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By MaryHelen Swanson
 “I don’t know if there is such a thing as a perfect brand,” said North Branch Economic Development Authority Director Tom Willett, as the three-person council contemplated approval of the city’s new slogan for the ESSBY Business Park Monday night.
In the end, however, the trio of Mayor Gloria Karsky, Councilor Kathy Blomquist and Councilor Theresa Furman made a decision; they would accept the EDA’s choice of “Advance to North Branch.”
In the past month, slogan ideas were proposed to members of the EDA, an EDA subcommittee and EDA staff. Fifteen people voted on their choices. Results were mixed, said Willett.
The choices that received the most votes were ultimately deemed too long by EDA staff, so staff worked with the design consultant to develop a new design.
At its March 7 meeting, the EDA voted to recommended the Advance to North Branch slogan and new design.
Because there were only three council members at the meeting Monday, Mayor Karsky asked if the decision could be delayed.
Willett, said it could, but the launching of the marketing plan for the ESSBY project could not proceed until the “branding” was set.
So the council voted.
Willett had explained to the EDA board when they voted on ideas, that a brand should do most, if not all, of the following:
•Focus on the customer’s (business prospects) needs, desires, and aspirations;
• Set North Branch apart and above its competitors (metro area, Cambridge, etc.);
• Be of interest to the city’s target audience (business prospects and or their broker);
• Frame the city’s competitive advantage;
• Distinguish the city’s brand from its competition (Cambridge: Minnesota’s Opportunity Community, Wright County: Wright Next to the Metro);
• Be relevant, memorable and differentiating;
• Create and sustain dialogue with the city’s customers (business prospects); and
• Be adoptable, something the city can build upon.
City Administrator Bridgitte Konrad also encouraged the council to adopt a brand this week. She noted that this is the time of year businesses are out looking for a place. The sooner the better, she said, regarding adoption of a brand.
Feeling it was crucial to get going on the marketing plan, Councilor Furman made the motion and Blomquist supported it.
In other action this week, the council:
• Unanimously approved a modification in the SAC and Trunk fee interest rate policy.
On Jan. 14, the council agreed to allow these fees to be paid over five years to create a “business friendly” approach to development in North Branch.
At that time the council agreed the interest rate would be 2 percent over the city’s average rate of return for the previous year.
But, Willett noted that at the time, the rate was unknown. The finance department later determined the rate of return for its investments in 2007 was 4.72 percent. This would have resulted in an interest rate for the SAC and trunk fees payment at 6.72 percent.
Willett noted that what has occurred in 2008 is a series of rate cuts by the Federal Reserve that could result in an investment rate of return in 2008 of less than 3 percent. If this occurs, the loan rate for SAC and trunk fees would be around 5 percent in 2009.
The issue for 2008 is that an interest rate of 6.72 percent is higher than the prime lending rate for banks which currently is 6 percent fixed for five years. With a rate nearly 3/4 percent higher than the bank, the city could not be viewed as being business friendly, Willett said.
To reflect this information, the policy that the city established to require 15 percent down (on the fees) with balance of payments spread out over five years at the previous yearly interest rate, was changed to read “with an interest rate 2 percent over the city’s average rate of return unless that rate exceeds bank prime lending rate as determined by the city’s official depository bank, in which case the rate would be set at 1 percent below prime as long as the resulting rate is above the most recent bonding rate for SAC/WAC and trunk projects.
The council had been encouraged by an audience member who asked, “do you want to make it easy to bring business here or do you want to make money?”
As long as the policy was only for commercial and industrial development, Councilor Furman agreed to the change.
There will be a council work session on April 3, and the next regular meeting is April 14.
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