FAIRHOPE, Ala. - In a series of related actions Monday, the City Council approved the creation of a “tourism resort district,” the annexation of The Colony at the Grand’s 184 acres into the city, the zoning of that development as a tourism resort district and the settlement of a lawsuit brought by a citizen’s group in 2007 challenging a building permit granted to the developers of that project.

The settlement will restrict the developers of The Colony to one additional 100-foot condominium tower. The first eight-story tower was completed in 2008 at Section Street and Old Battles Road.

“I think all parties are pleased that we were, after a long time, able to reach a compromise under which they can develop their property in a manner that my clients find acceptable and get the litigation settled,” said Mobile attorney Ken Watson, who represented the Fairhope-Point Clear Association for Responsible Development in the lawsuit brought against the city and the developers of the project. “They have the flexibility to build a second tower under the settlement with the approvals that were granted by the city (this week).”

Since last fall, the city has been working with developers The Daniel Corp. and Point Clear Partners and the plaintiffs regarding the complex legal arrangement that resulted in this week’s settlement of the case, according to the city’s planning director.

During a public hearing earlier this month, two citizens said the proposed plans would create a private community that was contrary to the city's comprehensive plan. At Monday’s council meeting, Councilman Mike Ford asked for confirmation about the city’s responsibilities regarding the new zoning district located at the Colony location.

“Let me clarify one thing,” Ford said. “This is a gated community and the city will not need to keep up the streets.”

The city’s planning director confirmed that the city would not maintain streets within the development.

Councilwoman Debbie Quinn also questioned the application of the city’s tree protection ordinance at the development.

“I hate that we’re going to let them off the hook on the tree ordinance,” Quinn said.

Planning Director Jonathan Smith said that some areas of the development would be exempt from the ordinance, but that “some zones are subject to the ordinance.”

The city’s planning commission approved the creation of the new tourism resort district in June, which was designed to accommodate the development plan and expansion of the The Colony project.

Only one resident raised questions about the project during a public hearing at that time, at which a representative for The Colony spoke in favor of the rezoning and development requests.

“It doesn’t integrate or invite the community to participate in the (development),” said Gary Gover, who also criticized the proposal earlier this month at the council’s public hearing. Gover said that a number of features of the new project such as private streets and other amenities would service the residents but not the general public.

He also said most of the tourism-related features of the area were across Scenic Highway 98 at the Grand Hotel Marriott Resort, Golf Club and Spa.

The language of a tourism resort district as described in the city’s comprehensive plan states that such districts “must include land uses that are tourist attractions such as significant resort hotels, convention facilities, golf courses, or other outdoor recreation facilities.”