Benefactor questions DNC need for credit
LaConte covered bulk of convention requirement
When Milwaukee needed a benefactor to underwrite the bulk of a $10 million line of credit to secure the 2020 Democratic National Convention, Cynthia LaConte stepped forward.
But now that the event has been significantly scaled back in Milwaukee, LaConte suggested Thursday that organizers don’t need to tap into the line of credit she provided.
LaConte, CEO of The Dohmen Co., put up $7.5 million. The other $2.5 million was put up by two national unions.
“Given the muchreduced scale of the event, and the lower transportation, hospitality and security costs, it’s unclear to me why there would be any need for the DNC to draw from our line of credit,” LaConte told the Journal Sentinel in an email exchange. “We remain confident in the DNC’s ability to secure the necessary funding for this now largely virtual event.”
The host committee has raised around $30 million, with fundraising dramatically tailing off during the last few months because of the coronavirus pandemic.
It’s believed that the committee has to raise around $15 million more to stage the event. In a convention, there’s
always a push for money in the final weeks, with the campaign of the party’s nominee and top donors usually plugging the gap. That compares to a $70 million fund-raising target for the originally planned full-scale convention.
Despite the reduced footprint, the convention faces added health and safety costs because of the pandemic.
LaConte said she understood the need for a revised convention.
“Dohmen originally agreed to help secure Milwaukee as the host city for the Convention because we deeply believed in the positive social and economic impact it would bring to our city,” she said. “While I’m disappointed Milwaukee will miss its opportunity to host a full scale convention, we certainly understand the decision given the gravity of the pandemic.”
Others that helped fund the DNC indicated support for the decision to scale back the event.
At least a dozen corporations quietly donated through the community support foundation of the Metropolitan
Milwaukee Association of Commerce. That money represented “a significant part of what was raised locally,” MMAC President Tim Sheehy said.
“I know they (donors) are going to be clearly disappointed that their investment will not see the return in Milwaukee that they were hoping for,” Sheehy said, estimating the economic impact would be around 15% of what a full convention would bring to the city.
“I don’t blame the DNC for the decision,” Sheehy said. “The economic impact is going to be a shell of what we expected. The exposure that Milwaukee is going to get is going to be a shell of what we expected.”
“We are continuing to talk to leaders of the Host Committee to learn more about events being planned,” said a statement from Northwestern Mutual Life Insurance Co.
Advocate Aurora Health said in a statement: “As always, our focus is on the health and safety of the people we serve, and we’re supportive of the decision to protect the well-being of our communities with the transition of much of the event to virtual platforms.”