Tuesday, August 2, 2011

TPC Harding Park — The Grande Dame Enters a New Era.

It was always a great track. Born of the Great Depression, and created by the same team who designed the Olympic Club. And for decades, it remained as one of the premier public courses in the country. Its storied history has been well chronicled. But over the years, time and neglect had taken their toll. The former beauty became a wretched mess. In 1998, Harding Park suffered the supreme indignity when it was used as a spectator parking lot for the U.S. Open.  

"I just couldn't bear to see it turn into a weed patch," says Sandy Tatum, former USGA President and elder statesman of all that is golf in the Bay Area. Thus, began his herculean efforts, and the subsequent multi-million dollar renovation that was heralded throughout the golf world. 


"I got a hold of Chuck Schwab and Schwab got to Tim Finchem," says Tatum. Leveraged efforts with Mayor, Willie Brown, and Michael Cohen from the City Attorney’s Office lead to the initial deal with the PGA Tour, who sent architect, Chris Gray, to San Francisco to do the course re-design. "It all fell into place in almost mystical form," he recounts. And while the local unveiling occurred in 2003, the rest of the world didn't really see it until two years later at the American Express Championships. Local golfers basked in the glory — their jewel and the City of San Francisco showcased before an international audience. "The heavens obviously aligned; how could we possibly be luckier than to have Tiger Woods in a playoff with John Daly," exclaims Tatum. A new contract was struck for more Tour events, putting it in Tatum's words, "so that the future of the golf course was very dramatically secured."

But the good times following the AmEx were short-lived, as ongoing concerns with the course conditioning began to re-manifest. "As we got involved in the Presidents Cup, it became very clear that the grand vision of 2004 had begun to fade, the condition of the course was not what it needed to be," explains David Pillsbury, President PGA Tour Properties and Executive Vice President of Championship Management. "As it turned out, we basically slid by, it could have been a disaster. But what it did was bring to the forefront that the status quo had to change."  Tatum concurs, "if it wasn't for the Tour oversight, we'd lose that golf course."

It was during the Presidents Cup that Tatum and Pillsbury met with Phil Ginsburg, General Manager of the San Francisco Recreation and Park Department. "We recognized the PGA's passion, level of commitment, and investment in Harding when David and Sandy pulled me aside at the Presidents Cup," recounts Ginsburg. "They said we're not sure the City realizes what a remarkable and special asset you have here."

Meanwhile, the Harding management contract with Kemper Sports was due for expiration, and though there was a provision for a two-year extension, "we felt it was our fiduciary duty to put it out for bid," says Ginsburg. "At the same time, we had this 10-year partnership agreement with the PGA Tour, who obviously have a love for the golf course, and a vested interest in its maintenance and operations. So they submitted a proposal, and it blew us away!"


The essence of Pillsbury's proposal was that the PGA Tour would run the course at no charge, putting the net proceeds back into the golf course, and help support the San Francisco Chapter of the First Tee. Skeptics questioned the motivation. "Our motive is to create a sustainable funding model for the First Tee of San Francisco, our motive is that Harding Park has the conditioning capable of hosting PGA Tour events," proclaims Pillsbury. "We have an interest in playing Tour events in San Francisco for years to come, and we need to make sure we've got a venue that's worthy. That's our motivation!"

The City was delighted — a working model that eliminated management fees. Ginsburg championed the initiative through the various political ranks, enlisting the aid of City Supervisor, Sean Elsbernd.  "Without Phil, there's no way this could have happened," states Pillsbury. "He is a guy working in government that knows how to make things happen, and those guys are unusual."

"It was really terrific, agreeing not to charge any management fees whatsoever," says Ginsburg. "Their costs are reimbursed, but they are essentially providing strategic leadership and operational management for free."  And that was key to the paradigm shift.

"Everybody said the problem was with the unions, but that's not right, the problem was leadership, management, and resources," explains Pillsbury. "Those people are perfectly capable of delivering against the standards that we need. They just needed the support and additional resources which we've been able to secure for them. The management fees that were being pulled out of the property are now being invested back into the course."

Operationally, the PGA Tour has placed one of their own agronomists on-site to provide leadership and support to the existing maintenance crew. The subsequent reviews have been highly favorable, with several of the Charles Schwab Cup players commenting on the high caliber of the Harding greens. "It's a credit and testament to the talent and commitment of our public sector gardeners under the agronomic leadership of the PGA Tour," says Ginsburg.    
        
One other key factor cited by Ginsburg is the branding and marketing aspects of being associated with the PGA Tour. "Government in the 21st century can no longer do it alone, and we know we need to leverage the support of partners to deliver world class programs and services," he says. "The PGA Tour is a world class partner and it brings a tremendous amount of prestige to Harding and to the Rec and Park Department. There's a lot of civic pride and history around this course, and the PGA Tour gets that."

Paramount to the deal is that the golf course remains accessible and affordable to the people of San Francisco, with 50 percent of the tee times being reserved for City residents at resident rates. "We are delighted with this unprecedented public-private partnership, we believe it's a model for other cities around the country," says Pillsbury. "The PGA Tour stands ready to offer similar services, so that net proceeds go back into the assets of the golf community and help support programs around golf that change lives for kids."

So, it would appear then that Tatum's vision is well on the mend. "In my judgment," he says, "it was the salvation of a very, very important project."  Certainly, the deal dramatically enhances PGA Tour visibility and presence in the Bay Area, as Pillsbury points to the core competencies and synergies derived via the TPC network. Meanwhile, San Francisco's golfing jewel once again shines bright, with a future that looks to remain so. ### 

 

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