GULF SHORES, Ala. — A public hearing held Monday night showed mixed feelings from the community about the leeway given to Pelican Place owners.

The city has been working with Colonial-Langley, trying to entice Publix to build at the Pelican Place shopping center.

However, managing agency Colonial-Langley has been experiencing problems paying back its short-term bond as projected revenue wasn’t reached.

In an effort to save the center, the agency asked the city to give it a lenience on the payback. A $1.5 million line of credit became the solution, allowing Colonial-Langley to pay back the bonds in a longer term with less dollars per payment.

While the $1.5 million isn’t a cost to the city, the city will have to pay the interest accrued on the money.

The city is also allowing $2.1 million in sales tax over the next 10 years to go to Colonial-Langley. That $2.1 million, according to Councilman Jason Dyken, would have been attributed to the bond issue if it hadn't gone back to the property.

Without the leeway allowed by the city, it seemed that Publix would not build the planned grocery store. After a letter of intent was signed two weeks ago to provide a $1.5 million line of credit, some residents turned out to oppose the city’s decision.

“I’m real concerned about the people in this town,” resident Jenny Benintinde said. “We are going to support a lot of our tax dollars into an organization that is not going to pay it back right now and we’ve got other stores here that have supported us.”

Benintinde said opening the Publix would ruin the business at area grocery stores Winn-Dixie and Bruno’s.

“We are stomping on the wrong feet and we are going to hurt the city giving this away,” she said. “I don’t know why we are going to give them so much when they are going to get so much revenue anyway.”

In support of the council was resident and business owner Gary Ellis. He praised the council for its attempt to save Pelican Place and bring in Publix.

“This brings a real asset to the community,” Ellis said. “It allows us to be competitive … for recruitment not only of businesses but residents.”

Doughty said the council saw that need to bring Publix to the area.

“We looked at the options there were and we felt like it was important that Publix came here for a couple of reasons,” Doughty said. “One was to keep our tax dollars in the community.”

She said the council fears dollars are currently being lost to the Publix in Orange Beach. There is also a worry if Publix didn’t build in Gulf Shores they would build in Foley and pull more tax dollars away from the city.

“We felt like if it were here, not only would it keep our tax dollars here, it might bring some back here that were not here originally,” Doughty said.

The city approved a resolution last night to go forth with the plan.