The Lake District foreclosure sale set for April 30
“As mayor, I am not be supportive of his (Yehuda Netanel) acquiring or reacquiring the property (The Lake District) and would not support any new development contract for any entity that he is involved with,” Lakeland Mayor Josh Roman said in an official statement. (Michael Waddell/The Daily Memphian file)
Ownership of The Lake District mixed-use project in Lakeland will be up for highest bidder before the end of the month.
The first of three required notices for the foreclosure sale was submitted by lender TIG Rompsen on Friday, April 5.
A live, open auction will take place at noon on April 30 at the southwest corner of the Shelby County Courthouse, according to a notice in the Memphis Daily News.
Developer Yehuda Netanel did not appeal Judge Jennie D. Latta’s decision in The Lake District’s Chapter 11 bankruptcy case, meaning lender TIG Rompsen could proceed with a foreclosure sale.
Netanel has been trying to get back on the project at Interstate 40 and Canada Road.
Last week, Lakeland Mayor Josh Roman announced during an Industrial Development Board meeting that he had been contacted with information regarding Netanel securing a loan commitment letter that could help him “take The Lake District back.”
When contacted earlier this week, Netanel would not comment.
The City of Lakeland had formally terminated the development agreement with Netanel and The Lake District LLC in mid-March due to a breach of their agreement.
Developer Yehuda Netanel watches as concrete trucks bring in fresh concrete to pour foundations on March 27, 2020. He did not appeal Judge Jennie D. Latta’s decision in The Lake District’s Chapter 11 bankruptcy case. (Jim Weber/The Daily Memphian file)
During the Lakeland Board of Commissioners meeting on Thursday, April 4, Roman made an official statement on the matter.
“I’m sure many of you saw today’s Daily Memphian article about the upcoming foreclosure sale of The Lake District property, and y’all may have heard rumors about Mr. Netanel repurchasing the property,” he said. “As mayor, I am not supportive of his acquiring or reacquiring the property and would not support any new development contract for any entity that he is involved with. I’m encouraged that we could have new ownership shortly and look forward to discussing the project with whomever that is.”
Netanel unveiled his vision for the complete redevelopment of the old Belz Factory Outlet Mall site in April 2016, touting a variety of housing, commercial businesses, a lake and amenities. But over time, the project suffered a number of financial setbacks, including COVID.
Activity has been limited at the 160-acre project over the past year since the developer filed for bankruptcy last March. A Chick-fil-A did open last month, and Wayback Burgers is expected to open soon.
“I’ve been the most outspoken advocate for The Lake District,” Commissioner Wesley Wright said. “I’ve believed in the idea and the future of Lakeland benefiting from its success. In whatever shape or form the developer takes, I hope for its expeditious completion.”
The foreclosure will be the second for the project this year.
In January, Lakeland City Manager Michael Walker announced the townhomes in The Lake District were being sold to new ownership.
Builders Capital, the lender for the 109-townhome section dubbed The Willows at the Lake, took back the property foreclosing on Jan. 3.
Machine Investment Group of New York is expected to buy the section and finish the project.
Topics
The Lake District Yehuda Netanel Lakeland Lakeland Mayor Josh Roman Commissioner Wesley WrightMichael Waddell
Michael Waddell is a native Memphian with more than 20 years of professional writing and editorial experience, working most recently with The Daily News and High Ground News.
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