Lexington developer, CM “Bill” Gatton in legal spat over ownership of valuable land
Two valuable pieces of land in booming Fayette County locations have become the center of a legal fight between a Lexington developer and a businessman known for his generous donations to the University of Kentucky.
Haymaker Development Company, which is owned by Timothy Haymaker, filed a lawsuit in November against Carol Martin “Bill” Gatton, as well as Beaumont Investments and the C.M. Gatton Trust. The lawsuit was first filed in Fayette County Circuit Court before being moved to federal court.
In the lawsuit, Haymaker argues that there’s an ongoing agreement between Haymaker and Gatton regarding the development of land purchased in the Hamburg area and at the intersection of Georgetown Road and Citation Boulevard. A Gatton attorney said the land in question belongs solely to Gatton, and there’s no documented agreement that says Gatton has to sell that land to Haymaker for development.
Gatton and Haymaker have worked together in the past on developments, such as the bustling Beaumont Centre off of Harrodsburg Road. The two successfully developed the Tuscany subdivision, also in Hamburg.
In the lawsuit, Haymaker argues that as part of his alleged agreement with Gatton, Gatton would purchase the land at issue and then title it over to Haymaker for development. Gatton would then get 70 percent of the proceeds from that development.
Haymaker started developing some of the land in the Hamburg area in 2003. However, the lawsuit argues Gatton and his holdings have stopped further development of the property and refused to acknowledge the remaining land is a joint asset that includes Haymaker.
The refusal to develop the remaining land is a breach of an agreement made by the parties, lawyers for Haymaker argue.
Barbara Edelman, of Dinsmore & Shohl, is representing Gatton in the lawsuit.
“Mr. Gatton’s trust has been the sole owner of this property for decades,” Edelman said. “Mr. Gatton, who has been known for his philanthropy, has been very generous with Mr. Haymaker over the years, allowing Mr. Haymaker to financially prosper. There is no document, no contract and no agreement requiring Mr. Gatton to sell his land to Mr. Haymaker. This lawsuit is an ill-advised effort to force Mr. Gatton to sell Mr. Haymaker his land. It will not succeed.”
The two parcels of land in Hamburg in question include 170 acres between Meeting Street and Old Rosebud Road and a second parcel of 12 acres at the intersection of Sir Barton Way and Winchester Road.
Both parcels are currently undeveloped.
Fayette County Property Value Administration records assess those undeveloped lots at upwards of $7.3 million.
Haymaker makes similar claims regarding remaining undeveloped land within a project on which Haymaker and Gatton have worked on the northwest side of town. That undeveloped land is roughly 27.5 acres and is situated at the intersection of Georgetown Road and Citation Boulevard, according to the lawsuit.
PVA records show that undeveloped track is worth upwards of $3.9 million.
The Citation and Georgetown area has also seen rapid growth over the past five years.
The lawsuit asks that the court find Gatton and his holdings violated an agreement made with Haymaker, that damages be paid, and that an injunction be granted to force the parties to finish both developments.
A lawyer for Haymaker did not immediately return phone calls asking for comment.
Gatton is UK’s single largest donor. He donated $20 million for the expansion of the UK student center in 2014. In 1995, he gave $14 million for the Gatton College of Business, which is named after him. The Beaumont YMCA is also named after Gatton. A native of Muhlenberg County, Gatton has had a long, varied and successful career in car dealerships, banking and real estate development.
This story was originally published December 4, 2020 at 12:18 PM.
