Lake District Townhomes Could Be Set to Resume After Bankruptcy

Development on the townhome portion of The Lake District mixed-use project could be moving forward again after a prolonged pause caused by the original developer’s bankruptcy.

In their December meeting the Lakeland Municipal Planning and Design Review Commission unanimously approved a new preliminary development plan for the residential portion of the project, known as The Willows at the Lake. The approval clears the way for renewed activity on the townhome section, which has remained unfinished since work stalled in 2023. City officials shared a new company has expressed interest in acquiring the townhome portion of the project from Builders Capital, which foreclosed on that section independently from the larger Lake District development. David Smith, principal and director of civil engineering with A2H Engineers Architects Planners, represented the prospective developer, though the buyer has not yet been publicly identified.

Construction on several townhome models had begun before developer Yehuda Netanel filed for bankruptcy, leaving completed structures on the east side of the property unoccupied. While the residential portion has been inactive, The Lake District has continued to do well as a retail destination, home to popular businesses including Starbucks, Chick-fil-A, Villa Castrioti, and others.

The newly approved plan includes a total of 108 townhomes. Proposed revisions focus largely on design enhancements, including converting previously designated passive open space into amenities such as a dog park and pickleball courts. Lakeland staff planner Alex Barthol told board members the updates do not change the approved density or land use. “The adjustments are primarily aesthetic and amenity-driven,” Barthol said during the meeting.

Momentum for the project was further bolstered earlier this week when Lakeland officials approved a revised economic impact plan and an expanded tax increment financing (TIF) district. The updated district includes The Lake District as well as additional undeveloped land to the south. Mayor Josh Roman informed the commission that the plan has already received approval from the Shelby County Economic Development Committee and now awaits final consideration by the Shelby County Board of Commissioners on Monday, Dec. 15.

 

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