Builders' Digest | Jul-Sep 2014 by Housing First Minnesota

2014 LEGISLATIVE SESSION

REVIEW

JULY–SEPTEMBER 2014

INSIDE

2014 BUILDERS & REMODELERS SHOW:

ALL STAR-THEMED SHOW DELIVERS— GREAT ATTENDANCE, NETWORKING, AND AN APPEARANCE BY TWINS’ GREAT TONY OLIVA

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

Let’s work together

Selling homes is as important as building them — when you’re looking to grow your business. And you don’t have to grow it alone. Wells Fargo Home Mortgage is here for you, with the people, products, programs and services to help you. Consider us your resource. We’ll help you and your buyers, with needs-specific new construction financing options, like our industry-exclusive Builder Best® programs. Count on our capabilities, resources, and strengths to help you build your business — today and tomorrow.

Learn more about teaming up with us — contact Wells Fargo Home Mortgage today. James Fisher Regional Builder Sales Manager 651-430-9930 james.fisher@wellsfargo.com 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. © 2014 Wells Fargo Bank, N.A. All rights reserved. NMLSR ID 399801. AS1014364 Expires 05/2014

Executive Director David Siegel Editor & Director of Marketing/Communications Wendy Danks Creative Services Director/Graphic Designer Dawnita Parmely

BATC Helps Lift Moratorium

Graphic Designer Laurie Spartz

Graphic Designer Hannah Morford

Advertising Sales Kori Meewes Brad Meewes BATC Foundation Executive Director Perri Graham

Director of Public Policy & MN Green Path Executive Director James Vagle Marketing & Events Manager Nicole Coon Marketing & Education Manager Tom Gavaras

Communications Coordinator Katy Ervin

Membership Director Deb Earl

Controller Janice Meyer

Public Policy Assistant Mary Schweich

Director of Administrative Services Maxine Miller

Receptionist Emily Petermann

2014 Legislative Session Review

on the cover Our 2014 All Star-themed show delivered—great attendance, networking, and an appearance by Twins’ great Tony Oliva, shown here with (back row) Brant McManigle and Craig Motz, and (front row) Cassandra Jaworski and Michelle Thompson of Southern Lights.

4 Executive Director Letter 6 A Word From Our President

executive board

board of directors

President Shawn Nelson New Spaces

BATC Remodelerssm Jolynn Johnson Crystal Kitchen Center, Inc.

Builder Vice President Chris Contreras Ryland Homes

Large Volume Builders Bill Burgess

Associate Vice President Daryl Doehr Marvin Windows & Doors Past Associate Vice President Kerry Mulcrone Kerry & Co. Secretary Todd Polifka Brush Masters Treasurer Meg Jaeger Mega Homes, Inc. Immediate Past President Pamela Belz Senior Housing Partners Past President Council Curt Swanson Swanson Homes

Membership Brian Robbins Pella Windows & Doors Parade of HomesSM Jim Kuiken Accent Homes, Inc. Public Policy Jason McCarty Westwood Professional Services, Inc. Small Volume Builders Gary Kraemer John Kraemer & Sons Inc.

10 Events Calendar 12 PROFILE: Shaw/Stewart Lumber Co.

18 PROFILE: Todd Polifka, Brush Masters

20 BATC Helps Lift Moratorium 26 Builders & Remodelers Show Recap

Top 25 Builders Advocacy Weblink BATC University Parade of HomesSM Remodelers Showcase® 74 Artisan Home Tour 76 Welcome New Members 78 Member Spike 86 BATC Foundation 90 MN Green Path 94 Member News

64 66 68 70 72

SPECIAL SECTION: 33–60

2014 LEGISLATIVE SESSION REVIEW

At-Large Member Brett Remme In-Focus Systems At-Large Member John Rask Hans Hagen Homes, Inc.

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

Builders’ Digest

8 News

National Directors Craig Plekkenpol Plekkenpol Builders, Inc.

The BUILDERS’ DIGEST magazine is the official publication of the Builders Association of the Twin Cities (BATC). The BUILDERS’ 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 BUILDERS’ DIGEST issues published on an annual basis.

Top 25 Builders

contents

Creative Services Coordinator Casey Hafner

Administrative & Membership Assistant Heather Litchy

33-60

July–September 2014

Advertising Directory ABC Supply Co., Inc.. . . . . . . . . . . . . . . . 85 Bank of America. . . . . . . . . . . . . . . . . . . 93 Brock White Company. . . . . . . . . . . . . . 75 Brush Masters. . . . . . . . . . . . . . . . . . . . . 75 CenterPoint Energy. . . . . . . . . . . . . . . 7, 11 Cityscape Painting Contractors, Inc.. . . . . 9 Corporate 4 Insurance Agency Inc.. . . . .23 Erosion Works. . . . . . . . . . . . . . . . . . . . . 23 GM Elite Dealers. . . . . . Inside Front Cover IDC-Automatic. . . . . . . . . . . . . . . . . . . . . 17 In-Focus Systems. . . . . . Inside Back Cover Installed Building Solutions, LLC . . . . . . 81 J&W Asphalt, Inc.. . . . . . . . . . . . . . . . . . 67 JL Schwieters Bldg. Supply/Const., Inc.. 71 Lake Elmo Bank . . . . . . . . . . . . . . . . . . . 63 Lampert Lumber. . . . . . . . . . . . . . . . . . . 89 Light’N Up!. . . . . . . . . . . . . . . . . . . . . . . 25 Lyman Lumber Co./ABC Millwork . . . . . 61 Marvin Windows and Doors. . . . . . . . . . . 5

Merchants Bank. . . . . . . . . . . . . . . . . . . 67 Molin Concrete Products Company. . . . 13 NAHB . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Pella Windows & Doors - Twin Cities, Inc..19 ProBuild. . . . . . . . . . . . . . . . . . . . . . . . . . 83 Residential Science Resources. . . . . . . . 69 Residential Warranty Company, LLC. . . 11 Scherer Bros. Lumber Co. . . . . . . . . . . . 67 Schwieters Companies, Inc.. . . . . . . . . . 95 Shaw/Stewart Lumber Co.. . . . . . . . . . . 11 Stein Insurance Agency . . . . . . . . . . . . . 13 Synergy Products, LLC. . . . 25, Back Cover The Builders Group. . . . . . . . . . . . . . . . . 79 The Excelsior Group. . . . . . . . . . . . . . . . 91 Thermo-Tech Windows, Inc.. . . . . . . . . . 65 Trimpac, Inc.. . . . . . . . . . . . . . . . . . . . . . 13 Warners’ Stellian Co., Inc.. . . . . . . . . . . . . 3 Wells Fargo Home Mortgage. . . . . . . . . . 1 Xcel Energy. . . . . . . . . . . . . . . . . . . . . . . . 9

BATC.org

taking selection to new heights

Through our dedicated Contract Sales team and 8 convenient showrooms, you have access to over 50 appliance brands in stock at the lowest final price, guaranteed. Call us today at 651-726-1697 for special pricing and financing.

Maple Grove • Coon Rapids Edina • St. Paul • Apple Valley Woodbury • Mpls. Outlet • Rochester warnersstellian.com/trade-partners

Celebrating 60 years Family owned since 1954 BATC.org

July–September 2014

Builders’ Digest

letter from the eo

What Went Right

@davidsiegel1 david@batc.org

Think about going beyond, “What went wrong?” When your son or daughter comes home with a report card containing five As and a C, what’s your first instinct? For me, it’s to focus on the C and find out what went wrong. “What happened here?” I might say to my daughter, in a tone that says I’m less than pleased. It’s a natural response, but motivational experts will tell you that it’s exactly the wrong approach. So it is with Association management. All too often we focus on what needs to be improved, what has to change and where we were less than stellar, without celebrating accomplishments. Valid and understandable given that our goal is to be a top shelf association. But it’s important to pause and recognize success. So let me take a moment to celebrate BATC’s inaugural Artisan Home Tour by Parade of HomesSM held in early June. We had tremendous attendance with qualified buyers on the tour. Our builders set appointments and sold homes. Additionally, we extended our Parade of Homes brand with an extensive event marketing campaign that

will help all of our builders, remodelers and associates. Tours like the Artisan Home Tour, Parade of Homes and Remodelers Showcase® provide resources to BATC that are immediately put into the field to support our member builders and remodelers. This capital is put to work every day by BATC on behalf of our industry as we fight burdensome regulations, battle at the legislature and share the story of the positive economic impact of building and remodeling. In addition, these tours support our BATC Foundation, which in addition to doing great work, provides a valuable halo that counters the negative perceptions that some hold of builders, remodelers and developers. Our mission is to help our member businesses succeed through marketing, advocacy and industry connections. Our vision is to be the leading voice for builders and remodelers. The Artisan Home Tour helps us accomplish all of these. We’ll be meeting with our builders, remodelers and sponsors to tweak the tour for its second year. It’s particularly

heartening to hear from our tour participants that they will be back, and to hear from others who didn’t participate that they will be in the Artisan Home Tour year two. We have said from inception that this tour is of, by and for the builders and we mean it. Thank you to the 23 builders who supported this event and helped shape it. Without you, there is no Artisan Home Tour and so you have our greatest respect and thanks. Thank you as well to our sponsors. The tour simply would not be a success without you. Thank you to the Artisan Home Tour Task Force led by Lowell Pratt. Isn’t it exciting when your vision becomes a reality? Thank you to the BATC Board for leadership and support as we launched this major endeavor. And thank you to the BATC staff, which put heart, soul and joy into creating this event.

David Siegel BATC Executive Director

Our inaugural Artisan Home Tour was a rousing success.

We learned a great deal in this first year of the tour. Already, we have ideas and suggestions that will help add even more value to the event. We can’t wait for 2015 and Artisan Home Tour two. We’ll see you on the tour.

Tours like the Artisan Home Tour, Parade of Homes and Remodelers Showcase provide resources to BATC that are immediately put into the field to support our member builders and remodelers. 4

Builders’ Digest

July–September 2014

BATC.org

Pine wood, Leather stain and Oil Rubbed Bronze hardware.

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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 Centers 15 Locations Minnesota and Wisconsin 651-439-3138 ABC-CLC.com

Automated Building Components Millwork Division 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

a word from our president

The Good, the Bad and the Ugly It’s been a fun and challenging first half of 2014 as BATC President. We entered the year with high hopes and great expectations as the market had been on a steady climb and the overall economy seemed to be gaining steam. Fast-forward to June and we’ve already seen some real successes as well as a few setbacks. All in all, the good has outweighed the bad, and we’re very well positioned for the rest of the year. THE GOOD Our work with the City of Minneapolis in stopping their development moratorium was a huge success. I want to thank the builders and remodelers who helped us to reach a positive outcome. You can read more about the fight in our Moratorium article on page 20. We also had a number of positive outcomes for our advocacy efforts at the Capitol this year. You can read more about those in our Legislative Update (Pages 35 to 62). I want to thank those of you who joined us at our Builder Day at the Capitol in March. We had a great turnout and made some really positive connections with legislators. I hope even more of you will join us next year as we continue to build our “cred” with our legislators. Speaking of building cred, our Housing First super PAC is poised to make a real impact in this fall’s elections. Thanks to many of you for helping us build our war chest (which BATC is matching). We’re beginning the vetting process for candidates now, and hope to help elect some new friends of the home building and remodeling industry. Please consider donating now, personal and corporate dollars are allowed. Just contact Mary Schweich at mary@batc. org or 651-697-7272. THE BAD The winter of 2013-2014 can definitely go into the bad category, creating quite a few construction

Builders’ Digest

July–September 2014

shawn@newspaces.com

Shawn Nelson BATC President

headaches. And, while there were plenty of people out during the Parade of Homes and Remodelers Showcase tours this spring, reports back have been that prospects are slow to turn into buyers. THE UGLY And, of course, our work to stop an unfair and unneeded home sprinkler mandate has slammed into an intransigent governor and turned ugly. Our number of supporters on both sides of the aisle at the capitol almost won the day, however in the end, Governor Dayton went on the offense to bolster his fire sprinkler industry friends. This fight isn’t over. Expect to see more action soon. Despite these setbacks, our industry continues to gain strength. We launched our first Artisan Home Tour in June with a full house of 25 homes on the tour. We’re looking forward to a really successful fall Parade of Homes and Remodelers Showcase, and have added an outdoor living mini tour to celebrate completing the rebuild of the KARE 11 backyard.

The BIG Night will bring all of BATC’s members together to honor our award winners, to support the BATC Foundation, and to make and re-build connections with our peers.

We also look forward to seeing you at our Building Industry Gala coming in October. The BIG Night will bring all of BATC’s members together to honor our award winners (Reggie, ROMA, Trillium, as well as Builder, Remodeler and Associate of the Year, and more), to support the BATC Foundation (silent and live auction items), and to make and re-build connections with our peers. I hope to see you then.

BATC.org

GIVING

Y U

MORE HOMES THAT SELL FASTER

WHAT HOMEBUYERS SAY ABOUT NATURAL GAS

74% would recommend natural gas 73% prefer natural gas heating 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

news

Congratulations to our New NAHB Directors BATC’s connection to the National Association of Home Builders (NAHB) Board of Directors continues to grow, as two of our reps move from an appointed status to an earned position. If you don’t know how it works, BATC is given a set number of director seats at the NAHB table based upon our size. Directors are appointed by BATC’s leadership and are then invited to attend the three board meetings per year to help govern our national affiliate.

Senior Life Director

In addition to our coterie of Directors, BATC has a long list of members who have earned a permanent seat at the table as either Life Director or Senior Life Director. Life Directors have attended at least two of the board meetings each year for ten years and were recommended by their local HBA. Senior Life Directors have done the same for 20 years.

Life Director

Director

Curt Swanson, Swanson Homes Curt earned his Life Director status CURT SWANSON a decade ago and has continued to support our industry at the national level. Thanks Curt!

Kori Meewes, and more by Kori Our newest Life Director, Kori has served BATC well at the national level. Great job Kori!

Alternate Director

KORI MEEWES

At the NAHB Spring Board meeting, we were thrilled to find BATC has one new Senior Life Director and a new Life Director, which then opened the door for adding a new Director and Alternate Director (invited to Board Meetings when a BATC Director is unable to attend).

We Won…Again! Our communication efforts have earned us a nod from the big guys at NAHB for a second year in a row. Our national affiliate awarded BATC with a 2013 Awards of Excellence honor in the category of BEST PUBLICATION. Our weekly industry e-newsletter, The Voice, took home the prize. Look for this award-winning publication in your inbox every Tuesday for an overview of BATC news and major industry issues from the past week. BATC’s Policy Manual was also recognized for a 2013 Award of Excellence, winning in the category of Best Association Operations Program Administered. While The Voice may be a more spirited read, our Policy Manual deserves its share of praise for helping to keep BATC running efficiently and effectively for our members.

Builders’ Digest

Daryl Doehr, Marvin Windows Congratulations to Daryl who moves into a full Director DARYL DOEHR position after serving as Alternate Director for the past six months.

Todd Polifka, Brush Masters With Daryl’s move, BATC leadership has TODD POLIFKA appointed Todd to slip into this position. Todd has been on the BATC board for several years and currently serves as BATC’s 2014 Secretary.

Houzz Affiliate Badge Program Launches

Congrat’s, George!

Showcase your BATC affiliation right on your profile with the new affiliation badge program.

I am pleased to announce that as of June 30, 2014, I will be retiring from GEORGE CUNDY Cundy, Santine & Associates Architects.…

Add our BATC badge to your Houzz.com profile and let clients and prospects know that you are a member of the Builders Association of the Twin Cities. Here’s how: • Go to Your Houzz account, then Edit Profile. • Scroll down to Affiliations. • Search for a company (a drop-down will appear with relevant organizations). • Select company and click Add. Repeat to add another. • At the bottom of the page, click Update.   Our BATC badges will appear on your profile page, right below your Best of Houzz badges.

July–September 2014

NOW BOOKING 2015 ADVERTISING SPACE.

Contact Brad Meewes 651-269-2399, brad@batc.org; or Kori Meewes 612-801-9874, kori@batc.org

BATC.org

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July–September 2014

Builders’ Digest

find it all at batc.org

events

JUL

JUL 16

PULTE GOLF TOURNAMENT OPEN TO ASSOCIATE MEMBERS ONLY Join us as we get together to support a great cause! All proceeds will benefit the BATC Foundation, the charitable arm of the Builders Association of the Twin Cities. $500 per foursome includes greens fees, golf cart rental, lunch, afternoon snacks, raffle and awards. 12:30–8:00 PM 12:30PM Check In & Lunch 1:30PM Shotgun Scramble Dwan Golf Course 3301 W 110th St Bloomington, MN 55431

AUG 14 MEMBER ORIENTATION Whether you’re a new member, or have been around for 20+ years, come see what BATC offers!

SEP

SEP 6-28

JUL 22 BATC BE: SHOWROOM EVENT & FAST FORWARD SALES & MARKETING COURSE Come for our Fast Forward Education on marketing and stay to nosh, network and see what Scherer Bros. Lumber Co. showroom can offer you. FREE.

FALL REMODELERS SHOWCASE® Expect a great tour, including Outdoor Living editorial.

BATC office, 9–10 AM Save the date!

FALL PARADE OF HOMESSM Our 66th fall tour will feature Outdoor Living editorial.

SEP 26-28

SEP 9 SPONSORSHIP LUNCHEON Join us as we launch our 2015 sponsorship opportunities and thank our 2014 sponsors over lunch.

OCT 7

OCT

CLAY SHOOT Take your best shot! Our second annual clay shoot presented by our Young Professionals (young and old invited) was a blast (in more ways than one) so we’re doing it again. Join us to take aim at some fun. Sponsorships available. Wild Wings of Oneka, 9491 152nd St. N., Hugo, 55038 Register at www.BATC.org Heather@BATC.org, 651-697-7573

11:00 AM–1:00 PM BATC Seminar Room Register at www.BATC.org

4:30–5:00 PM Fast Forward Education 4:30–6:30 PM Showroom Event Scherer Bros. Lumber Co. 9420 - 83rd Avenue N. Brooklyn Park, MN 55445 Register at www.BATC.org

AUG 5

AUG

BATC OPEN GOLF TOURNAMENT AND DINNER Our golf tournament gives you the perfect place to network and have a little business fun! Golfer registration SOLD OUT; dinneronly registration still available. 11:00AM–7:30 PM The Wilds Golf Club 3151 Wilds Ridge Prior Lake, MN 55372 Register at www.BATC.org

OCT 23

Builders’ Digest

SEP 23 BATC FOUNDATION GOLF TOURNAMENT Enjoy a day on the links while supporting our Foundation. 12 Noon–8:00 PM Legends Golf Club, Prior Lake

THE BIG NIGHT Save the date for the new Building Industry Gala (BIG). This is where we come together to celebrate the industry, support the BATC Foundation and recognize the great work you do by presenting our Reggie, ROMA, Trillium and other BATC award winners. 5:00–9:30 PM St. Paul Union Depot 214 Fourth Street East St. Paul, MN 55101 www.BATC.org

July–September July–September 2014 2014

BATC.org

HOOK UP

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ENERGY

WE’RE HERE TO HELP.

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xcelenergy.com/EnergyPartners

call 1-800-628-2121 or fax 1-800-628-2521.

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BATC.org

3/29/13 3:56 PM

July–September 2014

Builders’ Digest

meet our sponsors

Experience the Real Thing Marvin Design Gallery: a window and door showroom by Shaw/Stewart Two of the most established and well-respected companies in Minnesota are here to meet your window and door needs. Combine the long-standing 125-year legacy of Shaw/Stewart Lumber Co. with the integrity of Marvin Windows and Doors, and you get Minnesota’s most premier showroom. At the Marvin Design Gallery by Shaw/Stewart, customers can tour more than 65 Marvin window and door displays in five unique home styles, including contemporary, cottage, colonial, cabin and arts & crafts. Customize your selection process with the Gallery’s in-house design center, or simply browse through a comprehensive display of window and door products in real-to-life home settings. If a picture is worth a thousand words, imagine what it’s worth to experience the real thing. You can do just that at their gallery located off of Johnson Street in Minneapolis. The Showroom also features Decorative Hardware from six different manufacturers, and over 100 interior and exterior doors from several of the most respected door providers in the country. The showroom also offers cabinet design services utilizing a variety of U.S. manufacturers. Shaw/Stewart has been providing the building industry with quality products and outstanding service since 1886. Their reputation for excellence is particularly apparent in the showroom’s Architectural Millwork Displays. Here you can browse custom interior molding and trim details that showcase the pristine craftsmanship which comes from over 100 years of experience. The Design Gallery staff is always eager to answer your questions. Stop in to experience the selection process for yourself. ShawStewartLumberCo.com/Marvin-Design-Gallery

Builders’ Digest

July–September 2014

BATC.org

Structural Precast Concrete For 2-Level Garages

MORE THAN YOU THOUGHT

MORE SMART CHOICES

Brainerd Alexandria Morris Willmar

Minneapolis Hastings Mankato Luverne

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CenterPointEnergy.com/Builders

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BATC.org

July–September 2014

12/10/13 9:01 AM

Builders’ Digest

Introducing T H E B I G G E S T N I G H T F O R B U I L D E R S , R E M O D E L E R S & A S S O C I AT E S

INDUSTRY

AWARDS

BATC FOUNDATION

SILENT & LIVE AUCTIONS

EXCEPTIONAL

NETWORKING

THIS YEAR, ALL OF OUR AWARDS WILL BE PRESENTED AT THE NEW BUILDING INDUSTRY GALA (BIG). At the BIG Night you’ll be able to accept your

award alongside all our other big winners, in front of the entire BATC membership.

We’ll come together at this one great event to celebrate the industry, support the BATC Foundation and recognize the great work that you do by presenting our Reggie, ROMA, Trillium and other BATC award winners!

2014 Award Categories R E G G I E AWA R D S SM Parade of Homes Builders

T R I L L I U M AWA R D S S M BATC Associates

R O M A ( R E M O D E L E R O F M E R I T AWA R D S SM ) BATC Remodelers

B U I L D E R O F T H E Y E A R | R E M O D E L E R O F T H E Y E A R | A S S O C I AT E O F T H E Y E A R R O B E R T L . H A N S O N I N D U S T R Y S E R V I C E AWA R D | A D V O C AT E O F T H E Y E A R S P I K E O F T H E Y E A R | L E G I S L AT O R O F T H E Y E A R 14

Builders’ Digest

July–September 2014

BATC.org

COMING THIS FALL

October 23, 2014 ST. PAUL UNION DEPOT

V I S I T W W W.B AT C .O R G F O R E V E N T D E TA I L S O R T O E N T E R O N L I N E # B AT C B I G BATC.org

July–September 2014

Builders’ Digest

4.25X5.5_MA_QuarterPg:4.25x5.5_MA_QuarterPage

1/9/14

11:20 AM

Page 1

National Association of Home Builders

Put your membership to work now. Money-saving discounts that benefit your business, your employees, and your family

www.nahb.org/MA

NEW! AFFILIATION BADGE PROGRAM NOW BOOKING 2015 ADVERTISING SPACE.

ADD OUR BATC AFFILIATION BADGE TO YOUR HOUZZ PROFILE

Contact Brad Meewes 651-269-2399, brad@batc.org; or Kori Meewes 612-801-9874, kori@batc.org

WE HID IT. A nail is hidden somewhere in every issue of the Builders’ 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…

learn how on page 8

Dang. NO ONE found the nail on page 46 of the April–June 2014 issue of the Builders’ Digest

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. When members find the nail, they can email or fax a note to the Builders Association of the Twin Cities, telling what page it’s on. Participants will be entered into a drawing to win a business-card size ad in this publication or a set of member labels (non-electronic version). All other entries receive $20 in BATC Bucks. Entries must be received by July 31, 2014.

9.24.13 / / BATC Foundati

Found the nail? Email the page number of your guess to laurie@batc.org. Or, mail or fax to: BATC Nail Hunt, 2960 Centre Pointe Dr., Roseville, MN 55113 Fax: 651.697.7575 16

Builders’ Digest

July–September 2014

BATC.org

Garage Doors

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Playing as a Team Todd Polifka, Brush Masters When members get involved in the association, BATC staffers get the privilege of getting to know the people we work hard for—our builder, remodeler and associate members. We’re a team at BATC, and that starts with our members. When Todd Polifka got involved with BATC in 2003, we knew we had a good ‘teammate’ on our hands, probably even before he did. Todd began attending BATC as a way to earn his CAPS and CGR certifications and, with all of our other networking opportunities, he quickly became a familiar face in the office. Todd is currently a member of our Associates Committee, having stepped up to the plate in 2012-2013 to Chair that committee for two years. Today he serves on the BATC Executive Board and still maintains a seat on the Associates Committee, which helps oversee the Builders and Remodelers Show (BRS) as well as the BATC Open, an annual golf tournament that sells out every year (though you can still register for dinner-only at www.batc.org). As an avid spots fan, his involvement with our golf tournament is the perfect fit. Helping to manage the largest industry home show in the Midwest is also a highlight. Between the BATC Open and BRS, Todd acknowledges, “the amount of relationships and networking developed at both of these events is unmatched in our industry. It’s been my pleasure and a privilege to be part of both.”

At home, Todd enjoys spending time with his wife of 17 years, Nichole, and their three sons, Grant (14), Blake (11) and Davis (8). With a house full of boys, playing and coaching sports is a favorite pastime. Todd currently coaches his son Blake’s 11AAA East Ridge baseball team and he is the assistant coach for Davis’s machine pitch baseball team. “I’ve also coached hockey for 10 years and own a AAA hockey program called Steeldogs Hockey,” Todd shared. Sports fans are usually competitive on and off the field, and Todd is no exception. His company, Brush Masters, has been serving the Twin Cities metro since 1986 with the quality and customer care that you would expect from a seasoned supplier. They offer services in interior and exterior painting, drywall, pre-finishing and wallpaper while aspiring “to give each unique customer the services they need to make their business a success.” You can catch them on Houzz.com, where their ratings earned them a 2013 Best of Houzz Customer Satisfaction Award and they’ve got countless Trillium Awards to their name as well. Building upon a legacy of integrity, Brush Master’s goal is “to compliment this legacy with aggressive strategy and business planning processes to prepare the next generation with business success.”

We’re lucky to have Brush Masters on our BATC team With outstanding members like Todd Polifka in our association, our industry is sure to hit it out of the park in the years to come.

Left to Right: Todd, Nichole, Grant, Blake and Davis Polifka

Builders’ Digest

July–September 2014

BATC.org

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ways Pella’s Direct Sales Network benefits your business.

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MORATORIUM By Fran Howard

On March 7 at 2 p.m., 20 builders and developers were called to a meeting in Minneapolis City Hall. Many were excited that the city was finally going to listen to their concerns regarding its slow permitting process. Instead, they were told that all homebuilding and major remodeling projects in Ward 13 that were not already in the permitting process were put on hold for one year. The Minneapolis City Council had voted unanimously in favor of the moratorium that morning.

Buildersâ&#x20AC;&#x2122; Digest

Julyâ&#x20AC;&#x201C;September 2014

BATC.org

“The room exploded when first-term councilmember Linea Palmisano told us that,” says Rob Eldridge, president and CEO of Ridge Creek Custom Homes, in Edina. Palmisano represents Ward 13, the Armatage, Fulton, Kenny, Linden Hills, and Lynnhurst neighborhoods, and wanted to change the way some builders were managing their building site. Eldridge had six projects in Ward 13—worth an estimated $6 million—waiting for permits. “After the explosion, when the temperature of the room cooled down, we started asking what we could do to help,” Eldridge recalls. On his way out of the meeting Eldridge called a few realtors he had worked with, while Chad Hanson, co-owner of Sustainable 9 Design+Build, in Minneapolis, called the Builders Association of the Twin Cities (BATC). Hanson’s firm also had $6 million in projects put on hold. “I called BATC from my car immediately after leaving the meeting,” says Hanson. “I was routed to James.” James Vagle, director of public policy for BATC, remembers that call along with the dozen or so other phone calls he received that day. “Cumulatively, more than 100 substantial projects,

BATC.org

“I called BATC from my car immediately after leaving the meeting.”

mostly teardowns, in the city’s hottest neighborhoods were stopped as a result of the moratorium,” says Vagle. “We knew immediately that this was a top priority issue that we needed to address. A moratorium should only be used under dire circumstances, for zoning changes, and then only with public input on the front end.” BATC knew it needed to move quickly to get its members back to work, so it immediately engaged the city in problem solving. Over the next six weeks, BATC met numerous times with its members, city planners, and council members to hammer out a Construction Management Agreement that addresses 25 building management issues, including hours of operation, noise, dumpster management, neighbor notification, and dust control, among others. “We had to give, and the city had to give,” says Vagle.

City of Minneapolis

All homebuilding and major remodeling projects in Ward 13 that were not already in the permitting process were put on hold for one year. The Minneapolis City Council had voted unanimously in favor of the moratorium that morning.

July–September 2014

Builders’ Digest

On the positive side, with the Minneapolis CMA in place, builders are back to work, housing values and sales in Ward 13 are back on the rise after being negatively affected by the moratorium, builders know what is expected of them, and neighbors know what to expect.

On April 18, the City Council lifted its moratorium, making the CMA applicable to all homebuilding and major remodeling projects within Minneapolis city limits. Minneapolis is the second city in the metro area to develop a CMA. Edina was first, and Eldridge and others believe St. Paul could also adopt a CMA eventually as teardowns become more common in the Macalester Groveland and Highland Park neighborhoods. “Edina had considered a moratorium but engaged the building industry earlier, so we were able to prevent a moratorium there,” says Vagle. “Minneapolis took a much more aggressive approach.” Consequences of a moratorium can be substantial to builders as well as to communities. Homeowners in the affected neighborhoods who wish to move are often forced to put their lives on hold, local businesses lose out as construction workers are sent to other projects in other communities, and local home values and sales suffer.

Builders’ Digest

One of Hanson’s clients whose home project was delayed will now to have to commute nearly 200 miles a day. “My clients wanted to be in a certain school district, and now due to the moratorium delay, this fall they’ll have to drive from Baldwin, Wisconsin, to the southwest Minneapolis school their child will attend twice a day for about a month and a half until their home is finished,” says Hanson. On the positive side, with the Minneapolis CMA in place, builders are back to work, housing values and sales in Ward 13 are back on the rise after being negatively affected by the moratorium, builders know what is expected of them, and neighbors know what to expect. “I think the CMA is a good thing,” says Eldridge. “We now have a process in place, and projects progress more smoothly. We are getting permits more quickly, and we are managing our jobs better.”

July–September 2014

Hanson agrees. “It has caused all of us in the building industry to be better communicators with both our clients and their neighbors, and it helps all of us be more sensitive to the neighbors’ concerns.” A perfect example, he adds, is not placing dumpsters directly across from one another on opposing sides of a street, which unnecessarily narrows the traffic lane. “What was frustrating with the moratorium is that we have many clients and neighbors of clients who have had no complaints about our construction management process,” says Hanson. At the Fall 2013 Parade of Homes, Sustainable 9 showed two homes in Ward 13, and an average of 200 to 300 people per day—mostly neighbors—showed up to see the homes. “Almost everyone, probably 99 percent, were excited about the quality of the projects,” Hanson says. “And they were happy we were removing rundown properties from their neighborhoods.” s

BATC.org

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July–September 2014

Builders’ Digest

Thank you

BATC PARTNERS YO U M A K E U S G R E AT It’s only through the support of our incredible partners and sponsors that BATC can continue our mission to help you build your businesses through marketing, advocacy and industry connections.

Please mark your calendar & PLAN TO JOIN US FOR THE

SEPT EMBER 9, 201 4 | 1 1 A M – 1 PM

B ATC SPONSO RSH IP LUNCH EO N AT BATC , 2 9 6 0 C EN TR E P O I N TE D R I V E , R OS E V I L L E

HE L P US R E C O G NI Z E OUR 2014 SPONSORS while we show you how to take advantage of BATC’s Partner and Sponsor opportunities for 2015. This is a complimentary event, but reservations are requested. RSVP to Emily@batc.org, call her at 651-697-1954 by September 2nd or sign-up online at BATC.org. Remember to bring your calendar so we can schedule an appointment to create a personalized program to give your business an edge in 2015.

B AT C S ALE S T E AM: Kori Meewes kori@batc.org | 651.697.7591 Brad Meewes brad@batc.org |651.697.7591

Builders’ Digest

July–September 2014

BATC.org

S U P ER I O R DOUGLAS FIR

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BATC.org

July–September 2014

MINNEAPOLIS SHOWROOM

952 224 2202 Builders’ Digest

brs recap

BRS Does It Again! BUILDERS & REMODELERS SHOW A PRODUCT AND SERVICE EXPO

Our 2014 Builders & Remodelers Show (BRS) swept a double-header at the Minneapolis Convention Center on Thursday, April 3rd.

PRESENTED BY:

Fast Forward had its inaugural appearance at 11:00am. If you’re not familiar with Fast Forward, you should be. It’s a name coming up in the ranks. Mentored by BATC University, Fast Forward educational offerings are non-accredited courses that will strengthen and enhance your business.

FAST FORWARD

Wowing the 106 registered attendees, Fast Forward had a display of talent by 18 instructors in eight different classes including: Business Management, Health

Insurance, Road Regulations & Requirements, and Succession Planning. The classes with the highest ARS (Attendees Registered per Session) were: Sales & Marketing and Codes closely followed by Project Management and Design. If you missed Fast Forward, the PowerPoint presentations replay can be found at: http://www.batcbrs.com/fast-forward-presentations/. Upcoming dates for Fast Forward are scheduled for July 22nd and November 18—more info and ‘tickets’ available at www.batc.org.

The crowd favorite, the product and service expo dazzled again in 2014. Taking the 99,000 square feet ‘field’ for this All-Star Game were 212 companies that covered 276 10x10 booths.

THE SHOW

The Home Team included appearances by the Demo Stage, The Green Path Pavilion and Exhibitor Booth Contests. The builder, remodeler, architect and interior designer attendees or Visiting Team had their hands full with all the offerings the show threw at them, including an appearance by Minnesota Twin’s own T.C. Bear.

Visitors also had a chance to get 15-minute bites of information by some of our seasoned exhibitors at the Demo Stage and those that wanted to go an extra inning could participate in the Scavenger Hunt and were given a chance to win $500 cash by visiting the participating 10 exhibitor booths. One of those exhibitors, the BATC Foundation partnered with Special Spaces to provide a Dream

WINNER NAHB’S

BEST INDUSTRY TRADE SHOW

BRS holds a title for Best Industry Home Show awarded in 2013 by NAHB.

Builders’ Digest

Left to Right: 1. T.C. Bear with former Minnesota Twin Tony Oliva 2. The Xcel Energy Team 3. Century Link makes it look easy 4. Katie Harms, Scherer Bros. Lumber Co. with David Siegel 5. Steve Schwartz and Jenny Johnson, July–September 2014

BATC.org

THE SHOW GREEN PATH PAVILLION The Green Path Pavilion had a breath of fresh air blown into it by the help of its partners and sponsors. Minnesota’s Green Path is an energy and green building program for the residential construction industry. MN Green Path provides builders with a realistic approach to building energy-efficient and sustainable homes. The pavilion provided information to visitors on the HERS index and the Home Performance Report (HPR), a window sticker for your home. Attendees could also grab a seat and or partake in the fun—a game of Wii baseball.

Special Thanks to our

FAST FORWARD INSTRUCTORS Ross Anderson Steph Angen, JMS Custom Homes, LLC Darsi Floersch, Martha O’Hara Interiors Mary Komornicka, Larkin Hoffman Daly & Lindgren Ltd.

HOUSING FIRST HOSPITALITY SUITE Making its debut was the rookie of the show, The Housing First Super Pac VIP Lounge. It was the IN place to be at BRS. The lounge provided an opportunity to thank many of the VIP contributors who are helping elect Housing Champions to Minnesota offices. Housing First Committee members, staff and fellow contributors were on hand to discuss industry issues and the upcoming elections.

Kevin Kruger, Kruger Financial Services Investment Planning & Wealth Management-Securities & Advisory Services offered through SII Investments, Inc., Member FINRA/SIPC and a Registered Investment Advisor Kelle Lang Staats, Personal Designer Home Visualizer Jim Lendway, Minnesota Department of Transportation Janelle Mattson, Ridge Creek Custom Homes

Bedroom Makeover for Eli, a four-year-old boy diagnosed with Acute Lymphoma Leukemia; and gave attendees an at-bat in voting on their favorite design. Find more on Eli’s Dream Bedroom Makeover on page 88. Forget the peanuts and cracker jacks—BRS enticed the visitors with a seated dinner buffet featuring salad, sides and chef-staffed carving station and dessert. The

grand slam for the day was that each attending company received up to four free dinner tickets. The exhibitors were scouted by anonymous judges this year and several brought their ‘A’ game. This year we awarded one winner for best themed booth as we’ve done in the past (Granite-Tops, LLC—see photo #6 below). New to the 2014 show we awarded prizes for best booth overall to

our first (Creative Lighting, Inc.) and second place (Marvin Windows and Doors) winners. Judges considered the following when making their selections: booth design, product merchandising/demonstrations and exhibit staff. We hope the competition heats up in 2015 with even more products and services displayed on the show floor.

John Miller, James Barton Design Build, Inc. Shawn Nelson, New Spaces Steve Poppen, John Kraemer & Sons, Inc. Pat Powers, Olsen Thielen & Co., Ltd. Brian Robbins, Pella Windows & Doors Jeffrey Schoenwetter, JMS Custom Homes, LLC Don Sivigny, Minnesota Department of Labor and Industry Mike Taurinskas, Pratt Homes Tricia Tidemann, Mingle Cabinetry Furnishings Design

Carla Warner, Warners’ Stellian Co., Inc.

IDC-Automatic 6. Mike Mowers, Granite Tops, LLC. 7. T.C. Bear, Shane Myrlie, Dakota Home Improvement, winner of $500 in cash, and Nicole Coon, BRS Show Manager BATC.org

July–September 2014

Builders’ Digest

brs recap

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

BRS by the Numbers ATTENDEES

853

59%

REGISTERED

BUILDERS

30%

11%

REMODELERS

ARCHITECT INTERIOR DESIGNER STUDENT

OTHER

ABOUT THE ATTENDEES

76%

PLAN TO PURCHASE

within the next 12 months

92%

LIKELY TO RECOMMEND BRS

to a friend in the industry

WHY DO ATTENDEES COME?

100% come to see

NEW PRODUCTS & SERVICES

93%

87%

come to make

attend the show

INDUSTRY CONNECTIONS

ABOUT THE EXHIBITORS

212

COMPANIES

Builders’ Digest

276

10x10 BOOTHS

July–September 2014

276 243

BRS EXHIBITORS

198

212

2013 vs. 2014 companies booths

2013

2014

BATC.org

brs recap

2015 Exhibitor Info Exhibitor information available soon for 2015 BRS. First right of refusal on booth space for returning exhibitors will expire 10/15/2014. $200 deposit required.

Special Thanks to the

Visit www.batcbrs.com or contact Show Manager, Nicole Coon: 651-697-7571 or nicole@batc.org

for all thier work on making BRS a success.

ASSOCIATE COMMITTEE MEMBERS

Adam Olson, Lampert Lumber, Chair

WHAT DID ATTENDEES HAVE TO SAY? “Thank you for a gathering that allows contractors to catch up with the sales force of the products we use and meet the people running the businesses that we may not be aware of or have time to.”

“It is good for me to see new innovations or improvements in the products that are available to us each year. It make us more knowledgeable when we work with our clients. It is also a great time to catch up with our associates.”

Gordon Arneson, Garn Construction, Inc. Dave Durst, Durst & Gans Building Corporation

“BRS is always time well spent for my staff and me. We take the time to search out existing vendors and suppliers, and discuss products and services that we need to search out prior to attending the Show. It is a great networking opportunity for all in our industry.”

Meg Jaeger, Mega Homes

Jeff Bloch, Simpson Strong Tie Jon Coty, Midwest Roofing Supply Reed Daniel, Galaxy Sales, Inc. Dennis Galligan, In Focus Systems Joe Grandbois, LP Building Products Kevin Kruger, Kruger Financial Services Investment Planning & Wealth Management-Securities & Advisory Services offered through SII Investments, Inc., Member FINRA/SIPC and a Registered Investment Advisor Kori Meewes, and More by Kori

WHAT DID EXHIBITORS HAVE TO SAY?

Todd Polifka, Brush Masters

“I believe that the BATC BRS is a great event to network and to rekindle relationships with past colleagues and builders. It also offers a venue when you can have ‘everyone in the same room’.”

Rick Hunt, Automated Building Components– Millwork Division

BATC.org

“Our team understands the value of the network BATC has created. We see BATC as an essential part of our business and value the work they do on behalf of our industry! The BRS Show gives us the opportunity to connect with key decision makers in our market, network with trade professionals, and build on our existing relationships. This year’s show was a great success (despite the weather), and has provided a great number of leads for us to follow up on! Thanks to the BATC team for putting together such a great event!”

Tony Schumacher, Light’N Up!

Reed Daniel, Galaxy Sales, Inc.

July–September 2014

Builders’ Digest

BUILDERS & REMODELERS SHOW PRESENTED BY:

April 3, 2014 1. T.C. Bear with Residential Science Resources 2. T.C. Bear and BATC’s Tom Gavaras 3. Josh Lundeen and Jeff Rosalez of Renaissance Reel Productions with BRS Staff Nicole Coon, Heather Litchy and Deb Earl 4. Lisa Felts, SuperAmerica is all smiles 5. Katie Harms, BATC Foundation Board President, Scherer Bros. Lumber Co. draws the Cabela’s gift card winner 6. Jeff Bloch and Nate Hanson of Simpson Strong-Tie 7. Pat Hegseth, J.B. O’Meara Co. and team 8. ABC Supply Co., Inc. looking sharp in their winning wardrobe. 9. Mark Litherland, PrimeLending; Kevin Kruger, Kruger Financial Services Investment Planning & Wealth Management and Jerry Peterson, Emeritus chat with a BATC booth visitor 10. Staying up to date on current trends at BRS. 11. Jake Smith with In-Focus shows off their great products and his arm. 12. Charles Kesmodel and Roger Langford with Professional Warranty Service Corporation get in the spirit. 13. Caitlyn Michels, daughter of Bob and Mary Michels, displays the winning design for the BATC Foundation’s design contest makeover of “Eli’s Room.”

THANK YOU TO OUR “ALL STAR” SPONSORS! PREMIER SHOW SPONSORS:

The Builders Group

Builders’ Digest

July–September 2014

AUTO SPONSORS:

Friendly Chevrolet Jeff Belzer Chevrolet

Luther Brookdale Chevrolet

Merit Chevrolet Suburban Chevrolet

BADGE SPONSOR:

LANYARD SPONSOR:

BATC.org

SHOW SPONSORS:

BAR SPONSORS:

“The Garage Door Place”

BATC.org

July–September 2014

Builders’ Digest

JOIN US! TUESDAY, JULY 22ND To attend the Scherer Bros. Lumber Co. Showroom Event BATC’s Fast Forward Series for tips to improve your Sales & Marketing

be there!

Scherer Bros. Lumber Co. 9420 83rd Avenue N., Brooklyn Park, MN 55445

Scherer Bros. Lumber Co.

& 4:30-6:30PM

E DUC A T I O N 4:30-5:00PM

TOPIC: SALES+MARKETING TOPIC: SALES+MARKETING These non-accredited courses are offered intermittently throughout the year and will provide you with valuable information to enhance and strengthen your business. Free to attend! Then stay to nosh and network at Scherer Bros. Lumber Co. and see what their Brooklyn Park showroom can offer you!

BE Business Exchange = valuable education + noshing + networking 32

Builders’ Digest

July–September 2014

BATC.org

2014 LEGISLATIVE SESSION REVIEW

LEFT INTENTIONALLY BLANK

•

2013 Legislative Wrap-Up

A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES

MESSAGE FROM THE

PRESIDENT The 2014 legislative session was the shortest one in years, but nonetheless proved to be one of the most intense sessions for BATC in many years. Following our experiences in 2013 we knew we would face unique challenges at the Capitol with the DFL leading the House, Senate and Governor’s Office for the first time in nearly 25 years. Our lobbying team’s primary goal was to position BATC to successfully block or moderate proposals that would grow our already problematic regulatory footprint. I’m pleased to say that we were successful in reaching that goal, with one important exception. Perhaps not surprisingly, the home sprinkler mandate became the focal point of our session. As it was in 2013, our attempt to prohibit the unnecessary sprinkler mandate was met with bi-partisan support from legislators across our region and state. Also familiar was the Governor’s strong resistance and reliance on fire services’ position on this issue. The outcome mirrored the previous four years but there was a marked progress in our ability to elevate this issue and make progress toward our goal. Beyond the sprinkler mandate issue, this review contains good news about our team identifying, stopping and modifying a host of issues that would add to the substantial regulatory burden we all navigate every day in our own businesses.

“

We believe we can be a catalyst to improve our region’s competitiveness through affordable housing for all and greater access to housing at all price points.

Ideally, BATC would like to be on the offensive, calling the question on the many instances of duplication and inefficiency in our regulatory structure.

We believe BATC can be a catalyst to improve our region’s competitiveness through affordable housing for all and greater access to housing at all price points. Unfortunately, the political reality in Minnesota over the past two years doesn’t allow much space for these types of discussions. Acknowledging that, we are heavily focused on the 2014 elections, which carry incredible significance for BATC and our legislative objectives. Many of our members have joined us in these efforts through our Housing First Fund, which will identify and support pro-housing candidates in Minnesota elective offices. If you are interested in making a contribution or learning more about Housing First, please do not hesitate to contact our lobbying team or www.housingfirstmn.org.

A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES

2014 Legislative Wrap-Up

•

We are fortunate to have a strong team of dedicated professionals advocating on behalf of our businesses. I was able to join them throughout the session and gained a greater appreciation for their work on our behalf. Thank you to all BATC members who attended Day at the Capitol, signed our petition, made phone calls and sent emails to legislators on our industryâ&#x20AC;&#x2122;s behalf. These communications matter greatly to our elected officials, and taken collectively elevate our industry, our policy perspective, and bring us closer to changes necessary for our industry to thrive. This review highlights the important issues of the session. I hope you find it to be a useful member resource. And, as always, thank you for your support for BATC and our industry. Best regards,

Shawn Nelson New Spaces and 2014 BATC President

â&#x20AC;˘

2013 Legislative Wrap-Up 2014

A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES

TABLE OF

CONTENTS

OVERVIEW -------------------------------------------------------------------------------------------------------------- 4 THE TEAM --------------------------------------------------------------------------------------------------------------- 5 SPRINKLER MANDATE PROHIBITION ----------------------------------------------------------- 7 BUILDER-PAY ATTORNEY FEES --------------------------------------------------------------------- 10 RULEMAKING BILL ------------------------------------------------------------------------------------------ 12 REPEAL BUSINESS-TO-BUSINESS TAXES ----------------------------------------------------- 14 SUBCONTRACTOR PILOT PROJECT MADE PERMANENT -------------------- 16 SOLAR BAN PROHIBITION IN CERTAIN HOMEOWNERS ASSOCIATIONS --------------------------------------------------------- 18 ENVIRONMENTAL PERMITTING ------------------------------------------------------------------ 20 LOWER ST. CROIX WILD AND SCENIC RIVER REVIEW PROCESS ----- 22 OTHER ISSUES ----------------------------------------------------------------------------------------------------- 24 MINIMUM WAGE PARK FEES STREET IMPROVEMENT DISTRICTS

A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES

2014 Legislative Wrap-Up

•

’14 LEGISLATIVE SESSION REVIEW

The 2014 legislative session will be remembered for being brief and intense, continuing the ambitious agenda of the DFL Party, which controlled both the Minnesota House and Senate and the Governor’s office for the first time in a generation. DFL leaders continued work on their agenda to bring structural, progressive changes to Minnesota’s budget and government services. The road was once again winding, but in the end the session came to an on-time and orderly conclusion. 2014 LEGISLATIVE SESSION BY THE NUMBERS: Senate Bills Introduced: 1309 House Bills Introduced: 1534 Bills Presented to the Governor: 169 Bills Signed by the Governor: 167 Bills Vetoed by the Governor: 2 For BATC members the session was once again dominated by responses to proposals that raised questions and concerns for the homebuilding industry. The final results were quite positive, with one nagging exception. While the Governor’s block of a resolution to the sprinkler mandate was not entirely unexpected, it is extremely frustrating and disappointing. In our four-plus years of working to prevent this unnecessary and expensive mandate, we’ve continued to make progress and came as close as we ever have in the 2014 session. This couldn’t happen without our dedicated staff, our lobbying and public relations consultants, BATC leadership and most of all, our members who continue to support our efforts to protect Minnesota homeowners from unneeded costs. It’s our honor to represent our members at the Capitol and with regulatory agencies. We’re fortunate to have a strong mix of dedicated individuals with significant experience in the homebuilding and legislative arenas anchoring our legislative team. Read on for more about how the 2014 legislative session unfoldeded, and its impact on your business.

•

2014 Legislative Wrap-Up

A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES

THE TEAM DAVID SIEGEL

JAMES VAGLE

BATC EXECUTIVE DIRECTOR

BATC PUBLIC POLICY DIRECTOR

JULIE PADILLA

SHAWN NELSON

JASON MCCARTY

BATC PRESIDENT

BATC PUBLIC POLICY COMMITTEE CHAIR

ATTORNEY & LOBBYIST, LARKIN HOFFMAN

MARY SCHWEICH BATC PUBLIC POLICY ASSISTANT

PETER COYLE

ATTORNEY & LOBBYIST, LARKIN HOFFMAN

TODD RAPP HIMLE RAPP

REMI STONE

LARRY REDMOND BRIAN HALLORAN

BAM EXECUTIVE VICE PRESIDENT

LOBBYIST, REDMOND LOBBYIST, REDMOND & ASSOCIATES & ASSOCIATES

BOB VANASEK

ROGER MOE

LOBBYIST, ROBERT VANASEK & ASSOCIATES, INC.

LOBBYIST, NATIONAL STRATEGIES, INC.

A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES

GERALD SECK

ATTORNEY & LOBBYIST, LARKIN HOFFMAN

2014 Legislative Wrap-Up

•

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 JASON McCARTY, Chair Westwood Professional Services MARY SCHWEICH BATC, Public Policy Assistant PAMELA BELZ Senior Housing Partners MORGAN BICKEL Lennar SCOTT BLOM ProBuild GEORGE CUNDY Cundy, Santine & Associate ROBERT ENGSTROM Robert Engstrom Companies LARRY FRANK Arcon Development, Inc. PAUL HEUER Stantec BILL KEENAN Builders Development & Finance RICK KOT R.A. Kot Homes, Inc. FRANK KOTTSCHADE North American Realty, Inc. GREG LIVERMONT Andersen Windows

SHAWN NELSON New Spaces

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

RYAN OHR IKO KATHLEEN OSTROM C.N. Ostrom & Son, Inc. RICK PACKER Centra Homes, LLC

The Voice, BATC’s weekly e-newsletter

DAVID PATTBERG Centra Homes, LLC ALDEN PEARSON Acumen Legal Advisors, PLLC IAN PETERSON Pulte Homes of Minnesota LLC WILLIAN PRITCHARD Prudential RICHARD RIEMEERSMA Imperial Homes, Inc.

Twitter BATC: @batctc

ROB SHAINESS Capstone Law, LLC

Housing First: @housing_first

JOSEPH SPRINGER Fredrikson & Byron, P.A.

James Vagle: @jvags

JIM STANTON Shamrock Builders, Inc

David Siegel: @davidsiegel1

STEVE WILLIAMS JMS Custom Homes

Follow BATC’s blog at blog.batconline.org

BOB MICHELS Bob Michels Construction, Inc.

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2014 Legislative Wrap-Up

A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES

WITH THE SPRINKLER MANDATE EFFECTIVE DATE LOOMING, THE LEGISLATURE POSITIONED A BAN ON THE MANDATE AS PART OF THE FINAL POLICY NEGOTIATIONS OF THE 2014 SESSION. IN SPITE OF BI-PARTISAN SUPPORT

THE GOVERNOR BLOCKED THE OPPORTUNITY TO LEAVE SPRINKLERS AS A HOMEOWNER CHOICE FOR THE FOURTH CONSECUTIVE SESSION.

THIS NOW BECOMES AN ELECTION ISSUE.

A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES

2014 Legislative Wrap-Up

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Sprinkler Mandate Prohibition BATC Position: Support Sprinkler Mandate Prohibition Outcome: Provision included in Senate Bonding Bill but was removed at the Governor’s insistence in the final global discussions to conclude the session

ISSUE BACKGROUND: BATC’s top priority again this session was the removal of the home indoor sprinkler system mandate currently in the draft Minnesota building code. This mandate would require sprinkler systems in all homes 4,500 sq. feet (includes finished/unfinished basements) and above. Since 2011, BATC has successfully advanced bills through the Legislature to remove the mandate. However, all bills and amendment attempts were vetoed or removed by pressure from Governor Dayton. The home indoor sprinkler system mandate as proposed in the code would increase the cost of a new four-bedroom, three-bathroom home by $9,000. If the home uses private well water, as many communities in the Twin Cities do, the costs can range from $15,000 to $20,000 once water pump and well improvements are considered. This cost does not include annual maintenance, higher property taxes, or the cost if the home indoor sprinkler system were to malfunction.

2014 ACTIVITY: So much happened in the short session of 2014 related to BATC’s all-out effort to defeat the proposal for sprinklers that it’s difficult to capture in a short synopsis. After assessing that a stand-alone bill to ban the sprinkler mandate would likely face a gubernatorial veto this session (after all, he twice previously vetoed successful bi-partisan bills), BATC’s lobbying team and leadership moved to an alternate strategy. That was to attach the prohibition on sprinklers to a bill the Governor would very much like to sign. There were few possible bills, and all faced great challenges regarding the willingness of legislative leaders and authors to include our language. But we were heartened when Sen. David Senjem (R-Rochester), our leading advocate on the issue, offered an amendment on the floor of the Senate to a building inspector bill prohibiting the sprinkler mandate. It passed 44-20. As we worked throughout the session to shore up legislative support, we moved into the public arena on this issue with a major $75,000 public relations effort involving radio, TV, print and social media. Our campaign was informed by research and created with the assistance of our expert public relations firm, Himle Rapp, one of the leading issue advocacy strategists in the state. Knowing we’d need a full rpm effort, we also sought the support of the Minnesota Association of Realtors, which also put $75,000 into the mix for patch-through phone calling and a targeted social media campaign. BATC developed and launched NoSprinklerMandateMN.com, a micro site (our petition on the site ultimately garnered more than 10,000 signatures). Our public relations efforts and those of MAR were designed to drive traffic to the site. Our plan was to generate public support for our ban on sprinklers with a particular focus on key districts, thereby placing pressure on legislators who would then bring the issue to their leadership and Governor Dayton. President Shawn Nelson conducted well over a dozen interviews with major media outlets and BATC was called upon repeatedly by reporters.

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2014 Legislative Wrap-Up

A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES

But we knew that wouldn’t be enough. So we launched a major grassroots effort as well, asking our members (as did the Realtors) to contact their legislators regarding the issue. We heard from many legislators that our efforts were successful and legislative offices notched many a call. Even as we undertook this public effort, we began quiet work with key Senate leaders seeking to add our sprinkler prohibition to the state’s massive bonding bill. The bonding bill was one of the last trains to leave the station during the session and lobbying groups, including the fire services, were shocked when the Senate bonding bill was released with our legislation included. “Incredible play,” many said, recognizing what a coup it is to attach a policy rider to the state’s biggest spending bill. In fact, it was clear recognition that BATC and the building industry, through our relentless efforts, had risen in stature at the Capitol. To keep up the pressure, BATC brought on board three additional DFL lobbyists held in the highest regard by the DFL party—former Senate Majority Leader Roger Moe; former Speaker of the House Robert Vanasek and long-time Larkin Hoffman lobbyist Jerry Seck. We stayed in the bonding bill for two roller coaster weeks. We felt that even if we didn’t score an outright ban, we could perhaps delay implementation. But as the saying goes, we missed it by that much. Our sprinkler issue rose to such stature that Governor Dayton publicly called us out twice, once in a major press conference, warning his colleagues that he would veto the entire $1 billion bonding bill if our provision remained. There’s an adage in politics that governor’s usually get what they want. Faced with the Governor’s stern public statements and veto threat, key leadership of the House and Senate removed our provision. While this outcome was not entirely unexpected, it is extremely frustrating and disappointing. We at BATC know we gave this fight everything we had, and we understand that the Governor’s intransigence is the sole cause for the sprinkler mandate, but it remains painful to consider our current position. There is true reward in that we clearly elevated the stature of BATC and the building industry—which will help us a great deal in the years to come, and will undoubtedly contain many more challenging mandates and regulations. BATC continues to explore all options with regard to this issue and we expect further discussion as the legislature reconvenes in 2015.

A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES

2014 Legislative Wrap-Up

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BUILDER-PAY ATTORNEY FEES FOR HOMEOWNERS WHO PREVAIL IN WARRANTY DISPUTES RESURFACED AT THE CAPITOL IN 2014. WHILE ATTEMPTING TO PROVIDE MORE PROTECTIONS TO THE EXISTING WARRANTY LAW, BATC ARGUED THAT THIS CHANGE WOULD DRIVE LITIGATION, INCREASE COSTS, AND WOULD REMOVE KEY INCENTIVES TO RESOLVE ISSUES QUICKLY.

THAT PERSPECTIVE WAS WELL RECEIVED AND THE ISSUE STALLED IN COMMITTEE.

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2014 Legislative Wrap-Up

A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES

Builder-Pay Attorney Fees (HF 2612/SF 2146) Senate Author: Senator Barb Goodwin (DFL-Columbia Heights) House Author: Representative Carolyn Laine (DFL-Columbia Heights) BATC Position: Oppose bill; favor existing American Rule where both parties pay for their attorney fees Outcome: Provision failed to advance past committees

ISSUE BACKGROUND: Builder-pay attorney fees have been part of the consumer protection discussion for homeowners over much of the past decade. Consumer advocacy groups cite disadvantages for homeowners seeking remedy in the courts in home warranty claims. BATC has supported legislation that attempts to codify communication and inspection protocols in an effort to solve warranty claims at the earliest opportunity. BATC prefers this approach over one-sided attorney fees favoring a homeowner, which increases litigation and costs.

2014 ACTIVITY: BATC objected to the proposal upon its introduction, given the substantial consumer protections afforded in the home warranty law and an abiding belief in the American Rule on attorney fees. The American Rule provides that each party is responsible for paying its own attorney’s fees unless specific authority granted by statute or contract allows the assessment of those fees against the other party. Many legislators agreed with BATC’s position and the proposal failed to make the policy deadline in both the House and the Senate. There were multiple attempts to schedule an informational hearing following the committee deadlines to further vet the issue, but each of the scheduled hearings were subsequently removed. This is likely an indicator that the issue is still searching for broader traction, but it also signals that there is commitment to keep this issue alive. Look for this issue to continue to garner attention in the interim, as proponents position for another run in the 2015 legislative session.

A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES

2014 Legislative Wrap-Up

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RULEMAKING. THE GOVERNOR ATTEMPTED TO STREAMLINE THE RULEMAKING PROCESS,

BUT WENT TOO FAR IN PROPOSING SWEEPING CHANGES TO THE RULEMAKING PROCESS THAT WOULD LIMIT INDUSTRY INPUT AND CREATE A FASTER TRACK FOR NATIONAL CODE PROVISIONS LIKE THE SPRINKLER MANDATE AND THE STORMWATER PERMIT UPDATES.

IN THE END, THE GOVERNOR’S BILL STALLED JUST PRIOR TO MAKING IT TO THE FINISH LINE.

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2014 Legislative Wrap-Up

A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES

Rulemaking Bill (HF 2724 /SF SF 2467) Senate Author: Senator Sandra Pappas (DFL-St. Paul) House Author: Representative Mike Nelson (DFL-Brooklyn Park) BATC Position: Oppose provisions limiting notice and creating fast-track for national model rule provisions Outcome: BATC-opposed provisions were removed from the bill, overall bill stalled in final days of session

ISSUE BACKGROUND: The sweeping attempt to amend Minnesota’s Administrative Rule process drew BATC opposition at multiple points. BATC’s main areas of concern were: • Allowing incorporation of model law, regulations, or standards using expedited procedures if the proposed change was approved by an organization primarily composed of governmental entities. A group composed of primarily government entities should not trigger an automatic use of the expedited rules process. Reliance that such a group has crafted rule language that fits Minnesota’s unique regulatory structure and business climate is misplaced. • The current 60-day notice of intent to adopt rules gives interested groups like BATC a warning that an important issue for them is about to be discussed and decided. They can study the issue and proposed policy changes, seek expert assistance, discuss the general issue with members and other affected parties, discuss the relative importance of the topic to decide on resources necessary to address the rule, and talk to the agency about general topics of concern in advance of the formal hearing process. By making that optional and of any time length, it removes that ability to be adequately prepared. It also removes time to make the case that an agency has improperly decided an issue is unlikely to be controversial. • BATC favors a thorough process to avoid unintended consequences of poorly crafted regulations, and disagrees with limiting the ALJ to only topics raised by written testimony.

2014 ACTIVITY: The bill received multiple hearings in a contentious pathway towards passage. Most of BATC’s direct concerns were successfully amended out along the way in committee hearings. In the end, continued opposition from the business community and local governments proved to be too much and the bill stalled in the waning days of session, failing to pass into law.

A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES

2014 Legislative Wrap-Up

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DEBATE OVER THE THREE B2B TAXES WHICH WERE RAISED IN 2013 BECAME A MERE FORMALITY WHEN THE DEPTH OF THE TAX INCREASE CREATED A SUBSTANTIAL SURPLUS.

THE EFFECT OF CREATING THE TAX AND QUICKLY REMOVING IT WILL BE DEBATED FOR SOME TIME.

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2014 Legislative Wrap-Up

A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES

Repeal Business-to-Business Taxes (HF 1777) Senate Author: Senator Rod Skoe (DFL-Clearbrook) House Author: Representative Ann Lenczewski (DFL-Bloomington) BATC Position: Support to the bill Outcome: All three B2B taxes were repealed

ISSUE BACKGROUND: Last year the Legislature passed and the Governor signed into law new business-to-business taxes. The business-to-business labor service tax was burdensome and holding back the fragile homebuilding recovery. In addition, it was a challenge for businesses to comply with the law as the industry tries to properly identify what labor services are to be taxed. Guidance from the Department of Revenue was not clear and its interpretation of what is included or excluded from the service tax changed regularly. The Stateâ&#x20AC;&#x2122;s February 2014 budget and economic forecast revealed a rise in the projected balance to $1.233 billion. The long-term budget outlook remains positive. There is no need for the State to impose these business-to-business taxes. Not only are they economically unnecessary, but they contribute to a poor business climate for Minnesota.

2014 ACTIVITY: With 2014 election overtones in the air, the Legislature moved quickly to repeal all three B2B business taxes.

A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES

2014 Legislative Wrap-Up

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THE SUB-CONTRACTOR PILOT PROGRAM WAS CONTROVERSIAL GIVEN THE ELEVATED AND UNEXPECTED LEVEL OF ENFORCEMENT DURING THE PILOT PERIOD, WHICH IS GENERALLY AN EDUCATIONAL INTRODUCTION TO TEST A POLICY. NONETHELESS, LABOR UNIONS AND THE DEPARTMENT OF LABOR AND INDUSTRY PRESSED TO MAKE THE PILOT PERMANENT.

THE PROGRAM LEFT SESSION AS A PERMANENT PROGRAM, BUT NOT BEFORE BEING AMENDED TO INCLUDE A ONE-TIME PENALTY-FREE PERIOD FOR FIRST-TIME INFRACTIONS.

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2014 Legislative Wrap-Up

A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES

Subcontractor Pilot Project Made Permanent Senate Author: Senator Matt Schmitt (DFL-Red Wing) House Author: Representative Mike Nelson (DFL-Brooklyn Park) BATC Position: Let the pilot project expire on June 31, 2014 (do not let it become a permanent mandate) Outcome: Pilot project became permanent, but a safe-harbor was created for first-time infractions

ISSUE BACKGROUND: In 2012 the Legislature created a subcontractor registration pilot project. Contractors who provide building construction or improvement services (and do not need to be licensed) are required to register with DLI through the Construction Contractor Registration Pilot. Since its inception the pilot project has registered over 12,000 independent contractors. The pilot project was slated to sunset June 30, 2014. The law replaced the Independent Contractor Exemption Certificate (ICEC) program with a simplified two-year pilot project for registration of contractors who provide building construction and improvement services. It also establishes a framework, including the longstanding nine-factor test, within which individual construction workers may be determined to be employees or independent contractors. During the pilot, licensed residential contractors learned that it created a heavy burden for them to achieve compliance. • While it is easy for a subcontractor to register, contractors have the obligation to verify subcontractor status for each job, and to demand that subcontractors register before doing work with them – essentially making the contractor an enforcement agent of the State. • In addition, against the original intent of the law, some state agencies used this pilot project as authority to enforce unemployment, tax and workers compensation laws, often resulting in tens of thousands of dollars in fines. • Adding to the frustration is that the State’s website to confirm the registration status of a subcontractor is not always in working order, or can fail to reveal a registered business if there is a slight difference in search terms.

2014 ACTIVITY: The bill cleared both bodies and the Governor signed a bill making the pilot program permanent, but not before including industry language which protects first-time infractions from being subject to fines or other penalties.

A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES

2014 Legislative Wrap-Up

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SOLAR AND OTHER ALTERNATIVE ENERGY SOURCES EMERGED MORE PROMINENTLY IN THE 2014 SESSION. AN EFFORT TO LIMIT THE ABILITY OF A HOMEOWNER ASSOCIATION TO PROHIBIT SOLAR PANELS ON ROOFS OF STRUCTURES EVOLVED INTO A PROPERTY RIGHTS DISCUSSION WHICH ULTIMATELY ENDED UP BLOCKING THE PASSAGE OF THE BILL.

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2014 Legislative Wrap-Up

A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES

Solar Ban Prohibition in Certain Homeowners Associations (SF 2555/HF 2918) Senate Author: Senator Chris Eaton (DFL-Brooklyn Center) House Author: Representative Will Morgan (DFL-Burnsville) BATC Position: Concerns with property rights precedent Outcome: Bill failed to clear conference committee

ISSUE BACKGROUND: The bill attempted to prohibit limits on certain residential solar energy systems. The bill would prevent homeowners associations, common interest communities, and other residential communities from limiting a homeowner’s use of solar energy when the homeowner owns a single-family dwelling that is attached or detached, where the owner is responsible for the roof. This bill did allow a homeowners association or common interest community, or other community subject to a homeowners association document, to impose other restrictions on the installation, maintenance, and location of the solar energy system.

2014 ACTION: The bill was folded into the Omnibus Energy Bill near the end of session and proceeded to the conference committee. Amidst property rights concerns forwarded by BATC and others, the language was removed from the final bill and the issue failed to pass into law in 2014.

A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES

2014 Legislative Wrap-Up

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BATC HAS LONG SUPPORTED EFFORTS TO STREAMLINE AND INCREASE EFFICIENCY IN THE DEVELOPMENT APPLICATION AND APPROVAL PROCESS. GOVERNOR DAYTON HAS MADE THIS A PRIORITY AND HAS FOCUSED HIS EFFORTS MAINLY ON THE ENVIRONMENTAL PERMITTING TIME PERIODS FOR STATE AGENCY REVIEW.

AS IT HAD IN PREVIOUS SESSIONS, A BILL PASSED WHICH REQUIRED TIMELY RESPONSES TO CERTAIN APPLICATIONS

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2014 Legislative Wrap-Up

A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES

Environmental Permitting (HF 644/SF 561) Senate Author: Senator Bev Scalze (DFL-Owatonna) House Author: Representative Melissa Hortman (DFL-Inver Grove Heights) BATC Position: Neutral on final bill Outcome: Provision passed and was signed into law as Chapter 237

ISSUE BACKGROUND: With the stated goal of improving efficiency and reducing wait times, new reforms signed into law by Governor Dayton aim to continue the enforcement of Minnesota’s strong environmental protections, while improving the efficiency of the permitting process. The reform measure makes the following changes to state law: A TWO-TIERED STRATEGY FOR STREAMLINING PERMIT REVIEW The Minnesota Pollution Control Agency and the Department of Natural Resources review and issue a wide variety of complex permits every year. To ensure these permits are reviewed responsibly and efficiently, the law creates a new two-tiered system that will streamline the permitting process. • 90-Day Goal – An estimated 11,000 permits every year, including the most general and registration permits for air, water and land, will be issued in 90 days or less. • 150-Day Goal – Most complex air, water and land construction permits that require public comment periods and more detailed review will be issued in 150 days. TEN-YEAR PERMITS FOR LOW-RISK PROJECTS Rather than asking businesses to re-apply for non-controversial permits every five years, the law creates a new ten-year permit for non-federal permits that present a low risk to our environment and human health. To ensure strong environmental protections, businesses that propose changes to their facilities within that ten-year time-period would be required to re-submit their permit application for review. MAKING THE PERMITTING PROCESS MORE FLEXIBLE If a business wants to expedite its project, owners can help pay for private consultants and staff overtime at state agencies after a permit application has been submitted for approval. To make the process even more flexible, the new law now allows businesses to speed up the permitting process before it starts – creating a fee-for-service model that involves state agencies earlier in the process to eliminate confusion and ensure the business and state regulators have clear expectations and a shared understanding of the project.

2014 ACTION: These new reforms garnered broad bipartisan support in the Legislature this session, passing the House by a vote of 92-39, and the Senate by a vote of 61-1.

A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES

2014 Legislative Wrap-Up

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FOLLOWING A MINNESOTA SUPREME COURT DECISION WHICH OVERTURNED THE DNRs ABIILTY TO REVIEW LOCAL ORDINANCES FROM CITIES ALONG THE LOWER ST. CROIX RIVER, THERE HAVE BEEN EFFORTS TO CREATE THAT AUTHORITY FOR THE DNR.

BATC HAS OPPOSED THIS EFFORT AS IT IS DUPLICATIVE AND UNNECESSARY. FOLLOWING EARLY MOVEMENT IN THE SENATE, THE BILL LOST MOMENTUM AND FAILED TO CLEAR THE COMMITTEE PROCESS.

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2014 Legislative Wrap-Up

A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES

Lower St. Croix Wild and Scenic River Review Process (SF 2272/2714) Senate Author: Senator Katie Sieben (DFL, Newport) House Author: Representative Rick Hansen (DFL, South St. Paul) BATC Position: Oppose Outcome: Bill failed to pass

ISSUE BACKGROUND: This bill attempts to establish a review and certification process for the Department of Natural Resources (DNR) to review and certify local ordinances issued for the Lower St. Croix Wild and Scenic River. A similar provision had been a part of the DNR rules for the Lower St. Croix Wild and Scenic River, but was overturned by the Minnesota Supreme Court in re. Hubbard, 778 N.W. 2d 313 (February 11, 2010). The court ruled that the DNR did not have express or implied statutory authority for the rule. Enacting this section would grant express authority for the rule. No zoning ordinance or amendment to a zoning ordinance can become effective until the commissioner of the DNR certifies that it complies with guidelines and standards adopted by rule. If the DNR does not act within 30 days, the ordinance or amendment is considered to be certified. BATC joined the League of MN Cities and others in expressing concerns about the legislation. Major issues included: •

The addition of another regulatory process for review of variance requests is an onerous and unnecessary requirement placed upon property owners in the lower St. Croix River area. BATC believes that local government units in the area are in the best position to receive and manage local land use requests and are currently completing this function adequately and efficiently.

•

The additional regulatory process will raise costs and cause process delays for applicants. Additional costs continue to erode housing affordability, and in shortened construction seasons commonly experienced in Minnesota, delays will further exacerbate these cost concerns.

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More generally, SF 2272/HF 2714 represents a step in the wrong direction in terms of the regulatory efficiency work prioritized by the Dayton administration and both majority caucuses. BATC is strong supporter of these efforts and believes that this legislation proposes precisely the type of inefficiency that we are attempting to remedy. Minnesota is already in the top tier when it comes to housing regulations nationally, and is the highest housing-regulated state in the Midwest. We can ill afford to add to that regulatory burden with an unnecessary additional regulatory process.

2014 ACTION: The bill was heard and passed the Senate Energy and Environment Committee as well as the Senate State and Local Government Committee. Following its two successful committee hearings, the bill was referred to the Senate Finance Committee but was never heard due to strong opposition from BATC and local government groups opposed to the legislation. In the House the bill was introduced but was never heard, stalling the bill for the 2014 session. A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES

2014 Legislative Wrap-Up

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Other Issues Monitored and Addressed by BATC during the Legislative Session MINIMUM WAGE As one of the highest profile issues of the session, the legislature and Governor agreed to hike the state’s minimum wage. New minimum-wage law takes effect August 1, 2014. Large employer wage $6.15/hour

$8.00/hour on Aug. 1, 2014 $9.00/hour on Aug. 1, 2015 $9.50/hour on Aug. 1, 2016

Small employer wage $5.25/hour

$6.50/hour on Aug. 1, 2014 $7.25/hour on Aug. 1, 2015 $7.75/hour on Aug. 1, 2016

90-day training wage $4.90/hour

$6.50/hour on Aug. 1, 2014 $7.25/hour on Aug. 1, 2015 $7.75/hour on Aug. 1, 2016

Youth wage No youth wage

$6.50/hour on Aug. 1, 2014 $7.25/hour on Aug. 1, 2015 $7.75/hour on Aug. 1, 2016

Inflation increase

Inflation indexing begins Jan. 1, 2018

No inflation increases

PARK FEE AUTHORITY Prior to the session, BATC was approached by proponents of legislation which would grant local governments the authority to create a park fee to be dedicated to park expansion and maintenance. The proposed fee would be established by the local government and included as part of a property owner’s property taxes. A bill provision required notice, but did not require a referendum for the fee. BATC, along with the Minnesota Association of Realtors opposed the bill which failed to gain traction in 2014.

STREET IMPROVEMENT DISTRICTS The 15-year battle between business groups and local governments over authority to create street improvement districts enjoyed a light session in 2014. While the language was discussed throughout the supplemental budgeting process, there wasn’t enough traction to place the provision into the bill and subsequent debate. Look for this to resume in 2015, which promises to be a transportation-heavy session.

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2013 Legislative Wrap-Up

A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES

Other Issues In addition to the major initiatives monitored and addressed by BATC during the legislative session.

MINIMUM WAGE As one of the highest profile issues of the session, the legislature and Governor agreed to hike the state’s minimum wage New minimum-wage law takes effect Aug. 1, 2014 Large employer wage $6.15/hour* $8.00/hour on Aug. 1, 2014 $9.00/hour on Aug. 1, 2015 $9.50/hour on Aug. 1, 2016 $5.25/hour $6.50/hour on Aug. 1, 2014 Small employer wage $7.25/hour on Aug. 1, 2015 $7.75/hour on Aug. 1, 2016 90-day training wage (under 20 years of age) $4.90/hour $6.50/hour on Aug. 1, 2014 $7.25/hour on Aug. 1, 2015 $7.75/hour on Aug. 1, 2016 Youth wage (under 18 years of age) No youth wage $6.50/hour on Aug. 1, 2014* $7.25/hour on Aug. 1, 2015 $7.75/hour on Aug. 1, 2016 Inflation increase No inflation increases Inflation indexing begins Jan. 1, 2018

THE LEADING VOICE

PARK FEE AUTHORITY

FOR BUILDERS & REMODELERS

Prior to the session BATC was approached by proponents of legislation which would grant local governments the authority to create a park fee to be dedicated to park expansion and maintenance. The proposed fee would be established by the local government and included as part of a property owner’s property taxes. A bill provision required notice, but did not require a referendum for the fee. BATC, along with the Minnesota Association of Realtors opposed the bill which failed to gain traction in 2014.

STREET IMPROVEMENT DISTRICTS The 15-year battle between business groups and local governments over authority to create street improvement districts enjoyed a light session in 2014. While the language was discussed throughout the supplemental budgeting process, there wasn’t enough traction to place the provision into the bill and subsequent debate. Look for this to resume in 2015 which promises to be a transportation-heavy session.

INDEMNIFICATION

Other Issues In addition to the major initiatives monitored and addressed by BATC during the legislative session.

PARK FEE AUTHORITY Prior to the session BATC was approached by proponents of legislation which would grant local governments the authority to create a park fee to be dedicated to park expansion and maintenance. The proposed fee would be established by the local government and included as part of a property owner’s property taxes. A bill provision required notice, but did not require a referendum for the fee. BATC, along with the Minnesota Association of Realtors opposed the bill which failed to gain traction in 2014.

2014 LEGISLATIVE

STREET IMPROVEMENT DISTRICTS

SESSION REVIEW

The 15-year battle between business groups and local governments over authority to create street improvement districts enjoyed a light session in 2014. While the language was discussed throughout the supplemental budgeting process, there wasn’t enough traction to place the provision into the bill and subsequent debate. Look for this to resume in 2015 which promises to be a transportation-heavy session.

INDEMNIFICATION 2960 CENTRE POINTE DRIVE ROSEVILLE, MN 55113 APPENDICE D • 2013 Legislative Wrap-Up AWWW.BATC.ORG MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES 2013 Legislative Wrap-Up • APPENDICE A

SO MUCH MORE THAN

UMBER

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952-470-4800 www.lymanlumber.com BATC.org

July–September 2014

Builders’ Digest

April 22, 2014 3

GREEN PATH EARTH DAY

MN Green Path Earth Day Celebration, April 22, 2014: 1. MN Green Path celebrated Earth Day with over 75 builders and remodelers involved or interested in the energy and green certification program. 2. James Vagle, Public Policy Director, BATC 3. Brian Robbins, Pella Windows & Doors 4. The guys of Key Land Homes: Troy Fedorko, Keith Horkey, Tom Schutz and Mark Ryks

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October 23, 2014 ST. PAUL UNION DEPOT

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

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July–September 2014

BATC.org

THANK YOU

CONTINUING EDUCATION INSTRUCTORS Thanks to all our exceptional BATC U Continuing Education Instructors for sharing your expertise with our members. Lee Bergum, Energy Panel Structures Kurt Blauer, Anchor Block Company Alissa Boroff, Access Solutions Karen Brehmer, IRS Peter Coyle, Larkin Hoffman Law Firm Kelly Frauenkron, BASF Corporation Ryan Hatton, Halleland Habicht, P.A. Mike Hoppe, Corporate Four Insurance Agency Patrick Huelman, University of Minnesota Paul Kangas, Loucks Associates Gene Karjala, Anchor Block Company Larry Larson, Corporate Four Insurance Agency Mark Litherland, PrimeLending Tony Lund, BASF Corporation Nick Mannel, Loucks Associates Michael Mayerchak, Xcel Energy Douglas McIntyre, Foley & Mansfield John Miller, Northstar Associates, Inc. Sean Mooney, The Private Bank Shawn Nelson, New Spaces Thomas Okoneski, Acumen Legal Services Brian Oman, BASF Corporation Chris Pascente, Oldcastle Alden Pearson, Acumen Legal Services Elizabeth Poeschl, Meagher & Geer, PLLP John Primozich, The Builders Group of MN John Riffe, Auer Steel & Heating Supply Charles Schoenwetter, Bowman and Brook, LLP Jeff Shopek, Loucks Associates Joseph Springer, Fredrickson & Byron, P.A. Tom Standke, Minnesota Department of Health Sean Stevens, Carlton Insurance Agency Mike St. Martin, Loucks Associates Richard Stone, University of Minnesota Extension Heidi Wagner, University of Minnesota Mark Weishaar, Diamond Kota Pre-finishing James Wells, Tremco Barrier Solutions

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July–September 2014

Builders’ Digest

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2013 Top-Ranked Builders Twin Cities Region By Gross Revenue from Residential Sales Activity for Calendar Year 2013

1. 2.

Lennar — Minneapolis/St. Paul gross rev. $224,056,904 units 532 Pulte Homes of Minnesota, LLC gross rev. $131,380,445 units 274

D.R. Horton, Inc. — Minnesota gross rev. $121,154,072 units 289

Ryland Homes — Twin Cities Division gross rev. $116,910,000 units 345

Mattamy Homes gross rev. $98,928,000

units

300

TOPBUILDERS

Hanson Builders, Inc. Includes Jonathan Homes gross rev. $69,571,469 units 111

Gonyea Homes, Inc. gross rev. $57,942,794

RESULTS FROM BATC’S ANNUAL SURVEY show that Lennar - Minneapolis/St. Paul was the region’s top ranked builder once again in 2013. Lennar has held the top spot since 2006. Rankings are based on annual gross revenue as reported by respondents for for-sale housing. Lennar reported gross revenue at $224 million for 434 single family and 98 multi-family homes (532 total) closed in the 2013 calendar year. Lennar outpaced the second ranked builder, Pulte Homes of Minnesota, by 70 percent, clearly staking their position as top residential builder in the region.

10. Capstone Homes, Inc.

All of the top five ranked builders are national firms with corporate offices located outside of Minnesota. Following Lennar, the four next largest volume builders were Pulte Homes of Minnesota, with over $131 million in revenue and 274 housing units closed, followed by D.R. Horton-Minnesota with revenue of almost $121 million and 289 units, Ryland Homes - Twin Cities Division with $117 million revenue and 345 housing units, and Mattamy Homes at $99 million and 300 units.

“At Lennar, our focus is on our homeowners and their families, and I believe that’s the Lennar difference. That’s why our home buyers have enabled us to be the Twin Cities number-one home builder for the eighth consecutive year,” said Bill Burgess, Minnesota Division President. “Our core beliefs and values have been formed by the thousands of homes we have built over the past 40-50 years for Twin Cities families. We have listened and learned about what is important to our buyers’ families, and that feedback has shaped the way we

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. Commercial construction firms building rental or senior housing were not included in this ranking. National builder, Toll Brothers plus local builders Stonewood LLC and John Kraemer & Sons, which according to Keystone Reports data, may have been included in the top 25, declined to participate.

RANKED

Builders’ Digest

build our neighborhoods and homes today.”

July–September 2014

8. 9.

KEY LAND Homes gross rev. $45,314,860

units

132

K. Hovnanian Homes of Minnesota LLC gross rev. $35,863,686 units 167 gross rev. $41,736,242

units

137

units

146

11. Centra Homes, LLC gross rev. $36,764,791

12. Hans Hagen Homes, Inc. gross rev. $35,250,000

units

117

13. Robert Thomas Homes, Inc. gross rev. $34,467,713

units

14. Youngfield Homes DBA Country Joe Homes gross rev. $31,224,598

units

15. LDK Builders, Inc. gross rev. $30,255,531

16. Brandl Anderson Homes, Inc. gross rev. $29,739,789

units

17. Sharper Homes, Inc. gross rev. $29,337,000

18. Donnay Homes, Inc. gross rev. $23,241,000

19. Creek Hill Custom Homes, Inc. gross rev. $19,642,807

units

20. Charles Cudd DeNovo, LLC gross rev. $19,600,000

units

21. NIH Homes, LLC gross rev. $18,943,922

22. GBI Homes, Inc. gross rev. $18,463,060

23. SW Wold Construction, Inc. gross rev. $17,870,791

units

24. Novak-Fleck, Inc. gross rev. $17,283,080

units

25. Ron Clark Construction gross rev. $16,812,555

units

Commercial construction companies constructing rental or senior housing, that are not members of the Builders Association of the Twin Cities were not included in this ranking. 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.

BATC.org

advocacy

Elections 2014

PRESIDENT’S CLUB

Housing First in High Gear Housing First Activity CANDIDATE INTERVIEWS

COLLABORATION

BATC staff and leadership have interviewed candidates for Governor and the Minnesota House of Representatives from key battleground districts. These interviews elevate industry issues with candidates running for office and give our leadership an opportunity to learn more about candidates.

Key to any successful election campaign is effective collaboration with like-minded groups. BATC has been an active leader in a convening a coalition of business groups to discuss key issues and compare notes on the always evolving political landscape. These discussions enrich Housing First’s decision-making process and make for a more efficient use of funds during the election cycle.

RESEARCH & POLLING Given the surge of sophistication in statewide and legislative political races, research and polling is a must for groups like Housing First. BATC is doing the important ‘infrastructure’ work this summer to better understand demographics, voting trends, hot-button issues, and candidate viability in our targeted areas. This information, along with candidate interviews and assessments of the dynamics of the various races will provide the basis for endorsement decisions.

Millwork Division

HOUSING CHAMPION’S CLUB

2014 FUNDRAISING CAMPAIGN ONGOING The 2014 election stakes are high. With the Governor up for re-election, as well as the MN House of Representatives, Housing First has the opportunity to impact elections and increase awareness of key homebuilder issues in a way that we will not see for another decade. Fundraising is off to a strong start, but we need your help to raise funds to elect champions for our industry. Join these industry colleagues by contributing to Housing First. Learn more at housingfirstmn.org

font is esprit med

SPECIAL THANKS TO OUR CONTRIBUTORS: PARTNER’S LEVEL and more by Kori Brush Masters C.N. Ostrom & Sons, Inc. Country Joe Homes Custom Millwork, Inc. Elander Mechanical Fieldstone Family Homes, Inc. Fireside Hearth & Home FocalPoint/Builders Carpet Global Closing & Title Service Hans Hagen Homes, Inc. Harkraft, Inc. HouseRater

Builders’ Digest

Huikko Plumbing John Kraemer & Sons, Inc. KEY LAND HOMES Lampert Lumber Stinson Leonard Street, LLP McDonald Construction, Inc. Metro Foundations Metro Home Insulation, LLC Metro Siding, Inc. New Spaces North American Realty, Inc. Pro Drywall & Painting, Inc. Residential Science Resources Stone Cottage Construction, Inc. Swanson Homes

July–September 2014

The Builders Group Villaume Industries, Inc. Weis Builders Westwood Professionals Services, Inc.

FRIEND OF HOUSING Action Overhead Garage Door, Inc. All About Erosion Control/Paultz Construction Alside Installed Sales (Associated Materials) Builders Club

Cardinal Floors & Design, Inc. Collins Electrical Construction Co. Crystal Kitchen Center George Cundy Curt Christensen Custom One Homes Ron DeCoux Ronald Derrick Elite Waste Disposal Hallmark Building Supplies, Inc. Heating & Cooling Two, Inc. IDC - Automatic J & W Asphalt, Inc. JMS Custom Homes, LLC

Lemmerman Construction Manor Concrete Construction, Inc. Minnesota Valley Millwork, Inc. Parent Builders Inc. Pioneer Engineering, PA Princess Marble & Granite Rooke, Johnson & Renslow Insurance Agency Southview Design Torgerson, Robert Zenith Exteriors, Inc.

BATC.org

Commercial

Residential

The leader in new home driveway construction We install driveways for 4 out of the 5 largest home builders in Minnesota.

Family owned, 35 years experience in the home building industry.

See us for Your Construction or Home Financing Needs

Mary Illetschko

Ann Vanderloo

Mortgage Loan Officer Cottage Grove Office (651) 438-7383 mcilletschko@merchantsbank.com merchantsbank.com/milletschko

Mortgage Loan Officer Lakeville Office (952) 841-4268 amvanderloo@merchantsbank.com merchantsbank.com/avanderloo

The Bank that Service Built Follow us on:

Parking Lots, Pathways, Driveways

Call for a quote today.

952.894.9078 www.jwasphalt.com

Subject to credit approval.

Member FDIC

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 2014

Builders’ Digest

July–September 2014

BATC.org

ARE YOU READY? BUILDING CODE ENERGY CODE Make sure you sign up for our Lead Recertification classes coming this fall. Five years ago the law changed requiring you to be certified in lead abatement when you remodel homes built before 1978. Now it’s time for the required recertification. We’ll offer a wide range of times and dates (it’s only a half day for recertification) starting soon. Details will be mailed and posted online at BATC.org by August 1st.

LEAD

RECERTIFICATION

BATC’S GOT YOUR BACK! We’ll have your back with plenty of classes to ensure you, your project superintendents, estimators and subs are ready to roll when the new codes go into effect in late January 2015. Look for details online at BATC.org and in your mail and in-boxes in the next few weeks.

UNIVERSITY BATC.org

BATC BD_july2014_70.indd 1

651-697-1954

7/11/14 2:44 PM

parade of homes

Your Marketing Partner Our consumer-directed marketing brand is second to none!

MARKETING MADE EASY

PARADEOFHOMES.ORG

For 66 years, BATC has been promoting the region’s best new homes to Twin Cities’ consumers through the Parade of Homes. And for the past 27 years we’ve presented BATC’s talented remodelers in the Remodelers Showcase. Our long record of bringing real buyers to your doors while showcasing the beauty, quality and value that you, our member builders and remodelers have to offer is truly second to none.

While it may be too late to enter a project into this fall’s tours, it’s never too late to make sure your company is well presented on our consumer website. Our visitors use the Parade of Homes to research builders and remodelers, as well as to find products and services for their own home. Stand out to our visitors with a company upgrade. You can include photos, video, testimonials and extra web links. Give them a reason to click on to your website! You can upgrade with a credit

With almost 100,000 new home Guidebooks, just shy of 60,000 Remodelers Showcase Guidebooks, and over 111,000 unique visitors to ParadeofHomes.org during the tours, we have plenty of customers for your homes, remodeling services as well as your homerelated products and services.

Parade of Homes Marketing >> Almost 100,000 new home Guidebooks >> Just under 60,000 Remodelers Showcase Guidebooks >> 111,000+ unique visitors to ParadeofHomes.org during the tours

Builders’ Digest

July–September 2014

card online at ParadeofHomes.org, then come back and make changes whenever you wish. If you need a user name and password, please contact Emily Petermann (Emily@BATC.org or 651-697-1954).

Company Upgrades Builders and Remodelers not in Parade of Homes:

$400/YEAR Associates:

$250/YEAR Builders and Remodelers in the current tours:

$100/EVENT BATC.org

WE’RE EMBRACING

z GREAT OUTDOORS!

NOTABLE DATES Parade of Homes

To celebrate our sponsorship and rebuild of the KARE 11 Backyard,

July 8 Final Proofs Issued July 17 F inal Proofs Return Deadline July 17 Final Date to Banner a Home as Not Available for Showing

the Parade of Homes and Remodelers Showcase will both include an Outdoor Living editorial section this fall. In addition to articles about how to make their outdoor spaces special, we’ll showcase great backyards (or porches or front yards) of several Parade Homes and Remodeling projects. We’re even inviting the public to tour (for limited hours) the KARE 11 backyard.

July 17 F inal Date to Change Price July 17 Final Date to Move a Home Less Than One Mile July 17 Entry Payment Balance Due

Lecy Bros. Homes & Remodeling

July 17 Final Date to Provide Calendar Event Information Aug 14 Fall Tour Goes Live on ParadeofHomes.org Aug 22 Guidebooks are Delivered to Holiday Stationstores

DON’T MISS IT!

Remodelers Showcase GET YOUR FUTURE CUSTOMERS HERE!

July 8 Final Proofs Issued

Advertise in the 2014 Fall Parade of Homes and Remodelers Showcase Guidebooks and online at ParadeofHomes.org to reach the most qualified and motivated prospects. Whether you’re a builder or remodeler seeking new clients or your retail home products or services, the Parade of Homes and Remodelers Showcase has a proven track record of reaching the most real buyers.

July 17 Final Proofs Return Deadline

Give Kori or Brad Meewes a call to find the right package for you.

July 17 Entry Payment Balance Due

Contact Kori at 612-801-9874 or Kori@BATC.org, Brad at 651-269-2399 or Brad@BATC.org

Aug 22 Guidebooks are Delivered to Holiday Stationstores

Space Reservations Deadline: July 7, 2014

Aug 14 Fall Tour Goes Live on ParadeofHomes.org

July 17 Final Date to Banner a Home as “Not Available for Showing” July 17 Final date to provide information for printed Calendar of Events

Materials Due July 14, 2014

BATC.org

July–September 2014

Builders’ Digest

A Fabulous First We’re thrilled that our first ever Artisan Home Tour was a rousing success! Our Parade Craze app worked perfectly, making ticket purchase and touring really simple, while providing us with great intelligence. Each visitor received a unique ID, which was scanned as they entered each home, providing us with a truly accurate picture of our traffic. We’ll be digging into the data to share and help us improve for next year. While the tour is over, you’ll continue to see Artisan Homes popping up all over. First, tune into Channel 29 at 11:00 A.M. Saturday over the coming weeks to get an eyeful of these really fabulous homes on The Art of Home TV show. Then make sure to catch the Artisan Look Book that will be included in the Fall Artful Living Magazine. You’ll see a two-page spread on each of the homes.

ARTISAN HOME #11 BY SWANSON HOMES | PHOTOGRAPHY BY LANDMARK PHOTOGRAPHY

Thank you

Finally, we made it a point to select one of the most exciting features or products from each Artisan Home to populate our Fall Parade of Homes Style/Product editorial. These are the latest and greatest items for the home, and hopefully will entice our fall visitors to consider adding some of them to their own home (whether buying new at whatever price point, or remodeling).

to our participating builders and of course, our wonderful sponsors. GRAND MASTER SPONSORS

JOURNEYMAN SPONSORS

Up Next,

be sure to watch for:

ARTFUL LIVING FALL ISSUE

NOW TAKING ENTRIES FOR 2015!

ART OF HOME TV

We’re showing off all Artisan homes in a 50-plus-page look book polybagged with Artful Living’s Fall Issue.

If you’re interested in exploring participation next year, please contact Kori or Brad Meewes · 651.697.7591 kori@batc.org | brad@batc.org

Tune in Saturdays at 11:00am to Channel 29 for episodes featuring each Artisan Home.

BATC.org

July–September 2014

Builders’ Digest

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, who have joined BATC within the last three months. All American Title Company 8338 Highway 65 NE, Suite C Spring Lake Park, MN 55432 Lizzie Gartland 763-235-1800 lizzie@allamericantitleco.com allamericantitleco.com

American Glass & Mirror. com 5418 Cottonwood Lane Prior Lake, MN 55372 Guy Selinske 952-447-3151 glassguy@americanglassandmirror.com americanglassandmirror.com

Ancona Title & Escrow 4750 White Bear Parkway White Bear Lake, MN 55110 Tracy Turner 651-209-1144 tracy@anconatitle.com anconatitle.com

At Home Building & Remodeling, Inc. 15717 St. Andrews Lane Ramsey, MN 55303 Scott Breuer 612-328-8348 scott@scottbreuerhomes.com

BB Housing Associates, LLC 1645 Palace Avenue St. Paul, MN 55105 R. Michael Buelow 651-260-5558 MBuelow@ClintonCompany.com BBHousingonline.com

Black Dog Homes Co. 312 Hampton Street Wayzata, MN 55391 Daniel Vanderheyden 763-228-8555 dan@blackdoghomes.com blackdoghomes.com

Black Duck Restoration 6674 Black Duck Drive Lino Lakes, MN 55014 Robert Becker 651-338-3447 blackduckrestoration@hotmail.com

Capstone Law, LLC 120 S. Sixth Street, #1720 Minneapolis, MN 55402 Robert Shainess 612-548-1604 rob@capstonelaw.com capstonelaw.com

Builders’ Digest

Cobblestone Homes, Inc.

The Excelsior Group, LLC

JCarsten

1161 Wayzata Boulevard E., #308 Wayzata, MN 55391 Erik Olsen 952-473-3520 erik@cobblestonehomesinc.com cobblestonehomesinc.com

11455 Viking Drive, #350 Eden Prairie, MN 55344 Timothy Brown 612-353-3300 tim.brown@excelsiorllc.com excelsiorllc.com

2150 – 67th Street E. Inver Grove Heights, MN 55077 Jason Myrlie 651-592-7877 jason@jcarstenremodeling.com jcarstenremodeling.com

Cocoon, Inc.

Granite Unlimited, Inc.

6253 Bury Drive, #110 Eden Prairie, MN 55346 Steve Schirber 763-479-8560 steve@cocoon-insulation.com cocoon-insulation.com

8960 – 205th Street W. Lakeville, MN 55044 Pavel Glushko 952-469-5242 graniteunlimitedmarina@g-mail.com graniteunlimitedinc.com

JK Anderson Builders, Inc.

Concrete Coating Systems

Great Northern Builders, LLC

25029 Dupont Avenue Lakeville, MN 55044 Brad Jordahl 952-469-6496 brad@ccs-mn.com ccs-mn.com

9419 Buckley Court Inver Grove Heights, MN 55077 Chris Biljan 651-455-9371 natalie.greatnorthernbuilders@gmail.com greatnorthernbuildersllc.com

Jyland Construction Management Company

Cornerstone Custom Design 5047 – 190th Lane NE Columbus, MN 55092 Leah Johnson 612-990-6427 leah@cornerstonecustomdesign.com cornerstonecustomdesign.com

County Materials Corporation

Greenway Partners, LLC 1645 Palace Avenue St. Paul, MN 55105 Michael Buelow 651-260-5528 MBuelow@ClintonCompany.com BBHousingonline.com

Highmark Restorations, Inc.

1203 – 70th Avenue Roberts, WI 54023 Bryan Schahtz 715-749-4121 randy.thompson@countyzzmaterials.com countymaterials.com

12237 Nicollet Avenue S. Burnsville, MN 55337 Dave Maurer 952-641-3519 melissa.d@highmark-builders. com highmark-restoration.com

Dave Darling Remodeling & Construction, Inc.

HomeStyle Builders & Developers, Inc.

13108 Yukon Street NW Coon Rapids, MN 55448 David Darling 612-845-3586 ddremodeling@hotmail.com

Evolution Engineering 16790 – 2nd Street N. Lakeland Shores, MN 55043 Dean Robbins 651-303-7208 evolutionengineeringmn@gmail.com evolutionengineeringmn.com

July–September 2014

6190 White Drive Prior Lake, MN 55372 Mitchell Husnik 952-994-3980 homestylebuilders.mn@gmail. com

Hoxie Homes & Remodeling, LLC 1425 Hunter Square Waconia, MN 55387 Jeff Hoxie 952-457-4275 Category: Builder B jeff@hoxiehomes.com hoxiehomes.com

10887A Oak Grove Circle Woodbury, MN 55129 Jon Anderson 612-590-1405 jonnanderson@comcast.net

Norandex Building Materials Distribution 9655 Newton Avenue S. Bloomington, MN 55431 William Perrier 952-948-1705 William.perrier@norandex.com norandex.com

Owens Corning Sales, LLC 23755 Smithtown Road Shorewood, MN 55331 Brian Christenson 952-401-3360 brian.christenson@owenscorning.com owenscorning.com

201 E. Lake Street Wayzata, MN 55391 Bob Carlson 612-850-4001 bob@jyland.com jyland.com

PMI Homes, Inc.

Landmark Building Contractors, LLC

Quality Cut Remodelers

2116 – 2nd Avenue S. Minneapolis, MN 55404 Mark Schaefer 612-817-5483 dan@landmarkbuildco.com

Landucci Homes, Inc. 13230 – 20th Street Court N. Stillwater, MN 55082 Nate Landucci 651-894-2582 landucnl@hotmail.com landuccihomes.com

Mark Anthony Design Group, LLC P.O. Box 1074 Hudson, WI 54016 Anthony Nasvik 715-386-2928 tony@madesigngroup.com madesigngroup.com

MHS Construction, LLC 800 Nicollet Mall, #2850 Minneapolis, MN 55402 Nick Reimler 612-455-0700 rclux@alatusllc.com

Minnesota Design Build, LLC

350 Main Street N., #442 Stillwater, MN 55082 Michael Koch 612-867-3221 pmi@pmihomesinc.com

803 W. Fifth Street Red Wing, MN 55066 Kent Tsui, CR, CRPM 651-730-1880 kent@qualitycut.net qualitycut.net

Real Estate Agent Magazine 6621 Elliot Avenue S. Richfield, MN 55423 Ruth Tharaldson 952-873-9162 rtharaldson@realestateagentmagazine.com

Real Estate Opportunities, Inc. 999 Marie Avenue W. Mendota Heights, MN 55118 John ‘Jack’ Benke 651-405-9105 jtbenke@pro-ns.net caniageinplace.com

RMC Solutions, LLC P.O. Box 390131 5108 W. 74th Street Edina, MN 55439 Steve Zuckerman 612-466-0345 info@rmc123.com rmc123.com

5812 Eastview Drive Edina, MN 55436 Eric Perkins 612-219-0234 minnesotadesignbuild@yahoo. com minnesotadesignbuild.com BATC.org

Screenmobile Minnesota

Thermlink, LLC

14220 – 23rd Avenue N. Plymouth, MN 55447 Bill Huldeen 763-473-0180 screenmobilemn@aol.com screenmobile.com/twincities

3816 W. 55th Street Edina, MN 55410 Reed Gnos 952-250-4967 reed.gnos@thermlink.com thermlink.com

Sharratt Design & Company, LLC

Trace Design

464 Second Street, #100 Excelsior, MN 55331 Michael Sharratt 952-470-9750 info@sharrattdesign.com sharrattdesign.com

SJ Schiller Construction, LLC 1057 Bahls Drive Hastings, MN 55033 Steve Schiller 651-206-0460 sjschiller@comcast.net sjschiller.com

Snehta, Inc. 3340 Peachtree Road Atlanta, GA 30326 Kelly Masters 404-812-7169 kelly.masters@snehta.com snehta.com

Star Bank 250 Prairie Center Drive Eden Prairie, MN 55344 Jeff Williamson 952-358-2265 construction@starbank.net starbank.net

Stonebay Builders, LLC 14870 Brockton Lane Dayton, MN 55327 Thomas Osfar 763-479-6926 tom@stonebaymn.com

Stonegate Mortgage 1550 Utica Avenue S., #300 St. Louis Park, MN 55416 Morgan Fudge 855-761-4137 morgan.fudge@stonegatemtg.com stonegatetmtg.com

Sunflake Electric 907 Blackoaks Lane Anoka, MN 55303 Jake Devney 612-213-2240 sunflake.electrical@gmail.com SunflakeRemodeling.com

Tabor Group Landscape 6161 Wooddale Avenue Edina, MN 55424 Jeffrey Gaffney 952-220-5180 jeff.gaffney@taborlandscape.com taborlandscape.com

TC Homes, Inc. 13501 Balsam Lane Dayton, MN 55327 Brian Tutt 612-221-2704 btutt@tchomesmn.com tchomesmn.com

BATC.org

19118 Estes Road Clearwater, MN 55320 Rosalie Bell 320-558-2951 rosalie@trace-design.com

Tru Value Homes, LLC 5745 Meadow Lane Elko, MN 55020 Timothy Giles 952-461-3985 tcgiles85@aol.com

TS Building Supply, LLC 5565 Quam Avenue NE St. Michael, MN 55376 Tom Stutelberg 763-270-8877 karen@tsbuildingsupply.com

US Bank Home Mortgage

3x 3x 3x 3x 3x 3x 3x 3x 3x 3x 3x 3x 3x 3x 3x 3x October Membership Drive

EARN TRIPLE SPIKES! Coming this October, BATC will host another Membership Drive competition in conjunction with NAHB’s triple SPIKE offer. For every new member brought in during the month of October you will earn triple SPIKE points. Even better, we’ll be handing out amazing prizes and packages OCTOBER to participating members! Watch for details in the coming months!

10405 – 6th Avenue N., #300 Plymouth, MN 55441 Scott Havlik 763-417-7066 scott.havlik@usbank.com

Vallez Associates, Inc. 14201 Ewing Avenue S. Burnsville, MN 55306 Tom Vallez 952-894-5410 tvallez264@aol.com

BATC Member Orientation MAKE THE MOST OF YOUR MEMBERSHIP

WALZnRUF (Lakes | Sotheby’s) 3217L Galleria Edina, MN 55435 Geoffrey Serdar 952-230-3169 geoffrey@LakesMN.com WALZnRUF.com

Wayne R. Jones 9135 Fieldcrest Circle Monticello, MN 55362 Wayne Jones 952-920-0330 wayne@renovatewithjones.com renovatewithjones.com

You opened the door, now we’ll walk you through it! New members, and long-serving members alike, can benefit from joining this interactive session that gives the inside scoop to what BATC is all about.

Xcel Energy 1518 Chestnut Avenue Minneapolis, MN 55403 Kevin Taubenheim 612-337-2094 kevin.taubenheim@xcelenergy.com

Yardscapes, Inc. 8609 Harriet Avenue S. Bloomington, MN 55420 David Kopfman 952-887-2794 yardscapes@yardscapesinc.com

Join Us Tuesday, August 14th* 9:00-10:00am

BATC Board Room 2960 Centre Pointe Drive Roseville, MN 55113

FREE to Attend!

*If you can’t make it, please join us November 13th at 1pm To RSVP, Contact Deb Earl, Membership Director 651.697.7562 | deb@batc.org | or online at www.batc.org

July–September 2014

Builders’ Digest

membership

Say thanks to BATC’s Membership Committee We wanted to send a shout out to BATC’s Membership Committee for their hard work this year. In addition to attending committee meetings, these dedicated members are out and about welcoming our new members each month. They also are our front line in reaching out to prospective member companies. We wouldn’t be able to say BATC has 1,077 members and an 84% retention rate without them. Thanks! BRIAN ROBBINS Chair Pella Windows & Doors

TONY KOVAL Oakcrest Building Products

JILL MURPHY Vice Chair Martha O’Hara Interiors

KEVIN KRUGER Kruger Financial Services, Investment Planning & Wealth Management

ROSALIE BELL Trace Design

MARK LITHERLAND

CINDY CHAPMAN Light’N Up!

PATTIE MARTIN Glowing Hearth & Home

NICK CHRICHTON US Bank ANDREA CHRISTENSEN MJ’s Contract Appliance, Inc. JON COTY Midwest Roofing Supply

BRAD MEEWES and more by Kori COLLIN OWENS Lyman Lumber Co. JERRY PETERSON Emeritus Member

AANYA EATON ABC Supply

DIANE SCHERER Burnet Title

TIM HAGEN Lappin Lighting - JH Larson

BRAD SORENSEN

LUKE HANSON Home Electronic Systems, Inc.

KARLI SPAHR Prospect Mortgage LLC

ANOTHER VISIT BY THE MEMBERSHIP COMMITTEE AMBASSADORS TO A NEW BATC MEMBER . . .

Builders’ Digest

MEMBER SPIKELIGHT 4 NEW MEMBERS LAST QUARTER

Shawn Nelson New Spaces Kori Meewes and more by Kori 3 NEW MEMBERS LAST QUARTER

Katie Harms Scherer Bros. Lumber Co. 2 NEW MEMBERS LAST QUARTER

Meg Jaeger Mega Homes, Inc. Daryl Doehr Marvin Windows and Doors Pam Belz Senior Housing Partners Todd Kuchera Roy Lund Builders, Inc. Jim Kuiken Accent Homes, Inc. 1 NEW MEMBER LAST QUARTER

Brian Robbins Pella Windows & Doors Pete Murlowski TimberCraft Remmodeling Mary Jean Dupuis MJ’s Contract Appliances, Inc. Ruth Petermann Todd Polifka Brush Masters Becky Harasyn Xcel Energy, MN Gas Business Div. Craig Plekkenpol Plekkenpol Builders, Inc. Jeff Schoenwetter JMS Custom Homes, LLC James Fischer Wells Fargo

CHRIS JESSEN Cedar Siding, Inc.

See a complete list of Spike points at batc.org

July–September 2014

BECOME A SPIKE? 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.

BATC.org

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BATC.org

July–September 2014

Builders’ Digest

batc batc endorsed endorsed programs programs

members-only members-onlybenefits benefits The Builders Association of the Twin Cities has The Builders Association of the Twin Cities has brought together brought together an impressive array of members-only anbenefits impressive array of members-only benefits that positively that positively impact your bottom line. impact bottom line. understand the building industry and We seekyour companies that thoroughly provide products atthat rates generallyunderstand not available onbuilding the street. Give these We seek companies thoroughly the industry and provide products chance to see what they do. WeGive thinkthese you will they can at folks ratesagenerally not available on can the street. folksfind a chance to save see what they can you andwill provide you can exceptional do. Wemoney think you find they save youservice. money and provide you better service.

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

Save Save money money with with the the SA SA Fleet Fleet Association Association Fueling Program. 10¢ per Fueling Program. 10¢ per gallon gallon discount discount for for the first 90 days, 5¢ per gallon after the first 90 days, 5¢ per gallon after first first 90 90 days. days.

Receive Receive rebates rebates from from manufacturers manufacturers you you are already using, all without are already using, all without any any changes changes to to your your business business practices. practices.

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GM GM –– NAHB’s NAHB’s Exclusive Exclusive Auto Deale Auto Dealerr Now Now get get an an incentive incentive of of up up to to $1,000 $1,000 on on eligible eligible purchases. purchases. See See dealer dealer for for details. details. http://www.gmfleet.com/flash.html http://www.gmfleet.com/flash.html

Corporate Corporate 44 General General Liability Liability Program Program The key to to success in in GLGL is is to to manage your risk. The key success manage your risk. Corporate 4’s Four Star program is an industryCorporate 4’s Four Star program is an industryleading risk management program, leading to to low leading risk management program, leading low rates. rates. Mike Mike Hoppe Hoppe or or Larry Larry Larson Larson || 952-893-9218 952-893-9218 || www.corporatefour.com www.corporatefour.com llarson@corporatefour.com llarson@corporatefour.com || mhoppe@corporatefour.com mhoppe@corporatefour.com

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> ember benefits > m member benefits > > endorsed endorsed programs programs

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Builders’ DigestBATC.org July–September 2014 January 2014

BATC.org

Proudly Serving the Midwest for More Than 10 Years

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March 12, 2014 March 12, 2014 2

Builder Day at the Capitol, March 12, 2014: 1. Karli Spahr, Bell Mortgage; Senator Karin Housley; and James Fisher, Wells Fargo 2. Opening remarks at the James J. Hill Reference Library 3. View from the balcony 4. Shuttle busses arriving at the State Capitol 5. Shawn Nelson, New Spaces; KC Cermak, Pillar Homes; Ed Engelbrecht, Pella Windows & Doors; Jennifer McClellan, New Spaces; Mark Olson, Nations Reliable Lending 6. Many Minnesota builders on the steps of the Capitol 7. Senator David Hann; James Vagle, BATC; and Joe Dvorak, Black Label Services 8. Curt Christensen, Lee Lyn Construction; Daryl Doehr, Marvin Windows and Doors; Randy Reichert, Lance Smith and James Fisher, Wells Fargo; Chris Contreras, Ryland Homes; Deb Christensen, Lee Lyn Construction; Rich Riemiersma, Imperial Homes 9. The Rochester Area Builders Delegation 10. Members meeting with Senator Eric Pratt 11. James Vagle, BATC, and Representative Mike Beard

Buildersâ&#x20AC;&#x2122; Digest

Julyâ&#x20AC;&#x201C;September 2014

BATC.org

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 doesnâ&#x20AC;&#x2122;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.

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May 20, 2014 3

BATC Business Exchange Showroom Mixer and Fast Forward Education, May 20, 2014: 1. Jim Kuiken, Accent Homes, and BATC staffers Nicole Coon, Mary Schweich and Emily Petermann 2. Emily Helmer, Carroll’s Exterior Remodeling Inc. with Jean Eaton, Granicrete Minnesota 3. Ann Vanderloo and Mary Illetschko, Merchants Bank 4. Brett Remme, In-Focus Systems; Connie Sauer, Granite-Tops, LLC; Rosalie Bell, Trace Design and Chris Contreras, Ryland Homes 5. Deb Hitchcock and Bob Cremers, Builders Club 6. Raymond Carroll, Carroll’s Exterior Remodeling, Inc. and Jon Coty, Midwest Roofing Supply 7. Bob Hoey and colleague, Water Doctors 8. Noshing and networking at next-door locations: Granite Tops and Kolbe Gallery Twin Cities

THANK YOU MAY 2014 SHOWROOM EVENT SPONSORS

GEARING UP FOR 2015? Don’t wait—book an appointment today to discuss 2015 sponsor opportunities!

Builders’ Digest

July–September 2014

THANK YOU 2014 FAST FORWARD SPONSORS

Brad Meewes 651-269-2399, brad@batc.org Kori Meewes 612-801-9874, kori@batc.org

BATC.org

www.abcsupply.com

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batc foundation

Your Support Makes a Difference The BATC Foundation has accomplished a lot in the last twelve months. We have built an accessible home for Zack, remodeled two homes for veterans, provided home repairs for a man struggling with a brain injury and provided a Dream Bedroom for Eli. Our partners—Rebuilding Together Twin Cities, Special Spaces and the Minneapolis Veteran’s Hospital have provided support and our Build Partners— Kraemer & Sons and JK Anderson Builders have been amazing. There’s more to look forward to as we work to line up projects for late 2014 and 2015, including a Specially Adapted home that will be built next summer for Army SPC Marco Solt as part of a new partnership with Homes for our Troops. You can support the Foundation in many ways. Of course, a check is always welcome, provides the most flexibility for our use and provides you with a charitable donation receipt—but there are many other ways to support us. Here are just a few: VOLUNTEER YOUR TIME. Get involved, join a committee. Sign up for a work day at one of our projects. If you have a skill (electrical, plumbing, floor installation, tiling, etc.) let

me know. I’m compiling a list of folks who are willing to help out with projects. CONSIDER BECOMING A BUILD PARTNER. Build Partners serve as the general contractor on our larger projects. You receive a small compensation for your time and GREAT SATISFACTION because you get to work directly with the people in need. Call me if you’d like to know more. SUPPORT THE BATC FOUNDATION GOLF OPEN ON SEPTEMBER 23. Everyone who came last year had a wonderful time. Legends Golf Club is amazing. What more do you need? Sign up at www.batc.org. Foursomes and sponsorships are still available.

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

DONATE A PRIZE FOR THE BIG NIGHT SILENT AUCTION, which benefits the Foundation. We are particularly looking for high-end and unique items. Host a dinner in your showroom or model home. Donate a load of lumber or a couple of appliances. The Foundation Board will be soliciting donations in the next few months.

Zack’s House Project Wraps up with a Whirlwind Work Day! It’s amazing what 30 people can accomplish in six hours. I was privileged to be a part of the event as 30 volunteers from Boston Scientific descended upon Zack Mohs house to complete the landscaping. Organized by BATC Foundation partner Rebuilding Together Twin Cities, the Boston Scientific volunteers pulled weeds, moved dirt, put in edging, laid sod, and planted flowers, shrubs and trees. They transformed Zack’s home from a construction site into a home.There’s more to look forward to as we work to line up projects for late 2014 and 2015, including a Specially Adapted home that will be built next summer for Army SPC Marco Solt as part of a new partnership with Homes for our Troops.

Tee Up for a Cause Sign up online for the Foundation’s Annual Golf Tournament.

September 23 Legends Golf Club Registration is open at www.batc.org

Many thanks to BATC member Heins Nursery, they provided the landscape plan, plants and help during the work day.

Builders’ Digest

July–September 2014

BATC.org

April 21, 2014 2

Annual BATC Foundation Luncheon, April 21, 2014: 1. Katie Harms, Scherer Bros. Lumber Co.; Perri Graham, BATC Foundation; Leslie Jablonski, Bel13ve in Miracles Foundation and Karin Housley, Minnesota Senator 2. Jordan Narvey and Gary Kirt, Bell Mortgage with Katie Harms, Scherer Bros. Lumber Co. 3. Jeff and John Kraemer, John Kraemer and Sons with Perri Graham, BATC Foundation 4. Blair Benes, Karen Filloon, and Patti Clifton, Southview Design 5. Jennifer Oakman and Brooke Ploessl, Ceramic Tileworks 6. Scholarship recipient Amanda Kostalik 7. Stephanie Boe, Pat Hegseth and Dan Christensen, JB O’Meara 8. Scholarship recipient Taylor Lawrence and Dennis Medo, The Builders Group 9. Members socializing and networking before the start of the program BATC.org

July–September 2014

Builders’ Digest

batc foundation

A Special Space for Eli In late May, several volunteers converged on the home of Eli and his family with the purpose of creating a “Special Space” for Eli. Diagnosed with ALL (Acute Lymphatic Leukemia), Eli is a four year boy who loves Ninja Turtles and Disney Pixar cars. Working with the Minneapolis chapter of Special Spaces, an organization that focuses on giving kids with life-threatening illnesses a special space of their very own, the BATC Foundation held a design competition this spring to choose a new bedroom for Eli. The design studio Che Bella was chosen by the attendees of the Builders & Remodelers Show in early April. Eli’s bedroom features both a loft bed and a race car bed and utilizes fun wall decals to provide a race track with removable race cars. A beautiful laminate wood floor allows him to race his cars – no more pesky carpet to slow him down and a custom closet stores all of his gear.

Check out

batcfoundation.org for more photos of Eli’s adorable room.

Board Profiles Here are a few more of the great folks who work to make the BATC Foundation such a great organization!

TRACE MILLS

Trace Mills

Stephen Roche

BATC Foundation Vice President, Mattamy Homes – Project Committee and member of the Board of Directors. Trace is the quiet guy in the corner who doesn’t miss a thing. When he speaks up you know he’s thought it through and has something important to say. Trace’s many years of experience in the building industry really show in his work on the Project Committee and his ability to get to the heart of what needs to get done has helped guide many decisions. Trace will begin his two-year term as President of the BATC Foundation Board of Directors in January.

Member at Large, Showcase Renovations – Chair, Project Committee and member of the Board of Directors. When the former chair of the Project committee needed to take a break earlier this year, Steve graciously agreed to step up and fill out his term. He has overseen several Foundation projects this year, providing oversight and working with Build Partners. Steve’s long experience in remodeling has given him a calm attitude toward projects—it’s tough to ruffle his feathers.

Kathy Greiner Member at Large, Rebuilding Together Twin Cities – Volunteer committee and member of the Board of Directors. As the Executive Director of our partner organization Rebuilding Together Twin Cities, Kathy brings great insight in the areas of non-profit management, board development and a wealth of knowledge and connections in the building industry. She is a great colleague, always willing to provide suggestions or collaborate on projects.

Builders’ Digest

July–September 2014

KATHY GREINER

STEPHEN ROCHE

Volunteers are the life-blood of the BATC Foundation. There’s a place for you, too!

BATC.org

When Service Matters

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Buildersâ&#x20AC;&#x2122; Digest

mn green path

A PERFECT MATCH: MN Green Path and New MN Energy Code When the MN Energy Code goes into effect early next year*…we’ve got you covered.

ENERGY LABEL One new code requirement for your homes is an energy label, and the Green Path Home Performance Report (HPR) is fully designed to comply. All you need to do is get tested through a certified RESNET rater and let them know you want a Green Path HPR. Both Xcel and CenterPoint Energy offer testing subsidies through the rater too. What does that mean for you? You meet the code labeling requirement, get some great feedback from the energy experts testing your home, and your HPR doubles as an attractive marketing tool—often at no cost to you!

THANK YOU Home Performance Report MN GREEN PATH | WWW.MNGREENPATH.ORG

HERS Index

ENERGY TESTED

Home Address: XXXX Home Street Minnetrista MN 55331 Square Feet: 4630 Bedrooms: 5 Baths: 5 Builder: Building Company www.buildername.com

TO OUR

2014 SPONSORS

ACH50

1.0

130+ AVG OLDER HOME

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TRAILBLAZER

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This home is 48% more energy efficient than the HERS reference home built to code .

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These results reflect Air Changes per Hour of measured air flow . 2

1 The RESNET Home Energy Rating System (HERS) score rates homes against an index of the code reference home of 100. The lower the score, the more energy efficient the home. Older homes often score 130 or higher. In Minnesota today, new homes built to code generally test about 80.

Serial #014250

2 The Air Changes Per Hour at 50 Pascals (ACH50) is the index used in blower door testing to indicate how airtight a home is. As with HERS, the lower the score the more energy efficient the home.

Minnesota’s Green Path is a program of the Builders Association of the Twin Cities.

VISIONARY

COMPREHENSIVE CLASSES AND THE STRAIGHT SCOOP You and your subs won’t have to figure everything out on your own. BATC and Green Path will be holding classes designed to make your transition to the new code smooth and relatively painless. And, BAM will be creating a handy handbook covering all the changes.

PIONEER

Look for information and updates in BATC’s weekly VOICE email. A full course schedule will be mailed in August.

* DLI plans to file several chapters of the state building code, including the Residential Building Code, with the Secretary of State on July 28, 2014. This will make those chapters effective 180 days later on January 24, 2015. DLI aims to make the remaining codes also effective on this same date.

Builders’ Digest

July–September 2014

BATC.org

July–September 2014

Builders’ Digest

Thank You 2014

BATC ELITE PARTNERS FOR SUPPORTING OUR ASSOCIATION

Shout Out to 2013 BATC Partners

DIAMOND LEVEL PARTNERS

PLATINUM LEVEL PARTNERS Millwork Division

GOLD LEVEL PARTNERS

SILVER LEVEL PARTNERS “The Garage Door Place”

BRONZE LEVEL PARTNERS Friendly Chevrolet Jeff Belzer Chevrolet Luther Brookdale Chevrolet Merit Chevrolet Suburban Chevrolet

Helping our members build their businesses through marketing, advocacy and industry connections NEWS Builders’ EVERYDAY ON THE 92 Digest

BLOG: WWW.BATC.ORG/BLOG July–September 2014

APRIL/JUNE 2013

BUILDERS’ DIGEST 92 BATC.org

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.

AWARDS/HONORS

BUILDER Magazine’s Builder of the Year

Re-Elected During its annual shareholders meeting in April, Westwood Professional Services re-elected its existing board members to serve an additional one-year term. The board is made up of leaders from three Westwood offices in Minnesota and Texas. Board members include: • • • •

Paul Greenhagen, President, PS Aaron Tippie, Vice President Jason McCarty, Vice President, PE Jay Wittstock, St. Cloud Office Leader, PS • Steve Windingland, Wind Energy Director, PE westwoodps.com

Top 100 Workplaces Uponor North America has been named one of the Top 100 Workplaces in Minnesota by the Minneapolis Star Tribune based on an employee-based survey. Uponor was ranked 20th on the mid-size company list. uponor-usa.com

Vice President of Sales

Toll Brothers has been honored as Builder of the Year by BUILDER magazine, the leading media brand in residential construction. This prestigious award was given in recognition of Toll Brothers’ excellence in successful business strategy, its achievements, and its corporate leadership. tollbrothers.com

Bob Bennett Joins Lyman

The National Association of the Remodeling Industry (NARI) named James Barton Design-Build a 2014 Regional CotY (Contractor of the Year) award winner in the Residential Bathroom category. jbdb.biz

CONDOLENCES

Vujovich Has a New Member

NARI Names its CotY’s

A BATC LOSS

Peaceful Passing The architecture and home industry community gathered recently to celebrate the winners of the Mpls St Paul Magazine 2014 RAVE Awards, which will be featured in the July issue of MSP Magazine. Congratulations to Streeter for taking home three honors, including two 1st Place awards. streeterhomes.com

In March, Brent Noonan accepted the position of Vice President of Sales for Uponor North America. Previously he served as Uponor’s South Regional Sales Director. uponor-usa.com

Bob Bennett is the newest member of Lyman Lumber, beginning as the Sales Manager for LRS in March. You may not know this, but Bob installed roofing and siding through high school and he owned his own remodeling company focused on roofing, siding and decking for 20+ years before joining Automatic, and then Fireside Hearth & Home. With such a rich history, Lyman Lumber is happy to have him on board! lymanlumber.com

BATC sends its sincerest condolences to Deb Earl, Membership Director, on the passing of her mother Helen Schlueter, age 83, earlier this year. Helen will always be remembered as a loving wife, mother, nana and friend.

2014 RAVE AWARDS

NEW PEOPLE AND PROMOTIONS

Paula Siewert passed away peacefully on May 24, 2014. Beginning a career as a legal secretary, Paula later earned a BA in business Communication and Marketing from Metro State while she worked at the Northwestern Lumber Association (NLA) in Minneapolis. In her 30+ years at the company she advanced in her career to eventually serve as NLA’s President.

Say hello to Lori Balestri the next time you’re in the Vujovich offices. As the company’s new Project Director, Lori will be working hand-in-hand with clients, guiding them through the collaborative design build process of recreating their home. vujovich.com

Movin’ On Up Westwood Professional Services is pleased to announce the promotion of: • Nate Carlson, PS, to St. Cloud Office Leader. • Jay Wittstock, PS, to National Survey Service Leader

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

continues on page 96

Builders’ Digest

July–September 2014

BATC.org

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

member news — continued

5.12.14 /// KARE 11 Backyard Groundbreaking 1

14 Welcomed Aboard Westwood Professional Services recently celebrated and formally welcomed fourteen associates to the position, recognizing their leadership and dedication to Westwood’s success. westwoodps.com

Landform Welcomes New Staff Mary Matze has joined the Landform firm as a Planner in the Planning and Infrastructure Studio. She brings with her 10 years of experience, the last three in municipal planning in urban markets. landform.net

Who’s Who at Brush Masters Brush Masters not only celebrated new promotions in June, they also welcomed many new faces to their growing team, including: • W endy Nortunen, Project Coordinator and Design Consultant • Jim Nelson, Remodel Paint Manager • Jason Rettke, New Construction Paint Supervisor • Bayron Calderon, New Construction Paint Supervisor • Gary Planting, Drywall Supervisor • Phil McCoy, Drywall Supervisor brushmasters.com

BIG NEWS Schwieters Companies’ $1 Million Dollar “Unusual” Gift Habitat for Humanity was recently blessed with their largest gift ever: five acres of development-ready lots in a St. Paul suburb (valued at $1 million) in what they called a “very unusual, not to mention fantastic” donation from Schwieters Companies’ Joel and John Schwieters. The land is comprised of 33 lots in the Generation Acres subdivision of Hugo, Minnesota. schwieterscompanies.com

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

Builders’ Digest

July–September 2014

KARE 11 Backyard Groundbreaking, May 12, 2014: 1. Belinda Jensen (center) and partners broke ground on the KARE 11 Backyard design during the five o’clock newscast. 2. Denny and Sharon Sandin, Mill Pond 3. Blake McCoy, KARE 11; Tim Johnson, Southview Design; Belinda Jensen, KARE 11; Megan Carstensen, Kerry & Co.; Kerry Mulcrone, Kerry & Co.; Julie Nelson, KARE 11; Bobby Jensen, KARE 11 4. Meg Jaeger, Mega Homes, Inc. and Brett Remme, In-Focus Systems 5. Patti Clifton, Tim Johnson and Karen Filloon, Southview Design 6. BATC President Shawn Nelson, New Spaces and BATC EO David Siegel

BATC.org

When quality building products, right price, expert people and great service come together. That’s Synergy. PHOTO: PHILLIP C. MUELLER

ENDURING Builder: Kyle Hunt & Partners, incorPorated | Architect: Sharratt Design & Company

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VISION FROM WITH IN

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