Council advances preliminary work on Watermark Terrace downtown project; developers say grant and remediation are needed

Council members on Monday heard a detailed presentation about the Watermark Terrace planned downtown development and voted to instruct city staff and the city attorney to package a preliminary plan for the project’s return to council.

Daniel Stockey, the applicant, described revisions made after planning‑commission review, including moving the sidewalk north on the property to create space for on‑street parking and reconfigured front parking that the presentation said would add 13 total parking spots in the downtown overlay (including on‑site and street parking). "So that adds 7 parking spots... In total, we're adding 13 parking spots in your downtown," Stockey said. He also said the developer is negotiating for an additional 10–15 overflow spaces with a nearby church for construction and overflow use.

The team also emphasized stormwater and brownfield work. Architect Andrea Eelik read a summary of the Oct. 16 coordination with Boss Engineering and the city engineer: the site plan shows roughly 240 linear feet of public storm sewer within the Witherall Street right‑of‑way to connect to Mercer Beach phase‑2 infrastructure, an underground detention basin sized to a 100‑year storm event, and on‑site stormwater quality units designed to treat and detain runoff as recommended by city staff. "Roughly 240 lineal feet of public storm sewer... an underground stormwater detention basin sized to the hundred year storm event..." Eelik said.

Stockey said remediation of contamination from a former gas station on the site is likely to exceed $1 million and that the project will be feasible only if the city helps the developer capture a state EAGLE brownfield grant of up to $1,000,000: "That grant money is not taking money from the city. It's taking money from the state," he said.

Members of the public urged caution on parking and density. Alyssa Dean, a downtown business owner, said she supports the idea but asked council to be certain the proposed changes will prevent summertime parking congestion: "My only concern is the parking... are they enough to allow adequate parking in downtown?" Resident Nate Marco said allowing a third story will increase density and pressure on parking and traffic, and urged continued conversation with residents.

After discussion about timing, consultant reviews and a pending downtown special assessment expected in January, Councilmember Lublin moved and Councilmember Ambrose seconded a directive for the city manager and city attorney to develop a preliminary plan and assemble consultant reviews so the full proposal can return to the council. The motion passed 4–3 (Yes: Locke, Lublin, Ambrose, Fernandez; No: Osenic, Woods, Ackley). City staff and the city attorney said any final CPD agreement could not be drafted until the council has the final site plan and consultant reviews; the instruction was to package and present those materials for future council action.