A fungicide manufactured by Tessenderlo Kerley Inc. caused turf damage that forced all 18 greens to be closed for three months over the summer. The city has earmarked $283,000 to make up for lost revenue and another $115,000 for remediation, with the rest of the money set aside for capital projects. The manufacturer has also agreed to set up a $60,000 escrow account to cover sodding costs in 2016, if needed.
The City of Rye, N.Y., will get $2.5 million to settle a dispute over a fungicide that destroyed the turf this past season at the Rye Golf Club, the Lower Hudson Valley, N.Y.-based Journal News reported.
As a result of the damage, all 18 greens had to be closed for about three months this summer. In addition to its payment to the city, the manufacturer, Tessenderlo Kerley Inc., TKI, agreed to set up a $60,000 escrow account to cover sodding costs in 2016, if needed, the Journal News reported.
“I think the amount is fair. I think the overall settlement is fair. And we have our greens back,” said City Councilman Terry McCartney, a product liability attorney by trade who was heavily involved in the negotiations with TKI.
The city has earmarked $283,000 of the $2.5 million to make up for lost revenue and another $115,000 for remediation. The rest of the money will be set aside for Rye Golf Club capital projects, a discount incentive to retain members and to settle small claims stemming from the problem, the Journal News reported.
A number of club members filed claims demanding refunds from the golf club and the city, which owns the golf club and operates it as a self-sustaining enterprise fund. But the city has a no-refund policy built into the membership contracts. The exact number of claims could not immediately be determined, the Journal News reported.
Lessing’s, which runs the Rye Golf Club’s Whitby Castle restaurant, and Rye Golf Pro Shop, which sells equipment and lessons to club members, also filed claims saying they lost business because the greens were closed, the Journal News reported.
The fungicide that caused the damage, ArmorTech ALT 70, was recalled by TKI in June because it caused problems on 18 golf courses in 11 states, including at the Rye Golf Club. A representative from TKI declined comment.
“Our hard costs were less than $500,000, so I was surprised they offered this much money,” McCartney said. “The risk is losing a lot of members because we lost the heart of the 2015 golf season. But this extra money will help us get them to come back.”
The city has agreed to give a 35% discount in 2016 to members who had a golf membership in 2015 as long as they drop their claims. McCartney said members could save anywhere from about $1,000 to $2,000 with the discount, the Journal News reported.
“It’s a good incentive for members to rejoin next year,” Mayor Joe Sack said. “From that perspective it’s a good business proposition.”
Mack Cunningham, vice president of the Rye Golf Club Commission, an elected, nine-member board that creates the golf club budget, thanked the golf club staff and the City Council, specifically mentioning McCartney, for the work that was put into the settlement. “I thought it was equitable for both the city and for the members,” Cunningham said.
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