Scottsdale pays out $1.4 million to local golf club in legal settlement

The City of Scottsdale has reached a settlement for $1.4 million for claims made by a local golf club. (File photo)

Scottsdale has entered into a settlement agreement with Scottsdale National Golf Club to alleviate a claim made against the municipality on the theory of unjust enrichment.

In April, the Scottsdale City Council approved a resolution authorizing a settlement of $1,423,081.06 stemming from a claim filed by the golf club.

The City Council approved the resolution unanimously on consent.
Scottsdale National Golf Club is a development on the north side of Dynamite/Rio Verde Road. During the club’s development process, the golf club was providing various required improvements to public streets including 116th Street, according to a city staff report.

In accordance with the city’s infrastructure improvement plan, Scottsdale intended to install an eight-inch water line at this location. The municipality determined it would be advantageous to have the water line constructed while the street was being constructed, rather than at a later date, the staff report states.

“Accordingly, Water Department staff and Scottsdale National entered into an informal agreement for Scottsdale National to construct the water line on behalf of the city and then the city would reimburse the cost,” the staff report penned by City Attorney Bruce Washburn stated.

“Scottsdale National constructed the water line as part of its street improvement project and the city accepted the water line and it is in use by the City Water Resources Division.”

The golf club submitted a request for reimbursement to the Water Resources Division and concerns were raised regarding whether the informal agreement made by Water Resources staff was sufficient to authorize such reimbursement, the staff report stated.

Consequently, the city initially denied reimbursement to Scottsdale National Golf Club.

Since, the club has submitted a notice of claim to the city seeking reimbursement for the cost of the water line based on the legal theory of unjust enrichment.

Scottsdale has reached a settlement on this particular claim in the amount of $1.4 million leading to the resolution of the claim and avoidance of potential future litigation.

The amount is based on actual cost incurred in constructing the line, the staff report stated.

Scottsdale resident and local businessman Bob Parsons purchased the golf club in 2013, according to published news reports.

Northeast Valley News Editor Melissa Rosequist can be e-mailed at mrosequist@newszap.com or can be followed on Twitter at twitter.com/mrosequist_.

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