By MaryHelen Swanson

If North Branch wants a big box store, it can't wait three or more years before the I-35 bridge project is completed.

That was the warning the North Branch City Council heard Monday night as the developer of North Branch Marketplace sought a business subsidy in the form of tax abatement, to help in moving the Flink Avenue realignment project forward now.

The developers have Shopko on the line, a retail store in an 80,000 sq. ft. store.

They reminded the councilors this week that in a recent survey, citizens are interested in a big box store, normally considered something like a Target or Wal-Mart or Shopko.

Realignment of Flink is needed before the commercial development can begin.

Realignment was scheduled to be a part of the I-35 bridge project, but a start date on that project is not in sight yet.

City Finance Director Dave Stutelberg, in his memo to the council, said the additional cost to the developers for this road project is estimated to be $1.1 million if they are unable to wait until the bridge project is completed. The actual cost of the project being discussed this week was about $1.7 million.

The developers are asking for a business subsidy in the form of tax abatement of $300,000 from North Branch over a five-year period and another $600,000 from Chisago County.

Of major concern among the councilors was the number of jobs the developer was willing to guarantee.

At first, the number was 322 for the entire 7-parcel commercial area, one that would include a grocery store as well as other smaller stores besides Shopko.

The developer reminded the councilors that exact numbers are not easy to come by.

You can get them two ways, he said, by going to the tenants and asking them, and some just won't do that, or by going to industry averages.

In the end, the council and developer agreed on 296 jobs created in the entire commercial development, with no less than 100 of those jobs being full-time equivalent.

In addition, to approve the business subsidy, the council requested an average wage of $7/hour, and businesses meeting federal wage standards.

The benefits to the city, it was noted, are that the Flink Avenue project will be completed sooner, the city's tax base will be increased and jobs will be created, jobs that Councilor Larry Erickson said are important especially for the young people in town.

The motion to approve the subsidy passed 4-1 with Councilor Theresa Furman opposed.

Furman had expressed concern over the job issue, especially the wage level. She was not satisfied with an "average" of $7/hour.

Now that the city has approved the tax abatement, the county board will move forward on a decision for its tax abatement of $600,000.

If all goes well, the Flink Avenue realignment project could begin in September and be open to traffic by November of this year.

A tax abatement doesn't mean a developer or business escapes paying taxes, but the monies collected do no go into city or county coffers but are used for the specific purpose outlined in the subsidy agreement, in this case, that is the costs of the Flink Ave. project.