Development

Developer of ill-fated $800M Lake Norman project plans hotel, spa and cottages

Longtime Lake Norman developer Jake Palillo wants a 45-room hotel with a spa and 10 rental cottages in a fast-growing area east of Interstate 77 in Cornelius, town planning documents show.

Palillo made headlines in 2023 with his ill-fated, $800 million Lagoona Bay development off Interstate 77 exit 25 in Huntersville.

The project, east of the interstate on Sam Furr Road, called for a 40-acre “modern lifestyle beach resort” with a 10-acre freshwater lagoon, within a 270-acre residential development. Palillo pulled the plans after intense public opposition.

This architect’s sketch shows the proposed Cornelius Inn project at Sam Furr Road and Mayes Road east of Lake Norman.
This architect’s sketch shows the proposed Cornelius Inn project at Sam Furr Road and Mayes Road east of Lake Norman. SeamonWhiteside

Pool, courtyard, “formal green”

His latest venture would be on 6.3 acres at Mayes Road and Sam Furr Road, the developer’s rezoning application shows.

Rental cottages would flank a “formal green,” according to an architect’s sketch filed with the rezoning request. The development also would include an outdoor pool-courtyard.

A required community meeting is scheduled for 6 p.m. April 7 at Town Hall, 21445 Catawba Ave. No dates have been scheduled for a public hearing and for the Cornelius Planning Board and Cornelius Board of Commissioners to consider the request.

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This story was originally published March 25, 2026 at 5:30 AM.

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Joe Marusak
The Charlotte Observer
Joe Marusak has been a reporter for The Charlotte Observer since 1989 covering the people, municipalities and major news events of the region, and was a news bureau editor for the paper. He currently reports on breaking news. Support my work with a digital subscription
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