Community News

PenMet seeks eminent domain ruling to obtain 14-acre golf course parcel

Peninsula Metropolitan Park District recently launched eminent domain proceedings as it seeks to acquire 14 acres that comprise a portion of its Madrona Links Golf Course.

The park district filed the proceedings in Pierce County Superior Court, seeking to gain control of the land for public purpose from its current owner, ZTM Holdings LLC. The court is being asked to determine if the taking is for the public good and how much money equals just compensation, according to court documents.

“The decision to pursue condemnation was not taken lightly,” said Billy Sehmel, Peninsula Metropolitan Park District president. “We tried multiple times to reach an agreement in good faith, offering to pay full market value for the property. Owners ZTM rejected those offers and threatened to prohibit use of the property for course operations.”

PenMet Parks asked a Pierce County Superior Court judge to force ZTM Holdings to sell 14 acres of Madrona Links that the company owns.

ZTM Holdings has 20 days from the date of acceptance to answer the condemnation lawsuit, said Brynn Grimley, PenMet operations director.  The company can ask for an extension, but that would require approval from the court, she said.

ZTM says lawsuit unnecessary

David Osgood, the attorney for ZTM Holdings, said the company feels the condemnation lawsuit is unnecessary.

“We have always promised to keep the use of the property as a golf course as long as PenMet uses the property for golf,” Osgood said in an interview. “My clients are all golfers.”

The 14-acre parcel has more value for homes, but the county zones it “rural residential.” That allows just one home per 10 acres, according to the county.

The Pierce County Assessor’s Office values the land at $650,000.  A January appraisal by PenMet Parks placed its value at $470,000, Grimley said.  ZTM did not complete an appraisal of its own and did not dispute the appraisal as provided by PenMet Parks, she said.

PenMet owns most of the course

The land has been a point of contention between PenMet and the owners of the property at the northern-most edge of the golf course.

“The owner has also threatened to develop the property into housing,” Sehmel said. “If they act on those threats, PenMet Parks would have to reduce Madrona Links Golf Course from an 18-hole course to nine holes, dramatically impacting the public’s use of the property.”

PenMet already owns 79 acres of the golf course, according to county property records. Typically, 18-hole golf courses are anywhere from 120 to 200 acres, with municipal courses on the more compact side, according to the American Society of Golf Course Architects.

Golfers waiting to tee off at Madrona Links Golf Course.

Washington law gives PenMet Parks the legal standing to acquire parks through eminent domain or condemnation, according to the filing. Two years ago, the PenMet board of directors authorized the park district to file for condemnation to ensure “the maintenance, operation and continued public use of the Madrona Links Golf Course,” according to the filing.

History of the property

The city of Tacoma in 1977 contracted with 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.

ZTM Holdings bought the 14 acres from Tyson Limited Partnership for $1 million in December 2023, creating today’s clash between owners.

PenMet Parks believes it must acquire the 14 acres to preserve the golf course after the lease expires in 2028. The board approved a possible eminent domain lawsuit last year and PenMet’s lawyers filed the suit on May 26.

ZTM offered to grant PenMet an easement, which gives a right to access the property as long as the land is used for a golf course, Osgood said.

“We are owed reasonable compensation for the use of the land, which PenMet has been benefitting from for years,” Osgood said. “We feel PenMet has not bargained in good faith.”

ZTM wants $2 million

Gig Harbor Now reported in February 2025 that PenMet Parks, formed in 2004, purchased the city’s 80 acres in 2008 for $2 million.

PenMet Parks offered $2.49 million for the 14 acres in 2024, but ZTM rejected the bid. PenMet commissioned an updated appraisal in 2025 and provided it to ZTM in January. But the value decreased after the county revised the zoning under its Comprehensive Plan review.

ZTM told PenMet in April that it would not sell the property for less than $2 million, which is over four times the appraised value, according to the park district.