Leander Springs Hits New Roadblock as Zoning Commission Rejects Updated Plans

UPDATED - July 28, 2025

Just weeks after iLand Development Group renewed efforts to advance the long-stalled Leander Springs development, the project has encountered another setback. On July 24, Leander’s Planning and Zoning Commission voted 4–1 to recommend denying the developer’s request to update the planned unit development (PUD) agreement for the 78-acre site near FM 2243 and U.S. 183A.

The changes would allow fewer apartments, 1,200 instead of the originally approved 1,600 and reduce building heights at certain edges of the site. However, some commissioners and nearby residents raised concerns about water use, the loss of green space, and long-term feasibility. The proposal now heads to City Council for a vote on August 21. It will require two approvals to move forward.

One of the most significant changes involves the lagoon centerpiece. The revised plan removes all reference to Crystal Lagoons US Corp. and rebrands the feature simply as “Lagoon.” It also eliminates a completion deadline and classifies the lagoon as “non-essential” in terms of water usage, raising red flags among city leaders.

During the meeting, iLand COO Pete Conklin said the lagoon would be filled using city water initially but maintained through on-site well water. He described planned features such as swimming, kayaking, and obstacle courses but admitted he was not fully prepared to present all the technical details, a moment Planning and Zoning Chair James Oliver called “disappointing.”

Despite the vote, iLand CEO Andrey Derevianko expressed confidence the City Council will approve the amendments. He said the project has secured EB-5 immigration investment approval and has access to a $200 million line of credit, believed to be backed by Austin-based Stallion Funding. If approved, the first phase would include a clubhouse, 300 apartments, retail space, and the lagoon, with construction starting by year’s end.

“If the Council doesn’t approve it, we won’t have any choice but to take the legal route,” Derevianko said.

June 24, 2025

The long-delayed Leander Springs development is once again moving through the city approval process. iLand Development Group, the Austin-based firm behind the project, confirmed it has submitted updated plans and remains committed to bringing the 78-acre, lagoon-centered community to life despite years of setbacks.

Revised amendments to the development agreement and planned unit development (PUD) have been reviewed by city staff. The project is tentatively scheduled for the July 24 Planning and Zoning Commission meeting and two City Council hearings in September.

First announced in 2021, the development promised 1,600 residential units, a hotel, retail space, and a man-made lagoon near FM 2243 and U.S. 183A. But construction never started. In 2023, the city canceled a $22 million incentive agreement after the developer missed initial deadlines. Contractor liens totaling $3 million were also filed but have since been resolved, according to officials.

City staff said the original PUD had expired and needed to be updated for the project to move forward.

iLand CEO Andrey Derevianko said the delays stemmed from a complex permitting process. If no new obstacles arise, the company hopes to break ground by late 2025. The revised plans outline public spaces, a hotel and conference center, and the central lagoon. An economic study cited by the developer estimates over 2,600 jobs and $2.1 billion in long-term business impact.

Leander Mayor Christine DeLisle, previously critical of the project’s water use, said the city is better prepared to support it now. While she expressed skepticism about reviving the original incentive deal, she didn’t rule out future collaboration. “If the proposal fits the city, it’s something we could support,” she said. “If not, we could be left with a giant hole.”