The developer of The Lake District mixed-use development in Lakeland filed bankruptcy on Friday as financial troubles mount for the project.

The Lake District LLC filed a petition to reorganize under Chapter 11 of the federal Bankruptcy Code avoiding the foreclosure on the 160-acre property.

The bankruptcy is the latest in financial questions that have periodically plagued the Lakeland development at Canada Road and Interstate 40.

Lake District developer owes contractors more than $1 million

“The Lake District is exploring financing and equity investment options and expects to file its reorganization plan within 90 days with the court which will detail its plan to restructure its debt and pay its creditors,” developer Yehuda Netanel, head of Gilad Development, said in a prepared statement. “In the interim, The Lake District remains operating in the ordinary course of business as it continues to develop the premier retail, commercial and residential district in Lakeland.”

As part of the project’s financial woes, at least seven contractors and subcontractors who have worked in The Lake District have filed liens against Netanel and his companies. They claim they’re owed $1.3 million plus attorney’s fees.

Lakeland leaders rally around Lake District despite foreclosure news

“I expected this outcome today based on the value he’s created,” Lakeland Mayor Josh Roman said. “I’m hoping in the coming days to see a reorganization payment plans that satisfies all outstanding invoices in full including tenant improvements.

This is not the first time the $450 million project has been in financial trouble. That previous problem arose in 2017, when it also was in foreclosure. Netanel was able to restructure the financing before it went to court.

Lakeland City Manager Michael Walker said officials continue to monitor The Lake District situation and are aware of the steps Netanel took Friday.

“Our hope is that the plan of restructuring submitted (Friday) will enable the developer to meet the financial obligations to the development’s contractors, subcontractors, and tenants,” Walker said, adding that the suburb “is not a party to the financial situation as the development has not yet taken any tax increment financing to use on the related infrastructure costs.”

Netanel bought the old factory outlet mall site in 2006. Two previous plans in 2007 and 2013 never materialized. He announced plans for The Lake District, which not only encompassed the shopping center property but also extended south onto the former Lakeland Raceway site, was announced in 2016.

Netanel has made progress on the project in recent years after many spinning his wheels on the site. Businesses already open in The Lake District include Starbucks, Villa Castioti, Lakeland Wine and Liquors, Frost Bake Shop and more. Big names like Chick-fil-A are on the way. However, other big-name possibilities have pulled out of the project over the past year, including Marshall Steakhouse and Mike Miller’s Let It Fly.

Overall the project will include a variety of housing types set around a central lake with multiple hotels, along with an assortment of retail outlets and restaurants.