iLand Development Group is once again trying to revive its $1 billion Leander Springs lagoon project with an updated development plan.
The Austin-based developer submitted a new proposal for its long-delayed $1 billion lagoon project less than six months after amendments to its public utility district agreement were unanimously rejected by Leander City Council, the Austin Business Journal reported.
The new Leander Springs proposal features a reduced apartment count and modifications to design and phasing requirements for the 78-acre site at the intersection of FM 2243 and the 183A frontage road. A vote date hasn’t been set.
Initially pitched in 2020, iLand Development proposed 1,600 apartments, a hotel, a convention center, 1 million square feet of retail space and a four-acre lagoon for the site. Since then, the developer has missed construction deadlines, allowed liens to pile up and drawn criticism from Leander City Council and the community, according to the publication.
Per the developer’s Chapter 380 agreement with the city, iLand would get $22 million in tax incentives in exchange for completing the lagoon portion of the development by Dec. 31, 2023. That incentive package was terminated after the developer tapped the federal EB-5 program, which trades permanent resident status to foreign investors and their families in exchange for investment in commercial enterprises. In addition, over a dozen liens have been filed against iLand Development by construction companies contracted to build the area, totaling around $3 million.
City officials have been vocal about concerns regarding the timeline of the project and water usage. According to a permit filed with the Texas Commission on Environmental Quality, the project would discharge about 1.4 million gallons of water per day.
“We don’t have enough water right now,” Commissioner Laura Lantrip said last summer.
Leander mayor Christine DeLisle chimed in as well, stating, “If they can’t pull it off, there is a potential the city ends up with a giant hole.”
It’s not the first time iLand has adjusted its proposal. The developer tried to reboot the project in 2025 with similar adjustments to the development plan. Without approval from the city, the development is dead in the water.
In a statement from September 2025, iLand CEO Andrey Derevianko reaffirmed his commitment to making the development ship-shape, saying at the time the firm would commit to advanced water management and address all city feedback and concerns.
— Hunter Cooke
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