‘I’ve got great news,’ said Terry McAuliffe, chairman of the Democratic National Committee. ‘Boston is the site for the 2004 convention.’

Cheers rang out in city hall and Mayor Thomas Menino flashed an ecstatic smile after receiving the official phone call yesterday from McAuliffe announcing Boston will host the 2004 Democratic National Convention, which will attract hundreds of thousands of politicians, journalists and supporters to the city.

On the phone with McAuliffe in Washington, Massachusetts Senators Edward Kennedy and John Kerry praised Menino and voiced their excitement for the city.

‘It’s a great, great moment for our city,’ said Kerry, who is expected to run for the Democratic nomination for president in 2004.

The Democratic National site selection committee voted unanimously in favor of Boston over New York, Detroit and Miami.

While Boston has already raised $20 million, the convention will cost approximately $50 million, a cost that will be split between the city and the state. However, Boston is expected to take in about $150 million, city officials said.

Boston was chosen to host the convention because of financial pledges, hotels, transportation and diversity, Menino said. Some of the renovations that will take place between now and July of 2004, when the convention will take place, are the building of a new convention center, a clean-up of the Boston Harbor and improvements at Logan International Airport.

‘Boston has assembled the complete package – strong leadership … deep commitment from political, civic and business leaders … and first-rate facilities,’ McAuliffe said in a press release yesterday. ‘Boston is a city that answers the call.’

Kennedy, a Democrat, added Boston is ‘the cradle of liberty, of our values as a party.’ He highlighted Menino’s role in the decision, describing him as ‘the key’ to winning the convention bid.

Menino acknowledged Kennedy’s efforts as well as those of the city itself.

‘The mayor is the leader of the city, but if you don’t have a team behind him, you don’t win ballgames,’ he said, referring to the city and state officials who worked with him.

‘Boston is a city on the move with an extraordinary past and a limitless future,’ Kennedy said. ‘This convention, and the president we nominate, will renew the commitment of our country to basic principles of freedom, fairness and opportunity for all – and there is no better place to start than Boston.’

McAuliffe also recognized Boston as ‘a city that draws its strength from its diversity,’ a point emphasized by State Senator Diane Wilkerson and Menino, who mentioned the working men and women of the Boston community and called the city ‘the new Boston’ and ‘a city that works for all our people.’

Before the site was selected, Boston businesses pledged $20 million, the most ever guaranteed by a city before being designated the host.

Katherine Shepard, senior corporate communications manager for New Balance, which pledged $750,000, claimed the company is bipartisan but felt the convention is ‘a positive thing for the city and the state.’

Vice President of Dunkin’ Donuts Concepts Ken Kimmel agreed and said Dunkin’ Donuts has pledged money for the convention ‘because what’s good for business is good for us.’ According to Kimmel, ‘It is really a lot about civic involvement.’

Menino sees the positive benefits to the city in terms of ‘the ripple effect,’ meaning once people come to Boston they will want to come back – a good thing for area businesses.

Menino is also confident transportation will not be a problem by the week of July 26, 2004 when the convention will be held.

‘The Big Dig will be buttoned up for the most part,’ and Boston is a ‘walkable city,’ he said.

The city tried to win the 2000 convention, but due partly to the construction of the Big Dig, the Democratic Party selected Los Angeles.

Governor-elect Mitt Romney, who had a significant role in organizing, managing the budget of and fundraising for the 2002 Winter Olympics in Salt Lake City, has volunteered his help with planning as well, Menino said.

Universities have also pledged to help the city with the convention. Boston University has announced it will offer housing to convention volunteers.