SOUTH PORTLAND — The developer of a proposed neighborhood market at Willard Square has withdrawn his site plan application, telling city officials that the financing has fallen through.

The news comes just three days after the City Council gave preliminary approval to a 95-day moratorium on development in the Willard Square village-commercial zone. The idea of a moratorium was prompted by neighbors who objected to the market proposal, and called on the city to implement design standards before allowing construction.

Planning director Tex Haeuser informed other city officials about the decision today.

Glenn Perry and business partner Ian Hayward submitted a site plan application May 2 for a small grocery on a Pillsbury Street lot owned by Perry. They initially called the store Mr. Delicious, but changed that to Ebo’s Market. The application stirred up controversy in the neighborhood, which is a short walk from an elementary school and the popular Willard Beach. About 200 people signed a petition calling for a moratorium, expressing concern about traffic, parking and the impact on public safety.

It was not immediately clear whether the financing problems for Perry were related to the neighborhood dust-up and the moratorium proposal, although Perry said at a recent council meeting that he could live with a limited moratorium. Perry could not be reached for comment today afternoon.

Councilor Maxine Beecher said the city needs to stick with the current plan to develop design standards for the zone. Ideally, the standards would be ready for adoption by the council in August, Beecher said.

“We need to finish this job that didn’t get finished. It is not about that one business,” Beecher said, adding that she hopes Perry gets financing and brings the project back to life.

Zoning amendments in 2006 changed the classification at Willard Square to ”village commercial.” The idea was to promote a blend of residences and as many as 10 community-oriented businesses. The four businesses operating in the square are Scratch Bakery, Willard Scoops ice cream shop, Bathra’s Market and Townsend Realty. But unlike the nearby Knightville village commercial zone, design standards were never drafted and adopted for Willard Square. Those standards, such as architectural styles and lighting preferences, help give an area a uniform look and feel.