Letters to the Editor

Letter to the editor | Impact of Madrona lease termination

PenMet terminated the Tysons’ Madrona lease then approved a resolution to attempt to obtain ZTM’s 14 acres using the power of Eminent Domain.  What have they accomplished with these two moves?

1. The operation of Madrona is continuing to suffer from an increasing lack of attention
2. Stutsman’s and Hackers’ employees remain on pins and needles about their jobs
3. PenMet received notice from the Tysons that the Consent to Sublease between the Tysons and Stutsman is unenforceable because it lacks the proper acknowledgement as required by RCW 64.04.010 as it read at the time
4. Stutsman also received notice that his sublease with the Tysons is being terminated because Stutsman failed to operate Madrona in a manner that would prevent PenMet from terminating the Tysons’ lease with PenMet
5. Stutsman is on notice that the Tysons will look to Stutsman to indemnify them for any damages that might come from PenMet’s termination of the Tysons’ lease and/or from any damages the Tysons may be shown to owe to PenMet
6. The Tysons put PenMet on notice that they will assert claims against PenMet for its abusive and bad faith behavior evidenced by PenMet’s:
   1. Unreasonable refusal to approve the transfer of their Lease to ZTM
   2. False claim that the Tysons are responsible for all capital improvements at Madrona
   3. False statements made by PenMet and its agents that Ken Tyson intentionally improperly constructed the Madrona golf course putting the Tyson family in disrepute with the greater Gig Harbor community
7. PenMet is also on notice it no longer has any right to use ZTM’s 14 acres (remember—the Tyson’s donated the use of that property), but, for the benefit of the golfers, they are giving PenMet permission to use the 14 acres provided:
   1. PenMet provides proof of liability insurance with ZTM as a named insured and
   2. Subject to ZTM’s claims for the fair rental value of PenMet’s use

ZTM’s Offer To Purchase PenMet’s Property

The PenMet Board adopted Resolution R2024-016 authorizing the taking of ZTM’s property by Eminent Domain.  That Resolution contains the following language:

SECTION 8. The Executive Director or her designee is hereby authorized to settle condemnation litigation or enter administrative settlements (a settlement in lieu of initiating condemnation litigation) for the acquisition of the Subject Property. Such settlements shall be made only upon the finding of legal counsel that the settlement is consistent with the law and is reasonable, prudent, and in the public interest. Such settlements may not exceed the established maximum price. For all other settlements proposed, the Executive Director must obtain prior approval of the Board.

ZTM is now claiming that no one from PenMet has been in touch with them to pursue a “settlement” as the Executive Director has been authorized to do.  With that lack of good faith with regard to Section 8, ZTM has put its own offer on the table:

1. The purpose of the purchase would be to continue Madrona as a privately owned, but public golf course
2. The property will be dedicated to use as a golf course for the next 50 years
3. ZTM will agree to covenants on both PenMet’s parcel and ZTM’s parcel so that both can be used solely for a golf course
4. The price is to be negotiated with the fair market value determined based on its current use as a golf course

According to ZTM, PenMet would benefit from this sale because:

1. It would eliminate PenMet’s obligation to make the capital improvements needed to bring Madrona back to the condition it should be in
2. It would eliminate PenMet’s obligation to spend millions for the 14 acres
3. PenMet could use the savings realized in #1 and #2, above, to improve other PenMet properties

The reader might remember my Letter to the Editor that was published on October 22, 2024, which suggests almost an identical solution to the dispute between PenMet and the Tysons.  I take no credit for getting to this point as I believe this has been ZTM’s intention from day one.

Let me also throw this out there:  PenMet has zero internal experience with or capability of running a golf course.  The result of that lack of expertise (and one might say “lack of interest”) has been a steady decline of Madrona over the entire period of PenMet’s ownership.  ZTM, on the other hand, has Mark Cupit, son-in-law of Ken Tyson (a man holding a very impressive résumé including working at Madrona when it first opened)  and other golf course professionals already selected to assist them in running Madrona.  ZTM also has the financial ability and the desire to pay for the needed improvements.

PenMet:  Accept this offer—save the legal fees the taxpayers will be paying and save Madrona for 50 years.  Do the right thing.

 Craig McLaughlin

Fox Island

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