Plans to build a 219-lot upscale subdivision off Dawsonville Highway in Gainesville, near the shores of Lake Lanier, has pitted city and county officials in another conflict over “island” properties. The proposed development also leaves residents along Watauga Drive to decide whether they want to be part of Gainesville or remain in unincorporated Hall County. West Ahaluna LLC, a local developer with ties to America’s Home Place, is asking Gainesville to annex about 70 acres in order to proceed with building the subdivision.