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Golf Business, May 2005
Tee Box, an Interview with Johnny Pott
by Dan Gleason
Landmark Golf, based in Indio, Calif., is a well-recognized
real estate development company that has designed and developed
an array of projects that include the courses at Kiawah Island
Inn and Resort near Charleston, S.C., and PGA West in Palm Desert,
Calif. More recently, Landmark has branched out into operations
management, with six courses under its umbrella.
Golf Business recently caught up with Johnny Pott, former tour
player and Landmark owner and senior vice president of design and
construction.
Golf Business: 2004 was an up-and-down
year for golf. Overall play in the Southwest was down slightly for
the year. What accounts for that, and what can the industry do to
get more people playing?
Johnny Pott: The daily-fee courses
we manage out here suffered due to an inordinate amount of rain
in the desert this past winter. We normally have two inches of rain,
but this year we had 12 inches and lost 15 days during the height
of our season. Managers sometimes have a hard time communicating
to owners that the Lord often controls your income. Yet, we still
have to come up with innovative ideas and schemes to attract players
to our client courses.
G.B.: Yet golf real estate sales
are booming in most places. Is that something that might last?
J.P.: Interest rates are favorable
and many builders are selling homes at a record pace. Land development
is one of those ³make-hay-while-the-sun-shines² businesses.
Back when interest rates where high, it was rough. Homebuilders
are having a banner year and the consensus is that this cycle will
continue. It is definitely a speculative business.
G.B.: That being the case, what
can developers do to assure that they can survive the downturns?
J.P.: Be very selective and plan
well. You have to buy property at a reasonable price, since a good
portion of your property may be devoted to a golf course. You have
to understand the potential growth of metropolitan areas.
G.B.: How do you do that?
J.P.: Look carefully at all the
factors and the potential for development. It is very important
to know about water sources, draining sources and environmental
constraints of a property. Try to find a nice piece of raw land
and get the entitlements yourself to create good valueand make
sure you have a solid master plan. At PGA West, people thought we
were goofy going out that farbut we did our homework, and now
it¹s in the middle of town. There are some 20 courses now,
six of which we own. We sold 500 memberships in a few months even
before PGA West opened, because we had a solid master plan that
gave buyers confidence.
G.B.: What do you think is ahead
for the industry and for Landmark Golf?
J.P.: Golf was making a comeback
last year before the weather went haywire. I don¹t think anyone
should push the panic button. With good weather, it could be another
big year next season. As far as Landmark¹s business, it¹s
an exciting time. Our latest project is Silver Rock in La Quinta,
Calif. We have the management contract in partnership with the city
of La Quinta, and the first coursedesigned by Arnold Palmerjust
opened in March. It will be the host course for the Bob Hope Desert
Classic, and Phase II will include another course and very likely
areas for townhouses. We have gotten into management in a small,
controlled way, primarily with Pulte Homes. We are trying to get
our toe under the tent there, while at the same time partnering
with the state of Arizona to develop 2,000 acres in Chauncey Ranch,
near the TPC Scottsdale.
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