In 2007, local businessman Doug Hamilton threw a Christmas party for the students of a local elementary school and gave away thousands of dollars in toys.
However, Hamilton's $27,538 check to the toy retailer bounced, and a South Dakota court says Hamilton, who owns the Barker & Little property management company, needs to pay up.
The debt is on the top of $18 million four banks claim he owes them for defaulted mortgages on many properties managed by Barker & Little and owned through Hamilton-controlled partnerships. Hamilton also owes more than $500,000 in back taxes to Pennington County.
Hamilton in an interview last week said a "greedy" Toys "R" Us store manager refused to put the charge on Hamilton's American Express credit card, and instead demanded cash. But "fundamentally, they are entitled to their money," Hamilton told the Journal.
Barker & Little had hosted a similar toy giveaway every year since 2004, according to court documents. Each time, Hamilton paid for the toys with a check. The 2007 check was returned for insufficient funds in an account with Great Western Bank, also one of the banks foreclosing on some Hamilton properties.
A Toys "R" Us spokeswoman said the company would not comment on the legal matter.
Former mayor Jim Shaw played Santa Claus at the Dec. 14, 2007, Christmas party, held at General Beadle Elementary School. At the party, Shaw distributed candy canes and $30 Toys "R" Us gift certificates to the school's 387 students, many who live in poverty, according to school officials.
Barker & Little, the property management firm owned by Hamilton, donated the gift certificates and the candy canes.
Hamilton was a big donor to Shaw's last mayoral campaign. The former mayor, who now works in Rapid City for the Small Business Administration, said he often played Santa for area organizations and volunteered for the Barker & Little party after he was invited by John Brewer, then a top employee of Hamilton's.
"My volunteer involvement was for the kids at General Beadle. It was a fun time for them," Shaw said in an e-mail.
Prior to the announcement of the 2007 Christmas giveaway, Barker & Little directors toured the school and then told Principal Robin Gillespie what they wanted to do.
"I think they just fell in love with the kids" because of the students' positive attitudes, Gillespie told the Journal for a Dec. 12, 2007, article. "And the next thing we knew, they said they wanted to do this."
Barker & Little commonly gave Toys "R" Us gift certificates every year to children of employees and tenants, Lacy Gebes, Hamilton's corporate assistant, said at the time.
Gebes said 185 families benefited from Hamilton's giveaway in 2006 and Toys "R" Us reserved two hours for Barker & Little recipients to do their shopping.
Barker & Little did not sponsor a giveaway at the school last month.
Contact Jeremy Fugleberg at 394-8421 or jeremy.fugleberg@rapidcityjournal.com.
