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According to a well-placed source, the DNC has told the bid committees that they will announce two finalists next month, and then enter into even more serious negotiations with each city.
This can only mean one thing: this will soon be a two city race to host the convention, and the two cities will be Denver and St. Paul.
Update: This is now publically confirmed in today's Denver Post:
Denver City Councilwoman and host committee president Elbra Wedgeworth said the Democratic National Committee will narrow the field to two in September.