GULF SHORES, Ala. — The deal to bring Publix to the Pelican Pointe shopping center, formerly The Pinnacle at Craft Farms, is still uncertain.

As Colonial Properties renegotiates its deal with the city of Gulf Shores, the national grocery chain waits in the wings.

With four parties now tangled in the agreement, which stands between the city and the shopping center and the unexpected drop in the economy, Colonial Properties is requesting amendments to its current lease agreement.

The city leases the $10 million land the center occupies, and the center is asking for relief on the shortfall payments the company agreed to pay.

Last year, Colonial Properties paid $794,000 for unattained money needed to pay its ground lease.

“It’s not been as successful as we had hoped,” Jim Birchall, a city bond attorney, said of the city’s anticipation for its investment.

Colonial Properties originally operated Pelican Pointe solely but brought in Langley, a second party to manage the center.

Now, Colonial Properties is responsible for 15 percent of the property, including land designated for Publix, which plans to open March of next Publix has requested, before signing a lease, that Colonial Properties acquire a stable stance with its finances, therefore pushing the management company to free up some money allowing Publix to operate with less cost by making their rent less.

Colonial Properties is requesting the city allow them a $1.5 million line of credit, broken down in a yearly leeway.

The “city forgiveness” ground rent would map out in rent reductions over the next five years.

Starting this year, Colonial Properties would not pay $400,000 of its rent. In the years 2010 and 2011 a $300,000 relief would be allowed.

Following would be a $200,000 gap for 2012 and 2013. The last year of the agreement, 2014, would call for a $100,000 deduction in rent.

“The idea is given our current economic climate, we’ve come to you and asked for some assistance,” Ken Marshall, a representative for Colonial Properties, said. “We would reimburse you over time following the year 2016. So the net result is the city is essentially being made whole from the $1.5 million contribution that the city would make.”

However, the agreement would guarantee if Colonial Properties could make more than the excused payment, they would pay that extra — reducing the $1.5 million line of credit.

“The original deal that was inked was somewhat unusual,” Councilman Jason Dyken said. He recognized the first agreement was heavily beneficial to city and gave Colonial Properties a short time frame to pay the city back for the issued bond.

“That short schedule has caused difficulties to allow the success for the current project moving forward,” Dyken said. “The second bond issue would rectify the situation. All we are doing is expending the terms of the credit facility rather than giving the developer $1.5 million.”

Before the council will vote on the changes, they have requested a revised agreement, as well as literature with examples portraying the plan.

Mayor pro-tem Carolyn Doughty assured that Mayor Robert Craft will not participate in discussions or votes concerning the issue.