications concerning convention fundraising, as well as local press reports, and selected interviews.

• May 11, 2007: Mayor Ryback wrote the then Host Committee Chair that he was “getting very concerned about our lack of progress on fundraising.” To address the matter, he proposed that the two of them meet with Senator Coleman, Pawlenty and Mayor Coleman. Soon after, Governor Pawlenty and Senator Coleman moved strongly -- and unilaterally -- to put together a more effective, Republican-led effort.

• May 31: Gov. Pawlenty decided to invite 110 CEOs to join him, Republican

Convention Committee Head Maria Cino, and host committee officials for a fundraising breakfast. Due to “the significant urgency of the Host Committee’s lack of production,” said a memo by a Pawlenty’s staff person, notice was short; and only 20-25 CEOs might attend.

• June 1: The host committee staff provided Pawlenty with the names of seven

Minnesota CEOs to call to personally invite to the breakfast. Rick Nelson, a fundraiser on Senator Coleman’s staff, provided background information on the executives’ previous involvement with the host committee. Concerning Robert Ulrich, CEO of Target (a company listed as Senator Coleman’s top “career contributor” by Opensecrets.org), Nelson wrote, “Senator and Governor asked him to chair effort [i.e. the host committee] but he declined.”

• June 5: A Pawlenty aide provided “talking points” for the Governor and another,

unidentified person to use in a phone discussion with Warren Staley, then CEO of Cargill Inc, who was also a major national Republican donor and a member of the President’s Export Council. Staley would be invited to accept the host committee Chairmanship and join with them in a major fundraising effort. The talking points began by emphasizing that the convention was “an opportunity for us to shine in the world spotlight for 4 days” and for corporations to “connect with influential government officials (Cabinet, President, next President).” The briefing continued, “We have some commitments already from Xcel Energy, Supervalu, Wells Fargo and Qwest which total $9 million. What we need is someone in the MN corporate community who can help us raise the money. We have a budget of about $57 million…We expect to raise ½ from MN corporate community.” “Look at it as a much enhanced chair of the United Way,” the talking points cajoled, “a Chair that will be recognized by the President, the Vice-President and the next Republican President along with CEOs from the Country’s largest


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corporations.” In conclusion, “The Governor and I are certainly prepared to do whatever we can…but we feel we need someone from the corporate community to help us lead the effort.”

• June 6: Gov. Pawlenty held the CEO fundraising breakfast. His talking points

pitched the convention’s short and long-range economic benefits for the Twin Cities as well as the aforementioned opportunity to “connect with influential government officials (Cabinet, President, next President).” In addition, “We plan to have various events with Cabinet/VP and other elected officials to thank donors for their contributions.” Pawlenty was to ask the executives -- who would have in front of them packages describing what donors at various levels would get for their contributions – for corporate donations of at least $1 million if they represented Fortune 500 companies or $250,000-$500,000 if they were from other large companies. He would promise to be “contacting and meeting with most of you individually to ask for your [companies’] support.” (See Appendix B)

• June 12: Pawlenty scheduled a phone call with New York Governor George

Pataki to mention his forthcoming trip to New York City to raise money for the host committee. A staff memo emphasized that Pataki “was heavily involved in the [2004] convention and can be a great resource of information and contacts in New York.” Pawlenty was asked to see if Pataki was “willing to make some calls on your behalf to some CEOs who we are trying to set up meetings with – call to David Koch (COKE) targeted CEO.” (four companies associated with Koch Industries are listed as donors on the host committee website)

• June 15: Pawlenty, Senator Coleman and the Mayors of Minneapolis, St. Paul and

Bloomington (home of the nearby “Mall of America”) met privately at the State Capitol to talk about a fundraising plan. The news conference, it was reported, was “designed to let [corporate] leaders know they can expect to be approached.”23

• July 9: Mayor Ryback’s Chief of Staff received from the host committee a list of

seven local company contacts “we thought would be a good start for the Mayor. [emphasis added] Please let me know what you think.” Of these companies, only Caribou Coffee is nationally known; none are currently listed on the host committee website as donors.

• September 27: For the next day’s planned meeting with Senator Coleman,

Governor Pawlenty and Mayor Coleman about the Convention, Ryback’s chief of staff suggested to him, “We should also get an update on fundraising.”

• January-March 2008: Pawlenty was busy with the McCain campaign, visiting

with the candidate at his ranch in Sedona, Arizona, stumping for him in Iowa, Illinois, Michigan, and Florida. He was increasingly talked about as a possible Vice-Presidential running mate for McCain. But he found time during this period to travel on behalf of the host committee to Chicago and Washington, D.C.24


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Senator Coleman’s specific fundraising contacts on behalf of the convention are unknown. (His campaign chief Cullen Sheehan has not responded to CFI’s repeated requests for a statement on this matter) However his strategic influence on that effort, evidenced by his involvement in recruiting for the Chairmanship of the host committee and providing background information on potential donors, was manifested again in August when a close associate accepted his and Pawlenty’s offer of the Chairmanship of the host committee and vowed to focus on fundraising.25 According to Tina Smith, Chief of Staff for Mayor Ryback, Senator Coleman and Governor Pawlenty took the initiative in identifying Douglas Leatherdale as their candidate for the Chairmanship.26 (The two Democratic Mayors, she said, were “comfortable” with the choice). Leatherdale is the retired Chairman and CEO of St. Paul Travelers Insurance (one of two Fortune 500 companies in St. Paul and the city’s leading employer), and a member of the Board of Directors and significant investor in two other major national corporations with Minnesota headquarters, UnitedHealth Group and Xcel Energy (all three companies are listed as committee donors). He has also been a major fundraiser for Minnesota arts and educational institutions. Leatherdale’s long political relationship with Senator Coleman is widely known in the Twin Cities. During the latter part of the 1990s, he was the most publicly visible business force behind the creation of the Capital City Partnership, a group of corporate and nonprofit leaders that backed then St. Paul Mayor Norm Coleman’s signature project of revitalizing downtown. He was also one of Coleman’s political contributors.27 After the Mayor decided to embark upon a Senate campaign in 2002, Leatherdale strongly backed him. Since 2001, Leatherdale and his wife Louise have contributed $14,600 to Coleman (and an additional $5,000 to the Minnesota Republican party during Coleman’s 2002 Senate campaign).28 The day Leatherdale’s appointment was announced, Coleman commented, “Doug Leatherdale is one of the most outstanding and accomplished community-minded leaders in the Twin Cities. I have tremendous confidence in Doug’s leadership and look forward to working with him to make the 2008 Convention a big hit for the Twin Cities.”29 It is logical to assume that Leatherdale’s long and continuing political relationship with Coleman is known by the Minnesota corporate executives he solicits. (Leatherdale has declined to respond to requests for an interview) Host Committee Fundraising Staffs: Reflections of Their Partisan Sponsors As one might expect, host committee staff members with responsibilities for managing and implementing fundraising plans possess political backgrounds similar to those of their main sponsors. Indeed, they have been closely associated with those sponsors and/or national party committees benefiting from their efforts. The Chief Financial Officer and Finance Director of the Denver host committee is Melissa Koenigsberg. She is a veteran Democratic operative. Previously she served as Finance Director for Maryland Governor Martin O’Malley’s successful 2006 race,


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National Finance Director for Ken Salazar’s successful Senate campaign in 2004, Southeast Regional Finance Director for John Edwards’ 2004 presidential campaign, and State Finance Director for Max Cleland’s Senate re-election campaign in Georgia. Her boss is Chief Executive Officer Mike Dino. A Senior Policy Advisor in the Denver office of Patton Boggs -- a premier Washington lobbying firm -- Dino was an adviser to Ritter’s 2006 Gubernatorial campaign and chaired Mayor Hickenlooper’s campaign in 2003.30 In Minneapolis-St. Paul, host committee fundraising has been headed by Executive Director Kara Ahern. She has extensive national party political and financial experience. A top aide to Republican National Committee Finance Co-Chairman Jack Oliver in 2004, she was also the Bush-Cheney campaign’s Deputy Director of Vice Presidential Operations and Political Director for Vice-President Dick Cheney. During 2006, Ahern served as national finance director for Republican New York Governor George Pataki’s Virginia-based PAC (a vehicle to prepare for a possible presidential run) and Chief Fundraiser for Republican Lt. Governor Kerry Healey’s Gubernatorial run in Massachusetts. In a May 31, 2007 memorandum for Governor Pawlenty, a top aide, P.T. Anderson, referred to Ahern as “the RNC’s person on the Host Committee.” Ahern’s boss, CEO Jeff Larsen, is founding Partner and Head of the State and National Party Division at FLS-Connect, a major telemarketing firm that provides voter identification and contact, fundraising and other campaign services to Republican national and state party committees and candidates. Since January 2003 the company has received $31.7 million from the RNC alone. FLS-Connect has worked for both Pawlenty and Coleman and Larsen is reportedly “among the inner circle of advisors” to Coleman.31 Fundraisers Offer Special Access to Federal and Other Political Decision-Makers and Influentials As Governor Pawlenty’s talking points suggested, partisan fundraisers offered their targets more than opportunities for civic promotion or “marketing” to convention delegates and other visitors. In fact, each host committee has published and distributed a “Corporate Sponsorship Packet” which lists a broad range of “benefits,” “marketing opportunities” or “promotion” and “visibility” or “recognition” for different levels of donations.32 As the excerpts in the appendix C show, both committees’ benefits have included invitations to private events with elected officials and party leaders, opportunities to sponsor state delegation receptions and welcoming parties (which are attended by key federal, state and local decision-makers and political influentials), access to VIP areas in the convention auditorium, and reservation of premier local venues for “corporate hospitality” (including receptions with political bigwigs). For instance, the Democrats are offering $250,000+ donors invitations to “private events” with Governor Ritter, Senator Salazar, Congresswoman DeGette, Mayor Hickenlooper, Farber and Wedgeworth. The Republicans initially offered $5 million+ donors “private dinner with Republican leadership and elected officials to kick off the convention,” “Golfing with Republican leadership during the convention,” and a “private reception” with Governor Pawlenty, Senator Coleman and the Mayors of Minneapolis, St. Paul and


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Bloomington. ($2.5 million+ donors didn’t get the dinner; $1 million+ ones sacrificed the golfing as well.) After a series of critical local and national press articles about these offers throughout the summer of 2007, the host committee struck them from the list of access benefits “so that the events listed were nonpartisan in nature to reflect the nature of the host committee,” explained Teresa McFarland, the host committee’s current Communications Director.33 However, other access benefits such as sponsoring state delegation parties, VIP areas, and premier hospitality venues remained. Moreover, it remains unclear what will happen to the many sponsors who were already promised private encounters with elected officials and party leaders. Also, the official Republican host committee package never included all of the access promised by non-host committee fundraisers. For example, Pawlenty’s talking points for the Minnesota CEO breakfast included this assurance, “We plan to have various events with Cabinet/VP and other elected officials to thank donors for their contributions.” Access does not only come from a published “package.” As Pawlenty commented during the brouhaha about the sponsor package, “There’s nothing wrong with people attending a dinner or social time together. People can get access to me anytime. It’s Minnesota after all.” A special feature in Denver will be the “Symposia of the Rockies” organized by Mayor Hickenlooper. This will consist of ten issue-oriented “conversations” among six to twelve participants to be co-hosted by $100,000 to $500,000 donors. “Your company,” says the host committee packet, “may host a roundtable ‘conversation’ on a topic to be determined. This is a rare opportunity to play a leadership role in a substantive discussion on timely issues affecting your industry with company executives, scholars, elected officials and members of the media.” Conclusion We have not yet seen the end of fundraising for the 2008 conventions. If the past is any guide, one or more presidential candidates will have to become involved in the final push for money. In 1996, a $5 million shortfall in the San Diego host committee’s budget caused a worried Robert Dole camp to tap its donor list. In June 2000 President Bill Clinton and his DNC Chair Terry McAuliffe raised $10 million for the Los Angeles host committee. And in the summer of 2004 John Kerry’s campaign fundraisers were active in putting the Boston host committee over the top.34 Denver’s host committee has missed its April 1st cash fundraising target of $28 million by $5 million.35 Reflecting one year ago on the daunting task of convention fundraising, Howard Dean told a Denver TV host, “We have to change the way we do conventions. The day of the $50-60 million convention is coming to a close.”36 As this report has shown, the reality of fundraising for the Denver and Minneapolis-St.Paul conventions is that the party holding the convention and its local host committee look very much alike. And with regard to spending, the party convention committee and the host committee simply meld into each other.


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One Minnesota political insider, who has worked with both parties, indicated to CFI it is just not realistic to expect host committees to be bipartisan in their operations. According to this informant, “If I’m a Republican Senator and there is a convention in my city, I want a successful convention not only for its civic value but partly for its political value. I have more at stake than a Democratic Senator who can advance no political goals.” Also, because of their political “affinity,” it is easier for a host committee dominated by the convention party to work with the party convention committee. Against reality, public policy perceives and treats the party and its convention committee and the host committee as two very different entities. But this has major consequences for U.S. taxpayers and campaign finance policy. According to the IRS, the national party convention committee is a 527 political organization, so contributions to it are not tax deductible. But the host committee is either a 501(c)(3) charity, which offers donors tax-deducibility for their contributions, or a 501(c)(6) business league, which enables donors to take tax deductions for these “business expenses.” As a result, tens of millions of dollars of convention donations are subsidized by U.S. taxpayers generally. According to the FEC, national party committees cannot solicit or spend any soft money, and state and local parties cannot spend soft money on federal elections which include the national party conventions. But these same parties’ Senators and Congressmen, Governors and Mayors, large donors, fundraisers and operatives -- even their presidential candidates -- can solicit soft money for their party’s convention. This is not what the Commission contemplated when it took an ill-informed decision that kept open and widened a more than $100 million loophole in the soft money ban. Steve Weissman, Associate Director for Policy, authored this report with the assistance of Margaret Sammon and Jennifer Sykes.


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ENDNOTES 1“Agreement : 2008 Democratic National Convention, January 12, 2007, obtained by CFI from City of Denver; “Site Agreement for the 2008 Republican National Convention from documents filed with the Federal Election Commission Audit Division on January 31, 2008. Budget for Republican National Convention obtained by CFI. 2 Federal Register, Vol.68, No. 153, August 8, 2003, pp. 47401-02. 3 “Denver Lawyer Gets Kidney from Son,” August 2, 2005, http://www.redorbit.com/news/health/195276/denver_lawyer_gets_kidney_from_son/. 4 George Merritt, “It’s Denver vs. NYC for Dems’ convention,” Denver Post, September 28, 2006. 5 See for example, Daniel C. Chacon and Stuart Steers, “Denver’s Success Begins with Query, Ends With Answers,” Rocky Mountain News, January 13, 2007. 6 Beth Potter, “Attorneys Played Key Role in Wooing Dems to Denver,” Denver Business Journal, March 2, 2007; Will Shanley, “Over $20 Million Pledged, $35 million Left to Raise,” Denver Post, January 12, 2007; Chuck Plunkett, “Host Committee Names Finance Head,” March 6, 2007. 7 Associated Press, “Koenigsberg to run Dem’s finances,” Denver Post, March 6, 2007. 8 George Merritt, “New Panel to Prepare for Dems’ Meet,” Denver Post, January 30, 2007. 9 Al Lewis, “Ritter Has Pro-Business Tongue-Tied,” Denver Post, [need date]; Stuart Steers, “Farber, Brownstein Break from Dems to Back Beauprez,” Rocky Mountain News, September 24, 2006. 10 Alan Gathright, “State’s Dems Tag-Team Dean,” Rocky Mountain News, December 16, 2006; Andy Vuong, “Big Bucks Pledged for DNC Bid,” Denver Post, November 29, 2006. 11 Documents from Gov. Ritter’s office and Chuck Plunkett, “Dems Race Cash Clock,” Denver Post, May 21, 2007. 12 Stuart Steers, “Convention Committee Short of Cash Goal,” Rocky Mountain News, May 31, 2007; Chuck Plunkett, “Denver Lagging on DNC Money,” Denver Post, June 1, 2007. 13 Agreement: 2008 Democratic National Convention (Host committee contract with Democratic National Convention Committee), Exhibit B, Letters of Commitment (Copy obtained from the City of Denver). 14 Jo Becker and Christopher Drew, “Pragmatic Politics, Forged on the South Side,” New York Times, May 11,2008. 15 Fredreka Schouten and Patrick O’Driscoll, “Host cities Work to Fund ’08 Conventions,” USA Today, July 27, 2007. 16 Stuart Steers and Kevin Vaughn, “Oh, Say Can You DNC?” Rocky Mountain News, August 25, 2007. 17 Chuck Plunkett and Andy Vuong, “Convention Dials Quest Cliffhanger,” Denver Post, December 2, 2007. 18 From year-end report to IRS, filed February 1, 2008. 19 “Denver Host Panel Meets Fund Target,” Denver Business Journal, December 17, 2007. 20 Dave Olinger, “Mayor: Funding for DNC on Target,” Denver Post, December 14, 2007. 21 CFI phone interview with Erin Dady, May 29, 2008 22 CFI phone interview with Tina Smith, May 30, 2008. 23 Randy Furst, “Governor and Mayors Conduct Pep Talk About the Convention,” Minneapolis Star Tribune, June 16, 2007. 24 Tom Scheck, “Pawlenty on the Road Often in 2008,” Minnesota Public Radio, March 14, 2008. 25 On Leatherdale’s mission, see Minnesota Public Radio, “Insurance Executive Tapped to Lead Convention Fundraising Effort,” August 16, 2007. 26 CFI Phone interview with Tina Smith, May 30, 2008. 27 For background on the relationship, see Tim Nelson, “Mayor Made Mark on St. Paul; Most Give Coleman Credit for Successes,” Saint Paul Pioneer Press, December 30, 2001; William Wilcoxen, “Norm Coleman’s Legacy,” Minnesota Public Radio, December 24, 2001; Ronald D. Clark, “A Cloudy Forecast at Best for Future of Downtown Partnership Post-Coleman,” Saint Paul Pioneer Press, March 11, 2001; Virginia Rybin, “Coleman’s Star on the Rise; But the Mayor is Still Mum About His Gubernatorial Goals,”


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Saint Paul Pioneer Press, April 20, 1997; “Jim McCartney and Virgiinia Rybin, “Jets Experience Gives St. Paul Leaders Major League Visions; But Others Caution It Won’t Be So Easy,” Saint Paul Pioneer Press, December 10, 1995; and Virginia Rybin, “Ambitious for his City, for Himself; St. Paul Mayor Norm Coleman is Driving in High Gear at Mid-Term,” Saint Paul Pioneer Press, February 11, 1996. 28 According to the FEC’s donor lookup at www.fec.org. 29 Minneapolis- Saint Paul 2008 Host Committee, “Douglas Leatherdale to Hed the Minneapolis-Saint Paul 2008 Host Committee,” Press Release, August 16, 2007. 30 See the Denver host committee website at www.denverconvention2008.com 31 See the Minneapolis-Saint Paul website at www.msp2008.com. On Jeff Larsen, see also www.flsconnect.com and Tim Nelson, “Republican National Convention/GOP Mover Makes His Biggest Move Yet,” Saint-Paul Pioneer Press, August 4, 2007. The RNC’s expenditures on Larsen’s firm were calculated from searches available at www.opensecrets.org. 32 “Denver 2008 Corporate Sponsorship Packet,” March 2008, courtesy of Denver host committee; Corporate Sponsorship materials from before and after late summer 2007, courtesy of Minneapolis-St. Paul host committee. 33 E-mail communication from Teresa McFarland, May 23, 2008. 34 See Terry McAuliffe with Steve Ketterman, What a Party (New York: St. Martin’s Press, 2007), pp. 223-25, Comments of the Campaign Finance Institute on Notice 2003-8: Public Financing of Presidential Candidates and Nominating Conventions, at http://www.fec.gov/pdf/nprm/public_financing/camp_finance_inst.pdf and Campaign Finance Institute, The $100 million Exemption: Soft Money and the 2004 National Party Conventions, July 2004 at www.cfinst.org. 35 DeeDee Correll, “Denver Short on Funds for Democratic National Convention,” Los Angeles Times, March 21, 2008. 36 Chuck Plunkett, “Values Key in Bridge-Building Visit,” Denver Post, May 11, 2007.

Appendices

Appendix A – Letter from Colorado Governor Bill Ritter Appendix B – Talking Points for Minnesota Governor Tim Pawlenty Appendix C – Corporate Sponsorship Packet for Denver and Minneapolis Saint Paul Host Committees Appendix D – Sources of Funding for Major Party Presidential Nominating

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Ialking Poirrts for (iovernor pawlcntv(Junc 6,2007)

' I would like to thank you all tor joirri'g us this nrorning.. lntrochlctions of Maria (lino and CyncTi Leshcr.

Talk about the hugc opporrunity thc convention is for thc Twin Citier -

' c,onvention Dates: Gop conventío¡r is septembcr I-4, 200gI Last drue Minneapolis had a Reprblican conventiorr was llt92' An opportunity for us to shinc irl the world spotlight for 4 days.' A succçssfi.rl convention will leatl to nrore rnrr.ior õvents hostéd within the'rwi. Cities (ie.

Chícago bid on olyrnpics as a result of their ãtritity to hosr convention)' $150-$250 million rtollar economic irnpuct to the ¿uca.r 45"000 *ît?li{itóil':_'#:tttbers ormeclia wirr be here--liuper Bowr has 3,000)

2,000 Alternates. 15,000 members of fhe medi¿' 10,000 volun[eçrsr 15,000farnily/guests

Govcrnment and electcd o fhcial.c ftoln *;"nä itË.ðä;i;.,

we've clonc a lot, ¡iince the ¿nnouncemçnt of thc (jonvgntion:

' Brouglrt on Cyndi Lesher-thc President of NSP, a division of XceI Energy to be prosidentof llost Comrnittce--will help promote the Convention r'round the cities.

' Hircd Kara Ahem from the Vicc Presiclc¡rt's oftîce to he\r ruanage the fundraisingoperation and day to cfay activities.

' Hirccl very rtspected natiortal arul local fundraisçrs (3 Dog ConsLrlting arnd Rick Nclson)' Have a tçatn to provide benefits to donors who contributè-to makc suic they get valuc fromtheir donations,

' We plan t(l have various events with CabineVVP/and othcr r¡lþcted officials t' thankdo¡rors for their contributions.. We'vç recently confracted f'or office space in St. paul.

' We'vç put together pagkages f'or various clouur lçvels on what tlrr;y can sxpect to get forthcir corrtribution....this has nevcr heeï donrl this carly.

' lVe lrave a bleat u/orking relationship with_thc Republican National Conu'ittec. 'l¡cy alsoare very far along in the planning stages of the Coivention ancl will be moving hcre in thsnext fcw wecks.

will cxperisnce our Twin Cities

ØÞt9èt'aøe¿ ¿ï9S596¿Ø¿ï : 01 :uro rl f[ | l,Ø gØØ¿-le-udu

What we necd to raise ...

' 'we have a budget of about $s7 ¡nillion (whictr does r't inclucle the sccurity nrorey, w'ichwe hope to get out of a fedcraI grarrt)- ù" ,r*p*.i io ,aise zi hnrn rvñ corp'ratccommurrity.

. The Ilost Llornrrittee js a 50ic3 organizalir)n.so çoq)oratç contrilrutions ârr_ tax dscluctible.'I'he ask...

' I am couttting all of you hore today to step up and be financially supportive .lthe;:ii"JJrt, J-î:,'llffïll".tffi'

po"t'*'' in-ä"ì', orvou *'á i, ¡îi"v hnpe tr,ai you ,n,nr

' we nced to show thc rest of thc counhy our cities' spirit ancl rno'e irnportantlycommitrnent to a,süsçËssful cvent.

I r)eÐronstrate to ühe world ünt the Yïri*p-"Jis and saint paul are capahlc of hosting anevent of ttús magnil.urle. Success of this ,ill f*Jì., n urry rrore rnajor evcrrts and theregion will greatly br,rlcfit econornically,

' wc'rç looking for each Fortune 500 companyìreatlquartc¡ctl irr Minnesota r,o give at least$l million dollars; and some of y.u will Lc,,bl* tn lie I'ar more garrerous than that.

' åiJffî;[i,åää:-

in Mi*es'ra trrar rnavnor bc a Fortune 500 company, wË,re r'oking

' I will be contacting ancl meeting with most ofyou individually to ask firr your (comparúes)sup¡rorl..

' If you have any qucstions you c¡rn call cyrrdi or K.lra at thc Flost cornmittee.

ØÞt9ê,=eøe¿ ¿T9g5g6eØ¿T:01 :uroJJ Þf =1.Ø gØØ¿-I¿-UdU

Denver 2008 ConventionHost Committee

Corporate Sponsorship Packet

Denver 2008 Convention Host Committee140l 17'h Street. suite 950

Denver, CO 80202(303) s34-6200

www. denverconvention200 8.com

DENVERTtlE MILE HIGTI CITT

r0t8

,\råttt'irl:r,1,,' .

Page 3

Donation Levels

Benefits and Recognition:. VIP access and credentials to the Pepsi Center for convention sessions, including access to

hospitality suites at Pepsi Center and credentialed general tickets for convention sessions. First consideration to reserve hotel rooms affiliated with convention activities. First consideration to reserve premier Denver venue space for corporate hospitality events and

receptions during convention week. Invitations to private events with Colorado Governor Bill Ritter, Denver Mayor John

Hickenlooper, U.S. Senator Ken Salazar, Congresswoman Diana DeGette, Honorable ElbraWedgeworth and Steven Farber, the members of the Denver 2008 Convention ExecutiveCommittee

. Invitations to all Host Committee-sponsored events including the Media Welcoming Party,Volunteer Appreciation Party, Nightly Reception and other Host Committee-sponsoredconvention week events

. Prominent placement on the official Host Committee website, which serves as the centralinformation site and vendor directory for all 35,000 visitors to Denver

. Recognition at all Host Committee events during the Convention including the Media WelcomingParty, Volunteer Appreciation Party, Nightly Reception and other Host Committee-sponsoredconvention week events

. Recognition in all Host Committee publications (e.g., visitors guide, invitations, etc.)

. Recognition in Host Committee press kit

. Right to create a composite logo with the Denver 2008logo and your corporate logo (Denver

2008 must approve logo). Right to use official designation of "Sponsor of the Denver 2008 Host Committee". Right to develop at sponsor expense print, radio, television and electronic advertisements and

promotions discussing sponsorship of the Denver 2008 Host Committee

Visibility Opportunities: Choose three (3) of the following. All items are subject to the approval ofthe Host Committee. Sponsor pays cost of banners, products placed in bags, and hotel key cards.

. Place banners in prominent locations in Denver

. Place one (1) product with logo in delegate andlor media gift bags

. Sponsor ten (10) information booths at locations TBD

. Place corporate logo on hotel key cards forup to five (5) hotels.

Marketing Opportunities: As a Presidential Sponsor, you have the opportunity to choose three (3) ofthe following marketing benefits. Please note, these are limited opportunities subject to availability at

time of commitment and additional costs may apply.. Sponsor of the Media Party. Sponsor of the Denver 2008 Convention Host Committee Official Volunteer Appreciation Party. Sponsor a State Delegation Welcoming Party. Delegate or Media Gift Bag Sponsor

Details on these marketing and visibility opportunities can be found on page 8.

* Hotel selection will be decided bv the Host Committee in consultation with the sponsor.A

iKDENVERä###

Minneapolis Saint Paul 2008 Host Committee

Minneapolis Saint Paul 2008 Host Committee, Inc. is a 501(c) (3) non-profit organization.

Contributions are tax deductible to the fullest extent of the law. EIN #20-8397116

INITIAL VERSION

MSP 2008 Host Cornmittee - FContribution: $

BENEFITS./ VIP access/credentials to Xcel Center for all Convention sessions

o Luxury Levei Seats for each Convention sessiono Credentialed GeneralTickets for each Convention sessiono Additional access to VIP area in Xcel Center (access to Host

Committee suite and Hospitality suite at the Xcel Center),/ Preferred bookirrgs in official Host Convention Hotel,/ Private dinner with Republican leadership and elected officials to kick-off

the convention¿ Golfing with Republican leadership during the convention¿ Private reception with Governor Pawlenty, Senator Coleman, and the

Mayors of Minneapolis, $t. Paul and Bloomington during the "Get to KnowMinneapolis/St. Paul" days

/ Opportunity to participate in one of the "Get to Know MinneapolislSt. Paul"days. During these days, we will take a behind the scenes tour of the XcelCenter, explore event space, and tour local hotels and restauranls.

,/ Special invitations and access to all MSP 2008 Host Committee Leadershipevents before and during Convention(e.9. Media Party & Welcoming Party)

'/ Access to premier St. PaullMinneapolis venues for corporate hospitality,/ Monthly Host Committee Leadership Conference Calls to discuss

Convention planning./ Opportunity to be the exclusive Official Provider to MSP 2008 Host

Committee,t Listing as a MSP 2008 sponsor in all official guides (e,9. delegate & media

guides)./ Recognition on the MSP 2008 Host Committee website,/ Additional promotional opportunities available to benefactors (see below)

GIFTS./ Official MSP 2008 Commemorative Gifts including Commemorative Golf

shirts and limited edition lapel pins

PROMOTION,/ Opportunity to sponsor City Wide banners. billboards and bus signage\/ Opportunity to sponsor/host events during Convention (e.9. state delegation

receptions & Host Committee Events)r' Opportunity for product promotion in delegate gift bag,/ Special advertising opporlunities in MSP 2008 publications and media'/ Opportunity to sponsor volunteer uniforms'/ Opportunity to sponsor water bottles,/ Customized VIP Tours of Twin Cities Landmarks,/ VIP Access to MSP200B HC Media Partv

ÐRAFT - lnformation above i* sulriect to change

CURRENT VERSION

BENEFITS

o Luxury Level Seats for each Gonvention sessiono Credentialed General Tickets for each Gonvention sessiono Additional access to VIP area in the Xcel Energy Genter (access to Host

Committee suite and Hospitality suite at the Xcel Energy Center)Preferred bookings in official Gonvention HotelsOpportunity to participate in one of the "Get to Know Minneapolis Saint Paul"days. During these daysn we will take a behind the scenes tour of the XcelEnergy Genter, explore event space, and tour local hotels and restaurants.Special invitations and access to all MSP 2008 Host Committee Leadershipevents before and during Gonvention (e.9. Media Party & Welcoming Party)Access to premier Saint Paul/Minneapolis venues for corporate hospitalityMonthly Host Committee Leadership Conference Galls to discuss ConventionplanningOpportunity to be the exclusive Official Provider to MSP 2008 Host CommitteeListing as a MSP 2008 sponsor in all official guides (e.9. delegate & mediaguides)

GIFTS

and limited edition lapel pins

PROMOTION

receptions & Host Committee events)

*"DRAFT - Information above is subject to change

Year

Private Contributions (through host

committees and 'municipal funds')

Local and State Gov't Spending (direct & through host committees)

Federal Grants to Party

Convention Committees

Total Convention

Contributions

Private Contributions as

a % of Total

Private Contributions as a % of Total - D & R

combined

1980 R Detroit1 0.7 2.0 * 4.4 7.1 9.9% 6.7%*D NYC1 0.4 4.5 * 4.4 9.3 4.3%

1984 R Dallas1 4.3 1.3 8.1 13.7 31.4% 21.1%D San Francisco1 2.4 7.6 8.1 18.1 13.3%

1988 R New Orleans2 1.8 6.7 9.2 17.7 10.2% 7.9%D Atlanta3 1.7 15.8 9.2 26.7 6.4%

1992 R Houston 2.2 7.3 11 20.5 10.7% 14.3%D NYC4 6.2 21.1 11 38.3 16.2%

1996 R San Diego5 18 12.8 12.4 43.2 41.7% 42.8%D Chicago6 20 13.1 12.4 45.5 44.0%

2000 R Philadelphia 20.1 41.8 13.5 75.4 26.7% 35.0%D Los Angeles7 36.1 35.8 13.5 85.4 42.3%

2004 R NYC8 85.7 7.9 14.9 108.5 76.2% 77.4% *D Boston8 56.9 0 14.9 71.8 79.2%

Sources: Except where otherwise noted, the contributions data above is derived from the 60-day post-convention reports (as amended) filed by the host committees with the FEC and excludes any refund or loan receipts. Federal grant information is based on FEC data. Other sources are indicated as footnotes.

Sources of Funding for Major Party Presidential Nominating Conventions, 1980-2004 (in millions of dollars)

Convention

* These figures or percentages exclude first time federal grants of $50 million each for homeland assistance security to the city governments of New York and Boston in 2004, and Federal Law Enforcement Assistance grants of $3.2 and $3.5 million to the Detroit and New York City governments in 1980.

1 All contributions figures are from Herbert E. Alexander, Financing the 1980 Election (Lexington, MA: DC Heath, 1983) 271-90; and Herbert E. Alexander and Brian A. Haggerty, Financing the 1984 Election (Lexington, MA: DC Heath, 1987) 296-308.2 Local and state spending is estimated based on New Orleans’ total financial commitment for the convention (which was reported to be met) minus any confirmed private receipts. See Associated Press, “Louisiana OKs State Funds for Convention,” Houston Chronicle , 4 Aug. 1988: A14; Phil Gailey, “G.O.P. Panel Picks New Orleans as the Site for the 1988 Convention,” New York Times , 20 Jan. 1987: 1A; Colin Flaherty and Jacqueline Landes, “The Conventional Wisdom,” San Diego Online , 2 May 2003 <http://www.sandiego-online.com/issues/gop/gotgop7.stm>.3 Contributions figures were calculated based on the 1987 year-end report, the 60-day post-convention report, and subsequent reports through 1995 was to incorporate substantial hotel tax revenue received subsequent to the filing of the 60-day post-convention report.4 Local and state spending is from Herbert E. Alexander and Anthony Corrado, Financing the 1992 Election (Armonk, NY: ME Sharpe, 1995) 98-9.5 Local and state spending is from Maria L. la Ganga and Tony Perry, “The 2000 Democratic National Convention,” Los Angeles Times , 2 Mar. 2000, which cites a detailed letter filed by the City of San Diego with the FEC. After substantial investigation, CFI could not find such a letter in FEC public records, but believes it was probably filed and used the Los Angeles Times figure. Calculations based upon the San Diego Host Committee’s 60-day post-convention report, however, revealed spending of only $6.6 million.

7 FEC, Revised Post-Convention Statement by the City of Los Angeles for the 2000 Democratic National Convention (Jan. 11, 2001); Phone interview, Jody Yoxsimer, Chief Administrative Analyst for City Administrator’s office, City of Los Angeles, May 1, 2003.

6 Local and state spending is from letter from Walter Knorr, Chief Financial Officer of the City of Chicago to Federal Election Commission, October 15, 1996.

8 Letter from Park Page, Office of Management and Budget, The City of New York, to Federal Election Commission, October 15, 2004; Oral report of City of Boston official reported by Bob Biersack of FEC.