Will Isern is doing a generally good job covering this. Unfortunately, there is little legal news from the City, only the political angle, which makes better copy.
Initial story, slightly edited when City responded:
Troy Moon's editorial, supporting the cross:
Update, where the City rejects the idea of removing the cross:
**To find the HUGE (and ignorant, mostly legally irrelevant) social media backlash in social media, find these articles on the Pensacola News Journal's Facebook page.
WEAR TV3 also did a story, much less detailed, but equally enraging to some locals (who like to mix church and state to their advantage) on social media.