BATC Digest | Jul-Sep 2015

2015 LEGISLATIVE SESSION

REVIEW

INSIDE JULY–SEPTEMBER 2015

BUYING & SELLING AT BATC BRS

WITH “BEST BOOTH THEME” WINNERS FOCALPOINT FLOORING CABINETS & DESIGN

PRSRT STD U.S. POSTAGE PAID PERMIT #27734 TWIN CITIES, MN

ENDORSED PROGRAM

NAHB members can get up to a

$1,000 Private Offer

toward the purchase or lease of most new GM vehicles.

Learn more at gmfleet.com/nahb.

Enjoy peace of mind when building your new home Watching your new home take shape can be a rewarding experience. At the same time, in the time it takes to build a home, interest rates can bounce up and down. This market fluctuation can complicate your decisions during the construction process. Knowing that your interest rate is secured means you can confidently proceed.

Our exclusive Builder BestÂŽ Extended Rate Lock program was designed with new construction buyers in mind. It provides protection from interest rate fluctuations while your new home is being built.

Contact your Twin Cities dedicated new construction team of branch managers.

Anoka Jeff Blackledge NMLSR ID 351420 612-667-0028

Forest Lake Michael J Kohn NMLSR ID 400763 651-205-6641

Blaine Stefani Havel NMLSR ID 400890 763-755-0012

Hastings Ryan Neil Foster NMLSR ID 294064 651-319-6312

Bloomington Lance E. Smith NMLSR ID 402057 612-316-4488

Maple Grove Brian Jay Carlson NMLSR ID 524833 763-315-1505

Dakota and Scott County/Burnsville Timothy Philip Hufnagle NMLSR ID 461751 612-667-3147

Minneapolis Brian C. Jones NMLSR ID 1114017 612-667-3332

Minnetonka Roland A. Buller NMLSR ID 384994 612-667-1011

Information is accurate as of date of printing and is subject to change without notice. Wells Fargo Home Mortgage is a division of Wells Fargo Bank, N.A. Š 2014 Wells Fargo Bank, N.A. All rights reserved. NMLSR ID 399801. AS1055832 Expires 9/2015

Executive Director David Siegel Editor & Director of Marketing/Communications Wendy Danks Creative Services Director Dawnita Parmely Communications Coordinator Katy Baar Creative Services Coordinator Casey Scozzari Graphic Designer/Partner Fulfillment Laurie Spartz Graphic Designer Hannah Morford

Advertising Sales Kori Meewes Brad Meewes

Marketing & Events Manager Nicole Coon

Accounting Assistant Cheryl Anderson

Membership Director Deb Earl

BATC Foundation Executive Director Perri Graham Controller Janice Meyer Director of Public Policy James Vagle Graphics Assistant Derek Wilkinson Marketing, Education & MN Green Path Manager Tom Gavaras

Office Manager Heather Litchy Public Policy Assistant Mary Schweich

Immediate Past President Shawn Nelson New Spaces

NAHB National Directors Committee Craig Plekkenpol Plekkenpol Builders, Inc.

Builder Vice President Meg Jaeger Mega Homes, Inc.

Parade of HomesSM Committee Jim Kuiken Accent Homes, Inc.

Associate Vice President Todd Polifka Brush Masters Secretary Jason McCarty Westwood Professional Services, Inc. Past President Advisory Council Lowell Pratt Pratt Homes

Large Volume Builders Bill Burgess Lennar Small Volume Builders Anthony Wiener Cardinal Homesbuilders, Inc. Public Policy John Rask Hans Hagen Homes, Inc. BATC Remodelerssm Andy Michels Bob Michels Construction, Inc. At-Large Member Charlie Bradburn, Automated Building Components, Millwork Division At-Large Member Tami Erickson Country Joe Homes

The BATC DIGEST magazine is the official publication of the Builders Association of the Twin Cities (BATC). The BATC DIGEST is published and distributed four times per year to its members and others associated with the building industry. Neither the advertisers, nor BATC, will be responsible or liable for misinformation, misprints, typographical errors, etc., herein contained.

For advertising rates, resource file or address change information, contact BATC. Suggestions, ideas and letters are welcome. If circumstances require, BATC reserves the right to increase or decrease the number of BATC DIGEST issues published on an annual basis.

Builders Association of the Twin Cities (BATC) 2960 Centre Pointe Drive Roseville, MN 55113-1182 Phone: 651-697-1954 • batc.org Fax: 651-697-7599 • paradeofhomes.org

2

BATC Digest

FocalPoint Flooring Cabinets & Design, winner “Best Theme” for their camping inspired booth at the 2015 Builders & Remodelers Show, April 2 at the Minneapolis Convention Center.

6 A Word From Our President

Membership Committee Brian Robbins Pella Windows & Doors

July–September 2015

16

BRS Recap

on the cover

4 Letter From the EO

President Chris Contreras Ryland Homes

13

Top 5 Remodelers

contents

Receptionist Emily Petermann

board of directors

Past Associate Vice President Daryl Doehr Marvin Windows and Doors

12

Remodeling How and Why You do Your Marketing

Press Secretary Katie Eldred

executive board

Treasurer Bob Michels Bob Michels Construction, Inc.

10 Events Calendar 12 Now Might Be a Good Time to Remodel How and Why You Do Your Marketing 13 Top 5 Remodelers 16 Builders & Remodelers Show Recap

38 Better Business Bureau: Reviews vs. Complaints 40 BATC Foundation 48 Membership 51 BATC Bash (Member Appreciation Party) 52 BATC & BATC Foundation Golf Tournaments 54 Endorsed Programs

20 The BIG Night

55 2015 BATC Elite Sponsors

24 Parade of Homes & Remodelers Showcase

56 3rd Annual BATC Clay Shoot

26 Artisan Home Tour 30 Eggs & Economics: Mid-Year Economic Outlook Breakfast 34 Building Industry Gala (BIG) Night - Awards Entry Information 36 BATC Leadership Institute

58 Member News

PHOTO GALLERIES Builders & Remodelers Show / 18 Artisan Home Tour Orientation / 28 KARE 11 Egg Hunt / 61

Advertising Directory ABC Supply Co., Inc.. . . . . . . . . . . . . . . . . 39 American Mortgage & Equity Consultants, Inc.. . . . . . . . . . . . . . . . . 57 Anchor Block Company. . . . . . . . . . . . . . 43 Arrow Building Center. . . . . . . . . . . . . . . . 27 Associated Bank. . . . . . . . . . . . . . . . . . . . 61 Brock White Company. . . . . . . . . . . . . . . 57 Brush Masters. . . . . . . . . . . . . . . . . . . 13, 17 CenterPoint Energy. . . . . . . . . . . . . . . . 7, 29 Central Marble Productis, Inc.. . . . . . . . . 54 Cityscape Painting Contractors, Inc.. . . . . 32 Corporate 4 Insurance Agency Inc.. . . . . 43 Erosion Works. . . . . . . . . . . . . . . . . . . . . . 23 Excelsior Capital, LLC. . . . . . . . . . . . . . . . . 3 Ferguson Kitchen, Bath & Lighting Gallery. 8 Galaxy Sales, Inc. . . . . . . . . . . . . . . . . . . . 21 GM Elite Dealers. . . . . . . . inside front cover Heating & Cooling Two Inc. . . . . . . . . . . . 29 Hedberg Landscape & Masonry Supplies. 33 Icynene Corp. . . . . . . . . . . . . . . . . . . . . . . 47 IDC-Automatic. . . . . . . . . . . . . . . . . . . . . . 11 In-Focus Systems. . . . . . . inside back cover James Hardie Building Products. . . . . . . . 59 JL Schwieters Bldg. Supply/Const., Inc.. . 63

Klein Bank. . . . . . . . . . . . . . . . . . . . . . . . . 32 Lake Elmo Bank . . . . . . . . . . . . . . . . . . . . 37 Lampert Lumber. . . . . . . . . . . . . . . . . . . . 41 Light’N Up!. . . . . . . . . . . . . . . . . . . . . . . . 29 LP Building Products. . . . . . . . . . . . . . . . . 46 Lyman Lumber Co./ABC Millwork . . . . . . 31 Marvin Windows and Doors. . . . . . . . . . . . 5 Molin Concrete Products Company. . . . . 57 NAHB . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 Pella Windows & Doors - Twin Cities, Inc..9 ProBuild. . . . . . . . . . . . . . . . . . . . . . . . . . . 49 Residential Science Resources, LLC . . . . 46 Residential Warranty Company, LLC. . . . 60 Royal Building Products . . . . . . . . . . . . . . 15 Scherer Bros. Lumber Co. . . . . . . . . . . . . 45 Schwieters Companies, Inc.. . . . . . . . . 9, 25 Shaw/Stewart Lumber Co.. . . . . . . . . . . . 35 Synergy Products, LLC. . . . . 37, back cover Thermo-Tech Windows, Inc.. . . . . . . . . . . 64 Uponor. . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Wausau Supply. . . . . . . . . . . . . . . . . . . . . 53 Wells Fargo Home Mortgage. . . . . . . . . . . 1 Xcel Energy, MN Gas Business Dev.. . . . 35

letter from the eo

Be a Leader of Consequence I recently heard an interview with Bill McDermot, CEO of software giant SAP, in which he used the term Leader of Consequence. What a wonderful phrase and even more powerful goal – to become a leader of consequence.

It perfectly describes BATC’s goal in presenting our firstever Leadership Institute beginning this fall. A cohort of no more than 15 developing leaders in BATC member companies will meet one evening a month for a year in professionally facilitated discussion to delve deeply into CEO-level leadership skills. Those sessions will be supplemented by presentations from top-level executives in construction companies. I can promise you that this is a rare opportunity for a select few.

The only way I know how to do this is to keep all involved focused on the end goal.

Material about the BATC Leadership Institute should have arrived in your mailbox by now, but if you missed it, details are online at batc.org. I hope you’ll consider attending yourself, or sending an up-and-coming leader from your business.

Prune and Focus. Related to the point above, one of the most difficult aspects of leadership for me is to narrow our activities to those that matter most. We call it prune and focus, and it’s at the core of business success.

Developing BATC’s leadership institute got me thinking about my tips for becoming a Leader of Consequence.

Here are a few nuggets I’ve gained as Executive Director of multiple associations.

Passion really matters. If you truly believe in your cause, and you demonstrate that passion, it’s powerful and contagious. Members often kid me when I say that I love my job, but I truly do. That passion for a job, and the belief that you are contributing to the greater good, are keys to successful leadership.

Surround yourself with really talented people.

I have had the good fortune to work with brilliant, dedicated and talented staff and great volunteers. Great leaders want to be challenged by their staff and they want real discussion.

Disagreement is OK. In fact, disagreement is necessary to reach greater heights. The tricky part is to build a culture in which disagreement is welcomed and people feel safe, while all participants are respected and honored.

Ideas are not the issue, execution is. In every association I’ve worked, we’ve generally had an abundance of ideas. Great ideas are necessary and welcomed, but perhaps even more powerful is a focus on execution.

Whatever we choose to do, we must get it done and do it with quality and in a manner that serves others.

BATC Digest

July–September 2015

BATC Executive Director @davidsiegel1 david@batc.org

Shoot Straight with Your Team. It’s not easy to deliver bad news. Conducting a difficult employee review is uncomfortable, for example. But I’ve learned that people just want to know where they stand. Give them the news with respect and honor, but shoot straight.

Don’t dance. They can deal with it. More than that, they want to know.

Operate with a sense of urgency. Set deadlines.

Establish timetables. Get it done. The world moves fast these days, and successful leaders know that their business must operate with a sense of urgency to stay winners.

BATC has a strategic goal to become the leading voice for builders and remodelers, and our Leadership Institute is part of fulfilling that goal. I hope we have enough interest to offer this unique coaching opportunity every year. But first, we’ve got to successfully launch year one. If you’re interested, contact Tom Gavaras in our office and get the application form. Operate with urgency – do it today.

BATC has a strategic goal to become the leading voice for builders and remodelers, and our Leadership Institute is part of fulfilling that goal.

4

David Siegel

My tips for becoming a Leader of Consequence.

OUR ATTENTION TO DETAIL G O E S W E L L B E Y O N D O U R P R O D U C T.

Our knowledgeable dealers provide personal attention and individual solutions for each of your projects, because we know that every job counts.

Contact your local Marvin dealer today.

M A RV I N D E S I G N G A L L E RY

by Shaw/Stewart 645 Johnson St. NE Minneapolis, MN 55413 612-331-3128 MDGbySS.com Arrow Building Center 15 Locations Minnesota & Wisconsin abc-clc.com ABC Millwork Chanhassen, MN 55317 952-937-9060 ABCMillwork.com Custom Millwork, Inc. 2298 N 2nd St. North Saint Paul, MN 55109 651-770-2356 CustomMillworkInc.com

Dakota County Lumber 28 8th St. Farmington, MN 55024 651-460-6646 DakotaCountyLumber.com Fullerton Lumber The Builder’s Choice Ellsworth - 715-273-5032 Glencoe - 320-864-5103 Osceola - 715-294-2000 Watertown - 952-955-2237 FullertonLBR.com Lampert Lumber Apple Valley - Lake Elmo North Branch - Northfield Rockford - St. Croix Falls 651-695-3600 LampertLumber.com

Scherer Bros. Lumber Co. Arden Hills Hopkins Shakopee 952-938-2741 SchererBros.com Spring Lake Park Lumber 8329 Central Ave. NE Minneapolis, MN 55432 763-784-3062 SLPLumber.com TS Building Supply 5234 Barthel Industrial Dr. NE Albertville, MN 55301 763-515-3255 TSBuildingSupply.com

©2015 Marvin Windows and Doors. All rights reserved. ®Registered trademark of Marvin Windows and Doors.

a word from our president

Mid-Year Review: With Your Help, We’re Getting Things Done Over the past several months, four University of St. Thomas MBA students have been engaged in a research project assessing the attitudes and needs of BATC members. Interestingly, this magazine is one of the most widely read of BATC’s many communications tools. Yet, the study revealed that it remains a challenge to communicate to our members the breadth of BATC activities and the value of all that we do.

I’m going to try to aid that effort with this issue. In this month’s column, I’ll address several of the areas in which we’ve been working.

As you may recall from our member correspondence, we are seeking two key items from BAM: First, in accordance with the National Association of Home Builders bylaws, we want to reinforce BATC’s right and responsibility to represent its members as it best sees fit.

Second, we seek to have BAM redirect 75% of the $200,000 that BATC members pay in state dues toward a modern, comprehensive advocacy effort such as Housing First or an industry communications fund jointly managed by BATC and BAM. As you may have seen from our recent correspondence, the talks between BATC and BAM are moving in a positive direction. During our first couple of meetings we agreed on the following items: • BATC and BAM will work together to find areas of collaboration that will enhance the industry’s advocacy efforts. Changes to the- relationship between the organizations will be geared toward investing additional money into a modern, comprehensive advocacy program.

• The current dues structure will remain in place.

BATC Digest

July–September 2015

BATC President ccontrer@ryland.com [c]: 612-366-0826

We have four members on our negotiating team, as does BAM, and we’ve had several meetings and productive discussions. I’m very hopeful that we can reach a mutually beneficial agreement that makes the best use of your dollars while helping BAM broaden its government affairs capacity.

This is BATC’s independent expenditure fund, which had a huge impact on the 2014 elections, helping to put several housing-friendly candidates in office and substantially elevating BATC’s stature with legislators and regulatory agencies.

We’re already looking to the 2016 elections in partnership with key business groups in the state. We’ve set a very ambitious goal of $1.2 million in this fundraising cycle, which will further establish BATC as a force. It takes several years of

engagement and resources to become a recognized powerhouse.

Through Housing First, we can target specific housing-friendly candidates to support and essentially run independent electoral campaigns on their behalf (as long as we don’t coordinate directly with them). This game-changing opportunity arose with a 2010 US Supreme Court decision called Citizens United, and BATC jumped into this new political frontier that year. As a result, we’ve become leaders in the independent expenditure field.

CONTINUES ON 62

6

Chris Contreras

DON’T MISS NAHB’S DR. ROBERT DIETZ’ MID-YEAR INSIGHTS ON THE RESIDENTIAL OUTLOOK.

Eggs JULY 9, 2015

See page 30 for more information

GIVING

Y U

MORE SATISFIED HOMEBUYERS

WHAT HOMEBUYERS SAY ABOUT NATURAL GAS

74% would recommend natural gas 75% prefer natural gas for cooking 72% prefer natural gas for water heating Learn about more ways you can increase your profits with natural gas.

Contact David Poretti at 612-321-4386 or David.Poretti@CenterPointEnergy.com.

From the National Association of Home Builders Homeowner Energy Preference Survey Reference: 2010 New Homeowner Energy Preference Survey, prepared by Woodland O’Brien & Scott – Consultants to the Housing Industry, St. Paul, MN

©2015 CenterPoint Energy 144092

STYLE THAT

WORKS For product knowledge, selection and a logistics partner that keeps your building or remodeling project on track, count on Ferguson. In our showrooms, your clients touch, see and compare top-selling bath, kitchen and lighting products – and decide with confidence.

Our consultants provide Š2015 Ferguson Enterprises, Inc.

product and budget planning expertise, and even find the value-added opportunities your business needs. So you can take pride in your work on every level.

FERGUSON.COM

Golden Valley (763) 591-5700 Burnsville (952) 894-9385 Mahtomedi (651) 779-9393 Coming Soon Oakdale

Pella’s been a leader in purposeful window and door innovation for 90 years.

From our made-to-order, custom windows and doors to our new InsynctiveTM family of smart products, Pella can help you enrich the quality of your homes — and the lives of those who live in them.

Visit pro.pella.com for more information on products and how to contact your local Pella representative.

PELLA WINDOW & DOOR SHOWROOMS

EDINA/PLYMOUTH

WOODBURY

952-915-6080

651-704-9939

pro.pella.com © 2015 Pella Corporation

  •  •  •   



----

BATC.org

July–September 2015

BATC Digest

9

2015 BATC EVENTS JUL Eggs + Economics: Insights from

OCT

Robert Dietz

9 NAHB’s Dr. Golden 6 7:30–9:30am,

Valley Golf & Country Club JUL

15

Benefiting BATC Foundation

AUG

5

3

Minnesota Horse & Hunt Club

Pulte Charity Golf Tournament

BATC Clay Shoot

BATC Open Golf Tournament & Dinner The Wilds Golf Club

4

OCT

7

12

OCT

15

BATC Directors’ Dinner Millennium Hotel Minneapolis

BATC Remodelers Roundtable

2pm

9

10

OCT

11

AUG

12

Member Orientation

9am

AUG

13

22

The BIG Night Mystic Lake Hotel & Showroom

BATC Remodelers Roundtable

2pm

SEPT

OCT

12 4 BUILDERS

to

SEP

16

15

SEP

22

Parade of Homes Fall Showcase

BATC Bash - Member Appreciation Party 17 BATC, 3–6pm

BATC Foundation Golf Open Legends Golf Club, Prior Lake

mes Partner, Inc. 9. Chris Cole, AllStar Construction 10. Lowell Pratt, Pratt Homes 11. L to R: Penny Lindblom, Dorglass, Inc., Rob Shainess, Capstone Law, LLC, Nancy & Jeffrey Schoenter, JMS Custom Homes (FYI-dinner only) 12. Lorem ipsum dolor sit amet 13. Back: Bob Bennett, Lyman Lumber Co., Kori Meewes, and More by Kori, Heather Litchy, BATC 14. L to R: Jerry ker, Kimberly Bednar, Todd Polifka, Brush Masters 15. 2014 Tournament Champion—American Building Contractors, Inc. (Michael Jacobs, Gary Marion, Josh Moe, Paul Woodward) team rting the new BATC Open trophies 16. L to R: Bob Appert, Redstone Builders, LLC, Dan Geegan, Ridge Creek Custom Homes, Matt Mazanec, Ridge Creek Custom Homes, Jesse Kohman, ABC work 17. Back L to R: Tom Zerull, Vujovich Design Build, Inc., David to Burke, John Kraemer & Sons, Inc., Jeff Kraemer, John Kraemer & Sons, Inc., Front: Brett Remme, In-Focus Systems

ATC.org

OCT

2

OCT

4

Fall Remodelers Showcase

NOV

October–December 2014

t.indd 41

Builders’ Digest

12

Member Orientation

1pm

41

NOV

12

Give to the Max Day

9/24/14 1:06 PM

DEC

3

DEC

17

BATC Buck Auction BATC Seminar Room

BATC Remodelers Roundtable

2pm

EVENT DETAILS AT BATC.ORG AS OF 6/15/15; SUBJECT TO CHANGE

10

BATC Digest

July–September 2015

NOW MIGHT BE A GOOD TIME TO REMODEL

How and Why You Do Marketing

By SHAWN MCCADDEN | Remodel My Business, Inc | www.shawnmccadden.com

If you missed Shawn McCadden at BRS, here are some key takeaways from that presentation.

This past April I presented a half-day marketing workshop titled “Choosing and Targeting the Right Customers and Projects Types for Your Business” at BATC’s BRS. The workshop was the keynote session for BATC’s annual trade show in Minneapolis. At the workshop I shared new ways contractors can think about and do their marketing so they can attract their desired customer and job types. It’s what I call strategic marketing.

For those of you who missed the workshop, here are some of the key points we discussed.

TAKE ADVANTAGE OF THE TIMING

.

The economy and residential construction are both picking up. At the same

time, the majority of attendees agreed with me in that we are not yet confident that the pace of the current surge will be sustainable considering the uncertainties businesses and consumers still have about the economy. With that in mind, this is however a good time to take advantage of the surge to concentrate on developing market share in a strategic way. It’s my opinion that most contractors would benefit from becoming a specialist in what they do and how they do it. After all, specialists typically command higher prices than generalists. And, true specialists are always in

Rather than try to be better than your competition, why not seek to be different from your competition? Being different attracts attention and consumers who want different also know they have to pay more to get different.

demand, even in down economic times.

Now is a good time to specialize, as long as you also work on branding to establish and maintain your position as a specialist in your desired market areas.

HERE ARE SOME SPECIFIC STATISTICS CONTRACTORS CAN CONSIDER AND USE TO STRATEGICALLY BUILD MARKET SHARE Pick your customers, don’t let them pick you: Stop taking just any customer or job. Be selective about who you will let become your customer. For example, why not only work with people who would say they are “working with” you, not those who would say you are “working for them”. Also, be selective about the project types you go after. For example, why not attract people who want high quality products. If you sell using one markup across all cost categories, the gross profit dollars earned on material intensive projects due to higher price point products is an easier way CONTINUES ON 14

12

BATC Digest

July–September 2015

New!

TOP

5

More Resources. More Solutions Did you know that Brush Masters delivers more than just Drywall, Paint and Pre-Finishing services?

Ma Since 1986 Brush Masters has aimed to partner with clients to support your total

R E MO DE LE R S

business.

AFTER SURVEYING OUR REMODELER MEMBERS, HERE ARE OUR 2014 TOP VOLUME REMODELERS Sharing market information with the press is a great way for BATC to gain and maintain credibility with news reporters and producers. It’s also a great way for us to generate positive news articles about home building and remodeling. For decades, BATC has published a Top 25 Builder listing. Now, we’re pleased to add a Top Five Remodelers listing.

Reporting $14.2 million in business during the calendar year, PCS Residential, located in Eagan, came out on top.

“We want to show that the Twin Cities’ remodeling industry is vibrant and growing,” said BATC Executive Director David Siegel.

“Families are finally following through with their remodeling plans after putting them on hold during the recession.”

Gross Revenue

1

2

3

4

5

PCS Residential - Eagan

$14,298,955

Ispiri, LLC - Woodbury

$8,144,048

Kuhl Design & Build - Hopkins

$7,300,000

meet each of your projects exact needs.

We have the ability to eliminate finger pointing between your drywall and painting contractor by offering you both of these services in-house.

Brush Masters Ma pre-finishing services provide you with high quality finishes that offer you time saving options and job scheduling flexibility.

Our color consulting services give you and your clients’ peace of mind; knowing that we can guide your color and finish choices in the right direction.

Finished Basement Company - St. Louis Park $7,000,000 James Barton Design Build, Inc. - Apple Valley $6,665,731

Rankings are based on information provided by survey respondents. Respondent information is believed to be reliable. Each company has verified information to the best degree possible. John Kraemer & Sons as well as Revision, LLC, which according to our data, may have been included in the top 5, declined to participate.

BATC.org

Our versatility and depth in staffing helps you

�n�us���

���p��

p�����

c���ec�

Supporting You. Supporting the Industry.

Contact us today to learn more: 763.478.3232 July–September 2015

BATC Digest

13

to meet overhead and net profit goals, both now and in the future, particularly when compared to selling and producing labor intensive projects.

THINK OF HOW YOU DO MARKETING IN A NEW WAY

Stop competing, differentiate: I don’t understand why contractors think they have to compete and or be competitive. For most construction business owners, competing means bidding. Home owners who seek bids are typically like auctioneers, except they are looking for the lowest price, not the highest.

And, rather than try to be better than your competition, why not seek to be different from your competition. Being different attracts attention and consumers who want different also know they have to pay more to get different.

One key to being different and attracting positive recognition is to concentrate on how you do what you do to demonstrate your difference, rather than work on what you do to differentiate. One example of potential differentiation could include offering true Design/Build as an alternative to the traditional design-bid-redesign and bid again game. Another example would be helping prospects develop project specifications but with the agreement that you will come back to present your proposal and solutions, but you will not leave them behind unless they sign your proposal and give you the required deposit.

BEING DIFFERENT COMES WITH PROS AND CONS If you decide to use these example strategies many prospects will go away. However, the ones that see value in your differences will become cogs in your new referral generating machine and will pre-sell the value of your differences to their referrals so you won’t have to. I call those types of referrals “layups”.

The old traditional marketing methods of trying to find prospects who want your services now, and interrupting them to get their attention, no longer work. Today consumers are the ones deciding how they will find and qualify their project ideas as well as the contractor they will work with. Instead, use inbound marketing tactics that help consumers find your business. This should be one of the two primary purposes of your marketing and can be accomplished on your web site using SEO tactics and good content on your site’s pages as well as your blog. The other primary purpose of your marketing, particularly at your web site, should be to help prospects decide if what you offer and how you do business are right for them. In other words, your marketing should help them prequalify themselves so they either want to contact you or know they shouldn’t.

WE HID IT GOOD. A nail is hidden somewhere in every issue of the BATC Digest, including the one you’re holding right now.

It could be tucked into a photo or stuck in a drawing…in a margin…in a body of text…even used as an exclamation point at the end of a headline (but never in an advertisement). It resembles a real-life nail and looks something like this…

FIND THIS

The nail above is just an example—it is not the real one hidden for this issue’s contest.

We’ve concealed the real one elsewhere in this issue, and it could be a different color or size. Keep in mind, the Spike Club logo’s nail does not count.

IF YOU FIND IT...

1. You must be a member to participate.

FINAL THOUGHT—MARKETING SHOULDN’T JUST BE LIMITED TO CREATING LEADS

2. Email or fax us, telling what page it’s on: (laurie@batc.org or 651-697-7575)

At the workshop I also shared one more new way to use your marketing; to advance the sales process. Consumers want to gather information and ideas about their project, 1 but they want to be sure they are getting accurate and useful information. Savvy contractors are now using the content at their websites to educate consumers before they call to setup an appointment with a contractor. This saves both the prospect and the contractor a lot of valuable time. In addition to offering project and product related information, you can also educate them about how and why you do business the way you do. This can not only speed up the sales 2 process, it can also help clearly differentiate your business and therefore improve the quality of your leads.

3. We’ll enter you in a drawing to win a business-card size ad in a future BATC Digest, OR a set of member labels (non-electronic version).

4. All other entries receive $100 in BATC Bucks.

5. Entries must be received by August 15, 2015.

HIDDEN TOO WELL? Awwww shoot. Nobody found the nail from our April–June issue on page 22, clearly (?) implanted on the sponsor sign next to Daryl Doehr (Marvin Windows and Doors) at IBS. The nail hider loves to tuck the nail into photos. Just sayin’.

A-HA! h T ere it is!

3

Shawn McCadden, President of Remodel My Business, Inc., founded, operated, and sold a successful design/build company in 2004. Today he speaks frequently at industry conferences and trade events, writes for trade publications, blogs and consults with remodeling companies. He also consults with construction-related product manufacturers and suppliers, helping them understand, find, educate and better serve remodelers in mutually beneficial ways. Visit him at www.shawnmccadden.com YOUR LEAD RENOVATION CERTIFICATION

EXPIRES EVERY 5 YEARS 14

BATC Digest

July–September 2015

BE AWARE OF YOUR EXPIRATION DATE

EPA LEA REFRESH

Tuesday, A Wednesda Wednesda

BATC Memb

4 Hours Build

PREMIUM OUTDOOR LIVING SPACE: MAKE ROOM FOR ZURI ®.

Homeowners want a little bit of everything from their outdoor space.

Zuri Premium Decking by Royal® was engineered to deliver everything from exotic wood looks to low maintenance to superior color fade, scratch and moisture resistance. Zuri is premium decking that merges a home’s interior and exterior worlds in the most visually powerful way imaginable.

All without resealing, staining, painting or compromising.

Available at:

Learn more at zuri.royalbuildingproducts.com. Or call Angela Prenzlow at 866.395.2558.

With five timber varieties, it’s easy to create a deck that sets your home apart.

© 2015 Royal Building Products

Checkmark!

Another solid show in the books.

BUILDERS & REMODELERS SHOW A PRODUCT AND SERVICE EXPO PRESENTED BY:

BRS Exhibitors

About the Attendees

2014 vs. 2015

BRS 2015

2016 Exhibitor Info Exhibitor information available soon for 2016 BRS. First right of refusal on booth space for returning exhibitors will expire 10/15/2015. $200 Deposit Required.

307 276 232

212

2015

2014

companies

purchased at the show.

100%

72%

plan to purchase within the next 12 months.

98%

come for the industry connections.

71%

are very likely to recommend BRS to a friend in the industry

91%

come because it’s fun.

come to BRS to see new products and services.

10x10 booths

2015 Attendees

820

Checked-In

56%

31%

Builders

Remodelers

13% Other

Architects » Interior Designers » Building Officials » Students

16

5%

BATC Digest

July–September 2015

Special Thanks to the Associate Committee Members for all their work on making BRS a success.

Adam Olson, Lampert Lumber, Chair Brad Sorensen, R&J Insulation, Inc., Vice Chair Cheryl Asmus, Wausau Supply Jerry Asmus, L & W Supply Jon Coty, Residential Technology Systems Reed Daniel, Galaxy Sales, Inc. Dennis Galligan, In Focus Systems Kevin Kruger, Kruger Financial Services Investment Planning & Wealth ManagementSecurities & Advisory Services offered through SII Investments, Inc., Member FINRA/ SIPC and a Registered Investment Advisor Bryan Martin, Aquarius Water Conditioning Brad Nolan, Bell Mortgage, A Division of Bell State Bank & Trust Dave Peterson, Distinctive Drywall, Inc. Todd Polifka, Brush Masters Kristin Rother, Lampert Lumber Tony Schumacher, Light’N Up! Anna Struss, Automated Building Comp.-Kitchen Steven Tag, Simpson Strong Tie John Ties, Minnesota Tile & Stone

What Did Attendees Have to Say: “BRS is a great place to meet new potential subcontractors and suppliers. The soft sell of the show is the best part. Most subcontractors and suppliers avoid the “hard sell” and enjoy conversing with you. Meeting these type of industry connections is why I enjoy BRS.” Andy Michels, Bob Michels Construction, Inc. “I attend the BRS to see what the latest products are and how I can implement them into what our company can provide to our clients. It also provides the opportunity to chat with old friends and hear how the industry is handling all the new changes.”

Dave Durst, Durst & Gans Building Corporation “A great way to stay connected to the industry, and talk to your sales rep. about what’snew to our market area. You can not get that personalized attention at the International Builders Show.”

Dean Soderbeck, Soderbeck Design & Construction, Inc.

What Did Exhibitors Have to Say: “BRS is where key decision makers are and a great time to show them what we have to offer in a low pressure environment.”

Brian Robbins, Pella Windows & Doors “The Builders & Remodelers Show is a must!

To continue to grow as a strong industry in Minnesota, it is imperative that we support BATC, our Builders and the Associates - making it productive and enjoyable.”

Brush Masters is a proud sponsor of these fine BATC Events!

We look forward to seeing you throughout 2015 • Annual Meeting & Board Induction • Builder Day at the Capitol & Legislative Reception • BRS Show Sponsor • BATC Open • BATC Bee - Mid Year Update • Foundation Golf Outing • BATC Clay Shoot • The BIG Night

Beth Kost, 2-10 Home Buyers Warranty “It was great to see our existing customers, and to meet a few new builders.”

Jeremy Schmidt, Action Overhead Garage Door, Inc.

BATC.org

�n�us���

���p��

p�����

c���ec�

Supporting You. Supporting the Industry.

Contact us today to learn more: 763.478.3232 July–September 2015

BATC Digest

17

2

1

4

3

Award Winning

THE BUILDERS & REMODELERS SHOW APRIL 2, 2015 Pictured left to right 1. Dan Onasch, Ty Hetland and Kylene Davis from Hedberg Landscape and Masonry Supply looked fetching in their blue plaid. 2. Troy Asleson, Stone Cottage Construction won the Grand (and we mean $1 Grand) prize for builders. 3. Hanging at the Artful Living Magazine booth: Kyle Kellogg, Webco, Abbie Althoff and Emma Cutler with Artful Living, and Angela Prenzlow, Royal Buiding Products. 4. Jody Kerns, Wells Fargo Home Mortgage showing how she caught the big fish, BATC President, Chris Contreras, Ryland Homes 5. Rick Hunt, ABC Millwork, Jim Fuschetto and John

BUILDERS & REMODELERS SHOW

Zirbes, Lyman Lumber 6. BATC’s James Vagle accepting a Housing First check from Bob Michels, Bob Michels Construction in the VIP Housing First Lounge 7. Schweiters Companies brought home the gold (looks like they panned it themselves) for Best Booth: Mark Krzystofiak, Brian Goodreau, Tracey Flack-

A PRODUCT AND SERVICE EXPO

Mills, Ryan Malinski and Ron Kollmann. 8. The Fullerton Lumber Team: Ron Emmons, David Dupree, Gary Parshall and Larry Nelson 9. David Frosch, Michael Lee and Kootenia Homes 10. Super Lisa Felts

PRESENTED BY:

from SuperAmerica 11. Josh Heller and Mat Gates, Residential Science Resources MORE PHOTOS ON PAGE 20

18

BATC Digest

July–September 2015

5

6

7

8

9

10

Thank you

to our Sponsors

11

Premier Show Sponsors Show Sponsors

Auto Sponsor Friendly Chevrolet Harry Brown’s Family Automotive Jeff Belzer’s Chevrolet Luther Brookdale Chevrolet

BATC.org

Bar Sponsors Merit Chevrolet Rosedale Chevrolet Suburban Chevrolet

Bayer Built Woodworks, Inc. Brock White Company Excelsior Capital, LLC

Fireside Hearth & Home IDC-Automatic Lampert Lumber

Badge Sponsor

Lanyard Sponsor

Bag Sponsor

JL Schwieters Bldg. Supply/Const., Inc./ Schwieters Companies, Inc.

Light N’ Up!

Cityscape Painting Contractors, Inc. July–September 2015

BATC Digest

19

12

13

14

15

BRS–continued from page 19 12. Synergy Products took the Great Outdoors Theme to heart, showing off their team spirit in hockey jerseys, each sporting their title (Window Guy, Cabinet Guru and #1) on their backs!

13. Tara and Mike Laumann, Michael Paul Homes show Scott Lewison, Fireside Hearth & Home some love. 14. Drum Roll Please: Winners of the Best Theme booth were the lumberjack campers at FocalPoint Flooring, Cabinets & Design. 15. Keith Horkey and Tom Schutz from KEY LAND HOMES scoping out the booths. 16. Kari and Tom Cartier, Cartier Lighting 17. Josh Brottlund and Wendy Nortunen showing off their 2nd Best Booth award which Brush Masters earned for having a great booth and really working the crowd (and of course, the S’Mores).

16

17

20

BATC Digest

July–September 2015

Minnesota’sLargest Largest Minnesota’s CustomCabinet CabinetManufacturer Manufacturer Custom

Saveup upto to15% 15%on onyour yourfirst firstDura DuraSupreme SupremeOrder, Order, Save pleasecontact contactGalaxy GalaxySales, Sales,Inc. Inc.for fordetails detailsat at952-983-2188!

952-983-2188! please

BATC.org

8694 EAGLE CREEK PARKWAY .. SAVAGE, 55378-1284 pp 952-983-2188 ff 952-983-2199 GALAXYSALESINC.com July–September BATC Digest 21 8694 8694 EAGLE EAGLE CREEK CREEK PARKWAY PARKWAY. SAVAGE, SAVAGE, MNMN MN55378-1284 55378-1284 p 952-983-2188 952-983-2188 f 952-983-2199 952-983-21992015GALAXYSALESINC.com GALAXYSALESINC.com

“

C O M I N G T H I S FA L L

BATC definitely knows how to put on a party, and our BIG Night is the biggest party ever; a night that’s formal, yet fun! We set the bar pretty high last fall at the Union Depot, but expect an even bigger and better event this fall at Mystic Lake. It’s the perfect way to say congratulations to our guests of honor: all of our winning builders, remodelers and associates.

O C TO B E R 2 2 , 2 0 1 5 | M YST I C L A K E MYSTIC LAKE | 2400 MYSTIC LAKE BLVD., PRIOR LAKE, MN 55372

MEG JAEGER, MEGA HOMES, INC.

We’re pleased to announce our special guest and emcee

V I S I T W W W. B AT C . O R G F O R E V E N T

KERI NOBLE

D E TA I L S O R TO E N T E R O N L I N E

CITIES 97 DJ AND SINGER/SONGWRITER

THE BIG NIGHT IS ‘THE’ NIGHT FOR REMODELERS, BUILDERS & ASSOCIATES. Bring your team and your arm candy for an evening of unparalleled mingling, recognition and celebration of the industry at Mystic Lake. (Awesome!)

FEATURING THESE AWARD WINNERS

RISING STAR

NEW! RISING STAR

22

BATC Digest

Sponsored in part by:

July–September 2015

RISING RISING STAR STAR

RISING STAR RISING RISING RISING STARSTARSTAR

We’ve Been Enriching People’s Lives for More Than 40 Years UP

ON

OR PEX

For more than 40 years, Uponor has

40

YE

PEX

ARS

been providing efficient, comfortable radiant floor heating systems

F

OR

BO

and safe, reliable PEX plumbing and fire sprinkler systems to structures around the globe. Our solutions

M E R LY W I R

S

make the homes you build more beautiful from the inside out.

Learn more about us at www.uponor-usa.com. ©2015 Uponor, Inc.

Connect with Uponor.

Connect with confidence.

BATC Builders' Digest April-June 2015 Send to: Brad Meewes – brad@batc.org Uponor Residential Piping Ad Size: 7" x 4.785"

We specialize in:

THE MINNESOTA MULCH LOG

• Rough Cut Mowing • Silt Fence Installation • Hydro Seeding • Seed and Mulch • Tree and Safety Fence • Inlet Protection • Erosion Blanket

It is a 10” geotextile fabric sewn together and filled with recycled wood product. It’s reusable and can be easily moved to another location. The Minnesota Mulch Log is a very effective perimeter control device and is more aesthetically pleasing providing a great alternative to silt fence.

Exceptional Service. Always.

763-262-SILT (7458) BATC.org

• Reusable • Low Maintenance • Ditch Checks • Cost Effective

• Inlet Protection • Perimeter Control • Easy to Install • Self Anchoring

CHECK OUT OUR WEBSITE WWW.EROSIONWORKS.NET July–September 2015

BATC Digest

23

parade of homes

A Picture is Worth 1,000 Words!

Demographics:

Show off your homes, remodeling projects or products to the 300,000 ParadeofHomes.org users (over 2 million page views in the last 12 months) in our new Photo Gallery! In the past month, already over 4,000 users viewed the photo gallery.

How to get your photos included: Any photos uploaded to your company profile and Parade of Homes/Remodelers Showcase premium entry upgrade purchases will automatically be included in the Gallery. Additional photos are $1 each and can be ordered online.

Remember, if you participate in the Parade of Homes or Remodelers Showcase, your company upgrade is free! If you haven’t upgraded your company profile yet, isn’t it time you did?

67%

Parade of Homes Tour Visitors*

9.6% of Metro adults attended Parade of Homes in the past year (229,000 people)

• Parade of Homes Builders & Remodelers: your company profile is FREE • Non-POH/RS Builders & Remodelers: upgrade your profile for $400/year • Associates: upgrade your profile for $200/year

OF CONSUMERS CONSIDER CLEAR, DETAILED IMAGES

38%

35–54 years old

39%

55 years and older

53%

47%

to carry more weight than product information or customer ratings, according to research conducted by James Scherer at Wishpond, an online marketing company.

This fall will mark the 66th Fall Parade of Homes and 28th Fall Remodelers Showcase!

While we’re a very “mature” brand, we’ve also managed to remain incredibly relevant to today’s consumers—as you’ll see from the KARE 11 consumer market profile research conducted in March (at right).

And we’ve been digging in even deeper with our own consumer research project conducted during the first half of 2015. Results should just be coming in as you read this, and will help inform efforts to ensure our consumer brand remains strong and continues to provide substantial value to you and to BATC. This research should help us clarify how and why families choose their next home—especially important when we begin reaching out to the next generation of home buyers who don’t shop or make decisions quite like their predecessors.

Millennials are the largest generation in American history, and will be buying homes en masse over the next five years (or so most economists BATC Digest

18–34 years old

Contact Wendy Danks for more details: Wendy@BATC.org, 651-697-7565

2015 Fall Parade of Homes and Remodelers Showcase

24

23%

July–September 2015

10% HIGH SCHOOL GRAD OR LESS 23% SOME COLLEGE/VOTECH 67% COLLEGE GRAD OR MORE

tell us). While there’s been a lot of speculation about their housing choices, there’s a lot of evidence that new homes and remodeled older homes could be the best way for them to get what they really want.

71% married 29% children at home 76% employed $117,907 avg. HH income

In a recent article in the Houston Business Journal, Metrostudy’s Scott Davis, had this to say about what those buyers are looking for:

*Our partners at KARE 11 TV included a Parade of Homes question in their metro-wide Consumer Market Profile research conducted by Leigh Stowell & Company, March 2015.

“The first consideration, contrary to accepted wisdom, is that they’re looking for homes in the suburbs, partly due to affordability, familiarity, good schools and job growth. Second, they want small but high-quality, energy-efficient homes.

And they want homes that create experiences—not just a place to store stuff.”

Stay tuned for future issues of BATC Digest where we’ll share key findings of our research.

THERE MAY STILL BE TIME TO ENTER

& ADVERTISE IN THIS FALL’S TOURS. Contact Casey Scozzari, Casey@BATC.org, 651-697-7569 for entry information.

Contact Kori Meews, Kori@BATC.org, 612-801-9874 to advertise.

Quality from start to finish.

Visit schwieterscompanies.com for additional photos and more information on our company.

Schwieters Co. Inc. Interior Finishes 13925 Fenway Blvd. N. Hugo, MN 55038 651.407.1618 • Finish Carpentry • Millwork • Prefinish • Cabinetry • Hardware • Windows & Doors BATC.org

July–September 2015

BATC Digest

25

SET FOR A SUPER 2ND YEAR With 18 new homes and four remodeled homes open the final weekend, BATC’s newest home tour included some exciting new features this year: • Remodeling Projects — Like our Parade of Homes, we’ve added a remodeling component for the final weekend.

Brothers Liquor Company.

With, of course, cheese curds!

• Retail Sales — We’ve added both Bachman’s and Patina Stores as retail ticket outlets, in addition to our online option and at-the-door purchases.

• Wine and Beer Partners — Every Friday evening, Artisan Homes featured either craft beer from Flat Earth Brewery or artisanal wines provided by Wirtz Beverage and Johson

• Featured Art — Our partner, the American Craft Council, connected us with regional artisans, Fred Kaemmer who works in glass, and Elisabeth Maurland, an amazing potter, to feature in Artisan Homes.

• Our online app, Parade Craze, once again is set to provide comprehensive data about visits and tickets, and included photos and a place for comments from visitors.

THANK YOU GRAND MASTER SPONSORS

JOURNEYMAN SPONSORS

TM

26

BATC Digest

July–September 2015

1

2

view more photos on batc.org

3

4

5

6

ARTISAN HOME TOUR KICK-OFF PARTY MAY 14, 2015 7 Pictured left to right: 1. Caryln Kuchan, Jen Durdahl and Kayla Vig with Otogawa-Anschel Design Build 2. Steve Dammer, Tony Sonnen and Lane Larson, Gonyea Homes. 3. The TJB Homes team: Tom Budzynski, Lindsay Reuter, Nate Raich, and Geoff Bray with Jody Kern, Wells Fargo Home Mortgage standing second from left. 4. Randall Reichert, Ashley Bjornstad and Chris Stinson from sponsor Wells Fargo Home Mortgage.

5. Kevin Johnson, Jeremy Rupp, Emily Rupp, and Liz Faulstick from Robert Dana Design with sponsor Steve Hedberg, Hedberg Landscape & Masonry Supply. 6. Another Wells Fargo Home Mortgage contingent included Nicci Brown, Lala Jones and Brian Jones 7. Tom Christensen and Jeff Blomberg with sponsor and event hosts, Marvin Gallery by Shaw Stewart hanging with Daryl Doehr, Marvin Windows and Doors

28

BATC Digest

July–September 2015

GIVING

Y U

MORE SATISFIED HOMEBUYERS 75% of homeowners prefer natural gas for cooking CenterPointEnergy.com/GasIsBetter

FURNACES • AIR CONDITIONERS • ENERGY STAR CERTIFIED ZONING • INDOOR AIR QUALITY • IN-FLOOR HEATING • GEOTHERMAL

Contact us today to discuss your new energy code compliance options!

©2015 CenterPoint Energy 144093

BATC.org

July–September 2015

BATC Digest

29

Eggs INSIGHTS FROM NAHB’S DR. ROBERT DIETZ MID-YEAR RESIDENTIAL OUTLOOK BREAKFAST

Keynote Speaker

Thursday, July 9, 2015

Vice President for Tax and Market Analysis for the National Association of Home Builders

Golden Valley Golf & Country Club 7001 Golden Valley Road Golden Valley, MN 55427

DR. ROBERT DIETZ

7:30-9:30am

Dr. Dietz will present an analysis of housing and economic results for the previous six months and provide a forecast for the following six months, both locally and nationally. $39/PER PERSON—INCLUDES BREAKFAST.

1

Give your business planning a heads-up by understanding the national and local housing forecast.

2

Find out how homebuyer preferences are changing so you aren’t left in the dust.

3

Thank You Sponsors:

30

BATC Digest

July–September 2015

Find out what current headwinds may affect your business—from access to labor to governmental policy changes.

4

Breakfast! Get fueled up to start your day right.

Why settle for less when you can have MORE? Working with Lyman Roofing & Siding has never been easier!

With the opening of our newest facility, we can offer you MORE than ever.

• MORE Inventory • MORE Equipment • MORE Selection • MORE Convenience

ow N S R L shes i n fi e Pr ng! i d i S LP Visit us at 5320 West 23rd Street, St. Louis Park, MN 55416 612-430-7200 • lymanrs.com BATC.org

July–September 2015

BATC Digest

31

See

why we’re the preferred painter for Uponor Residential Piping Ad over 50 Size: 7" x 4.785" custom home builders and remodelers since 1985.

BATC Builders' Digest April-June 2015 Send to: Brad Meewes – brad@batc.org

■

■

■

Interior and exterior painting Angie’s List Honor Roll Member Our painters average over 15 years experience

952-469-5901

www.cityscapepainting.com

We proudly use Hirshfield’s products BATC.org

April–June 2015

BATC Digest

02_BATC Digest 2015_01-20.indd 47

47

3/20/15 1:53 PM

KLEINBANK In the construction industry, every borrower has a unique lending need that requires experience and dependability.

You can trust us to be that resource.

Ron Allar & Phil Hocking Construction Lending Experts

952-361-9243

r.allar@kleinbank.com

952-361-3862

THE FAMILY BANK 32

BATC Digest

July–September 2015

Va lues

p.hocking@kleinbank.com Member FDIC

2015 LEGISLATIVE SESSION REVIEW

LEFT INTENTIONALLY BLANK

MESSAGE FROM THE

PRESIDENT The 2015 legislative session followed what has become a familiar theme for the homebuilding industry: play strong defense; seek opportunities for industry policy advancement; and atop our list, fix the energy and building codes. Because the legislature has a view much broader than just our industry, we navigated the major themes of the session, which this year was the creation of the state’s two-year budget. I’m pleased to report that we successfully defended the industry against harmful legislation and we made progress on an energy code performance path. As you are likely aware, we were unable to overcome the Governor’s resistance to our attempts to repeal the sprinkler mandate.

While we are disappointed in this particular outcome, we are heartened knowing that we’ve won in many regards. By fighting as aggressively as we have, and in combination with our Housing First election efforts, and the coalitions we’ve now established, we know we’ve elevated BATC and the home building industry at the Capitol and with regulatory agencies. We’ve established a presence that tells lawmakers and regulators that we are not an organization or an industry to be taken lightly.

CHRIS CONTRERAS Ryland Homes and 2015 BATC President

Our strategic plan and Board of Directors vision for BATC is to position our organization as a leading industry voice advancing our mission of housing affordability for all. We have shaped our budget to support this effort and are blessed with a strong team of dedicated professionals that advocate on behalf of our businesses. If we keep building and investing in these efforts, I have no doubt that we will see better days ahead for our industry.

Thank you for your support for BATC and our industry.

A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES

2015 Legislative Wrap-Up

•

1

TABLE OF

CONTENTS

7

SPRINKLER REPEAL AGAIN BLOCKED BY DAYTON – WE NOW TURN OUR ATTENTION TO OUR DAY IN COURT

9

ENERGY PERFORMANCE PATH – PATHWAY CREATED FOR ENERGY CODE RELIEF

11

BUFFER POLICY CHANGES – AG LANDS SUBJECT TO NEW BUFFER RULES

13

MET COUNCIL GOVERNANCE – PROPOSALS APLENTY IN HOUSE; SENATE AND GOVERNOR LESS INTERESTED IN MET COUNCIL FIXES

15

WETLANDS CONSERVATION ACT UPDATE

17

FEDERAL CLEAN WATER ACT SECTION 404 PERMIT PROGRAM – STUDYING THE FEASIBILITY OF BRINGING 404 REVIEW TO MINNESOTA

19

CODES TECHNICAL – 6-YEAR CODE CYCLE NOW PERMANENT

21

WORKFORCE HOUSING INITIATIVES – AWARENESS OF HOUSING AFFORDABILITY CHANGES GROWS

23

DEFENSE – PROTECTING THE INDUSTRY AGAINST HARMFUL LEGISLATION

25

BUILDER-PAY ATTORNEY FEES IN WARRANTY DISPUTES

A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES

2015 Legislative Wrap-Up

•

3

2015

SESSION BY THE NUMBERS

2379

2223

HOUSE BILLS INTRODUCED

S E N AT E B I L L S INTRODUCED

80

4

BILL S SIGNED BY THE GOVERNOR

BILL S VETOED BY THE GOVERNOR

6

SPECIAL SESSION BILLS PA S S E D & SIGNED

$42,000,000,000 T O TA L B U D G E T F O R T H E 2 016 - 17 B I E N N I U M

$270,000,000 C O S T O F T H E C A P I T O L R E S T O R AT I O N S TA R T D AT E O F T H E 2 016 L E G I S L AT I V E S E S S I O N : M A R C H 8 , 2 016

BATC BLOG

S TAY U P - T O - D AT E . B AT C . O R G

THE TEAM DAVID SIEGEL

JAMES VAGLE

BATC EXECUTIVE DIRECTOR

BATC PUBLIC POLICY DIRECTOR

CHRIS CONTRERAS

JOHN RASK

BATC PRESIDENT, RYLAND HOMES

HANS HAGEN HOMES

PETER COYLE

ATTORNEY & LOBBYIST, LARKIN HOFFMAN

MARY SCHWEICH BATC PUBLIC POLICY ASSISTANT

KATIE ELDRED BATC PRESS SECRETARY

REMI STONE

LARRY REDMOND BRIAN HALLORAN

BAM EXECUTIVE VICE PRESIDENT

LOBBYIST, REDMOND LOBBYIST, REDMOND & ASSOCIATES & ASSOCIATES

A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES

2015 Legislative Wrap-Up

•

5

summary

With the sprinkler mandate now in effect the legislature positioned a repeal of the mandate as part of final policy negotiations. Once again Governor Dayton refused to budge on the issue and it was not included as part of the final bill.

We are not giving up. We now look to the legal challenge of the mandate at the Minnesota Court of Appeals.

Sprinkler Repeal Again Blocked by Dayton – We Now Turn Our Attention to Our Day in Court (SF 2101 Omnibus Jobs, Economic Development, Housing, & Energy Appropriations) Authors: Sen. David J. Tomassoni and Rep. Pat Garofalo BATC Position: Support Sprinkler Repeal Outcome: Did not pass Throughout the 2015 session BATC maintained discussions with key stakeholders and a bi-partisan group of legislators committed to repealing the sprinkler mandate. The result? We entered the final negotiations of the session with our strongest bi-partisan votes from both the House and Senate. BATC sprinkler language landed in two major spending bills and was a centerpiece of the global discussions in the last minutes of the session. Unfortunately we found that the Governor remains unmovable on this issue, despite bi-partisan support for homeowner choice. Amidst that pressure and the threat of a veto, legislative leaders relented and agreed to remove our sprinkler language from the bill.

In our five-plus years of working to prevent this unnecessary mandate, we’ve made remarkable progress.

Despite the many obstacles, not the least of which is our Governor, we’ve twice found ourselves in end of session discussions, with this most recent effort bringing us incredibly close, just hours from adjournment.

The fight continues. Already in play is our legal challenge at the Minnesota Court of Appeals to the onerous building and energy codes. Our court date is set for mid-July. Hearing from our members with regard to the impact of this mandate, and knowing that sprinkler proponents want to extend this mandate to all newly constructed homes, we recognize that this battle must continue.

A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES

2015 Legislative Wrap-Up

•

7

summary

An energy code performance path is a key element to making the latest code more usable & affordable. After BATC’s bill was introduced to create an energy rating index, a deal was struck with DLI to establish an alternative way to achieve our performance path objectives without entering into a rule making process. This victory will give builders much-needed trade-offs when it comes to meeting energy standards.

8

•

2015 Legislative Wrap-Up

A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES

Energy Performance Path – Pathway Created for Energy Code Relief (SF 2101 Omnibus Jobs, Economic Development, Housing, & Energy Appropriations) Authors: Rep. Bob Vogel BATC Position: Support Outcome: Performance Path deal reached with DLI BATC scored a key victory on one of our top 2015 priorities when we gained the commitment from the MN Department of Labor and Industry (DLI) to coordinate the build-out and promotion of an energy code performance path. New to the code this cycle, the performance path allows for energy modeling of a home pre-construction. If the simulated performance of the home is at or below the energy line established by the code, a builder has flexibility on insulation (attic, wall system) and sets the stage for a streamlined energy code inspection/enforcement process.

The Performance Path in the Energy Code Wasn’t Usable The Minnesota energy code currently has a performance alternative, but the software used needs to be updated. BATC will be working with the leading ratings software company to ensure that our new energy code can be modeled. DLI has pledged in writing to assist with this effort.

Legislative Action Progressed this Issue Rep. Vogel introduced HF 1977, which was included in the House Jobs & Energy Omnibus bill. The bill would require DLI to enter a rule making process to create an Energy Rating Index (ERI) for performance path compliance. After concerns were raised by DLI and others, BATC worked with DLI to establish an alternative way to achieve our performance path objectives without entering into a rule making process.

What Trade-Offs are Available for Builders Meeting the Energy Performance Standard?

Builders can now change certain code-required insulation levels, as long as the house still performs at or below the required standard.

Some trade-off examples are: • • • •

R-20 in wall and rim joist cavities R-49 attic insulation .32 U factor windows (fenestration) Hot water pipe insulation

MORE INFORMATION: http://wdoc.house.leg.state.mn.us/leg/LS89/HF1977.0.pdf

A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES

2015 Legislative Wrap-Up

•

9

summary

Buffer policy language was passed in the closing moments of the regular session, then vetoed and passed again in the Special Session.

BATC engaged with the DNR & BWSR in discussions to ensure that homebuilding sites were exempt from the new buffer requirements.

They are in two key ways: buildings and any areas covered by a NPDES water quality permit are not impacted by the new rules.

Buffer Policy Changes – Ag Lands Subject to New Buffer Rules (SF 5 - Omnibus Environment & Agriculture Bill ) Authors: Rep. Denny McNamara (R-Hastings); Sen. John Marty (DFL-Roseville) BATC Position: Neutral Outcome: Passed into Law After months of debate and considerable controversy, buffer policy language aimed at agricultural land uses was passed in the closing moments of the regular session. Buffer policy language was placed in the omnibus environment bill after extensive negotiations. Funding for the buffer policy was contained in the Legacy Bill, which passed the House, but ran out of time in the Senate. The bill re-emerged in the Special Session and passed.

BATC engaged the Department of Natural Resources (DNR) & Board of Water and Soil Resources (BWSR) in discussions, confirming throughout that homebuilding sites were exempt from the new buffer requirements. The final product reflects that exemption in two key ways – the first is the road/trail/building/ structure carve out, and the second is the exemption for areas controlled and covered by National Pollutant Discharge Elimination System (NPDES) water quality permits.

NEW BUFFER RULES EXEMPTIONS AND NO-NEW REQUIREMENT AREAS/ACTIVITIES • Roads/Trails/Buildings/Structures • Inundated Crops, Alfalfa seeding, Enrolled in CRP • Tile line installation and maintenance • Areas covered by NPDES water quality permits • “No-fault” clause to address acts of nature • No permit/permission needed; SWCD Validation optional

(Note: lawns, forests, hayed land and other areas with perennial vegetation meet the requirement.)

MAPS • Maps will be created for Public Waters and Public Drainage Systems subject to the required buffer WATERS COVERED/WIDTHS • Public Waters - 50 foot average buffer width; no narrower than 30 feet • Public Ditches - 16.5 foot minimum width • OR alternative practices (applies to both Public Waters and Public Ditches) • Other Waters determined by SWCDs and adopted into Water Management Plans to accomplish targeted voluntary measures

COMPLIANCE • SWCDs provide correction letters when noncompliance occurs • Local/State $500 Administrative Penalty Order for Public Waters/ Ditches • State funds can be withheld for non-implementation SOIL EROSION • Local/State enforcement with $500 Administrative Penalty Order, without local ordinance, unless Cost-Share not available TIMELINE • Public Ditch buffers not dependent on redetermination trigger • Buffers need to be installed on Public Waters by November 2017; on Public Ditches by November 2018.

• Landowners who have applied for conservation programs or initiated a ditch authority process can be granted a one-year extension, but only until November 1, 2018.

CONFERENCE COMMITTEE (as adopted 5-18-15)

LANDOWNER FINANCIAL ASSISTANCE • Drainage law used more flexibly to provide compensation for buffers • RIM Buffer Easements – Clean Water Fund and Outdoor Heritage Fund in Legacy Bill (passed by House, not passed in Senate) • USDA Conservation Reserve Program (CRP): federal funds available for contracts to riparian landowners • RIM/CREP Easements - Clean Water Fund in Legacy Bill (passed by House, not passed in Senate) • SWCDs are point of contact for requirements and technical assistance SWCD BASE CAPACITY • $11M per year (Clean Water Fund in Legacy Bill - passed by House, not passed in Senate)

PROGRAM FUNDING

(DNR mapping + BWSR/SWCD implementation) • Legacy Bill’s Clean Water Fund includes (passed by House, not passed in Senate): • $5 million to BWSR for local government implementation • $650,000 for mapping to DNR

A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES

2015 Legislative Wrap-Up

•

11

summary

This session legislators took a long look at the Met Council’s planning authority and how it is governed. While multiple bills were introduced to look into how the organization is run, none advanced. Look for this issue to re-emerge in 2016.

12

•

2014 Legislative Wrap-Up

A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES

Met Council Governance – Proposals Aplenty in House; Senate and Governor Less Interested in Met Council Fixes (Multiple bills introduced and debated throughout the session) Authors: Rep. Rep. Jim Nash (R-Waconia); Rep. Linda Runbeck (R-Circle Pines); Rep. Tony Albright (R-Jordan); and Sen. Scott Dibble (DFL-Minneapolis) BATC Position: Support study and implementation of governance changes to appoint and stagger Council member terms; neutral on greater legislative oversight of Council activities.

Outcome: Of the several bills proposed and debated, none were passed into law.

The House moved bills to the floor to change the Met Council’s governance structure and require greater legislative oversight into their activities; the Senate passed a bill to study governance. In the end there was no agreement on the study portion.

On the governance side of things - various House bills proposed five items: • Establishing four-year, staggered terms for Metropolitan Council members.

• Requiring Metropolitan Council members to be local elected officials.

• Requiring the four local elected officials on the nominating committee to be appointed by local government associations instead of the governor.

• The 16 council members to elect a 17th person to serve as chair, instead of the governor appointing a chair.

• Providing for a study of governance options by a stakeholder group to return recommendations to the legislature in 2016.

The Senate met the House on just one of the five governance proposals, appearing to agree to study the Met Council’s make-up and report back to the legislature. Perhaps indicative of a broader 2015 theme, the House and Senate couldn’t agree on the composition or scope of the governance study and it failed to pass into law.

On the policy side - the House stood alone in its effort to reign in the Met Council by limiting their power in certain instances, and requiring legislative approval in other areas. Specifically: • Changing the composition of the Metropolitan Council from 16 members appointed by and serving at the pleasure of the governor from districts to 14 county commissioners, two from each metropolitan county appointed by the respective county boards and serving no more than two, twoyear terms (staggered).

• Changing council member compensation from $20,000 per year to per diem and expenses that are not otherwise paid for by the county.

• Changing the vote required for the council to adopt any policy, plan, or budget.

• Eliminating the authority of the Metropolitan Council to require local comprehensive plan amendments in response to council policies, plans, and system statements.

• Creating a Blue Ribbon Commission to study and make recommendations on the governance structure, powers, and duties of the Metropolitan Council.

With no interest from the Governor’s Office or Senate to engage in a policy discussion regarding Met Council authority and powers, the bill failed to advance and the issue will remain on the desks for action in 2016.

A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES

2015 Legislative Wrap-Up

•

13

summary

Wetlands Conservation Act. Allows wetland replacement done through a new in-lieu fee program to be completed after the wetlands being replaced are drained/filled. Passed in special session omnibus environment bill.

14

•

2014 Legislative Wrap-Up

A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES

Wetlands Conservation Act Update --New Cash-in-Lieu Option for Wetland Replacement in the Works (SF 5 – Omnibus Environment and Agriculture Bill) Authors: Rep. David Hancock (R-Bemidji); Sen. John Marty (DFL-Roseville) BATC Position: Support Changes to the Wetlands Conservation Act (WCA) Outcome: Passed in Special Session in Omnibus Environment Bill Prior to the start of session the Board of Water & Soil Resources (BWSR) proposed a concept which would create a cash-in-lieu system for Wetland mitigation and set the stage for an incremental WCA rule update.

BWSR achieved general consensus among all stakeholders to create the cash-in-lieu of wetland mitigation system, a cornerstone of the proposal. Other specifics: In-lieu fee program - Allows wetland replacement done through a new in-lieu fee program to be completed after the wetlands being replaced are drained/filled. Expands the authority BWSR has under its wetland banking program and allows the board to establish in-lieu fee payment amounts. Appropriates the payments to the board for establishing replacement wetlands and administering the wetland banking program.

Evaluation - Requires BWSR to establish an interagency team to help identify and evaluate potential wetland replacement sites and specifies the membership of the team.

Wetland stakeholder coordination - Requires the BWSR to “foster mutual understanding and provide recommendations for improvements” regarding the management of wetlands and related resources. Allows BWSR to convene informal working groups or work teams to provide recommendations, information, and education for those purposes.

Wetland functions for determining public values - Requires BWSR to identify high priority areas for wetland replacement and exempts designations of high priority areas from rulemaking requirements. Allows local units of government to recommend priority areas to BWSR through local water plans.

Report - Requires BWSR, in cooperation with the Department of Natural Resources, to report to the legislature by March 15, 2016, on the proposals to implement high priority areas, in-lieu fees, and alternative actions eligible for wetland replacement credit. Requires the board and department to consult with stakeholders and agencies in developing the report.

A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES

2015 Legislative Wrap-Up

•

15

summary

A proposal to provide funding for a feasibility study regarding state assumption of the section 404 permit program under the federal Clean Water Act moved ahead. This will provide the homebuilding industry the opportunity to participate in this discussion which could provide a smoother review process for new development.

Federal Clean Water Act Section 404 Permit Program – Studying the Feasibility of Bringing 404 Review to Minnesota (SF 5 – Omnibus Environment and Agriculture Bill ) Authors: Rep. Denny McNamara (R-Hastings); Sen. John Marty (DFL-Roseville) BATC Position: Support Outcome: Passed in Special Session in Omnibus Environment Bill Concerns about the management of the 404 permit program have been raised at BATC as the delays have become unmanageably long. Local units of government are experiencing similar challenges and initiated HF 846 to advance the concept of a transfer of administration from the federal government to our state.

The result of their discussion was Board of Water & Soil Resources (BWSR) and Department of Natural Resources (DNR) being tasked with a study of the feasibility of the state assuming administration of the section 404 permit program of the federal Clean Water Act. This bill provides funding for a feasibility study regarding state assumption of the section 404 permit program under the federal Clean Water Act. Section 404 governs dredge and fill activities in certain waters and is currently administered in Minnesota by the United State Army Corps of Engineers. States may assume administration of the section 404 program provided certain conditions are met and the state receives approval by the United States Environmental Protection Agency (EPA). Specifically, the bill: • Appropriates an unspecified amount of money to the BWSR and the DNR to study the feasibility of the state assuming administration of the section 404 permit program under the federal Clean Water Act. • Requires the study to include certain elements, including cost estimates, potential efficiencies, and administrative changes needed.

• Establishes a steering committee to oversee the study and specifies the steering committee’s membership. Requires the study to be submitted to the legislature by January 1, 2016.

A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES

2015 Legislative Wrap-Up

•

17

summary

A 6-year code cycle is now permanent, solidifying the code cycle that the industry has become accustomed to over the past 15 years.

Industry supported language was put into a bill to clarify the residential code cycle and grant additional implementation time and code access prior to enforcement.

Codes Technical – 6-Year Code Cycle Now Permanent (HF 539/SF 201) Authors: Rep. Tama Theis (R-St. Cloud); Sen. John Pederson (R-St. Cloud) BATC Position: Support Outcome: Passed in Department of Labor and Industry Technical Bill Industry-supported language was passed and signed into law to clarify a permanent six-year code cycle and an extended implementation period when a new code is adopted. Specifically: • Adoption of code. Beginning with the 2018 edition of the model building codes and every six years thereafter, the commissioner shall review the new model building codes and adopt the model codes as amended for use in Minnesota, within two years of the published edition date. The commissioner may adopt amendments to the building codes prior to the adoption of the new building codes to advance construction methods, technology, or materials, or, where necessary to protect the health, safety, and welfare of the public, or to improve the efficiency or the use of a building.

• The commissioner shall act on each new model residential energy code and the new model commercial energy code in accordance with federal law for which the United States Department of Energy has issued an affirmative determination.

• A rule to adopt or amend the State Building Code is effective 180-270 days after publication of the rule’s notice of adoption in the State Register. The rule may provide for a later effective date. The rule may provide for an earlier effective date if the commissioner or board proposing the rule finds that an earlier effective date is necessary to protect public health and safety after considering, among other things, the need for time for training of individuals to comply with and enforce the rule.

• Copies of the code. Requires that copies of the code, including updates done by reference to other codes, be provided free of charge. The commissioner must publish an electronic version of the entire adopted rule chapter on the department’s Web site within ten days of receipt from the revisor of statutes. The commissioner shall clearly indicate the effective date of the rule on the department’s Web site.

A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES

2015 Legislative Wrap-Up

•

19

summary

A permanent workforce housing grant program was proposed to expand on the 2014 pilot program. The plan creates grants to build market rate housing in low-vacancy areas outside the metro. It passed during the special session in the omnibus jobs bill.

Workforce Housing Initiatives – Awareness of Housing Affordability Challenges Grows (HF 3) Authors: Rep. Pat Garafolo (R-Farmington); Sen. David Tommassoni (DFL-Chisolm) BATC Position: Support Outcome: Passed in Special Session’s Omnibus Jobs Bill Language revived in the special session established a permanent workforce housing grants program to expand on a pilot program begun in 2014. Under the plan, it creates a workforce housing grants program administered by DEED for grants to cities and communities to build market rate housing in low-vacancy areas outside the seven-county metro. This section also provides that the grants cannot exceed 25 percent of the project cost and that the commissioner must report back to the legislature on the projects funded through the program.

A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES

2015 Legislative Wrap-Up

•

21

summary

Street Improvement Fees. The bill proposed would have allowed cities to create street improvement districts and street improvement fees. BATC and the business community opposed this legislation. The bill was successfully stalled.

22

•

2013 Legislative Wrap-Up

A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES

Defense – Protecting the Industry Against Harmful Legislation (HF 778) Authors: Sen. Carlson (DFL-Eagan) BATC Position: Oppose Outcome: Bill successfully stalled This annual proposal to authorize cities to create special taxing districts to fund street improvements failed to pass due to strong business community opposition. Following the special carve-out language we negotiated early in the discussion, BATC remained largely in a watchful role as this issue moved through the process. Expect this issue to continue to be forwarded by local government groups, who are seeking: • A “street improvement district” is defined as “a geographical area designated by a municipality and located within the municipality within which street improvements and maintenance may be undertaken and financed according to this section.”

• The bill would authorize a city to establish a municipal street improvement district by adopting an ordinance. The city may defray the costs of municipal street improvements and maintenance by charging fees to all property located in the district. A street improvement district must not include property already in another street improvement district.

The bill provides the process for a city to adopt a street improvement district. Before establishing a district or authorizing a street improvement fee, the city must propose and adopt a street improvement plan that identifies the location of the district and estimates the costs of the proposed improvements. The fees may be collected for a period of 5 to 20 years. Notice of a public hearing on the proposed plan must be mailed to all affected landowners at least 30 days before the hearing. Notice must also be posted for at least 30 days before the hearing. At the public hearing, the city council must present the plan and affected landowners must have the opportunity to comment before the council considers adopting the plan.

It provides that revenue from street improvement fees must be placed in a separate account and be used only for projects located in the district and identified in the street improvement plan.

As negotiated by BATC, the bill prohibits a city from imposing a street improvement fee on an unimproved parcel until the later of three years after either (1) the date of substantial completion of paving the previously unimproved street; or (2) the date which a structure is built and first occupied.

A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES

2015 Legislative Wrap-Up

•

23

summary

Once again builder-pay attorney fees for warranty disputes were brought up. BATC and BAM worked to put out the fire on this proposal fast. The bill was successfully blocked.

SF 104 – Builder-Pay Attorney Fees in Warranty Disputes (SF 104) Authors: Sen. Barb Goodwin (DFL-Columbia Heights) BATC Position: Oppose Outcome: Bill successfully stalled Early-session efforts to include builder-pay attorney fees in warranty disputes were halted by BATC and BAM. While proponents cited a need to protect homeowners’ attorney costs in warranty disputes, homebuilding industry representatives countered that the American Rule of each party paying their own way serves our system best. By not creating incentives to push a dispute deeper into the formal courts process, both parties are motivated to settle at the earliest possible level, minimizing costs for all.

A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES

2015 Legislative Wrap-Up

•

25

THANK YOU We want to thank all BATC members for their support, grassroots advocacy and commitment to our shared cause of creating a better regulatory environment for your businesses operations. It is an honor to represent this industry.

We encourage you to stay in touch with us in the legislative interim.

STAY IN TOUCH

PUBLIC POLICY

C O M M I T T E E JOHN RASK, Chair Hans Hagen Homes PAMELA BELZ Senior Housing Partners SCOTT BLOM ProBuild

JASON McCARTY Westwood Professional Services ANDY MICHELS Bob Michels Construction, Inc.

KENT BRANDER Civil Methods, Inc.

BOB MICHELS Bob Michels Construction, Inc.

PETER COYLE Larkin Hoffman Daly & Lindgren

SHAWN NELSON New Spaces

GEORGE CUNDY Cundy, Santine & Associate

LON OBERPRILLER Replace Housing Services Consortium, LLC

ROBERT ENGSTROM Robert Engstrom Companies

KATHLEEN OSTROM C.N. Ostrom & Son, Inc.

LARRY FRANK Arcon Development, Inc. BILL GSCHWIND Minnesota Construction Law RYAN HATTON Halleland Habicht PA

Twitter

DAVID PATTBERG Centra Homes, LLC ALDEN PEARSON Acumen Legal Advisors, PLLC BOB SCHUNICHT Landform Professional Services

NATHAN JONES Tollberg Homes, LLC

JOSEPH SPRINGER Fredrikson & Byron, P.A.

FRANK KOTTSCHADE North American Realty, Inc.

JIM STANTON Shamrock Builders, Inc

GREG LIVERMONT Andersen Windows

•

The Voice, BATC’s weekly e-newsletter

RICK PACKER Mattamy Homes

PAUL HEUER Pulte Homes of MN, LLC

26

We encourage you to stay in touch with us in the legislative interim

2015 Legislative Wrap-Up

BATC: @batctc Housing First: @housing_first James Vagle: @jvags David Siegel: @davidsiegel1

Follow BATC’s blog at blog.batconline.org

A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES

think BRICK think HEDBERG You have come to know Hedberg Supply as Minnesota’s leading distributor of natural stone. Now, you can think of us as your supplier of brick as well. We have partnered with a number of quality manufacturers to bring you only the best in brick. Hedberg is now exclusive to all hand made brick in the Twin Cities.

Whether it is match brick, extruded brick, or hand made brick, we have it in stock! Come home to Hedberg Supply for this timeless, classic, authentic product. Visit our Plymouth and Stillwater Masonry Showrooms for all of your brick and stone needs.

Plymouth Masonry Showroom (763) 225-0551

TM

BATC.org

FARMINGTON 4375 170th Street West Farmington, MN 55024

(651) 423-5048

Stillwater Showroom (651) 748-3158

PLYMOUTH 1205 Nathan Lane North Plymouth, MN 55441

(763) 545-4400

July–September 2015

STILLWATER 8400 60th Street North Stillwater, MN 55082

(651) 748-3158 BATC Digest

61

YOUR HARD WORK DESERVES RECOGNITION

Village Floor & Wall, Inc.

Be recognized by entering BATC’s Award Programs. We’ll honor your excellence in several areas, from quality and value of construction to business ethics. Enter so we can celebrate the fine work you do!

All of our awards are presented at the Building Industry Gala (BIG) Night, Thursday, October 22, 2015 at Mystic Lake.

WHY ENTER? Bragging Rights Industry Awards are a valuable addition to your marketing toolbox.

Earning a BATC award places you among the elites, gives you an edge and validation for your work.

Visit batc.org/awards for all of our award opportunities, entry information and dates/deadlines.

Creating Buzz Winning an award gives you a great reason to immediately promote your business. Tell everyone about your win—about your prospects, your buyers, your social media sphere.

Be Seen

Check out the NEW Rising Star Award!

IMPORTANT DATES JULY

AUGUST

SEPTEMBER

7/10: Builder, Remodeler & Associate of the Year entries due 7/10: Rising Star nominations due 7/31: Reggie entries due

8/7: Trillium entry opens 8/7: Builder, Remodeler & Associate of the Year evaluations close 8/7: Rising Star materials due 8/21: BIG Night registration opens 8/28: Trillium entries due

9/10: Reggie judges orientation 9/30: BIG Night early bird pricing closes

62

BATC Digest

July–September 2015

OCTOBER 10/2: Reggie judges final selection 10/22: BIG Night awards ceremony

BATC promotes our Award winners too! You’ll see your win in the Spring Parade of Homes or Remodelers Showcase Guidebooks. We send out a press release to 200 local and regional media, and we’ll help you get the news out with your own press release.

“

Our crews, project managers and homeowners enjoyed hearing about the awards, and were proud to be associated with an award-winning project. Due to the award press and social media visibility, many of our past clients and industry partners were great about passing on congratulations to our firm, and the homeowners.

Heidi Libera Streeter & Associates, Inc.

BATC.org

July–September 2015

BATC Digest

63

Develop the Next Leader in Your Business

FIRST CLASS

SEPTEMBER THIS SEPTEMBER the Builders Association of the Twin Cities is launching the BATC Leadership Institute! This learning experience is aimed at up-and-coming next leaders within BATC member companies. It aims for students to:

2015

Go Online to batc.org/leader

• Take OWNERSHIP of your company’s mission and bottom line • Have greater CONFIDENCE in decision-making • Identify and FACILITATE SOLUTIONS within your company • DEVELOP A NETWORK of peer advisors PROGRAM GOAL: The BATC Leadership Institute will prepare your employee to take a stronger and more confident leadership role in your company. The Institute will accept 15 applicants. These students will journey together for 10 months, meeting once per month.

64

Steve Wilcox, Terri Wilcox and Jerry Olson from Resultants for Business will facilitate and teach the courses. With feedback and guidance from BATC staff and BATC’s Education Committee, the courses will also utilize business leaders within BATC member companies as additional presenters.

MORE INFO & APPLICATION FORM AT WWW.BATC.ORG/LEADER

BATC Digest

July–September 2015

Lori Johnson, Bryan Kemnetz, Dan Raleigh, Eric Graf, Mike Mazzara, Tom Swedenburg and Jodi Christensen

Traditions begin here.

Construc�on lending for over 100 years.

Custom quality.

Very surprising price.

Do you need that sweet spot of quality, price and service? You’ll find it at Synergy Products! Our expert staff will help you make your selections and complete your Wellborn cabinet order quickly. Catching every last detail means your cabinets deliver on time and on budget, every time.

•

Models

•

Specs

•

Pre‐solds

•

Construc�on and Lot Financing

•

Land Acquisi�on and Development

W W W . S Y N E R G Y- T R T. C O M

651.777.8365 Your Community Bank Since 1911 Member FDIC

Windows • Doors • Cabinets 7003 Lake Street Minneapolis MN 55426 MN License BC667153

BATC.org

MINNEAPOLIS SHOWROOM

952 224 2202

lakeelmobank.com

July–September 2015

BATC Digest

65

did you know ?

BETTER BUSINESS BUREAU:

Reviews vs. Complaints

The BBB has long been where customers go to complain about a business (which we hope none of you have experienced).

But in this age of social media, about a year ago the BBB determined it was time to open the door to more positive commentary. Thus “Customer Reviews” were born.

The BBB complaint process remains the same — businesses are notified within two days of receiving a complaint, and have 14 days to respond. Unresolved complaints can negatively affect your BBB rating.

Reviews, on the other hand, won’t affect your rating.

Consumers can’t make a complaint and write a review about the same transaction either. And, before any reviews are posted, the business will be notified and offered three options: ignore, respond or not my customer. If ignored, the post automatically goes up after 10 days. If the business responds, the review and response are immediately posted.

If the business says this is not their customer, the reviewer is contacted to provide proof that they indeed did business with this company. Like comIf you plaints, reviews remain are a BBB accredited on the BBB website business, don’t forget to for 36 months. include that on your

ParadeofHomes.org company profile (free if you’re in the Parade of Homes, $200/year for associates or $400 for non Parade of Homes/ Remodelers Showcase contractors).

66

BATC Digest

July–September 2015

Any Builder, Inc. Phone: (123) 456-7890 Fax: (123) 456-7890

5 Customer Reviews on Any Builder, Inc.

www.abcsupply.com

At ABC Supply, you have a choice of top brands

Your Competitive

and products. You’ll work

Edge

with a knowledgeable

Experience the ABC Supply difference for yourself

in a forever-changing

and trusted distributor who understands your company’s service needs and gives you an edge market.

Roofing • Siding • Windows • Doors • Gutter • Commercial 10141 Woodcrest Dr. NW • Coon Rapids, MN 763-757-5077

5 McLeland Rd., Ste. B • Saint Cloud, MN 320-251-6990

5130 Industrial St. • Maple Plain, MN 763-479-2966

150 State St. • Saint Paul, MN 651-224-3675

2727 26th Ave S • Minneapolis, MN 612-729-7353

14399 Huntington Ave. Savage, MN 952-736-8384

3754 85th St. NW • Oronoco, MN 507-367-2211 BATC.org

July–September 2015

BATC Digest

67

batc foundation

You Are Making a Difference!

Basement Renovation

Working with Rebuilding Together Twin Cities and Build Partner, Finished Basement Company, the BATC Foundation is helping a former registered nurse who experienced brain damage during a routine surgery. Left with an extreme sensitivity to light, Karen needs to be able to control the light coming into her home.

Helping to make her basement more livable gives her a space where she can spend time during daylight hours without experiencing the headaches and other symptoms that exposure to light brings.

Finished Basement Company. has nearly completed the project, which included finishing two rooms, a bathroom, installing a sump pump system and building a custom dog washing station for Karen’s service dog.

Honoring a Wounded Veteran

Perri Graham-Raff BATC Foundation Executive Director perri@batc.org 651-697-7563

Bluebird House 20th A NNIVERSARY

The BATC Foundation is proud to work with Homes for Our Troops and Build Partner Accent Homes to provide a fully accessible home for Marco Solt, his wife Gena and their son Devin. Currently being built in Ramsey, MN, the home will feature more than 40 accommodations to provide accessibility for Marco, who lost both legs when his vehicle struck an IED while serving in Afghanistan. The project is expected to be completed this fall.

This 1960’s rambler is home to four special young men, all residents of Homeward Bound’s group home named Bluebird House. The BATC Foundation is thrilled to be working with Build Partner Vujovich Design + Build to provide more space including an additional bedroom, bathroom, family room, and main floor laundry room. A family room means a place where all four men can gather together to watch a movie or visit with multiple family members.

Making a House a Home

Your support has made all of these projects possible—THANK YOU! Thanks to everyone who has donated dollars, materials or labor for these projects!

Save the Date!

4.16.16

THE BATC FOUNDATION IS GOING TO DINNER AND YOU’RE INVITED! For several years we’ve sponsored a successful luncheon honoring our volunteers and donors. We are pleased to announce that our 2016 gathering will be an evening affair. So mark your calendars and plan to attend our special evening.

Saturday, April 16, 2016 Metropolitan Ballroom We will enjoy dinner, dancing, bidding at our signature Silent Auction and generally have a great time—all while supporting our favorite charity!

CONTINUES ON 42

68

BATC Digest

July–September 2015

Leave a Legacy The BATC Foundation hopes to continue to provide help to those in our community for a long time to come.

If you’re interested in learning more about how to support the BATC Foundation in your will or other estate plans, contact Executive Director, Perri Graham-Raff.

BATC.org

July–September 2015

BATC Digest

69

batc foundation

Helping the Homeless BATC Foundation Bringing Help to the Homeless

DID YOU KNOW? • 95% of homeless youth under 18 are enrolled in school • 48% of homeless adults have children with them • More than half of homeless children with their parents are under age five • Less than 25% of homeless adults are dealing with substance abuse

With more than 14,000 homeless people on the streets of Minnesota on any given night, your Foundation has been looking for the right way to help. Now we’ve found it! We’re excited to announce our newest partnership with HomeAid America, a national organization that has been working to help homeless people and families for 25 years. They’ve successfully brought their programs to other Home Builders Associations around the nation, and are a perfect fit for us.

The Parade of Homes and Remodelers Showcase Dream Home Program has long been one of our most successful fundraisers for the Foundation.

This Spring was no exception, raising over $43,000. And, we’ll be making great use of these dollars as we complete three exceptional new projects this year.

Thank you to our 2015 Spring Dream Home Builders and Remodelers

BATC Digest

July–September 2015

20th A NNIVERSARY

Our goal is to meet the most critical needs first, with hopes of starting our first project in 2016. There will be plenty of opportunity for you to get involved. We’ll be looking for build partners, and organizing volunteer days—a great way to bring your staff together to serve others.

While we’d love to build new houses for every one of those families, that’s certainly not possible. What is doable, however, is for us to bring our

Fundraising Success

70

specific skillset to help repair, renovate, and maintain homeless shelters that are already here.

For those of us who should never be allowed near a hammer, we’re also planning to schedule time to make HomeAid Care Kits—packaging toiletries and other items that will make a difference in the lives of those without permanent housing.

Hartman Homes Dream Home #116 in Stillwater

Ridge Creek Custom Homes Dream Home #268 in Minneapolis

Renaissance Builders Dream Home #273 in Wayzata

Xpand, Inc. Dream Remodeled Home #R20 in Chaska

We had another great fundraiser for the Foundation this spring, our Builders WareHouse Sale.

Held on April 11th, the sale included a ton of fabulous items, and welcomed hundreds of shoppers. At the end of the day the Foundation raised nearly $10,000!

Thanks to the great folks at Bell Mortgage for providing our warehouse space and plenty of support.

BATC.org

July–September 2015

BATC Digest

71

5 SEO STRATEGIES FOR YOUR BUSINESS No doubt you’ve heard the term Search Engine Optimization by now. In this modern age, you would be hard-pressed to find someone who hasn’t! But are you effectively optimizing your site to create a strong web presence for your company? Here’s a few strategies that will keep SEO in the forefront of your mind, and your business on the front page of your customers’ search engines:

1

2

3

4

5

Local Search is Key for Your Business

Suck-Up to Google

Tap into Google’s Secret Algorithm

How Social Media Drives SEO

Continue to Create Content

According to the National Association of REALTORS® Digital House Hunt Study, “seven out of 10 buyer leads that come from your website started with local search.” That means nearly 70 percent of home shoppers began their search by using local terms, such as “Minneapolis Homes for Sale,” or “New Construction in Minnetonka.” You should make sure your website includes the appropriate terms, and if you’re interested in pay-per-click or other online advertisements, remember to start with those words.

Want a better SEO ranking? Make Google happy! According to findings from Search Engine Watch, “the top listing in Google’s organic search results receives 33 percent of traffic.” Compare this with a mere six percent for fifth position. The newest Google roadblock is for non-mobile friendly sites. If yours isn’t designed for mobile readership, call your web developers today!

Delivering strong content, especially content that is recognized by your social media followers (through LIKES, shares, re-tweets, etc.), can often make a huge dent in your SEO results. Social media can also be a natural bridge to your website.

The majority of visitors to our ArtisanHomeTour. org website, for example, come through our Parade of Homes Facebook advertisements and posts. If you don’t have time to write a regular blog, there are great services that can help.

Just don’t create a blog and let it sit idle for months.

One of the quickest ways to increase SEO is through editorial links.

That is, by creating content that others will want to share with their readers. These are powerful because they come from other publications in your niche market. Getting involved with BATC’s editorial process is the easiest way for you to take advantage of editorial links and drive traffic. Submitting photos for the Parade of Homes social media page or content for our Parade of Homes blog is one effective way to share your story. Contact Katy Baar at katy@batc. org for more information.

72

BATC Digest

July–September 2015

Not so secret after all! The Local Search Ranking Factors Survey, conducted each year, brings insight into the top factors that contribute to a better SEO Google rating.

In 2014, the survey reported 50 ranking signals to help get the most bang for your SEO buck. One easyto-accommodate top ranking suggested the importance of having a Google My Business Page. When searchers skip traditional search and go straight to Google Maps for their information, your information will pop up.

We deliver more than building materials.

Since 1930, Scherer Bros. has proudly partnered with Twin Cities Builders and Remodelers to create their clients’ dream homes.

Known for our industry expertise and exceptional service, we look forward to continuing the tradition for years to come.

Lumber • Windows • Millwork • Trusses • Roofing • Siding Decking • Cabinets • Custom Closets

www.schererbros.com

BATC.org

July–September 2015

BATC Digest

73

Beauty And Durability – The Popular Beauty AndAmerica’s DurabilityHomes – The Popular Choice For Beauty And Durability – The Popular Choice For America’s Homes Beauty And Durability – The Popular Choice For America’s Homes Get the look of real craftsmanship Choice For America’s Homes and the

confithe dence proven product. With Get lookofofa real craftsmanship andmore the than Get the look craftsmanship andmore the than 18 years of sales history and 8 billion square confi dence ofofa real proven product.

With Get the look of real craftsmanship and thenext confi dence of a proven product.

With more than feet in the market, LP® SmartSide® is the 18 years of sales history and 8 billion square confi dence a proven product.

With more than 18 years of sales history and 8 billion square generation of premium engineered wood siding! feet in the market, LP® SmartSide® is the next 18 years ofmarket, sales history and 8 billion square feet in the LP® SmartSide® is the next generation of premium engineered wood siding!

LPSmartSide.com feet in the market, LP® SmartSide® the next generation of premium engineered is wood siding!

LPSmartSide.com generation of premium engineered wood siding!

LPSmartSide.com LPSmartSide.com © 2015 Louisiana-Pacific Corporation. All rights reserved.

LP and SmartSide are trademarks of Louisiana-Pacific Corporation. © 2015 Louisiana-Pacific Corporation. All rights reserved.

LP and Louisiana-Pacifi SmartSide are trademarks of Louisiana-Pacifi c Corporation. © 2015 c Corporation.

All rights reserved.

LP and SmartSide are trademarks of Louisiana-Pacific Corporation. © 2015 Louisiana-Pacific Corporation. All rights reserved.

LP and SmartSide are trademarks of Louisiana-Pacific Corporation.

THANK YOU TO OUR

2015 SPONSORS

TRAILBLAZER

THE EVOLUTION OF INSULATION ™

VISIONARY

PIONEER

74

BATC Digest

July–September 2015

Granite counters, marble floors and Icynene. (Yes, Icynene.)

As a builder, you build homes with only the best material. So, if you want homes that stand out, choose Icynene spray foam insulation. To learn about all the different advantages visit icynene.com/yes. And remember to always ask for it by name.

icynene.com/yes The Evolution of Insulation.

BATC.org

July–September 2015

BATC Digest

75

join BATC

Contact our Membership Director, Deb Earl: Deb@batc. org or 651-697-7562.

membership

meet BATC’s newest members Joining the Builders Association of the Twin Cities is the first step in becoming more active in your industry.

Please take a moment to welcome the newest members of our Association.

Act Roofing, Inc.

DM Wallace Custom Homes, LLC

Midwest Specialty Products

Roessler Public Relations, LLC

1000 Highview Drive Webberville, MI 48892 Eric Bugenhagen 517-521-3545 e.bugenhagen@ applegateinsulation.com www.applegateinsulation.com

Forest Specialties

Patina, Inc.

Sears Commercial

Bachman’s Floral Gift & Garden

10301 Woodcrest Drive NW Coon Rapids, MN 55433 Wendy Sedlacek 763-767-3623 wsedlacek@homfurniture.com www.gabberts.com

Perl Mortgage

Sierra Pacific Windows

Thompson Construction, LLC

Haworth & Company, Ltd.

Plan Concrete & Asphalt, LLC

SitesForBuilders.com

TitleSmart, Inc.

7393 Bush Lake Road Edina, MN 55439 Harvey Johnson 612-412-4140 info@actroof.com www.actroof.com

Applegate Insulation MFG

4607 Humboldt Avenue Minneapolis, MN 55412 Mike Kelly 763-235-2050 mike.kelly@fsmn.co

Gabberts/HOM Furniture

6010 Lyndale Avenue S. Minneapolis, MN 55419 Karen Bachman 612-861-9227 kbachman@bachmans.com

Boulder Contracting, LLC 2322 - 171st Lane Ham Lake, MN 55304 Brian Jansen 612-369-2746 brian@bouldercontractingllc.com www.bouldercontractingllc.com

Builder Plans Direct P.O. Box 258175 Madison, WI 53713 Tom Nicewander 608-213-0635

4712 Cedar Avenue S. Minneapolis, MN 55407 Adam Johnston 612-200-1800 ajohnston@dmwallacehomes.com www.dmwallacehomes.com

1880 Livingston Avenue, #201 West St. Paul, MN 55118 John Mogensen 651-451-9373 jmogensen@haworthco.com www.haworthco.com

Keller Williams Integrity Realty

2680 Snelling Avenue N. Roseville, MN 55113 Timothy Dold 612-751-4663 timdold4homes@gmail.com

CBS Construction Services, Inc.

11124 Zealand Avenue N. Champlin, MN 55316 Kenneth Hinz 763-569-4020 khinz@cbsconstruct.com

Klein Bank

3000 County Road 42 Burnsville, MN 55337 Ron Allar 952-361-9243 r.allar@kleinbank.com

1301 West 3rd Avenue Shakopee, MN 55379 Justin Weltzin 952-564-1088 justin@bestquartz.com www.bestquartz.com 404 East 48th Street Minneapolis, MN 55419 Christine Ward 612-823-9700 christinew@patinastores.com www.patinastores.com 2936 W. Belmont Avenue Chicago, IL 60618 Mary Baymler 612-670-9928 mbaymler@perlmortgage.com

215 – 10th Avenue S., #501 Minneapolis, MN 55415 Peg Roessler 612-200-6800 peg@pegroessler.com www.pegroessler.com 732 South La Grange Road La Grange, IL 60525 Michael Ford 847-217-7790 Michael.ford@searshc.com www.sears.com 10015 – 29th Avenue N. Plymouth, MN 55441 Tom Lemke 715-748-2011 tlemke@spi-ind.com www.hurd.com

13106 Findlay Way Apple Valley, MN 55124 Joseph Plan 952-994-6032 joe@planconcrete.com www.planconcrete.com

17335 Jade Terrace Lakeville, MN 55044 Patrick North 651-341-7844 patrick@sitesforbuilders.com www.sitesforbuilders.com

Prefinished Staining Products, Inc.

Smith Partners Incorporated

4575 Anston Road Green Bay, WI 54313 Joe Grandbois 920-865-1144 jgrandbois@prefinishedstaining.com www.prefinishedstaining.com

Todd Polifka Brush Masters John Rask Hans Hagen Homes, Inc. Jason McCarty Westwood Professional Services Inc.

76

BATC Digest

Joe Miller Country Joe Homes Bob Bennet Lyman Roofing & Siding Craig Plekkenpol Plekkenpol Builders, Inc. Lowell Pratt Pratt Homes

Brian Robbins Pella Windows & Doors Curt Swanson Swanson Homes Shawn Nelson New Spaces Daryl Doehr Marvin Windows & Doors

July–September 2015

661 Heron Court N. Oakdale, MN 55128 Sarah Kowal 651-487-5606 john@thehandymancan.com thehandymancan.com

505 County Road 19 Mound, MN 55364 Dorian Thompson 952-393-5349 dorian@thompsondb.com www.thompsondb.com

683 Bielenberg Drive, #203 Woodbury, MN 55125 Heather Richard 612-220-3245 hrichard@title-smart.com www.title-smart.com

SPIKE?

2

LAST QUARTER

The Handyman Can, Inc.

WANT TO BE A

MEMBER SPIKELIGHT NEW MEMBER

200 Lake Street East Wayzata, MN 55391 Doris Nelson 952-475-5243 dnelson1@tcfbank.com www.tcfbank.com

20045 Manor Road Deephaven, MN 55331 Phil Smith 952-471-9220 phil@smithpartners.net www.smithpartners.net

See a complete list of Spike points at batc.org

1

TCF Bank

NEW MEMBERS LAST QUARTER

Meg Jaeger Mega Homes, Inc. Pattie Martin Twin City Fireplace & Stone Co. Jim Kuiken Accent Homes, Inc.

3

It’s easy! Just start recruiting new members for BATC. With your first new member you become a Spike candidate. As soon as you bring us six new members you are officially inducted into the exclusive NAHB Spike Club with all the honors that bestows.

NEW MEMBERS LAST QUARTER

Chris Contreras Ryland Homes

4

NEW MEMBERS LAST QUARTER

Kori Meewes and more by Kori

MEMBERSHIP CONTINUES ON 50

www.probuild.com

NATIONAL REACH. LOCAL EXPERTISE. ProBuild is your complete solution for all your building needs. With high quality lumber and a robust selection of building products, we can provide you with the best materials for the foundation of your home. We recognize the importance of offering products that meet your high standards and lumber and wood products are what we know best. We have the necessary relationships with a cross section of North American mills that ensures our access to excellent quality, well milled wood at the right price and at the right time for our customers.

But ProBuild doesn’t stop there. We also offer a full line of windows, doors, and cabinets to put the final touches on a product you will be proud to put your name on. If you need it, we have it. Please call or come in today with all of your building needs.

BATC.org

BUILDING MATERIALS 9130 W 202ND ST LAKEVILLE, MN 55044 952.469.2116 TWIN CITIES MILLWORK AND CABINETRY 11356 215TH ST WEST LAKEVILLE, MN 55044 952.469.3466 BUILDING MATERIALS 26229 FREMONT DR ZIMMERMAN, MN 55398 763.856.2355

July–September 2015

BATC Digest

77

membership — continued

BATC MEMBERS

YOU ROCK Let us show you how much we

Iyou at our new BATC Bash

Food & Fun…Connections & Cash!

(OK, BATC Bucks but we liked the alliteration) Over the past couple of years, you’ve probably noticed that BATC has tightened our event schedule to offer primarily events with a purpose. From our two economic forecasts (Jan and July), to our Builder Day designed to enhance our work at the Capitol, to BRS and the BIG Night, we want to make sure that you’ll

We encourage all members—young, old, newbies and long-timers—to spend a few hours just enjoying the company of other BATC members. You’ll find plenty of connecting (meet new friends and catch up with old ones), great food and of course, beer and wine. You’ll even get to play a few games to up your stash

…BATC has tightened our event schedule to offer primarily events with a purpose…but there’s a case to be made for getting together to just have fun. get real value out of attending a BATC event.

of BATC Bucks for our December 3rd Auction (you know you want the winning bid on that Coach purse this year).

But there’s a case to be made for getting together to just have fun. While Golf (sold out, come to dinner tho!) and the Clay Shoot are a lot of fun, they’re just not for everyone. That’s why we’ve added one more event: The BATC BASH.

Mark your calendars, and why not challenge your peers to see who can win the most BATC Bucks.

Hope to see you on September 15th!

$

—Deb Earl and the BATC Membership Committee

A Member Appreciation Celebration!

Tuesday, September 15 | 3:00–6:00pm BATC Seminar Room & West Parking Lot

78

BATC Digest

July–September 2015

BATC Member Value and Engagement This Spring, BATC was lucky to be selected by the University of St. Thomas as one of their masters course research projects.

The program was a great way for us to gain insight into how our members view BATC, while giving these talented students a chance to do some real-world research.

We’re still reviewing their conclusions and data, but will be digging in deeper to help us address some identified challenges and fine-tune our efforts on your behalf. We want to thank those of you who responded to the member survey and to those who attended our focus groups.

BATC Buck Roulette— Just one way to grow your BATC Buck Stash

TEAM BATC

Dunk Tank Fun! Come to see BATC’s David Siegel and BATC Foundation’s Perri Graham-Raff take the plunge!

! u e o I Y W

Come be our guests of honor at the BATC Bash Member Appreciation Party!

Truck on down, so we can celebrate you. Join us for an afternoon of food, friends (make new ones, but keep the old) and libations. There will be giveaways, BATC Bucks (stock up for the December auction) and prizes.

Member Appreciation Party!

Register @ batc.org Free to attend!

BATC.org

Tuesday, September 15 | 3:00–6:00pm BATC Office

July–September 2015

BATC Digest

79

GOLF NOT YOUR FORE-TE?

2015

Then drive on down for dinner!

OPEN WEDNESDAY, AUGUST 5, 2015 THE WILDS GOLF CLUB 3151 Wilds Ridge, Prior Lake, MN 55372

All our foursomes are taken, but there’s still great networking so plan to join us for dinner, and, come early for the social & networking!

Register at batc.org

B AT C O P E N

B AT C O P E N

7 A M S H OTG U N

1 P M S H OTG U N

SOLD OUT

SOLD OUT

6PM SOCIAL

6:30PM DINNER/RAFFLE/PRIZES

REGISTER To attend at batc.org

Missed your shot at playing?

Tee times available at the BATC Foundation Golf Open on September, 22nd. Don’t miss your chance—register today! www.BATC.org

PRIZE/SIGN SPONSORSHIPS STILL AVAILABLE

OPEN BATC Digest

SEPT. 22 LEGENDS CLUB, PRIOR LAKE

2015

80

T U E S D AY

Contact nicole@batc.org July–September 2015

LIMITED SPOTS!

Sycamore Innovation in Distribution

Bedrock

Premium COLLECTION

Sequoia

SIDING WITH LASTING PROTECTION. Canyon

Elkhorn

NEW COLORS AVAILABLE IN 2015 Grizzly

DIAMOND KOTE™ PRE-FINISHING

Enhance your home with the look of real cedar without the maintenance. Also available in Mahogany, Maple, Cedar, and Chestnut. Refer to a sample for accurate color.

diamondkoteprefinishing.com

15 /30

NO FADE LIMITED WARRANTY

batc endorsed programs

member + benefits The Builders Association of the Twin Cities has brought together an impressive array of members-only benefits that positively impact your bottom line.

We seek companies that thoroughly understand the building industry and provide products at rates generally not available on the street. Give these folks a chance to see what they can do. We think you will find they can save you money and provide you better service.

2-10 Home Buyers Warranty

NE W

Earn exclusive NAHB discounts on 2-10 HBW products: Builder Backed Service Program, Front Line Warranty Services and their New Construction Home Warranty Service Agreement.

Contact Beth Kost at 763-202-3638 bkost@2-10.com | www.2-10.com

SuperAmerica Fleet Program Save money with the SA Fleet Association Fueling Program.

10¢ per gallon discount for the first 90 days, 8¢ per gallon after first 90 days.

Lisa Felts | 651-403-3267 www.safleetcard.com

GM – NAHB’s Exclusive Auto Dealer Now get an incentive of up to $1,000 on eligible purchases. See dealer for details.

GMFleet.com

Verizon Wireless Save 22% off monthly cell service or 18% off personal cell service for companies performing a significant amount of physical construction services, as well as architects, engineers, and surveyors.

Contact NPP at 800-810-3909 customerservice@mynpp.com

HBA Rebate Join our BATC members who have saved on average $2,100+ using the HBA Rebate Program. Receive rebates from manufacturers you are already using, all without any changes to your business practices. www.HBA.rebates.com

Holiday Stationstores Save 4.5 cents on every gallon of gas plus double discounts the first 90 days.

Contact Don Kels at 952-830-8889

82

BATC Digest

July–September 2015

BATC ELITE ‘15 PA R T N E R S DIAMOND LEVEL $70,000 and above BATC would not be as strong or successful without our elite sponsors.

THANK YOU TO OUR BIGGEST ASSOCIATE SUPPORTERS!

PLATINUM LEVEL $50,000–$69,999

GOLD LEVEL $35,000–$49,999

SILVER LEVEL $25,000–$34,999

Arrow

BUILDING CENTER

TM

Helping our members build their businesses through marketing, advocacy and industry connections

THE EVOLUTION OF INSULATION ™

“The Garage Door Place”

BRONZE LEVEL $15,000–$24,999 FRIENDLY CHEVROLET HARRY BROWN’S CHEVROLET JEFF BELZER CHEVROLET LUTHER BROOKDALE CHEVROLET

MERIT CHEVROLET ROSEDALE CHEVROLET SUBURBAN CHEVROLET

Windows • Doors • Cabinets

BATC.org

July–September 2015

BATC Digest

83

Y

BATC.org

B

TH

E YOUNG

PR O

SE

E

10 6 15

ED

IO SS

H OS E T

NALS

N

T

UR SIGHTS O Y O

F

Tuesday, October 6, 2015

12:30pm Minnesota Horse and Hunt Club 3300 220th St E., Prior Lake, MN 55372

Sign up as an individual or bring a team of your colleagues or business partners for an afternoon on the range.

Don’t miss out on the fun—last year’s event sold out.

Networking continues with social time then dinner. Shooting not your thing? Register and attend the social and dinner only.

n $150 per Shooter includes: Clays, shells, ear protection & dinner n $ 50 Dinner Only n Event details and registration at batc.org

SPONSORSHIPS STILL AVAILABLE— contact Nicole@batc.org or 651-697-7571

“BIG SHOT” PRESENTING SPONSOR

THE EVOLUTION OF INSULATION ™

STAFFED CONTEST STATION SPONSORS

STATION SPONSORS

84

BATC Digest

July–September 2015

Construction Lending  Purchase  Refinance

Structural Precast Concrete For 2-Level Garages

Dedicated to finding the right loan program, rate, terms and fees for each client.

Gail Vinje, Loan Officer NMLS ID #335942 (612) 670-4230 Gail@GailVinje.com GailVinje.com American Mortgage & Equity Consultants/ Company NMLS ID #150953

BATC.org

Sport Court Under Garage

What Would You Put Under YOUR Garage?

www.molin.com Phone: 651-786-7722 Email: sales@molin.com

July–September 2015

BATC Digest

85

member news

staying connected Welcome to Member News. This is the place to learn about what’s happening in the lives of BATC members. We feature awards, births, marriages, condolences, promotions, new hires, and all sorts of other milestones.

BIG NEWS

NEW PEOPLE & PROMOTIONS Hedlund Engineering Joins Landform Hedlund Engineering is now part of Landform, and both companies are now operating as Landform Professional Services, LLC. With this new addition comes three new shareholders added to the firm’s ownership, including: Randy Hedlund, Eric Lindgren, and Jeff Lindgren.

Groundbreaking Ceremony for $18M Expansion During their 25th year in Apple Valley, Uponor North America (Uponor) held an official groundbreaking ceremony to commemorate the company’s seventh expansion in the greater Twin Cities area.

The $18 million expansion project will add an additional 88,000 square feet for lean manufacturing, office space and additional manufacturing equipment for producing crosslinked polyethylene (PEX) pipe used in plumbing, radiant heating/cooling and fire safety systems.

AWARDS Chrysalis Award Winner James Barton Design-Build Inc. has been honored with a 2015 Chrysalis Award for Remodeling Excellence. The winning project was in the Outdoor Living Category. The homeowners generous lot with pool created the perfect back drop for a full outdoor kitchen, bathroom with shower, stunning stone grill with bar seating and a cozy firepit area.

In-Focus Involved in National, Award-Winning Project AMEK Custom Builders congratulates In-Focus Systems, LLC for its part in the Chaska home that earned NARI’s

2015 National Contractor of the Year (CotY) Award in the basement remodel category.

TitleSmart, Inc. Honored as an Ernst & Young Entrepreneur of the Year Minnesota business leaders dominated Ernst & Young’s Entrepreneur of the Year honorees for the upper Midwest region, taking six spots on the accounting firm’s 2015 list.

Cindy Koebele, president of Maplewood-based TitleSmart Inc., was one of the winners.

The program spotlights entrepreneurs who have outpaced peers in terms of innovation, financial performance and commitment to their businesses.

Dakota Supply Group (DSG) Acquires Pipeline Supply In Minnesota DSG has acquired Pipeline Supply, a successful distributor of plumbing, HVAC, hydronics and well supplies with five Minnesota locations: Grand Rapids, Ham Lake, Monticello, Oakdale and Hopkins (where the company also has an 8,000-squarefoot showroom).

Pipeline Supply will retain its name and staff, and while it will become a division of DSG, virtually all business operations will function per normal for both customers and manufacturers alike. This acquisition of Pipeline Supply will add more than 100 employee owners to DSG.

Bob Michels Construction, Inc. Takes Houzz Bob Michels Construction was named “Best of Houzz” 2015 for Design and Customer Satisfaction!

They credit their clients and subcontractors who took the time to write reviews on their Houzz profile.

Melody Siebel Elected to SMPS-TC Board Melody Siebel, a marketing specialist at Westwood Professional Services, Inc., has been elected to serve on the Board of Directors for the Twin Cities Chapter of the Society for Marketing Professional Services (SMPS). Siebel will serve as membership chair for a one-year term.

11 New Members Join WWPS Solar and Wind Teams This strategic move strengthens and expands Westwood’s national presence in the solar and wind markets and enables the company to leverage additional and well-established expertise to provide value to its clients.

The additions to the team consist of Drew Szabo, Nate Viste, PE; Randy Gardner, PE; Katie Penning, PE; Sam Jorgensen, PE; Josh Venden, PE; Brett Kravitz, Abhishek Kulkarni, Donnie Reyzek, Ryan Stapleton, and Peter Young.

Westwood’s Power Generation Leadership Team Steve Windingland, PE, has been appointed to the position of Director, Wind and Solar Markets; and Mallory Lindgren has been promoted to the position of Director, Power Generation Strategy. As Vice President and Director of the Power Generation Division, Aaron Tippie will continue to provide executive level oversight ensuring successful operations.

CONTINUES ON 60

86

BATC Digest

July–September 2015

TOUGHER THAN THE ELEMENTS Stands up to storms and harsh weather

Resists water absorption to help protect against mold, swelling and cracking

Won’t be eaten by animals or insects

Fire resistant

Irresistible charm

Reduces time and money spent on maintenance

THAT RESISTS THE ELEMENTS.

James Hardie® fiber cement products are Engineered for Climate®. For uncompromising performance, our HZ5® siding and trim are specifically designed to resist shrinking, swelling and cracking even after years of wet or freezing conditions. A complete James Hardie exterior can help keep your homes looking beautiful longer – no matter what nature brings.

Achieve instant curb appeal and lasting character.

Visit choosehardie.com © 2015 James Hardie Building Products Inc. All Rights Reserved. TM, SM, and ® denote trademarks or registered trademarks of James Hardie Technology Limited. The is a registered trademark of James Hardie Technology Limited. AD1482 4/15

BATC.org

July–September 2015

BATC Digest

87

member news

-

continued

ON THE MOVE

New to Westwood’s San Antonio Office Laurie Montgomery has joined the firm’s San Antonio, Texas office as a business development specialist supporting Westwood’s land division.

Westwood Forms Water Resources Group

CONDOLENCES

Westwood Professional Services, Inc. has formed a water resources group to better serve the needs of its clients.

The water resources group enhances the firm’s engineering services with permitting and technical support for construction and permanent stormwater management on land and power generation projects nationwide. Westwood’s newly appointed Water Resources Manager, Tom Miller, credits the formation of the group to the increased demand for specialized water resources services from existing clients.

Ralph Schweich

Our deepest condolences to BATC staff member Mary Schweich at the passing of her father Ralph Schweich. Ralph was a lifelong farmer in the New Trier area and enjoyed being the longtime Clerk of the Douglas Township Board.

He was a beloved husband and father, a grandfather to 12 and great grandfather to seven. He passed away at the age of 87.

National Nadeane Harriet Gruenwald Our sympathies to Teresa St. Amant, St. Amant Design, on the passing of her mother, Nadeane Gruenwald.

Nadeane died peacefully surrounded

by her family on May 26, 2015. She will be remembered for her strength, wit, kindness, and selflessness.

TELL US YOUR NEWS:

Gilbert Backer

AMM1 US Navy, World War II veteran, beloved husband of 67 years, loving father, devoted grandfather and great grandfather—these words are just some used to describe the beautiful life of Gilbert Backer, father to Pam Belz, Senior Housing Partners. Gilbert went to be with the Lord on May 28th. In a final act of service, he donated his body to research hoping to benefit others.

Remember to send all your important news and announcements to katy@batc.org!

Edward Allen Rapp

Ed Rapp, father of Todd Rapp, Himle Rapp & Co., passed away from cancer at the age of 82. Professionally, Ed was a math and social studies teacher in Columbia Heights and union negotiator - helping numerous local teacher Association National Association of Home Builders of Home Builders unions professionalize their negotiating strategies. He received many honors, including the prestigious Pennell Award from the Minnesota Federation of Teachers.

Put your Put your membership membership to work tonow. work now.

National Association of Home Builders

RESIDENTIAL WARRANTY COMPANY, LLC

Put your

Money-saving Money-saving membership discounts that discounts benefit tobenefit workthat now. you, your business, you, your business, Money-saving discounts that benefit and your family and your family you, your business, and your family

and many more

and many more and many more

nahb.org/MA

nahb.org/MA nahb.org/MA 88

BATC Digest

July–September 2015

FINANCING YOU CAN

BUILD ON Contact us today to learn how we can help you.

When it comes to financing the construction of your new home, you’ll find there are almost as many options as there are types of finishes.

Sometimes, selecting the right loan can be challenging. But, that’s where we come in.

At Associated, our experienced mortgage lenders can help you make informed borrowing decisions based on your specific needs.

Michael Fannon Bloomington 7760 France Ave. S. 651-554-8719 NMLS: 524057

Randy Hoeschen St. Louis Park 5353 Wayzata Blvd.

952-591-2897 NMLS: 524058

Stuart Mansk Savage 7533 Egan Dr. 651-306-1874 NMLS: 553805

Daniel Nugent Plymouth 2655 Campus Dr. 763-694-2844 NMLS: 500985

Mark Tripp St. Paul 202 Snelling Ave. N. 651-523-6311 NMLS: 524105

Loan products are offered by Associated Bank, N.A., Member FDIC and Associated Banc-Corp. Loans involve interest and other costs.

Please ask about details. All mortgage programs are subject to credit approval and property evaluation. Property insurance and flood insurance, if applicable, will be required on all collateral. Equal Housing Lender. Equal Opportunity Lender. (11/14) 6961

KARE 11 EGG HUNT APRIL 11, 2015 This Spring’s Parade of Homes included a fun coloring contest and downloadable childrens book all about the Magnolia tree that was planted as part of our KARE 11 Backyard rebuild last summer. Coloring contest winners and their siblings joined us in the Backyard on a beautiful spring morning for treats, prizes, their own copy of Jane Magnolia Finds Her Forever Home, and an egg hunt. They also got to join Belinda Jensen on the air, and try out their anchor chops behind the KARE 11 news desk. A great time was had by all (including BATC staff!)

BATC.org

July–September 2015

BATC Digest

89

a word from our president — continued

from page

6

The next legal step after that will be to bring this to the Minnesota Supreme Court. While the odds are long, we do stand a chance and BATC is going all the way for its members.

Energy Code Performance Path Many of our members have suggested that the new state Energy Code is even more damaging than the sprinkler mandate. Armed with that knowledge, BATC put forward legislation to require the Department of Labor and Industry (DLI) to develop a simplified performance path offering trade-outs on energy code mandates if benchmarks can be met. We ultimately pulled the legislation when DLI offered in writing to work collaboratively this summer in development of the Performance Path. We believe this has the possibility of saving our members and their home buyers hundreds, and perhaps thousands of dollars in unnecessary energy code mandates.

Sprinkler Mandate The primary goal of any trade association engaged in politics is to prevent damaging hits to the industry.

We had great success in this regard during the recently-completed legislative session. In addition to playing defense, BATC played aggressive offense as well, seeking to repeal the sprinkler mandate, a formidable task.

Our efforts again were thwarted by our immovable Governor. We were in two omnibus bills in the final hours of session this year, but Governor Dayton again threatened to veto these major sending bills simply because of our mandate repeal. In the end, legislative leaders from the House and Senate removed the sprinkler repeal in the face of broader negotiations. BATC continues to evaluate its legislative strategy with regard this challenging issue—it’s just darn tough when our Governor is immovable.

Now, the fight turns to the courts, where BATC has a case suing DLI before the Minnesota Court of Appeals. Oral arguments are scheduled for July 15th.

90

BATC Digest

July–September 2015

Chris Contreras

BATC Elevates our Association and our Industry Perhaps the most lasting impact of BATC’s all-out, non-stop, no stone unturned effort is the dramatic elevation of our industry.

BATC President ccontrer@ryland.com [c]: 612-366-0826

While there is no formal way to quantify influence, we know that state agencies and legislators are well aware of our aggressive posture. They will think twice the next time legislation arises or codes are developed that impact our industry.

When you combine our legal challenge with our topshelf lobbying, our Housing First electoral influence, our growing issues communications program and our planned Grasstops Action Network to be built out this summer, you get a vision for what it takes to be an industry of significance. BATC has advanced far, and continues to strive toward public policy excellence as per its strategic plan.

Develop the Next Leader in Your Business THIS SEPTEMBER when BATC launches the

The Met Council This fall, cities across the Metro region will begin in earnest developing their comprehensive plans based on the Metropolitan Council’s Thrive 2040 forecast. Our Public Policy Committee is already deeply engaged, and is planning activity at 10 key cities in which growth will be likely. Stay tuned as our efforts here will no doubt call for member engagement.

The University of St. Thomas study revealed that BATC members see strong value in BATC’s public policy efforts. Whether builder, remodeler or associate, our members know how important it is to help our members grow their businesses through our advocacy. We’re doing our best to meet that mission and we thank you for your support and passion.

Aimed at up-andcoming next leaders within BATC member companies.

Go Online to batc.org/leader See page 36 for more information

BATC.org

July–September 2015

BATC Digest

91

92

BATC Digest

July–September 2015

We Use

Shades, Lighting, & Thermostats

PER F OR M A N C E INSPIRED BY YOU Discover the beauty, elegance and craftsmanship of Loewen hand-crafted windows and doors. Loewen is the brand that delivers an unrivalled combination of performance and design flexibility in an extensive line of Douglas Fir and Mahogany windows and doors.

ARCHITECT CHARLES R STINSON ARCHITECTS BUILDER STREETER & ASSOCIATES PHOTOGRAPHY PAUL CROSBY

Larger units are possible due to the vertical grain Douglas Fir, mortise and tenon joinery, and engineered construction. Loewen’s non-prorated, 20 year warranty on glass, wood components and paint is unmatched in the industry.

Share your vision with us. Call 952-224-2202 to speak with a Synergy representative, or stop by and visit our Minneapolis showroom.

952 224 2202 WINDOWS

•

DOORS

•

CABINETS

Minneapolis Showroom 7003 Lake Street Minneapolis MN 55426

w w w. s y n e rg y - t r t . c o m MN License BC667153

VISION FROM WITHIN