In North Carolina, economic consequences for business and political repercussions for Trump


At a campaign rally in Charlotte, North Carolina, early last spring, President Donald Trump eagerly anticipated his planned renaming convention in the city where he promised to be surrounded by “thousands of American workers who love our country, they appreciate our values ​​respect our laws. ” and it always puts America first. “

That big March 2 meeting in North Carolina was the last one to campaign before the coronavirus pandemic limited such events. It was also the last time the president traveled to the city from which his party withdrew the convention out of frustrations with state health restrictions, though the president will be in the state Monday to visit a biotech company in Raleigh hired to help with Mass production of a potential vaccine.

After years of planning and fundraising for the Charlotte event, the convention moved to Jacksonville, Florida, when North Carolina Democratic Governor Roy Cooper was unable to guarantee the President a multi-day event with no social distance or facial masks. After packaging the change of location as a partisan coup against the state’s refusal to allow a full, in-person event, Trump altered his explanation to that of a public safety consideration last week by canceling the portions in Florida, where the La Pandemic has increased in recent weeks.

But in Charlotte, the wave effects continue. The call, at the president’s urging, to uproot rigorous planning and financial investments in the city has left companies in crisis and has raised concern among party leaders in a state that is crucial to Trump’s re-election.

A new NBC News / Marist poll released Monday shows Biden with a 7-point lead in the state that Trump kept closely in 2016. The poll showed the president’s approval rating at 41 percent, an 11-point drop in that measure since March.

And six out of ten North Carolinians in the poll said they agreed with the statement that “the state was right to prioritize its health protocols for large meetings over the president’s objections.”

Political disputes over the convention have left North Carolina Republican Party leaders worried about November, with Biden hoping to reclaim a state that Democrats last won when he was on the ballot in 2008, but lost in 2012. “If Joe Biden wins in North Carolina, Trump gets mad kicked all over the country,” a Republican state official told NBC News.

The decision to scrap most of the convention in person is also costing Republican Party donors millions of dollars in addition to the economic strain felt by companies that were holding up amid the pandemic over the kind of momentum of a convention. National politics, and all the delegates, the media and the agents can lead to a city.

With $ 38 million raised by the host committee for the convention’s original location in Charlotte, most has been spent, Republican officials told NBC News. The Jacksonville host committee ended up raising an additional $ 6 million through a separate host committee. Republican Party officials said much of that money remains, but they are unsure how much of the money will be reimbursed to donors.

“There was no chance they could hold a convention in Charlotte,” Dallas Woodhouse, the former Executive Director of the North Carolina Republican Party from 2015 to 2019, told NBC News. “The bottom line is that they wanted a chance to have a convention, and it didn’t work, but that doesn’t make the wrong decisions to make the best decision. “

The fight has left Charlotte’s host committee with “tens of millions” in contractual responsibilities, according to the group’s CEO John Lassiter.

The City of Charlotte said in a statement in June that it plans to “hold the RNC accountable for meeting and enforcing all of its outstanding obligations to the parties.” City attorney Patrick Baker said the city itself spent about $ 14 million on the convention, but expects to be reimbursed through a federal security grant. Unresolved questions remain for those involved in planning for the Charlotte convention, including attorneys from all sides trying to figure out how to recover the money spent and looking for solutions to canceled contracts.

With the millions of dollars contributed by the host committee to jump-start the convention in Charlotte, the people and businesses that contributed are now “very, very frustrated,” said Tariq Bokhari, a Republican member of the Charlotte City Council, to NBC News.

Business owners and CEOs “hope that the President of the United States, the Governor of a state like North Carolina, the head of an organization like the RNC, the host committee; wait for these people no matter how difficult it is. when the stakes are high to operate professionally in good faith and find a way to make it work, ”Bokhari said.

The convention festivities in Charlotte will now be limited to one day, with a smaller sample of delegates.

“We will start in North Carolina by Monday, as has always been planned,” Trump said at his press conference on Thursday. “We never took that off.”

“There are probably going to be a couple of hundred delegates and people working on the apparatus at the top,” Bokhari said. “I don’t think it’s something that regardless of how the details unfold over the next month, the city of Charlotte realizes that it’s happening.”

“We had businesses that counted on that as the shot they need after an unprecedented financial hardship,” Larkin Egleston, another member of the Charlotte City Council who is a Democrat, told NBC News. “I think we would have been very nearsighted if we had taken a public health risk for just a quick dollar or two.”

For a convention that would allegedly generate more than $ 150 million for the city, the tension between the RNC and the community continues to grow, with a major impact on small businesses already suffering from a crippling pandemic.

Vinay Patel, president of SREE Hotels, told NBC News that her company had 12 hotels in the Charlotte region that had more than $ 2.5 million in reservations with RNC for the week of the convention. He noted that it could have been an additional half a million dollars in food and beverage revenue.

“It was a great success, especially at the time it came,” said Patel. “We were in the middle of this crisis and this convention was a positive side.”

Charlotte, as a city, is home to more than 10,000 businesses of 25 or fewer people, the city of Charlotte told NBC News, many of whom expected a substantial economic amplification of the convention.

“It was the light at the end of the tunnel for them,” Anthony Kearey told NBC News about the impact of the convention, which owns some bars and restaurants in Charlotte. “Many places announced that they would definitely close after the announcement that the RNC would be moving.”

Bob Durkin, who manages bars and restaurants with the Bar Management Group in Charlotte, echoed the concerns. “Frankly, we don’t know if he will be able or not, so it was devastating financially, it was devastating the time we had spent, the fact that COVID was the reason he moved, but that could spell disaster for some of our businesses. “, said.

“We are now in limbo waiting for the next step,” Durkin said of his own businesses, “but I can guarantee that some of them will not open, we are not sure which ones, but it will have been the last straw and will definitely make some of our businesses they run out of business forever. “

And now, some Charlotte business owners see the Jacksonville aftermath as yet another success.

“That’s like putting salt on the wound,” Durkin said of the move to Jacksonville, initially to host a socially estranged convention that is now also being canceled in person. “It’s a shame … the reality is that no one will be able to benefit.”