Community Government Sports

PenMet Parks board approves condemnation of missing golf course parcel

PenMet Parks commissioners unanimously voted Tuesday to acquire through condemnation the part of Madrona Links Golf Course the district doesn’t possess.

The 14.3-acre parcel is owned by ZTM Holdings (accountants Zack Rosenbloom and Mark Owen), which bought it for $1 million on Dec. 20, 2023, from Tyson Limited Partnership, according to Pierce County records.

The city of Tacoma, which originally owned the course’s other 79.7 acres, entered a 50-year lease with Ken Tyson in 1977 to develop, manage and operate the course. Tyson bought the adjoining 14.3 acres to create space to build an 18-hole layout. The agreement continued after PenMet Parks purchased Madrona Links from the city in 2008 for $2 million.

Steve Burnham, attorney for ZTM Holdings and the Tyson family, addresses PenMet commissioners. Photo by Ed Friedrich

PenMet officials claim Tyson never inquired about the parks district’s interest before selling the property to ZTM. They commissioned an appraisal that valued the 14.3 acres at $2.49 million. The parks district offered ZTM that amount to ensure the golf course remained whole. ZTM rejected the offer, claiming its evaluation found the property to be worth $8.1 million.

ZTM offered parcel for $5.3 million

Parks attorney Mark Roberts provided the board a lengthy review Tuesday of the course’s history and dealings with Tyson and ZTM. He presented little new information. However, Roberts did allege that ZTM in October offered to sell the parcel for $5.3 million, provided the district waive all claims against Tyson and ZTM regarding course repairs. The parks district estimates deferred maintenance costs at $5 to 7 million.

“It is not a viable settlement and would be an irresponsible use of taxpayer funds,” Roberts said.

Roberts also displayed comparative photos of Madrona Links and Metro Parks Tacoma’s Meadow Park Golf Course “to have some sense of what a person using a municipal golf course should expect.”

Madrona Links map. The 14.3 acres in dispute is at the top left of the course. All or part of five holes lie within the parcel. Courtesy of Pierce County.

PenMet, after three default notices, terminated the Tyson lease on Oct. 18 because of “ongoing unresolved deficiencies in course maintenance and operations,” according to its website, which includes an abundance of information about the situation.

“You could tell a significant amount of maintenance wasn’t being performed on a routine basis,” Roberts said Tuesday. “There’s been absolutely no effort made to correct these problems.”

ZTM wants operating lease

ZTM, which Tyson appointed as its managing representative, doesn’t intend to lease or sell the property to the parks district. It wants PenMet to reassign Tyson’s lease to ZTM and add a long-term extension, and believes owning the land gives it leverage, Roberts said. However, that would require a competitive selection process, according to the parks district.

“It simply isn’t a productive negotiation, what I would call a good-faith negotiation,” the attorney said. “It leaves Parks with only one option — exercise the right of eminent domain.”

The two sides can still negotiate, and Roberts said he hopes that occurs, “but I have to assume at this point we aren’t going to be able to reach that agreement,” he said.

Consultant Richard Singer of the National Golf Foundation, PenMet Executive Director Ally Bujacich and attorney Mark Roberts during a June meeting.  Photo by Ed Friedrich

Eminent domain is a process to acquire private property necessary for public use after due process of law and payment of fair market value to the owner.

Golf rounds won’t be impacted, PenMet says. Stutsman Enterprises, which has performed Madrona Links operations and maintenance since 2014, will continue to operate the course under its existing sublease, with oversight from PenMet instead of Tyson. The move also won’t affect Hackers Bar and Grill, which operates under a sublease with Stutsman.

Condemnation authority disputed

Steve Burnham, attorney for ZTM and the Tyson family, spoke during the public comment period Tuesday “to clear up false statements” and “put the board on notice” that he doesn’t believe PenMet has condemnation authority for a golf course under state law, as it proposes in the resolution. He said he prepared a 70-minute rebuttal, but PenMet afforded him only the typical 3-minute limit plus an additional 3 minutes. He said a public hearing is necessary “to present counter-evidence and truth.”

Burnham’s corrections to what he said are PenMet false statements included:

PenMet has not negotiated in good faith. It presented its July purchase offer of $2.5 million after first serving a Notice of Default. That is not good faith negotiations, he said. It was presented as a “take-it-or-leave-it” offer and PenMet never responded to ZTM’s counter-offer of $8.1 million.

PenMet’s July Notice of Default threatened PenMet would terminate Tyson’s lease and then PenMet gave ZTM a low-ball offer for the property, Burnham said. “Is that good faith,” he asked.

Golfers waiting to tee off at Madrona Links Golf Course. Photo by Ed Friedrich

Burnham said PenMet knew before ZTM bought the property that Tyson was looking to sell it, but never made any offers to purchase the 14 acres from Tyson before Tyson accepted a purchase offer from ZTM in 2023.

He said the state law PenMet proposes to use “doesn’t provide it with eminent domain authority for a golf course. I will dispute that in court if necessary.”

Roberts countered that, “I’m very comfortable that the court will conclude we have the authority to condemn a golf course.”

Commissioners weigh in

Commissioner Steve Nixon said the sale of the 14.3 acres to ZTM without notifying PenMet demonstrated Tyson wasn’t negotiating in good faith and helped lead to his decision to support the resolution.

Commissioner Laurel Kingsbury said she believes the golf course would be in jeopardy because ZTM isn’t accountable to taxpayers like elected PenMet board members are.

“That’s precisely why eminent domain exists, to protect property from development,” she said. “I will not stand by as a vital piece of community property is exploited by land developers.”

ZTM has said it could build 72 single-family homes on the property, but that it has always intended to keep the land as part of a public golf course. All or part of five holes lie within the parcel.