A Polk County court has voided Lake Wales’ plan to expand its Community Redevelopment Agency by 2,465 acres, ending a high-stakes fight over future development and tax revenue in the fast-growing area. The proposed expansion covered thousands of planned homes, commercial space and public facilities on largely undeveloped land.
In a Wednesday announcement, Polk County Government said the 10th Judicial Circuit granted the county’s motion for summary judgment, finding the city’s expansion plan invalid and rendering the new CRA area void. County Attorney Randy Mink said the county’s analysis estimated that as much as $155 million in county revenue could have been funneled into the CRA fund during the expansion’s initial 30-year life.
Why Polk County Challenged The Lake Wales CRA Expansion
Community Redevelopment Agencies are local-government entities intended to address slum, blight and economic distress through redevelopment plans. Florida law defines a blighted area using conditions such as deteriorating structures, inadequate infrastructure, unsafe conditions, economic distress and other specified factors.
Polk County commissioners authorized a lawsuit in September 2024, arguing the proposed expansion included mostly vacant property rather than an already blighted area. County records said the plan carried zoning entitlements for roughly 6,100 homes, 400,000 square feet of commercial space, 125,000 square feet of offices and 200,000 square feet of assisted-living and public-facility space, while also raising concerns about the county’s share of future tax revenue.
A Development Plan Built Around Thousands Of Future Units
The expansion area included approximately 1,841.5 acres of undeveloped land, according to the county’s account, along with property approved for major residential, commercial and institutional development. The proposal was expected to capture future increases in property value for projects inside the CRA rather than allowing those tax dollars to flow into the city and county’s general revenue pools.
The fight had been brewing for years. Lake Wales News previously reported that the plan would roughly double the existing CRA footprint and include vacant land in the northwest part of the city, as well as Eagle Ridge Mall, with future housing and commercial development envisioned across the area.
City And County Disagreed Over Whether The Land Was Blighted
At a March 2024 joint meeting, Polk County officials said more than 80% of the proposed expansion area was undeveloped and argued that the plan amounted to creating a new CRA rather than expanding an existing one. The county also said it would have to provide public services to the new development while losing access to a portion of the tax revenue.
Lake Wales officials took the opposite position, saying a city-commission-approved Finding of Necessity study identified blight in the area and that the city’s long-standing CRA had legal protections under Florida’s home-rule framework. The meeting ended with both sides agreeing to mediation, but the dispute ultimately moved into court, according to the joint meeting minutes.
The Ruling Lands As Lake Wales Pursues Other CRA Projects
The court decision comes as Lake Wales continues using its existing CRA for downtown redevelopment. City minutes from June show the agency approved an interim agreement for early work on the historic Walesbilt Hotel, including up to $2 million in preconstruction funding and a maximum CRA contribution of $17.5 million toward the broader restoration project.
For now, the proposed 2,465-acre expansion is off the table in its current form. The county announcement did not outline whether Lake Wales plans to appeal or pursue a revised expansion proposal.
