It's a controversial and growing way for cash-strapped cities to attract private developers: create public-private convention centers/hotels and bet that revenue for city
coffers will follow. (Cities are able to do this because they're offered lower interest rates not available to private developers.) Of course, existing hotels in the area argue
that any tax-exempt competitors pose a severe threat and would ultimately cost them business and force them to cut jobs. The ensuing debates -- which have popped up in several
cities in the last few years, including Denver, Houston, Sacramento, Calif. and Washington, D.C. -- take on all the characteristics of a political campaign, where PR can play a
crucial and often decisive role.
A dramatic example of the debate continues to unfold in Fort Worth, Texas. The story dates back to 2002 when, following years of debate, the city finally proposed a $160
million downtown convention center hotel. The facility, which would be operated by Hilton Hotel Corp., would be funded though the sale of so-called "certificates of obligation," a
type of financing growing in popularity among cities unable to lure private developers. Similar to bonds, the certificates do not require voter approval.
At the time of the proposal, Fort Worth officials said revenue from the hotel would be used to repay the certificates without tapping into city funds. Fort Worth Mayor Ken Barr
expressed his support for the plan, as did seven out of nine members of the City Council. Land was purchased, the city entered into a preliminary agreement with Hilton and things
looked ready to go.
But hotel executives in the area were up in arms about in the plan. Remington Hotel Corp., which owns Radisson Plaza Hotel, one of the largest hotels in downtown Fort Worth
(and a half block away from the proposed convention center), along with a consortium of other hotels in the area, including the Blackstone Courtyard by Marriott and Renaissance
Worthington, decided the fight back. They hired Dallas law firm Bickel & Brewer to craft a public affairs campaign opposing the plan.
While Bickel & Brewer pursued a legal challenge to the plan, the law firm also created a multipronged grassroots campaign dubbed 'Let us Vote.' The law firm recruited a
former chairman of the local Republican Party, Steve Hollern, to lead the petition drive.
In less than two months, the 'Let us Vote' campaign - fueled by a gaggle of volunteers who went door-to-door to collect signatures, often followed by local media crews --
gathered more than 16,000 signatures to force a public vote on the convention/hotel project. (The City Charter requires a public vote if a petition generates 5% of registered
voters in Fort Worth, or about 12,000 people.)
The original plan was ultimately shelved in late December 2002, but the city earlier this year reopened the possibility of developing another privately owned hotel. Whatever
shakes out, one thing is clear: if a similar proposal includes funding via certificates of obligation, the proposal must go to a city ballot, which Remington et al. consider a
victory.
"This was the quintessential public affairs campaign that included every element of PR: grass roots, creating alliances, media relations, establishing a Web site, identifying
local spokespeople [to get our message out], and running ads," said Travis Carter, president of Dallas-based Carter Public Relations, who added that he arranged about 100 media
interviews during the campaign. Throughout the campaign Carter was the in-house PR rep for Bickel & Brewer. Carter, who was featured in PR NEWS' '15 to Watch' issue in 2003
(See PR NEWS, May 26, 2003), started his own PR agency in the summer of 2003 but continues to represent Bickel & Brewer as outside PR counsel.
Carter stressed that one of the main reasons why the 'Let us Vote' campaign was so successful because he was able to work hand-in-glove with his legal counterpart which is
considered the exception to the rule (see sidebar on p. 4). "Our argument was that the city should not be getting into the hotel business and citizens agreed," Carter said. "We
had a consistent message that if this was such a good idea why wouldn't a private developer want to jump on it?" Bill Brewer, a co-founding partner at Bickel & Brewer, added:
"As a result of this campaign, the city knows that publicly funding a new hotel would be political suicide."
The budget for the campaign, around $200,000, was a "pittance" compared with what the hotels would stand to lose in revenue if the original plan went through, said Brewer. Job
One for the campaign was to identify its base, in this case fiscal conservatives, and then seek out influential leaders in the community -- such as said Hollern - who could
deliver the campaign's message "in a credible and meaningful way," Brewer said." The campaign also worked closely with Fort Worth Star-Telegram business columnist Mitchell
Schnurman, who was instrumental in broadening opposition against publicly financing a downtown hotel (even though the paper's editorial board supported the plan).
In addition to seeking out sympathetic voices to spread its message, the 'Let us Vote' campaign established an issue-related Web site, a 1-800 number and coordinated ad buys
for print and billboards. The campaign also commissioned a study -- that got a lot of play in the press -- showing that the average hotel occupancy rate in downtown Fort Worth had
not climbed above 50% since 1996 and had dropped even further since the September 11 attacks. Another aspect of the campaign was building alliances with more than 25 neighborhood
associations, including the Greater Fort Worth Association of Realtors and Texas Citizens for a Sound Economy. "All that media focused attention on the campaign," Brewer said,
"and as the momentum grew it became something of a cause célebre" in the city.
The campaign was able to capitalize on the momentum by creating "Ride-a-Longs," in which reporters could accompany the foot soldiers in their efforts to gather signatures
needed to force a vote. "We found that allowing reporters to [accompany the volunteers] was the most effective way to get people to answer the door," Brewer said. Throughout the
campaign local network affiliates followed the story closely, with enhanced coverage from the local CBS affiliate.
Several "polling" booths were also set up in downtown Fort Worth, including shopping centers local restaurants and sporting events, to collect signatures. The booths certainly
piqued the public's curiosity. "People were asking, 'What is that' and "'What's that all about?'" Brewer said.
Contacts: Bill Brewer, 214.653.4810, [email protected]; Travis Carter, 214.360.7815, [email protected]