GULF SHORES, Ala. — The city will use a $500,000 BP grant to enhance 24th Avenue in an effort to attract shops and restaurants along the Intracoastal Waterway. 

Money to study new waterway overlay district regulations and zoning was OK’d by the City Council in September of 2011 and the city has been looking for ways to make the area more attractive. The goal is to give visitors another option when they vacation here.

The city also acquired a 10-acre tract of land on the north side of the waterway that could be used in future projects.

“Basically we created that waterway village overlay district and those regulations were created to encourage that area to develop into a compact, pedestrian friendly neighborhood with a waterfront entertainment component along the canal on both sides,” city Director of Planning and Zoning Andy Bauer said.

The grant is part of the Gulf Tourism and Seafood Promotional Fund grants from BP which announced $43.7 million worth of grants in Alabama, Florida, Louisiana and Mississippi.

“We got a $500,000 grant from the BP seafood tourism promotional fund and that grant will go to fund the construction of on-street parking, sidewalks, lighting, landscaping and that type of thing on East 24th Avenue which is in that waterway district,” Bauer said. “It’ll take all that money and probably a little bit more.”

Though Bauer wasn’t at liberty to mention the names, but businesses have already show interest in locating in the area.

“We have interest from at least one restaurant that is more serious than anyone, the most serious inquiry we’ve had at this point,” he said.

The first step toward developing the district will concentrate on parking areas.

“There’s approximately 60 on-street parking spaces that would fund,” Bauer said. “The city has purchased some property over there, one lot and the plan is develop that lot into approximately 200 parking spaces, off-street parking places,” Bauer said. “The mayor said if we are successful it will give us a kind of a secondary tourist district as opposed to the beach so if the beach is knocked out by a hurricane or an oil spill or some other unforeseen occurrence.

“It would complement the beach area and could be a really neat spot if it develops well.”

When the grants were announced Orange Beach got one for the city, one for the Friends of the Arts and one for the Backcountry Trail. Gulf Shores and the Alabama Gulf Coast Chamber of Commerce were also each awarded two of the grants. Gulf Shores and Orange Beach Tourism was awarded one of the grants.

There were 350 applicants for the grants and 110 were awarded. The limit for the grants was $500,000. The Hugh S. Branyon Backcountry Trail received a $226,430 grant. The city of Foley also received some grant money. Of the total amount, $43.7 million was awarded.

In addition to 21 Alabama groups that will split $8.3 million, Louisiana received the largest cut as 43 recipients will get $15.9 million. Florida follows with 33 organizations netting $13.4 million and 13 organizations in Mississippi will get $6 million.

The property on the other side of the canal is near the Bon Secour Village subdivision which the city acquired in a swap with the landowner there.

“That has to do with the vacation of nine unopened rights of way and the Bon Secour Village development and a vacation fee,” Bauer said. “Instead of paying a fee in cash money, the vacation fee that the applicant paid the city was in lieu of cash and he gave the city a 10-acre parcel that abuts the Intercoastal Waterway.

“It’s a significant piece of property, but at this time the city has no plans for it. It was just thought it was a good piece of property to have. We’re vacating 9.89 acres and receiving in return 10 acres of waterfront property along the ICW.”