By MaryHelen Swanson

Things might be moving a little slower in the development of a big box store in North Branch.

Due to changes in the global financial market, North Branch Marketplace, LLC was not prepared to complete a developer's agreement last week with the city of North Branch.

According to Anthony Gleekel, attorney for the developers, the company's lender, Guaranty Bank, recently advised the company of changes in the structure of its loan due to those financial market conditions.

He said in a letter to city staff, "Historically, loans such as the one the company negotiated with Guaranty Bank, are sold to a Wall Street conduit, pension fund or other institution. Due to the collapse of the subprime market, Guaranty Bank and other lenders are fearful that funds will not be available by such institutions to purchase loans such as the company's loan."

While Marketplace was still anticipating signing with ShopKo, the chain department store that has been noted coming into the commercial development across the freeway, the developer's attorney offered some alternates to the progress on Flink Ave. project and the signing of the developer's agreement.

Timing at this point is crucial for things to fall into place regarding the development and road project.

Gleekel had talked with staff suggesting a delay of the Flink Ave. project until next spring which could result in an assessment to Marketplace greater than $1.7 million.

The city council had anticipated awarding the Flink Avenue project that night, but due to the new information from the Marketplace front agreed, at the suggestion of City Attorney Tom Miller, to table any action.

The issue will be addressed at the Sept. 10 council meeting.

The council did agree to enter into an agreement with the Minnesota Department of Transportation on a Flink Avenue issue regarding a temporary signal while the project is underway.

The road project involves realigning Flink Ave. until it connects with Falcon Ave.

Stoplights will be installed at this intersection and changes will be made at the current Flink Ave. intersection.

In other business, the council:

• Agreed to have an appraisal done on 61 acres that could be a part of a Harder Park expansion.

• Agreed to the land sale of 3.29 acres to Topline Automotive in the ESSBY Business Park. They will build a 22,000 sq. ft. building and have 22 employees under the JOBZ program. The land was sold to them for $127,548. Part of this land is in the Engdahl land purchase and part in the land purchased by the county. Bonds that applied to each of these properties will be paid from the proceeds of the sale of the land. The actual purchase was by the Lindman Properties, LLC, which owns Topline.

• Agreed to have a promotional video prepared by CGI. It is expected that advertising on the city's Web site will be used to pay for the video.

• Awarded Wells Fargo Brokerage Services the bond sale for Fletcher and Goodview projects in ESSBY. Financial consultant Kathy Aho said brokerage services are a little nervous now with the subprime affecting the market. The amount of the bond was $1,715,000. Wells Fargo offered a true interest rate of 4.546 percent.

• Heard a request from Councilor Larry Erickson that he would like to see the sign ordinance revisited.

• Heard from a resident about his displeasure with the idea of charging for use of a city park. He especially was concerned about a situation that occurred this summer when people were not allowed to bring in their own food or drink during a ball tournament. He was encouraged to attend the Sept. 20 worksession during which time this issue would be discussed.

• After much discussion, approved a final plat of three lots for Craig Johnson in Greenwood Estates. Johnson has been trying to get a plat approved for nearly a year. He told the council that while they have discussed what the city staff wants, they have never discussed or had a chance to vote in what he wants to do. The vote to approve a 3-lot plat was 4-1 with Erickson opposed.