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Court denies prelimary injunction to Madrona Links operator
This time, a judge sided with PenMet Parks in its effort to replace the Madrona Links Golf Course operator, denying Stutsman Enterprise a preliminary injunction.
The park district terminated the Tyson Limited Partnership lease on Oct. 18, stating Tyson defaulted by failing to perform deferred maintenance. PenMet began soliciting a new course operator in January, but picked up operator Stutsman Enterprise’s sublease from Tyson based on a letter Matt Stutsman wrote that he would work with the park district to ensure a smooth transition, according to court records.
PenMet instructed Stutsman that he must address the maintenance issues, according to its attorneys. Desired improvements included removing trees, cart path repair, fairway drainage, tee box upgrades, fairway grading and aerification, and enhancing bunkers and ponds.
A foursome putting on a Madrona Links green. Photo by Ed Friedrich
The smooth transition didn’t occur. After PenMet contracted with Troon Golf Course Management to take over Madrona Links management on Sept. 1, a Pierce County Superior Court judge granted Stutsman a temporary restraining order on Aug. 21 to retain his role.
Stutsman then tried to extend the duration through a preliminary injunction that would keep him in place until a lawsuit that begins on Jan. 27 is settled or the parties reach an agreement. The judge denied the request on Sept. 5. The restraining order has expired, according to PenMet.
Sublease defines removal process
That doesn’t mean Troon can swoop right in. Stutsman’s sublease states that if it cures the defaults within 15 days, he can stay. If takes longer but he is making good progress, the park district has to give him 90 days. If PenMet determines that the improvements won’t be made even with the 90 days, it can begin an action to reclaim possession and remove Stutsman.
Stutsman claims he’s not responsible for deferred maintenance. That was Tyson’s job, and now PenMet’s. He says he was only obligated to keep the golf course mowed and watered, and invest 1.5% of green fees into capital improvements. Stutsman says he exceeded that benchmark, according to court documents. Stutsman wants PenMet to buy out the sublease, the documents state. The park district says that’s not going to happen.
Madrona Links layout sign with sponsors. Photo by Ed Friedrich
PenMet couldn’t say yet what its next steps will be or comment on the status of Troon and course equipment it planned to lease. The park district will post that information on its website when it becomes available, said Executive Director Ally Bujacich.
Equipment purchase
PenMet commissioners, during an Aug. 26 special meeting, approved making a sole-source purchase and waived a competitive bidding requirement on used equipment after Stutsman’s became unavailable. It found only two appropriate packages, and one got snapped up before it could act.
PenMet didn’t want that to happen again, so it leased a package from Toro’s Turf Star Western dealer for $12,547.50 per month for three years, or about $452,000. The payments will come from golf course revenue.
PenMet Parks issued a statement today that it “is committed to maintaining Madrona Links as a public 18-hole golf course and will continue to take steps to steward the golf course to provide the level of service that players, stakeholders and community members expect. The district will continue to take appropriate steps to hold Tyson and Stutsman responsible for their obligations under the operating lease and sublease.”
ZTM asks out of lawsuit
Also last week, ZTM Holdings asked to be dismissed from the January lawsuit. ZTM owns 14 of Madrona Links’ 94 acres it purchased from Tyson in December 2023 for $1 million. It was suing for rent and to keep PenMet from trying to take the property through eminent domain.
“ZTM has since retained its current counsel, and has determined that the claims which were filed in the complaint purportedly on behalf of ZTM are not consistent with ZTM’s interests at this time, and that the costs of pursuing these claims through trial would be a waste of ZTM’s funds and judicial resources,” the request states.
ZTM’s motion to dismiss is set for hearing on Sept. 26, said attorney Ken Strauss. The motion would dismiss any claims made by ZTM in the pending lawsuit, but would allow for claims to be filed at a later date if it becomes necessary or appropriate.
PenMet had the 14 acres appraised at $2.5 million and offered that amount. ZTM, which received a much higher appraisal, declined. The park board gave staff the authority to pursue the acreage through condemnation, but they haven’t proceeded.
ZTM and Tyson filed the lawsuit against PenMet and Stutsman on Jan. 21, 2025. A court will hear it on Jan. 27, 2026.
The suit cites several complaints and seeks damages.
A woman practices her iron shots at Madrona Links. Photo by Ed Friedrich
Who’s responsible for maintenance?
The suit alleges Tyson’s sublease with Stutsman delegated responsibility to Stutsman to cure the deferred maintenance issues specified by PenMet. Because Stutsman, which Tyson hired in 2014, failed to act, Tyson said it terminated the sublease on May 23 and ordered Stutsman to vacate the premises, though Stutsman never left.
PenMet on its FAQ page states that Stutsman remains responsible for operating and maintaining the golf course under the sublease that expires in 2028. The lawsuit contends that PenMet has no legal right to continue the sublease with Stutsman.
The suit states that PenMet and Stutsman owe Tyson damages for not paying rent since Oct. 18, when Tyson’s main lease was terminated, and since then have had no right to occupy ZTM’s 14 acres. All or part of five holes lie within the parcel.
Tyson further claims that it wasn’t in default when its lease was terminated because it was operating and maintaining Madrona Links “in a good, prudent and businesslike manner” and maintained it “in good condition and repair,” the lawsuit reads.
And finally, the lawsuit claims that a golf course is not a purpose for which a metropolitan park district can condemn property using its power of eminent domain.
Budget increased for DeMolay sandspit work
At Tuesday night’s board meeting, commissioners approved amending the capital budget to account for recent grant awards. The Tacoma DeMolay Sandspit accessibility and park improvement project had its budget bumped from $1.9 million to $3.6 million after receiving nearly $1 million from a state Recreation and Conservation Office grant and a state capital budget appropriation. The park district also shifted $532,000 from Fox Island fishing pier accessibility and park improvements to the sandspit park.
More improvements will require more design work. Commissioners on Tuesday increased the contract for Baumwelt landscape architects $87,000 to $476,800.
PenMet also increased the project budget for Narrows Park accessibility improvements and restrooms from $650,000 to $1.15 million after it received a $500,000 state Recreation and Conservation Office grant.