Bailey: Has Netanel finally run out of escape routes with The Lake District?
Is this Yehuda Netanel’s final chance to escape the financial pit and salvage his mixed-use development The Lake District? (Patrick Lantrip/The Daily Memphian file)
Clay Bailey
Clay Bailey, a lifelong Memphian, has worked as a reporter in the city four decades. He concentrated on suburban coverage for the bulk of his career, except for a stint as sports editor of The Daily Memphian when it launched in September 2018. He now is suburban editor and also serves as a freelance sports writer for The Associated Press.
And here comes Yehuda Netanel clawing his way up again in an effort to escape from the financial pit and salvage his mixed-use development — The Lake District — in Lakeland.
I would say this is a last-ditch effort by Netanel to make the money work or at least pay some of his bills that have piled up over the past eight years.
But Netenal has seemed to go through a number of setbacks since he announced the grandiose plans for the south side of Interstate 40 east of Canada Road. So, it is hard to say this is the last.
His latest problems came in February when U.S. Bankruptcy Court Judge Jennie D. Latta rejected his plan to try and cover the $51 million in liens against the project.
This week, reporter Michael Waddell wrote that Netanel has another plan to present to the court in hopes of covering his debt to lender TIG Romspen.
“If the money’s actually there, then he’ll pay everybody off and retain the property and the court will dismiss the bankruptcy,” said Lakeland city attorney Will Patterson, who represented the city in the bankruptcy case.
The key part of Patterson’s statement seems to be the first five words:
“If the money’s actually there…”
I don’t have a lot of first-hand knowledge about development or business, but I’m sure you have to front some money to get a project going. I would be a nervous wreck if I woke up in the morning with $51 million bill as my first thought of the day and wondering — given the slow pace of my development — where I was going to get that money.
And Latta must have agreed, rejecting Netanel’s reorganization plan in February to solve his debts.
This project seemed to be more dream than reality since it was unveiled in 2016. Taking the land that once held the Belz Factory Outlet Mall and Lakeland International Speedway to the south and transforming it into a walkable, mixed-use community with housing, businesses and lakes looked wonderful.
But it appears that was too much to handle.
Yes, I have criticized The Lake District for much of the time since it was announced. But the plan never seemed like it was going to reach the look of those artist renderings when it was presented. And it certainly wasn’t going to be built in the timetable initially announced by Netanel.
And two previous ideas presented by Netanel for the property never got started. The Lake District did at least get a bit farther, including the demolition of the old mall site and the opening of some businesses.
But the ongoing delays, false starts, foreclosures and bankruptcies have reach their conclusion. City officials no longer have faith in Netanel. There are questions even if his final grasp at a financial solution will lead to him retaining control of the project. Because he would need to go through more reviews by Lakeland officials who appear to have lost confidence in his plan.
Again.
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