The sale of the golf course property and its assets for $3.4 million was expected to close Dec. 29, 2022, but state Supreme Court Judge James P. McClusky prevented the city from completing the deal after resident Maryellen Blevins filed action against the city, its council and three council members claiming, among other things, that the purchase represents an “unconstitutional gift of funds to private entities.” At issue is whether the proposed sale price is “grossly disproportionate” to the property’s actual value, representing a “gift” to club owner Michael E. Lundy, or whether the city negotiated a price that Blevins believes is too high, but one that the majority of council approved.

The question over whether the city of Watertown, N.Y. can proceed with its purchase of the Watertown Golf Club remains pending after state Supreme Court Judge James P. McClusky reserved decision Jan. 11 on multiple issues contained in a suit filed by a property owner seeking to have the deal voided, the Watertown Daily Times reported.

Judge McClusky said he “will try not to keep the golfers of the city waiting too long,” indicating he would issue his ruling within 10 days.

The sale of the golf course property and its assets for $3.4 million was expected to close Dec. 29, 2022, but Judge McClusky prevented the city from completing the deal after city resident Maryellen Blevins filed action the previous day against the city, its council and three council members claiming, among other things, that the purchase represents an “unconstitutional gift of funds to private entities.”

The city has proposed using its capital reserve fund to buy the club, which includes about 64 acres of land surrounded by Thompson Park on which club owner Michael E. Lundy operates nine of the club’s 18 holes, along with the clubhouse, carts and other assets, the Watertown Daily Times reported.

The agreement also calls for a deed restriction with Ives Hill Country Club and Prime LLC owner P.J. Simao in which Simao will take his golf club down from 18 holes to a nine-hole course, leaving the city as owner of the sole 18-hole course within the city, the Watertown Daily Times reported. It was revealed in court that Simao will receive $850,000 from Lundy in exchange for the deed restriction.

At issue is whether the proposed sale price is “grossly disproportionate” to the property’s actual value, representing a “gift” to Mr. Lundy, or whether the city simply negotiated a price that  Blevins believes is too high, but one that the majority of city council — by a 3-2 vote — approved, the Watertown Daily Times reported.

Blevins’s attorney, Matthew P. O’Neil, argued Jan. 11 that a roughly 400% difference between the proffered price and a 2017 appraisal of the property would qualify as an unconstitutional gift.

The attorney representing the city, Jonathan B. Fellows, questioned whether a sale price negotiated between city council and Lundy should be the subject of litigation, which could result in Judge McClusky substituting his judgment for that of council’s decision on what should be a fair price, the Watertown Daily Times reported.

Lowville attorney Michael Young, who is seeking intervenor status for Lundy, who is not a named party in the action, but has an equity interest in the outcome, said the five-year-old appraisal should not be relied upon to determine the property’s value because it includes only the land involved and other circumstances have changed or were not considered in the 2017 appraisal, resulting in a mischaracterization of the property transaction.

Among other things, he said Lundy has made $500,000 in improvements to the property since 2017 and the $850,000 going to Simao for the deed restriction benefits the city as it limits competition, the Watertown Daily Times reported.

Blevins’s attorney has asked that a preliminary and permanent injunction be ordered in the case, preventing the city from consummating the deal. The city’s attorney has asked Judge McClusky to deny any injunctions and to dismiss the case, the Watertown Daily Times reported.

The Watertown City Council voted Jan. 3 to reaffirm its previous decision to buy the golf club after previously approving the purchase at an earlier meeting.