Builders' Digest | Jul-Sep 2013

THIS ISSUE SPONSORED BY:

JULY - SEPT 2013

THE MAGAZINE FOR BATC MEMBERS

SPECIAL HSECTION O M E I N D O O R SPRINKLERS S T R E E T IMPROVEMENT PA R K F E E S D E S I G N PROFESSIONAL LICENSURE R A D O N AWARENESS S TATUTE OF R E P O S E INDEMNIFI C A T I O N E X T E N D PRODUCT STEWARDSHIP PAINT TAX BILL

2013 LEGISLATIVE SESSION

REVIEW

INSIDE

CHEVROLET BUSINESS ELITE DEALERS

ELITE SOLUTIONS. ELITE SELECTION. ELITE SERVICE.

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To find out what a Chevrolet Business Elite Dealer can do for your business, call or contact one of our experts.

SUBURBAN CHEVROLET Darin Trees 952-913-0036 dtrees@suburbanchev.com

FRIENDLY CHEVROLET

LUTHER BROOKDALE CHEVROLET

MERIT CHEVROLET

WALSER CHEVROLET

Howie Lee (763) 786-6100 howielee@friendlychev.com

Kristal Bechtold 763-222-1913 kristal.bechtold@lutherbrookdalechev.com

Ron Hogan 651-255-8295 rhogan@meritchev.com

Scott Miller (866) 229-3091 smiller@walserchev.com

now greener than ever

For over 50 years our family business has been powered by sons and daughters. And now, with the installation of more than 400 solar panels and reflectors on the roof of our Saint Paul headquarters, we’re benefiting from a good deal of SUN power. In fact, up to 20% of our electricity now comes from Mother Nature. This brings us nice, warm feelings.

Rest assured that Minnesota’s appliance specialists now recycle all packaging and replaced appliances responsibly to help ensure a brighter tomorrow for future sons and daughters.

&DOO XV WRGD\ IRU VSHFLDO SULFLQJ DQG ILQDQFLQJ (651) 726-1697 or warnersstellian.com/trade-partners

0DSOH *URYH á &RRQ 5DSLGV á $SSOH 9DOOH\ á (GLQD 6W 3DXO á :RRGEXU\ á 0SOV 2XWOHW á 5RFKHVWHU

a Minnesota family-owned business

table of contents

on the cover BATC 2013 President, Pamela Belz, Senior Housing Partners, looks perfectly at home in DC as she heads in to a meeting with Third District Representative Erik Paulsen.

4 Executive Director Letter 6 A Word From Our President 8 News

18 BATC Board Q&A

74 BATC Foundation

24 PROFILE:

78 MN Green Path

Housing First Chair, Bill Burgess

62 Parade of HomesSM

10 Events Calendar

64 Welcome New Members

12 COMPANY PROFILE:

66 Member Spike

Gerhards

14 Remodelers Corner

SPECIAL SECTION: PAGES 25-60

2013 LEGISLATIVE SESSION REVIEW

69 Get Smart About Your Insurance Risk Compliance

Advertising Directory Andersen Windows . . . . . . . . . . . . . . . . . . . . . . . .2, 3 Bank of America . . . . . . . . . . . . . . . . . . . . . . . . . . . .71 Brock White Company . . . . . . . . . . . . . . . . . . . . . . .81 Brush Masters . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10 CenterPoint Energy . . . . . . . . . . . . . . . . . . . . . . . . .73 Corporate 4 Insurance Agency Inc. . . . . . . . . . . . . .69 ECCO Midwest, Inc. . . . . . . . . . . . . . . . . . . . . . . . . .15 Erosion Works . . . . . . . . . . . . . . . . . . . . . . . . . . . . .61 Friendly Chevrolet . . . . . . . . . . . . .Inside Front Cover Hedberg Landscape & Masonry Supplies . . . . . . .19 IDC-Automatic . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11 In-Focus Systems . . . . . . . . . . . . . .Inside Back Cover Installed Building Solutions . . . . . . . . . . . . . . . . . .77 J.B. O'Meara Company . . . . . . . . . . . . . . . . . . . . . .75 JL Schwieters Bldg. Supply/Const., Inc. . . . . . . . . .8 J&W Asphalt, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . .70 James Hardie Building Products . . . . . . . . . . . . . .84 Jeff Belzers Chevrolet . . . . . . . . . .Inside Front Cover Lake Elmo Bank . . . . . . . . . . . . . . . . . . . . . . . . . . . .65 Lampert Lumber . . . . . . . . . . . . . . . . . . . . . . . . . . . .17 NEWS EVERYDAY ON THE BLOG: WWW.BATC.ORG/BLOG

82 Member News

Luther Brookdale Chevrolet . . . . .Inside Front Cover Lyman Lumber Co. . . . . . . . . . . . . . . . . . . . . . . . . . .23 Marvin Windows and Doors . . . . . . . . . . . . . . . . . . .7 Merit Chevrolet . . . . . . . . . . . . . . .Inside Front Cover Minnesota Department of Health . . . . . . . . . . . . . .5 Molin Concrete Products Company . . . . . . . . . . . .65 NAHB . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .61 Orion Home Systems . . . . . . . . . . . . . . . . . . . . . . . .81 ProBuild . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21 Residential Warranty Company, LLC . . . . . . . . . . .65 Schwieters Companies, Inc. . . . . . . . . . . . . . . . . . .67 Shaw/Stewart Lumber Co. . . . . . . . . . . . . . . . . . . .83 Southview Design . . . . . . . . . . . . . . . . . . . . . . . . . .63 Stein Insurance Agency . . . . . . . . . . . . . . . . . . . . . .83 Suburban Chevrolet . . . . . . . . . . . .Inside Front Cover Synergy Products, LLC . . . . . . . . . . . . . . . .Back Cover Thermo-Tech Windows, Inc. . . . . . . . . . . . . . . . . . .79 Trimpac, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .61 Walser Chevrolet . . . . . . . . . . . . . .Inside Front Cover Warners' Stellian Co., Inc. . . . . . . . . . . . . . . . . . . . . .1 Wells Fargo Home Mortgage . . . . . . . . . . . . . . . . . .9

JULY/SEPTEMBER 2013 BUILDERS’ DIGEST 3

|| EXECUTIVE

DIRECTOR LETTER

IT’S A GAME CHANGER

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

David Siegel BATC Executive Director

Read more about the MN Green Path/NorthstarMLS Winning Combination on page 78.

When a single event or decision has far-reaching and powerful implications, we call it a game changer.

Though the phrase has become cliché, the world of energy efficiency and green certification in Minnesota truly experienced a game changer in early June when the NorthStarMLS went live with two new fields allowing for a Home Energy Rating System (HERS) score and green certification identification. The decision by NorthStarMLS was the result of outreach by BATC, and suggests a bright future for BATC’s Green Path Program and our Home Performance Report (HPR).

We want to express our strong thanks and appreciation to John Mosey, CEO of the NorthStarMLS, his Board of Directors, his staff team, and the Realtor® Associations for their support in this new effort to provide consumers with valuable information about the performance of their new or newly remodeled home. On the BATC side, recognition is due to our Green Path Committee, our Public Policy Director James Vagle, who spearheads our Green Path program, Dawnita Parmely, our Creative Services Director who designed our HPR and Wendy Danks, our Marketing and Communications Director, who has integrated

4 BUILDERS’ DIGEST JULY/SEPTEMBER 2013

Green Path deeply into our Parade of HomesSM and Remodelers Showcase.® BATC has been engaged in the green building space for some five years, the last two with the Green Path program, and recognition on NorthStarMLS of HERS and green certification has long been sought. NorthStarMLS is one of the largest MLS services in the country and its acknowledgement of the green space in housing truly is a game changer in the legitimacy it provides to green building programs and the data that we can mine from MLS regarding consumer behavior. In other markets in which the MLS denotes green certification, certified homes tend to sell faster and at a premium. This also positions our market to reach the Millennial buyer, which research shows has a preference for energy efficient and sustainable housing.

If you are not yet familiar with our Green Path program, now is the time to consider putting the homes you build on the Green Path through energy tested or advanced and master certification options. It’s one clear way to demonstrate to your customers the benefits of new and newly remodeled homes against existing housing stock. In fact, we think it’s a game changer.

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…

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 Charlie Bradburn, count.

Automated Building When Components memfound the nail on page 52 bers of the April-June 2013 issue of the find the Builders’ Digest nail, they can email or fax a note to the Builders Association of the Twin Cities, telling what page it’s on. Participants will be entered into a drawing to win a business-card size ad in this publication or a set of member labels (non-electronic version).

All other entries receive $20 in BATC Bucks. Entries must be received by August 15, 2013.

Found It.

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

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

NEWS EVERYDAY ON THE BLOG: WWW.BATC.ORG/BLOG

Does your house suck?

This house sucks

This house doesn’t

Can you tell the difference? We Can’t.

Build to the Gold Standard for Radon Resistant New Construction so the new homes you build don’t suck in radon*

www.HEALTH.ST HEALTH.STATE.MN.US/GOLDSTANDARD To order a free radon resistant toolkit contact: Tom Standke - 651-201-5209 tom.standke@state.mn.us * Radon is a soil gas that causes lung cancer and 48% of Minnesota homes have radon levels above the federal action level.

|| A

WORD FROM OUR PRESIDENT

WE CAN NOW BREATHE A SIGH OF RELIEF

Pamela Belz Senior Housing Partners

GOOD ON YOU

Congratulations to our top lobbyist Peter Coyle and the Larkin Hoffman Team BATC has worked with Pete Coyle as our chief lobbyist for a number of years, so when we learned his firm won the first ever Lobbyist of the Year at the fourth annual Leaders in Public Policy Awards, we were thrilled. The Awards are sponsored

by Capitol Report and Politics in Minnesota, and recognize individuals and organizations that have made significant contributions toward Minnesota’s political, public policy or civic environment during the 2013 session. The honor recognizes that Larkin Hoffman’s lobbying team “had the most successful year for their clients at the Capitol in 2013.”

We are very proud of our team from Larkin Hoffman, and wholeheartedly concur with their selection as top lobbyists. Thanks to their hard work, we were able to turn what could have been a disastrous legislative session into one with a number of successes. Read more about that in our special Legislative Session Wrap inside this issue of Builders’ Digest.

You can send your congratulations to Pete and the team at pcoyle@larkinhoffman.com.

6 BUILDERS’ DIGEST JULY/SEPTEMBER 2013

Fellow Members, We can breathe a sigh of relief at the closing of the legislative session. In short, it was brutal.

Our team—James Vagle, Pete Coyle, and Julie Perrus along with BAM, did a great job.

Although we have some solid pro-housing legislators who gave their best, the current political makeup of the House, Senate and Governor’s office is not friendly enough to housing. BATC played incredible defense and was successful in defeating or revising initiatives that would have harmed us all, such as excessive park fees, new street improvement districts, mandatory radon testing, insurance issues with sub-contractors, environmental stewardship requirements for paint and finish products, and of course the mammoth proposal to tax B2B services like design, legal, payroll and real estate commissions. And although banning the Home Indoor Sprinkler System Mandate was broadly supported by both parties, again this year the Governor promised a veto.

The next step for the sprinkler initiative will be the Administrative Law Judge (ALJ) process, which will begin when the Department of Labor and Industry releases the SONAR (Statement of Need and Reasonableness) on the new codes sometime this summer.

This has been an extremely long and frustrating journey. The Governor said to let the process work, but again and again this stops at his desk. The following provides a brief history: • Our legislature has twice passed a bill banning the mandate and twice the Governor vetoed.

• Language supported by BATC was twice amended onto omnibus bills receiving broad bi-partisan support, but under the threat of a Governor’s veto, it was removed from both bills in conference committee reconciliation.

• In the code development process the Code Advisory Committee twice voted no by large margins.

• 40 of 42 other states have banned the mandate; only California has adopted in

full. Minnesota is one of eight who still haven’t resolved this issue.

• The public overwhelmingly opposes the Home Indoor Sprinkler System Mandate for all homes in two surveys taken over the past two years.

• At one point the Governor appeared to be willing to discuss a compromise from the two sides, then the next day stepped away.

• It would seem the process has worked and the people have spoken but the Governor has not heard.

This unfortunately underscores the reason that political activity is an essential element of advocacy efforts. Advocacy = lobbying + research + legal action + political fundraising, and they are all equally important components. One element of political activity is participation in support of candidates for election. BATC’s Housing First independent expenditure fund is a crucial element. I am happy to say BATC has a blue ribbon team on Housing First. They are true champions of our industry and they are reaching out to others to contribute. We are growing Housing First into a major entity to support pro-housing candidates in this next election cycle. Our new dues structure will ensure our advocacy efforts blossom, but contributions are needed to boost us in the coming election cycle.

Other groups like environmental interests, nursing, realtors®, and local governments have all exceeded housing in political presence and fundraising activity. The auto dealers and liquor lobby have excelled in this for decades. They are the first call legislators make when legislative issues affecting their interests are considered.

We want to always be the first call legislators make when housing interests arise, not cities, fire chiefs and environmental groups.

This will happen through our continued commitment to advocacy, partnership building, and our growing Housing First political activity. Please watch for and support Housing First initiatives and functions.

There is much to be done, back to work!

NEWS EVERYDAY ON THE BLOG: WWW.BATC.ORG/BLOG

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

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

by Shaw/Stewart 645 Johnson St. NE Minneapolis 612-331-3128 MDGbySS.com

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

Automated Building ComponentsMillwork Division Chanhassen 952-937-9060 ABCMillwork.com

Custom Millwork, Inc. 2298 N 2nd St. North Saint Paul 651-770-2356 CustomMillworkInc.com

Fullerton-The Builder’s Choice Ellsworth - 715-273-5032 Glencoe - 320-864-5103 Osceola - 715-294-2000 Watertown - 952-955-2237 FullertonLBR.com

Whether it’s remodeling or replacement, Marvin® has a solution. The broadest range of products combined with the most energy efficient options available means there’s no better partner for exceeding your clients’ needs. It’s all part of four generations of innovation and craftsmanship backed by an unwavering commitment to service and support from local retailers. Get a closer look at our extraordinary range of replacement and remodeling options with our new, updated catalog. Only at pros.myMarvin.com/catalog

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.

ENERGY STAR® and the ENERGY STAR certification mark are registered U.S. marks.

Executive Director David Siegel

|| NEWS

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

Rebates Anyone?

BAM’s Member Rebate Program helped BATC members earn $8,898.00 in 2012 (averaging $988.66 each) just by completing easy (no receipts required), quarterly online forms about purchased materials from 40 national manufacturers.

Learn more online at hbarebates.com (click on the BAM link).

BATC Open Golf Tournament Full, Dinner Spots Remain The BATC Open Golf Tournament set for August 6 at Prestwick Golf Club is SOLD OUT, but the dinner-only option is still available at just $45.

Register at www.BATC.org

ParadeofHomes.org Upgrades Available Showcase your company, products and services with photos, testimonials, videos and more to the huge ParadeofHomes.org audience. See page 22 for more details.

BATC Members Climb Capitol Hill In June more than a dozen BATC members joined over 750 builders from across the nation in Washington D.C. for the annual National

8 BUILDERS’ DIGEST JULY/SEPTEMBER 2013

Graphic Designer Laurie Spartz

Did you miss the BATC Golf Tournament?

Creative Services Coordinator Casey Hafner

Don’t fret, the BATC FOUNDATION GOLF TOURNAMENT is just around the corner.

Registration is now open for the 1st Annual Foundation Golf Tournament and it’s filling fast! Don’t golf? Come just for the social hour and dinner.

Scheduled for Tuesday, September 24 at the Legends Golf Club in Prior Lake. Recognized by Golf Digest as “Best in State” and “Top 10 Best New Upscale Courses in America,” Legends is an 18-hole championship golf course nestled in a wooded, yet marshy area on the border of Lakeville and Prior Lake.

This golf tournament will benefit your very own BATC Foundation! Come out, support a great cause and have a great afternoon of golf. Contest and Tee sponsorships are available.

Questions? Contact Perri Graham, Executive Director of the BATC Foundation at perri@batc.org or (651)697-7563.

Accounting Manager Ron DeCoux Administrative & Membership Assistant Heather Litchy Advertising Sales Kori Meewes Brad Meewes BATC Foundation Executive Director Perri Graham

Marketing & Events Manager Nicole Coon

Director of Administrative Services Maxine Miller

Marketing Assistant Christina Martin

Director of Public Policy & MN Green Path Executive Director James Vagle Education Coordinator Beth Graham

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

EXECUTIVE BOARD President Pamela Belz Senior Housing Partners Builder Vice President Shawn Nelson New Spaces Associate Vice President Kerry Mulcrone Kerry & Co.

Note: This is a BATC "BONUS BUCK" event, worth a staggering $100 (in BATC Bucks).

Association of Home Builders (NAHB) Legislative Conference.

They were there to urge lawmakers to support policies that will keep the housing recovery moving forward and increase housing opportunities for all Americans. BATC members met with the elected officials and/or staff from all of our congressional and US Senate offices, including strong BATC supporter Rep. Eric Paulsen (R) from Minnesota’s Third Congressional District.

Communications Coordinator Katy Ervin

Past Associate Vice President John Zirbes Lyman Lumber Co. Secretary Daryl Doehr Marvin Windows and Doors Treasurer Chris Contreras Ryland Homes

Immediate Past President Curt Christensen Lee Lyn Construction, LLC Past President Council Representative Doug Nelson Retired

BOARD OF DIRECTORS BATC RemodelersSM Jolynn Johnson Crystal Kitchen Center, Inc. Large Volume Builders Marv McDaris Pulte Homes of Minnesota, LLC Membership Pattie Martin Glowing Hearth & Home

Parade of HomesSM Paul Donnay Donnay Homes, Inc.

National Directors Kathe Ostrom C.N. Ostrom & Son

Public Policy Jason McCarty Westwood Professional Services, Inc.

At-Large Member Todd Polifka Brush Masters

Small Volume Builders Gary Kraemer John Kraemer & Sons Inc.

At-Large Member Brett Remme In-Focus Systems

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

NEWS EVERYDAY ON THE BLOG: WWW.BATC.ORG/BLOG

Realizing a newly built dream Our menu of simplified new construction financing is built to help accommodate the needs of today’s homebuyers. With a dedication to excellent customer service, we can help you find a program to meet your needs. ƌɄ Builder Best® program – Protect your interest rates while you build your home ƌɄɄɄTemporary monthly payment reductions – Purchase a reduced monthly payment for the early years of your loan ƌɄɄɄFHA financing – Down payments as low as 3.5% for qualified borrowers ƌɄɄɄDownpayment Assistance Programs (DAPs), Mortgage Revenue Bond (BOND) and Mortgage Credit Certificate (MCC) – Down payment and closing cost help, lower interest rates, and/or additional tax benefits ƌɄɄɄCondominium financing – Purchase and refinance programs for low- and high-rise condominiums, with high-rise (over four stories) financing available up to $2 million ƌɄɄɄCustom-Home Construction Financing program - Financing for the construction of a home, plus a variety of permanent “end loan” financing products, to serve your specific needs

Call today for more information.

James Fisher Regional Builder, Sales Manager 651-430-9930 james.fisher@wellsfargo.com Wells Fargo Home Mortgage is a division of Wells Fargo Bank, N.A. ©2012 Wells Fargo Bank, N.A. All rights reserved. NMLSR ID 399801.

AS967538 3/13-6/13

|| EVENTS

COMING

UP Register at www.batc.org

JULY BATC Boat Cruise Hosted by BATC RemodelersSM Council July 18, 2013 Bayside Grill on Lake Minnetonka Nothing says summer like a jaunt aboard "The Queen of Excelsior."

Register at www.batc.org

find it all at www.batc.org July Member Orientation July 25, 2013 BATC Board Room Whether you are a NEW member or have been around 20+ years, stop by and see what BATC can offer you and your company!

Register at www.batc.org

BATC Seminar Room Join us as we launch our 2014 sponsorship opportunities and thank our 2013 sponsors over lunch.

Register with Heather at 651-6977573 or heather@batc.org

BATC Clay Shoot

AUGUST BATC Open Golf Tournament August 6, 2013 Prestwick Golf Club, Woodbury Our day of balls, birdies and builders is SOLD OUT but dinner reservations are still available.

Register at www.batc.org

SEPT. 2013 Sponsorship Luncheon September 10, 2013

10 BUILDERS’ DIGEST JULY/SEPTEMBER 2013

Brought to you by the Young Professionals September 17, 2013 Minnesota Horse & Hunt Club, Prior Lake BATC's first ever Clay Shoot.

Fabulous prizes and buffet dinner.

Register at www.batc.org

BATC Foundation Golf Tournament September 24, 2013 Legends Golf Club The BATC Foundation’s first golf tournament.

A BATC Bonus Buck event!

Register at www.batc.org

OCT. Member Orientation October 15, 2013 BATC Board Room Whether you are a NEW member or have been around 20+ years, stop by and see what BATC can offer you and your company!

Register at www.batc.org

Houzz Event October 15, 2013 Earle Brown Heritage Center, Minneapolis Hear from Houzz directly how to benefit from one of housings’ hottest sites.

Watch for more info. soon.

Awards of Excellence Gala October 24, 2013 Lafayette Club Join us as we honor the best of the best in the homebuilding industry.

More info. at www.batc.org

NEWS EVERYDAY ON THE BLOG: WWW.BATC.ORG/BLOG

ADVERTORIAL

ONCE-IN-ALIFETIME EXPERIENCE

THE KITCHEN AND BATH STORE Anyone in the business of designing quality kitchens and baths will know that a state-of-the-art showroom — with quality products, expert staff and a streamlined selection process — can make a big difference. The staff at Gerhards: The Kitchen and Bath Store (formally Kitchen Craft) are expertly trained to handle every kitchen and bath need from start to finish so that the experience is truly one of a kind.

12 BUILDERS’ DIGEST JULY/SEPTEMBER 2013

“Our on-site design team, big screen visualizing room and interactive display vignettes make every Gerhards experience easy and enjoyable. For many of our customers, remodeling or designing a kitchen or bath is a once in a lifetime experience so we work hard to make every trip to our showroom an unforgettable one,” said Gerhards Store Manager, Cindy Thomes.

Our Parent Company, First Supply LLC,

Right: The Gerhards conference room features an interactive 63” TV display system so that customers can easily visualize their design options.

Below: Shower vignette featuring dozens of working showerheads and body sprays from Gerhards' top brands

located in Madison, Wisconsin, is a fifth generation family business.

A solid track record and years of experience working with builders, remodelers, property managers, plumbers and the retail public has made the company a standout in their field.

First Supply has made a huge commitment to the Twin Cities market with a 50,000-square-foot distribution center in South St Paul, along with one of the first independently owned Kohler stores in Edina, and now the purchase of the Gerhards showroom from Kitchen Craft last February in Minnetonka.

The experienced staff at Gerhards will walk you through the selection process for kitchen cabinets, countertops and bath products with top brands such as Kohler, Delta and Moen to name a few. We sell tile, stone, hardware, lights and have an interior designer on our staff. We are a full service showroom that can facilitate the interior process of your remodeling or new construction project from start to finish. The stunning showroom, however, can speak for itself.

Inside the 5,000 square foot Minnetonka location, customers will be impressed by six stunning cabinet displays, a wine room, five bath vignettes and custom entertainment unit. Most impressive, however, is the working shower vignette featuring dozens of work-

ing showerheads and body sprays.

It won’t be long before customers start singing praises for the shower selections, including the tech savvy Kohler Moxie Showerhead + Wireless Speaker system.

This blue tooth device will deliver seven hours of wireless music into your showerhead, or remove it and you can take it on the go.

In line with the company’s focus on interactive displays, customers can visualize the look of their project on a 63-inch TV in the company’s conference room.

Gerhards has the ability to display any design concept on their big screen so that customers can really visualize the outcome, as well as manipulate dozens of design options.

Stop by and see this beautiful showroom. You will be impressed.

13540 Wayzata Blvd.

Minnetonka, MN 55305 952.544.0458

NEWS EVERYDAY ON THE BLOG: WWW.BATC.ORG/BLOG

Gerhards is open Monday through Friday from 9-5, Thursdays from 9-8 and Saturdays from 10-2, or for your convenience, by appointment. Visit their Twin Cities location at 13540 Wayzata Boulevard in Minnetonka or one of their other twelve locations throughout the Midwest.

Mon-Fri Sat Sun

9am - 5pm 10am - 2pm Closed

JULY/SEPTEMBER 2013 BUILDERS’ DIGEST 13

|| REMODELERS

CORNER

REMODELING PROJECT SPENDING PREDICTED TO RISE Spending on home improvement and remodeling projects got off to a slow start this year, but that slowdown isn’t anticipated to last long. The LIRA (Leading Indicator of Remodeling Activity) from the Harvard Joint Center for Housing Studies expects spending by homeowners on improvement projects to accelerate as the year progresses.

On top of the almost 10 percent growth reflected in U.S. Census Bureau figures for 2012, the LIRA projects strong gains in homeowner remodeling spending continuing throughout 2013, with some moderation in the pace of growth toward the end of the year.

“Existing home sales were up almost nine percent last year, and house prices are increasing in most markets across the country,” says Eric S. Belsky, managing director of Harvard’s Joint Center for Housing.

“This has increased the home equity

JOIN THE BATC REMODELERS COUNCIL as we share remodeling tips and ideas in each issue in the Builders’ Digest. Don’t miss our roundtables in person, either.

Watch BATC.org for details on the OCTOBER 15TH REMODELERS ROUNDTABLE & HOUZZ EVENT

levels for most homeowners, encouraging them to reinvest in their homes.”

NAHB also mentioned the downturn in the May 9th Eye on the Economy. They noted that the downturn came on the heels of strong growth through most of 2012.

Both the Joint Center and NAHB agreed on the probable culprit for the slip. “One possible explanation for remodeling’s slow start is the general challenges faced by builders and remodelers from rising building material costs and the availability of workers,” noted NAHB. “The strong growth that we’ve seen recently is putting pressure on the current capacity of the home improvement industry,” says Kermit Baker, director of the Remodeling Futures Program at the Joint Center.

“Contractors and subcontractors are having more difficulty finding skilled labor, and building materials costs are

photo gallery

1

unusually volatile for this stage of a recovery.”

While the national news is a bit of a downer, the good news is that the Joint Center is anticipating a 20 percent increase in remodeling spending by the end of 2013.

The other good news is that BATC’s remodelers are incredibly upbeat. The Parade of Homes Remodelers Showcase® remodelers reported good spring traffic, with Jolynn Johnson, Crystal Kitchen Center remarking it was the “best event in 18 years.”

“What a fabulous showcase! The traffic was steady and people were great. We had many quality conversations and great feedback. People seem eager to update their homes in 2013,” said Becky Zweber, Novare Renovation & Design.

The fall Remodelers Showcase is set for September 27-29. We hope to see you all there.

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June Remodelers Roundtable JUNE 18, 2013 - Programmatic Media and Digital Trends was the topic of the most recent Remodelers Roundtable. Simply stated programmatic buying is the automated purchase of data-driven, tarSponsored by: geted ads. Attendees received an overview of how their ads could be delivered to specific users based on the user’s web browsing history.

14 BUILDERS’ DIGEST JULY/SEPTEMBER 2013

June Remodelers Roundtable: 1. Star Tribune online gurus Tim Haley and Marie Ross (not shown) explained the newest developments in online targeting. 2. First row (left to right:) Jolynn Johnson, Crystal Kitchen Center, Inc.; Samantha Grose, JP & Co.; Ron Sonnek, Sicora, Inc.; and Bryan Ogle, Ogle Construction, Maintenance, Services, Inc.; Second Row (left to right): Kimberly Bednar, Brush Masters and James Julkowski, Julkowski, Inc. NEWS EVERYDAY ON THE BLOG: WWW.BATC.ORG/BLOG

Asbestos

Corporate Facilities

Industrial / Warehouse Warehouse

Multi-Tenant Multi-T Tenant e Housing

Federal, State, & Local

Educational Institutions

Hospitals / Medical Facilities

D.O.T T..

Airports / D.O.T.

Correctional Facilities

Lead

Mold

Sales / Project Management

Dave Sobaski $3OBASKI

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Je Dahl *$AHL %CCO-IDWEST COM

Andy Hines !(INES %CCO-IDWEST COM

Administration

Jennifer Hilsgen *(ILSGEN

%CCO-IDWEST COM

Brenda Dahl "$AHL %CCO-IDWEST COM Warehouse W arehouse

Retail Establishments

Steve McMorrow 7AREHOUSE

%CCO-IDWEST COM

Residential

www.EccoMidwest.com

Licensed

Bonded

Insured

Don’t be left on shore!

|| BATC

BOARD OF DIRECTORS

Q&A Why did you become involved with BATC? JOLYNN: Crystal Kitchen Center first became involved with BATC to be a part of the Remodelers Showcase. We’ve since been members of BATC for over 18 years. I joined BATC’s Remodelers Council around 2006. My philosophy is that if I’m going to be a part of something I need to be truly involved, and not just sit on the sidelines. By being a part of the Council, I get information that I might not otherwise be aware of for a long time. I also get to help make the Council better.

How has your BATC membership added value to your business?

JOLYNN: With the knowledge that I obtain it helps me to be aware of what is happening (e.g.: lead laws) in the industry, which alternately helps the bottom line. Being in the Remodelers Showcase helps find future clients and the advantage of letting them see our work in a non-threatening environment.

Getting to know other remodelers, builders and associates helps with networking and developing friends for life What about your job inspires you the most?

JOLYNN: Working on a great/fun design and making my clients happy!

remodeling or building new, why do you prefer remodeling?

JOLYNN: Remodeling is green, there are more challenges, and if you start with really good bones you can make any space even better.

Name one thing that’s on your bucket list?

JOLYNN: Retirement!!! Traveling will always be something that I look forward to.

What was the best advice you’ve ever received or given?

JOLYNN: Nineteen years ago as the new owner of CKC, Jeff Hammer, the owner of Crystal Cabinet Works in Princeton, told me “you can’t move mountains by yourself” and “it’s only money.”

Several years later I got to say those same words back to him!

What’s your favorite app?

JOLYNN: You’re talking to someone who is computer illiterate! I had to look at my iPad to even answer this question! On vacation I use my currency app. On a day-to-day basis I enjoy the Mahjong solitaire matching game. I couldn’t live without my phone though. I just love being so connected (well, most the time anyway).

What’s your favorite room in the house to remodel?

JOLYNN: Definitely the Kitchen!

I’ve been designing and remodeling kitchens for the past 30 years and I still find it exciting. No two people are the same and no two kitchens are the same, so it’s always fun.

When it comes to

18 BUILDERS’ DIGEST JULY/SEPTEMBER 2013

JOLYNN JOHNSON

GARY KRAEMER

Crystal Kitchen Center, Inc. BATC Remodelers Council Chair

President, John Kraemer & Sons, Inc. Small Volume Builders Committee Chair

Why did you first become involved with BATC? GARY: I have always been impressed with and appreciative of the builders, associates and staff members who devote so much time and energy into making this one of the best trade associations in the state. Having been involved in the building business my entire life I feel that it was time for me to give back and do my part to improve this great industry. We joined BATC in 1984 and have been a Member every year since.

What is your role as Chair of BATC’s Small Volume Builders Committee?

GARY: Like much of the work at BATC, the staff does most of the “heavy lifting.” I am there to run the committee meetings and get feedback and opinions from other Small Volume Builders with regard to every aspect of Association work and interaction. As a member of the BATC Board, I help bring forward the opinions and agenda of the Small Volume Builders.

How has your BATC membership added value to your business?

GARY: Everyone knows that there is strength in numbers. We are in one of the most competitive industries on earth, yet by working together through BATC, builders and associates have a strong voice at the State Capitol.

We have the first and best Parade of Homes in the nation, and we have access to great continuing education. The list goes on and on. Our company gains a tremendous amount of added value and will always be a part of BATC. What about your job inspires you the most?

GARY: The interaction with people, and being part of a team! I love working closely with our clients, associates, architects, interior designers and everyone involved on our team. I coached baseball for the last 24 summers and I love leading and being part of a team that always gives their best and has a chance to win. I am inspired to give my best every day and never let my teammates down.

What’s the biggest advantage of being a small volume builder?

GARY: Having the time to get to know and serve our great clients.

Many of my good friends have built or remodeled with us and many clients that I did not know before working with them have become good friends.

What was the best advice you’ve ever received or given?

GARY:“Hard work beats talent when talent doesn’t work hard!” I also like “Nothing beats fun for a good time.”

Name one thing that’s on your bucket list.

GARY: I would love to go into outer space and orbit the earth! I would also like to see the Vikings win a Super Bowl, but that is a little farther fetched.

What’s the farthest place you’ve traveled to?

GARY: So far it is Rome, Italy. My wife and I love to travel and are hoping to see Australia and New Zealand some day.

What one technological device you couldn’t live without?

GARY: My iPhone! I had it surgically attached to my hand and it would be painful to remove!

NEWS EVERYDAY ON THE BLOG: WWW.BATC.ORG/BLOG

photo gallery 1

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ReBuild Happy Hour APRIL 9, 2013 - BATC's Young Professionals Committee and the Minneapolis Area Association of Realtors' (MAAR) YoPro Group joined forces over happy hour at Mingle Cabinetry Furnishings Design to discuss the current marketplace and address what's to come for both industries.

Presented by:

Panel of Experts: David Siegel (BATC), Dan Peinovich (Bell Mortgage), Cameron Woolley (Ryland Homes), Mark Allen (MAAR), Casey Van Winkle (First Class Mortgage), and John Canny (RE/MAX Advantage Plus).

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Hosted at Mingle’s stunning showroom

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Exclusive Sponsor:

ReBuild Happy Hour, hosted by Mingle: (from left to right, top to bottom) 1 . Kelly Aitkin with Deb Earl, BATC 2. Adam Ohlgart, Creative Lighting, with Brett Remme, In-Focus Systems 3. Shelby Allen, Gary Insurancenter and Mark Searles, Admit One 4. Kelly Davert (at right), Mingle, welcomed attendees and introduced panelists Mark Allen, David Siegel, Dan Peinovich, Camaron Wooley and Casey Van Winkle 5. David Siegel, BATC 6. Panelists Casey Van Winkle and Mark Allen 7. YPs paid attention and asked a lot of questions 8. Just one of the cool vignettes at Mingle 9. Dan Peinovich and Cameron Wooley 10. This kitchen display showed off white cabinetry beautifully 11. Small-space laundry genius

20 BUILDERS’ DIGEST JULY/SEPTEMBER 2013

NEWS EVERYDAY ON THE BLOG: WWW.BATC.ORG/BLOG

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.

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UPGRADE

to be part of our growing resource www.paradeofhomes.org Do you Sell Direct to Consumers?

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Upgrade your company “business card” listing on ParadeofHomes.org Products/Services search with a Premium Company Listing for just $250 per year.

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STATS ST TATS

2011

2012

2013 JJAN AN 1 - MAY MA AY Y 31

191,000

250,000

198,187

VISITS

VISITS

VISITS

131,225

172,000

137,470

UNIQUE VISITS

UNIQUE VISITS

UNIQUE VISITS

1.3 MILLION

1.4 MILLION

1 MILLION

PAGE P AGE AG VIEWS

PAGE P AGE VIEWS

PAGE P AGE VIEWS

It’s easy to showcase your company, products and services with photos, testimonials, videos and more to the huge ParadeofHomes.org audience.

You can do it all online and pay by credit card, too.

Please contact Casey Hafner (casey@batc.org, 651-697-7569) for your user name and password.

Questions, contact Wendy Danks (wendy@batc.org, 651-697-7565) All BATC members receive a Business Card listing with name, address and phone number at no charge.

22 BUILDERS’ DIGEST JULY/SEPTEMBER 2013

NEWS EVERYDAY ON THE BLOG: WWW.BATC.ORG/BLOG

|| PROFILE

OUR SUPER PAC’S SUPER CHAIR Meet Bill Burgess

I THINK IT’S IMPORTANT FOR US TO GET ORGANIZED, TO HAVE A VOICE, AND TO BE ABLE TO DO THAT, YOU HAVE TO HAVE A SUPER PAC. WE HAVE TO BE ABLE TO RAISE FUNDS TO SUPPORT LEGISLATORS THAT SUPPORT US.

Housing First Chair and President, Lennar Written by Wendy Danks

As division president for the State’s largest home building firm, Lennar, Bill Burgess faces challenges and succeeds in getting tough jobs done everyday. So when outgoing chair and 2013 BATC President, Pamela Belz was looking for the next chair for Housing First, our Independent Expenditure Fund or Super PAC, Bill was her natural first choice. And, with a challenging election year ahead, we are all lucky that he said yes.

Bill is stepping up at a critical time. He explains, “there are enough outside interests wanting to influence homebuilding and often in a way that’s not beneficial to the industry. I think it’s important for us to get organized, to have a voice, and to be able to do that, you have to have a Super PAC. We have to be able to raise funds to support legislators that support us.”

The recent legislative session presented numerous challenges. Our lobbyists played defense much of the session, successfully For more pushing information on back legislaHousing First, contact James Vagle, tion that is Public Policy Director sure to reapat 651-697-7578.

To donate, contact pear next Mary Schweich at year (read 651-697-7572. more in

BATC’s legislative wrap). While we were pleased to build strong, bipartisan support on the indoor sprinkler mandate issue — in several cases helped by the dollars we invested on races in 2012 — Governor Dayton was simply not going to back down.

“That’s why, for the upcoming legislative cycle, we need to be even more proactive,” Bill insists. “We set an ambitious goal to support pro homebuilding candidates in the House and also in the gubernatorial race to make an impact on these races. This means we probably need to raise around $700,000.

“Now that’s an aggressive goal,” he says. “But, everybody that we’ve talked to from our Associate members, Remodelers, to our Small, Medium and Large Volume Builders — everybody understands the situation we’re in as an industry. We’re just beginning to come out of this past housing depression and we can’t afford to have adverse legislation put in our way that will negatively impact our recovery.”

The first step to reaching that goal was to get buy in from members and BATC’s board. “We went to the BATC

24 BUILDERS’ DIGEST JULY/SEPTEMBER 2013

board with our plan, and discovered that they understand how important this election cycle is, agreeing to a matching fund up to $300,000,” says Bill. “I think we’re well on the way. There’s a lot needed and we still need to raise a lot more funds, but I think everybody understands and is receptive to it.”

No one who knows Bill is surprised at the passion and effort he’s devoting to Housing First. His success at Lennar exemplifies the same qualities.

Born and raised in Illinois, Bill attended North Central College there and then joined Chicago-based Cambridge Homes in their purchasing division. In 1997, Bill moved to Lundgren Bros.

Construction (LBC), then the fourth largest homebuilder in the Twin Cities, as their Vice President of Purchasing.

When US Home acquired LBC, he took over purchas-

ing for both Orrin Thompson and LBC. Then in 2008, Bill took over as President of Lennar. He’s been able to keep Lennar as the topranked builder in the region every year since.

Bill is married to Ann and they have four kids. Katie, the oldest at 32, is an entrepreneur in her own right, running her own insurance agency. Shelby is 18 and heading to the University of South Dakota to major in business. The two youngest, Emily, 15, and Will, 12, are still at home and keep things interesting along with their boxer Molly and adopted feline, Todd.

It’s clear that Bill’s family is incredibly important to him and a great support system. But his final words were clearly to BATC members, “Help support and defend our industry, donate to Housing First!”

NEWS EVERYDAY ON THE BLOG: WWW.BATC.ORG/BLOG

H O M E I N D O O R SPRINKLERS STREET IMPROVEMENT PARK FEES DESIGN PROFESSIONAL L I C E N S U R RADON AWARENESS S TATUTE O REPOSE INDEMNIFICATION EXTEND PRODUCT STEWARDSHIP PAINT TAX BIL

2013 LEGISLATIVE SESSION REVIEW

MESSAGE FROM THE

PRESIDENT The 2013 legislative session was a remarkable journey for BATC and our lobbying team. After the November elections we knew we would face unique challenges at the Capitol with the DFL leading the House, Senate and Governor’s Office for the first time in nearly 25 years. Our lobbying team’s primary goal was to work to reduce the regulatory footprint that has grown throughout our industry over the past two decades, while blocking or moderating proposals that would add even more regulations and costs.

Perhaps not surprisingly, our team spent the vast majority of their time on the latter. The volume of proposals offered that our industry opposed was high. All of this was on top of our primary policy issue, prohibiting the mandate of home indoor sprinkler systems in single family homes over 4,500 square feet.

With that as the background, I’m especially pleased to share much good news in this legislative session review. Our team was able to successfully stop, redirect and modify most of the proposals we opposed. The disappointment of the session undoubtedly lies with the near-miss we had in passing a sprinkler mandate prohibition into law. However, I am confident we did everything we could to pursue this legislative avenue to solve this issue. We are not giving up, however, and we will continue to work through other options in opposition to a sprinkler system mandate.

Finally, I’d like to thank our team. Their task is ambitious and challenging, and I’m pleased to join this group of professionals from BATC and our affiliates at BAM in working to create a better regulatory environment for you and your business. As a BATC member, YOU are part of our advocacy team. BATC’s Board of Directors has made long-term, strategic investments in advocacy to ensure that we are able to successfully represent and protect our industry’s interests. This recap details the major issues that BATC worked on this session. I hope you find it to be a useful and insightful member resource.

Thank you for your support for BATC and our industry.

Best regards,

Pamela Belz Senior Housing Partners and 2013 BATC President

A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES

2013 Legislative Wrap-Up

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2013 Legislative Wrap-Up

A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES

TA B L E O F

CONTENTS SESSION OVERVIEW HOME INDOOR SPRINKLER MANDATE PROHIBITION -------------------------- 7 STREET IMPROVEMENT DISTRICTS -------------------------------------------------------------- 9 PARK FEES – FAIR MARKET VALUE -------------------------------------------------------------- 11 PARK FEES – PARK FACILITIES FEE ---------------------------------------------------------------- 12 DESIGN PROFESSIONALS LICENSURE ------------------------------------------------------ 13 INDEMNIFICATION ------------------------------------------------------------------------------------------ 15 RADON AWARENESS ACT ------------------------------------------------------------------------------ 17 STATUTE OF REPOSE ---------------------------------------------------------------------------------------- 19 EXTENDED PRODUCT STEWARDSHIP – PAINT -------------------------------------- 21 TAX BILL ---------------------------------------------------------------------------------------------------------------- 23

APPENDICES A -------------------------------------------------------------- STATUTE OF REPOST - CHAPTER 21 B ------------------------------------------ MN RADON AWARENESS ACT - CHAPTER 43 C -------------------------------------- PARK FEES - FAIR MARKET VALUE - CHAPTER 85 D -------------------------------------------------------------- INDEMNIFICATION - CHAPTER 88 E ------------------------------------ PAINT STEWARDSHIP PROGRAM - CHAPTER 114

A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES

2013 Legislative Wrap-Up

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’13 LEGISLATIVE SESSION REVIEW The 2013 legislative session will be remembered for the strong re-emergence of the state’s DFL party, which controlled both the Minnesota House and Senate as well as the Governor’s office for the first time in a generation. Collectively, DFL leaders set out ambitious goals to bring structural, progressive changes to Minnesota’s budget and government services. The road to completion was hectic at times, with tax proposals coming and going up to the final minutes of the session. But, in the end, the session came to an on-time and orderly conclusion with a host of historic changes.

2013 Legislative Session by the numbers: Senate Bills Introduced: 1682 House Bills Introduced: 1862 Bills Presented to the Governor: 81 Bills Signed by the Governor: 81 Bills Vetoed by the Governor: 0 For BATC members, the session was dominated by proposals that raised questions and concerns. The results were mostly positive, although the sprinkler mandate discussion remains unresolved after three years of hard work seeking a solution.

BATC’s legislative efforts occur in concert with our statewide federation partner, the Builders Association of Minnesota (BAM). We engage the services of Larkin Hoffman, one of the most highly respected lobbying firms in the state. (In fact, Larkin Hoffman just received the first ever Lobbyist of the Year award from the Capitol Report and Politics in Minnesota). We also brought on board one of the area’s best issue-oriented public relations firms, Himle Rapp, to provide exceptional messaging and other support this session as we worked in opposition to the home indoor sprinkler system mandate. And of course, we engage you, our members. Through a variety of communications and committees, you provide feedback, help us prioritize issues and tell our story to your legislators.

It’s our honor to represent our members at the Capitol and with regulatory agencies. We’re fortunate to have a strong mix of dedicated individuals with significant experience in the homebuilding and legislative arenas anchoring our legislative team. Read on for more about how the 2013 legislative session unfolded.

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2013 Legislative Wrap-Up

A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES

THE TEAM

DAVID SIEGEL

JAMES VAGLE

PETER COYLE

BATC EXECUTIVE DIRECTOR

BATC PUBLIC POLICY DIRECTOR

ATTORNEY & LOBBYIST, LARKIN HOFFMAN

JULIE PERRUS

PAMELA BELZ

JASON MCCARTY

ATTORNEY & LOBBYIST, LARKIN HOFFMAN

BATC PRESIDENT

BATC PUBLIC POLICY COMMITTEE CHAIR

MARY SCHWEICH

TODD RAPP

SUSIE BELL

BATC PUBLIC POLICY ASSISTANT

HIMLE RAPP

HIMLE RAPP

REMI STONE

LARRY REDMOND BRIAN HALLORAN

BAM EXECUTIVE VICE PRESIDENT

LOBBYIST, REDMOND LOBBYIST, REDMOND & ASSOCIATES & ASSOCIATES

A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES

2013 Legislative Wrap-Up

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THE SPRINKLER I S S U E G A LVA N I Z E D

OUR MEMBERSHIP UNFORTUNATELY, THE GOVERNOR

TWICE BLOCKED THE OPPORTUNIT Y TO

LEAVE SPRINKLERS AS A HOMEOWNER

CHOICE 6

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2013 Legislative Wrap-Up

A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES

Sprinkler Mandate Prohibition BATC Position: Support Sprinkler Mandate Prohibition Outcome: Provision failed in Conference Committee twice; is now expected to be addressed at the Administrative Law Judge level later in 2013

ISSUE BACKGROUND: BATC’s top priority in the session was the removal of the home indoor sprinkler system mandate currently in the draft Minnesota building code. This mandate would require sprinkler systems in all homes 4,500 square feet (includes finished/unfinished basements) and above. In 2011 and 2012, BATC & BAM successfully advanced bills through the legislature to remove the mandate. However, both bills were vetoed by Governor Dayton.

The home indoor sprinkler system mandate as proposed in the code would increase the cost of a new four-bedroom, three-bathroom home by $9,000. If the home uses private well water, as many communities in the Twin Cities do, the costs can range from $15,000 to $20,000 once water pump and well improvements are considered. This cost does not include annual maintenance, higher property taxes, or the cost if the home indoor sprinkler system were to malfunction.

2013 ACTIVITY: Early in the session, BATC’s lobbying team focused its efforts on education. We worked to explain the importance of ensuring that home sprinklers are a choice, not a mandate to newly elected legislators. We expected this issue to re-emerge prominently near the end of session, which it did. In late April, the Minnesota Senate adopted an amendment authored by Sen. David Senjem (R-Rochester) to the omnibus Economic Development bill authored by Senator David Tomassoni (DFL-Chisholm) to remove the sprinkler mandate from the forthcoming building code. The vote was an impressive 47-17 in favor of the amendment. We were heartened by this strong bipartisan vote, but the headwinds in Conference Committee were against us, and the sprinkler mandate prohibition did not make it into the final committee report. While we had strong Senate support, the House rejected our position, citing a potential veto of the entire omnibus bill from Governor Dayton if the sprinkler language was included.

In the final days of the session, Sen. Senjem again successfully amended the sprinkler mandate prohibition language onto the omnibus Game and Fish bill. That language was also removed in Conference Committee reconciliation.

BATC members deserve a special mention for their exceptional work in making our case and building momentum for our story. A growing, bipartisan super-majority of the legislature agrees with our core message: we build exceptionally safe homes, and while some regulation is necessary, this particular regulation is government overreach that the public solidly opposes.

Looking ahead, we will continue to look for any avenues to address this issue through the administrative law judge process, and in future legislative sessions.

A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES

2013 Legislative Wrap-Up

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STREET IMPROVEMENT DISTRICTS

CREATE A NEW MECHANISM FOR

LOC AL GOVERNMENTS

TO COLLECT DOLLARS

FOR STREET MAINTENANCE BATC MEMBERS ALREADY PAY

STREET FEES AT THE TIME OF DEVELOPMENT

WE SUCCESSFULLY NEGOTIATED A CARVE OUT

FOR NEW HOMES

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A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES

Street Improvement Districts (HF 745/SF 607) Senate Author: Senator Jim Carlson (DFL-Eagan) House Author: Representative Ron Erhardt (DFL-Edina) BATC Position: Oppose original bill; neutral following BATC amendment adoption Outcome: Provision failed in omnibus Tax and omnibus Transportation bills

ISSUE BACKGROUND: Proposed by the League of MN Cities for the past decade in an effort to create another tool for local governments to raise revenue for street improvements, the initiative allowed cities to create districts in which they can collect fees from new and existing properties. The fees must be connected to a streets improvement plan, but unlike existing special assessment authority the fee is not subject to the benefits test to ensure it is proportionate for the property value increase associated with the infrastructure improvement.

2013 ACTIVITY: BATC objected to the proposal because new development already pays for street improvements and other infrastructure related to our projects. These are ultimately rolled into the lot costs, and we shouldn’t have to pay twice.

Prior to the committee deadline we successfully negotiated an amendment that exempts new development from street improvement districts for three years following the development of the project. The language specifically exempts “unoccupied parcels” which covers model and spec homes.

This issue is a top priority for local government groups who feel that this would be a more cost-effective way to maintain roads and infrastructure. The resistance was especially strong from a diverse coalition of business, higher education, religious and non-profit groups who claimed that this was a duplicative property tax, essentially an end-run on the benefits test required for assessments today.

The issue was vetted at multiple stops and bounced between the omnibus Tax and omnibus Transportation Finance bills. In the end, there was not sufficient support among DFL conferees to support the bill and it failed to pass into law. However, looking ahead, it is very likely that this bill will pick up where it left off in the 2014 session.

A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES

2013 Legislative Wrap-Up

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PARKS WE’VE ALWAYS AGREED THAT THEY ARE AN IMPORTANT AMENIT Y

BUT FEES MUST

BE FAIR & NOT A CASH COW FOR LOCAL GOVERNMENTS

BATC’S INFLUENCE

HELPED ENSURE THAT PARK FEES ARE FAIRLY PRICED

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A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES

Minneapolis Park Dedication Fee – Fair Market Value (HF 321/SF 99) Senate Author: Senator Scott Dibble (DFL-Minneapolis) House Author: Representative Frank Hornstein (DFL-Minneapolis) BATC Position: Support Fair Market Value Provisions Outcome: Provision passed in the Economic Development omnibus bill and was signed into law as Chapter 85

ISSUE BACKGROUND: The City of Minneapolis has long sought specific authority to charge a park dedication fee on new commercial and residential development, but there was lingering uncertainty as to how the fee could be administered. The proposal required a nexus between the development paying the fee and the park creation and improvement. The city also capped the park dedication fee at $1,500, placing it among the lowest in the metro area. Additionally, this bill was amended to include BATC’s fair market value provision.

2013 ACTIVITY: In discussions with Minneapolis Park Board representatives and the League of MN Cities, we were able to revive our park dedication fair-market value language from 2012 as an amendment. That language creates a pathway to fairer, more accurate park fees by clarifying a process for negotiation between the developer and the city for park fee rates. If that outcome is unsatisfactory, the developer can request a third-party appraisal. Park fees are unreasonably high in many cities because the high-point land values are used as the basis for the fee. The fair market language would allow for an adjustment of the fees based on actual land values today.

The House passed the bill which included our fair market value language. The Senate struggled to pass the bill as a stand-alone in the floor debate, so the bill was moved to the omnibus Economic Development Finance bill where both the minneapolis park fee and the fair market value provisions were passed as part of the larger measure.

A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES

2013 Legislative Wrap-Up

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Park Facilities Fee (HF 511/SF 606) Senate Author: Senator Alice Johnson (DFL-Blaine) House Author: Representative Jerry Newton (DFL-Coon Rapids) BATC Position: Opposed to the bill Outcome: Provision stalled and was not brought forth for a hearing

ISSUE BACKGROUND: This bill would create a new authority for local governments to raise revenue for parks in the form of a park facilities fee, which would be tacked on to annual property taxes. The city council would have to create a plan and fee schedule via ordinance and public hearing, but the park facilities fee would create a dedicated revenue stream for park creation very similar to the street improvement concept favored by cities.

2013 ACTIVITY: In a moment of déjà vu for our lobbying team, this bill mimicked the street improvements initiative in that it was another duplicative regulatory tool for local governments to extract funds from new developments.

As homebuilders, we already pay park fees at the time of development or building permit. It’s unfair to double-tax new development for parks. After being scheduled for hearing in the House Government Operations Committee twice, the bill was removed from consideration for the 2013 legislative session.

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A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES

CONCERN ABOUT T H E I M PA C T O F

INTERIOR DESIGN

LICENSURE THIS BILL WAS HEARD BUT DID NOT MOVE THIS SESSION

WE CONTINUE TO ENGAGE Design Professionals Bill (HF 1052) Senate Author: Senator Jim Carlson (DFL-Eagan) House Author: Representative Debra Hilstrom (DFL-Brooklyn Center) BATC Position: Monitoring, pending clarification on remodeling industry impact Outcome: Bill laid over in committee; likely to come back in 2014

ISSUE BACKGROUND: The long-time controversial design licensing bill appeared late in the 2013 committee season in an informational hearing in the House Commerce Committee. BATC monitors this issue closely as there has been significant concern about the impact of this bill on our remodeling and design members. Major concerns include hindering our members’ ability to perform services in connection with the planning or design of interior spaces, preparation of documents relative to non-load bearing interior construction, programming, space planning, finishes, furniture, fixtures and equipment except in one- and two-family dwellings and limited “decorating consultation.”

2013 ACTIVITY: House Commerce Committee Chair Rep. Joe Atkins DFL-Inver Grove Heights introduced this as an issue that “will not disappear” and an informational hearing was held to discuss the issue of licensed interior de-

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sign (HF 1052). The chief author of the bill in the House, Rep. Debra Hilstrom DFL, Brooklyn Center began the hearing by emphasizing the exemptions from the bill where interior design licensure would not apply or restrict: • Architects, landscape architects, and engineers; • Retail consultants for finishes, furnishings or cabinetry on behalf of a retailer; • Salesperson selling surface materials, window treatments, displays, etc.; • Residential designers, including kitchen or bath designer working within interior exempt spaces.

Concerns against the licensure proposal focused on general opposition to the occupational licensure as a restrictive measure that limits professional opportunities, noting that just three states currently license interior designers. No amendments were offered and no votes were taken during the hearing, which means this will not become law in 2013. Rep. Hilstrom closed the informational hearing by stating “…the requirements of this bill pertain to licensed interior designers and not the broader interior design profession. It’s been recognized for over 21 years in Minnesota that interior design of non-exempt spaces does affect the health, safety and welfare of the public and it’s time to change this to a licensed practice.”

BATC has shared our interest and concern regarding the potentially negative impacts that this bill could have on our industry with proponents of the legislation. These legislators have expressed a willingness to work with us to find common ground as this issue moves forward next session.

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DEBATE ABOUT HOW GENERAL CONTRACTORS & THEIR SUB-CONTRACTORS AND TRADE PARTNERS

HANDLE INSURANCE AND INDEMNIFICATION GRABBED THE SPOTLIGHT

A BILL WAS PASSED THAT ATTEMPTS TO STRIKE A MIDDLE GROUND

OF PROTECTION FOR SUB-CONTRACTORS

WITHOUT UPSETTING THE INDUSTRY INSURANCE MARKET

Indemnification/Risk Transfer (HF 644/SF 561) Senate Author: Senator Vicki Jensen (DFL-Owatonna) House Author: Representative Joe Atkins (DFL-Inver Grove Heights) BATC Position: Neutral on final bill Outcome: Provision passed and was signed into law as Chapter 88

ISSUE BACKGROUND: As introduced, this bill attempted to change construction contract indemnification and insurance clauses by making them void and unenforceable. The MN Subcontractors Association began the session by pressing for a blanket prohibition on these provisions.

2013 ACTION: As introduced, this initiative had the potential to upset the long-established methodology by which the homebuilding industry and the insurance industry have been operating. The bill moved through the committee process and attracted significant opposition from commercial contractors and local governments who serve as general contractors on municipal projects.

At the heart of the debate was a discussion about individual company responsibility and the concern that sub-contractors are vulnerable to being held liable for the mistakes and claims made against the gen-

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eral contractor and for which a sub-contractor had no involvement. This was balanced by lengthy discussions on the unique and inter-connected nature of our industry, which has led to the long-established risk transfer and indemnification model.

The final bill permits contract clauses to allow for workers compensation, performance or payment bonds, project-specific insurance and builder’s risk policies. This bill also protected contract clauses that require insurance coverage for vicarious liability and warranty liability (homebuilder’s statutory warranties as well as express and implied warranties).

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RADON AWARENESS WAS PROMINENT THIS SESSION

WHILE THE TESTING MANDATE

DIDN’T PASS INT O L AW A DISCLOSURE ON THE

HEALTH RISKS ASSOCIATE WITH RADON EXPOSURE WILL NOW BE REQUIRED IN ALL

RESIDENTIAL TRANSACTIONS Minnesota Radon Awareness Act (HF 662/SF 887) Senate Author: Senator John Marty (DFL-Roseville) House Author: Representative Carolyn Laine (DFL-Columbia Heights) BATC Position: Support Fair Market Value Provisions Outcome: Provision passed and was signed into law as Chapter 43

ISSUE BACKGROUND: Two bills aimed at raising public awareness of the health risks associated with radon were introduced in the 2013 session. The first, “Janet’s Law,” required radon testing to be performed prior to completing a real estate transaction. The “Healthy Homes Radon Disclosure Act” required real estate transactions to include (1) disclosure language that spells out the health risks associated with radon, and (2) a statement from the Minnesota Department of Health urging potential homeowners to have a radon test performed.

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Newly built homes are currently required to install a passive radon mitigation system—these proposals don’t attempt to change that. The disclosure and testing requirements would apply to newly built homes at the time of homeowner transaction.

2013 ACTION: “Janet’s Law” (the mandatory testing bill) did not make the policy deadline and stalled for the session. The “Healthy Homes Radon Disclosure Act” (mandatory disclosure bill) passed and now requires a mandatory statement: “The Minnesota Department of Health strongly recommends that ALL homebuyers have an indoor radon test performed prior to purchase or taking occupancy, and recommends having the radon levels mitigated if elevated radon concentrations are found. Elevated radon concentrations can easily be reduced by a qualified, certified, or licensed, if applicable, radon mitigator.

Every buyer of any interest in residential real property is notified that the property may present exposure to dangerous levels of indoor radon gas that may place the occupants at risk of developing radon-induced lung cancer.

Radon, a Class A human carcinogen, is the leading cause of lung cancer in nonsmokers and the second leading cause overall. The seller of any interest in residential real property is required to provide the buyer with any information on radon test results of the dwelling.”

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THE WARRANTY DEBATES. CHANGES TO STATUTE OF REPOSE

FOR CONSTRUCTION CLAIMS

BUILD IN A WINDOW FOR CONTRIBUTION & INDEMNITY ACTIONS BETWEEN BUSINESSES

WHILE MAINTAINING THE 10-YEAR WARRANTY AS IS Statute of Repose (HF 450/SF 392) Senate Author: Senator Ron Latz (DFL-St. Louis Park) House Author: Representative Joe Atkins (DFL-Inver Grove Heights) BATC Position: Neutral on final bill Outcome: Provision passed and was signed into law as Chapter 21

ISSUE BACKGROUND: This bill proposed to modify the limits for contribution and indemnity actions for damages based on services or construction to improve real property. It aimed to extend by two years the current window for contribution and indemnity claims (otherwise known as the statute of repose) of 12 years, bringing it to a total of 14 years.

2013 ACTION: The bill moved through the process with little discussion and passed unanimously in both bodies. The additional two years does not affect the 10-year warranty or any homeowner actions against the builder. However, in a scenario where a homeowner alleges a defect near year 10 of the warranty and does not initiate legal action until near year 12 of the statute of repose, the additional two-year extension would allow for contribution and indemnity claims by participating firms in a construction dispute.

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ENVIRONMENTAL AWARENESS & PRODUCT STEWARDSHIP CONTINUES

TO EXPAND IN OUR

INDUSTRY THIS SESSION THE

PAINT INDUSTRY WAS REQUIRED TO CREATE A

STEWARDSHIP

PLAN THAT THE S TATE WILL APPROVE AND OVERSEE

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Extended Producer Responsibility (HF 865/SF 639) Senate Author: Senator Chris Eaton (DFL-Brooklyn Center) House Author: Representative Mike Sundin (DFL-Esko) BATC Position: Neutral Outcome: Provision passed as part of the omnibus Environment Finance bill, Chapter 114

ISSUE BACKGROUND: Product stewardship means that all parties involved in designing, manufacturing, selling and using a product take responsibility for environmental impacts at every stage of that product’s life.

In particular, product stewardship requires manufacturers to share in the financial and physical responsibility for collecting and recycling products at the end of their useful lives. When manufacturers share the costs of recycling products, they have an incentive to use recycled materials in new products and design products to be less toxic and easier to recycle, incorporating environmental concerns into the earliest phases of product design.

This bill required architectural paint manufacturers in Minnesota to organize and implement waste collection and recycling programs. It also required manufacturers of those products to identify which items they accept and to develop a system to collect items, plus detail a public outreach and promotion plan. The proposal required approval by the MPCA and implementation by 2015. (This plan was modeled after requirements for the collection and recycling of electronic products the state enacted in 2007.)

2013 ACTION: The bill cleared policy committees in both bodies and was folded into the Omnibus Environment Finance bill, which passed and was signed by Governor Dayton.

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THE BUDGET TAXES ARE GOING UP ON HIGH-INCOME EARNERS

SMOKERS & SOME B2B TRANSACTIONS

DFL CLAIMS THE BUDGET IS HONEST & ADDITIONAL FUNDS ARE NEEDED TO

BOOST EDUCATION & MAINTAIN QUALITY OF LIFE

THE GOP CONTENDS THAT THIS IS A VERY REAL

THREAT TO OUR ECONOMIC

RECOVERY & REGIONAL COMPETITIVENESS

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Tax Bill Senate Author: Senator Rod Skoe (DFL-Clearbrook) House Author: Representative Ann Lenczewski (DFL-Bloomington) BATC Position: Oppose B2B Sales Tax; Income Tax Provisions Outcome: B2B Income Tax and B2B Sales Tax provisions passed in the Tax omnibus bill and was signed into law as Chapter 143

ISSUE BACKGROUND: The key element in Governor Dayton’s original tax overhaul was to lower and broaden Minnesota’s sales tax on personal and business services. The proposed broadening of the tax to business services included legal, public relations, design, advertising, and engineering services, among others, and was met with universal opposition from business groups throughout the state. For most BATC members the business-to-business sales tax would increase project costs considerably.

In mid-March, Governor Mark Dayton surprised many observers when he announced he was dropping his proposal to extend the sales tax to business-to-business transactions. This set the race to final tax negotiations between the Governor, House and Senate in motion. All parties wanted increased revenue to make structural budget changes, but the pathways to reach that goal were varied. The final bill was passed just minutes before adjournment.

2013 ACTION: The state will raise an additional $2 billion in tax revenue to offset an earlier projected $627 million deficit (as well as funding new spending).

Smokers will pay double the existing cigarette tax as the tax increases from $1.23 a pack to $2.83 a pack (an increase of $1.60 per pack).

High-income earners will see an income tax increase. The rate will be 9.85 percent for those making $250,000 filing married-joint and for single filers making $150,000 or more.

The business-to-business sales tax will become law including warehouse and storage sales tax (excludes farm products, refrigerated storage, and electronic data storage) and sales tax on electronic and commercial equipment and repair (to include farm and capital equipment).

The tax bill also includes financing to help Rochester handle the planned expansion of the Mayo Clinic, a project which BATC supported.

Much of the spending will be geared toward education and property tax relief.

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Thank You We want to thank all BATC members for their support, advocacy and commitment to our shared cause to create a better legislative environment within which your businesses can operate more effectively. It is an honor to represent this industry.

PUBLIC POLICY

STAY IN TOUCH

C O M M I T T E E JASON McCARTY, Chair Westwood Professional Services MARY SCHWEICH BATC, Public Policy Assistant PAMELA BELZ Senior Housing Partners MORGAN BICKEL Lennar SCOTT BLOM ProBuild

SHAWN NELSON New Spaces

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

RYAN OHR IKO KATHLEEN OSTROM C.N. Ostrom & Son, Inc.

The Voice, BATC’s weekly e-newsletter RICK PACKER Centra Homes, LLC DAVID PATTBERG Centra Homes, LLC

GEORGE CUNDY Cundy, Santine & Associate

ALDEN PEARSON Acumen Legal Advisors, PLLC

ROBERT ENGSTROM Robert Engstrom Companies

IAN PETERSON Pulte Homes of Minnesota LLC

LARRY FRANK Arcon Development, Inc.

WILLIAN PRITCHARD Prudential

PAUL HEUER Stantec

RICHARD RIEMEERSMA Imperial Homes, Inc.

BATC: @batctc

BILL KEENAN Builders Development & Finance

ROB SHAINESS Capstone Law, LLC

Housing First: @housing_first

JOSEPH SPRINGER Fredrikson & Byron, P.A.

James Vagle: @jvags

JIM STANTON Shamrock Builders, Inc

David Siegel: @davidsiegel1

Twitter

RICK KOT R.A. Kot Homes, Inc. FRANK KOTTSCHADE North American Realty, Inc. GREG LIVERMONT Andersen Windows

STEVE WILLIAMS JMS Custom Homes

Follow our BATC’s blog at blog.batconline.org

BOB MICHELS Bob Michels Construction, Inc.

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*Underlined language denotes new law adopted by the 2013 MN Legislature.

Stricken language denotes existing law removed by the 2013 MN Legislature

Appendices Statute of Repose CHAPTER 21--H.F.No. 450 Section 1. Minnesota Statutes 2012, section 541.051, is amended to read:

541.051 LIMITATION OF ACTION FOR DAMAGES BASED ON SERVICES OR CONSTRUCTION TO IMPROVE REAL PROPERTY. Subdivision 1. Limitation; service or construction of real property; improvements. (a) Except where fraud is involved, no action by any person in contract, tort, or otherwise to recover damages for any injury to property, real or personal, or for bodily injury or wrongful death, arising out of the defective and unsafe condition of an improvement to real property, shall be brought against any person performing or furnishing the design, planning, supervision, materials, or observation of construction or construction of the improvement to real property or against the owner of the real property more than two years after discovery of the injury, nor in any event shall such a cause of action accrue more than ten years after substantial completion of the construction. Date of substantial completion shall be determined by the date when construction is sufficiently completed so that the owner or the owner's representative can occupy or use the improvement for the intended purpose. (b) Notwithstanding paragraph (a), an action for contribution or indemnity arising out of the defective and unsafe condition of an improvement to real property may be brought no later than two years after the cause of action for contribution or indemnity has accrued, regardless of whether it accrued before or after the ten-year period referenced in paragraph (a), provided that in no event may an action for contribution or indemnity be brought more than 14 years after substantial completion of the construction. (c) For purposes of paragraph (a), a cause of action accrues upon discovery of the injury; provided, however, that in the case of an action for contribution or indemnity under. For purposes of paragraph (b), a cause of action for contribution or indemnity accrues upon the earlier of commencement of the action against the party seeking contribution or indemnity, or payment of a final judgment, arbitration award, or settlement arising out of the defective and unsafe condition. (d) Nothing in this section shall apply to actions for damages resulting from negligence in the maintenance, operation or inspection of the real property improvement against the owner or other person in possession. (e) The limitations prescribed in this section do not apply to the manufacturer or supplier of any equipment or machinery installed upon real property.

Subd. 2. Action allowed; limitation. Notwithstanding the provisions of subdivision 1, paragraph (a), in the case of a cause of action described in subdivision 1, paragraph (a), which accrues during the ninth or tenth year after substantial completion of the construction, an action to recover damages may be brought within two years after the date on which the cause of action accrued, but in no event may such an action be brought more than 12 years after substantial completion of the construction. Nothing in this subdivision shall limit the time for bringing an action for contribution or indemnity.

Subd. 3. Not construed. Nothing in this section shall be construed as extending the period prescribed by the laws of this state for the bringing of any action.

Subd. 4. Applicability. For the purposes of actions based on breach of the statutory warranties set forth in section 327A.02, or to actions based on breach of an express written warranty, such actions shall be brought within two years of the discovery of the breach. In the case of an action under section 327A.05, which accrues during the ninth or tenth year after the warranty date, as defined in section 327A.01, subdivision 8, an action may be brought within two years of the discovery of the breach, but in

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APPENDICE A

no event may an action under section 327A.05 be brought more than 12 years after the effective warranty date. An action for contribution or indemnity arising out of actions described in this subdivision may be brought no later than two years after the earlier of commencement of the action against the party seeking contribution or indemnity, or payment of a final judgment, arbitration award, or settlement arising out of the breach, provided that in no event may an action for contribution or indemnity arising out of an action described in section 327A.05 be brought more than 14 years after the effective warranty date.

EFFECTIVE DATE. This section is effective August 1, 2013, and applies to actions commenced on or after that date.

MN Radon Awareness Act CHAPTER 43--S.F.No. 887 [144.496] MINNESOTA RADON AWARENESS ACT. Subdivision 1. Citation. This section may be cited as the "Minnesota Radon Awareness Act." Subd. 2. Definitions. (a) The following terms used in this section have the meanings given them. (b) "Buyer" means a person negotiating or offering to acquire for value, legal or equitable title, or the right to acquire legal or equitable title to residential legal property. (c) "Mitigation" means measures designed to permanently reduce indoor radon concentrations. (d) "Radon test" means a measurement of indoor radon concentrations according to established industry standards for residential real property. (e) "Residential real property" means property occupied as, or intended to be occupied as, a singlefamily residence, including a unit in a common interest community as defined in section 515B.1-103, clause (10), regardless of whether the unit is in a common interest community not subject to chapter 515B. (f) "Seller" means a person who owns legal or equitable title to residential real property. (g) "Elevated radon concentration" means a radon concentration at or above the United States Environmental Protection Agency's radon action level.

Subd. 3. Radon disclosure. (a) Before signing an agreement to sell or transfer residential real property, the seller shall disclose in writing to the buyer any knowledge the seller has of radon concentrations in the dwelling. The disclosure shall include: (1) whether a radon test or tests have occurred on the real property; (2) the most current records and reports pertaining to radon concentrations within the dwelling; (3) a description of any radon concentrations, mitigation, or remediation; (4) information regarding the radon mitigation system, including system description and documentation, if such system has been installed in the dwelling; and (5) a radon warning statement meeting the requirements of subdivision 4. (b) The seller shall provide the buyer with a copy of the Minnesota Department of Health publication entitled "Radon in Real Estate Transactions." (c) The seller's radon disclosure requirements in this section apply to the transfer of any interest in residential real estate, whether by sale, exchange, deed, contract for deed, lease with an option to purchase, or any other option. (d) The seller's radon disclosure requirements in this section do not apply to any of the following: (1) real property that is not residential real property; (2) a gratuitous transfer; (3) a transfer made pursuant to a court order;

APPENDICE B

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*Underlined language denotes new law adopted by the 2013 MN Legislature.

Stricken language denotes existing law removed by the 2013 MN Legislature

(4) a transfer to a government or governmental agency; (5) a transfer by foreclosure or deed in lieu of foreclosure; (6) a transfer to heirs or devisees of a decedent; (7) a transfer from a cotenant to one or more other cotenants; (8) a transfer made to a spouse, parent, grandparent, child, or grandchild of the seller; (9) a transfer between spouses resulting from a decree of marriage dissolution or from a property settlement agreement incidental to that decree; (10) an option to purchase a unit in a common interest community, until exercised; (11) a transfer to a person who controls or is controlled by the grantor as those terms are defined with respect to a declarant under section 515B.1-103, clause (2); (12) a transfer to a tenant who is in possession of the residential real property; or (13) a transfer of special declarant rights under section 515B.3-104. (e) A seller may provide the written disclosure required under this section to a real estate licensee representing or assisting a prospective buyer. The written disclosure provided to the real estate licensee representing or assisting a prospective buyer is considered to have been provided to the prospective buyer. If the written disclosure is provided to the real estate licensee representing or assisting the prospective buyer, the real estate licensee must provide a copy to the prospective buyer.

Subd. 4. Radon warning statement. The radon warning statement must include the following language: "Radon Warning Statement The Minnesota Department of Health strongly recommends that ALL homebuyers have an indoor radon test performed prior to purchase or taking occupancy, and recommends having the radon levels mitigated if elevated radon concentrations are found.

Elevated radon concentrations can easily be reduced by a qualified, certified, or licensed, if applicable, radon mitigator.

Every buyer of any interest in residential real property is notified that the property may present exposure to dangerous levels of indoor radon gas that may place the occupants at risk of developing radon-induced lung cancer. Radon, a Class A human carcinogen, is the leading cause of lung cancer in nonsmokers and the second leading cause overall. The seller of any interest in residential real property is required to provide the buyer with any information on radon test results of the dwelling."

Subd. 5. Liability; transfer not invalidated. (a) A seller who fails to make a radon disclosure as required by this section, and is aware of material facts pertaining to radon concentrations in the dwelling, is liable to the buyer.(b) A buyer who is injured by a violation of this section may bring a civil action and recover damages and receive other equitable relief as determined by the court. An action under this subdivision must be commenced within two years after the date on which the buyer closed the purchase or transfer of the real property.(c) This section does not invalidate a transfer solely because of the failure of any person to comply with a provision of this section. This section does not prevent a court from ordering a rescission of the transfer.

Subd. 6. Effective date. This section is effective January 1, 2014, and applies to agreements to sell or transfer residential real property executed on or after that date.

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APPENDICE C

Fair Market Value – Park Dedication Fee CHAPTER 85--H.F.No. 729 Minnesota Statutes 2012, section 462.358, subdivision 2b, is amended to read: Subd. 2b. Dedication. (a) The regulations may require that a reasonable portion of the buildable land, as defined by municipal ordinance, of any proposed subdivision be dedicated to the public or preserved for public use as streets, roads, sewers, electric, gas, and water facilities, storm water drainage and holding areas or ponds and similar utilities and improvements, parks, recreational facilities as defined in section 471.191, playgrounds, trails, wetlands, or open space. The requirement must be imposed by ordinance or under the procedures established in section 462.353, subdivision 4a. (b) If a municipality adopts the ordinance or proceeds under section 462.353, subdivision 4a, as required by paragraph (a), the municipality must adopt a capital improvement budget and have a parks and open space plan or have a parks, trails, and open space component in its comprehensive plan subject to the terms and conditions in this paragraph and paragraphs (c) to (i). (c) The municipality may choose to accept a cash fee as set by ordinance from the applicant for some or all of the new lots created in the subdivision, based on the average fair market value of the unplatted land for which park fees have not already been paid that is, no later than at the time of final approval or under the city's adopted comprehensive plan, to be served by municipal sanitary sewer and water service or community septic and private well as authorized by state law. For purposes of redevelopment on developed land, the municipality may choose to accept a cash fee based on fair market value of the land no later than the time of final approval.

"Fair market value" means the value of the land as determined by the municipality annually based on tax valuation or other relevant data. If the municipality's calculation of valuation is objected to by the applicant, then the value shall be as negotiated between the municipality and the applicant, or based on the market value as determined by the municipality based on an independent appraisal of land in a same or similar land use category.

Indemnification Bill CHAPTER 88--S.F.No. 561 Section 1. Minnesota Statutes 2012, section 337.05, subdivision 1, is amended to read: Subdivision 1. Agreements valid. (a) Except as otherwise provided in paragraph (b), sections 337.01 to 337.05 do not affect the validity of agreements whereby a promisor agrees to provide specific insurance coverage for the benefit of others. (b) A provision that requires a party to provide insurance coverage to one or more other parties, including third parties, for the negligence or intentional acts or omissions of any of those other parties, including third parties, is against public policy and is void and unenforceable. (c) Paragraph (b) does not affect the validity of a provision that requires a party to provide or obtain workers' compensation insurance, construction performance or payment bonds, or project-specific insurance, including, without limitation, builder's risk policies or owner or contractor-controlled insurance programs or policies. (d) Paragraph (b) does not affect the validity of a provision that requires the promisor to provide or obtain insurance coverage for the promisee's vicarious liability, or liability imposed by warranty, arising out of the acts or omissions of the promisor. (e) Paragraph (b) does not apply to building and construction contracts for work within fifty feet of public or private railroads, or railroads regulated by the Federal Railroad Administration.

EFFECTIVE DATE; APPLICATION.This section is effective August 1, 2013, and applies to agreements entered into on or after that date.

APPENDICE D

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*Underlined language denotes new law adopted by the 2013 MN Legislature.

Stricken language denotes existing law removed by the 2013 MN Legislature

Paint Stewardship Program CHAPTER 114--H.F.No. 976

Sec. 78. [115A.1415] ARCHITECTURAL PAINT; PRODUCT STEWARDSHIP PROGRAM; STEWARDSHIP PLAN. Subdivision 1. Definitions. For purposes of this section, the following terms have the meanings given: (1) "architectural paint" means interior and exterior architectural coatings sold in containers of five gallons or less. Architectural paint does not include industrial coatings, original equipment coatings, or specialty coatings; (2) "brand" means a name, symbol, word, or mark that identifies architectural paint, rather than its components, and attributes the paint to the owner or licensee of the brand as the producer; (3) "discarded paint" means architectural paint that is no longer used for its manufactured purpose; (4) "producer" means a person that: (i) has legal ownership of the brand, brand name, or cobrand of architectural paint sold in the state; (ii) imports architectural paint branded by a producer that meets subclause (i) when the producer has no physical presence in the United States; (iii) if subclauses (i) and (ii) do not apply, makes unbranded architectural paint that is sold in the state; or (iv) sells architectural paint at wholesale or retail, does not have legal ownership of the brand, and elects to fulfill the responsibilities of the producer for the architectural paint by certifying that election in writing to the commissioner; (5) "recycling" means the process of collecting and preparing recyclable materials and reusing the materials in their original form or using them in manufacturing processes that do not cause the destruction of recyclable materials in a manner that precludes further use; (6) "retailer" means any person who offers architectural paint for sale at retail in the state; (7) "reuse" means donating or selling collected architectural paint back into the market for its original intended use, when the architectural paint retains its original purpose and performance characteristics; (8) "sale" or "sell" means transfer of title of architectural paint for consideration, including a remote sale conducted through a sales outlet, catalog, Web site, or similar electronic means. Sale or sell includes a lease through which architectural paint is provided to a consumer by a producer, wholesaler, or retailer; (9) "stewardship assessment" means the amount added to the purchase price of architectural paint sold in the state that is necessary to cover the cost of collecting, transporting, and processing postconsumer architectural paint by the producer or stewardship organization pursuant to a product stewardship program; (10) "stewardship organization" means an organization appointed by one or more producers to act as an agent on behalf of the producer to design, submit, and administer a product stewardship program under this section; and (11) "stewardship plan" means a detailed plan describing the manner in which a product stewardship program under subdivision 2 will be implemented.

Subd. 2. Product stewardship program. For architectural paint sold in the state, producers must, individually or through a stewardship organization, implement and finance a statewide product stewardship program that manages the architectural paint by reducing the paint's waste generation, promoting its reuse and recycling, and providing for negotiation and execution of agreements to collect, transport, and process the architectural paint for end-of-life recycling and reuse.

Subd. 3. Requirement for sale. (a) On and after July 1, 2014, or three months after program plan approval, whichever is sooner, no producer, wholesaler, or retailer may sell or offer for sale in the state architectural paint unless the paint's producer participates in an approved stewardship plan, either individu-

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APPENDICE E

ally or through a stewardship organization. (b) Each producer must operate a product stewardship program approved by the agency or enter into an agreement with a stewardship organization to operate, on the producer's behalf, a product stewardship program approved by the agency.

Subd. 4. Requirement to submit plan. (a) On or before March 1, 2014, and before offering architectural paint for sale in the state, a producer must submit a stewardship plan to the agency and receive approval of the plan or must submit documentation to the agency that demonstrates the producer has entered into an agreement with a stewardship organization to be an active participant in an approved product stewardship program as described in subdivision 2. A stewardship plan must include all elements required under subdivision 5. (b) An amendment to the plan, if determined necessary by the commissioner, must be submitted every five years. (c) It is the responsibility of the entities responsible for each stewardship plan to notify the agency within 30 days of any significant changes or modifications to the plan or its implementation. Within 30 days of the notification, a written plan revision must be submitted to the agency for review and approval.

Subd. 5. Stewardship plan content. A stewardship plan must contain: (1) certification that the product stewardship program will accept all discarded paint regardless of which producer produced the architectural paint and its individual components; (2) contact information for the individual and the entity submitting the plan, a list of all producers participating in the product stewardship program, and the brands covered by the product stewardship program; (3) a description of the methods by which the discarded paint will be collected in all areas in the state without relying on end-of-life fees, including an explanation of how the collection system will be convenient and adequate to serve the needs of small businesses and residents in both urban and rural areas on an ongoing basis and a discussion of how the existing household hazardous waste infrastructure will be considered when selecting collection sites; (4) a description of how the adequacy of the collection program will be monitored and maintained; (5) the names and locations of collectors, transporters, and recyclers that will manage discarded paint; (6) a description of how the discarded paint and the paint's components will be safely and securely transported, tracked, and handled from collection through final recycling and processing; (7) a description of the method that will be used to reuse, deconstruct, or recycle the discarded paint to ensure that the paint's components, to the extent feasible, are transformed or remanufactured into finished products for use; (8) a description of the promotion and outreach activities that will be used to encourage participation in the collection and recycling programs and how the activities' effectiveness will be evaluated and the program modified, if necessary; (9) the proposed stewardship assessment. The producer or stewardship organization shall propose a uniform stewardship assessment for any architectural paint sold in the state. The proposed stewardship assessment shall be reviewed by an independent auditor to ensure that the assessment does not exceed the costs of the product stewardship program and the independent auditor shall recommend an amount for the stewardship assessment. The agency must approve the stewardship assessment; (10) evidence of adequate insurance and financial assurance that may be required for collection, handling, and disposal operations; (11) five-year performance goals, including an estimate of the percentage of discarded paint that will be collected, reused, and recycled during each of the first five years of the stewardship plan. The performance goals must include a specific goal for the amount of discarded paint that will be collected and recycled and reused during each year of the plan. The performance goals must be based on: (i) the most recent collection data available for the state; (ii) the estimated amount of architectural paint disposed of annually;

APPENDICE E

•

2013 Legislative Wrap-Up

A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES

*Underlined language denotes new law adopted by the 2013 MN Legislature.

Stricken language denotes existing law removed by the 2013 MN Legislature

(iii) the weight of the architectural paint that is expected to be available for collection annually; and (iv) actual collection data from other existing stewardship programs.

The stewardship plan must state the methodology used to determine these goals; and (12) a discussion of the status of end markets for collected architectural paint and what, if any, additional end markets are needed to improve the functioning of the program.

Subd. 6. Consultation required. Each stewardship organization or individual producer submitting a stewardship plan must consult with stakeholders including retailers, contractors, collectors, recyclers, local government, and customers during the development of the plan.

Subd. 7. Agency review and approval. (a) Within 90 days after receipt of a proposed stewardship plan, the agency shall determine whether the plan complies with subdivision 4. If the agency approves a plan, the agency shall notify the applicant of the plan approval in writing. If the agency rejects a plan, the agency shall notify the applicant in writing of the reasons for rejecting the plan. An applicant whose plan is rejected by the agency must submit a revised plan to the agency within 60 days after receiving notice of rejection. (b) Any proposed changes to a stewardship plan must be approved by the agency in writing.

Subd. 8. Plan availability. All draft and approved stewardship plans shall be placed on the agency's Web site for at least 30 days and made available at the agency's headquarters for public review and comment.

Subd. 9. Conduct authorized. A producer or stewardship organization that organizes collection, transport, and processing of architectural paint under this section is immune from liability for the conduct under state laws relating to antitrust, restraint of trade, unfair trade practices, and other regulation of trade or commerce only to the extent that the conduct is necessary to plan and implement the producer's or organization's chosen organized collection or recycling system.

Subd. 10. Responsibility of producers. (a) On and after the date of implementation of a product stewardship program according to this section, a producer of architectural paint must add the stewardship assessment, as established under subdivision 5, clause (9), to the cost of architectural paint sold to retailers and distributors in the state by the producer. (b) Producers of architectural paint or the stewardship organization shall provide consumers with educational materials regarding the stewardship assessment and product stewardship program. The materials must include, but are not limited to, information regarding available end-of-life management options for architectural paint offered through the product stewardship program and information that notifies consumers that a charge for the operation of the product stewardship program is included in the purchase price of architectural paint sold in the state.

Subd. 11. Responsibility of retailers. (a) On and after July 1, 2014, or three months after program plan approval, whichever is sooner, no architectural paint may be sold in the state unless the paint's producer is participating in an approved stewardship plan. (b) On and after the implementation date of a product stewardship program according to this section, each retailer or distributor, as applicable, must ensure that the full amount of the stewardship assessment added to the cost of architectural paint by producers under subdivision 10 is included in the purchase price of all architectural paint sold in the state. (c) Any retailer may participate, on a voluntary basis, as a designated collection point pursuant to a product stewardship program under this section and in accordance with applicable law. (d) No retailer or distributor shall be found to be in violation of this subdivision if, on the date the architectural paint was ordered from the producer or its agent, the producer was listed as compliant on the agency's Web site according to subdivision 14.

Subd. 12. Stewardship reports. Beginning October 1, 2015, producers of architectural paint sold in the state must individually or through a stewardship organization submit an annual report to the agency describing the product stewardship program. At a minimum, the report must contain: (1) a description of the methods used to collect, transport, and process architectural paint in all re-

A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES

2013 Legislative Wrap-Up

•

APPENDICE E

gions of the state; (2) the weight of all architectural paint collected in all regions of the state and a comparison to the performance goals and recycling rates established in the stewardship plan; (3) the amount of unwanted architectural paint collected in the state by method of disposition, including reuse, recycling, and other methods of processing; (4) samples of educational materials provided to consumers and an evaluation of the effectiveness of the materials and the methods used to disseminate the materials; and (5) an independent financial audit.

Subd. 13. Data classification. Trade secret and sales information, as defined under section 13.37, submitted to the agency under this section are private or nonpublic data under section 13.37.

Subd. 14. Agency responsibilities. The agency shall provide, on its Web site, a list of all compliant producers and brands participating in stewardship plans that the agency has approved and a list of all producers and brands the agency has identified as noncompliant with this section.

Subd. 15. Local government responsibilities. (a) A city, county, or other public agency may choose to participate voluntarily in a product stewardship program. (b) Cities, counties, and other public agencies are encouraged to work with producers and stewardship organizations to assist in meeting product stewardship program reuse and recycling obligations, by providing education and outreach or using other strategies. (c) A city, county, or other public agency that participates in a product stewardship program must report for the first year of the program to the agency using the reporting form provided by the agency on the cost savings as a result of participation and describe how the savings were used.

Subd. 16. Administrative fee. (a) The stewardship organization or individual producer submitting a stewardship plan shall pay an annual administrative fee to the commissioner. The agency may establish a variable fee based on relevant factors, including, but not limited to, the portion of architectural paint sold in the state by members of the organization compared to the total amount of architectural paint sold in the state by all organizations submitting a stewardship plan. (b) Prior to July 1, 2014, and before July 1 annually thereafter, the agency shall identify the costs it incurs under this section. The agency shall set the fee at an amount that, when paid by every stewardship organization or individual producer that submits a stewardship plan, is adequate to reimburse the agency's full costs of administering this section. The total amount of annual fees collected under this subdivision must not exceed the amount necessary to reimburse costs incurred by the agency to administer this section. (c) A stewardship organization or individual producer subject to this subdivision must pay the agency's administrative fee under paragraph (a) on or before July 1, 2014 and annually thereafter. Each year after the initial payment, the annual administrative fee may not exceed five percent of the aggregate stewardship assessment added to the cost of all architectural paint sold by producers in the state for the preceding calendar year. (d) All fees received under this section shall be deposited to the state treasury and credited to a product stewardship account in the special revenue fund. For fiscal years 2014 and 2015, the amount collected under this section is annually appropriated to the agency to implement and enforce this section.

APPENDICE E

•

2013 Legislative Wrap-Up

A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES

APPENDICE D

•

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

Your Door, Window, and Trim Specialists Distributors of:

|| PARADE

OF HOMES

SPRING 2013 PARADE OF HOMES AND REMODELERS SHOWCASE

BY THE NUMBERS ENTRIES 374

PARADEOFHOMES.ORG

SPRING PARADE OF HOMES & REMODELERS SHOWCASE

WEB TRAFFIC

ADVERTISING

FEBRUARY 22 - APRIL 1, 2013

PARADE HOMES

63 REMODELERS SHOWCASE HOMES

141 GREEN PATH ENERGY EFFICIENT HOME TOUR HOMES

93,221

180

UNIQUE VISITORS

TV SPOTS AIRED

133,232

1,700

UNIQUE VISITS

RADIO COMMERCIALS AIRED

733,473

24

PAGEVIEWS

PARADE OF HOMES BILLBOARDS

04:39

40

AVERAGE VISIT DURATION

TRAFFIC SURVEYS PARADE OF HOMES: 31 ENTRIES REPORTING

968

REMODELERS SHOWCASE BILLBOARDS

5.51 PAGES PER VISIT

95

41%

BUS SIDES

VISITED VIA SMART PHONE OR TABLET

18 NEWSPAPER ADS

GROUPS PER ENTRY, AVG. 374 ENTRIES =

362,032 VISITS

SOCIAL MEDIA ACTIVITY

REMODELERS SHOWCASE: 20 ENTRIES REPORTING ,AVERAGE

FACEBOOK: INCREASED “LIKES” TO

2,014

329 PER ENTRY

TWITTER:

63 ENTRIES =

525 FOLLOWERS

20,727 VISITS

PINTEREST:

13 BOARDS, 220 PINS LINKING TO MEMBERS AND PARADEOFHOMES.ORG, 174 FOLLOWERS

62

BUILDERS’ DIGEST

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6.1 Million ONLINE IMPRESSIONS

Fall 2013 Parade of Homes and Remodeler Showcase

LATE ENTRIES & ADVERTISING Late entries may be available through mid July. Please contact Casey Hafner, Casey@BATC.org or 651-697-7569.

Space-available display advertising is available through late July. Please contact Kori Meewes, Kori@BATC.org, 612-801-9874.

NEWS EVERYDAY ON THE BLOG: WWW.BATC.ORG/BLOG

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SMC Mocha Meeting at Cities 97 - Studio C

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April 9, 2013 - Clear Channel's Sales Manager, Dean Peterson, presented on Bricks and Mortar Marketing: Creating a plan that sets you apart with a consistent message, followed by a tour of the Cities 97 studio.

SMC Mocha Meeting at Cities 97 Studio C: (from left to right, top to bottom) 1. Dean Peterson, Clear Channel and SMC Chair Jenny Johnson, IDC - Automatic 2. Studio C at Clear Channel 3. A little networking 4. Corey and Troy Dykmann, Keller Williams Classic Realty Northwest, hanging with Meg Dehn, Mega Homes

Presented by:

“Like us, they’re extremely concerned about how all the details come together.”

David Bieker, President DENALI CUSTOM HOMES

MEMBER OF

Ê

ÊÊ

Ê

Ê

Ê

Ê

Ê

Ê Ê (651) 455-8238

xxx/tpvuiwjfxeftjho/dpn NEWS EVERYDAY ON THE BLOG: WWW.BATC.ORG/BLOG

JULY/SEPTEMBER 2013

BUILDERS’ DIGEST

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|| MEMBERS

Welcome New BATC Members

Joining the Builders Association of the Twin Cities is the first step in becoming more active in your industry and in working to gain more business. The following companies have joined BATC over the last three months.

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

Advanced Home Environments

700 Commerce Drive, #130 Woodbury, MN 55125 Gary Hirt 651-731-3900 gary@advancedhome.biz www.advancedhome.biz

America’s Woodshop, LLC

1170 East Cliff Road Burnsville, MN 55337 Tim Watts 952-500-8812 tim.watts@americaswoodshop.com www.americaswoodshop.com

Anchor Builders, LLC

6121 Excelsior Boulevard, #209 St. Louis Park, MN 55416 Barak Steenlage 952-285-9373 barak@AnchorBuildersMN.com www.anchorbuildersmn.com

BuildTools, Inc.

Excelsior, MN 55331 David Stockdale 952-368-3511 www.edgeworkbuilders.com dazzlemn@gmail.com

Fabyanske, Westra, Hart & Thomson, P.A.

First Financial

Perfekt, Inc.

805 Meander Court Medina, MN 55340 Bradley Ganzer 612-382-0044 bganzer@cardsupport1.com www.ffusa.com

1030 North Frontage Road Hastings, MN 55033 Dan Estenson 651-437-1080 aestenson@getperfekt.com www.getperfekt.com

Fort Group

Pronto Heating and Air Conditioning, Inc.

29750 – 371st Lane Henderson, MN 56044 Howard Jostad 612-325-9656 hojos@frontiernet.net

9622 Gander Lane Minnetrista, MN 55375 Timothy Hartman 612-501-1487 tim@hartmancustomhomes.com www.hartmancustomhomes.com

City of Crystal EDA

Hennessey Construction, LLC

4141 Douglas Drive N. Crystal, MN 55422 John Sutter 763-531-1000 john.sutter@crystalmn.gov www.crystalmn.gov

337 Roslyn Place Minneapolis, MN 55419 Steven Hennessey 612-242-0298 steve@hennesseyconstructionllc.com www.hennesseyconstructionllc.com

Commerce Bank

JNS Builders, LLC

7650 Edinborough Way, #150 Edina, MN 55435 Brian Munderloh 952-841-9782 bmunderloh@commercebankmn.com

Crestwood Homes, Inc.

Dolphin Pools, Inc.

P.O. Box 26203 St. Louis Park, MN 55426 Kory Koehler 612-801-6096 korykoehlerinc@hotmail.com

3405 Highway 169 N. Plymouth, MN 55441 Kevin Gardner 763-542-9000 kgardner@dolphinpool-spa.com

Edgework Builders, LLC

2325 Endicott Street St. Paul, MN 55114 Steve Toddie 651-646-0221 steve@jnsbuilders.com www.jnsbuilders.com

Kory Koehler, Inc.

4671 Jamison Avenue St. Michael, MN 55376 Jared Hackenmueller 612-599-6609 jhackenmueller@charter.net

Paulson Construction, Inc.

866 River Lane Anoka, MN 55303 Douglas Paulson 763-427-0033 www.paulsonconstruction.com dougpaulson7@comcast.net

Hartman Custom Homes

Carpenter’s Rule, Inc.

525 – 15th Avenue S. Hopkins, MN 55343 Matt Hanish 952-949-3630 matth@jmscustomhomes.com

800 LaSalle Avenue, #1900 Minneapolis, MN 55402 Gary Eidson 612-359-7621 geidson@fwhtlaw.com www.fwhtlaw.com

8009 – 34th Avenue S. Bloomington, MN 55425 Kate Hamilton 952-851-9525 X205 katrinah@fortgroupinc.com www.fortgroupinc.com

7407 Wayzata Boulevard Minneapolis, MN 55426 Chad Mayes 612-567-4084 chad@BuildTools.com www.BuildTools.com

Parkside, LLC

MC Custom Homes, LLC

2334 Veterans Memorial Blvd.

Andover, MN 55304 Chase Johnson 763-205-1011 chase@mccustomhomesmn.com www.mccustomhomesmn.com

7588 Washington Avenue S. Eden Prairie, MN 55344 Wade Sedgwick 952-835-7777 crystal@prontoheat.com www.prontoheat.com

Residential Living Systems, LLC

9 Fareway Drive Northfield, MN 55057 Joe Gransee-Bowman 952-406-1215 joegb@northfieldwifi.com

Rice Creek Building & Remodeling

6626 E. Shadow Lake Court Lino Lakes, MN 55014 Joe Kouba 612-751-4646 joe@ricecreekbuildingand remodeling.com

River City Underlayment

Spacecrafting Photography and Video

1121 Jackson Street NE, #144 Minneapolis, MN 55413 Mike McCaw 612-353-4073 info@spacecrafting.com www.spacecrafting.com

SpaceMakers Remodeling, LLC

3006 Leyland View Woodbury, MN 55125 Rick Grindland 651-735-1188 www.spacemakersremodeling.com spacemakers@msn.com

Trend Setter Homes, Inc.

14856 Waco Street NW Ramsey, MN 55303 Monique Orieux 763-422-9370 tshinc@comcast.net www.trendsetterhomesinc.com

Twin City Garage Door

5601 Boone Avenue N. Minneapolis, MN 55428 Lisa Donabauer 763-533-3838 lisa.donabauer@twincitygaragedoor.us www.twincitygaragedoor.com

Waldenwood, Ltd.

6585 Edenvale Boulevard, #170 Eden Prairie, MN 55346 John Miller 952-974-2882 www.waldenwood.com remodel@waldenwood.com

Walser Chevrolet

820 – 5th Street S. Hopkins, MN 55343 Scott Miller 507-363-6024 smiller@walser.com www.walsercommercial.com

Wells Fargo – St. Paul

11425 County Road 153 Cologne, MN 55322 Michael Schmillen 612-290-4100 mike@rivercityunderlayment.com www.rivercityunderlayment.com

610 Snelling Avenue S. St. Paul, MN 55116 Karli Spahr 651-205-5239 karli.spahr@wellsfargo.com

SCC-Kitchen, Bath & Home

Whirlpool Corporation

14140 Northdale Boulevard Rogers, MN 55374 Steven Copsey 763-493-2230 steve@sccremodels.com www.sccremodels.com

4725 Ithaca Lane Plymouth, MN 55446 Steve Craig 763-551-9063 Steven_Craig@whirlpool.com www.whirlpool.com

If you’re aware of prospective BATC members, please let Membership Director, Deb Earl know: Deb@batc.org or 651-697-7562.

7250 Hazeltine Boulevard 64

BUILDERS’ DIGEST

JULY/SEPTEMBER 2013

NEWS EVERYDAY ON THE BLOG: WWW.BATC.ORG/BLOG

Structural Precast Concrete For 2-Level Garages

Sport Court Under Garage

What Would uld You Put Under YOUR Garage?

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

Eric Graf, Tom Swedenburg and Dan Raleigh

Sharing … a tradiƟon of over 100 years of construcƟon lending.

x Model Homes x PreͲsold x Consumer ConstrucƟon and Lots

RESIDENTIAL WARRANTY COMPANY, LLC

NEWS EVERYDAY ON THE BLOG: WWW.BATC.ORG/BLOG

651.777.8365 Your Community Bank Since 1911 Member FDIC

lakeelmobank.com JULY/SEPTEMBER 2013

BUILDERS’ DIGEST

65

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Housing First Kick-Off: Where we are; Where we are going MAY 23, 2013 - Housing First, BATC’s independent expenditure political action committee, kicked off the 2014 Election Cycle by taking stock of where the industry sits following an unprecedented 2013 legislative session and then addressed what’s to come for the 2014 elections.

Presented By: THE HOUSING FIRST ADVISORY GROUP

2

Bill Burgess, Chair; Richard Berg, Contract Interiors; Charlie Bradburn, ABC Millwork; Keith Horkey, Keyland Homes; Jason McCarty, Westwood Professional Services; Shawn Nelson, New Spaces; Kathe Ostrom, CN Ostrom & Son; Jim Stanton, Shamrock Development; Curt Swanson, Swanson Homes

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Housing First Kick-Off: (from left to right, top to bottom) 1. Warren Eck, Harkraft; Richard Berg, Contract Interiors; Kathe Ostrom, C.N. Ostrom & Son; Bob Bennett, Fireside Hearth & Home 2. Daryl Doehr and Steve Tourek, Marvin Windows and Doors; Bill Burgess, Lennar; James Vagle, BATC 3. Todd Rapp, Himle Rapp with Tom Halek, Painterati and David Siegel, BATC 4. Jessie Otto and Todd Polifka, Brushmasters 5. Housing First Chair, Bill Burgess, Lennar, addressed the attendees 6. BATC’s lobbyist extraordinaire, Peter Coyle, Larkin Hoffman shared stories from the Capitol 7. Marvin Windows VP and General Counsel, Steve Tourek with David Siegel, BATC and Bill Burgess, Lennar 8. The crowd was attentive 9. Bill Burgess, Lennar with Brian Robbins, Pella Windows and Doors 68

BUILDERS’ DIGEST

JULY/SEPTEMBER 2013

NEWS EVERYDAY ON THE BLOG: WWW.BATC.ORG/BLOG

GET SMART ABOUT INSURANCE FOURSTAR, from Corporate Four, BATC/BAM Endorsed Insurance Agents Written by Mike Hoppe and Larry Larson, Corporate Four and FOURSTAR Risk Compliance Solution “Be good at what you want to be good at, contract out the rest to quality vendors.” This advice from business consultants has merit.

Safe to say, the General Contractor (GC) subbing out construction work does not want to be an insurance agent, or a certificate tracking service. Take heart…help is on the way!

The FOURSTAR program emphasizes the framework to better protect your business.

S.T.A.R. is an acronym for: S-Shifting appropriate risk; T-Transferring risk through insurance agreements; A-Assuming low severity risks; R-Reducing high severity risks.

S-Shifting appropriate risk is the foundation of risk management, but it cannot stand alone.

Obtaining signed contracts from each subcontractor is critical, yet the contract wording must be supported by a strong insurance policy. Collecting certificates from each subcontractor is required by most insurance carriers who insure GC’s.

T-Transferring risk through insurance agreements means you have an insurance policy in force that is expected to respond to certain losses incurred, losses that you prefer not to pay for. The policy uses complex wording to essentially state: “We will ONLY pay for a specific loss if certain conditions are met.” The insurance carrier promises to pay for a loss as long as you follow through with your promise to not only pay the premium, but that you will

NEWS EVERYDAY ON THE BLOG: WWW.BATC.ORG/BLOG

conduct your business in a manner that makes losses less likely, or less costly.

The insurance carriers with best coverage and better pricing for general contractors are requiring better insurance from the subcontractors performing work for the GC. This places greater burden on the GC to know what to require of subs, and to decipher their sub’s coverage based on the certificate provided. It is wasted effort to collect subcontractor certificates that are not acceptable to the GC’s compliance requirement.

What are the consequences?

The GC could be charged additional premium at audit, or the policy may be non-renewed due to non-compliance. More signifi-

cantly, claims could be denied if the GC cannot provide an acceptable insurance certificate and a signed contract for each sub that performed the work. At very least, claims would be paid for by the GC’s policy that should be handled and paid for by the subcontractor’s insurance carrier resulting in a loss history for the GC that could have been avoided.

How do you handle necessary risk management when you are busy running your business?

Contract out your certificate tracking obligation to a qualified service. RMC Solutions is the preferred service, partnering with BAM, to help GC’s better protect their business.

Mike Hoppe and Larry Larson are the endorsed insurance agents for BAM.

JULY/SEPTEMBER 2013

BUILDERS’ DIGEST

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BATC Walleye Invitational

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MAY 31, 2013 - Forty anglers, and 20 boats, set out on beautiful Lake Mille Lacs to compete for cash prizes at the Walleye Invitational.

The winners included: 1st Place Chris Brandl with Brandl Anderson Homes, Inc. and Tim Carlson with Gonyea Homes, Inc.

Sponsored by: 5

2nd Place Ty Brunn and Jason Coonradt with Mega Homes

Millwork Division

6 Commercial

7

Residential

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

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

Walleye Invitational: (from left to right, top to bottom)

Parking Lots, Pathways, Driveways

952.894.9078 70

BUILDERS’ DIGEST

Call for a quote today.

www.jwasphalt.com JULY/SEPTEMBER 2013

1. Thanks to our sponsor, Aaronwood Finish Carpentry, whose team consisted of Jeff Wilken and Al Anderson from Anderson Heating 2. Bob Bennett, Fireside Hearth and Home, reviewing the rules for the day 3. Runner up, Team Mega, Ty Brunn and Jason Coonradt from Mega Homes showing off their excellent catch 4. Winning Anglers: Tim Carlson, Gonyea Homes with Chris Brandl, Brandl Anderson Homes, here showing how real fishermen hold their catch 5. Scott Ziebarth, Lampert Lumber and Kevin Bialke, Sterling Homes 6. Tourney kingpin Bob Bennett explains the size of the fish Curt Christensen, Lee Lyn Construction reeled in 7. The weigh-in went smoothly NEWS EVERYDAY ON THE BLOG: WWW.BATC.ORG/BLOG

Kevin Greene Senior Home Loans Manager NMLS ID: 1001039 612.382.0114 kevin.greene@bankofamerica.com

Jon Ressler Retail Sales Manager NMLS ID: 277085 952.210.8877 jon.ressler@bankofamerica.com

Michael Wolle Senior Mortgage Loan Officer NMLS ID: 533122 612.247.7348 mike.wolle@bankofamerica.com

http://mortage.bankofamerica.com/kevingreene

http://mortage.bankofamerica.com/jonressler

http://mortage.bankofamerica.com/mikewolle

Kristin Meier Senior Mortgage Loan Officer NMLS ID: 533094 651.286.2366 kristin.meier@bankofamerica.com

Kevin Quast Senior Mortgage Loan Officer NMLS ID: 533126 651.295.1052 kevin.quast@bankofamerica.com

Dan Mills Mortgage Loan Officer NMLS ID: 421409 651.334.9589 dmills@bankofamerica.com

http://mortage.bankofamerica.com/kristinmeier

http://mortage.bankofamerica.com/kevinquast

http://mortage.bankofamerica.com/dmills

An exceptional neighborhood deserves exceptional service.

When you call Bank of America, you can rest assured that our top priority is providing personal service with clear and straightforward information so you can make well-informed home financing decisions.

We offer a variety of mortgage solutions for qualified buyers. From the beginning, we will work closely with you to make sure the process is as efficient and convenient as possible.

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. Š2010 Bank of America Corporation.

00-62-0112D 02-2013 ARF36B68

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May Showroom Mixer - Warners’ Stellian

3

MAY 7, 2013 - A big crowd showed up at the May Showroom Mixer, hosted by Warners’ Stellian. Luring them in was the promise of great conversation, networking opportunities and amazing entertainment. In true Warners’ Stellian fashion, an evening of fun ensued with BATC members enjoying treats like Flat Earth Beer, wine, hand-rolled cigars Sponsored by: and great grilled food along with sides and desserts.

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February Showroom Mixer - Designer Marketplace: (from left to right, top to bottom) 1. Rich Riemersma, Imperial Homes; Brad Meewes, BATC/and more by kori; Kevin Kruger, Kruger Financial Services; Karen Filloon, Southview Design; Kori Meewes, BATC/and more by kori 2. Brad Sorensen, Custom Millwork with Alden Pearson and Thom Okoneski, Acumen Legal Advisors 3. Bob Bennet, Fireside Hearth & Home with Gail Ketter and Deb Hitchcock, Builders Club 4. Rich Riemersma, Imperial Homes with Katie Harms, Scherer Bros. Lumber 5. Host Jeff Warner, Warners’ Stellian with Michael Fannon, Associated Bank 6. Lisa Felts, SuperAmerica and RoseMarie Barberio, Grazzini Brothers & Co. 7. Hand-rolled cigars, as always, were a hit 8. JB Biancini, Apex Construction Management with Deb Earl, BATC 9. Brett Remme, In-Focus Systems with Emma Helmer, Carrolls Exterior Remodeling

72

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NEWS EVERYDAY ON THE BLOG: WWW.BATC.ORG/BLOG

GIVING

Y U

MORE HOME SELLING ADVANTAGES

NEW! Whole Home New Construction Program CenterPoint Energy’s Whole Home New Construction program is your pathway to energy-efficient construction.

• Builder participation fees are 100 percent covered by CenterPoint Energy

• Site visits are detailed and consultative

• Scheduling accommodates your building timeline

• You have a unique marketing advantage

©2013 CenterPoint Energy 131358

The Whole Home New Construction Program is offered

by CenterPoint Energy. We are partnering with Residential Science Resources to implement the program.

CenterPointEnergy.com/WholeHome

To enroll in the program or obtain additional information, contact: Residential Science Resources 651-200-3400 info@ResidentialScience.com

|| FOUNDATION

WINDS OF CHANGE

Katie Harms

Greetings Fellow BATC Members, The winds of change are blowing at the Foundation!

I want to take this opportunity to whole-heartedly thank Jan Berg for her contributions to the Foundation. Jan was one of the founding members of BOF (which became the BATC Foundation) and came in to lead the organization at a critical time.

Her leadership and financial

For more information about our projects, fundraisers, or to donate, please contact Executive Director Perri Graham, 651-697-7563, perri@batc.org.

acumen helped to propel the Foundation to its present place.

It is now time to welcome Perri Graham as our new Executive Director. The interview process was exciting and a collaborative effort by several. Much credit goes to David Siegel for his leadership through the hiring process and many thanks to the Board and Wendy Danks for their support.

These are exciting times in our industry and in our Foundation. The time was right to bring in a full time ED for the Foundation and I believe that this investment will enhance our mission greatly. I am excited for you all to meet Perri and embark with us on a new chapter. Keep reading for more info on our new Executive Director, Perri Graham.

BATC Foundation Chair

BATC FOUNDATION WELCOMES

NEW EXECUTIVE DIRECTOR

Perri Graham BATC Foundation Executive Director

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We’re very pleased to introduce you to our new Foundation Executive Director, Perri Graham. Perri comes to us after 30 years in the non-profit world.

For the past ten years she’s served as director for the MinnKota Regional Office of CWSglobal (Church World Service), a faith-based international humanitarian agency that serves communities all across the world. Perri’s extensive experience encompasses fundraising and event management, recruiting and training volunteers, public speaking and media relations, writing and editing, plus, of course, planning and managing a budget.

After 28 years with CWSglobal, Perri decided it was time to take on a new challenge, and the BATC Foundation sounded like a great fit. The daughter of an architect and mother to a surveying student, she already

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knows a lot about the housing business. Perri did her homework, and came to interviews with plenty of knowledge about our Foundation, a great personality and confidence in her ability to take the Foundation to the next level.

Perri’s skills are exactly what the Foundation needs to reach that next level, too. She’s incredibly organized and not afraid to get her hands dirty, two key attributes for an executive director without any staff.

That’s not to say the efforts of the Foundation’s incredibly dedicated volunteers won’t be needed, Perri is sure to keep every one of you hopping, and liking it. BATC staff will also continue to offer support, and look forward to an even stronger integration between BATC and its Foundation.

Perri lives in Roseville with her partner, Diane and son

Cameron. Cameron is 20 and just graduated from North Dakota State College of Science with an AAS degree in Land Surveying and Civil Engineering Technology. He plans to pursue his BS degree at St. Cloud State next spring with the goal of becoming a licensed surveyor. Diane is the Executive Director of the Living at Home Network which supports 39 community based programs which help seniors live independently in their communities.

In her free time, Perri enjoys gardening and working with fiber arts including quilting, spinning and knitting.

Make it a point to stop by to introduce yourself to Perri when you’re next at the BATC office, and look her up at BATC events. You’ll find Perri convincing you to become more involved with the Foundation!

NEWS EVERYDAY ON THE BLOG: WWW.BATC.ORG/BLOG

|| FOUNDATION

BATC FOUNDATION NEEDS YOUR STUFF WAREHOUSE & CRAIGSLIST SALE Tee up for our first annual BATC

Do you have leftover building materials? How about model furnishings and accessories you don’t need any longer? Or maybe you have a few items left in a discontinued line. If so, we want them. Donate them to the Foundation to fill our new Warehouse space, thanks to Gary Kirt and Bell Mortgage. You’ll get a tax writeoff, shoppers online via Craigslist and in person at the Warehouse will get some great stuff, and the Foundation will be able to help more families…one home at a time.

FOUNDATION GOLF OPEN at Legends Golf Course in Prior Lake!

Tuesday, September 24, 2013

NEW STUFF CAN INCLUDE:

For more information or to donate, contact perri@batc.org 651-697-7563

Windows and doors Lighting fixtures Appliances Tile, cabinets and countertops Plumbing fixtures Like-new model home furnishings and accessories

For details or to register: www.BATC.org A BATC Bonus Buck Event!

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photo gallery 1

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June Showroom Mixer Mingle Cabinetry Furnishings Design

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JUNE 18, 2013 - BATC’s Young Professionals Committee and the amazing team at Mingle Cabinetry Furnishings Design played host to over 130 BATC members at an unforgettable Showroom Mixer.

Lots of connections were made inside Mingle’s stunning 25,000 square foot design center, and the mouthwatering BBQ appetizers that were served left everyone satisfied.

Sponsored by: 4

5

6

9

7

8

June Showroom Mixer - Mingle Cabinetry Furnishings Design: (from left to right, top to bottom) 1.This way to the gorgeous Mingle Cabinetry Furnishings Design Showroom in Plymouth 2. Jerry Peterson with Charles Durkin and Cathy Carlson of Privete Bank Minnesota 3. Brett Remme, In-Focus Systems with guest Carly Koehler; Kori Meewes, and more by kori and Todd Polifka, Brush Masters 4. Kimberly Bednar and Todd Polifka, Brush Masters with Katie Harms, Scherer Bros. Lumber Co. 5. Ron Sonnek, Sicora, Inc. with James and Rachel Julkowski, Julkowski, Inc. 6. The ultimate grill master, Andy Michels, Bob Michels Construction Inc. 7. Tricia Hauser Traemann, Mingle; Kelle Lang Staats, Preferred Interactive/Personal Designer Home Visualizer and Sarah Dulong, Ron Clark Construction 8. Tarry Logsdon, RBC Tile & Stone and Katy Hoey, Water Doctors 9. Guests enjoyed mingling in the spectacular 25,000-square-foot showroom 76

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NEWS EVERYDAY ON THE BLOG: WWW.BATC.ORG/BLOG

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GREEN PATH

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A WINNING COMBINATION After working for years to convince the NorthstarMLS® to include energy and green labeling, we’re very pleased to announce that beginning on June 6th you found two new fields when you entered homes to the listing — HERS score and green-certification check off. These fields are tremendously important for new homes in particular, allowing prospective buyers an easy way to assess a home’s energy and environmental qualities.

Just upload your MN Green Path Home Performance Report (HPR) when entering your HERS score.

And, if you have elected to build an Advanced or Master

“We are very pleased to have the NorthstarMLS recognize how energy testing and green building is impacting the purchase decisions,” explained BATC Executive Director David Siegel. “In markets where similar data has been available through MLS services for a number of years, buyers are clearly taking this information into account when making decisions, often impacting sales price and time on market.”

Pioneer Sponsor ___________________________________

Guide Sponsor _____________________________________

Advocate Sponsors _________________________________

Enthusiast Sponsors ________________________________

When we share this fact with you: ”NEARLY 40% OF NEW HOMES BUILT TODAY HAVE A GREEN RATING,” what questions or thoughts come to mind?

Is my house rated?

41.5%

How can I get a rating?

51.4%

Indifferent. I don’t feel it impacts the value of my house.

23.4%

Who cares? Green means nothing.

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Thank You to Our 2013 Sponsors

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1.3%

BuiltGreen™ | www.builtgreen.net

Contact Mary Schweich, mary@batc.org, 651-697-7572 or visit BATC.org for more information.

Certified home, your HPR serves as documentation for the Green Certification check off.

NEWS EVERYDAY ON THE BLOG: WWW.BATC.ORG/BLOG

Shout Out to 2013 BATC Partners

PARTNERS

DIAMOND LEVEL PARTNER _________________________________________

PLATINUM LEVEL PARTNERS _____________________________________

GOLD LEVEL PARTNER _______________________________________________

SILVER LEVEL PARTNERS _____________________________________________________ “The Garage Door Place”

Millwork Division

BRONZE LEVEL PARTNERS ____________________________________________________

Helping our members build their businesses through marketing, advocacy and industry connections NEWS EVERYDAY ON THE BLOG: WWW.BATC.ORG/BLOG

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|| 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. So remember to send all your important news to katy@batc.org!

Awards/Honors

Queen of the Castle

JBDB Honored for Their Work In addition to winning two CotY Awards in Residential Interior Specialty and Residential Interior under $150,000 categories, James Barton Design-Build was also chosen as the Regional Winner in the category of Residential Interior Element. jbdb.biz

Uponor Named 2013 Manufacturer of the Year On April 11, Uponor was honored as the 2013 Manufacturer of the Year in the large-company category by the Manufacturers Alliance, an association providing peer-to-peer training, education and resources which allow Midwest manufacturing companies to continuously grow, improve and stay competitive. uponor-usa.com

Showcase Renovation Takes Home a COTY Showcase Renovation received a 2012 CotY Award for excellence in the Residential Kitchen Category $60,001-$75,000, and an Honorable Mention in the Residential Exterior Category. Kitchen design

by Bryan Meyer of M.A. Architecture and Matt Kruntorad of Meyer, Scherer, and Rockcastle Ltd. for his exterior design. showcaserenovation.com

ON THE MOVE

Still queen of the castle, Minnesota Women's Press has once again named Castle Building & Remodeling, in their May publication, as the Favorite Remodeler of What Women Want! castlebri.com

Edina Magazine Celebrates John Kraemer and Sons Edina Magazine named John Kraemer and Sons Custom Builders as Edina’s Best Builder & Remodeler at their annual Best of Edina reveal. This is the second consecutive year that the company has received this honor. jkandsons.com

MILESTONES AND COOL STUFF Uponor Systems in New Habitat for Humanity® Eco Village Homes Uponor is proud to be an anchor partner for the Eco Village project, which brings homes, family and community together through sustainable design. On April 7th the first four families received keys to their homes in the St. Croix Valley Habitat for Humanity Eco Village project in River Falls, WI. Among the sustainable features in the homes, including solar, geothermal and rainwater harvesting, are Uponor’s plumbing, fire sprinkler and radiant floor heating systems. uponor-usa.com

Innovative Surfaces Opens New Selection Center In May, Innovative Surfaces formally debuted its 5,500 squarefoot showroom located at 2620 Industrial Court, Hastings. The new selection center provides dual screen, photographic slab layout for its exotic stone line, allowing the homeowner to truly experience how their selected stone will look in their specific countertop layout.

Uponor Expanding for Fifth Time to Meet Demand In May, Uponor North America broke ground at its headquarters facility in Apple Valley to add 17,500 square feet of manufacturing space to its already 212,500 square foot facility. The addition is expected to help meet forecasted growth for crosslinked polyethylene (PEX) tubing for plumbing, fire sprinklers, and radiant heating and cooling systems.This will be the fifth expansion for the 1990built facility which houses the North American corporate offices, manufacturing facility and Uponor Academy, the company’s onsite training center. uponor-usa.com

innovativesurfaces.com

Westwood Acquires Tipton Engineering On January 25, 2013, Eden Prairie based Westwood Professional Services Inc. acquired Tipton Engineering, Inc., a residential engineering and planning firm located in Garland, Texas. The acquisition of Tipton is another step toward strengthening and expanding Westwood’s national presence and enabling the company to leverage well-established, highvalue residential engineering services in their office locations as the market rebounds. westwoodps.com

NEW PEOPLE & PROMOTIONS Minnesota Nursery & Landscape Association Appoints New Executive Director MNLA has appointed Cassie Larson as its new Executive Director.

Since November, Larson has provided dynamic and thoughtful leadership as the company’s interim executive director. MNLA is thrilled to introduce Cassie in her permanent role effective since April. mnla.biz

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>>

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Got News?

Send it on over!

Westwood Elects 2013-14 Board Westwood Professional Services, Inc. recently announced its 201314 board. All board members are nominated and elected by Westwood shareholders for a one year term.

New Board Members: • Jay Wittstock, PS, Office Leader • Steve Windingland, PE, Wind Energy Director

Look Who Has Joined Fullerton –The Builder’s Choice Two new contractor sales representatives joined Fullerton -The Builder’s Choice. Please welcome Mark Redman to the company’s Glencoe, MN building center and yard and Al Longsdorf to the Ellsworth, WI building center and yard. fullerton.lbr.com

PJ Disch Joins Westwood’s Land Group Re-elected Board Members: • Paul Greenhagen, PS, President • Aaron Tippie, Power Sector Leader • Jason McCarty, PE, National Land Sector Leader

In March, PJ Disch joined the Eden Prairie office of Westwood Professional Services, Inc. Disch will provide civil engineering design and project management for commercial projects. westwoodps.com

westwoodps.com

David Hempel Joins Westwood’s Residential Group David Hempel will bring over 30 years of experience to his new role as a project manager and construction coordinator for the residential land group at Westwood Professional Services, Inc. westwoodps.com

Landform Expands Landform’s Minneapolis office just got bigger. The firm added two new and talented employees: Tracey Kinney and Trish Stinnett.

Tracey joined the Planning and Infrastructure studio as a Planner II and Trish joined the Commercial studio as a Designer I.

missed by his wife of 32 years, April, and their two sons Jason and Leif. Mark, Unit Prep Painting, recently joined the Associates Committee and showed great enthusiasm for involvement in the industry.

A Life Well Lived Our condolences to the family of Dean Mittelstaedt, Mittelstaedt Brothers Construction, Inc. and Mittelstaedt Homes, LLC, at the passing of his mother, Florence Mittelstaedt, on March 31, 2013.

Florence enjoyed 93 precious years. She was a loving wife, beloved mother to eight children, and a cherished (great) grandma.

Marlin Rygh, Age 88

landform.net

CONDOLENCES Unexpected Goodbye Mark Bowen of Burnsville, formerly of Edina, passed away unexpectedly April 16, 2013. He will be

Our deepest sympathy to the Rygh family, Custom One Homes, for the loss of their father, Marlin Rygh, who passed away on June 9th. Marlin was a beloved father, dedicated grandfather, entrepreneur, teacher, realtor, land developer and follower of Christ. He will be missed.

IN THE REAL WORLD, NOTHING PROTECTS BETTER THAN JAMES HARDIE SIDING. ®

To learn more, please contact Masha Kushnir Masha.Kushnir@jameshardie.com 612.212.4646

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©2013 James Hardie Building Products, Inc. All rights reserved. TM and ® denote trademarks and registered trademarks of James Hardie Technology Limited. AD1330

A home is your customers’ biggest investment. Make sure it can stand up to whatever nature throws its way. To see how James Hardie protects against the elements, visit JamesHardie.com/realworld.

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When quality building products, right price, expert people and great service come together.

That’s Synergy.

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