Developer loses battle over foreclosed property in Sumner County Jul. 29, 2013 3:01 AM Another aftershock of the 2008 real estate bubble collapse recently brought a foreclosure judgment of more than $17 million related to the development of property in Sumner County owned by four companies tied to Gallatin developer Dan Downs. Several sets of properties held by the companies were auctioned off June 19, with four sets taken by Fifth Third Bank, the creditor. The foreclosure proceedings involved: • Savannah Market Place LLC and Bell Farm Estates LLC properties on Nashville Pike • Hidden Creek LLC property on Big Station Camp Boulevard • Two Franklin Farm Estates LLC parcels on Lower Station Camp Creek Road in Gallatin • A 69-acre parcel off Cages Bend Road • Two dozen undeveloped lots with open spaces at Gorden Crossing, Nogs Garden, Drayton Downs and Mulberry Court in Hendersonville Fifth Third Bank acted under a judgment entered Jan. 30 for $17.3 million, including $14.3 million in principal plus interest. Court fight ends Downs and business partner Ernest Hanna lost a two-year court fight this year to Cincinnati, Ohio-based Fifth Third after twice going to the Kentucky Court of Appeals to fight lower court decisions. “Everything was resolved amicably with the bank,” Downs said in a phone interview July 19. “There’s nothing that wasn’t resolved. It’s all over with.” Asked if he and Hanna were on the hook for millions owed after auction proceeds came up short, Downs said the matter was dropped in court by all parties. He declined to answer further questions about the foreclosures or judgments. A spokesman for Fifth Third declined to comment on the lawsuit. The foreclosed properties came with more than $311,000 in three years of back taxes, interest and penalties owed to the county. The cities of Gallatin and Hendersonville also were owed unpaid property taxes. Fifth Third paid off the taxes to complete the transactions. Downs’ hub for business interests is based in Lexington, Ky. Besides Kentucky, Tennessee and Texas, Downs’ business dealings included some in Missouri. Downs continues a legal fight against the city of Gallatin that started in 2010 involving Bell Farm Estates and Franklin Farm Estates to determine who pays for road and bridge work at the intersection of Cages Bend Road and Big Station Camp Boulevard. It is set for an August trial. Written by Jesse Hughes Gannett Tennessee
Posted on: Mon, 29 Jul 2013 17:14:09 +0000
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