Developer withdraws Watermark Terrace lakefront proposal; council receives and files letter

Watermark Terrace LLC formally withdrew its site plan review application for a proposed mixed‑use development on the city’s lakefront, and the Walled Lake City Council voted to receive and file the developer’s withdrawal.

The withdrawal letter, read into the record, says in part: “We regret to inform you that Watermark Terrace LLC is formally withdrawing our site plan review application for the proposed mixed use development at 323 East Wahlberg Drive. At this time, we have decided to invest our time and money in a different market and do not see a way forward with this administration.” The letter was signed by Daniel Stokkeev on behalf of Watermark Terrace LLC and Momenta.

The developer’s representative told the council the project could not be reworked to gain sufficient support. Councilmember Lublin moved to receive and file the withdrawal; the motion passed on a roll call with all present voting yes. Mayor Ackley was recorded as absent.

Council members and the administration said the decision reflected substantive concerns raised during review, including parking and building height; the city manager and other officials described negotiations and said the developer concluded it could not secure the approvals it sought under the current council’s direction.

City staff will close the application file and process any escrow refunds requested by the developer, as noted in the withdrawal letter. The developer requested release of any remaining escrow funds and provided a mailing address for the refund.

The withdrawal leaves the property at 323 East Wahlberg/Walbig Drive without an active site plan application; councilmembers and several residents during public comment reiterated interest in resolving downtown parking and infrastructure issues before new development moves forward.