Update: I found this is caused by the spawn protection in the server.properties file. If you disable this then everything works as it should!

So I was going to create a Minecraft server for me and my friends to play on. The server started up and loaded the world just fine. Once I joined the world the server had loaded I noticed that a short distance away from the spawn the world was all glitched out and would not load. I am not sure what could be causing this so I hope it gets fixed in the next snapshot.