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Agreement reached in Old Silo lawsuit case

6/15/2018

By Tom Marshall
Senior Advocate writer

An agreement has been reached among the parties to a lawsuit involving Old Silo Golf Course that has led to an agreed order of dismissal.
The agreed order, filed May 29, dismisses the case without prejudice with each party to bear their respective costs expended. Because it was dismissed without prejudice the suit can be reinstated at a later date if terms of the agreement are not met.

The lawsuit against Old Silo Golf Club was filed Aug. 28, 2017, by Sterling Developments Inc., Silver Creek Association Inc. and Amos S. Jr. and Janice Ray.

Sterling Development is the developer of the residential and commercial real estate in Silver Creek. The Silver Creek Association is a non-profit corporation whose members are property owners in Silver Creek, including the Rays.

“An agreement has been reached between the parties in the Montgomery Circuit Court lawsuit over the maintenance of Old Silo Golf Course,” Mt. Sterling attorney Alan Peck, who is representing the plaintiffs, wrote in a statement to the Advocate. “This agreement resolves, for the time being, the issues in that case.”

Peck explained for the Advocate the terms of the agreement.
“Under the agreement, Old Silo Golf Club LLC will provide regular maintenance of the golf course property during the growing season,” Peck said in the statement. “The level of maintenance will be less than what was asked for in the lawsuit, but a level that has been determined to be acceptable by the plaintiffs.”

Peck said the agreed upon maintenance is to begin in the next two weeks.

“Whether the golf course will be operating at any time in the future is unknown,” Peck said.

A memorandum of understanding between the parties stipulates that the course be mowed at least once every month except on certain holes where mowing is required every 14 days.

Shrubbery and trees around the clubhouse are to be reasonably trimmed, the memorandum states.

The water level of the irrigation system to the “holding pond” and performance of general maintenance involving the pond are to be maintained to the extent within Old Silo’s power and control.
“If at any time hereafter the Old Silo Golf Course property ceases to be maintained at a level equal to or greater than the maintenance program set forth herein, the Silver Creek plaintiffs shall have the right, in their sole discretion, to institute and pursue whatever legal action against Old Silo, or its successors in interest, they determine at the time is appropriate as a result of such cessation of maintenance,” the memorandum states.

Old Silo owner Stephen Howard told the Advocate that he hopes the agreement leads to reopening of the golf course in some capacity.
The memorandum states that the golf club “has been approached by Art Walker regarding his interest in exploring and participating in a long-term solution to the issues related to the golf course property, and in connection with those discussions with Walker, Old Silo and Walker have agreed that their efforts would be substantially aided by dismissal of the above referenced lawsuit.”

The Walker Co. has agreed to perform the maintenance work on the course, Howard said.

Art Walker provided the Advocate with a statement explaining a role he hopes to play in the future of Old Silo.

“As a homeowner and resident of Silver Creek for more than 18 years, I think the lawsuit between the parties was a waste of time and money,” Walker said. “Furthermore, it seemed counterproductive to any future progress in Mt. Sterling or Montgomery County. So, I am willing to sit across the table with Old Silo and discuss ways to move forward with a viable solution. Hopefully, other parties are willing to do the same.”
Howard said Walker has not expressed an interest in purchasing the course and there has been no other recent interest expressed by any other parties.

He, however, expressed optimism that something positive will come about as result of the involvement of Art Walker.

Howard claims that the course generated $8 million in revenue for the community when open and thriving and could continue to prosper with support from the homeowner’s association.

Howard also expressed concern about the number of trespassers on the property and damage caused by at least one vandal, who is currently being prosecuted in juvenile court.

Lexington attorney Christopher L. Thacker, who is representing Old Silo, said he is glad to have the matter resolved.

“We were delighted the parties have been able to work together to a resolution and obviously there is interest in working toward a permanent resolution for the golf course,” Thacker told the Advocate.

Howard had previously said “the golf course cannot resume operation without the active and ongoing financial support from the homeowner’s association who enjoyed the substantial benefits of being located near the Old Silo Golf Course.”

He previously pledged to continue working with the plaintiffs and others “to find a financially realistic solution that would allow for the reopening of the golf course to the benefit of all concerned.”

The plaintiffs in the suit claimed the golf course property is restricted “to be perpetually used only as a golf course.”

The suit alleged that after closing, the greens were regularly mowed and watered, but the fairways were being maintained on an irregular basis. In addition, the plaintiffs alleged that after closing, Old Silo had not mowed, trimmed or maintained the remainder of the golf course property “at the level in and in the manner that a properly maintained golf course is maintained.”

Plaintiffs sought permanent injunctive relief ordering and directing Old Silo Golf Club to resume maintaining and continue maintaining without interruption the entirety of the golf course property “at the level, and in the manner a properly maintained golf course is maintained.”

The suit alleged that the plaintiffs have