RecoRd TickeTs sold aT HiPac NigHT i HigHligHTs oF 2011 i iNTeRioR desigN: WHaT’s HoT? WHaT’s Passé?
THe oFFicial PUBlicaTioN oF THe HoMe BUildeRs associaTioN oF loUisVille, iNc.
VolUMe 26, No.12 deceMBeR 2011
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The Story of Homeownership in Today’s Ecomony contents
vol. 24, no.12 december 2011
Low Awareness of Possible Changes POS/LAKE Research, May 2011 (N=2,000 likely voters) THE OFFICIAL PUBLICATION OF THE HOME BUILDERS ASSOCIATION OF LOUISVILLE, Have you seen, read, or heard anything about proposals being considered in INC. Washington regarding changing the home mortgage interest deduction?
2%
POS/LAKE Research, May 2011 (N=2,000 likely vo Have you seen, read, or heard anything regarding d requirements when purchasing a home?
association news 10 Highlights of 2011 13 How are SMC Members Selling 19% the Advantages of Newly Built Homes in Today’s Market?
27% 71%
14 Interior Design: What’s Hot? What’s Passé? What’s Coming? 16 Celebrate Your Success: Apply for a Louisville Remodeling Award
81%
departments
Yes
No
Don’t Know
Perspective Letter...............................5
Yes
No
Member Meetings............................25
feature
President Billy Doelker,Economy Key Homes, LLC, commented on The Story ofHBAL Homeownership in Today’s
additional harm the industry. The governmental regulation Fairy tales aside, everyone wants thefacing story of homeownership to “have a happy ending, however the AmeriAD&C that developers and builders continue can public isof stillthe deciphering theloans moral of the affect most recent chapter of buyers getting intoalso mortgages that have on the is available for that consumers to are over theirto heads andan fearimpact of losing their jobs. product NAHB hasthat conducted recent surveys measure how purchase. Americans value homeownership. page 6 What is the Story? Homeownership is the lead character in the American dream and the American economy. The antagonists are the legislative threats that have the potential to eliminate that dream for many people. We need to work together to preserve homeownership as an American way of life. The plot of this story depends on people taking action. Homeownership is a valuable catalyst for job creation, which can create a stronger economy and a brighter future for our country. People need to realize the positive role homeownership plays and the current threats against it. How Can Members Take an Active Role in Telling the Story? There’s a powerful connection between housing, families, the economy and local communities. While the general public is basing its opinproducts events ion of homeownership on sound bites and headlines, they still value Record Tickets Sold at HIPAC Night Outdoor Heating & Light homeownership. What they might be missing, however, is connecting HIPAC Night held at Locust Creek Clubhouse Products every member should know about. with the resources in their own backyards that can offer them a difOctober 3, 2011 was a huge success page 21 page 22ferent perspective of homeownership. That’s where YOU come in. As HBAL members, you are experts in the field and have established the credibility that people can respect as a trusted resource. To better com-
municate the story of homeownership and how Member News..................................26 mean even more harm to the economy, memb word about the American dream and how to p New Members..................................28
“It is paramount that we spend tim Milestone peers Members.........................28 about the true threats to ho that exist today. Congress, and no Honor Roll.......................................29 now acting in ways that contradict aspirations of the majority of Ame Calendar of Events...........................30 constituents.” – Chuck Kavanaugh
RecoRd TickeTs sold aT HiPac NigHT i HigHligHTs oF 2011 i iNTeRioR desigN: WHaT’s HoT? WHaT’s Passé?
Doelker suggests that members include the homebuilding could have on the economy whe friends and colleagues. “If I were talking to a fri the correlation between building new homes a came a significant force in our economy it woul HBAL Executive Vice President Chuck Kava importance of telling the story of homeown housing industry. “I think that the majority o sociation has used when speaking to various au the ‘housing industry,’ but one of the most i the NAHB survey is that Americans respond b NAHB has recentlyis conducted surveys ownership.’ of how relateCover: to,Theand that ‘home We ca Americans feel about homeownership. Here is their story. dustry most when we place this very persona work and represent the industry on our produc homebuyers.” THe oFFicial PUBlicaTioN oF THe HoMe BUildeRs associaTioN oF loUisVille, iNc.
VolUMe 26, No.12 deceMBeR 2011
Find expanded content and connect with others! www.Facebook.com/HBALouisville
december 2011 3
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4 louisville builder • hbal.com
locally produced by:
sponsored by:
perspectiveletter Home Builders Association of Louisville, Inc.
1000 North Hurstbourne Parkway Louisville, KY 40223-4012 (502) 429-6000 FAX (502) 429-6036 Email: newhomes@hbal.com Web Site: www.hbal.com 2011 OFFICERS Billy Doelker President
Happy Holidays to You and Your Family by Chuck kavanaugh
Rob Eberenz, Jr. Vice President Bob Thieneman, Jr. Treasurer Perry Lyons Secretary Stan Logan, Jr. Associate Vice President Charles J. Kavanaugh Executive Vice President BUILDER DIRECTORS Terry Chynoweth Pat Durham Michael Isaac Joe Kroll P. R. Lancaster David Lurding Jeremy McGraw George Miller Michael O’Dea Chris Osborne Rocco Pigneri David Rateau Dave Smith Todd Stengel ASSOCIATE DIRECTORS Bill Bardenwerper Davis Boland Joe Dumstorf David Ernst Dale Hellmann Buddy Kittle Paul Miele David Mikels Teresa Morgan Jeff Ratanapool Tom Raver Joe Simms Derek Smothers
HONORARY Builder DIRECTOR
Clifford Thieneman, Sr.
HONORARY associate DIRECTORs Frank Arnold, Sr. Richard Bean PUBLISHER Charles J. Kavanaugh EDITOR Tara Brinkmoeller Advertising Melissa Mattingly Kimberly Greenwell 502.429.6000 GRAPHIC DESIGN Scott Dudgeon Writers Stacy Smith Rogers HBAL Issues Nancy Miller Product Features HBAL Staff PRINTING United Graphics
As we close out 2011 I find myself feeling grateful for many things. These past several years have been challenging for our industry to say the least, but I am constantly inspired and re-energized by the resolve of our members. Your strength in leadership and innovation for your business has challenged me to lead with the same passion and vigor at the Association. It is my hope that you have received the same feeling of support, motivation, and positive outlook from your Association leadership and staff. Our mission is based in member service – moreover, in providing opportunities for you to grow and develop business. Just as you do in your business, we are constantly looking for new or better ways to provide the services most needed by our customers – the HBAL members. If we can provide you with any service or support that you feel we are not currently offering, please let us know how we can make your membership more valuable in the future.
“Your strength in leadership and innovation for your business has challenged me to lead with the same passion and vigor at the Association.” Although we have not experienced the level of economic uptick that was predicted by many economists in the industry (and that we were all hoping for), I think that our Louisville market has experienced some positive indicators that we are beginning our journey up again. I am inclined to think this because of some of the positive outcomes for our Association events this year. Most notable is the success of Homearama 2011 at Norton Commons. With 21 homes – the most ever on one site – all within a price range of $450,000 to $700,000, and the fact that 16 homes were sold prior to the event, I can’t help but think that there is hope for our future. I’m also encouraged by the amount of confidence exhibited by our Homearama site selection committee, which felt comfortable with a dual site event for 2012. We’re off to a great start already for Homearama 2012 at Rock Springs and Shakes Run with contracts already in hand for lots at both sites. I think it’s appropriate to once again describe my expectations for next year as cautiously optimistic. I feel like I have stated this before, as recent as last year
describing my ideas about 2011, but the end of this year has a different feeling than those of the recent past. There is momentum in pockets of our industry that I believe have the chance to expand and grow, meaning increased business opportunities for us all. Next year’s elections will have an effect on business in all industries, but I think we will be poised for improvement and on the road to the “new normal” by this time next year.
“There is momentum in pockets of our industry that I believe have the chance to expand and grow, meaning increased business opportunities for us all.” As hard as it is to stop thinking ahead and planning for the future during this time of year, it is my hope that you take the time to live in the moment and enjoy today. Cherish this time with your friends, family and loved ones. Celebrate your successes, no matter how small or large – you’ve made it through some of the most challenging times for our business and industry. We are thankful that you have continued to allow us to be a part of your journey and look forward to continuing to move forward with you. Again, Happy Holidays and we wish you a prosperous New Year.
Charles J. Kavanaugh Executive Vice President Home Builders Association of Louisville
HBAL.COM
Visit our Facebook page for more from Chuck Kavanaugh and to give us your feedback. FACEBOOK
december 2011 5
O SOL
D
nce upon a time...
in a land not so far away, there was an economy which had experienced some rough times. The people of the land were sad. They missed the days when the economy was good and homeownership was valued. And, so they were afraid.
One day, an army of builders with new floor plans and ideas for rebuilding the economy came into the land. The people turned them away, proclaiming that they didn’t want to repeat the same story that had hurt them before. “Homeownership was the problem,” they said. But, the builders told them it was a different story now and they have been working hard with bankers and Realtors to make sure the people would be safe. They warned them of threats to their American dream and how the people of the land could play a role in making sure that dream would be possible and responsible. The builders, suppliers, bankers and Realtors were tired, but diligent in telling and re-telling how things had changed. It took a long while for the people to understand, but as they explained why investing in building new homes was good for the economy and that taking away the dream was bad, the people slowly gained confidence. Little by little, the messages were understood. People, who had been hesitant for quite a while, listened more and engaged with them. Before long, they understood and looked more optimistically toward the day when everyone would live happily ever after ..
f 6 louisville builder • hbal.com
The Story of Homeownership in Today’s Economy By Stacy Smith Rogers, Grace Communications, LLC
Blake Smith works in NAHB’s communications office and he said that consumers are not hearing some important messages they need to hear to better get a grasp of the entire housing story. “In recent years, homeownership has been associated primarily with the financial aspects of the deal. What has been forgotten is that homeownership has many benefits that appeal to people’s core values. Homeownership provides peace of mind, a sense of accomplishment and long-term security,” he explained. What Does the Public Currently Believe? According to the survey conducted by NAHB in August, the majority of Americans believe changes are needed in the industry, even if it makes homeownership harder to obtain. Currently, less than two of five Americans solidly support continuation of key policies that have been the underlying bedrock of homeownership. Few are aware of the drastic nature of changes proposed. However, Americans continue to value homeownership ... • Almost all (95 percent) of the people polled said they are happy with their decision to own a home. According to the survey, that sentiment held true even among people whose homes are “under water.” • In addition, 83 percent of those who owe more on their mortgage than their home’s current value said they are happy with their decision to own a home. • A significant majority (75 percent) think owning a home is the best long-term investment they can make and is worth the ups and downs of the housing market. • Among people who don’t currently own a home, 73 percent hope to own a home in the future, the poll found.
What are the Current Threats to Homeownership? Policymakers are pushing for sweeping tax code changes that could prevent millions of families from ever achieving homeownership. Some of the proposals under consideration include eliminating or reducing the mortgage interest deduction and the deductions for property taxes and the interest on home equity loans. Industry experts believe that this would hurt those who have played by the rules and sacrificed to get to where they are today and would send shockwaves through the economy. While some people claim that the mortgage interest deduction primarily benefits the wealthy, younger households and middle income home owners are actually the biggest beneficiaries. Abolishing or limiting the mortgage interest deduction could also impose serious damage on millions of middle-class home owners by further depressing home values. A number of members of Congress support abolishing Fannie Mae and Freddie Mac and ending the federal backstop to housing. NAHB’s research indicates the result of that would drive up the cost of long-term financing and destabilize the housing market. A reliable supply of affordable 30-year, fixed-rate mortgage financing is essential to a vibrant housing market. NAHB emphasizes that Congress should ensure that the federal government plays an appropriate role in keeping mortgages readily available and affordable for America’s working families. The proposed minimum 20 percent down payment for qualified residential mortgages would quickly become the nationwide standard and would put homeownership far beyond the reach of most first-time home buyers and middle-class households. NAHB estimates that it would take 12 years for the typical family to save enough money for a 20 percent down payment on a median-priced single-family home. NAHB emphasizes that the housing market was created by irresponsible lending, not low down payment mortgages and that prudent underwriting standards would ensure that buyers can afford their mortgage as opposed to down payment requirements. december 2011 7
The Story of Homeownership in Today’s Ecomony
Low Awareness of Possible Changes POS/LAKE Research, May 2011 (N=2,000 likely voters) Have you seen, read, or heard anything about proposals being considered in Washington regarding changing the home mortgage interest deduction?
POS/LAKE Research, May 2011 (N=2,000 likely voters) Have you seen, read, or heard anything regarding down payment requirements when purchasing a home?
2% 19% 27% 71%
Yes
No
Don’t Know
81%
Yes
No Source: NAHB
HBAL President Billy Doelker, Key Homes, LLC, commented on additional harm facing the industry. “ The governmental regulation of the AD&C loans that affect developers and builders also continue to have an impact on the product that is available for consumers to purchase. What is the Story? Homeownership is the lead character in the American dream and the American economy. The antagonists are the legislative threats that have the potential to eliminate that dream for many people. We need to work together to preserve homeownership as an American way of life. The plot of this story depends on people taking action. Homeownership is a valuable catalyst for job creation, which can create a stronger economy and a brighter future for our country. People need to realize the positive role homeownership plays and the current threats against it. How Can Members Take an Active Role in Telling the Story? There’s a powerful connection between housing, families, the economy and local communities. While the general public is basing its opinion of homeownership on sound bites and headlines, they still value homeownership. What they might be missing, however, is connecting with the resources in their own backyards that can offer them a different perspective of homeownership. That’s where YOU come in. As HBAL members, you are experts in the field and have established the credibility that people can respect as a trusted resource. To better com-
municate the story of homeownership and how the current threats can mean even more harm to the economy, members can help spread the word about the American dream and how to protect and invigorate it.
“It is paramount that we spend time educating our peers about the true threats to home ownership that exist today. Congress, and now regulators, are now acting in ways that contradict the dreams and aspirations of the majority of Americans, and their constituents.” – Chuck Kavanaugh
Doelker suggests that members include the positives that potential homebuilding could have on the economy when they are talking with friends and colleagues. “If I were talking to a friend, I would emphasize the correlation between building new homes and jobs. If housing became a significant force in our economy it would have a huge impact.” HBAL Executive Vice President Chuck Kavanaugh emphasized the importance of telling the story of homeownership, rather than the housing industry. “I think that the majority of messages that the association has used when speaking to various audiences has been about the ‘housing industry,’ but one of the most important takeaways of the NAHB survey is that Americans respond better to what they best relate to, and that is ‘home ownership.’ We can begin to help our industry most when we place this very personal issue to all of us who work and represent the industry on our product’s main consumer – the homebuyers.”
Download the NAHB presentation “Comminications & Messaging Strategy” at www.hbal.com/site/newsroom/news-links.html HBAL.COM
8 louisville builder • hbal.com
Kavanaugh also made reference to educating people on the current threats of homeownership. “It is paramount that we spend time educating our peers about the true threats to homeownership that exist today. Congress, and now regulators, are now acting in ways that contradict the dreams and aspirations of the majority of Americans, and their constituents.” HBAL Director of Communications and Public Affairs Tara Brinkmoeller elaborated, “It is important for all of us involved in the housing industry to continue to convey a consistent and similar message to Americans about the value of homeownership, which we know the majority of the public aspires to.” NAHB offers valuable information that helps educate members on the threats against homeownership and the important role that owning a home plays in our society. For more information, visit nahb.org
Few Concerned Homeownership is Heavy Under Attack N=1,991 To what degree do you think home-ownership, as we know it, is under attack?
12% 14%
43%
32%
Heavy Moderate Just a little Not at all Source: NAHB
Top Three Facts That Consumers Need to Better Understand from Billy Doelker
1. It’s a great time to buy new homes over resale or foreclosure because of the prices that are available for a much more energy efficient home with all new products and warranties. 2. Mortgages are still available for people with good credit and jobs. Interest rates are still at record lows. 3. Homeownership is still a top priority for Americans.
Show Sponsor:
March 2-4, 2012 Kentucky Expo Center, South Wing B & C
Members of the Home Builders Association are encouraged to call or e-mail now to be included in the 2012 Home, Garden & Remodeling Show presented by Window World. Booths are on sale now and as a member of the HBAL you do not want to miss out on your opportunity to get booth space in one of the top Home Shows in the country and take advantage of your member discount. What better way to jump start your business for 2012 than the face to face contact with thousands of qualified consumers touring the Show Floor.
Call 502-429-6000 or E-mail Gail Schell at gail@hbal.com or Jessica Embry at Jessica@hbal.com. ™
Visit our website for more information.
Produced by:
www.LouisvilleHomeShow.com december 2011 9
10 louisville builder • hbal.com
Highlights of 2011 By Stacy Smith Rogers, Grace Communications, LLC
HBAL staff and leadership spent a great deal of time in 2011 overseeing new, creative and productive ways of operating the association and connecting members with potential consumers. Beginning in January, HBAL’s goal was to continue the value-driven services and benefits to members in ways that help contribute to being successful in a challenging economy. And, challenging it has been. However, HBAL has remained a strong, vibrant association because of the commitment of its members. 2011 demonstrated the resolve and dedication of members who believe in their industry. Builders and suppliers listened to consumers and adjusted their business plans and marketing strategies to be prepared for when the economy gets stronger. Instead of taking a seat on the sidelines, they worked hard to ensure their businesses stayed in the game, working together to help improve consumer confidence in the housing industry. Builders introduced home plans with smaller, more efficient floor plans that are greener and smarter. Realtors responded to the challenge of marketing newly built homes without specs and promoting to consumers that these changes in the building of new homes were just what they need today -- homes they can realistically afford that satisfy their current and future needs. The association worked hard to communicate to the public and media that the Louisville home building community was poised and ready to deliver products and services that made positive impacts on the economy and helped preserve their own version of the American dream. The efforts put forth in this year will continue to build a stronger awareness of the local industry in 2012. Looking back on 2011, there were many positives. Some of the highlights of this year include: Homearama Homearama 2011 at Norton Commons was the largest single site in the event’s history. With 21 projects on display, 18 builders and more than 200 associate members were connected to 40,000 consumers during the 16-day Homearama event. The event offered an important reminder about the value and excitement surrounding homeownership, especially in the wake of a slowly rebounding economy. What was perhaps most significant about the host venue this year was the emphasis on being part of a community of homeowners, where neighbors know neighbors and friends are welcome. That in and of itself is a vital part of the American dream of homeownership. Strategically positioned just feet away
from each other, the homes showcased cutting edge designs that were different from any other Homearama to date. HBAL Continues to Hold 2nd Largest Ranking HBAL continues to achieve the ranking of the second largest HBA in the country for the third straight year. A successful membership drive brought in 124 new members. The retention rate isn’t too shabby either -- averaging at 80 percent! The ranking serves more than just a sense of pride for HBAL. It also demonstrates the strength of the building industry when compared to other HBAs across the country.
Commercial Council HBAL has increased member participation in the Commercial Council to 121 members and has expanded the reach and influence of the Council in the community. The formation of the Council in 2008 brought to light the fact that the issues and challenges facing both local commercial and residential building were much the same. In addition, similar regulations and laws that affect the ability to develop and build could be more effectively addressed with a unified voice representing both industries. Government Relations Because of the tenacious efforts of HBAL members, the association has been able to effectively communicate with legislators and government officials throughout the year. HBAL’s introduction to Mayor Greg Fischer began long ago, and the ongoing dialogue with him during the campaign in 2010 allowed many opportunities to communicate the role that home building plays in Metro Louisville. Volunteer members and staff of the association remain engaged with the new Metro Louisville administration in 2011. As a result, a very healthy business- and development-friendly atmosphere has been strengthened. In addition, HIPAC Night produced the largest sale of tickets in the event’s history. HBAL is positioned to create more highlights in the coming year, with the creation of a new website that is designed to make it easier for consumers to navigate and connect with the products and services of members. The new site will simplify and separate the user experience for members and consumers and improve search functionalities, while also incorporating video hosting and serving as a valuable resource for both members and consumers. december 2011 11
How are SMC Members Selling the Advantages of Newly Built Homes in Today’s Market? By Stacy Smith Rogers, Grace Communications, LLC
The Sales & Marketing Council (SMC) is comprised of professionals who are dedicated to promoting the new home building industry and who are in the trenches, connecting with potential homebuyers on a regular basis. Three local SMC members, Susan Graf, Norton Commons, Pat Durham, Pat Durham Builder, Inc., and Teresa Morgan, ERA Kepple Keene, share their perspectives of how they’re promoting the local industry ... Q: What are the top three major advantages of buying a newly built home that you are communicating to your clients? SG – 1. The fabulous selections that the buyers get to choose from – tile, appliances, granite, hardwood flooring, trim, etc ... 2. The quality of the new home construction and the outstanding features. One example in Norton Commons is that all of our homes have at least 10-foot ceilings on the first floor, which makes the home feel open and welcoming from the minute you step inside. 3. Energy efficiency is a big selling point. In Norton Commons, all the new homes are Energy Star-certified and come with the one-year builder’s warranty. PD – 1. New construction allows customers to get exactly what they want in a home. 2. New homes are built to new and more stringent building codes. There are more electrical outlets which are tamper-resistent and arc fault protected. This improves safety and convenience for your family. 12 louisville builder • hbal.com
Building products and methods are better engineered and manufactured than ever before. Today’s homes are more energy efficient, with the possibility of Energy Star designation, that adds resale value and immediate energy savings, especially when compared to an older, existing home. 3. If you decide to buy your own home to suit, you can design and build the home the way you want for your needs, wants and lifestyle. It can have your signature all over it, and the process is fun – it’s the American Dream! TM – 1. Resale will be stronger with a new home, especially with all nightmares people are finding out after the closing of a short sales and foreclosure. There are so many undisclosed problems or updating that needs to be done. If they would consider to have one built, they may not get the “steal of a deal” but they can choose to build less square footage, because they are building what they want. There’s no unused space and they get exactly what they want. 2. One of the things I try to make buyers realize, is that if they buy
Selling the Advantages of Newly Built Homes a new construction house, they are truly helping our economy get back on its feet. Every new home that is built equates to the economic impact of putting three families back to work for one year. 3. Because of codes and all the new products, they will save so much in utilities. New homes are safer. In a new home you most likely will have 10-15 years before you will be replacing big ticket items. Over that period, that is a pretty big savings. When you buy a foreclosure or short sell you may be pumping big monies into that house every year.
PD – Building in one of the premier new neighborhoods in Louisville with the opportunity to take advantage of the latest in design, interior decorating, new products to the market and many upgrades for the cost of standard products is a big factor. Since many suppliers want to showcase their latest, greatest products and advancements, they are willing to discount them for the show for the exposure to over 40, 000 prospective buyers. There is also pride factor in knowing your home was a Homearama home, and it’s a future selling point.
One of the things I try to make buyers realize, is that if they buy a new construction house, they are truly helping our economy get back on its feet. Every new home that is built equates to the economic impact of putting three families back to work for one year.
TM – I think what seals the deal in building a Homearama home is knowing that each participant is using that home to showcase their work. They usually go all out in putting extra special things, sometime at little or no extra cost just so buyers can get excited about their products or services.
Q: Are consumers responding to those top three/four things? If not, what can builders do to better address their requests?
SG – In Homearama this past summer, the builders who were at the front of their houses and talking to the people as they walked through the houses and listened to what the future buyers were asking for seem to be thriving. I think that listening is key to knowing exactly what the customer wants or needs.
- Teresa Morgan
SG – The builders seem to be listening to the buyers and adapting their construction and selections to the buyer’s desires. They also have embraced the Energy Star building process and are making the houses so much more efficient for the buyers and helping keep their utility costs down.
“The key to try to answer some of those concerns is the emphasis that “now is the best time to build,” due to low interest rates (historical lows), contractor availability and lower component pricing.” - Pat Durham
PD – Consumers are responding to these issues, just not in the quantities we have seen in the past. Many of the objections are out of the control of the builder or Realtor, such as the poor economy, consumer’s fears of job retention and existing homes that will not sell as quickly as we all want. The key to try to answer some of those concerns is the emphasis that “now is the best time to build,” due to low interest rates (historical lows), contractor availability and lower component pricing. TM – Buyers seem to be listening, but not always reacting. I would like to see more awareness in the media that builders are really building homes. It is like the community has forgotten that building is an option. I tell clients, “You don’t need to be extravagant. You may want to downsize, but building can actually be less money if you are truly getting what you want where you want it. You could get just what you need for now and in the future in a new home that has an effective floor plan.” Q: In regard to securing a contract for a future Homearama home, what really “seals the deal” with prospective buyers? SG – Our Homearama buyers really loved the fact that the builders, suppliers and subcontractors were able to increase the allowances and finishes and be able to discount or absorb the cost to showcase a new product. The buyers were able to get the advantage of the upgrade without the cost.
Q: Do you have any advice for builders/suppliers in regard to better positioning their products so consumers will respond?
In Homearama this past summer, the builders who were at the front of their houses and talking to the people as they walked through the houses and listened to what the future buyers were asking for seem to be thriving. - Susan Graf
PD –The best way for suppliers to position their products is to co-op advertising with the builder to showcase their products that are in the home to the consumer. “Point of purchase” signage, brochures, “open house” visits with the public and internet marketing will also help the supplier to showcase their product. So many opportunities present themselves through the internet, through blogging, e-mail marketing, Facebook and Twitter, that a concerted effort to wrap all of the marketing tools that suit a particular situation together can be a terrific success. Also, don’t forget the opportunities available through HBAL, such as the Home, Garden and Remodeling Show, the Home Product Expo, Louisville Builder Magazine, Homearama, Table Top Night and the many networking opportunities as a sponsor of various meetings. Though traditional advertising methods are still effective for given situations, examine your individual budgets to see what fits you best. TM – I think builders and suppliers need to network more than they ever have. They should be trying to come to agents’ offices to let those agents know what they do and how good they are at what they do or what is special about their product. Every one of us in the industry needs to constantly brainstorm with each other and think of new ways to get in front of new people just to tell them what they do. We need to be upbeat and enthusiastic, I think these buyers can sense when we are scared. They need us to lead the way out of this slow period. We need to communicate that we do not want people to spend more than they can afford. We will not try and get them to build things they don’t need or will not be good for resale.
december 2011 13
14 louisville builder • hbal.com
Interior Design:
What’s Hot? What’s Passé?
What’s Coming? By Nancy Miller
The more things change, the more they stay the same” may be a catchy phrase but it sure doesn’t apply to interior design! When Louisville Builder started exploring the latest trends and biggest news in design, we soon found that exploring was leading to exciting discoveries. We learned that achieving simplicity in design is not as simple as one would think. When we asked the pros where to start the process of designing a room or a house, they were quick to tell us. We also learned that it’s just as important to know when to stop as it is where to start! Eight of Louisville’s top names in interiors and the country’s color guru at The Color Association of the United States helped us become design savvy. They are Jeanie Burrus and Greg Burrus of Burrus Architecture; Leslie Harrington, Executive Director of the Color Association of the United States, in New York; Amber Hensgen of 21st Century Flooring America; Lisa Knight of Lisa Lynn Design Services; Stacye Love of Stacye Love Construction; Eric Steinbrenner of Brecher Lighting; Amanda Tyler of The Curtain Exchange; and Leslie Whitehouse of Cherry House Design. We’re passing ––our new savviness along to you. There’s lots you’ll want to know and put to use. And we’re going to tell you why Old Goat may be coming to a home near you! The Design Pros Speak Their Minds Love: Louisville is becoming a little more open to a transitional style and is heading toward Metropolitan design. Both of those allow for a cleaner palette than does traditional décor. I’m enjoying it because it’s fresher than the same old traditional/English look or the old European look. Metropolitan is even cleaner than transitional. Pottery Barn has had a major influence on changes in tastes, and Restoration Hardware has helped strengthen the trend. I also like an eclectic mix, but at the same time want to adhere to a clean palette. Of course, I want my clients to have a chance to mix their own personalities in the design.
Jeanie Burrus: One of the overwhelming responses we had to the house we designed for Homearama was that people liked it because of its clean lines; there was not a lot of clutter, and there was a lot of light. Greg Burrus: We tried to focus on a few big, bold accessories, not a lot of knickknacks. We leaned toward functional, cleaner lines for a Metropolitan, lofty look as opposed to a traditional house. Love: I clean up a lot of mistakes that other people have made. The building may have happened with the left hand and the right hand decorated the home. The result is that the two don’t work together. I don’t know how to separate the architecture and construction. To build a house without doing the interior design doesn’t make sense. The reason you’re creating a space is to fill it with furniture to live in it. Knight: “Where do we start?” is a frequent question I hear. I always start with the kitchen because it’s the focus of the home. Usually everything is open and comes off the kitchen. Three or four rooms may be seen from the kitchen. I can tell a client’s style based on what kind of cabinets they want. After selecting the cabinets, the next step is to choose flooring and lighting. Someone may have furniture or, perhaps, some really nice rugs that will dictate how a house will feel. Greg Burrus: As an architect, I first come up with the floor plan. While working on it, I begin doing templates with furniture to be sure everything fits and that there will be good circulation and traffic patterns. After that comes making a list of new furniture that will be needed. Love: Homeowners really struggle to understand how to create a design. I explain that the way to do that is to coordinate and to make a commitment to a style. When I was young, I used to fall in love with an accessory and would bring it home even though it had nothing to do with the rest of the room. But I learned that it’s important to create december 2011 15
interior design a budget and build a room based on that. I cured myself quickly from buying random accessories. I never buy individual items. Never. Good design isn’t about buying an accessory to fill a space; it’s about designing a room with a vision for what your style and taste are so the design is consistent. Even an eclectic style should have a purpose and intent. Sometimes when people have done their own decorating they’ve used just the things they like and it becomes a hodgepodge with no style. That’s when they hear the unfortunate news that everything needs to go and that they need to start over. Whitehouse: Decorating doesn’t have to cost a fortune. If clients bring in arm covers of a sofa and pictures of a room, we can give advice on what they might change to update the space. Sometimes simply adding art and accessories will update a room. Or, lightening up dark walls can totally change the character of a room. Greg Burrus: For the Homearama house we bought several pieces of framed photography from art.com. The site has tens of thousands of photographs and paintings. You can pick out the photograph and can order the mat and frame. It’s all delivered to your door at a very reasonable price.
money on actual products---plumbing, lighting and cabinetry---that go into the home and less money on space. We’re not doing many dining rooms or sitting rooms, but are integrating the kitchen with a dining area, including an opening to the great room or hearth room. There’s now increased interest in simplicity of design. We’re going back to white cabinetry, and a lot of neutral, natural products, even in fabrics. Tweeds and flannels and burlaps are very popular, as is leather mixed with the fabrics. Color Whitehouse: Lighter tones, even white, are coming back. Red tones are softening into bright pinks and some amethyst. It’s usually advisable to pick the upholstered furniture before the wall color or carpet. If you fall in love with a certain fabric and style of sofa, it’s much more limiting than flooring or paint color. Pick the wrong order and you box yourself in. If the underlying color palette is incorrect the room isn’t going to be easily put together.
Jeanie Burrus: I also like to use framed photographs of places we’ve been and that mean something special to us. In general design terms, I recommend that homeowners spend some money to get a few quality pieces they like and work around those. New light fixtures can update or change a space entirely without spending a lot of money. If new cabinetry isn’t financially feasible, consider sanding and restaining or painting existing cabinets. Or, change the door faces rather than buying all new cabinets. New hardware can go a long way in dressing up the cabinets. And my other advice is to get rid of half of what you have. Most people have too much stuff !
Love: The paint color should be dictated by the light of the room, or what you’re trying to accent or downplay. If there is an 8’ wall, there should be less color differentiation between the ceiling and wall colors than there would be with a higher wall. If there is a 10’ wall but not enough windows in the room, I’d use a subtle color, one that will create light versus making the room heavy unless it’s a room in which you want a lot of drama. But I always say that a little drama goes a long way. Remodeling, redecorating or building almost always involves painting. The paint is almost a freebie, so get it right. I don’t like intricate trim packages. You can waste money and get carried away with trim. You need only so many ceiling treatments and crown moldings, or they get lost. Sometimes there’s so much going on that nothing really matters. Choose wisely.
“I don’t mind clients coming to me with ideas they’ve seen on television, and I like it when they show me a picture of something they love. That’s an important piece of communication.”
Greg Burrus: We used only two wall colors in the Homearama house, relying on architectural shapes rather than a great deal of color. A house seems larger if it has an open floor plan and a minimal amount of wall color. Also, most of the artwork was fairly neutral. We livened up the space with print pillows.
- Stacye Love
Love: I don’t mind clients coming to me with ideas they’ve seen on television, and I like it when they show me a picture of something they love. That’s an important piece of communication. If you can’t afford to do it all at once, get the bones right. Choose the color, rugs, draperies and upholstery. Then layer with accessories, lamps, tables, ottomans, maybe a bench. Completing an entire room is the most professional way to guarantee a great end result. Knight: A big problem is partially designing or decorating a room and moving on to the next room before the first room is finished. People often try to piecemeal things together and get excited about a new piece of furniture or color without thinking how that room will flow from one to the other. Or they get overwhelmed in a room and go onto to another. It’s very important to have an overall plan and complete one room before continuing. A major trend in new construction is smaller homes and more practical use of spaces. The emphasis is placed on well planned spaces, not having so many nonfunctional spaces. I’m frequently asked to design flexible spaces, such as a den or study that will have a sofa bed or day bed so the room can be used as an extra bedroom. People are spending more 16 louisville builder • hbal.com
Knight: Louisville will always have that red factor. I think it will stay forever. Everything moves slower in the Louisville market. Things take their sweet time to get here. But we’re seeing grays and golds, and mixing silvery gold tones together. Blues are coming back. Pops of color in the fabrics of window dressings or pillows add a layer of interest to neutral walls, sofas and chairs. Harrington: At the Color Association of the United States, we have several mini collections in our forecast. The most interesting thing about the forecast is that the color schemes are very monochromatic. “Flight” revolves around the sky, clouds, thunderstorms and mystery. All the colors have a purple story to them, from dark plums to dusty violets. It talks to the point that purple still tends to be a strong color for interiors because it’s a color without being too risky. This allows us to have color without too much color, and it easily invites other colors to be introduced. If you pair purple with neutral it becomes a color, but if you put the purple with red or orange, it becomes a neutral. I’m not talking about Barney purple! His purple can be on handbags, but not in homes. Another collection, “Lifesource” is all tones of yellow, everything from butter yellow to corn on the cob to honey. We’re thinking of things that
are natural or nurturing. The colors are glowing and healthy, and have a sort of inner piece to them. Yellow for interiors will continue to be a strong color, but it isn’t for everyone. You have to be careful how you use it because a little can be a lot. On the other hand, some people may want to make everything yellow. Either jump in or make a little splash; don’t go for something in the middle. The verdict is still out on how well consumers will accept yellow. As it becomes more accepted, we’ll probably settle on more of a midtone that is not shy.
At the Color Association of the United States, we have several mini collections in our forecast. The most interesting thing about the forecast is that the color schemes are very monochromatic. - Leslie Harrington
“Midnight Lake” is a beautiful blue story with all sorts of deep shades of blue that range from yellow based blues through turquoises and into red based blues. The idea is that it’s all about different depths of water. Water tends to be an important discussion when we talk about things in the world. But now we talk about water in the North whereas we used to talk about the Caribbean. Now it’s more realistic water. We think of things like icebergs, sort of a majestic beauty that’s surrounding an Arctic sea, or a flat lake at night. The collection’s colors include Stillwater, Lakeshore, and Skinny Dip. My favorite is “Can You Canoe?” “Woodblock” is an entirely green story. We have a green that’s very aquaish and has quite a bit of brightness, but there’s also a new olive, and one called Juniper that is sort of coniferous green, not like evergreens, but more of a softy, woodsy green. And Truffle is like dark, brown moss. By far the newest color of green is New Growth, almost a bright Irish green. For so long, we’ve been living with yellow based greens so this is going in a more mature direction, but that doesn’t
mean boring. Just because you get old you don’t have to get boring. “Bazaar” is a story that has reds and oranges and pinks. It’s vibrant and pretty rich from the standpoint that we have a dirty orange, Tandoori, and Pink Peppercorn. We have a beautiful tomato red that has much more yellow in it. And a burgundy called Kilim. It all doesn’t have to look as spicy as it sounds. Part of the way for it not to look crazy bright is to put the oranges with pink instead of with blue, making it less fiery and zesty. It’s like when one kid is hyperactive from sugar he looks kind of crazy, but if you put all the kids in a group on sugar, that one doesn’t look so crazy. Two collections that are co-conspirators are “Post Fossil” and PreIndustrial”. Together they are a strong neutral story that moves from very yellow based whites all the way to deep charcoals and everything in between. There’s a gamut of neutrals from grays to beige and light to dark. A great color is “Old Goat “, a midtone grayish beige that has a green undertone. It sounds hideous but it could be spectacular. That color tells you the quirkiness of what we’re talking about. To make neutrals feel more elegant or sophisticated or to have them compete with color, they need texture, interest and sparkle. We have a brown but represented it with cork, browns, and blacks with camel swirling, and we have one that looks like expensive sandpaper. These neutrals are a story in themselves. They’re meant to be used with each other, not with other colors. For example, you would do camel, beige and gray together. Metallics play into the neutral area, but they aren’t “in your face” metallic. There might be a gold thread through it or a silver shimmer in the back, some kind of spotlight. But they’re more sophisticated than an all over paralyzed or a metallic finish. The metals I’m particularly interested in are non-precious metals, such as ore or iron that is rusted, or silver that is burnished or burnt or tarnished. I’m intrigued by finishes and even colors that have a level of complexity, that kind of make you take a second look. december 2011 17
interior design
Flooring Whitehouse: Hardwood definitely adds value to a home and it allows other design elements to be easily changed. And it’s so much nicer than having to buy new carpet every seven or eight years. You can use area rugs to tie in color. The big thing in hardwood now is rough hewn with a hand planed finish and an uneven texture. It gains patina as it ages. Knight: I’m seeing a great deal of reclaimed wood, painted hardwood, and distressed floors. The distressed wood doesn’t necessarily impart a rustic feel if it’s mixed with a contemporary style of furniture. There’s an amazing assortment of area rugs today that don’t cost an exorbitant amount of money, but sell in the $500 to $1,000 range. People change their tastes and minds and don’t want to spend $20,000 on a rug they may not like in a few years. Those individuals 40 years old and above may be willing to spend more on a quality rug, but those in their 20s and 30s think that in 5 or ten years they’ll want to get rid of it. Hensgen: Frieze, a short shag, is the most popular carpet. The good thing about it is that it’s offered in a variety of price points. Short berber has recently gained in popularity. The berbers are making a comeback, but with a thicker loop than before. Clients really want carpeting that is durable and can withstand from kids and pets. Several carpets now have Resista Fresh to help with those common household problems. Also, Silver Shield helps retard mold and bacteria, and Acti Fresh works to eliminate odors. Laminate can be a good alternative for people who want the wood look but don’t have the budget for hardwood. They’re surprised at the wide selection of wood look laminate, ranging from hickory to exotic to bamboo. Builders, remodelers and homeowners are turning to stone for homes that have a contemporary, traditional or country style. Stone’s options include honed and filled or antique and tumbled, opening up many design possibilities. Luxury vinyl tile has made some tremendous strides and is now available in stone, marble and exotic wood looks. And, whether you choose a 16” x 16” that can be grouted, or a plank form like wood, vinyl offers some terrific options. Lighting Steinbrenner: The days that polished brass was the answer for exterior and interior lighting across the board are long gone. We’re now leaning 18 louisville builder • hbal.com
toward bronzes and natural metals such as brushed nickel, painted finishes and antiquing. There are so many styles and finishes that most any design or color scheme can be enhanced by complementary lighting. Today’s lighting is incorporating natural elements such as grass cloth and silk in shaded fixtures. Drum shades can feature natural, almost burlap type materials to those that are pleated with a formal sheen. Of the three types of lighting, accent lighting too often gets overlooked or is not thought of in the design scheme. But it can make a heck of a difference. There’s usually a decent amount of general light provided in a room through recessed light or a central light fixture. But accent lighting is crucial to highlighting an object or playing up texture in the room. Knight: If you can’t decide between two new light fixtures, go for the larger one. And always have variations of light, such as recessed lights on a dimmer or other main lighting overhead, lamp lighting to create a mood or warmth, or a combination of those. Also, I love candles! Battery operated candles can be put in wall sconces. They look wonderful and they’re safe. Don’t forget that a mirror will help reflect lighting. Furniture Whitehouse: As houses are becoming smaller, so is the scale of furniture. When shopping for furniture, measure the room with all the openings placed. Take the measurements to the store with you. The size of the room may suggest that you can use large furniture, but if the traffic flows right through the room, it diminishes the amount and size of furniture you can use. You also have to consider how the furniture works together. A little pull up chair would look out of scale in a seating group with a 100” sofa. But you might be able to use the chair somewhere outside of that area. Window Treatments Tyler: Last spring we saw an emergence of a lot of cotton prints and linens, such as ikat, whimsical and Retro---anything that had a nod to the past. At this time of year savvy buyers are selecting quality curtains for function and practicality, and are thinking about how to make the room cozier. Thermal lined curtains control drafts and private climate control as well as reducing glare. There’s a trend away from embroidered silks that feel formal to embroidered linens with gorgeous detail. Linen is soft and organic. People like that natural influence but they still want fabulous detail. We also have clients who like a heavier look for their curtains, almost upholstery fabric. Privacy may be an issue, especially when a house is built on a zero lot. In that case, curtains need to close completely. In other situations, curtains may be selected simply for their design appeal, even to serve as inspiration for paint colors throughout the house. If you have a neutral walls and sofa, the curtains can provide an needed pop of color. They’re also ideal for preventing large two story windows from looking cold or stark. Many people are avoiding valances and shade treatments, when possible, because they don’t want to block their view. A valance also chops the look of a window.
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Check out the latest edition of the Greater Louisville Relocation Guide to learn more about your city! Now available for FREE at your local Kroger’s, ValuMarket’s and more!
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012, Volume 23
Discover your Community!
Create a refined mood with the Everything newco mers and a long-ti me local needs to community and get to know their discover Greate r Louisville and new Southern Indian a living.
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The Home Builders Association of Louisville would like to thank the 2011 Corporate Sponsors for their continued support:
20 louisville builder • hbal.com
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december 2011 21
Rocco Pigneri with his wife Ann, showing off a winning ticket!
HBAL Vice-President Rob Eberenz, Jr. with his wife Janis, his father Bob Eberenz
Agriculture commissioner candidate Bob Farmer with HBAL Past-President Roger Bright
22 louisville builder • hbal.com
HIPAC Chairman Dave French, and top ticket seller Larry Link
Great crowd!
Record Tickets Sold at HIPAC Night By Stacy Smith Rogers, Grace Communications, LLC
HIPAC Night held at Locust Creek Clubhouse October 3, 2011 was a huge success with a record number of 518 tickets sold this year. HBAL members certainly stepped up and showed their devotion to the future of the industry and commitment to supporting political candidates who support homebuilding. Lucky ticket sellers also came away with impressive prizes of their own. Derek Smothers took the first place prize of $1,000. Rocco Pigneri took the second place prize of $250 and Stan Logan, Jr. was the third luck winner, taking home $100. Teams sales breakdowns are as follows: Rob Eberenz, Jr.’s Team – 101 tickets John Lannert’s Team – 83 tickets Larry Link’s Team – 108 tickets Bob Marrett’s Team – 115 tickets Derek Smother’s Team – 85 tickets Dave French’s Team – 26 tickets
Lou Newman drawing the raffle tickets
Of noteworthy mention were high ticket sellers. Combined, their ticket sales accounted for more than half of the 518 total! Larry Link – 37
Tom Thieneman – 12
Rob Eberenz, Jr. – 35
Derek Smothers – 11
Bob Marrett – 34
John Lannert – 11
Billy Doelker – 26
Bill Wilkinson – 10
John Miranda – 23
Joe Simms – 10
Bob Thieneman, Jr. – 22
Mike Isaac – 10
Clifford Thieneman – 20
Richard Miles – 10
Dave French – 19
Stan Logan – 10
Bob Duggins – 13
Gonzalez and Pigneri Were Big Dollar Winners! The big dollar winners were Alex Gonzalez and Rocco Pigneri who split the big payout of $12,000. In addition, to the big winners, several HBAL members came away with an extra $100. • Paul Lockhart • Steve Freeman • Greg Wilson • Eddie Pile • Shane Mikels • Fred Nalley Special Thanks... Long-standing host Bob Marrett, CMB Development, generously allowed HBAL to host the event at Locust Creek. Derek Smothers, Sonne Steel, Inc., and his brother Greg Smothers provided the speakers. Bob Duggins for providing the delicious Red Wine for this event! december 2011 23
Celebrate Your Success: Apply for a Louisville Remodeling Award Remodeler’s Council Members, We are looking for remodeler’s who are proud of their work and want to be recognized for their excellence. It’s that time to reflect on all the hard work making sure your projects are special and your customers telling their friends how great you are! Just think how much they’ll talk about it if they have an award winning project. Enter some of your projects and make your company eligible to receive one of this year’s Louisville Remodeling Awards. Whether it’s a cool outdoor family room or a sleek kitchen or bath, see if it’s worthy to be called one of the best in town! Past winner David Rateau encourages everyone to submit an entry to the Louisville Remodeling Awards. “To be able to sell customers on the fact that you are an “Award Winning” remodeling contractor is invaluable. I have also used the awards to recruit top notch employees.” So what are you waiting for? Submit your application today. The deadline to apply is December 31st.
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Remodeler:____________________________________________________________________________________________________ Company Name: ______________________________________________________________________________________________ Address:______________________________________________________________________________________________________ City: ____________________________ State: _______ Zip Code:________________ Telephone:______________________________ Entry Category (Contact Margie for Details) _________________________________________________________________________ Homeowner’s Name:_________________________________ ___________________________________________________________ Address of Project:___________________________________ ___________________________________________________________ City: ____________________________ State: _______ Zip Code:________________ Telephone:______________________________ Signature of Remodeler: ______________________________________________________ Date:____________________________
Fax this form to 429-6036, or contact Margie Brangers at 429-6000 to apply. Winners will be announced during the 20th Annual Louisville Remodeling Awards February, 2012. 24 louisville builder • hbal.com
membermeetings BULLITT county Council
SAles & Marketing Council
Left to right: Director of Education at Bernheim, Claude Stephens; Jason Stuecker of Stock Yards Bank; Sharon Etherton of Stock Yards Bank; National Wild Turkey Federation representative Joe Bland; Chairman George Miller; Bullitt Co. Judge Executive Melanie Roberts; Congressman Brett Guthrie; Tim French of 21st Century Flooring and Greg Harmon of 21st Century Flooring.
Left to right: Katie Golden of Century Mortgage; Carol Flammer of mRelevance, Tim Alvarado of America’s Floor Source; Chairman Pat Durham; Jeannette White of Key Homes; Bob Thieneman Estate Homes (Louisville Realty Group) and Leah Ritter of Century Mortgage.
The Bullitt County Council of the Home Builders Association of Louisville recently met at Bernheim Forest. Nearly 40 members and elected official attended to hear from three excellent presenters. The meeting was sponsored by 21st Century America’s Flooring Company and Stockyards Bank of Shepherdsville. Attendees spent time talking one on one with Congressman Brett Guthrie. Later when the Congressman addressed the group he spoke about the state of the housing industry and legislation and regulations that are directly affecting the slow recovery of this industry. He also spent time talking about the President’s jobs bill and the overall economy. The second speaker was National Wild Turkey Federation Representative Joe Bland. He talked about how he reintroduced wild turkeys to Kentucky in the 70’s. He also entertained the crowd with examples of wild turkey calls. Since Bernheim Forest was the location of the meeting, it was only fitting that the Director of Education at Bernheim, Claude Stephens, shared with us the history of Bernheim Forest and talked about upcoming Bernheim events. Other elected officials in attendance included Judge Executive Melanie Roberts and State Representative Paul Hornback. The Bullitt County Council of the Home Builders Association of Louisville meets quarterly at locations around the County. George Miller of Suburban Construction and Management, Inc is the Chairman of the Council.
The Sales & Marketing Council of the Home Builders Association of Louisville featured Carol Flammer at their October Meeting. Carol Flammer, of mRelevance, brought her expertise and knowledge in the world of social media marketing. mRelevance has a client base that is exclusively represented by companies that are in the housing industry – so needless to say the things Flammer had to say were very useful to those in our Association. Flammer walked through examples of Twitter, facebook, Youtube and a few other social medias, and how these tools can and should be used on a regular basis to generate new business. Flammer, more importantly, touched on some of the things “not to do” when using social media for your business marketing. Pat Durham, the SMC Chairman, said “Carol (Flammer) definitely opened the eyes of many members regarding the possibilities of connecting with potential customers through Social Media. For many it is taking the next step that tends to worry them, and hopefully the SMC can work in 2012 to offer even more education on this subject matter.” A special thanks goes out to the sponsors of this meeting: America’s Floor Source, Century Mortgage Company, Key Homes, LLC, and Louisville Realty Group.
If you are interested in sponsoring or joining the council, please contact Jessica Embry (502-429-6000) or jessica@hbal.com
sponsored by:
Exclusively sold and marketed by louisvillerealtygroup.com
december 2011 25
membernews Several HBAL members were appointed by the Mayor of Louisville, Greg Fischer, to serve on the Planning Audit Taskforce. This was a 10-person committee which included HBAL Executive Vice President Chuck Kavanaugh; Bill Bardenwerper, Bardenwerper, Talbott, & Roberts; and Deborah Bilitski, Wyatt, Tarrant, & Combs among other neighborhood representatives, activists, and involved citizens that authored the final recommendations presented to the Mayor. Information gathered for the final recommendations were the results of the work performed by three sub-committees that were made of roughly 25 additional citizens of Louisville. The Planning Audit Taskforce and its sub-committees worked for approximately seven months and spent time interviewing and surveying Planning and Design Services customers, employees, and reviewing best practices and processes of Planning Departments of our peer cities. According to those involved, the 10-person appointed group was able
to come to some general consensus regarding recommendations, considering the vast differences in background, expertise, and opinion. It seemed as though everyone had put away their obvious differences for the good of the community and was ready to move forward and evoke change. That was however until one member of the appointed task force decided to write an Op-Ed piece that was published in the Courier Journal which completely disregarded the collective work of the group and took cheap shots at the development community. In response to an op-ed published in the Courier-Journal entitled, “Blame the Economy, not the Planning Process,” Bill Bardenwerper offers counter points which explains why and how the Planning Process as it exists today is part of the problem in Louisville. Mr. Bardenwerper’s Op-Ed was published on October 17th in response. It can be read below in its entirety.
Blame the Economy and the Zoning Process by BILL BARDENWERPER
In response to Steve Porter’s recent op-ed piece, yes blame the economy, in part, for the pain suffered by the millions of job creators and workers who have lost their businesses and employment in the development, home building, residential and commercial real estate, banking and allied industries. Economic activity for these industries is off 75%, with many businesses defunct, while others struggle to survive. Our days, once spent helping to create job growth, are now largely spent working to save businesses from collapse and helping local banks reposition the troubled assets they have inherited. Workdays for nearly everyone left in these industries are difficult and discouraging. These facts of life comprised a small part of the SWOT (Strengths, Weaknesses, Opportunities and Threats) Analysis narrative I wrote, taken from the hundreds of industry opinions compiled as a member of Mayor Fischer’s Transition Team. The Mayor took this Analysis representing the views of this particular industry group into account, along with many viewpoints from a diverse group of other Transition Team members, in calculating how to proceed with administering the government he was elected to manage. Thereafter, deciding to broaden community input on this subject, he appointed a 10-person Planning and Design Services Audit Committee which was well served by dozens of volunteers who assisted on various subcommittees. That group’s recently completed work was reported in this week’s Courier-Journal. What the Mayor heard was that local development review and zoning processes are broken but can be fixed over time with sustained community effort. Mr. Porter’s op-ed ridicule of the SWOT Analysis is odd for several reasons. First, the SWOT Analysis actually stated that “nothing in this proposal suggests in any way any diminution in government transparency, community input, neighborhood notice and commitment to quality development and design” and that “local government is mostly well organized, well run, corruption free and filled with mostly quality, hardworking employees.” Second, the PDS Audit Committee, on which Mr. Porter served 26 louisville builder • hbal.com
with me, and the SWOT Analysis came to nearly identical conclusions. The truth Mr. Porter knows is that local development review and rezoning processes can be very slow and expensive. The consequence he apparently does not understand is the resulting loss of hundreds of millions of dollars in community investment. Mr. Porter contends that almost all projects are approved. Yet few conceived actually ever reach the review process finish line for a final vote, and, of those that do, there are many examples of projects that are not denied, yet are never built. Take the large multi-tenant, furniture showroom once planned for Preston Highway at I-265 where a developer simply wanted the attractive side of its building to face the Snyder Freeway. Months passed with repeated deferrals in an attempt to twist the developer’s arm. He finally gave up and returned to Denver, determined to invest his millions in cities interested in this kind of economic opportunity. Or take the large Wal-Mart center planned for the Outer Loop at I-65 that took seven years to navigate local processes. The window of opportunity closed before it could be built when Wal-Mart changed its national merchandising strategy. Much the same occurred at US 42 where Rite Aid once planned to rejuvenate a center where today a vacant grocery and restaurant sit. Waiting 2 ½ years for approvals was just too long, so the window of opportunity shut again. Take also the large shopping center recently planned for Bardstown Road south of the Snyder Freeway, dropped after a government study recommended locating customer parking in unsafe, inconvenient areas next to the loading docks behind the retail buildings. That was the last straw after years of waiting for the results of a study that got way off track. Then there was large pharmaceutical company which decided to locate 300 jobs outside our local tax base because local review processes here take way too long. In all these and hundreds of other good projects, tens of thousands of jobs and hundred of millions of dollars of investment have been lost,
membernews because of time delays, amounting to years, not months, and because of “exaction” bills for public infrastructure that go well beyond the Supreme Court’s tests of an “essential nexus” of “rough proportionality”. The industries we represent have never asked for anything more than a relatively efficient, more or less fair and somewhat inviting environment in which to try to invest their money - - yes for their own good, but also for the good of all. Mayor Fischer’s efforts to fix what somehow somewhere along the way got broken is commendable. Until Mr. Porter’s op-ed piece appeared, many of us working together to find answers were under the impression that the community had joined hands to remove at least some impediments to economic opportunity, while still assuring complete transparency, ample notice for neighbors always to be fully heard and continued commitment to quality design. There are many complicated global economic forces at play. But a local government that operates on the model Mayor Fischer has outlined can at least be ready to consider opportunities for new investment when they happen to occur. My hope is that Mr. Porter’s op-ed piece was written before, not after, he supposedly joined the rest of us in these efforts.
Billy Doelker earns Spike pin HBAL President Billy Doelker receives his 150 credit spike pin from Membership Committee chairman Bob Thieneman, Jr.
(Bill Bardenwerper, attorney with Bardenwerper, Talbott & Roberts, practices real estate and development law)
Rocky Pusateri earns Spike pin HBAL Past-President Rocky Pusateri receives his 250 credit spike pin from Membership Committee chairman Bob Thieneman, Jr.
Like HBAK on Facebook Go to the Search Box and Search for: Home Builders Association of Kentucky (HBAK). We will send you the latest news from Frankfort and the Kentucky General Assembly as it pertains to the housing industry!
John Miranda to serve on the HBAK Executive Ladder John Miranda, Pinnacle Properties of Louisville was recently elected to serve on the Home Builders Association of Kentucky Executive Ladder. He will serve as the Secretary in 2012 and will eventually be State President in 2015. Congratulations to John; we thank you for your service and dedication at the local, state and national levels. To submit your news email Tara Brinkmoeller at Tara@hbal.com.
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december 2011 27
newmembers Associates Approved 10/11 Koch’s Cove Excavation & Construction, Inc. Steve Koch Type of Business: Excavation, Hardscape Installer Sponsor: David Lurding Quality Heating & Air John McCleve Type of Business: Heating & Air Conditioning Sponsor: John Miranda Churchill McGee Construction Ryan Miranda Type of Business: General Contractor Sponsor: John Miranda Louisville Real Estate Photography Barry Westerman Type of Business: Property related photography Sponsor: Brenda Doll Imperial Marble, Inc. Oakley Barger Type of Business: Cultured Marble & Granite Manf. Sponsor: Rob Eberenz, Jr. Jots Enterprises, Inc. Troy Pratt Type of Business: Drywall Installation Sponsor: John Miranda Evergreen Irrigation Bill Funk Type of Business: Irrigation Sponsor: Rob Eberenz, Jr. River City Bank David Hobbs Type of Business: Banking Sponsor: Teresa Morgan Re/Max Associates-John Milliner Group John Milliner Type of Business: Real Estate Sponsor: Rob Eberenz, Jr. Milestone Design Group, Inc. Matthew Sibole Type of Business: Engineering Sponsor: Bob Thieneman, Jr.
Class Home Center/Gutter Helmet Michael Pearce Type of Business: Baths, Gutters, etc. Sponsor: John Lannert Kentucky Equatic Gardens Noah Smith Type of Business: Landscaping Sponsor: Rob Eberenz, Jr. Artemio Medina Pepe Medina Type of Business: Brick Laying Sponsor: John Miranda Affiliate Approved 10/11 Michelle Smith Century Mortgage Sponsor: Bob Thieneman, Jr. Brian Schutte Century Mortgage Sponsor: Bob Thieneman, Jr. Bart Doerhoefer Commonwealth Bank & Trust Co Sponsor: Rob Eberenz, Jr. John Blackburn K-I Lumber & Bldg Materials Sponsor: Bob Thieneman, Jr. Peter Searcy Louisville Realty Group Sponsor: David Ernst Carol Weber Louisville Realty Group Sponsor: Bob Thieneman, Jr. Kimberly Clark Via Studio Sponsor: David Ernst Jesse Rimmer Esposito Construction Sponsor: Jeremy Esposito Brian Partee KY Mirror & Plate Glass Sponsor: Jeremy Esposito
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28 louisville builder • hbal.com
Bethany Clark Willis Klein Showroom Sponsor: Rob Eberenz, Jr. Cliff Ashburner Wyatt Tarrant & Combs Sponsor: John Owen Tricia Nelson K-I Lumber & Bldg Materials Sponsor: Jeremy Esposito Lee Bruner K-I Lumber & Bldg Materials Sponsor: Jeremy Esposito David Ernst Prestige Builders Sponsor: Bob Thieneman, Jr. Dan Walton Architectural Window-Door Sponsor: Davis Boland David Epperson Boland Maloney Lumber Sponsor: Davis Boland Craig Kinslow First Citizens Bank Sponsor: Dave Ernst Mark Ernst Prestige Builders Sponsor: Dave Ernst Troy Lyons Triton Stone Sponsor: Rob Eberenz, Jr. Jessica Smith Triton Stone Sponsor: Rob Eberenz, Jr. Landon Walker Triton Stone Sponsor: Rob Eberenz, Jr.
honorroll
As of November 1, 2011
Builders:
Deville Homes
Blacketer Company
Dominion Homes
Clifford Thieneman Co., LLC
Quarry Bluff Estates
Associates:
Fifth Third Bank
Pro-Build
Bardenwerper, Talbott & Roberts
K-I Lumber & Building Materials
R.J. Thieneman Realty Group
Bonnycastle Appliance & TV
L.E. Hobbs Contruction
Century Mortgage
Louis E. Hobbs Construction Co. Inc.
Corrigan Electric and Home Systems
MetLife Home Loans
The Door Store and Windows
PPG Porter Paints
A&G Drywall, Inc
Frost Brown Todd, LLC
Boland Maloney Lumber
L & N Federal Credit Union
Boral Bricks
Logan Lavelle Hunt Insurance
Chenoweth Appliances
McDonald Marble & Stone Inc.
Cunningham Door & Window
Paragon Management Group
Republic Bank
Sam Kinnaird’s Flooring Screens of Kentucky Sonne Steel
Surburban Steel
The Trend Companies of Kentucky Wells Fargo Home Mortgage VanZandt, Emrich, & Cary
A special thanks to all Honor Roll Members! For more information on how you can be listed on the HBAL Honor Roll, please call Melissa or Kimberly at 429-6000.
membermilestone
Congratulations to these Milestone Members: These members have reached a milestone mark in their membership with their renewal in October. 30 Years Robert L. Eberenz, Jr. Builder, LLC – Robert L Eberenz Jr., Registered Builder Allied Custom Kitchens, Inc. – George Southland Super Home Systems/Vacuflo – Phil Deddens Flynn Brothers Contracting, Inc. – Jesse Flynn
10 Years SignsNow – Greg Hoskinson Real Estate 2000 – Perry Herren, Associate Builder/Remodeler Chris Carey Builders Inc. /NC Constructions LLC – Chris Carey, Register Builder Stuart Bauer Pools & Spas, Inc. – Stuart Bauer L & N Disposal, LLC – Andy Ferrell
20 Years Kitchen Kompact, Inc. – David R. Duke Sterling Development Group – Carl Baker, Register Builder and Remodeler Four Seasons Home Builders – John Bohn Register Builder River City Glass & Mirror, Inc. – Sam Tommie
5 Years Cornell Harbison Excavating, Inc. – Roger Harbison Shelbyville Chrysler Products Inc. – John J. Brown Staggs Pavement Maintenance – James Skaggs
15 Years Woodfield Homes, Inc. – Ron Fonk, Register Builder City of Jeffersontown – Mike Kmetz
1 Year Kaufman Carpet Cleaning – Butch Kaufman Kevin Grimes Appraisal – Kevin Grimes
For an up to date Spike Club list please visit www.hbal.com/site/for-members/spike-list.html HBAL.COM
december 2011 29 FACEBOOK
advertiserindex
calendarofevents
December 2
Back Alley Ornamental Iron......................... 27
HBAL Annual Holiday Party 6:30 p.m., Hyatt Downtown Bobcat Enterprises........................................ 28
7
New Member Orientation 9:00 a.m., HBAL
7
Land Development Meeting 10:00 a.m., HBAL
7
Building Industry Charitable Foundation Committee Meeting 1:00 p.m., HBAL
14
Executive Committee 1:00 p.m., HBAL
14
Board of Directors 3:00 p.m., HBAL
15
Codes & Standards 11:00 a.m., HBAL
Boland Maloney........................................... ibc
Bonnycastle Appliance & TV.........................obc
Duggins Co., Inc........................................... 27
25
Christmas Day
26
HBAL Closed in observance of Christmas Holiday
DWB Restoration II, Inc............................... 28
Executive Title Company.............................. 19
Fireplace Distributors, Inc............................. 21 HBAL Annual Holiday Party December 2
Home Product Expo January 7-8
January 2
HBAL Closed in observance of New Year’s Holiday
4
Land Development Committee Meeting 10:00 a.m., HBAL
7-8
Home Product Expo Paroquet Springs Conference Centre
24
Sales & Marketing Awards Luncheon 11:30 a.m., Hurstbourne Country Club
25 25
Executive Committee Meeting - 1:00 p.m. Board of Directors Meeting - 3:00 p.m.
30 louisville builder • hbal.com
K-I Lumber & Building Materials................ifc
Logan Lavelle................................................. 4
PPG Porter Paints........................................ 19
Rajay Distribution....................................... 21
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december 2011 31
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