If this report from the National Journal (via Markos at Daily Kos) is correct, Denver is in dire danger of losing its bid to host the 2008 National Democratic Convention.

According to party sources and other Democrats who have consulted with members of the party’s selection committee, NYC and Minneapolis-St. Paul are right outside the winners’ circle. NYC is said to have an edge — at least for now.

The site selection committee had high hopes for Denver, located in a blinking-blue Mountain West state with a growing Hispanic population. But one Democrat briefed on the city’s presentation and bid called it “disastrous.” Others confirmed that the general impression among site selection members of Denver was not positive. The city also lacks a union hotel, and even though the city’s labor leaders voted to table its outrage, it remains an obstacle.

The party will choose its site by the end of the year.

The convention would be a huge boon for Colorado. A few weeks ago, Denver’s labor unions dropped it’s objections to holding the convention here.

Organized labor has suspended its opposition to Denver’s bid to host the 2008 Democratic National Convention, possibly elevating the city’s chances against Minneapolis-St. Paul and New York. In a unanimous vote this week, the Denver Area Labor Federation “laid over” a resolution adopted in April opposing the bid, said Leslie Moody, the federation’s president.

Did the action come too late? Are we really out of the running?

Markos is recommending Denver:

The networks will scale back coverage of the convention whether it’s in Minneapolis, Denver, or NYC. The parties have killed conventions by scripting them to death. There is no drama, no compelling storylines. So the networks take a pass. I can’t blame them.

So go somewhere where the local coverage will actually, you know, help. Colorado is a purple state moving our direction. Minneapolis is a blue state threatening to go purple. We get nothing out of having it in indigo-Blue New York.

Holding the convention in Colorado really would give our local news networks a chance to shine. They could stream their coverage nationally, to make up for a reduction in coverage by the national networks.

I hope there’s still time for Denver to rectify its mistakes with the DNC site selection committee.