The developer of a major live-work-play community in Woodstock will continue to manage a retail portion of the project under terms of a deal in which the lender foreclosed on its note, the parties announced Wednesday.

Republic Bank of Georgia called its $5.7 million note on about 26,000-square-feet of retail in the main mixed-use building in a development named Woodstock Downtown. Scott Reed, the bank's president, declined to release the dollar value of the settlement.

Hedgewood Commercial Properties will continue to develop, lease and manage the commercial aspects of the community under terms of the deal. Hedgewood Properties, the master developer of Woodstock Downtown, will continue its work with the residential side of the development.

"Having an ongoing relationship with the existing development, management and leasing team is a little unusual, but we felt that this partnership would benefit all concerned," Reed said in a statement. "We believe this award-winning, mixed-use community holds great potential for both financial returns and quality of life."

Woodstock Downtown is a planned community that includes houses, condos and shops. In February, it won an international award from the Congress on New Urbanism for its skill in adding density to a lightly developed downtown.