GULF SHORES, Ala. — The city of Gulf Shores passed two resolutions Monday, all in the hopes to enable success at Pelican Pointe.

Formally known as The Pinnacle at Craft Farms, the major retail center houses Target, Books-A-Million and soon Publix.

But the failing economy has created troubles for all and developer of the project, Langley-Colonial, LLC, is feeling it too.

To ease financial stress for the corporation, the city approved a letter of intent to renegotiate their partnership agreement.

Councilman Jason Dyken, who headed the committee handling the issue, said the original plan was not feasible for success.

“There was a very short time frame that the bonds would be paid back,” Dyken said. “Colonial-Langley came to the city to see if we could restructure that.”

Dyken said the bond issue couldn’t be altered; instead, the city is giving a loan of $1.5 million to them as a line of credit.

Dyken clarified the loan would not cost the city the $1.5 million. However, the city will incur the finance charges. Colonial-Langley would be required to pay back the money.

Mayor pro tem Carolyn Doughty said the plan will cost the city $400,000 this year and $90,000 next year through a line of credit.

Pelican Pointe will also be able to promote themselves better as the city agreed to give them a master signage plan, which zoning administrator Andy Bauer described as a PUD for signs.

With the plan, the center will be able to add five directional signs, a new 150 square foot pylon sign on Highway 59 identifying the whole development, and a sign for Publix, which has been holding off until these resolutions were approved.

Including the pre-existing monument signs, the center is allowed 644 square feet of total signage. Pelican Pointe must remove the other current signs within the next 58 days.

Both resolutions are aimed to keep the shopping center alive, as well as create incentives to bring in the 40,000 square foot Publix.

“We did not want to see a shopping center go dark,” Doughty said.

Dyken said future plans are to share sales tax with the national grocery store chain. The city hopes the grocery store will bring in more revenue and more tax to Gulf Shores; an expected $20 million will be generated in the future.

He did say the downside to Publix opening here is its competition with other grocers, and the unintentional decrease in their sales.

“The sales tax generated from (Publix) may not be all new sales tax,” Dyken said. “It may be sales tax that would have been previously captured by other retailers in our city.”

As of now, the letter of intent is a non-binding agreement. The City Council will vote in an upcoming meeting to either confirm or void the proposed agreement.