Builders' Digest | Jan-Mar 2014

THIS ISSUE SPONSORED BY:

JANUARY - MARCH 2014

AWARDS OF EXCELLENCE GALA RECAP BATC 2013 Associate of the Year: Lyman Lumber Co. BATC 2013 Builder of the Year: John Kraemer & Sons

from holey to “Holy Moly!”

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Executive Director David Siegel Editor & Director of Marketing/Communications Wendy Danks Creative Services Director/Graphic Designer Dawnita Parmely Graphic Designer Laurie Spartz Creative Services Coordinator Casey Hafner Graphics Assistant Hannah Morford

Administrative & Membership Assistant Heather Litchy

BATC Foundation Executive Director Perri Graham

Membership Director Deb Earl Public Policy Assistant Mary Schweich Receptionist Emily Petermann

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 Marv McDaris Pulte Homes of Minnesota, LLC

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. National Directors Craig Plekkenpol Plekkenpol Builders, Inc. At-Large Member Brett Remme In-Focus Systems At-Large Member John Rask Hans Hagen Homes, 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.

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

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Advocacy

contents

Marketing & Events Manager Nicole Coon

executive board

Associate Vice President Daryl Doehr Marvin Windows & Doors

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Awards of Excellence Gala

Education Coordinator Beth Graham

Advertising Sales Kori Meewes Brad Meewes

Director of Administrative Services Maxine Miller

Profile: Filament Lighting & Home

Director of Public Policy & MN Green Path Executive Director James Vagle

Accounting Manager Ron DeCoux

Communications Coordinator Katy Ervin

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on the cover John Zirbes, Lyman Lumber Co., and Gary, John and Jeff Kraemer, John Kraemer & Sons, Inc. on the Xcel Energy red carpet with their Associate and Builder of the Year awards.

4 Executive Director Letter 6 A Word From Our President 7 2014 Board of Directors 10 Events Calendar 12 Builder Day at the Capitol 14 PROFILE: Shawn Nelson 16 2014 Mortgage and Lending Outlook 20 2014 Continuing Education Courses 22 BATC Annual Calendar Advertising Directory Bank of America. . . . . . . . . . . . . . . . . . . 27 Brock White Company. . . . . . . . . . . . . . 23 Brush Masters. . . . . . . . . . . . . . . . . . . . . 34 CenterPoint Energy. . . . . . . . . . . . . . 15, 49 Central Marble Products, Inc.. . . . . . . . . 55 Corporate 4 Insurance Agency Inc.. . . . .64 Erosion Works. . . . . . . . . . . . . . . . . . . . . 49 Filament Lighting & Home. . . . . . . . . . . 72 Galaxy Sales, Inc. . . . . . . . . . . . . . . . . . . 67 GM Elite Dealers. . . . . . . inside front cover Hedberg Landscape & Masonry Supplies.9 IDC-Automatic. . . . . . . . . . . . . . . . . . . . . 11 In-Focus Systems. . . . . . inside back cover Installed Building Solutions, LLC . . . . . . 51 J&W Asphalt, Inc.. . . . . . . . . . . . . . . . . . 47 JL Schwieters Bldg. Supply/Const., Inc.. 69 Lake Elmo Bank . . . . . . . . . . . . . . . . . . . 59 Lampert Lumber. . . . . . . . . . . . . . . . . . . 19 Light’N Up!. . . . . . . . . . . . . . . . . . . . . . . 66

24 PROFILE: Warners’ Stellian 28 COMPANY PROFILE: Diamond Kote Prefinishing

30 Parade of Homes 36 Fall Award Winners 44 BATC Foundation 48 Welcome New Members 50 Member Spike 52 Advocacy 58 MN Green Path 70 Member News LP Building Products. . . . . . . . . . . . . . . . 55 Lyman Lumber Co./ABC Millwork . . . . . 35 Marvin Windows and Doors. . . . . . . . . . . 5 Molin Concrete Products Company. . . . 66 NAHB . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66 Pella Windows & Doors - Twin Cities, Inc..13 ProBuild. . . . . . . . . . . . . . . . . . . . . . . . . . 57 RMC Solutions . . . . . . . . . . . . . . . . . . . . 55 Scherer Bros. Lumber Co. . . . . . . . . . . . 41 Schwieters Companies, Inc.. . . . . . . . . . 45 Shaw/Stewart Lumber Co.. . . . . . . . . . . 65 Stein Insurance Agency . . . . . . . . . . . . . 65 SuperAmerica. . . . . . . . . . . . . . . . . . . . . 63 Synergy Products, LLC. . . . 59, back cover The Builders Group. . . . . . . . . . . . . . . . . 71 Trimpac, Inc.. . . . . . . . . . . . . . . . . . . . . . 55 Warners’ Stellian Co., Inc.. . . . . . . . . . . . . 1 Wells Fargo Home Mortgage. . . . . . . . . . 3 Xcel Energy. . . . . . . . . . . . . . . . . . . . . . . 41

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Regional Builder Sales Manager 651-430-9930 james.fisher@wellsfargo.com

This information is for real estate, builder and financial planning professionals only and is not intended for consumer distribution. 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. © Wells Fargo Bank, N.A. All rights reserved. NMSLR ID 399801.

AS1004267 Expires 03/2014

letter from the eo

like drinking from a hose It’s a busy time for advocacy Over the past few months,

the BATC team has been in meetings with the Urban Land Institute, the Metropolitan Council, the Minnesota Department of Labor and Industry and the Minnesota Pollution Control Agency. In all instances, the discussion has centered on someone else’s plan for Twin Cities’ housing. BATC has been at the forefront (and in some cases has been the only voice) advocating for a market-based approach that fosters the continuing dream of home ownership and the need for less regulation to keep housing affordable.

When we met with Urban Land Institute to provide our forecast for 2014, representatives of the Institute had just returned from a national conference at which one major topic of discussion was a projection that today’s Millennials will want housing in the urban core in multi-family units. In addition, ULI has long expressed a desire to see the costs of transportation included when one calculates the cost of housing, thus suggesting that while suburban housing might seem affordable, it’s less so when transportation costs are included. I think it’s fair to say that ULI seeks a focus on urban living and transit-oriented development.

The Metropolitan Council echoes a similar theme. The Council is developing its Thrive 2040 outlook for the Twin Cit-

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ies, and while it does not have formal authority over housing, it nonetheless could affect development via its population forecasts and related infrastructure commitments. The Council has been projecting a return to the urban core for empty-nesters. The Council also sees a strong desire by Millenials to locate in the core cities.

Our comprehensive review of research, combined with our years of experience and knowledge of development, shows a vastly different picture. Thus we are strongly challenging the Council’s projections.

The Minnesota Department of Labor and Industry has now put forward a substantial building code revision. The most difficult provision requires sprinklers in new single-family homes over 4500 square feet including unfinished basements and porches. But much more regulation occurs in the code.

And, DLI will shortly be issuing its energy code, which adds great additional burden on home builders. BATC’s Board and committees consistently give thought to how to protect our housing marketplace, and BATC’s government affairs team is hard at work on all these issues representing you!

And finally, the Minnesota Pollution Control Agency has contacted BATC indicating that that there are too many builders who, despite years of education and information, are not fol-

@davidsiegel1 david@batc.org

lowing stormwater mitigation procedures. MPCA has warned that fines are forthcoming and BATC has been notifying members of the concern. Stormwater regulation, enacted in 2003, is certainly one major reason regulation now absorbs up 25 to 30 percent of the final price point of a home.

More regulation and control is in the works by innumerable other agencies and organizations. What are we to make of all of this? Are we going to buy into others plans for housing, or are we going to advocate for our own?

It seems clear that the job of fighting for free enterprise falls to the regulated industries themselves – in other words, BATC. I will tell you that it can be a lonely fight. You can be proud that BATC’s public policy team is deep in these conversations.

And, it might sound corny, but you can make a difference. Take the time to get to know your legislators. Visit with them about the topic of regulation. We need to be less encumbered so we can produce great houses of all price ranges that meet market demand. Stay tuned to the communications BATC delivers, and come to Builder Day at the Capitol March 12. When the river rises, it takes a lot of sandbags to protect the shore and it takes a team of volunteers to build that wall of protection.

We need you now.

David Siegel BATC Executive Director

BATC has been at the forefront (and in some cases has been the only voice) advocating for a marketbased approach that fosters the continuing dream of home ownership and the need for less regulation to keep housing affordable.

Visit your local Marvin dealer today for more information and to discuss solutions for your next project.

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Whether it’s remodeling or replacement, there’s no better partner for exceeding your clients’ needs. Marvin® has the broadest range of products combined with the most energy efficient options available, all backed by four generations of innovation, craftsmanship and support from local retailers. And with Marvin’s selection of interactive tools, including our Product Designer, Product Finder, and new Marvin App for iPad®, you and your clients will have what you need to plan and organize projects from start to finish. See all our interactive tools at pros.myMarvin.com/Tools

Lampert Lumber Apple Valley – Lake Elmo North Branch – Rockford Northfield – 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 763-784-3062 SLPLumber.com

©201 3 Marvin Windows and Doors. All rights reserved. ®Registered trademark of Marvin Windows and Doors. iPad is a trademark of Apple Inc., registered in the U.S. and other countries.

a word from our president

let’s succeed together

shawn@newspaces.com

New Strategic Plan Guides BATC

Shawn Nelson BATC President I’d like to thank you for electing me BATC President for 2014. I promise to work hard and do my best to serve the industry, the association and you. I’m really excited about the year ahead, and consider myself lucky to take the reins at BATC at this point in time.

After a long and difficult recession, our industry has clearly put the worst behind us and is poised for real growth. BATC has weathered the storm fairly well, thanks to the leaders who went before me. We’re financially stable and well positioned to support each and every one of our member companies over the coming years.

I want to thank Pamela Belz, our 2013 President, and all the other dedicated members who helped lead us through and out of the worst housing recession in decades. They managed BATC’s finances carefully, and set the stage for success. I also want to personally thank Pamela for the time she has spent helping prepare me to step into her shoes.

And those are some pretty big (rhetorically speaking) shoes to fill.

Pamela, along with BATC leaders, members and staff, worked hard to complete a comprehensive Strategic Plan in 2013. This is a

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living document that will guide us as we work to improve the industry and support our members businesses well into the future.

Pamela also made sure we have a brand new Procedures Manual.

This impressive tome consolidates all of BATC’s procedures, rules and requirements into one place.

My Priorities As a remodeler, one of my goals this year is to fully integrate our remodeling sector into BATC membership. I’ll be working to connect with my peers and to convince them to become more engaged. But that doesn’t mean I’ll ignore our builders or our associates. I’m thoroughly convinced that as an industry, working together for common goals is the key to success as individual companies and for the industry as a whole.

I’ll be working hard to ensure that we utilize our Advocacy dues to stop the sprinkler mandate, to convince the Metropolitan Council that their growth projections are out of whack, and to educate government officials about the real-world concerns that builders and remodelers face in providing affordable, durable and quality construction for our clients. I’m

also looking forward to the real impact that BATC can have on our upcoming elections as our Housing First Independent Expenditure Fund (Super PAC) supports those candidates that are friendly to housing.

I am excited to oversee the launch of our brand extension into the high-end market with the first Artisan Home Tour in June.

As the market improves, I expect to see our signature events, the Parade of Homes and Remodelers Showcase continue to grow and thrive.

As part of our Strategic Planning, we are developing a great calendar of events for BATC this year. We’ll be hosting fewer but more effective programs, like our upcoming Builder Day at the Capitol and legislative reception in early March. We’ve got some key educational offerings both at BATC University and with our new Fast Forward programs. Our Builders and Remodelers Show (BRS) looks to be bigger and better than ever. And our Fall Building Industry Gala is in the planning stages to become THE industry event, where we recognize builders, remodelers, and associates for their contributions and successes.

I am ready to live the BATC mission to help our members build their businesses through marketing, advocacy and industry connections. I truly believe we are the leading voice for builders and remodelers. Thanks for putting your trust in me.

“I’m thoroughly convinced that as an industry, working together for common goals is the key to success as individual companies and for the industry as a whole.”

2014 board of directors EXECUTIVE BOARD PRESIDENT SHAWN NELSON

New Spaces 2105 – 143rd Street W. Burnsville, MN 55306 952-898-5300 shawn@newspaces.com

BUILDER VICE PRESIDENT CHRIS CONTRERAS Ryland Homes 7599 Anagram Drive Eden Prairie, MN 55344 952-229-6000 ccontrer@ryland.com

TREASURER MEG JAEGER

Mega Homes, Inc. 13601 Balsam Lane Dayton, MN 55327 763-427-8391 megjaeger@mega-homes.com

IMMEDIATE PAST PRESIDENT PAMELA BELZ Senior Housing Partners 2845 North Hamline Avenue Roseville, MN 55113 651-631-6316 pbelz@seniorpartners.com

ASSOCIATE VICE PRESIDENT DARYL DOEHR

Marvin Windows & Doors 2020 Silver Bell Road, #15 Eagan, MN 55122 651-452-3039 daryldd@marvin.com

PAST ASSOCIATE VICE PRESIDENT KERRY MULCRONE

Kerry & Co. 370 Andrews Bay Hudson, WI 54016 612-817-4089 kerry@kerryandco.com

PAST PRESIDENTS’ ADVISORY COUNCIL REPRESENTATIVE CURT SWANSON

Swanson Homes 1360 Hamel Road Medina, MN 55340 763-478-0320 curt@swansonhomes.com

SECRETARY TODD POLIFKA

Brush Masters 11775 – 95th Avenue N. Maple Grove, MN 55369 763-478-3232 todd@brushmasters.com

COMMITTEE/ COUNCIL REPRESENTATIVES PARADE OF HOMESSM COMMITTEE JIM KUIKEN

MEMBERSHIP COMMITTEE BRIAN ROBBINS

BATC REMODELERSSM COUNCIL JOLYNN JOHNSON

PUBLIC POLICY COMMITTEE JASON McCARTY

AT LARGE JOHN RASK

SMALL VOLUME BUILDERS COMMITTEE GARY KRAEMER

LARGE VOLUME BUILDERS COMMITTEE MARV McDARIS

AT LARGE BRETT REMME

Accent Homes, Inc. 13739 Lincoln Street NE, #100A Ham Lake, MN 55304 763-784-6013 jimkuiken@msn.com

Crystal Kitchen Center, Inc. 3620 Winnetka Avenue N. Crystal, MN 55427 763-544-5950 jolynn@crystalkitchen.com

John Kraemer & Sons, Inc. 4906 Lincoln Drive Edina, MN 55436 952-935-9100 gary@jkandsons.com

Pella Windows & Doors 15300 – 25th Avenue N., #100 Plymouth, MN 55447 763-745-1407 robbinsBM@pella.com

Westwood Professional Services, Inc. 7699 Anagram Drive Eden Prairie, MN 55344 952-906-7446 jason.mccarty@westwoodps.com

Pulte Homes of MN, LLC 7500 Office Ridge Circle, #325 Eden Prairie, MN 55344 952-912-5492 Marv.McDaris@PulteGroup.com

NAHB NATIONAL DIRECTORS COMMITTEE CRAIG PLEKKENPOL Plekkenpol Builders, Inc. 401 E. 78th Street Bloomington, MN 55420 952-292-9400 info@plekkenpol.com

Hans Hagen Homes, Inc. 941 Hillwind Road NE, #300 Fridley, MN 55432 763-586-7200 info@hanshagenhomes.com

In-Focus Systems 3305 Republic Avenue St. Louis Park, MN 55426 952-929-0000 b.remme@infocussystems.com

BATC.org

January 2014

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After 2.5 BillionYears in the Making, Expect to be “Wowed.”

PLYMOUTH | FARMINGTON | STILLWATER

hedbergsupply.com

events

JAN

FEB

MAR

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1-30

BATC BUSINESS EXCHANGE (BE): ANNUAL MEETING & BOARD INDUCTION Help us thank outgoing board members for their service and usher in the new board. Plus, nationally acclaimed economist and speaker, Elliot Eisenberg presents the 2014 housing forecast.

Hilton Minneapolis/Bloomington 5PM

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INTERNATIOAL BUILDERS SHOW (IBS) BATC HOSPITALITY SUITE Join other BATC members and statewide peers for a cocktail reception.

Paris Las Vegas Hotel and Casino 6 -8PM

11 BATC UNIVERSITY: CONTINUING EDUCATION Get your CE credits here!

6 classes, 7 credits

BATC UNIVERSITY: CONTINUING EDUCATION Get your CE credits here!

5 classes, 7 credits BATC Seminar Room Register at www.batc.org

BATC Seminar Room Register at www.batc.org

13 MEMBER ORIENTATION Whether you are a NEW member or have been around for years, stop by and see what BATC can offer you and your company!

28 BATC UNIVERSITY: CONTINUING EDUCATION Get your CE credits here!

5 classes, 7 credits BATC Seminar Room Register at www.batc.org

Free. Register online at www.BATC.org.

20 BATC UNIVERSITY: CONTINUING EDUCATION Get your CE credits here!

5 classes, 7 credits

30

BATC Seminar Room Register at www.batc.org

BATC UNIVERSITY: CONTINUING EDUCATION Get your CE credits here!

4 classes, 7 credits BATC Seminar Room Register at www.batc.org

25 BATC UNIVERSITY: CONTINUING EDUCATION Get your CE credits here!

1 class, 7 credits BATC Seminar Room Register at www.batc.org

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PARADE OF HOMES BATC’s signature event features more than 370 new homes throughout the Twin Cities .

4 & 11 BATC UNIVERSITY: CONTINUING EDUCATION Get your CE credits here!

5 classes, 7 credits BATC Seminar Room Register at www.batc.org

2014 HOUSING FORECAST Don’t miss nationally acclaimed economist and speaker, Elliot Eisenberg, as he presents the 2014 housing forecast at the Jan. 21 BATC Business Exchange (BE) Annual Meeting & Board Induction

12 BUILDER DAY AT THE CAPITOL PLUS NEW LEGISLATIVE RECEPTION Educate and inform those who have a huge impact on the home building industry. Plus evening reception for members and legislators.

James J. Hill Reference Library and Minnesota State Capitol Register at www.batc.org See page 52 for more information

18-20 BATC UNIVERSITY: CERTIFIED AGING IN PLACE SPECIALISTS (CAPS) DESIGNATION COURSES Earn this exceptional NAHB designation and 8 real estate CEs to boot.

BOOTH SPACE & SPONSORSHIPS STILL AVAILABLE Reserve your booth space today. Last year sold out. Contact Show Manager, Nicole Coon at nicole@batc.org or 651-697-7571.

AWARD-WINNING

BATC Seminar Room Register at www.batc.org

28-30 REMODELERS SHOWCASE The remodeler’s premier event that features more than xx remodeled homes throughout the Twin Cities.

Find it all on BATC.org

Garage Doors

We have the largest fleet of installers, technicians and products in the Twin Cities metro area waiting to serve you!

a

2014

batc signature event

builder day at the capitol plus NEW legislative reception Your state legislator really does listen and learn when builders and remodelers come calling. We need you to be here!

BUILDER

DAY AT THE CAPITOL AND LEGISLATIVE RECEPTION

Sponsored by

Help us educate and inform the people who have a huge impact on the home building and remodeling industry by joining us March 12. You’ll be doing the industry a great service and helping your own company, while having fun connecting with your industry colleagues as you walk the hallowed halls of the State Capitol (it really is an experience). We’ll provide all the information you need to really make an impact when you speak with your representatives.

Join hundreds of your colleagues and be sure to stay for our evening reception for members and legislators. It will be a chance to visit with your legislators in a less formal setting.

Wednesday, March 12, 2014 James J. Hill Reference Library 80 - 4th Street W., St Paul, MN 55102 11:30am

Check-In & Lunch

12:00pm Program (talking points and tips for your meetings) 12:30pm Meetings with legislators at the Capitol (throughout the afternoon as scheduled) Round-trip transportation provided 4:30-7:00pm BUILDERS

ASSOCIATION OF MINNESOTA

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Legislative Reception

Your participation in legislator meetings is important, but if you can’t make the afternoon meetings, please join us for the evening reception.

Register online at www.BATCorg

Beauty is in the details – down to a home’s windows and doors. That’s why Pella offers meticulously crafted, richly profiled Architect Series® windows and patio doors. They offer beautiful Mahogany, Alder, Douglas Fir or Pine woods that blend tastefully with other interior finishes. Authentic hardware styles in an impressive array of finishes. And virtually endless design choices to help your customers preserve the historic accuracy and period style they love. That’s The Power Of Yellow.

profile

please welcome BATC president 2014: SHAWN NELSON, NEW SPACES

Shawn has a wide variety of interests, but at heart he’s still pretty much a geek (any sort of technology lights up his eyes, and he’s even considered going back to school for an economics PhD). His favorite TV show is The Big Bang Theory.

And he has two pre-teen daughters who supported his choice for BATC Buck theme. It was a perfect choice.*

We’re excited to welcome Shawn Nelson as our incoming BATC President. Shawn has been active at BATC for a dozen or more years, and is our first BATC second generation President (his dad Doug served as BATC President in 2005). Shawn is smart, quick on his feet, and great at sharing (he’s

* If you guessed Dr. Who, you are either pretty old or pretty hip!

I have worked with Shawn on the BATC Board and Exec Board of Directors for a number of years and have always found him to be hard working, insightful on issues, and completely dedicated to making BATC a better resource to builders and remodelers.

Shawn brings a great perspective on our industry and an effective problem solving approach to his leadership at BATC. He works tirelessly to make BATC better for builders, remodelers, and associate members.

John Zirbes, Lyman Lumber

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been a BATC-U instructor and will once again teach the CAPS business course this spring). Take a moment to welcome Shawn and thank him for serving BATC and the industry.

Here’s what some of the BATC Board members have to say about Shawn:

Shawn’s experience in running a successful remodeling business makes him the perfect match to lead the Association.

I am looking forward to serving with him this year.

Chris Contreras, Ryland Homes

I am excited for Shawn to be our president at BATC in 2014. I have worked with him through the years not only through BATC but also as a customer who uses Marvin Windows in his projects. He is engaged, insightful and someone that is a gifted problem solver. I look forward to working closely with him on the 2014 BATC Board!

Daryl Doehr, Marvin Windows and Doors

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the mortgage and lending outlook for 2014

by Joan Knight

Cautious optimism among builders seems appropriate for all those who’ve weathered the Great Recession and can see the light at the end of the tunnel.

There are opportunities—and a few headwinds ahead. That was the general consensus of several mortgage experts on the outlook for builders and their new home and remodeling clients. The palpably good news is that new home construction is up over a year ago, according to UST Index figures, with new single family home permits up 30 percent year-over-year in September in the Twin Cities market. The dollar volume of single-family home construction for the same period was running 35 percent higher than 2012.

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More lots are being developed and housing inventory is low, so many more people who’d like to buy a home will build new. Cautious optimism among builders seems appropriate for all those who’ve weathered the Great Recession and can see the light at the end of the tunnel.

Foreclosures and short sales are no longer clogging the market, although they are still a factor. An updated table of distressed sales shows Minneapolis’ total “distressed sales” at 21.5 percent in October 2013 compared to October 2012 at 35.3 percent, down substantially.

New Mortgage Rules Dynamics changing the mortgage landscape include the implementation of the DoddFrank Wall Street Reform and Consumer Protection Act. While the mortgage lenders we talked with said they have been ready for compliance to new regulations in 2014, they urge builders to educate themselves, too.

Kevin Greene, Minnesota Home Loans Manager, Bank of America Home Loans, said this: “The “Qualified Mortgage” (QM) standards from the Consumer Financial Protection Bureau will become effective January 10, 2014. As the date nears, it is critical to understand the requirements around QM, specifically regarding a borrower’s “Ability to Repay.” For example, your clients’ loan eligibility could change under the new provisions of the Dodd-Frank Act, so it will be important to work with your mortgage loan officer to ensure that prequalifications are still valid.”

Greene also suggested checking out www.consumerfinance.gov for more information.

Builders will need to look at the mortgages now in play that may not be in compliance. They also need to work with a

can guide their clients to lock in interest rates to cover build time. There is little volatility to speak of now, but rates could rise. Builders need to help their clients see why this is a good time to buy, with low interest rates and prices going up. We do see another good year in the forecast for homebuilders.”

Consumers will likely find out in 2014 that Fannie Mae and Freddie Mac are planning to lend less money, though 2014 conforming loan limits look like they’ll be slightly lower that the prior year’s limits. An option for homebuyers includes FHA loans, which can allow for low down payments and may exceed loan limits for conforming loans.

Qualified consumers can also benefit from VA or USDA rural loans. Mortgage insurance is sometimes being builder or lender-paid, often resulting in lower payments.

Align yourself with a lender committed to the mortgage industry Commonly voiced advice for builders is to align yourself with a lender committed to the mortgage industry and its products.

According to Sozio, another trend is non-

While the mortgage lenders we talked with said they have been ready for compliance to new regulations in 2014, they urge builders to educate themselves, too.

lender that is fully prepared for the new ruling, which could entail expanded compliance staffing and legal advice.

Ron Sozio, Vice President of North East Divisional Builder Sales, Wells Fargo, said the QM impacts the documentation lenders need to gather as well as the types of loans lenders will be willing to make. “Along with the majority of lenders, we have already anticipated the implications of the regulations and much has been implemented ahead of the regulations,” he said. “These regulations are actually good for the entire industry and create healthy dialog. With this change, though, builders have to be more mindful of the entire process and let homebuyers know what they need for the application process.”

Greene and Sozio agree that interest rates will no doubt rise. “Mortgage rates are still at a historic low,” said Sozio. “Builders

conforming loans, which could have a lower interest rate than conventional loans. This is especially true with jumbo loan rates, which are very low compared to historic rates.

Keenan Raverty, Vice President at Bell Mortgage and President and Chairman of the Board for the Minnesota Mortgage Association, described the recent recession as a depression for the building and mortgage industry, with all players taking losses. “Now there is a lack of inventory to support a normal market, so buyers are being driven out of the used-home market. The picture is good for consumers, with low interest rates and lower cost of lots and development (although not the cost of construction). It is a healthier picture for the builder, with some lenders agreeing to do higher loan to value. Builders need to know what tools and products are available so they can help customize the pack-

CONTRIBUTORS David Welsch Area Sales Manager, Waterstone Mortgage Corporation 651-295-6394 dwelsch@ waterstonemortgage.com Kevin Greene Minnesota Home Loans Manager, Bank of America Home Loans 952-997-5655 kevin.greene@ bankofamerica.com Ron Sozio V.P. Northeast Divisional Builder Sales, Wells Fargo 908-575-4431 ron.sozio@wellsfargo.com Keenan Raverty Vice President, Bell Mortgage Past President and Chairman of the Board, Minnesota Mortgage Association 651-209-2650 keenan@bellbanks.com

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age for their clients,” said Raverty.

“Builders need to find a strong construction lender,” said Sozio. “We see a shift to consumer-driven financing, rather than the builder taking on major financing in custom building. For example, if a builder has a half-million dollar line of credit, and three clients want to build, the builder can only handle one.

An option for the builder is to shift risk to a stronger consumer responsibility,

with continual drawdowns during construction. By receiving draws from the lender, now the builder also could promote better relationships with contractors and develop a better business discipline.”

Of course, this is reliant on the consumer being able to qualify, and lenders look at the loan to value ratio, so the gross amount is not as important as the loan to value. Bell Mortgage offers con-

struction financing with as little as 3.5 percent down. Raverty emphasizes that consumers should look at the flexibility of the lender. For example, home values have dropped from their highs, and this can shrink the proceeds that consumers expected from the sale of their current homes to put down on a new home build. They may be able to pursue options such as a loan with a smaller down payment. One creative solution continues on page 68

NAVIGATING THE APPRAISAL TERRITORY Bob Michels, Bob Michels Construction (left), and KC Chermak, Pillar Homes, agree that the builder must be the guide for their clients in navigating the mortgage and appraisal terrain.

2

1 WORK WITH YOUR LENDER: As a builder, you need to do your homework and find lenders who you can work with. They understand construction and can offer reasonable options to buyers and a workable finance plan. For example, KC has built mutually rewarding relationships in recent years with regional banks that are interested in jumbo loans.

What can you do?

• Network, ask other builders and talk to bank and mortgage representatives at BATC functions.

• Become the guide to your client before financing is secured.

• Research title companies to make sure the client is working with one that understands construction.

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KNOW HOW TO GET IN TOUCH WITH THE APPRAISER: Appraisers may not do the homework for a realistic appraisal. Both Michels and Chermak suggest that builders may have to do some of their own research to give to the appraiser, such as going into courthouse records. The MLS does not have all the pertinent information needed.

Chermak says he makes sure he is the source of a blueprint and other information for the appraiser, that includes real comps in his market area as well as his own homes. He can then create his own market.

What can you do?

• Do the homework and be sure you are the one to give it to the appraiser for the realistic comps and valuations you need.

• Look at single-close loans at the front end of construction, with draws. It is not uncommon for change-outs to become 10 percent of appraised value. An appraisal up front with a monthly draw and change order is recorded in order to eliminate possible surprises or sink holes at the end, when the

costs are not aligned with the appraisal.

• Bob Michels urges that Green Path improvements be sold and appraised appropriately, especially as these can represent significant tax credits.

3 REMODELING: There can be surprises for homeowners in remodeling large projects, according to Chermak. A homeowner with a large remodeling project might self-finance, then hope to merge a mortgage at the project end. The appraisal could discount the major improvements made and base value only on comps in area or lot size.

What can you do?

• Consider getting another appraisal: two are allowed.

• Change lenders.

• Guide the client to get the right appraisal on the front end. The client may want to merge loans on the front end for example, and may not get the numbers he needs.

UNIVERSITY

2014 CONTINUING

EDUCATION COURSES BUILDER | REMODELER | REAL ESTATE Presented by The Builders Association of the Twin Cities

EARN YOUR REQUIRED 14 CREDITS IN ONE PLACE

REGISTER ONLINE BATC.ORG

3 DAYS OF CAPS COURSES » Back to Back Days

» Including Energy

Classes are open to everyone!

THANK YOU SPONSORS

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» 2014 CONTINUING EDUCATION COURSES THURSDAY | JANUARY 23 COURSES

THURSDAY | FEBRUARY 20 COURSES

7 Credits (Including Energy)

7 Credits (Including Energy)

Successful Hiring of Women in the Residential Construction Industry

Managing the Change Order Process to Make Sure You Get Paid What You Deserve

Important Construction Contract Provisions: What You Need to Know to Protect Yourself and Your Clients

Understanding Moisture Dynamics in Residential Construction

Top Ten Dos and Don’ts in Development Agreements

IECC Energy Review & Masonry Compliance Options

Radon Basics: Risks/Testing/Mitigation

Stormwater Management in the Urban Environment

Quality Control with Spray Foam Insulations: Safety Compliance, Industry Myths and Contractor Selection

How to Avoid the Looming Insurance Crisis

TUESDAY | JANUARY 28 COURSES

7 Credits (Including Energy)

7 Credits (Including Energy)

Air Pressures and Air Flows in Homes: Causes and Effects

Residential Contracting Under Attack: the Good, the Bad, and the Ugly

Engineered Wood and Fiber Cement Siding Best Practices

TUESDAY | MARCH 4 COURSES

Responding to Defect Claims: What Builders Need to Know

7 Credits (Including Energy)

Avoid Skating on Thin ICE: Form I-9 Compliance, Penalties, Appeals and What the Construction Industry Needs to Know About Immigration Law

TUESDAY | FEBRUARY 25 COURSES

Slaying the Dragon: Effectively Resolving Construction Disputes Minnesota Mechanic’s Lien Issues: Doing It The Right Way Natural Gas: The American Energy Answer

SIP Experience - Start to Finish

Hydronic Heating Using Geothermal Heat Pumps

THURSDAY | JANUARY 30 COURSES 7 Credits (Including Energy)

Making Sense of Federal and State Wetland Laws Worker Classification: Employee or Independent Contractor?

Permeable Interlocking Concrete Pavement (PICP) - A Low Impact Development Tool - Training for Developers

TUESDAY | MARCH 11 COURSES 7 Credits (Including Energy)

Building Robust Homes: Top Innovations From Building America

Worker Classification: Employee or Independent Contractor?

HECM Purchase

Making Sense of Federal and State Wetland Laws

TUESDAY | FEBRUARY 11 COURSES

Build a Better House at Lower Cost by Reducing Air Infiltration

7 Credits (Including Energy)

Why Builders Need Lawyers: A Journey Through the Mine Field

Understanding Moisture Dynamics in Residential Construction

High-Performance Homes: Are You Ready for the DOE Challenge Home?

Tips and Tactics - A Guide to Executive Safety Management Concept Site Analysis and Considerations Practical Approach to Builder’s Code of Ethics Retirement Money for New Construction

FOR REGISTRATION & COURSE DESCRIPTIONS, VISIT WWW.BATC.ORG

NAHB CERTIFIED AGING IN PLACE (CAPS) COURSES TUESDAY | MARCH 18

WEDNESDAY | MARCH 19

THURSDAY | MARCH 20

CAPS I - Marketing and Communication Strategies for Aging and Accessibility An NAHB Designation Course

CAPS II - Design/Build Solutions for Aging and Accessibility An NAHB Designation Course

Business Management For Building Professionals An NAHB Designation Course BATC.org

January 2014

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Attend Events.

DON’T MISS OUR 2014 EVENTS Visit BATC.org for a complete list of events or to register

Jan 21 State of the Economy/ Dinner Meeting & Board Induction

May 21 Parade of Homes/ Remodelers Showcase® Fall 2014 Entry Deadline

Jan 23 BATC-U

Jun 7-15 Artisan Home Tour

Jan 28 BATC-U

Jan 30 BATC-U

Jul 22 FastForward - Educational Series

Jul 22 B.E. (Business Exchange) Showroom Mixer Aug 5 BATC Open

Feb. 4-6 IBS

Feb 5 BATC Hospitality Suite @ Paris Las Vegas

Feb 11 BATC-U

Feb 13 Member Orientation

Feb 20 BATC-U

Sept 6-28 Fall Parade of HomesSM

Feb 25 BATC-U

Mar 1-30 Spring Parade of HomesSM

Mar 4 BATC-U

Mar 11 BATC-U Mar 12 Builder Day on the Hill Mar 18-20 NAHB: Certified Aging in Place (CAPS) Designation

Apr 3 Builders & Remodelers Show (BRS) – A Product and Service Show by BATC Apr 3 FastForward - Educational Series (prior to show floor) Apr 12 BATC Foundation Builder’s WareHouse Sale

BATC.org

Aug 14 Member Orientation Sept 9 Sponsorship Luncheon

Sept 16 BE. (Business Exchange) Showroom Mixer Sept 23 BATC Foundation Golf Tournament Sept 26-28 Fall Parade of Homes Remodelers Showcase®

Oct 7 BATC Clay Shoot

Oct 11 BATC Foundation Builder’s WareHouse Sale

Oct 23 The BIG (Building Industry Gala) Night

Nov 12 P arade of Homes/ Remodelers Showcase® Spring 2015 Entry Deadline

Apr 17 BATC Foundation Luncheon

January 2014

Get FREE Stuff.

Sept 16 FastForward - Educational Series

May 20 FastForward - Educational Series

May 20 B.E. (Business Exchange) Showroom Mixer

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Jun 24 Member Orientation

Earn BATC Bucks.

Nov 13 Member Orientation Nov 18 FastForward - Educational Series Nov 18 BATC Buck Auction

Collect them all year and bring them to the Auction in November to bid on great prizes and cash drawings.

Earn more bucks by:

• Attend any BATC meeting or event • Find the Nail in the Builders’ Digest • Wear your Spike jacket/sweater to a BATC event

profile

elite sponsor warners’ stellian: BUILDING A SUCCESSFUL FAMILY BUSINESS Like so many BATC members, Warners’ Stellian is a family business — although theirs may be just a little more “family” than most, having employed upwards of 70 Warners at one time or another over the past half century. Currently, second generation siblings Jeff, Carla, Bill and Bob run the day-to-day operations, and 18 third generation Warners work full- or part-time for the company.

In the Beginning It was back in 1954 that Jim Warner went to work for Stellian Appliances. By the early 70s, Jim had taken over the company and renamed it Warners’ Stellian. It wasn’t

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long before, one by one, the second generation began coming on board. They’ve done a darned good job, too, as the company has grown to be the largest independently owned appliance dealership in the state, with seven metro retail showrooms and one in Rochester.

Today, at 85, Jim is retired and his nine children share ownership, and govern by council. Carla noted that from the earliest days, the family shared in the decision-making, and even today, they prefer to resolve issues democratically.

Learning the Ropes It’s clear that Warners’ Stellian has found the key to

Warners’ Stellian Corporate Headquarters at 550 Atwater Circle, St Paul

running a successful family business. They work together, resolve issues as a team, and, just because your name is Warner, doesn’t mean you’re guaranteed a job.

“First there has to be a need,” explains Carla. “There’s no entitlement for sure. Any new employee, including family, has to prove they can handle the position, and have the ability to do so.”

That means many of the Warners’ started their careers with the company at entry level — warehouse, delivery, retail sales — learning the business from the ground up. Continuing to learn is definitely a philosophy the Warners’ have taken to heart.

“We’ve taken some courses at the University of St. Thomas Family Business Center over the past seven years,” Carla reports. “These courses have really benefited us as a family and as a business. And they’ve helped us move toward the succession piece as we consider the transition to the third generation.”

“There’s nothing like learning from somebody who has already done what you’re attempting to do,” continues Jeff. “You learn from fellow independent family businesses.

[These are] really smart people who share a whole variety of smart processes with us.”

Family and Community Part of the Warners’ success does stem from the very fact that they are a local, family-owned business, this is Minnesota after all. And the Warners’ help that along by embracing their local communities. “The more involved we are in community service, the more the passionate leaders also involved support us” says Jeff. “We see a lot of benefit in that.”

“We learned from our dad the value of philanthropy,” Carla says. “And we try to pass that along to the third generation.”

“But you can’t lead by talking about it,” adds Jeff. “They need to see the example and they are seeing it from the nine of us [second generation].

The Warners’ truly do embody the spirit of a community-centered, independent, family-owned business. They’ve been a huge supporter of BATC and our membership over the years. We’d like to thank the family and their employees for being a BATC Elite Sponsor.

You can contact Warners’ Stellian at 651-726-1642 or visit them online at www.warnersstellian.com

The Warners’ truly do embody the spirit of a community-centered, independent, family-owned business. They’ve been a huge supporter of BATC and our membership over the years. We’d like to thank the family and their employees for being a BATC Elite Sponsor.

ST. THOMAS FAMILY BUSINESS CENTER If you run a family business and you’d like to learn more about the opportunities for learning through the University of St. Thomas Family Business Center, visit them online at stthomas.edu/business/ centers/familybusiness/ or contact director Sara McGinley at 651-962-4255.

651-726-1642 www.warnersstellian.com

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11.20.13 /// SMC MOCHA MEETING Thanks to Spacecrafting Photography and Video for hosting a fun and informative Mocha Meeting.

They shared professional tips for great architectural photography. Thanks to IDC-Automatic for coffee and rolls!

/// SMC MOCHA MEETING

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Left to Right: 1. Caroline Rene-Bazin, American Glass and Mirror and Mikel Edwards, Quality Insulation, Inc. 2. Megan Jensen, Diamond Kote Prefinishing, Molly Mahar, Brock White Company and Amy Fisk, HOM Furniture/Gabberts 3. Enjoying coffee and networking before the program 4. Jim Fuschetto, Ferguson Kitchen, Bath & Lighting Gallery 5. Jenny Johnson, IDC-Automatic & Sarah Dulong, Ron Clark Construction 6. Jenny Terrell, Spacecrafting, provided lots of great information for those in attendance 7. Megan Jensen, Diamond Kote Prefinishing 8. Caroline Rene-Bazin, American Glass and Mirror and Brett Remme, In-Focus Systems

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Jon Ressler Retail Sales Manager, AVP NMLS ID: 277085 952.210.8877 Cell jon.ressler@bankofamerica.com http://mortgage.bankofamerica.com/jonressler

Ian Kimball Retail Sales Manager NMLS ID: 1083501 612.214.5445 Cell ian.kimball@bankofamerica.com http://mortgage.bankofamerica.com/iankimball

Kristin Meier Senior Mortgage Loan Officer NMLS ID: 533094 507.213.9797 Cell kristin.meier@bankofamerica.com http://mortgage.bankofamerica.com/kristinmeier

Ken Lahr Senior Mortgage Loan Officer NMLS ID: 326612 952.250.9983 Cell ken.lahr@bankofamerica.com http://mortgage.bankofamerica.com/kenlahr

Dan Mills Mortgage Loan Officer NMLS ID: 421409 651.334.9589 Cell dmills@bankofamerica.com http://mortgage.bankofamerica.com/dmills

Superior service that’s close to home For personal attention and exceptional service, talk with a local home loan expert. You’ll get the clear and straightforward information you need to make well-informed home financing decisions.

From the beginning, we will work closely with you to answer your questions, and help you find a home loan that works with your financial goals.

If you are planning to purchase or refinance, you can experience exceptional service right in the neighborhood.

Contact one of our mortgage loan officers today.

Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice. Bank of America, N.A., Member FDIC. • Equal Housing Lender. ©2010 Bank of America Corporation.

00-62-0112D HL-107-AD 07-2013 AR9E65C6

advertorial

a better way to pre-finish siding

In 2001, it became apparent to Joe Jordan, CEO of Wausau Supply Company, that the traditional “flood coating” method of factory-painting siding wasn’t meeting the expectations of builders and homeowners. An avid collector of classic cars, Jordan looked to his passion for automobiles for inspiration. If car parts could be painted flawlessly and consistently in a robotic paint booth, why wouldn’t it work for siding and trim? After doing extensive research and investing millions of dollars in the best equipment, engineering, and technology available, Diamond Kote Pre-finishing was born, and opened state-ofthe-art prefinishing plants in Schofield, Wisconsin and Stuart, Iowa.

While it’s a common misconception that all prefinished siding is the same, Diamond Kote Pre-finishing really is different at nearly every stage of the game. “From the actual paint that’s made exclusively for our company, to the process of application, to our packaging, to our warranty — everything we do is focused on one thing: putting the best possible finish on the best possible siding,” says Megan Jensen, Market

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Development Specialist with Diamond Kote Pre-finishing.

The paint used by Diamond Kote is engineered specifically for each substrate and designed to be applied in a factory setting by computer-calibrated sprayers. The sprayers break down the paint as it is applied to ensure better adhesion. The process has been perfected so that every inch of every board receives two uniform coats of finish, which helps retain the beautiful wood grain profile of the siding. Diamond Kote is available in 29 standard colors, including six premium finishes that beautifully mimic natural wood. Custom colors are also available.

The paint itself is made with naturally derived pigments such as iron oxide and carbon, combined with 97 percent pure Titanium Dioxide and 100 percent acrylic polymers.

This results in a paint with unparalleled adhesion, durability, and vibrant colors that withstand fade better than any on the market.

Because of the paint and the process, Diamond Kote Pre-finishing is able to offer a 30-year, no fade warranty.

“I talk to homeowners, and when you mention the word ‘warranty’, their eyes kind of glaze over. But when you tell them that they will not have to think about repainting their home for 30 years, they are usually sold on Diamond Kote. Even though the initial investment is a few hundred dollars more for a whole home’s worth of siding, it’s worth it in the long run when they know they don’t have to shell out thousands of dollars every seven years to have it repainted to keep it looking good,” states Jensen.

Diamond Kote Pre-finishing has a longstanding partnership with LP SmartSide, and pre-finishes everything in their line of products, as well as a number of signature items manufactured through Wausau Siding Systems: trim and one-piece corners with nailing fin, and RigidStack, a lap siding with a heavy duty spline for easier installation and more flawless appearance. Diamond Kote also offers accessories like H-moldings, soffit and fascia, and sealants which come in all the Diamond Kote colors, making it simple to design a more beautiful exterior.

Diamond Kote Pre-finishing Showroom in Lakeville is open by appointment for contractors, designers, and the general public.

Please contact Megan Jensen at megan.jensen@ diamondkoteprefinishing.com to schedule a visit.

It’s simple, pre-finishing with specialized paint and sprayers in a clean, indoor environment equals a better product.

diamondkoteprefinishing.com

BATC.org

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parade of homes

By the Numbers 2013:

PARADE OF HOMESSM & REMODELERS SHOWCASE速

NUMBER OF ENTRIES

702

169

GUIDEBOOKS DISTRIBUTED

151

ADVERTISING & PROMOTION

FC-8.28125_Layout 1 2/4/13 7:15 PM Page 1

Parade of Homes Spring 2013

150,000

SM

new home

cover-INSIDE BACK-rsf_Layout 1 2/4/13 3:05 PM Page 1

Presented by The Builders Association of the Twin Cities

100,000 remodelers

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374 TV Spots Aired 3,524 Radio Commercials Aired 232 Billboards 180 Bus Sides 56 Print Ads 18.776 Million Online Impressions

383,666 Unique Visits 263,779 Unique Visitors 1,815,233 Page Views 4.73 Pages/Visit

WEB TRAFFIC (Jan. 1 - Dec. 17, 2013)

04:02 Average

Visit Duration

42% Via Smart Phone or Tablet

SOCIAL MEDIA ACTIVITY

17 BOARDS 281 PINS

634

2,984

TWITTER FOLLOWERS

FACEBOOK FOLLOWERS

NEW HOMES 4,502 Permits Issued*

8,618

4,314

$1,667,111,772

22,446

430

Housing Units Permitted*

Single Family Permits issued*

New Residential Permits value*

Vacant Developed Lots **

Finished Vacant Housing Units**

$43,957,633

57 ***

Remodeling Pemits Value*

Remodeling Market Index

REMODELING (Large Projects) 213

108

Permits issued for Residential Remodeling over $50K projects*

Permits issued for Residential Additions*

January through November, 2013 * Keystone Reports ** Metrostudy *** NAHB (an index of 50 means remodelers expect the market to be flat, over 50 means growth)

BATC.org

January 2014

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1

11.14.13 /// BATC BUCK AUCTION 2

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/// BATC BUCK AUCTION

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Left to Right: 1. Pamela Belz, Senior Housing Partners 2. Pattie Martin, Glowing Hearth & Home with Kathe Ostrom, C.N. Ostrom & Son 3. Pamela Belz, Senior Housing Partners and Curt Swanson, Swanson Homes 4. Brett Remme, In-Focus Systems in the Cash Vault 5. Justin Spoelstra, Preferred Interactive also trying to catch some cash 6. Brett Remme, In-Focus Systems placing a bid 7. Daryl Doehr, Marvin Windows & Doors 8. Gail Ketter and Deb Hitchcock, Builders Club 9. Bryan Ogle, Ogle Construction 10. Tony Koval, Oakcrest Building Products waiting for Jeff Schoenwetter, JMS Custom Homes to pay up 11. Auctioneer Mark Friederichs

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/// BATC BUCK AUCTION

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Left to Right: 12. Ruth Petermann, Send Out Cards by Petermann Enterprizes with Emily Petermann, BATC 13. Brad Sorensen, Custom Millwork 14. Our own Vanna, David Siegel, BATC Executive Director 15. John Zirbes, Lyman Lumber trying to score some more cash 16. Doug Nelson, New Spaces and Jeff Schoenwetter, JMS Custom Homes 17. Ross Anderson, RSR and Brian Robbins, Pella Windows & Doors 18. Katy Hoey, Water Doctors 19. Shawn Nelson, New Spaces 20. Trace Mills, Mattamy Homes 21. Counting out their cash 22. Tony Koval, Oakcrest Building Products with Ron DeCoux, BATC 23. The lovely ladies of Wells Fargo Home Mortgage

BATC.org

January 2014

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More Resources. More Solutions.

PAINT | DRYWALL | PRE-FINISH SHOP | DESIGN SERVICES

SO MUCH MORE THAN

UMBER

Let us help you manage your cost and schedule.

Grow your bottom line with Lyman Lumber.

952-470-4800 www.lymanlumber.com

award winners

BATC Fall Award Winners BATC 2013 Associate of the Year:

Lyman Lumber Co. Little did Albert Lyman realize when he launched his small Excelsior lumberyard in 1897 that the company would still be going strong 116 years later. And going strong it is. Even after a shortlived Chapter 11 during the worst of the downturn, the firm restructured and rescaled, and has come back stronger than ever. Lyman’s core operations consist of full-service lumberyards located in Chanhassen and Eau Claire, carpentry services offered through its Carpentry Contractors division, and engineered components sold through Automated Building Components (ABC).

“Our customers are the lifeblood of our company,” says John Zirbes, Lyman Lumber branch manager. “The loyalty shown by our customers has been incredible, and the vote of confidence they put in our company has been inspiring.”

Mary Jo and John Zirbes

Which is exactly why Lyman Lumber Co. deserves to be our Associate of the Year.

BATC 2013 Builder of the Year:

John Kraemer & Sons Our 2013 Builder of the Year is no stranger to this, our most coveted builder award.

This fall John Kraemer & Sons walked off with the gold (or should we say the trophy that’s almost as heavy as gold) for the third time. They first earned the honor in 1999 when it was still the HAP (Homebuilders and Associates in Partnership) Award.

They won again in 2009 after coming in as one of three runners up in 2008. And now they are three-time winners (and ineligible again until 2017).

Why are they always winning?

According to Gary Kraemer and sons, John and Jeff, it’s because they continue to live by the business philosophy that Gary and his late dad, John, started the company with in 1978. Which is staying personally involved with every project. They continue to employ their own project managers, job

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Gary, John and Jeff Kraemer

superintendents and finish carpenters, and promise superior craftsmanship, attention to detail, and an intense focus on customer satisfaction. For 35 years, John Kraemer & Sons has been building new homes and remodeling existing homes for a wide variety of satisfied clients, and promising excellence. It’s clear that they are succeeding.

winners online at blog.batconline.org

Congratuations to our other winners: Spike of the Year:

Curt Christensen, Lee Lyn Construction (see page 50)

BATC’s former Executive Vice President, Bob Hanson (whom this award is named after) stands between 2013 recipients Lowell Pratt, Pratt Homes and Bob Bennett, Fireside Hearth & Home

Advocate of the Year:

Ian Peterson,

The Robert L. Hanson Service Award is an annual honor given to a BATC individual or individuals for their service to the homebuilding industry through efforts and contributions to the work of BATC, our parent organizations (the Builders Association of Minnesota (BAM) and the National Association of Home Builders, and to the industry as a whole.

Pulte Homes of Minnesota (see page 53)

BATC 2013 Robert L. Hanson Industry Service Award Winners:

Lowell Pratt and Bob Bennett Lowell Pratt, Pratt Homes If you read our profile on Lowell in the last issue of Builders Digest, you know why Lowell was a natural pick for this year’s Robert Hanson Award. His commitment to BATC and the housing industry has never wavered over the 40 years he and his brother Len have operated Pratt Homes. From years leading the charge to ensure Minnesota’s contractor licensing works for the industry to spearheading BATC’s new Artisan Home Tour over the past 12 months, Lowell has, time and again, shared his energy and talents with all of us. Thank you, Lowell.

Bob Bennett, Fireside Hearth and Home The other half of our super-Robert-HansonAward-winning duo, Bob Bennett, has been one of BATC’s most tireless volunteers. In the 19 years he’s been a BATC member, he’s served on countless committees (usually two or three each year), served on BATC’s Board of Directors, and was elected to BATC’s Executive Board from 2004-2006. He has been a driving force for the BATC Foundation, serving as its Fund Raising Chair for the past five years. Bob shares his talents with other organizations as well, most recently helping organize and run fundraisers for Home Free, a shelter for abused women and children. Thank you, Bob, for all you do.

Legislator of the Year:

State Representative Michael Nelson, Brooklyn Park (see page 53)

more award winners on page 38

BATC.org

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CONGRATULATIONS! 2013 REGGIE AWARDSM AND TRILLIUM AWARDSM WINNERS

$140,000–$254,999

$255,000–$289,999

$290,000–$329,999

#202 Ramsey | $250,000 Semler Construction, Inc Trillium Partners: Fireside Hearth & Home, Granite-Tops, LLC, Village Floor & Wall, Inc.

#204 Ramsey | $259,200 MC Custom Homes, LLC Trillium Partner: Village Floor & Wall, Inc.

#45 New Prague | $309,000 K.A. Witt Construction, Inc.

$330,000–$379,999

$380,000–$439,999

$440,000–$471,999

#293 Woodbury | $354,000 Michael Lee, Inc. Trillium Partner: Scherer Bros. Lumber Co.

#240 Lino Lakes | $409,500 Imperial Homes, Inc. Trillium Parters: Fireside Hearth & Home, Scherer Bros. Lumber Co.

#235 Blaine | $470,000 Paulson Construction, Inc.

$472,000–$499,999

$500,000–$524,999

$525,000–$569,999

#307 St. Paul | $475,000 Amaris Homes, LLC Trillium Partner: Minnesota Exteriors, Inc.

#274 Hudson | $519,000 Hartman Homes, Inc.

#22 Lakeville | $531,000 Homes by Tradition, LLC Trillium Partners: Designed Cabinets, Inc., Southern Lights

$570,000–$699,999

$700,000–$899,999

$900,000–$1,199,999

#260 Roseville | $645,000 Zawadski Homes, Inc. Trillium Partner: Scherer Bros. Lumber Co.

#143 Plymouth | $874,800 Donnay Homes Trillium Partner: Southern Lights

#164 Maple Grove | $958,500 Swanson Homes Trillium Partners: Glowing Hearth & Home, Scherer Bros. Lumber Co.

$1,200,000+ #202 Ramsey | $250,000 Semler Construction, Inc Trillium Partners: Fireside Hearth & Home, Granite-Tops, LLC, Village Floor & Wall, Inc.

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award winners

thank you, fall gala sponsors Co-Presenting Sponsors NOW SELLING 2014 SPONSORSHIPS! Millwork Division

Brush Masters

Lyman Lumber Co.

www.brushmasters.com

www.lymanlumber.com

Red Carpet Sponsor

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

Xcel Energy www.xcelenergy.com

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BATC.org

January 2014

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OPEN

12.21.13 /// OPEN HOUZZ EVENT 1

2

OCTOBER 15, 2013

Presented by

BATC Houzz.indd 1

3

5

10/11/13 10:54 AM

4

/// OPEN HOUZZ EVEMT

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Left to Right: 1. BATC Executive Director David Siegel welcomed the crowds 2. Deb Earl, BATC with Julia Hipp, AXA Advisors 3. Greg Asterlund and Todd Bjerstedt, McDonald Remodeling 4. Jenny Terrell and Mike McCaw, Spacecrafting Photography & Video 5. Lots of new faces joined us to hear from Houzz representative, Katherine Nannizzi 6. Sue Marshall, Marshall & Koopman Real Estate with BATC Foundation Executive Director Perri Graham 7. Robyn Geyen and Kory Holm Roberts Residential Remodeling 8. John Wieremann, Global Flooring & Design of MN with Kimberly Bednar, Brush Masters 9. Cindy Chapman, Light’n Up! with Julie Speer, Hartman Homes

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with

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REGISTER NOW AT www.batcBRS.com 42

January 2014

BATC.org

BEST INDUSTRY

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Free Admission, Free Food* *Free to all licensed MN Builders, remodelers, architects and interior designers. Dinner Buffet 4:30-7:00PM: Up to 4 free dinner tickets per builder/remodeler/architect/interior design firm. Additional dinners may be purchased if desired.

Win $500 Scavenger Hunt Maybe you could be the MPA (most paid attendee) of the show by visiting participating scavenger hunt booths.

Demo Stage Get even more info on new products and services to help improve your residential construction business. We’ve lined up six exhibitors to share valuable information about the marketplace in 15-minute bites.

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BATC.org

January 2014

43

batc foundation

our newest projects The BATC Foundation is pleased to be partnering with several terrific organizations. Two smaller projects in partnership with Rebuilding Together Twin Cities were completed in 2013. We replaced subflooring and laminate for a single mom army vet and retired reservist; and completed home repairs designed to make the home of a man who suffers the long-term effects of a traumatic brain injury safer by repairing his rear steps and fire escape.

Another project we’re excited about is a new partnership with Special Spaces Minneapolis. Special Spaces is part of a national organization whose mission is to create dream bedrooms for children with life threatening illnesses. Special Spaces works with Children’s Hospital in Minneapolis to identify families who can benefit from these life-affirming makeovers. The Foundation has committed to two of these projects for 2014.

If you are a designer who would like to be involved with these projects, please contact Perri Graham at perri@batc.org.

There are other projects under consideration for 2014. If you’d like to be considered as a Builder Partner, let us know!

silent auction The BATC Foundation Silent Auction was a big success raising more than $22,000 for the Foundation.

Thank you to everyone who donated an item or bid, and special thanks go to our top auction donors: Admit One and Cambria. We’re already thinking about next year, so if you would like to donate items for the 2014 auction, please contact Bob Bennett (bennettb@fireside. com) or Perri Graham (perri@batc. org).

Builder Partners Needed for 2014

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

We’re also working on Zack’s house.

Read more on page 46.

John says it pretty well – becoming a Builder Partner with the BATC Foundation provides a way to give back to your community. If you’re interested in learning more about what’s involved in becoming a Builder Partner, call or email Perri Graham at the BATC Foundation.

“We were rewarded with the incredible feeling of giving back to the community which has given us so much…I recommend that everyone consider taking time out of their busy schedules to give back by using the construction skills you’ve been blessed with. There is no better way to support a remarkable foundation, that provides assistance to people in need and who are less fortunate than all of us.”

–J ohn Kraemer, John Kraemer & Sons, Inc. continues on page 46

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Lots & Land For Sale: • Rogers

26 10 single-family lots and 46 townhome lots

• Lino Lakes

31 SOLD OUT

• Hugo

33 townhome lots permit ready

• Wyoming

80 57 single-family lots For more information call:

Joel Schwieters @ 612-328-2819

John Schwieters @ 612-685-3091

Interior Finishes • Finish Carpentry • Millwork • Prefi nish • Cabinetry

• Commercial & Residential Hardware • Hollow Metal Doors & Frames • Exterior Doors • Windows • Design Studio

finishcarpenters.com • schwietersmillwork.com

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batc foundation

give to the max day

reHouse is now Builders WareHouse

The BATC Foundation participated in the 2014 Give to the Max Day on November 14. Despite technical difficulties which kept the statewide site down for several hours, many of you managed to log on and support your Foundation.

We had a huge increase over our 2012 total – partly due to a $2,000 gift by Bell Mortgage. Our final total was $3,825.

The name has changed, but not the concept. reHouse is now Builders WareHouse!

Our first sale was held on a drizzly, cold September day but spirits were warm as we welcomed our first customers.

The prices were great and the buzz was loud as people left laden with deals, promising to tell their friends.

Builders WareHouse is an occasional store – we’re only open during public sales which we will set as we have enough inventory donated. We also plan to list items on Craigs List. Speaking of donations, we would love to accept your new and very gently used items at Builders WareHouse. We’re always looking for building materials, lighting fixtures, appliances, model home furniture, cabinets, etc. Items must be new or in very good condition (undamaged and not missing pieces or parts). Donations are tax deductible and the Foundation can provide a receipt. However, it is the donor’s responsibility to provide a value for each item.

Builders WareHouse is sponsored by Bell Mortgage.

We would love to accept your new and very gently used items at Builders WareHouse.

• building materials, • lighting fixtures, • appliances, • model home furniture, • cabinets, etc.

zack’s house In September of 2012, Zack Mohs was struck by a hit and run driver as he was crossing a street in Anchorage, Alaska. Zack suffered a severe brain injury, spinal cord injury, multiple broken bones and had to have his left leg amputated.

Initially, there was little hope that Zack would survive.

That was before Zack’s family and friends stepped in to help. Cheryl Young, Zack’s mom, was determined that her son would not only survive but would someday walk again. Zack’s dream is to have a home of his home that will accommodate his needs, allow him to continue to work on his recovery and someday serve as his base for

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his dog training business. His mom is not going to rest until Zack is safe in his own home. Although Cheryl and Zack’s friends have held numerous fundraisers for Zack, the money raised for Zack’s home began to fall short of what was needed to complete the home. That’s when Cheryl approached the BATC Foundation for help.

Together with Rebuilding Together Twin Cities, the BATC Foundation is helping this determined South St. Paul native on his road to recovery. When Cheryl came to us, the house foundation was completed and part of the structure was up but there is a lot more left to do.

BATC Foundation Builder Partner, JK Anderson has stepped up to help. We need you to do the same. With the help of BATC members like yourself, the Foundation can finish Zack’s house and give this young man a start on the rest of his life.

Call the BATC Foundation office at (651) 6977563 to find out how you can help.

With the help of BATC members like yourself, the Foundation can finish Zack’s house and give this young man a start on the rest of his life.

Call the BATC Foundation office at (651) 697-7563 to find out how you can help.

Commercial

Residential

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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.

Alerus Mortgage 11100 Wayzata Boulevard, #570 Minnetonka, MN 55305 Allison Shaw 952-258-8756 lisawellsloans.com

Bulwark Coatings 2271 – 2nd Street N, #100 N. St. Paul, MN 55109 Jeff Long 952-767-3090 jlong@bulwarkcoatings.com bulwarkcoatings.com

Castle Gate Construction, Inc. 742 Tilia Lane Victoria, MN 55386 Dan Kurth 952-949-2222 dcala5@yahoo.com cgcmn.com

E.L. Reinhardt Company, Inc.

Loucks Associates

Meridian Land Company

Ridge Construction, LLC

3250 Fanum Road Vadnais Heights, MN 55110 Paul Tate 651-481-0566 ptate@elreinhardt.com elreinhardt.com

7200 Hemlock Lane, #300 Maple Grove, MN 55369 Jeff Shopek 763-424-5505 jshopek@loucksassociates. com loucksassociates.com

3600 American Boulevard, #750 Minneapolis, MN 55431 Glenn McCabe 952-346-4680 glenn.mccabe@meridianlandcompany.com meridianlandcompany.com

3449 – 46th Avenue S. Minneapolis, MN 55406 Rob Michals 612-730-2770 rob@ridgeconstructionllc. com ridgeconstructionllc.com

Energy Panel Structures

Heat My Floors.com

102 E. Industrial Park Graettinger, IA 51342 Lee Begum 712-859-3219 lbergum@epsbuildings.com epsbuildings.com

Heritage Builders, Inc. Envoy Mortgage 9140 Baltimore Street NE, #130 Blaine, MN 55449 Nathan Raich 763-784-8700 nraich@envoymortgage.com loanmn.com

Custom Homes, LLC 275 Market Street, #531 Minneapolis, MN 55405 Bernie O’Connor 612-782-7111 bernie@trestlecustomhomes. com trestlecustomhomes.com

Custom Home Builders Title, LLC 10850 Old County Road 15, #100 Plymouth, MN 55441 John Twiss 763-489-3240 johnt@chbtitle.com

Design One Innovations, LLC 9991 Goodhue Street NE Blaine, MN 55449 Eric Ericsson 763-784-6705 info@design1innovations. com design1innovations.com

Dillon Drywall, LLC 16232 Jatos Circle Lakeville, MN 55044 Jake Dillon 952-215-8410 Jake@DillonDrywallLLC.com DillonDrywallLLC.com

6800 Electric Drive Rockford, MN 55373 Steven Walstad 763-477-3000 swalstad@whe.org heatmyfloors.com

Garage Floor Coating of MN.com 5100 US Highway 169 N. New Hope, MN 55428 Jason Ripley 763-559-8732 joleen@gfcmn.com garagefloorcoatingofmn.com

Graco 88 – 11th Avenue NE Minneapolis, MN 55413 Nick Pagano 612-623-6078 npagano@graco.com graco.com

Granicrete Minnesota 2610 YH Hansen Avenue, #101 Albert Lea, MN 56007 Jean Eaton 507-373-3547 granicreteminnesota@gmail. com granicreteminnesota.com

Harrington Contracting Services, LLC 10810 Jurgen Nash Drive Brainerd, MN 56401 Michael Harrington 612-982-2997 mike@harringtonmn.com harringtommn.com

9953 Nathan Lane N. Maple Grove, MN 55369 Ike Daughenbaugh 952-927-6595 iked@heritagebldrs.com heirtagebldrs.com

Home Construction, Inc. 3775 County Road 92 N. Maple Plain, MN 55359 Chris Stephan 612-382-4199 stephanhci@frontiernet.net

Infinity Custom Builders, LLC 3010 Brooks Lane Wayzata, MN 55391 John Dunn 612-309-3195 john@infinitycustombuilders. com infinitycustombuilders. com

Jorgenson Homes, Inc. 19449 Evans Street NW, Suite C Elk River, MN 55330 Jeff Jorgenson 763-856-0348 info@jorgenson-homes.com jorgenson-homes.com

KCRTA Store P.O. Box 120431 New Brighton, MN 55112 Ryan Clark 651-792-6703 ryan@KCRTAstore.com KCRTAstore.com

LP Building Products 6338 – 16th Avenue S. Richfield, MN 55423 Joe Grandbois 612-718-3182 joe.grandbois@lpcorp.com lpcorp.com

Minnesota Bank & Trust 7701 France Avenue S., #400 Edina, MN 55435 Mark Sundquist 952-841-9366 msundquist@mnbankandtrust.com www.mnbankandtrust.com

Nasby Construction, Inc. 18624 Kalmar Trail Lakeville, MN 55044 Doug Nasby 612-685-1234 deb@mjlhomes.com mjlhomes.com

Penguin Insulation, Inc. 1442 – 7th Street Houlton, WI54082 Barry Cicchese 651-439-8822 barry.cicchese@mascocs.com

Sage Homes 3430 Kilmer Lane N. Plymouth, MN 55441 Eric Stendahl 763-557-7371 eric@mysagehome.com mysagehome.com

Security One Lending 8268 View Lane Eden Prairie, MN 55347 Steve Garver 612-636-9578 sgarver@s1l.com stevegarverreversemortgages.com

Summit Construction, LLC 1501 Roundhouse Circle Shakopee, MN 55379 Blake Grefe 612-247-6997 summitbuilt@gmail.com summitcraftsman.com

Pheasant Run Construction, LLC

T Square Repair & Remodeling

1109 – 141st Lane NE Ham Lake, MN 55304 Lonni Krohn 612-986-4689 lonni@pheasantrunconstruction.com pheasantrunconstruction. com

6009 Penn Avenue S. Minneapolis, MN 55419 Timothy Sjoquist 612-423-4489 tim@TSquareRepair.com TSquareRepair.com

Piling Systems DBA RamJack of MN 250 Industrial Boulevard Norwood, MN 55396 John Newman 952-367-6733 Category: Associate john@ramjackmn.com ramjackmn.com

Residential Technology Systems P.O. Box 43606 Brooklyn Park, MN 55443 Daniel Woody 763-710-5700 woody@restechsystems.com restechsystems.com

Timberidge Builders, Inc. 10873 Misty Lane Woodbury, MN 55129 Michael Laumann 952-440-3313 mike@timberidgebuilders. com

Trinity Construction Services P.O. Box 190 Victoria, MN 55386 Dennis Zattera 952-297-5000 dennis@TrinityMN.net TrinityMN.net

Whitten Associates, Inc. 4159 Heatherton Place Minnetonka, MN 55345 Tim Whitten 612-747-0771 tim@whittenassociates.com continues on page 50

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last quarter

SPIKE

See a complete list of Spike points at batc.org

BATC 2013 Spike of the Year:

Curt Christensen, Lee Lyn Construction We were very proud to announce this year’s Spike of the Year at our Fall Gala Awards, although no one was all that surprised that our winner was Curt Christensen.

During his tenure on BATC’s Board of Directors over the prior three years and as BATC President in 2012, Curt led the charge for growing BATC membership. And as past president we didn’t require his time and energy quite so much, so it makes perfect sense that he found the time to be our biggest recruiter in 2013, earning 10 Spike credits.

You may wonder what Curt’s secret is in convincing other

companies to join BATC? First is his sincerity when he says how much value he has gotten from BATC over the years, that’s always the best recruiting tool. But, as you probably know, Curt and subtlety generally don’t reside in the same county, so we’re pretty sure Curt does a hard close — “so can I count on you to join?” And Curt assures us that his subs and suppliers found out pretty quickly that it’s awfully hard to say no to him when he’s “suggesting” they join BATC. Thanks Curt, you truly are the “big spike” in our hearts here at BATC.

BATC October 2013 Membership Drive Thanks to all the members who were involved in our membership drive during the month of October. We had some fun, almost reached our goal (one short) of 20 new members, and gave out some great prizes.

Pattie Martin, Glowing Hearth & Home

Congratulations to our winners! Team Power Play, captained

by Pattie Martin took first place, with Pattie herself being the top membership recruiter for the month. Second place was taken by the BATC Foundation team, co-captained by Katie Harms and Bob Bennett. Prizes for recruiters included gift cards, wine, and a weekend at Arrowwood Resort in Alexandria.

Plan to join us next year and see if you can be a recruiting winner.

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MEMBER SPIKELIGHT 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 Spike Club with all the honors that bestows.

3 NEW MEMBERS LAST QUARTER

John Zirbes Lyman Lumber 2 NEW MEMBERS LAST QUARTER

Bob Bennett Fireside Hearth & Home Kori Meewes and more by Kori Shawn Nelson New Spaces 1 NEW MEMBER LAST QUARTER

Jason McCarty Westwood Professional Services, Inc. Kerry Mulcrone Kerry & Co. Brian Robbins Pella Windows & Doors Pam Belz Senior Housing Partners Bud Dropps Accent Homes, Inc. Kathe Ostrom C.N. Ostrom & Son, Inc. Ruth Petermann Send Out Cards by Petermann Enterprises Bob Cremers Builders Club Bob Michels Bob Michels Construction, Inc.

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advocacy

2014: preparing for a big advocacy year Sprinkler Mandate After more than five years of debate, votes, vetoes and member alerts, we’ll have a final decision on whether or not fire sprinklers will be mandated by the building code for single family homes.

In what has clearly been the largest policy issue of the past decade, BATC has battled the Governor and fire sprinkler industry in our attempt to keep sprinklers a choice, not a mandate.

An Administrative Law Judge hearing was held in early December, and BATC now awaits the ALJ report and final decision from the Governor.

NO SPRINKLER MANDATE FOR MINNESOTA HOMEOWNERS

Given the history of this issue it’s likely that it could emerge at the legislature again in 2014, and will undoubtedly be an item of discussion in the 2014 elections.

Visit nosprinklermandate.com for more information.

2014 Builder Day at the Capitol A banner event for BATC members, this is the time to connect our industry directly with the legislature.

On Wednesday, March 12th, members will have the opportunity to meet with their House and Senate member at the Capitol in St. Paul to discuss the important issues facing our industry. Following the meetings, a reception will be held at the James J. Hill Reference Library in St. Paul. All BATC members are welcome to join the legislators, all of whom will be invited. See page 12 for more details.

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BUILDER

DAY AT THE CAPITOL AND LEGISLATIVE RECEPTION

ENERGY CODE On the tarmac of regulatory updates waits the energy code, patiently marking time in the queue as the more controversial building code works through hearings on the sprinkler mandate.

Though it hasn’t gotten the attention that the sprinkler issue has in the building code update, the energy code will potentially bring a host of new requirements into our state, including these proposals: • R21 Wall Insulation; • R15 Exterior Foundation Insulation with a performance option for R-10; • Rigid Ducting; • Mandatory Blower Door Testing with an ACH50 of 3 or less Like the building code, these proposals will be noticed for public comment and could change during this process.

Following the adoption of the energy code a six month implementation period will be observed to allow for code education and product alignment with the new requirements.

BATC Vision: To be the leading voice for builders and remodelers

Congratulations to

Met Council Growth Projections An increasingly intense debate is raging over the future growth patterns of our region. The Met Council released a preliminary growth forecast that calls for sharp growth in the urban core and along transit corridors in the first-ring and largely developed suburbs. BATC members report a substantially different message from homeowners looking to build with strongest preferences to live in affordably priced homes with amenities, strong school districts, and access to transportation corridors.

BATC submitted comments in late 2013 which urged the Met Council to make substantial adjustments to their Forecasts for the region’s growth pattern. We also urged the Council to utilize BATC and other market expertise in this process. The process will move forward with updated population forecasts for all of our region as part of the Thrive 2040 regional planning process. Expect much discussion on this in 2014.

2013 Legislator of the Year:

Rep. Mike Nelson

BATC lobbyist Pete Coyle, Representative Mike Nelson and James Vagle, BATC Rep Mike Nelson (DFL-Brooklyn Park) was honored as BATC’s 2013 Legislator of the Year at the October gala. Rep Nelson has served in the Minnesota House of Representatives since 2002, representing the Brooklyn Park area.

Representative Nelson chairs the Government Operations Committee which oversees a significant portion of policy items followed closely

by BATC. Following a career in carpentry, he has been a strong supporter of BATC for several years, including strong support for our current top priority, opposing the mandate for home indoor sprinkler systems for single family homes.

2013 Advocate of the Year:

Ian Peterson Ian Peterson and 2013 BATC President Pamela Belz

Elections 2014 – Housing First issues in a way that we will not see for at least another decade.

The 2014 election cycle is extremely important with statewide elections in the US Senate and Governor races, as well as elections in Congress and the Minnesota House.

Housing First (our Independent Expenditure Fund) has the chance to impact elections and increase awareness of key homebuilding

Housing First is attempting to broaden support for our industry by increasing the number of industry champions in Minnesota elected offices. Simply put, we need more housing champions in Minnesota political offices where the regulatory decisions are deliberated and made.

Visit HousingFirstMN.com to learn more about the 2014 election efforts.

Ian Peterson was honored as BATC’s 2013 Advocate of the Year at the October gala. Ian is the Vice President of Land for the PulteGroup Minnesota Division. He is a graduate of Michigan State University, with a degree in Civil Engineering. He also holds a master’s degree in Project Management from Northwestern University. He is an active member of the BATC Public Policy Committee, serving as a BATC member representative with the MN Pollution Control Agency and the Metropolitan Council. In addition, Ian has been active at the state legislature, testifying before committees, lobbying legislators, and supporting Housing First initiatives.

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10.3.13 /// PAST DIRECTORS DINNER 1

2

4

/// DIRECTORS DINNER

3

5

6

8

7

9

Left to Right: 1. Deb Earl, BATC and Bob Hanson, former BATC Executive VP in front with Constance Koopman, Marshall & Koopman Real Estate and Brett Remme, In-Focus Systems 2. Antoine Poppelaars, Daryl Doehr, Marvin Windows and Doors; Pattie Martin, Glowing Hearth and Home; Todd Polifka, Brush Masters; Tony Koval, Oakcrest Building Products, Jerry Peterson and Al TeWinkel, On the Green 3. Len Pratt, Pratt Homes; John Taylor, Marvin Windows and Doors; Bob Hanson, former BATC EVP; Betty Hardle, Vanderbilt Homes and Jim Hanson 4. Bob Bennett, Fireside Hearth and Home; Jeff Schoenwetter, JMS Custom Homes; Bob Swanick, JMS Custom Homes; John Zirbes, Lyman Lumber; Rick Packer, Centra Homes; Mike Swanson, JMS Custom Homes 5. BATC Foundation Katie Harms, Scherer Bros. Lumber 6. Kori Meewes, and more by Kori; Chris Contreras, Ryland Homes; Pamela Belz, Senior Housing Partners; Kerry Mulcrone, Kerry & Co.; Todd Bjerstedt, McDonald Remodeling; Jon Coty, Floorsource & Design; Brett Remme, In-Focus Systems; Brad Sorensen, Custom Millwork 7. BATC President Pamela Belz, Senior Housing Partners 8. Len Pratt, Pratt Homes 9. Enjoying the evening.

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LP and SmartSide are trademarks of Louisiana-Pacific Corporation.

BATC.org

January 2014

55

Thank you

2014

ELITE PARTNERS

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 56 2014 NEWS January EVERYDAY ON BATC.org THE BLOG: WWW.BATC.ORG/BLOG APRIL/JUNE 2013 BUILDERS’ DIGEST 56

www.probuild.com

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

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

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

mn green path

MN Green Path An energy path that makes sense “If you option green features, no one will go for the upgrade—you’ve got to include them,” says Utah-based production builder Garbett Homes’ marketing director Rene Oehlerking. “Everybody wants to go green but nobody wants to pay for it. If you can get a green product that’s energy efficient and that is a higher-performing product—in any industry—and you can price it the same as a traditional product, consumers are going to go for the green product.”

– from an article in Builder Magazine about a builder offering net-zero energy production homes at competitive prices.

All the research agrees with Mr. Oehlerking, which is central to our positioning for MN Green Path. We know Minnesota has tough energy codes, meaning every new home built here today is at least 20 percent more efficient than the average new home in the U.S.,

and a lot more efficient than most resale, older homes in the Twin Cities. When the new energy codes goes into effect, which will likely be in 2014, we’ll look even better.

That’s why we encourage all our builders to have their homes energy tested and ask their rater for a Green Path Home Performance Report (HPR). It’s a win-win for you and your home buyers. Testing, which is subsidized by both Xcel Energy and CenterPoint Energy, with an accompanying HPR, lets you show your buyers proof that the home they buy is greener than most homes in the U.S. You’ll also get excellent feedback about how to maximize efficiency from the highly-trained raters who inspect your home twice during and once after construction. And, of course, when you test your Parade Homes,SM you’ll be included in the Green Path Energy Tour.

Our thanks to our MN Green Path Implementing Partner and a driving force behind our success, Residential Science Resources.

If you need a rater, just contact Mary Schweich, 651-697-7572 (Mary@batc.org) for a complete

Trailblazer_________________________________________

list of certified RESNET raters in the area.

For questions

Visionary__________________________________________

about the program, please contact

THANK YOU Pioneer____________________________________________

to our

2014 Sponsors 58

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James Vagle 651-697-7578 james@batc.org or Wendy Danks 651-697-7565 wendy@batc.org

w w w . S y N e r g y- t r t. C o M

Eric Graf, Tom Swedenburg and Dan Raleigh

Sharing …

a tradi�on of over 100 years of construc�on lending.

• Model Homes • Pre‐sold • Consumer Construc�on and Lots

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We Need Your Signature.

No Home Indoor Sprinkler System Mandate Minnesotans can’t afford this unnecessary and costly mandate.

SIGN THE PETITION

NO SPRINKLER MANDATE FOR MINNESOTA HOMEOWNERS

ION

Tell Governor Dayton and the MN Department of Labor & Industry to Reject This Harmful Home Sprinkler Mandate We are calling on Minnesotans to take action on this critical issue by signing the petition and urging Governor Dayton and the MN Department of Labor and Industry to reject this mandate. Please take action today, and expect more updates from us with opportunities to learn more and take further action in support of private property rights and common sense in housing policy.

Administrative Law Hearing Concludes

NEWS UPDATE

The Administrative Law Hearing to consider the Sprinkler Mandate in the update to the State Building Code (Ch 1309) took place in mid-December in St. Paul, with the Honorable Judge Eric Lipman presiding. A large crowd filled the Minnesota Room at the Department of Labor and Industry (DLI) building for the one-day hearing.

Leading the homebuilding industry’s testimony was attorney and BATC member Joe Springer, BAM Code Consultant Karen Linner, and NAHB Expert Steve Orlowski. Additionally, BATC Treasurer Chris Contreras provided testimony regarding regional housing trends which illustrate how this mandate will affect prospective homeowners.

Other industry testimony was given by Clay Dietrich from Moorhead, Dave Neison from Perham, and Joe Ranweiler from Brainerd.

With the ALJ hearing now complete, we will enter a post-hearing comment period until early January. Following this period, Judge Lipman will have thirty days to complete his recommendation on the reasonableness of the sprinkler mandate, which is expected in early February. His recommendation will be considered by DLI Commissioner Ken Peterson and Governor Dayton, who will release the final draft of the code later this Spring.

Visit www.NoSprinklerMandateMN.com to sign the petition to remove the home sprinkler mandate for newly built single-family homes from the proposed MN Building Code.

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insert dramatic music here

Join us for BATC’s

A Man And his

Bow

Tie

Annual Dinner meeting, 2014 Board Induction at our FIRST BE Event.

$59 Per Person Register at www.batc.org by Jan. 14th 5PM Registration & Networking 6PM Program & Dinner 7:30PM Evening Reception Hilton Minneapolis/Bloomington 3900 American Boulevard West Bloomington

jan. 21, 2014 THE BUILDING

INDUSTRY FORECAST with

AT THIS EVENT:

BE networked

BE informed +

Help us thank the out-going board members for their service, usher in the new board and celebrate the inauguration of 2014 BATC President, Shawn Nelson.

entertained

We’ve invited back nationally acclaimed economist and speaker Elliot Eisenberg as he presents the 2014 housing outlook

NATIONAL ECONOMIST

Elliot Eisenberg da da daa

BE

events

Business Exchange {BE} events that encourage networking with BATC Members

Sponsored by BATC.org

January 2014

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batc endorsed programs

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

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

Verizon Wireless

SuperAmerica Fleet Program

HBA Rebate

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

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

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

Contact NPP at 800-810-3909 or email customerservuce@mynpp.com

401k MEP Plan

Holiday Stationstores

Offer a first-rate 401K for your team at incredibly low rates with risk transferred to a third party administrator.

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

Contact Lars Froiland | 763-862-7800 lars@buildersinsgrp.com

www.HBA.rebates.com

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

Log onto www.batc.org to sign up

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

Corporate 4 General Liability Program The key to success in GL is to manage your risk.

Corporate 4’s Four Star program is an industryleading risk management program, leading to low rates.

Mike Hoppe or Larry Larson | 952-893-9218 | www.corporatefour.com llarson@corporatefour.com | mhoppe@corporatefour.com

www.batc.org

>m ember benefits > endorsed programs

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O-N-D_2013_laurie_Layout 1 10/3/13 10:58 AM Page 16

Sicora, Inc. Additions: Under $250,000

2013 BATC

REMODELER OF THE YEAR CN OSTROM & SON, INC.,

EXCELSIOR, MINNESOTA

54 years of remodeling and new-home construction.

Lucid Builders

Kuhl Design & Build

Total House: $250,000 - $500,000

Lower Level: Under $125,000

WE HID IT. Showcase Renovations, Inc. A nail is hidden somewhere in every issue of the Builders’ Kitchens: $50,000 - $75,000 Digest, includingawardthe one you’re holding right now.

winning

It could be anywhere – tucked into a photo or stuck in a drawing… in a margin… in the text body… even used as an exclamation point at the end of a headline. It resembles a real-life nail and looks something like this…

Remodels 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 (nonelectronic version). All other entries receive $20 in BATC Bucks. Entries must be received by February 15, 2013.

Found the nail? Email the page number of your guess to laurie@batc.org.

TreHus Builders, Inc.

CN Ostrom and Son Remodeling has been remodeling homes in Minneapolis and the western suburbs since 1954, and under the leadership of President Kathe Ostrom CR CAPS since 1994. The firm provides full remodeling services for their clients, whether a small bathroom Pratthouse of Pratt Homes orLen a whole renovafound the nail on page 16 tion.

Ostrom is committed of the Oct.-Dec. 2013 to providing every client issue of the with a positive and rewardBuilders’experience.

Digest ing remodeling "Kathe was always accessible and very good at communicating. We are thrilled with our new home!" say her clients, the Cohens.

Found It.

The Remodeler of the Year award is the most coveted honor given to a BATC remodeler. This award is bestowed upon the remodeling firm that has achieved the highest ratings on trust, communications, loyalty and ethics as judged by other BATC members with which they do business and by their clients.

Or, mail or faxSpecial to: BATC Nail Hunt, 2960 Centre Pointe Dr., Roseville, MN 55113 Fax: 651.697.7575.

16 BUILDERS’ DIGEST OCTOBER/DECEMBER 2013 NEWS EVERYDAY ON THE BLOG: WWW.BATC.ORG/BLOG

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Structural Precast Concrete For 2-Level Garages

Sport Court Under Garage

What Would You Put Under YOUR Garage?

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

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mortgage and lending outlook might be a blended loan in order to meet short and long-term goals.

David Welsch, Area Sales Manager, Waterstone Mortgage, sees many opportunties for builders as long as they understand the QM regulations and choose a lender who knows the landscape, is prepared for it and is eager to work with homebuilders. He says there are some great tools and products available. He predicts that regional banks will experience mortgage business growth in this period, especially since they don’t have the burden of legacy mortgage issues. Small mortgage companies may not have the portfolio ability or be prepared for QM, so they could withdraw from the market. Other lenders may want to stay at the 43 percent as the limit of their risk.

“Remember, QM doesn’t mean you can’t participate in other loans or make a good loan above 43%,” said Welsch. “These regulations aren’t as bad as you think they are, and are being phased in over time.” Product offerings are being released to help builders build and grow their businesses. “We are offering a suite of builder products and are eager to work with home builders.” Niche products can be attractive, such as the so-called “doctor loan” which improves the down payment picture for those professionals with few current resources but nearly assured healthy financial futures.

Previously, these loans were difficult to get and builders often self-funded with their own credit line with a bank.

from page 18

Another key aspect of the mortgage industry is the astuteness and education of its representatives. “My team is educated to work with home builders, so they are better in tune with the industry, regulatory landscape and opportunities for our builder partners. We also value appraisers who know the local market and sales information” says Welsch.

In terms of product offerings, Welsch is another mortgage expert who mentions the option of a one-time close (OTC), which, he says, empowers builders. The builders are able to use their money to grow their business rather than tie it up in a building project. It is approved at the front end, eliminates most of the homebuilders downside risk, and generally goes up to 80 percent LTV. The two-step construction to permanent mortgage can go up to 95 percent of loan. “Long term lock products are vehicles that are available to protect the builders inventory, too.”

The housing bubble, with its sloppy mortgage practices, resulted in an environment in which some lenders are pulling back and others are enthusiastically going forward, says Bell’s Raverty. “Good business practices are going to be key going forward to make mutually beneficial partnerships work between lenders, builders and homebuyers,” he said. “On a construction loan, for example, we look carefully at all three components for quality standards: the builder, the project itself and the consumer’s profile.”

Thursday, April 3, 2014

AWARD WINNING

REGISTER NOW WINNER NAHB’S

BEST INDUSTRY

HOME SHOW A PRODUCT AND SERVICE EXPO PRESENTED BY:

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at www.BATC.org

Booths Still Available To exhibit, contact Show Manager, Nicole Coon at 651-697-7571 or Nicole@BATC.org

“Good business practices are going to be key going forward to make mutually beneficial partnerships work between lenders, builders and homebuyers.”

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 Top 500 / Top 550

James Barton Design-Build was recently recognized in both Qualified Remodeler-Top 500 (#250) and Remodeling Magazine – Top 550 (#88).

This is the longest ongoing recognition program in the remodeling industry and recognize the top remodeling companies in the nation.

jbdb.biz

NOR-SON Takes Home Top Honors

Nor-Son, Inc. received two prestigious awards at the recent Construction Marketing Association (CMA).

Shannon Murphy was the winner of a 2013 CMA SUPERSTAR Award for Publicity and a CMA STAR Award for the category of Integrated Marketing Campaigns for her branding of Eskuche Design, a brand of Nor-Son, Inc.

nor-son.com

NEW PEOPLE & PROMOTIONS

Danyelle Pierquet Joins Landform

Congratulations to Danyelle Pierquet on her new position as Project Lead in the Planning and Infrastructure Studio of Landform. She brings over eight years of experience and a Master’s degree in Landscape Architecture from the University of Minnesota.

landform.net

Westwood’s New VP

Westwood Professional Services announced the appointments of National Land Sector Leader, Jason McCarty, PE and Power Sector Leader, Aaron Tippie to positions of Vice President. McCarty and Tippie are shareholders and board members.They will continue to serve in their existing roles, reporting directly to Westwood’s President/CEO.

westwoodps.com

Welcome to the Team

Shelby Allen, BATC’s Young Professional Committee, now serves Bell Mortgage’s Woodbury office as their Loan Officer Assistant. Congratulations, Shelby!

bellbanks.com

Movin’ On Up!

Congratulations to Sarah Dulong on her new role at Ron Clark Construction & Design. After starting out as the company’s receptionist in 1996, Sarah has continued to develop her role and responsibilities, and will continue to do so as their new Director of Marketing.

ronclark.com

President Pat

Effective October 3rd, Pat Hegseth became the President of the J.B. O’Meara Company. Pat brings 30+ years of experience across many facets of the millwork & building material industry and has an extensive knowledge of both the business and the professionals in our market.

jbomeara.com

Distinguished Service Award Winner

Congratulations to former longtime BATC accountant Carl Peterson on his Minnesota Society of Certified Public Accountants (MNCPA) Distinguished Service Award, the highest honor the MNCPA bestows upon members.

Carl, a 30-year MNCPA member, is a partner at Peterson, Peterson & Associates, PLC in Richfield.

www.ppaplc.com

CONDOLENCES Roger Fiehn

Last fall, Roger Fiehn of NAHB passed away. Roger was a past chairman of the National Sales and Marketing Council (NSMC) and Institute of Residential Marketing (IRM). He faithfully served on committees for many years and was an enthusiastic mentor to the next generation of leaders.

nahb.org

Joseph Knoblauch

Our sympathies are with John Knoblauch, Knoblauch Builders, and family over the passing of his father Joseph Knoblauch. He was 86.

Laverne Norcutt

Laverne Norcutt, father of Owen Norcutt, Norcutt Homes, passed away peacefully on November 3rd surrounded by family.

Susan Hendel

Our condolences to Rick Hendel for the loss of his mother in October.

Susan Hendel went home to be with the Lord after an eight month fight with pancreatic cancer.

BIG NEWS Bundle of Joy

Katie Stowell, Pulte Homes, is the proud mama of this little guy, Bennett Stowell!

Ribbon-Cutting Ceremony

Uponor celebrated the fifth expansion to its 230,000 sq. ft. corporate headquarters and manufacturing facility in Apple Valley, more than quadrupling its size since opening in 1990. Several political leaders were in attendance, including US Senator Amy Klobuchar and Congressman John Kline, for their ribbon-cutting ceremony.

uponor-usa.com

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

BATC.org

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lighting & home Miracle Mile Shopping Center 5023 Excelsior Boulevard St. Louis Park, MN 55416 phone: 952-926-5007 fax: 952-926-5013 www.filamentlighting.com filament@filamentlighting.com

© Filament Lighting. All Rights Reserved.

The Five Key Goals From BATC’s New Three-Year Strategic Plan

1

2

3

4

5

Become the premier brand for builders and remodelers

Be viewed as the “Go To” Resource to connect builders, remodelers and associates to their consumers, thereby helping to grow their business

Be the first and most trusted resource for members, legislators, regulators and other stakeholders

Become the leading housing industry advocate for BATC members

Be financially solid with diverse sources of revenue and strong financial controls and investments

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www.BATC.org

When quality building products, right price, expert people and great service come together. That’s Synergy.

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