Office of the Attorney General
Attorney General Conway Reaches Settlement with Green Farm Resort and Lafayette Golf Course

Attorney General Jack Conway today announced that an agreement has been reached regarding the Green Farm Resort and Lafayette Golf Course near Leitchfield in Grayson County. The agreement was reached with 3D Resorts-Bluegrass LLC, which has purchased the property from the defendants in a consumer protection lawsuit filed by the Attorney General’s Office in February, 2005. The agreement requires 3D Resorts to escrow more than $1.2 million to ensure completion of infrastructure construction by the end of 2009, including roads and utilities in the second phase of the development, as well as a recreation facility and swimming pool.

The Attorney General filed suit in February 2005 in Grayson Circuit Court against GF Resort LP, Texas developer Samuel D. Ware, and others, alleging violations of the Kentucky Consumer Protection Act in the marketing and sale of recreational and retirement property at the Green Farm Resort. Undeveloped lots were marketed as an exclusive resort with lifetime memberships to the highly-rated Lafayette Golf Course. However, at the time the suit was filed, the developer had failed to complete any roads or utilities, leaving more than 400 purchasers unable to commence construction and many purchasers unable to even access their individual lots.  The Attorney General alleged that an escrow account, which was represented to guarantee infrastructure completion, had been improperly depleted by the developers. Through court orders obtained in that lawsuit in 2006, more than $1.2 million was paid by GF Resort and Ware to install infrastructure in the first phase of the development, which was largely completed in 2007, leaving only Phase II to be completed.

As part of the agreement and escrow arrangement announced today, 3D Resorts agreed to complete Phase II infrastructure and a recreation facility, including a pool for resort members. 3D Resorts also agrees to assume certain obligations of the former owner, GF Resort LP. In turn, the Attorney General agreed to dismiss the current suit against the prior developer, GF Resort LP and the other defendants. This dismissal does not affect property owners’ private legal rights to seek individual relief from the defendants under the Kentucky Consumer Protection Act.

“This agreement represents a new chapter for Green Farm Resort.” Conway said. “This is a beautiful area of our Commonwealth, and my office hopes that 3D Resorts will work to fully deliver what it promised to consumers. We will continue to oversee completion of the project to assure compliance with the agreement,” General Conway said.