May 2018
American Dream Awards Include Silent Auction for Harvesters Hammer Out Hunger Proclamations – page 3 Combined Area Council Meeting – page 6
HBA members and friends gathered at Unity Village on May 2 as home builders were presented with the 2018 American Dream Awards at the Spring Awards Ceremony. This year’s awards celebration featured the Hammer Out Hunger silent auction to raise funds for Harvesters. With items ranging from a trip to Italy to Billy Joel tickets to wine tastings, bidders raised over $20,000 in support of the HBA’s efforts to feed hungry children. Jerry Ratway spearheaded the campaign, which was led by three team captains— Jerry Braklow, Shawn Woods and Gary Kerns.
Special thanks go to Misty Hanson and Stewart Title for sponsorship of the Parade. Jennifer Bertrand announced the winners and shared design tips.
The awards celebration ended on a stormy note when tornado sirens sounded – prompting a choice between leaving the party immediately or spending quality time in the basement of Unity Village.
Check out the American Dream Award winners. Page 16.
Each spring, local home builders compete for top honors in the awards competition held in conjunction with the Spring Parade of Homes. The 56th annual Parade provided consumers the opportunity to visit more than 370 new homes throughout metropolitan Kansas City.
Jerry Ratway shared the importance of Harvesters’ work in the KC area.
Hammer out Hunger involved over 50 volunteers. Jessica Kerns and Elizabeth Welsch from the Missouri North team.
www.kchba.org | Volume 24, No. 4 | May 2018
Five Students Graduate Construct KC Training Program
May/June Calendar May 15 Young Professionals Meeting May 15 Board of Directors Meeting May 17 Hammer Out Hunger Finale May 22 Tri-Area Council Meeting: “Building a Workforce” May 31 HBA Golf Tournament
Graduates with Certificates
A graduation ceremony was held on April 13 for the inaugural Construct KC class. Five students received their certificates of completion that day and four of the students have been placed with companies. Family and friends of the students attended the graduation, along with staff and members of the HBA, Associated Builders and Contractors, and Workforce Partnership.
June 7-17 Artisan Home Tour June 21 The New Tax Code and You
© Cambria 2018
For more information or to register for any event, go to www.kchba.org or call 816-942-8800
The Construct KC program is a six-week program that includes basics in carpentry, drywall and OSHA 10-hour safety courses. Afterward, the students are available for on-thejob training. Employers that participate in the OJT portion of the program are reimbursed for 50 percent of the costs for the first six-weeks of training. A second cohort of 10 students will graduate on May 11. These students have received offers of employment and are expected to begin work on May 14. The HBA is proud to have these trained professionals entering the construction industry!
HBA Members Attend Construct KC Hiring Event Several HBA members attended the latest hiring event for the Construct KC program, a 6-week training program in partnership with Associated Builders and Contractors and Workforce Partnership. There are currently 10 students in this cohort that are expected to graduate from the program on May 11 and start on-the-job training with companies shortly thereafter.
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HBA members will have the opportunity to talk to some of the companies participating in the OJT program and graduates of this program at the May “Building a Workforce” Area
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Council on May 22. Make reservations now to attend this special event to learn about the training program and how you can participate in future programs.
Participants in the Construct KC program
May 2018 | Volume 24, No. 4 | www.kchba.org
BuildingBusinessNews THE OFFICIAL PUBLICATION OF THE HOME BUILDERS ASSOCIATION OF GREATER KANSAS CITY May 2018 • Volume 24 • Issue 4
Lee’s Summit, Olathe and Johnson County All Proclaim Hammer Out Hunger Days On May 3, Lee’s Summit officially proclaimed May 3-13 as Hammer Out Hunger days in the city. HBA member Kevin Stallings, who is a member of the Missouri South Team for the Hammer Out Hunger Challenge, accepted the proclamation on behalf of the HBA from Mayor William Baird.
Copyright 2018 Published by the Home Builders Association of Greater Kansas City 600 E 103 Street, Kansas City, MO 64131 (816) 942-8800
Editor Marcia Jurgens Contributing Writers Katie Walkley and Kari English Graphics Karla Peterie, Creative Services
2018 Executive Committee
Home Builders Association of Greater Kansas City
President Gary Kerns Vice President Shawn Woods Secretary/Treasurer Jerry Braklow Immediate Past President Harold Phelps Associate Representative Rosemary Vitale Past Presidents Representative Bob Frost To subscribe to Building Business News call (816) 733-2217 To advertise in Building Business News call (816) 733-2215 For change of address requests please fax changes to (816) 942-8367 or call (816) 942-8800 For more information, visit the HBA online at www.kchba.org
Josh Clark, Gary Kerns and Johnson County Commissioner Ed Eilert
Josh Clark, Gina Battle, Olathe Mayor Michael Copeland, and Jerry Braklow
HBA members and staff also attended an Olathe City Council meeting in April in which the City of Olathe proclaimed April 17-May 13 Hammer Out Hunger days in the city. Jerry Braklow, captain of the Kansas Team, accepted the proclamation during the meeting.
who struggle to feed their families. The proclamation was presented to Gary Kerns, captain of the Missouri North team, by the board chairman, Ed Eilert.
Additionally, the Board of County Commissioners of Johnson County, Kan., proclaimed May 3-13 at Hammer Out Hunger Days and encouraged all residents to support Harvesters in their efforts to provide help and hope to those
The HBA greatly appreciates the support of these cities and counties in its efforts to Hammer Out Hunger for Harvesters during the summer months when many children in the area do not have access to school lunch programs.
Lee’s Summit Mayor William Baird with Kevin Stallings and Josh Clark
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www.kchba.org | Volume 24, No. 4 | May 2018
Eastern Jackson County Commissioner Training Planning commissioners and staff from Blue Springs, Lee’s Summit, and Independence gathered on Tuesday, April 17 at the new Lee’s Summit Water Utilities Service Center to hear from the building community about current trends and challenges. Panelists included Brenner Holland, Hunt Midwest; Zalman Kohen, Summit Homes; and Don Greenwell, president of the Builders’ Association. The following are some facts and industry insights shared by the panelists: • The average price of an existing home is $208,000 vs. $372,000 for a new home.
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• Millennials are the prime home buyers, followed by the baby boomers, single women, divorced parents, multi-gen erational households, and then cohabitation/roommates.
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• Millennials are poised to dominate the market, numbering around 70 million. • They are interested in less square footage, preferring smaller single family detached homes, multifamily or townhomes • Location is extremely important. • They are delayed by saving for down payments, so builders must continue to consider affordability. • Baby Boomers (54-72 years) are either: • Financially prepared – want social, lock & leave, or rental options. • Not financially prepared – looking to rent but have limited choices. • Affordability: easing cost pressure in some categories such as regulation are offset by rising material and labor 4
costs – leading to low margins for home builders. • Community Design may become more popular and help keep costs down. •
Higher density, possibly with a variety of products. Custom homes, townhomes, villas, etc. sharing a community layout.
• Potentially building on narrower lots, 50ft instead of 70ft. • Detached accessory units may become more common. Some builders are starting to sketch “granny’s quarters” in the backyard. • Higher density does not automatically mean sacrificing aesthetic. Different products and materials can help, as well as elevations, color, landscaping, and sidewalks. However, consumers are currently voting with their pocketbooks that they prefer interior finishes to outdoor aesthetic. •
Detached townhomes and modular homes are becoming popular in other areas and may reach the Kansas City market in the future.
Tax Update: June 21 The most significant overhaul of the U.S. tax code in more than 30 years was signed into law in December. The provisions will affect nearly every household and business. Watch This Week at the HBA for details on a tax code update meeting scheduled for June 21 at 10 am.
May 2018 | Volume 24, No. 4 | www.kchba.org
Marketing & Mimosas Kicks Off YP Group About 75 builders, realtors, young professionals and others attended the Sales and Marketing Council’s Marketing and Mimosas event last month at the Alamo Drafthouse in downtown Kansas City. Mollie Elkman, a national presenter and owner of Group Two Advertising, which focuses on marketing home builders, provided simple and easy marketing tactics that any home builder can implement. “The zero moment of truth is when someone decides whether to put you on their short list of potential builders,” said Elkman. “And it happens prior to making contact — it happens online.” Elkman told attendees that first impressions are made online so if their digital experience isn’t positive, you won’t make the short list. But it’s not just your website; consumers can find you in
multiple ways and every person’s journey to your website is different, Elkman noted.
Mollie Elkman, Group Two Advertising
They may find your company through social media, a referral, your digital ad campaign, or any other number of ways, which is why Elkman said you must 1) show up in the right place and 2) show up with the right message. To do this, you must know what your customers want most and what your company does best. Focus on where those two meet, according to Elkman. “Women account for 91 percent of new home purchases – or at least the female is narrowing down options to the short list if they are not making the final decision,” said Elkman. “Women remember emotion and how something made us feel, so share a female perspective in your marketing.”
A large group of HBA members gathered early on April 19 to improve their marketing skills.
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www.kchba.org | Volume 24, No. 4 | May 2018
Harold Phelps Recognized with Highest Honor from KU Engineering Dept. Harold Phelps, president of Phelps Engineering and 2017 president of the HBA, was recognized for his achievements in the field of engineering by the University of Kansas on May 3. Phelps was honored with the Distinguished Engineering Service Award (DESA). The award honors KU engineering alumni or engineers who have maintained a close association with the university for outstanding contributions to the profession of engineering and to society. The Distinguished Engineering Service Award is the highest honor bestowed by the School of Engineering. Awards are made on the basis of an individual’s contribution to the theories and practices of engineering, research and development in new fields of engineering, or direction of an organization that has made exceptional contributions in design, production and development. Phelps’ distinguished career includes being the Principal-in-Charge for the Tomahawk Creek Watershed Study in Johnson County, Kan. Harold helped innovate and develop the original project approach thereby creating the framework by which all other Stormwater Management Advisory Council (SMAC) watershed studies were contracted by the City of Overland Park and the Johnson County Public Works departments.
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To achieve this goal, Harold and his team created new ways of utilizing the GIS data from the Johnson County AIMS system to develop base mapping, database management and GIS services. Phelps Engineering, Inc. used the latest Global Positioning Satellite (GPS) technology to establish Johnson County’s countywide, horizontal and vertical ground control network. HEC-I, HECRAS and SWMMM models were used
Harold Phelps by the hydrology and hydraulic teams to establish what has been considered the most accurate hydrologic and hydraulic results in the industry at the time. Besides running his own company, Harold is very active in the community and serves as the Chair of the University of Kansas, Civil Engineering and Architectural Engineering Department Advisory Board.
Building A Workforce Area Council In less than a year, the HBA has created and implemented a strategic plan to promote jobs in the residential construction industry. Join us on May 22 to learn about its multi-pronged approach, including Construct KC, a 12-week training program in partnership with Associated Builders and Contractors and Workforce Partnership. Meet some of the graduates of this training program and hear from their employers. Tuesday, May 22 11:00 Registration | 11:30 Lunch | Noon Presentation begins Union Station, 30 W. Pershing Road Kansas City, MO 64108 RSVP: Erica@kchba.org | 816.942.8800
May 2018 | Volume 24, No. 4 | www.kchba.org
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www.kchba.org | Volume 24, No. 4 | May 2018
Spire: Gas Bill Decreasing
STYLE THAT
WORKS
At the Missouri South Area Council last month, Spire highlighted the fact that as of April 19, the monthly meter fee for residences will decrease from $34 to $20. All builders will be able to use this residential rate instead of commercial accounts.
KCHBA’s Zalman Kohen Named to Ingram’s Magazine’s 40 Under 40
Spire also reminded attendees of its residential rebate program, which includes a standard rebate up to $625 for each home using a gas water heater, furnace,
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thermostat, boiler and/or integrated heating system. Spire can even look at about a year’s span for past rebates that may still be applicable. The largest gas provider in Missouri and Alabama, Spire replaces 150 miles of gas mains each year and within the last two years has added about 100 new employees in Kansas City in areas ranging from sales to construction.
Builders FirstSource carries a wide selection of high quality building materials suited for both homeowner and professional builders’ needs. We take pride in personal service, and our talented and experienced team provides support to meet the needs of your specific project. Builders FirstSource provides quality materials that will perform well and look great.
Currently in the conceptual stage, Spire is working on an app that would authorize builders and their superintendents to order and track service lines and meter progress.
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Ingram’s noted that Zalman took over as COO of Summit Custom Homes in 2009, a difficult time for many home builders. The company at that time had 29 closings that year and around $10 million in revenue. Eight years later, Summit Homes closed 273 deals with just over $100 million in revenue. Beyond the business, the article also notes that Kohen gives back to his community regularly by raising $6 million for St. Jude’s Research Hospital and agreeing to build a home for Children’s Mercy with the goal of raising $1 million. “Their engagement in civic and philanthropic causes offers strong assurances that in the decades to come, this region will be in good hands with these young but accomplished business leaders,” Ingram’s stated in its April issue. Congratulations, Zalman!
May 2018 | Volume 24, No. 4 | www.kchba.org
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www.kchba.org | Volume 24, No. 4 | May 2018
Artisan Home Tour June 7-17 Mark your calendars to visit homes on the Artisan Tour June 7-17, sponsored by U.S. Bank and its Wealth Management Department. Seven homes by six custom home builders will showcase elevated standards of design, superior craftsmanship and exquisite products -- the kind of detail and character that you don’t find just anywhere. This year’s Artisan Tour builders are Allure Luxury Homes, Ashner Construction, Casa Bella Construction, Don Julian Builders, Rodrock Homes, Starr Homes (2 homes). The HBA is also proud that this event will benefit Ronald McDonald House Charities-Kansas City. The feeling of “home” is even more important when a family is facing illness — it brings comfort and security in a time of need. The HBA is honored to be able to continue our long association with Ronald
10
McDonald House. Thus, a portion of the ticket sales will benefit RMHC’s mission of keeping families close when their children are sick. Tickets are on sale now. Visit ArtisanHomeTourKC.org for more information and to purchase tickets. Tickets to visit all homes are $35 at the door/$30 online and tickets to visit just one home are $10 at the door or online. HBA members can buy 25 or more tickets for $25 each. This is a great way to give tickets to family, friends and clients as well as support the Ronald McDonald House. The HBA would also like to thank Samsung Home Appliance, Ferguson, Kansas City SPACES magazine, Stewart Title and Tradition Home Group for sponsoring this tour. Thank you for your support!
May 2018 | Volume 24, No. 4 | www.kchba.org
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www.kchba.org | Volume 24, No. 4 | May 2018
Thanks to These HBA 2018 Sponsors PLATINUM
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Bank of Blue Valley SILVER Bovard Insurance Group Henges Insulation & Fireplace Builders FirstSource Morgan Wightman Supply Capitol Federal North American Savings Bank Fasone & Partners Ferguson Enterprises Pacific Mutual Door High Definition Drywall Shamrock Cabinet K&E Flatwork Kansas Gas Service BRONZE Kansas Granite Mart Commerce Bank Kenny’s Tile Complete Home Concepts Kitchens & Baths by Briggs Cornerstone Companies McCray Lumber & Millwork CrossFirst Bank Northcraft Flooring & Design Hermes Landscaping Owen Lumber Kansas City Title Phelps Engineering Locks & Pulls Rew Materials Pella Products of Kansas City Spire ProSource Star Companies Raynor Garage Door Sun Lumber ReeceNichols Wilson Lighting Trendstone/Cambria United Heating, Cooling & Plumbing
HBA Staff Josh Clark Executive Vice President jclark@kchba.org 816-733-2216
Dawn Allen Director of Member Services & Events dawn@kchba.org, 816-733-2239
Marcia Jurgens Vice President of Administration marcia@kchba.org, 816-733-2215
Kelcee Schlotzhauer Permit and Show Sales Coordinator kelcee@kchba.org, 816-733-2246
Gina Battle Director of Parade of Homes gina@kchba.org, 816-733-2219
Katie Walkley Government Affairs Manager-Missouri katie@kchba.org, 816-733-2241
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ǁǁǁ͘ŵŝŬĞďƌLJĂŶƚŚǀĂĐ͘ĐŽŵ
Kari English Communications Director kari@kchba.org, 816-733-2213
May you never lose your cool with the ǁǁǁ͘ŵŝŬĞďƌLJĂŶƚŚǀĂĐ͘ĐŽŵ ǁǁǁ͘ŵŝŬĞďƌLJĂŶƚŚǀĂĐ͘ĐŽŵ variety of options we have to keep your ǁǁǁ͘ŵŝŬĞďƌLJĂŶƚŚǀĂĐ͘ĐŽŵ Courtney Reyes Government Affairs homes conditioned for the spring & Manager-Kansas May you never lose lose your cool with the May you summer months. May younever never loseyour yourcool coolwith withthe the Workforce Development variety of options we have to keep your courtney@kchba.org, variety of have to keep variety ofoptions optionswe wefor have to keep&your your 816-733-2214 homes conditioned the spring "March winds and April showers, homes for homesconditioned conditioned forthe thespring spring && Erica Wallace summer flowers"months. bring forth Maysummer Membership & Events Support summermonths. months. erica@kchba.org 816-733-2217
"March winds and April showers,
"March winds April Mayand flowers" bring forth "March winds and April showers, showers, bring forth May flowers" bring forth May flowers"
Nicole Orr Administrative Assistant nicole@kchba.org, 816-733-2221 12
May 2018 | Volume 24, No. 4 | www.kchba.org
New Members Artistic Concrete Surfaces, LLC Mike Denny 20559 Lone Elm Rd Spring Hill, KS 66083 (913) 829-7222 www.kansascityconcrete.com
New Affiliates PPG Paints Michelle Schneider 8619 Quivira Rd. Lenexa, KS 66214 www.ppgpaints.com
Nuvo360 Kelly Miller 9449 Redbud Ln Lenexa, KS 66220 (913) 952-4183 www.nuvo360.com
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www.kchba.org | Volume 24, No. 4 | May 2018
Member Anniversaries
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Kline Concrete and Construction
Complete Home Concepts, Inc.
Maples Construction Co., Inc.
Henges Insulation and Fireplaces
Robertson Construction, LLC
1979
SRS Design, LLC
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2012
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Williams Insulation & Gutters
1983
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Bickimer Construction, Inc.
Arvest Bank
Gene Fritzel Construction Company
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Hunt Midwest Real Estate Development, Inc.
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CMP Construction
Pollard & Associates
Kansas Builders Insurance Group
1999
Kohler Signature Store
Freeman Custom Homes
Origin Bank Home Lending
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New Homes Journal 2003 Cecil & Ray Homes, Inc. 2005 Premiere Marketing 2009 Harrison Baker Insulation, LLC Homoly Signature Homes
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Augustine Services, Inc.
May 2018 | Volume 24, No. 4 | www.kchba.org
First Quarter Permit Activity Slowed Slightly from Q1 2017 Residential permits issued during the first quarter of 2018 have slowed slightly compared to the same period during 2017. The 1,432 single family units permitted through March 2018 are a decrease of 5 percent from the level of activity in 2017’s first quarter. Considering the headwinds faced by builders—a cold spring, rising materials costs and a labor shortage, the permit activity shows that the building industry remains strong as demand for housing rises. Villas, often in maintenance-provided communities, are becoming increasingly popular with area homebuyers. Local builders have pulled permits during the first quarter to construct more than 70 villas in the metro area. Kansas City, Mo., recorded the highest number of permits so far in 2018, with 207 in Clay and Platte counties and 15 in Jackson County. Blue Springs, with its developments of Colonial Highlands, Eagle Ridge Villas, and Tequesta Village, has the second highest number of permits issued with 182 units. Olathe, Lee’s Summit, and Overland Park round out the top five cities with the most permits issued.
March 2018
Residential Building Permit Statistics
Residential Building Permit Statistics FEBRUARY 2018 CASS COUNTY Archie Belton Cass County Cleveland Garden City Harrisonville Lake Winnebago Lee's Summit Peculiar Pleasant Hill Raymore Village of Loch Lloyd
CLAY COUNTY Clay County Excelsior Springs Gladstone Kansas City Kearney Lawson Liberty North Kansas City Pleasant Valley Smithville JACKSON COUNTY Blue Springs Buckner Grain Valley Grandview Greenwood Independence Jackson County Kansas City Lake Lotawana Lee's Summit Oak Grove Raytown Sugar Creek PLATTE COUNTY Kansas City Parkville Platte City Platte County Riverside Weatherby Lake Weston JOHNSON COUNTY De Soto Edgerton Fairway Gardner Johnson County Leawood Lenexa Merriam Mission Hills Olathe Overland Park Prairie Village Roeland Park Shawnee Spring Hill Westwood
Single MultiFamily Family Total Units^ Units% Units 0 3 0 0 0 1 0 4 11 1 5 1 26
0 0 0 0 0 0 0 0 0 0 0 0 0
0 3 0 0 0 1 0 4 11 1 5 1 26
S-F Units YTD
M-F Units YTD
Total Units YTD
0 17 0 0 0 2 1 6 11 3 9 1 50
0 0 0 0 0 0 0 0 0 0 0 0 0
0 17 0 0 0 2 1 6 11 3 9 1 50
1 0 1 50 17 0 2 0 0 5 76
0 0 0 0 0 0 0 0 0 0 0
1 0 1 50 17 0 2 0 0 5 76
4 1 1 87 24 0 3 0 0 12 132
0 0 0 0 0 0 0 0 0 0 0
4 1 1 87 24 0 3 0 0 12 132
101 0 3 0 0 11 3 5 1 27 1 0 0 152
0 0 0 0 0 0 0 0 0 0 0 0 0 0
101 0 3 0 0 11 3 5 1 27 1 0 0 152
135 0 7 0 0 32 8 5 3 51 3 0 0 244
0 0 0 0 0 0 0 0 0 0 0 0 0 0
135 0 7 0 0 32 8 5 3 51 3 0 0 244
19 6 0 7 1 0 0 33
0 0 0 0 0 0 0 0
19 6 0 7 1 0 0 33
39 12 0 21 11 2 0 85
0 0 0 0 0 0 0 0
39 12 0 21 11 2 0 85
1 0 1 18 3 2 10 0 0 43 39 1 0 9 8 0 135
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
1 0 1 18 3 2 10 0 0 43 39 1 0 9 8 0 135
1 0 3 23 6 4 44 0 1 103 58 11 0 20 21 1 296
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
1 0 3 23 6 4 44 0 1 103 58 11 0 20 21 1 296
LEAVENWORTH COUNTY Basehor Lansing Leav. County Leavenworth Tonganoxie WYANDOTTE COUNTY Bonner Springs Edwardsville KCK/Wyandotte Co MIAMI COUNTY Louisburg Miami County Osawatomie Paola Spring Hill Totals
Single MultiFamily Family Total Units^ Units% Units
S-F Units YTD
M-F Units YTD
Total Units YTD
19 0 3 0 0 22
0 0 0 0 0 0
19 0 3 0 0 22
26 0 7 0 4 37
0 0 0 0 0 0
26 0 7 0 4 37
0 0 11 11
0 0 0 0
0 0 11 11
0 0 22 22
0 0 0 0
0 0 22 22
0 1 0 0 4 5
0 0 0 0 0 0
0 1 0 0 4 5
1 4 0 1 4 10
0 0 0 0 0 0
1 4 0 1 4 10
460
0
460
876
0
876
Comparison of Single Family Building Units for Greater Kansas City (Cass, Clay, Jackson, Platte, Johnson, Leavenworth, Miami, Wyandotte Counties)
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Month/Year January February March April May June July August September October November December
2011 90 121 180 210 230 262 204 205 202 205 185 207
2012 188 182 270 277 294 268 288 260 379 331 283 279
2013 273 224 335 444 337 333 409 354 384 369 340 288
2014 287 216 362 439 385 364 375 352 383 468 312 328
2015 240 260 393 437 395 438 399 425 462 459 360 432
2016 274 408 542 523 503 578 494 536 424 466 417 352
Annual Total
2,301
3,299
4,090
4,271
4,700
5,517
2017 2018 457 416 477 460 571 562 504 567 512 480 514 583 502 468 6,197
876
Comparison of Permits By Units Issued Year to Date
2011 2012 2013 2014 2015 2016 2017 2018
S-F Units 211 370 497 503 500 682 934 876
2011 - 2018 M-F Units 0 32 81 544 316 162 0 0
Total Units 211 402 578 1047 816 844 934 876
^The Single Family number is units and includes both attached and detached units. %Multi-Family units are in buildings with 5 or more units. # Not available at time of report Permit information reflects the most recent data at time of publication. In order to ensure accurate recording of residential building permit statistics, the HBA may revise monthly and year-to-date figures when updated data is made available. Copyright 2018 Home Builders Association of Greater Kansas City. All rights reserved.
www.kchba.org | Volume 24, No. 4 | May 2018
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