Is beloved Pierce County golf course in danger of ‘hostile takeover’? It has problems
Madrona Links is the only fully public golf course in the Gig Harbor area. That means anyone can use it for typically low fees — unlike private courses, which often charge expensive membership fees to access their facilities.
It’s where Dave Walker, a retired commercial fisherman, learned to golf. Walker, a Gig Harbor resident for some 30 years, remembers the course’s better days.
Now?
“It’s gone way downhill,” he told The News Tribune at a public meeting and rally hosted Aug. 13 inside Hackers Bar and Grill, a restaurant located on the course.
Unhealthy turf, smelly septic problems and damaged cart paths are some of the problems that have plagued Madrona Links Golf Course, according to the third notice of default PenMet Parks issued to their tenant operating the course in November last year.
The tussle over whose job it is to fix up the deteriorating course has caused tension in an already complicated public-private partnership Madrona Links has been operating under for decades, leaving golfers under the specter of what could happen to the course if the partnership breaks down.
Here’s what to know about how the Madrona Links lease got so sticky, and where negotiations are now.
Who owns Madrona Links?
The 85-acre property the golf course sits on is actually two parcels owned by separate entities.
The larger 71-acre parcel is owned by PenMet Parks. The smaller 14-acre parcel is owned by ZTM Holdings, an LLC formed by Gig Harbor accountants Zack Rosenbloom and Mark Owen in December 2023 for the purpose of holding that land.
The 71-acre parcel was previously owned by the City of Tacoma, which leased it to the Tyson family in 1977 for the purpose of developing and operating a golf course. Since 71 acres wasn’t big enough for a full 18-hole golf course, the lease allowed the Tyson family to purchase additional land to expand the property. That additional land was the 14-acre parcel, which the Tyson family sold to Rosenbloom and Owen earlier this year.
Currently, the party actually operating the course is a subcontractor, as has been the case since 1986 when the Tyson family subleased the operation of the golf course to a third party. From 1986 to 2014, the golf course was operated by JDL, Inc. From 2014 to now, Stutsman Enterprises, Inc. has been operating the course.
According to Rosenbloom and Owen, they were entrusted by the Tyson family to take over the existing lease. The reason they want to take over the lease is to carry on the Tysons’ legacy and restore Madrona Links to the course it once was, Rosenbloom said at the public meeting Aug. 13. He and Owen held the meeting to try to gather support for their efforts to take over operating the course.
PenMet Parks has refused to transfer the lease to Rosenbloom and Owen, stating that the Tyson family is in default on their lease by failing to keep the course in good condition and that Rosenbloom and Owen haven’t provided enough evidence that they’re qualified to run the course. According to PenMet Parks’ website, the Tyson family is responsible for the operations of the course, maintenance and capital improvements.
PenMet Parks spokesperson Robyn Readwin wrote to the News Tribune in an email that the park district sees two options as most viable for the future of the course, based on a report commissioned from the National Golf Foundation: either PenMet takes direct control of Madrona Links and hires an operator to manage the course, or PenMet continues the lease structure but uses a competitive bidding process to select the lessee with clear expectations for maintenance and initial capital investment to make certain improvements to the property.
That’s led Rosenbloom and Owen to allege that PenMet Parks is planning a “hostile takeover,” which PenMet Parks denies. They used that phrase in their news release about the meeting.
Readwin wrote that PenMet Parks recently received an appraisal from ZTM Holdings and is “reviewing the information they sent.” This appraisal says that the 14.31 acres of land owned by ZTM Holdings is valued at about $8.1 million as of July 25, according to a copy shared with The News Tribune.
That’s a sharp difference from the appraisal requested by PenMet Parks, which valued the 14.31-acre parcel at about $2.5 million as of March 11.
PenMet Parks offered to pay ZTM Holdings that amount to acquire the property, according to their offer letter available on their website. The letter states ZTM Holdings paid $1 million to buy the property from the Tyson family.
Who’s responsible for repairing the course?
PenMet Parks holds the Tyson family responsible for making improvements to the course, according to Readwin.
The 1977 lease agreement, available on the PenMet Parks website, states: “The Lessee agrees to keep and maintain the leased premises in good condition and repair, and at the expiration or termination of this lease, Lessee will return the leased premises, together with all structures, facilities and improvements thereto, except business fixtures and equipment, to the City in good condition and repair, reasonable wear and tear and damage by fire or unavoidable casualty excepted.”
The lease will expire in 2028, according to the website.
The website was last updated Aug. 14 and will continue to be updated with more information as it becomes available, according to Readwin.
The PenMet Parks website alleges that “Tyson, who appointed Zack Rosenbloom as its managing representative in January 2024, has not made any effort to correct the deficiencies.”
According to ZTM Holdings, the Tyson family is retired. ZTM Holdings sees making improvements to the course as the responsibility of their third-party course operator, according to Ezra Eickmeyer. Eickmeyer is a long-time friend of Mark Owen and his family who was hired as a public relations representative for ZTM Holdings.
The third-party operator is Stutsman Enterprises, owned by Matt Stutsman, who previously served as an assistant at the golf course, according to Rosenbloom.
Stutsman did not respond to multiple requests for comment from The News Tribune.
Stephen Burnham, the attorney representing Tyson, wrote to The News Tribune in an email that he understands PenMet Parks’ attorney agreed to meet with Stutsman earlier this month to discuss the notice of default and create a plan to address it. He also wrote that Stutsman’s attorney has told him that Stutsman plans to establish a timeline to correct the areas identified in the notice of default.
“We are looking forward to reviewing the timeline for action by Stutsman when it is complete,” Burnham wrote.
What about ZTM Holdings?
Eickmeyer said Owen and Rosenbloom aren’t able to do anything to improve the course while Tyson is still officially the lease holder.
If PenMet handed over the lease to Owen and Rosenbloom, they would make the changes the golf course needs, according to Eickmeyer.
“We’ll take the heat and we’ll step up,” he said.
Rosenbloom told The News Tribune he thinks maintaining and operating the course is Stutsman’s responsibility, and ZTM Holdings has been pushing him to do so. It’s difficult because the language of the lease is somewhat unclear, he said.
Rosenbloom told The News Tribune via email that their contract requires Stutsman to put at least 1.5 percent of greens fees the course brings in each year toward capital improvements, but he doesn’t have to pay for capital improvements beyond that.
“We can only put pressure on the tenant to perform work that we deem to be operational and not a capital improvement. Last year, we along with the Tyson family pressured Matt to remedy an untenable situation with the septic system,” Rosenbloom wrote.
A graph on PenMet’s website shows that PenMet’s net revenue from the course from 2019 to 2023 was nearly $400,000, Tyson’s was roughly $500,000, and Stutsman’s was more than $1.4 million.
On their website, PenMet Parks says they’ve invested $3 million into the golf course since 2008. That includes $2 million they paid for the property in 2008 and $1 million they’ve saved to make improvements to the course in the future, the website says.
When asked what improvements PenMet Parks will use that $1 million for, Readwin wrote they haven’t decided yet, but the funds will be used for “an overall and comprehensive plan for the golf course.”
She also wrote that PenMet Parks makes $72,000 a year from the lease and has limited the rent it collects to ensure the tenant can afford to properly operate and maintain the property.
Readwin didn’t directly answer a question by The News Tribune about whether PenMet Parks would consider terminating the lease early, following the notices of default. She wrote in an email that “PenMet Parks will continue to take appropriate actions requiring the tenant to fulfill its contractual obligations to operate the course” and keep it in good condition, per the lease terms.
Why won’t PenMet Parks hand over the lease to ZTM Holdings?
PenMet Parks says Owen and Rosenbloom haven’t proven their qualifications to run a golf course, according to the PenMet Parks website.
Rosenbloom, an accountant, said that shouldn’t be an issue.
“Accountants run golf courses now,” he told The News Tribune Aug. 8.
He’s not a PGA professional or an agronomist — a crop expert — but has plans to hire people to assist him in running the course, he said. He said they have already hired one individual.
In an email Aug. 11, Eickmeyer wrote to The News Tribune that this individual recently hired has been in professoinal golf course management for over a decade and ZTM Holdings has provided PenMet Parks with his “bona fides.” He said he couldn’t share more information because this individual is currently employed at another golf course, and out of a desire “to respect the privacy of people who don’t want to be included in this public conflict.”
ZTM Holdings also submitted a one-page document titled “Madrona Links Proposal” at PenMet Parks’ request for information about their qualifications or plan to operate the golf course. According to the third notice of default, the proposal wasn’t satisfactory.
When asked about the proposal and how it was developed, Eickmeyer wrote that it was requested by PenMet Parks’ attorney as “something simple, basic and bullet pointed.”
“This was never intended to be our representation of detailed plans for the course’s future,” Eickmeyer wrote.
Besides disputing ZTM Holdings’ qualifications, PenMet Parks also says they’re required to hold a competitive process to find the next operator as a public agency.
This is per their purchasing and procurement policy, according to Readwin.
A copy of this policy Readwin emailed to The News Tribune shows it was last approved in its current form in June 2022. The purpose of the policy is to ensure PenMet Parks follows state and when applicable federal requirements with regard to the use of public funds to pay for goods and services. According to the policy, purchases for services (not including architectural/engineering services) over $50,000 require PenMet Parks to obtain at least three competitive quotes using a request for proposal.
“The contract award will be based on price and qualifications,” the policy states.
Is there any danger of Madrona Links becoming something other than a golf course?
Ally Bujacich, Executive Director of PenMet Parks, said in a statement to The News Tribune that “PenMet Parks recognizes the value of Madrona Links Golf Course to our community and remains committed to keeping Madrona Links as a golf course.”
Rosenbloom also said at the public rally held at Hackers Bar & Grill Aug. 13 that ZTM Holdings has no plans to change the golf course or develop their 14-acre parcel if they were to take over the lease.
Kristin Lucas, president of the Madrona Links Women’s 18 Hole Club, was listening at the rally. She told The News Tribune Aug. 16 she feels those representing ZTM Holdings at the meeting — Eickmeyer, Owen and Rosenbloom — have good intentions, but she wasn’t yet convinced of their ability to run the golf course. She did exchange contact information with Rosenbloom after the meeting and planned to talk with him further.
Rather than the upgrades the course and facilities need, many attendees at the meeting focused on their concern about whether the course would continue to serve the public. Lucas told The News Tribune the women’s club is a place where players share a special camaraderie, and the public nature of the course means they don’t have to pay high membership dues.
The summer rate to play 18 holes at Madrona Links is $43, according to the course website.
“We feel very fortunate that we can welcome women of all abilities and we can come to play without a big financial burden,” Lucas said.
This story was originally published August 21, 2024 at 10:20 AM.
