MEMPHIS, Tenn. — A sprawling mixed-use development in Lakeland is headed for a foreclosure sale this month, but the developer says he’s confident this is just a “bump in the road.”

The Lake District property on Canada Road is set to be auctioned on the steps of the Shelby County courthouse March 24, according to a published notice of foreclosure, to secure a $60 million debt claimed by a partnership in the Cayman Islands.

The $400 million development broke ground in 2020 on 160 acres northeast of Memphis, previously home to an outlet mall and a racetrack. Developers plan retail shops, restaurants, hotels, hundreds of housing units and a 10-acre lake.

A retail portion of the property already is operating, including a Starbucks, Frost Bake Shop, Lake District Wine & Liquor, Villa Castrioti Italian Restaurant and more. A new Chick-fil-A recently was approved for the site and more retail is coming, according to The Lake District website.

Developer Yehuda Netanel said construction on residential townhomes is beginning, and he has no plans to halt development.

He said the The Lake District, which he called the biggest development in Shelby County, went through a similar notice of default filed by a lender six or seven years ago, and this one would ultimately be resolved before the sale happens.

“I do not see a sale happening on the 24th,” Netanel said Monday.

Lakeland Mayor Josh Roman said Monday that he is rooting for Netanel to complete his vision, “but I will support this exciting project regardless of the owner.”

“I can say that The Lake District project has created value for the city in property tax and sales tax revenue,” Roman said on the Lakeland Mayor’s Facebook page. “I support the businesses with my personal discretionary dollars and I’m grateful for their investment in Lakeland.  This is not the first time this developer has been in this position and he successfully navigated a path to where the project is now with many great businesses we enjoy.”

In February, Lakeland officials denied a request to add more multifamily units at The Lake District. Netanel said the rejection could impact his ability to finance portions of the project, according the The Daily Memphian.