Business Community Government

Madrona Links Golf Course dispute heading for courts

Madrona Links Golf Course comprises two land parcels each owned by different parties. The arrangement sufficed for the first 46 years of a 50-year lease. During the past year, however, it created turmoil and likely leaves the facility’s future up to the courts.

The PenMet Parks board authorized acquiring through eminent domain the 14 acres the district doesn’t own while ZTM Holdings and Tyson Limited Partnership have sued to kick the park district off its land.

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

The potential for the current dispute was unwittingly built into the golf course. The city of Tacoma in 1977 signed Ken Tyson to develop 80 acres south of Gig Harbor into a public golf course in exchange for a 50-year lease to operate it. Tyson determined the property wasn’t large enough for an 18-hole layout and bought an abutting 14-acre piece, creating today’s clash between owners.

PenMet Parks, formed in 2004, purchased the city’s 80 acres in 2008 for $2 million. Tyson Limited Partnership sold its 14 acres to ZTM Holdings in December 2023 for $1 million.

Dueling offers

With the lease set to expire in 2028, both owners, with the expressed interest of ensuring the golf course survives far into the future, have tried to buy out the other. PenMet appraised ZTM’s 14 acres at $2.49 million and offered that amount. ZTM, based on its own valuation, countered at $8.1 million and later lowered the price to $5.3 million. All offers were rejected, according to a frequently asked questions page on PenMet’s website.

ZTM, formed by local accountants Zack Rosenbloom and Mark Owen, originally sought only to assume and extend Tyson’s lease. PenMet denied the request, claiming law requires it to conduct a competitive bidding process and that ZTM failed to provide qualifications to operate a golf course, according to the webpage.

Madrona Links map. The 14.3 acres in dispute is at the top left of the course. Courtesy Pierce County

PenMet terminated Tyson’s main lease on Oct. 18, claiming Tyson didn’t respond to two default notices to address deferred maintenance. The parks district took over the main lease and continued Tyson’s sublease with course operator Stutsman Enterprises, according to the webpage.

The park board on Nov. 5 said it had exhausted efforts to negotiate the purchase of the 14 acres and voted to try to acquire the parcel through eminent domain.

Condemnation process hasn’t begun

“PenMet Parks has not yet commenced eminent domain proceedings and has continued to attempt good-faith negotiations with ZTM,” PenMet Executive Director Ally Bujacich wrote in an email Wednesday. “ZTM has not responded to PenMet Parks’ proposal.”

In October, ZTM offered a settlement that involved ZTM transferring the 14 acres to PenMet for $5.3 million (midway between the PenMet and ZTM appraisals) and the release of all claims against ZTM and Tyson. PenMet rejected the offer because it said $5.3 million far exceeds the $2.49 million value it places on the land, Bujacich said.

On Nov. 22, ZTM proposed to buy PenMet’s 80 acres and convert Madrona Links to a privately owned public course. PenMet rebuffed the offer, stating it can’t sell property without declaring it surplus, and can’t negotiate to sell property with a single party but must conduct a public bidding process, according to the webpage.

Bujacich said Wednesday that, “ZTM’s proposal did not include a price but did expect the value to be significantly discounted.”

In December, PenMet responded to ZTM’s settlement offer. It said it would pay $2.49 million minus the $6 million it claims Tyson owes in deferred maintenance. That would result in ZTM paying PenMet $3.5 million. ZTM didn’t’ respond to the proposal, Bujacich said.

Lawsuit filed

ZTM and Tyson attorney Stephen Burnham filed a lawsuit against PenMet and Stutsman in Pierce County Superior Court on Jan. 21, citing several complaints and asking for damages in an amount to be proven at trial. The case isn’t scheduled to be heard until Jan. 27, 2026.

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

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.

PenMet on its FAQ page states that Stutsman remains responsible for operating and maintaining the golf course under the current sublease that expires in 2028, overseen by the parks district instead of Tyson. Stutsman has continued uninterrupted in that role. The lawsuit contends that PenMet has no legal right to continue the sublease with Stutsman.

Suit claims PenMet is trespassing

The lawsuit 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. They are trespassing. 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.

PenMet Board President Laurel Kingsbury said the parks district is “not at liberty to comment on any pending litigation.”
Attempts to reach ZTM Holdings and Stutsman Enterprises were unsuccessful.