Charlotte DNC hosts owe lender at least $7.9 million after falling short in convention fundraising

Charlotte Business Journal ^ | October 17, 2012 | Susan Stabley

[John W]

Duke Energy Corp. is on the hook for $7.9 million after Charlotte fundraisers were unable to raise enough money for September’s Democratic National Convention.

The Charlotte in 2012 Host Committee fell millions short of its $36.65 million fundraising goal for the DNC, despite numerous statements that the efforts were “right on track."

According to its filing Wednesday with the Federal Elections Commission, the Charlotte in 2012 Host Committee raised $24.14 million and borrowed $10.9 million. Taking into account only contributions received to defray convention expenses, the Charlotte in 2012 host committee missed its fundraising target by $12.51 million.

Instead, the host committee was forced to dip into a $10 million credit line with Fifth Third Bank that was backed by a guarantee from Duke Energy.

Details on the fundraising shortfalls were filed today with the Federal Election Commission. That includes a report for its New American City fund, which generated $20.06 million for the Democratic National Convention by sidestepping strict rules on collecting contributions. Supplemental forms were also filed that lists 20 companies that provided goods and services during September’s Democratic National Convention.

Duke Energy released a statement today that it will work with convention organizers to make sure the debt is repaid by the credit line agreement’s due date of Feb. 28.

“Duke Energy has not and will not use any utility customer funds to pay for any aspects of the convention, or events associated with the convention,” the Charlotte-based electricity giant said Wednesday.

However, that statement doesn’t rule out Duke covering the debt using funds from other sources. Consider: Utility-customer funds weren’t used for the DNC, as the company stated.

But the company (NYSE:DUKE) still supported the convention and its organizers with $5.7 million in cash and in-kind (non-cash) contributions “to support the host committee’s programs to promote economic growth,” Duke says.

That included temporary uptown office space and parking, plus $4 million in cash.

Duke was an early supporter of Charlotte’s efforts to win the convention. In 2010, the company said it would guarantee the $10 million line of credit to help the city secure hosting duties for the 2012 Democratic National Convention.

“The purpose of the line of credit is to help the local host committee manage its cash flow during the convention fundraising process,” Duke said today.

The Democratic National Convention Committee — separate from the local host committee — filed its third-quarter FEC report Monday detailing nearly $8 million spent during the three months surrounding DNC week in Charlotte. The DNC Committee listed $7.99 million in expenditures from June 1 to Sept. 30 in a 547-page report that included salaries, security, hospitality and transportation.

Susan Stabley covers growth, the environment and residential real estate for the Charlotte Business Jou

[Soul of the South]

Here’s a link to an uncomplimentary Business Week article on the Duke CEO Jim Rogers:

http://www.businessweek.com/articles/2012-09-20/jim-rogers-the-ceo-who-wouldnt-leave#p1

[ex91B10]

Thanks for the background.

The Kenyan must go.

[Tolkien]

Why don't they get Nobama to print more money or take it from the taxpayers by force.

That is what big brother does, right?