Community Government Sports

PenMet halts golf course lease, will consider eminent domain on missing parcel

PenMet Parks terminated its Madrona Links operating lease with Tyson Limited Partnership and might seek to acquire by eminent domain the 14-acre part of the golf course it doesn’t possess.

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The city of Tacoma, which originally owned the course’s other 71 acres, entered a 50-year lease with Ken Tyson in 1977 to develop, manage and operate the course. Tyson bought the adjoining 14 acres to create enough space for an 18-hole layout.

The course opened in 1978. Tyson had held the lease, which was to expire in 2028, ever since. The agreement continued after PenMet Parks purchased the course from the city in 2008 for $2 million.

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

Tyson and his wife have died. Their adult children, who live out of state, are no longer interested. They sold the 14-acre parcel to ZTM Holdings (accountants Zack Rosenbloom and Mark Owen) for $1 million on Dec. 20. In January, Tyson appointed ZTM as managing representative, taking over Tyson’s day-to-day responsibilities.

An appraisal commissioned by PenMet Parks valued the 14 acres at $2.49 million. The parks district offered ZTM that amount to assure the parcels stay together. ZTM rejected the offer, claiming its evaluation found the property to be worth $8.1 million.

Tyson lease terminated Oct. 18

The parks district posted on its website Oct. 18 that it terminated the Tyson lease because of “ongoing unresolved deficiencies in course maintenance and operations.” Golf rounds won’t be impacted, it states.

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.

PenMet issued default notices to Tyson in November 2023 and July 2024. The district cited deficiencies in operations, maintenance and business practices per the contract and demanded Tyson correct them within 90 days. Tyson failed to take any action, PenMet states, so it ended the lease.

Zach Rosenbloom addresses the rally crowd Aug. 13 at Hackers restaurant. Photo by Ed Friedrich

On Tuesday, Oct. 22, PenMet posted that the park board will consider acquiring the 14-acre parcel through eminent domain to protect the public’s use of Madrona Links as an 18-hole course.

The PenMet board will consider the resolution during a meeting at 6 p.m. Nov. 5 at district headquarters, 2416 14th St. NW. The board will accept public comment.

PenMet said it has made every effort to negotiate the purchase of the 14-acre parcel with ZTM, but ZTM wouldn’t engage in talks and threatened to develop the land for 72 houses.

District says it’s out of options

“Their actions leave PenMet Parks with no other option but to consider acquiring the property through eminent domain to preserve it for public use,” the district states on its website. If the board passes the resolution, ZTM can still negotiate with PenMet to sell the property to avoid eminent domain proceedings.

Eminent domain, sometimes called condemnation, 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.

PenMet states that it would pay the $2.49 million purchase price from its general fund. In 2023, the district began appropriating money to buy the 14-acre parcel. It has set aside $1 million to date. The remainder would be paid using contingency funds.

From left, consultant Richard Singer of the National Golf Foundation, PenMet Executive Director Ally Bujacich and attorney Mark Roberts during a special board study session about Madrona Links on June 13. Photo by Ed Friedrich

“This is some PR campaign they put out there that we said these guys would make millions of dollars developing it instead of fighting to keep the golf course together,” ZTM spokesman Ezra Eickmeyer said Tuesday. “It’s not a threat. It’s very disingenuous of them to say that. They could just go do this if they wanted to. They would have no need to threaten them.

“It’s inappropriate to do a PR campaign against the co-owners of the golf course who are at every step trying to work with them and be partners to keep the golf course operating into the future and open to the public.”

ZTM wanted the lease

ZTM called a community meeting Aug. 13 at the course’s Hackers Bar and Grill to clarify its intentions. Rosenbloom and Owens said they purchased the property expecting they could take over Tyson’s lease and management of the golf course, leading to a new 40- or 50-year deal. ZTM asked PenMet to reassign the existing lease to them.

The district responded that it’s legally required to conduct a competitive bidding process, and that Rosenbloom and Owen failed to provide any qualifications or a specific plan to manage and invest in the course.

“They want to be the families that oversee, manage and bring in private capital to do all the upgrades, repairs and renovations everybody knows need to happen,” said Eickmeyer. “All these guys want is for PenMet to transfer the lease to the new owners and take their PR campaign against Rosenbloom off their website.

A golfer hits some irons at Madrona Links. Photo by Ed Friedrich

Rosenbloom said the Tysons sold the property to him at a discount because he’s a longtime friend and they trust him to continue the family legacy.

Rosenbloom said at the meeting he’s fine with going through a competitive selection process.

“All I’m asking for is a chance, a seat at the table, and PenMet is hell-bent on buying that property and taking it over,” he said.

Though PenMet and Tyson both have pocketed hundreds of thousands of dollars from the course, neither have reinvested much. The lease doesn’t require them to, Rosenbloom said. Only sublessee Stutsman Enterprise, which actually runs the course, is legally obligated to devote 1.5% of greens fees to capital improvements each year.

Course needs some work

The course condition has devolved to the point where it needs $1.8 to $2.4 million in high-priority investments and three times that much in the long run, according to a recent PenMet study conducted by Richard Singer of the National Golf Foundation. Its unique operating structure with several leases and subleases flow money away from improvements.

If the 14 acres becomes unavailable, Singer said PenMet might have to reduce the course to nine holes or turn it into an executive or par-3 layout. The parks district says it has no desire to operate a golf course. It would consider the study’s recommendations to pursue either a full-service management agreement or a comprehensive golf property lease, according to its website.