With the 2013 Frys.com Open PGA tournament in full swing at CordeValle Golf Club this week – bringing visitors to South County from parts near and far – area business people are disappointed they will be absent from the event’s revenue stream when it leaves the area, especially since nobody knows when it will return.
Frys.com Open tournament organizers still want to return to South County eventually, but they have already announced the week-long tournament will be hosted by Silverado Resort and Spa in Napa in 2014, with an option to keep the professional golf competition there for 2015 and 2016.
The move is yet another delay in the tournament’s vision of bringing the Frys.com Open to the Institute Golf Course in east Morgan Hill – located on electronics retail magnate John Fry’s property on Foothill Avenue – since its inception in 2006.
The tournament moved in 2010 to San Martin from Scottsdale, Ariz.
But the holdup is the result of delays in the construction of a clubhouse and American Institute of Mathematics headquarters at the Institute Golf Course, which sits on a 192-acre property. More than a year after securing all the necessary permits and digging a giant hole in which to pour the foundation for the planned 170,000-square-foot structure, PG&E still continues to stymie the project, according to Fry’s Electronics spokesman Manuel Valerio.
“Regrettably, there is nothing new to report on the status of construction of the Institute project,” Valerio said hastily Wednesday while preparing for this week’s tournament, the first round of which took place Thursday. “We hope to return the Frys.com Open to South Santa Clara County – at the Institute – just as soon as possible.”
The local economic impact of the Frys.com Open, which has attracted pros like Rocco Mediate, Ernie Els, Tiger Woods and Angel Cabrera, is clearly evident to business leaders and organizations.
Morgan Hill Chamber of Commerce President Rich Firato said Wednesday, before official tournament play even began, he had seen five vehicles decorated with Frys.com Open insignia parked outside various businesses in downtown Morgan Hill throughout the week.
“It’s sad that it’s going away. It was really getting some momentum for (businesses in) Morgan Hill, San Martin and Gilroy,” Firato said.
Tournament Director Jeff Sanchez said it has been estimated the Frys.com Open tournament brings between $12 and $15 million to the local economy during the week.
Five months ago, Valerio and a PG&E spokesman said the utility company was still reviewing how the proposed construction might impact a 34-inch natural gas transmission pipeline that runs underground, north to south, through the property, about 30 feet east of the edge of the construction site. The pipe does not sit underneath any construction plans. Now the project has been stalled by PG&E since Fry acquired all the necessary permits he thought he needed in October 2012. No explanation has been offered why the utility company’s review has taken up almost a year.
City staff notified PG&E and the utility company affirmed that it wanted to review the project before construction proceeded.
PG&E did not respond to multiple phone calls requesting an update on their review.
Fry’s proposed project is a sprawling structure that replicates parts of the Spanish Alhambra castle which was built in the sixth century. It will also serve as the headquarters for the nonprofit think tank American Institute of Mathematics, which is now based in Palo Alto and was co-founded by Fry.
“We’re really hoping the Fry’s organization can get it worked out so they can come back to South County,” said Gilroy Welcome Center Executive Director Jane Howard. “This time it is disappointing to lose that,” particularly for hotels in South County that have been booked solid during the week of the event in previous years.
“The other part that’s exciting (which will be absent next year) is the national exposure that Gilroy and South County receives thanks to the coverage of the tournament” on television, Howard added.
Morgan Hill Mayor Steve Tate, who is volunteering for the fourth year in a row at the Frys.com Open, said “most likely” the tournament will remain in Napa in 2015, though tournament organizers could not confirm that. Tate and his wife, Jennifer, have coordinated volunteer hospitality services at the event since it moved to San Martin. They plan to volunteer for the 2014 Frys.com Open in Napa as well, he added.
“We’re all disappointed that it’s going up to Napa for a couple years,” Tate said. “But on the other hand, the course up there has been newly refurbished. Obviously, it’s a loss not having it (in South County) for a couple years. But it will make it even sweeter when we get it back.”
Tournament Director Jeff Sanchez said it’s too early to say if the Frys.com Open will accept the option to remain at Silverado for 2015.
In the 2012 tournament, more than 130 professional golfers competed for more than $5 million in prizes, organizers said.
Some of the proceeds from previous Frys.com Open events have gone toward area nonprofits such AIM, Adoption Services of Santa Clara County, a local chapter of First Tee Foundation started to give youths more access to golf, and the El Toro Youth Center in Morgan Hill.
In 2012, the tournament donated $1 million to charity, and has donated more than $5 million since 2006, according to the Frys.com Open website.
AIM Executive Director Brian Conrey said AIM has received about $1 million since 2006.
“We have benefited enormously,” Conrey said. “Having the tournament here and the great support of the community, has allowed AIM to continue some really great programs, to solve math problems, and continue outreach programs for kids in Morgan Hill and teachers all over the country,” Conrey said.
Valerio said Frys.com Open will begin discussing which nonprofits will directly benefit from the 2014 tournament after this week.
“Some of the beneficiaries of this, and past Frys.com Opens have a Bay Area, regional-service reach, so folks in the South County area benefit regardless of where the event is held,” Valerio said.
In May, a PG&E spokesman said the utility company has not identified any immediate risks of the pipeline’s proximity to the construction site, which sits on ancient landslides that consultants hired by the City and Fry have deemed stable. PG&E simply wants to make sure all precautions are made to ensure the line remains stable during and after construction. No explanation has been offered as to why PG&E’s review has now taken up almost a year.
The 2013 Frys.com Open takes place through Sunday evening at CordeValle Golf Club in San Martin.
