HUNTERSVILLE, N.C. — Months after Huntersville residents first learned of a proposed resort-type project, the developer behind it has told WCNC Charlotte the project is officially ended and no longer happening.
Jake Palillo, the man in charge of Bi-Part Development, told WCNC Charlotte reporter Austin Walker that the Lagoona Bay/Waterside development will no longer move forward, claiming it wouldn't work out financially with a reduced plan to meet current zoning regulations.
“We decided the Lagoona Bay project at a scaled-back version doesn’t make sense, doesn’t work," Palillo said.
Palillo told WCNC Charlotte there were a few reasons behind the decision. There were a slew of changes due to zoning problems with the city, the city didn't approve a zoning change, and Palillo had to adjust his design. He also had to eliminate key items and hundreds of homes. Further, he said the economy has taken a turn.
“The economy is scaring us, mortgage rates are 7 ½%," Palillo said. "Business loan failures are going out there.”
While he pulled the plug, he said he also lost $800,000.
"What the risk is you are investing the money giving the land owners, a non-refundable deposit to tie their property up," Palillo said.
"As the Lagoona Bay/ Waterside project comes to an end, our love for Huntersville and wanting to make it better doesn't. The Lake Norman area is home to me and my family," Palillo said in part in a statement shared with WCNC Charlotte.
The proposed resort-style development was shared with the public in April 2023. Palillo's vision involved transforming nearly 270 acres of farmland off Sam Furr Road to include a beach-style club with residential and retail space. The idea would have involved building new homes valued between $800,000 and $1.2 million, adding a luxury hotel, and a 10-acre swimming lagoon at the heart of the development. A resort club was part of those plans, with members expected to pay $10,000 upfront and then about $400-500 per month in membership fees.
Opposition to the proposed Lagoona Bay project was present from the start. Residents were worried about the cost of the private club, traffic impacts, and other quality-of-life concerns. Palillo estimated the project would have cost about $800 million and that it would invest $16 million into Huntersville's economy annually.
Palillo has also clashed with two residents, suing them on claims they slandered him and his family.
Huntersville's planning board voted 6-2 in June 2023 to recommend denying the project even after Palillo proposed some changes to Lagoona Bay and said he would commit $3 million to road improvements. In July, town leaders deferred a vote on project approval.
Palillo's full statement follows:
Bi-Part Development is announcing today that they have ended the Lagoona Bay/Waterside project. After a year-long struggle to seek rezoning for one of Huntersville's largest and most unique projects is has come to an end. The project does not financially work with a reduced plan to meet the current zoning.
The financial risk for a project of this size at a time when our Country is at the beginning of an economic crisis is too great. With interest rates for home mortgages at 7.25 to 7.5 and business loans at 8.5 to 9% it's crushing everyone. Many Banks are on the brink of failing because of the office building crisis. Banks are no longer lending for large developments and if they are loaning they require 40% to 50% down. Business loan defaults are raising as well as consumer loans, credit cards, and car loans. You can't take interest rates from 4.5% to 8.5%+ and not hurt everyone.
We need to buckle up because financial analysts are all predicting a rough 2024.
Our passion for Huntersville has not changed. It's still an amazing community full of great people. I think Huntersville is at a point where they need to finally realize they are no longer a small rural community and figure out what they want to be. They need to bring in experts and properly plan for the future. They need to understand North Carolina's growth plan is NO PAIN, NO GAIN, meaning you don't get new roads or schools until you really feel the pain. Allowing social media to create this plan will end poorly for the Town and its residents.
The State needs to allow "IMPACT FEES" and all the problems for growth will be met. Sadly that is in the hands of the Realtor and Builder Lobbyist hands. Yes... they are the ones making you feel the pain.
As the Lagoona Bay/ Waterside project comes to an end, our love for Huntersville and wanting to make it better doesn't. The Lake Norman area is home to me and my family.
TIMELINE | Here's how the Lagoona Bay project developed over the last few months before being called off:
- April 26, 2023 - Huntersville residents hear first pitch about Lagoona Bay at a public meeting
- June 6, 2023 - Two Huntersville residents sued by Jake Palillo, accused of slander, after making comments against the project on Facebook
- June 20, 2023 - Palillo changes the proposal for Lagoona Bay
- June 27, 2023 - Huntersville Planning Board recommends denial of the project
- July 17, 2023 - Town leaders defer vote on Lagoona Bay
- July 27, 2023 - Application for the project withdrawn by Palillo
- Sept. 13, 2023 - Palillo confirms Lagoona Bay will not move forward, ending the project
Contact Austin Walker at awalker@wcnc.com and follow him on Facebook, X and Instagram.