City Council moves forward with $3.4M Watertown Golf Club deal

Nov. 8—WATERTOWN — As expected, the City Council on Monday night took the first formal step to purchase the Watertown Golf Club from developer Michael E. Lundy for $3.4 million.

Council members Patrick J. Hickey, Cliff G. Olney III and Lisa A. Ruggiero voted to formalize an intent-to-purchase agreement for the club property adjacent to Thompson Park and its assets. Mayor Jeffrey M. Smith voted against it. Councilor Sarah V. Compo Pierce did not attend the meeting.

The pending purchase of the golf club has prompted a lot of public debate.

With about 35 people in attendance, the council chambers were packed with people on both sides of the issue. Out of the 23 speakers, about two-thirds opposed the pending purchase with many of them objecting to the price and the lack of transparency over the deal.

"Does it make you wonder, these two developers at odds for a long time came up with this huge purchase of $3.4 million?" Washington Street resident Maryellen Blevins said.

Supporters, however, think that by buying the nine holes, the city will protect the park from future development and possible litigation by Mr. Lundy and P.J. Simao, who owns Ives Hill Country Club. They did not attend the meeting.

"Let's put this to bed," former council member Leonard Spaziani said. "Let's get on with our lives."

Nate Holloway of Welden Drive said, "Yes, it's a lot of money. We've spent a lot of money on litigation."

Former Mayor Joseph M. Butler Jr., whose father was a previous owner of the golf club, also argued against the purchase questioning why the city hasn't done enough to determine the value of the club.

"(The club) was a perennial loser for years," he said. "I know personally."

Debbie Dermady, who lives on the city's north side, was one of about seven people supporting the deal. She noted that a majority of the council members are in favor of it.

"You are the majority, and you can make the decision," she said. "And you can feel good with your decision."

As for the purchase price, local businessman Peter Souch said council should compare the deal with the Alaska and Louisiana purchases, contending that the country now agrees they were good ideas.

"The purchase should be made for our kids, their kids and their kids," he said.

City officials have been working on the pending deal since a majority of council on Oct. 17 said that they favor purchasing the nine holes that Mr. Lundy owns.

The resolution approved on Monday night states council's intent to purchase the real estate and equipment assets of the golf club, contingent on City Manager Kenneth A. Mix "drafting a satisfactory purchase agreement and obtaining the information necessary for the operation of the course."

At the end of the meeting, council members debated the issue for more than an hour.

The mayor reiterated that the $3.4 million cost is way too much money to pay. He questioned the lack of financial information that had been provided by Mr. Lundy about the golf club.

He questioned the need to make the deal to avoid litigation when neither developer currently has a lawsuit filed against the city regarding the golf club.

He also doesn't think the golf course will make a good return on investment. "We're just using your money, an endless bank," he said.

Councilwoman Ruggiero defended the proposal, disagreeing with some speakers who called it blackmail, extortion and a terrorist threat by the two developers.

She also denied claims of a lack of transparency and not making the deal more public, saying that the city is in the process of due diligence to learn more about the golf club's financial picture. "We're doing our job," she said.

Both councilors Olney and Hickey believe it's not purchasing nine holes of a golf club, but view it as a land purchase that will benefit residents forever.

The land should have always been a part of the park, all three council members said.

"We need to fix this injustice to the park," Councilman Hickey said.

If the purchase offer goes through, the city would run it as a municipal course.

The deal would need to be worked out by April in time for the golf course's opening.

The city would operate the golf club as Watertown's only 18-hole course.

Before the possible sale of the nine holes to the city, Mr. Lundy was in talks to sell the property to Mr. Simao, who planned to build single-family homes on the property.

A proposed zoning change would kill that deal, so Mr. Lundy asked for a meeting with city officials saying that he wanted to talk about a way to end litigation involving the golf club. For years, the golf club has been the source of legal action by both Mr. Lundy and Mr. Simao.

The deal would end any litigation against the city by either Mr. Lundy or Mr. Simao.

Mr. Simao would operate Ives Hill as a nine-hole course and reopen his clubhouse restaurant. Mr. Simao would receive an unspecified amount of money from Mr. Lundy for turning his 18-hole golf course into nine holes.