PGA tour stop at John Fry’s golf course at the American
Institute of Math in Morgan Hill could provide windfall in revenues
and charitable donations
Gilroy – Local electronics magnate John Fry could face an uphill battle convincing Morgan Hill leaders to allow a professional golf tournament on the city’s eastern edge.
But while Fry remains silent on his talks with the Professional Golf Association, his efforts to bring a PGA tournament to South Valley is already winning converts among business and nonprofit leaders, who see a potential windfall in revenues and donations.
“We’d certainly be interested in having the details,” said Dan Ehrler, director of the Morgan Hill Chamber of Commerce. “But generally speaking, it could be very beneficial to the region, given again what the PGA has done with their tournaments.”
An economic impact survey by the Monterey Institute of National Studies found that the AT&T Pebble Beach National ProAm generated $68 million in revenues for area business, up from $55 million in 2000, according to tournament director Ollie Nutt.
The event also raised $4.6 million in charity dollars for more than a 100 organizations in Northern California, said Nutt, who helps distribute the money as vice president of the Monterey Peninsula Foundation.
He predicted the 2006 tournament held last week would break the $5 million fundraising mark for the first time.
The South Valley region would not likely see such high figures, since Pebble Beach ranks as one of the largest of the PGA’s 48 annual tournaments. Roughly 60 percent of the proceeds come from corporate sponsorships and hospitality tents, according to Nutt.
“We’ve had people on the PGA tour keep us reasonably informed,” Nutt said. “They’re not looking into sponsorships or hospitality (in Morgan Hill).
The tournament also would not include a ProAm, pairs play combining professionals and amateurs that draws big crowds when it includes celebrities.
Even if a future tournament in Morgan Hill may operate on a smaller scale, the revenues from the event would still likely dwarf proceeds from other large events.
“There were 48 official events in 2005 and approximately $94 million was given out,” said Nelson Silverio, a spokesperson for the PGA Tour. “There’s a range (for each event) and that could be anywhere from high six figures to over a million dollars.”
By comparison, the Gilroy Garlic Festival, which draws more than 100,000 visitors to South Valley each summer, contributed $300,000 to more than 100 charities last year.
“I think it would be wonderful for the nonprofits in South County,” said Donna Pray, president of the Gilroy Foundation. “In 2005, (the foundation) gave out $55,000 but the requests were upwards of $175,000 and some of our funds are restricted to certain uses. Something like this can definitely help fill gaps where there truly is need.”
For the moment, plans for a tournament in Morgan Hill remain tentative at best.
Fry and his partners at the American Math Institute, which owns the course, have not discussed their plans with the city or made any effort to change the course’s permit, which expressly disallows tournaments.
Play at the course is restricted because Fry built it without proper permits. The construction endangered habitat and the area’s streams and groundwater. The institute is still working to meet environmental guidelines, and an event the size of a professional tournament would likely trigger a new round of lengthy environmental review. In addition to possible ecological consequences, the institute would have to accommodate the significant human and automobile traffic associated with such an event.
Fry could not be reached for comment. His partner, Steve Sorenson, was unavailable for comment due to meetings, but said this week that they would approach the city based on the outcome of talks with the PGA.
A tour spokesman confirmed that the institute course, as well as a Fresno course, is in the running to host an event as soon as 2007.
It remains unclear, however, if Morgan Hill decision-makers will overlook their rocky relations for the potential of an economic windfall.
Morgan Hill City Council members could not be reached for comment Thursday, but earlier this week Councilman Larry Carr called for Fry to start talks with the city.
“They better come to the table soon and tell us what they want if they want to have any success at all,” Councilman Larry Carr said. “This is not insurmountable or out of the question, but they shouldn’t hammer out negotiations with the PGA before they come to us.”
Fry’s Golf course Timeline
1994
– The American Institute of Mathematics purchases the gold course
1996
– In June, AIM applies for a grading permit to restore the natural contours of the 192-acre plot
n In July, Morgan Hill informs AIM it will need to conduct an environmental impact review – In September, AIM asks for permission to restore the original 40-acre course
1997
– In April, Morgan Hill issues grading permits for the project
1998
– Residents on Foothill Avenue complain that a berm caused by the grading is impeding their view of the hillside
n In October, Morgan Hill investigates and discovers AIM is grading the entire plot
n In November, the city issues a notice of violation and demands that work cease
1999
– Aim continues to build new golf course, but begins preliminary environmental review work
2004
– With the course nearly completed, AIM finishes environmental impact report
n In exchange for promises to monitor surface and groundwater quality, Morgan Hill issues a limited use permit for the golf course
2005
– In August, an environmentalist asks for a criminal investigation into the course, charging that AIM is receiving an illegal tax break
n In September, Morgan Hill acts to evict AIM from the tax break program
2006
– AIM in negotiations to host a professional golf tournament at the course
