2016 August Plains Builder

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PLAINS

BUILDER A magazine for HBA of F-M members | www.hbafm.com | August 2016


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ADVERTISING INDEX

Acme.................................................................. 10 Alerus................................................................. 34 Bell State Bank & Trust...................................... 22 Blue Cross Blue Shield of North Dakota.............. 15 Camrud Foss Concrete Constr. Inc..................... 34 Carpet World...................................................... 34 Cass County Abstract......................................... 32 Cass County Electric Cooperative....................... 22 Central Minnesota Credit Union........................... 16 City View Property Management LLC................... 11 Dawson Insurance............................................... 11 Dietrich Construction............................................. 2 Gemstone Masonry............................................. 16 Goodin Co.......................................................... 35

Hauck & Buchholz Drywall Inc............................. 11 Knight Printing...................................................... 4 Lampert Lumber.................................................. 32 Northland Truss Systems, Inc.............................. 32 Property Resources Group.................................. 22 Rigels................................................................. 16 RLN.................................................................... 36 Stenerson Lumber............................................... 32 Stone Countertop Outlet...................................... 15 The Title Company.............................................. 32 TRN Abstract & Title........................................... 15 Valley View......................................................... 15 Xcel Energy.......................................................... 3

You must call 8-1-1 at least two days before you dig. It can be dangerous and costly to dig into a buried gas or electric line.

PUT DOWN THE SHOVEL AND PICK UP THE PHONE.

A professional will come to locate our buried gas and electric lines in your yard at no cost to you—just wait the required time. Learn more about safety at xcelenergy.com/Safety.

© 2016 Xcel Energy Inc.

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6/15/16 2:32 PM

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Letter From the HBA President

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Letter From the North Dakota Association of Builders

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Letter From the HBC President

News Briefs

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Letter From the Remodelers Council Chair

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Letter From the Builders Association of Minnesota Proudly printed by

Digital Printing. Offset Printing. Mailing Services. Fulfillment. www.knightprinting.com

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Connections

Advocacy

Do They Want to Learn, Help or Meet?

F-M Area Diversion Takes Big Step With Signing

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Education

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Copyright Protection For House Plans: What you Need to Know

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Workforce

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Get Involved to Help the Industry - HBC President’s Message

Information

Marketing

Home Builders Post Strong Second-Quarter F-M Metro Permit Numbers

Home & Garden Show Booths now Available

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Benefits

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HBA of F-M June Accomplishments

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PLAINS

BUILDER

The Plains Builder is published 12 times per year by the Home Builders Association of Fargo-Moorhead. It is mailed or emailed to members of the HBA of F-M. Publisher Bryce Johnson Editor Krista Mund

Coordination, Design and Production Chelsea Smith Ad Sales Allison Weckman

ASSOCIATION STAFF Office Coordinator Tahra Doll

Membership & Marketing Coordinator Sami Eidenschink Director of Development & Education Jenny Erickson Communications Intern Ashley Germann Chief Executive Officer Bryce Johnson Executive Vice President Krista Mund Director of Accounting & Records Amanda Ohlsen Communications Coordinator Chelsea Smith Senior Events & Marketing Coordinator Allison Weckman

ON THE COVER: The HBA of F-M held a Golf Outing July 19 and will hold a second outing Sept. 13. See page 20 for a recap of July’s Outing. The Home Builders Association does not accept responsibility for or endorse any statements or claims made by advertisers or authors of any articles. Subscription rate is included in annual dues. Please address editorial inquiries to Home Builders Association of Fargo-Moorhead, 1802 32nd Avenue South Fargo, ND 58103. www.hbafm.com

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HBA PRESIDENT’S LETTER

We Welcome You to Welcome Others

What do you love about the HBA of F-M? Why are you a member? What’s your favorite thing the HBA does? How has it helped you become more professional in your job? Also, please share those feelings with prospective members! Your HBA needs to recruit 52 new members to reach our goal of 75 by the December board of directors meeting. We especially need new Builder members as we’ve set a goal of 25 and we’ve recruited 13 as of now. Take a look through the directory (hard copy or at www.hbafm.com/ findamember). You may be surprised to see how many companies aren’t a member yet. Think about businesses and people you work with each day who may be interested in joining. Sometimes all it takes is phone call or personal visit. If you need some pointers on recruiting, wonder whether a company will qualify for membership within the HBA, contact Sami Eidenschink at (701) 232-5846 or sami@hbafm.com. One of our priorities this year is to continue fostering a welcoming culture with person-to-person contact and invitations for member events. Our Membership Committee is exploring setting up an Ambassadors Task Force to welcome new members and others to our networking events. We want all who attend to feel comfortable and to make valuable contacts within the building industry. This task force will engage newcomers at our meetings, and remind our long-time members to make the rounds and engage with everyone! If you are interested, let Sami Eidenschink know. It’s not a major time commitment, and the more socializing we have at our meetings, the more comfortable everyone will feel. Last but not least, please mark your calendar for the evening of Oct. 25 for the HBA’s Annual Meeting & Awards Gala. This is going to be awesome! We’ll highlight a local economic study by a top National Association of Home Builders’ economist, award the HBA’s highest honors and celebrate our 60th anniversary in style.

HBA keeps tabs on Diversion developments

Turn to page 27 to read the latest with the F-M Area Diversion. This month, we expect the Cass County Commission and Fargo Commission to vote on specific ballot language regarding a financial plan that includes extending existing sales taxes. Please watch future communications for updates and actions needed by the membership. Don’t forget the Fall Parade of Homes will be Sept. 17-18 and 24-25 with the Remodeled Home Tour running Sept. 24-25 only. Watch for all the details in September’s Plains Builder.

Home Builders Association of Fargo-Moorhead 1802 32nd Ave. S. Fargo, ND 58103 Phone: (701) 232-5846 www.hbafm.com

Home Builders Association of FargoMoorhead was founded in 1956. It is a local 501(C) 6 nonprofit trade organization.

PRESIDENT

Tom Spaeth, Accent Contracting

PRESIDENT ELECT

Tyrone Leslie, Heritage Homes

TREASURER

Dustin Murray, Dustin Murray Construction

ASSOCIATE VICE PRESIDENT

Paul Krabbenoft, Coldwell Banker First Realty

SECRETARY

Robin Swanson, Superior Insurance

DIRECTORS

Dawn Cruff, Green Team Realty Jason Eid, Eid-Co Buildings, Inc. Darrick Guthmiller, Kochmann Brothers Homes, Inc. Ursula Hegvik, Smart Spaces John Koerselman, Red River Drywall & Decorating Services, Inc. Kimberly Krueger Tehan, Krueger Construction, Inc. Stephanie Lindemann, Revive Contracting LLC Terry Lipp, Ferguson Bath, Kitchen & Lighting Showroom Gary Orth, Cornerstone Specialties, Inc. Todd Rasmussen, Valley Lights Broc Roberson, Stone Ridge Builders, Inc.

PAST PRESIDENT

Clay Dietrich, Dietrich Homes, Inc.

SENIOR LIFE DIRECTOR

Gerald Eid, Eid-Co Buildings, Inc.

LIFE DIRECTOR AND NDAB STATE REPRESENTATIVE

John Gunkelman, Dakota Construction of Fargo, Inc.

NDAB BUILD-PAC TRUSTEE

John Koerselman, Red River Drywall & Decorating Services

LIFE DIRECTOR AND NDAB ASSOCIATE NATIONAL DIRECTOR Ken Krajsa, Bell State Bank & Trust

LIFE DIRECTOR AND NDAB SECOND VICE PRESIDENT Dan Lindquist, Dan Lindquist Construction, Inc.

LIFE DIRECTOR

Don Dabbert, Jr., Dabbert Custom Homes, Inc. John Mahan, Mahan Construction, Inc.

Tom Spaeth Accent Contracting HBA President 6

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Hires & Promotions

Heather Heick has been promoted to VP/branch manager at Bell State Bank & Trust. Heick earned a degree in finance from Minnesota State University Moorhead and has been in the banking field for 19 years. She joined Bell State Bank & Trust in 2003. Patty Bohnenstingl has been promoted to vice president/banker support manager. BlackRidgeBANK has hired Suzanne Barry as an operations associate in bank operations and Alley Selander as customer service representative. Border States Electric has named Nick Longfors financial planning and analysis manager, Jonathan Axtman as digital strategy manager and Bruce Penas market director — industrial. Dakota Supply Group recently hired Mark Feeney as its new Chief Financial Officer. Feeney will lead DSG’s financial management efforts and oversee the company’s accounting department. In addition, he will be responsible for setting financial objectives, maximizing financial performance and positively contributing to DSG’s leadership team. Before joining DSG, Feeney spent 20 years in financing in a variety of sectors, including manufacturing, construction, real estate and healthcare. He works out of DSG’s Fargo headquarters. “Mark brings a good deal of experience to our financial team,” says Todd Kumm, CEO of DSG. “He has a proven track record of financial success, and his high-energy, results-driven approach will serve to strengthen us internally so that we can be an even stronger partner for our customers.” DSG is one of the Midwest’s leading distributors of innovative electrical, plumbing, HVAC/R, utility, communications,

waterworks and automation products, with roots tracing back to 1868. Headquartered in Fargo, DSG has 36 locations throughout Minnesota, Montana, North Dakota, South Dakota and Wisconsin. It is an employeeowned company and an affirmative action employer with nearly 800 employee owners. Diane Henricks has joined Dawson Insurance as a commercial lines account manager. Fargo Glass & Paint has hired Mike Houdek and Ben Pitz in the contract glass department. Houdek attended North Dakota State University, and has worked in the glazing industry for ten years. Pitz earned a bachelor’s degree in biology from NDSU and has 18 years of experience in the construction industry. Gate City Bank has promoted Justin Dunn to universal loan officer, Teresa Jesten to customer service and sales supervisor and Shannon McKee to personal loan officer. Goldmark Property Management has promoted Quinne Goodwin-Chaffee, Bryan Huso, Brianna Otteson and Ashton West to community office managers. Moore Engineering has hired Lyle Zeren as a CADD technician in the land and site development group, Kyle Schumaker as a CADD technician in the municipal group, Matt Prochniak as a graduate engineer in Moore’s land and site development group, Alison Hanslip as a graduate engineer in the company’s transportation group, Benji Schwartz as a resident project representative, Adam Hejtmanek as an HVAC inspector in the building group and Navaratnam Leelaruban (Leelan) as a graduate engineer in the water resources group. Troy Opsahl has been promoted to survey group leader. Flom Property Group of Keller Williams Roers Realty has hired Mindy Rodke as an executive assistant. Kathy Weiss has been promoted to

executive mortgage officer at Town & Country Credit Union. Beth Prigelmeier has recently transitioned into the role of mortgage loan officer at Western State Bank.

Honors & Officers

Randy Newman, the chairman, president and chief executive officer of Alerus Financial Corp., has been named an Entrepreneur of the Year in the Upper Midwest by Ernst and Young. Newman received the upper Midwest’s top honor in the Financial and Technology Services category. The program, now in its 30th year, recognizes entrepreneurs who demonstrate excellence and extraordinary success in such areas as innovation, financial performance and personal commitment to their businesses and communities. The United States Department of Agriculture Rural Development has recognized Gate City Bank as its top lender under the Guaranteed Rural Housing loan program in North Dakota for the second year in a row. In the past year, Gate City Bank has approved a total of $5.8 million in Guaranteed Rural Housing loans, more than any other lender in North Dakota. In all, 51 approved lenders around the state participated in the program to help rural residents achieve home ownership. Moorhead Public Service recently received the American Public Power Association Energy Innovator Award for its Capture the Sun Community Solar Garden Program. MPS accepted the award June 14 at APPA’s national conference. The Energy Innovator Award is a national honor by APPA to recognize utilities that have demonstrated advances in the development and application of creative, energy-efficient technologies, customer service enhancements and operational efficiencies. Gov. Jack Dalrymple has appointed Scott Breidenbach of Park Co. Realtors to the North Dakota Real Estate Commission. This commission

News Briefs continued on page 31

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FIELD Booth Size d x w

by Allison Weckman, Senior Events & Marketing Coordinator Planning for the 2017 Home & Garden Show is in full swing and that means you can reserve your booth space now! The 56th annual Home & Garden Show is marking its 25th year in the Fargodome. The show brings in 8,000-9,000 prospects, which provides you an opportunity to meet face-toface with prospective customers. With the addition of a new mobile app, Kid’s Treasure Hunt and Beer Walk last year, the HBA of F-M plans on expanding and improving these features. Similar to last year, the HBA of F-M will highlight local speakers to promote consumers to work with local companies on their projects. HBA of F-M member Valley Lights has been involved in the Home & Garden Show for over 30 years! Todd Rassmussen, Valley Lights, says, “It is the only show we participate in. The HBA of F-M does an amazing job of promoting the show, resulting in thousands of attendees each year. This show provides us with an excellent opportunity to showcase the variety of products that we provide to our consumers and allows us to reach out to potential new consumers as well. We look forward to being a part of the Red River Valley Home & Garden Show for the next 30 years.” Booth space opens up to previous non-member exhitors Aug. 15. If you reserve your booth before Nov. 18, 2016, you will receive the Early Bird Member rate! Get your reservation in today. For questions on booth space availability contact Allison Weckman at (701) 232-5846 or allisonw@hbafm.com.

MAIN FLOOR Early Bird Member

Regular Member

Early Bird Non-Member

Regular Non-Member

Badges

10’ x 10’................... $640 ......$675.........$800 .........$840........... 6 10’ x 10’ Corner....... $705 ......$740......... $880 .........$925........... 6 10’ x 20’................$1,265 ... $1,330...... $1,580 ...... $1,660........... 8 10’ x 30’................$1,875 ... $1,970...... $2,345 ......$2,460........... 9 10’ x 40’...............$2,470 ...$2,590......$3,085 ......$3,240..........10 10’ x 50’...............$3,045 .. $3,200...... $3,810 ..... $4,000..........10 15’ x 10’................... $955 ... $1,005....... $1,195 ...... $1,255........... 8 15’ x 10’ Corner.... $1,050 ....$1,105....... $1,315 ...... $1,380........... 8 15’ x 15’ Corner.... $1,560 ... $1,640...... $1,950 ..... $2,050........... 8 15’ x 20’................$1,875 ... $1,970...... $2,345 ......$2,460........... 9 15’ x 30’...............$2,760 ...$2,895......$3,450 ......$3,620..........10 15’ x 40’............... $3,610 ...$3,790...... $4,510 ......$4,735..........12 20’ x 20’...............$2,470 ...$2,590......$3,085 ......$3,240..........10 20’ x 30’............... $3,610 ...$3,790...... $4,510 ......$4,735..........12 20’ x 40’...............$4,690 ...$4,925...... $5,865 ...... $6,160..........14 20’ x 50’...............$5,720 .. $6,005...... $7,150 ......$7,505..........18 20’ x 60’...............$6,690 ...$7,025......$8,360 ......$8,780......... 20 30’ x 30’............... $5,210 ...$5,475.......$6,515 ......$6,840..........16 30’ x 40’...............$6,690 ...$7,025......$8,360 ......$8,780......... 20 30’ x 50’...............$8,045 ...$8,450.... $10,060 ....$10,560......... 22

CONCOURSE

Booth Size d x w

Early Bird Member

Regular Member

Early Bird Regular Badges Non-Member Non-Member

Regular Member

Early Bird Regular Badges Non-Member Non-Member

8’ x 10’..........$485 ......... $510 ........ $610 ....... $640...........6 8’ x 20’..........$960 ...... $1,010 ..... $1,200 .....$1,260...........8 8’ x 30’....... $1,425 ...... $1,495 ..... $1,780 .....$1,870...........8 8’ x 40’....... $1,875 ......$1,970 .....$2,345 .... $2,460...........9 8’ x 50’....... $2,315 ..... $2,430 .....$2,895 .... $3,040......... 10 Triangle..... $3,270...... $3,435......$4,090..... $4,295........ 20 Corner Entire..........$3,955.......$4,150......$4,940......$5,190.........22 Corner

LOBBY Booth Size d x w

Early Bird Member

8’ x 10’..........$515 ........ $540 .........$640 ....... $675...........6 8’ x 20’....... $1,010 ......$1,065 ...... $1,265 .....$1,330...........8 8’ x 30’.......$1,500 ...... $1,575 ...... $1,875 .....$1,970...........8 8’ x 40’.......$1,975 ..... $2,075 ..... $2,470 .... $2,590...........9 16’ x 20’.....$1,975 ..... $2,075 ..... $2,470 .... $2,590...........9 24’ x 20’.... $2,885 ..... $3,030 ...... $3,610 .... $3,790......... 10 32’ x 70’.... $7,345.......$7,710....... $9,180..... $9,640........ 25 OUTSIDE 30’ x 30’.....$2,010....... $2,110....... $2,515..... $2,640......... 16 14’ X 90’.....$2,815...... $2,955...... $3,520..... $3,695........ 20

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Booth rates are subject to change. Early bird rates available through Nov. 18, 2016. Regular rates start Nov. 19, 2016.

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Copyright Protection For House Plans: What you Need to Know

by Jenny Erickson, Director of Development & Education In June the HBA of F-M brought John Ritchie, NAHB associate general council, to Fargo to discuss copyright protection and what members need to know. The copyright law was last amended in 1976. It is entirely statutory and is handled in Federal court. This means it preempts any state law or regulations. Copyright law covers any “original work of authorship” which means anything that is written down, in a computer program or anything fixed in a “tangible medium of expression.” If it can be copied or reproduced, it is covered under the copyright law. Originality is a requirement to coverage under the law as well. Work must show a “minimal degree of creativity.” Before 1990, house plans weren’t covered because they were a “useful item.” Now, protection of plans arises immediately, at the moment of creation, as soon as it is fixed in tangible expression. There is no need to file or register in order to receive protection, however if any infringement takes place, you have more rights if you have registered officially. Joint work for copyright protection is also something to consider. Consumer drawings on a napkin or envelope should not receive copyright protection for a joint work. Ritchie recommended that members put everything into writing, especially with consumers. Reiterate that you, the member, are the sole author. Authors can transfer rights as they see fit and can license work. An example: A lumberyard hires an architect to draw plans for a consumer. The architect owns the plan and allows the lumberyard to use or license the plans for the consumer. Even if the consumer paid for the plans to be drawn up, they don’t actually own the copyright to the plans. Ritchie recommended that members do not let a consumer have a copy of the plans or to take the plans with them. Make it clear that you own the plans and make it clear that they do not have the right to use the plans. By letting them leave your office with copies of the plan, it could be argued, you are giving them an implied license to use the plans. Copyright protection is immediate, however, there are benefits of registering your copyright. You can register your work online at www.copyright.gov. The starting registration rate is $35. Registering a copyright is a prerequisite for filing an infringement action. If you file within three months after first publication or before the first infringement occurs, you could be entitled to recover statutory damages, attorney fees and court costs. Go slowly through the form, answering as honestly as possible. The statute of limitations is three years after the plaintiff “discovered” the infringement. The copyright owner has to show that the infringer “copied constituent elements of the copyrighted house plans that are original.” The infringer also has to have had access to the work and it has to be a “reasonable

possibility,” not just a “mere possibility.” Plans online or in a brochure are not sufficient to prove access. Key points: • If you create one-of-a-kind custom homes, have your plans registered. • Be aware of consumers bringing plans with names cut off. • Cover yourself. If a consumer brings in plans, ask for something in writing that he or she has permission to use the plans. • If an employee draws up plans for the employer, the employer is the author. • Use standard AIA contracts. There are good provisions to protect your plans. • Keep good records of who has had access to your plans and to whom you have licensed plans. This will help to prove access • Copyright also covers the actual building. Copying a plan from walking through the house is considered copyright infringement. Ritchie is available to communicate with members. While he cannot give legal advice, he can give clarification and general information. Contact Ritchie at (202) 266-8571 or jritchie@nahb.org. Source: Powerpoint presentation provided by John Ritchie, NAHB associate general council.

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TRUST IS BUILT

One act at a time. By keeping your word, your promise. By doing what you said you would. Time and time again. Without fail. We’ve been building trust in this community for nearly 100 years. Contact us at dawsonins.com.

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NORTH DAKOTA ASSOCIATION OF BUILDERS

Be Educated About Upcoming Elections

Nov. 8 is election day and we at the North Dakota Association of Builders believe it is never too early to start discussing the upcoming elections. With the colder temperatures (even though that is hard to imagine with the beautiful August temperatures!) comes election time. Many of you might remember our article a couple of months back that discussed the June primary and now I am already discussing the general election! It is very important to take time to educate yourself on which candidates will be on the November ballot for your local races, legislative seats, and statewide offices, and to learn more about each ballot measure you will be asked to cast a vote on. For a little background on the candidates, you will have the opportunity to vote on seven statewide positions which include governor/lt. governor, state auditor, treasurer, insurance commissioner, public service commissioner, U.S. Senate and U.S. Congress. For the state Legislature, there are 23 seats for the N.D. Senate and 46 seats for the N.D. House of Representative with a total of 69 positions being voted on. With the days and months leading up to election day, you will have many opportunities to meet with your local candidates whether it be watching a debate or participating in a forum, opening your door when a candidate door knocks or joining your local Association at a candidate meet-and-greet. If you feel strongly about a candidate or an issue, considering volunteering or making a financial contribution. NDAB-PAC will be making financial contributions to the legislative candidates and some local candidates. We value the relationships we can build with key decision makers and appreciate those in the local communities that can continue to expand on those relationships and help share the vision and direction that NDAB works toward on advocating for our members and the industry. To those of you who have stepped up, and may be out of your comfort zone, and placed your name on the ballot at any given time, we thank you! We know it is not easy to put yourself out there, to devote your time to issues you believe in and take time away from your family and your work. Kim Schneider NDAB Executive Officer

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Value in Your Membership

As I was making sure I had everything in order for the National Association of Home Builders meeting in Miami, I came across a few articles from NAHB. I want to share some of the points. The first article provides an analysis of additional revenue and cost savings for NAHB members through advocacy efforts over the past year. The advocacy efforts gave us lower FHA Mortgage Insurance Premiums, a savings on average of $1,440; helped defeat a proposal to raise mortgage guarantee fees, a savings on average of $689; the PMI Tax deduction was extended, a savings on average of $259; the Energy Efficient Remodeling Tax Credit was extended, a savings of $358; and the Energy Efficient home Tax Credit was also extended, giving a savings of $287. To read the article yourself, visit valueofnahb.org to get in-depth information on the mentioned advocacy victories. As builders we are always burdened with regulations, codes and taxes, driving up the price of housing. To ensure that we can continue to build the American Dream, we are urging lawmakers to: reduce burdensome regulations, adopt sensible workforce development and immigration policy, address soaring health costs, promote costeffective energy efficiency, protect middle class tax benefits, and enact housing finance system reform. Another article I read covered member benefits. One benefit covered included advocacy which I just discussed above. The building industry needs to have a strong voice to defeat excessive regulations and defend affordable housing initiatives. Members also have access to critical news and information through outlets like NAHB Now, Eye on Housing, specialty newsletters and social media. Your membership provides access to networking opportunities in local communities, at the state and nationally, providing hundreds of ways for you to meet and build relationships with fellow professionals, future customers and suppliers. Nationally recognized education programs give you the tools to gain an edge in the industry and marketplace with access to NAHB expert advisors who can address your specific business questions. As we continue to watch issues, we need you to stay informed and involved, the core of our Association is our members’ voices. Arnold Karsky NDAB President www.hbafm.com


NDAB NEWS

Volume XXIII, Issue 8 Monthly News from the North Dakota Association of Builders August 2016

Bismarck-Mandan Home Builders Association Dot Frank, Executive Officer 701-222-2400 bmhba.com

• The Annual PAC Golf Tournament was met with success and high winds. The event, which is a joint effort with the Bismarck-Mandan Board of Realtors, brought housing industry supporters together for a day of networking and fundraising. • Association members testified in support of eliminating the requirement to sheetrock the lids of unfinished basements. Members shared concerns with the code in front of the North Dakota Building Codes Council during the public hearing. • The Association is gearing up to host the Fall Parade of Homes. Over 30 homes are expected to be open during the last weekend of September for the event. • NDAB-PAC and BUILD-PAC Trustee Vance Vetter is hosting a PAC the House Party Aug. 2. The event will recognize contributors who donated $100+ in the past two years. Members are encouraged to get on the guest list by making a BUILD-PAC contribution.

Dickinson Area Builders Assoc. Tiffaney Dolechek, Executive Officer 701-483-0044 dickinsonareabuilders.com

• Our summer Picnic is Aug. 10 and we hope to see all of our members there! We are planning on having lots of food, fun and networking. • Our golf scramble is Aug. 18, registration is open and we are looking for sponsors. This year we have 18 holes and we are adding new games and ideas. • Our Parade of Homes continues to look successful. We are working hard on getting the word out to community, looking for sponsors, getting home entries and selling advertisements.

Forx Builders Association Betty McDonald, Executive Officer 701-746-4536 forxbuilders.com

• Our Annual Golf Outing is on the calendar for Sept. 15 at the Grand Forks Country Club. Marvin Windows and Doors will be our title sponsor. Beverages will be provided by Weber Irrigation and Premium Waters. Brats and chips will be served for lunch with a taco bar buffet served after the golf outing. Registration is now open. Members of the Golf Committee are Chip and Andy Shea and Kyle Weber.

Minot Association of Builders Elysha Head, Executive Officer 701-852-0496 minotab.com

• MAB debuted a new website in late July! • The Minot Association of Builders is excited to announce the Builder Ball Drop! The MAB annual golf tournament is Aug. 15 at the Vardon Golf Course. MAB has partnered with Outdoor Living and Spas, First International Bank & Trust, iHeart Radio and the Souris Valley Animal Shelter to make the Builder Ball Drop happen! We’re going to sell numbered tickets for $5 toward a chance to win an XL Big Green Egg Grill. The number on each ticket will correspond to a numbered golf ball. To kick off the annual event, all the numbered golf balls will be loaded into a helicopter and dumped over the third fairway of the Vardon. The first ball in the hole will win the grill! The proceeds will benefit the animal shelter as well as the Minot Association of Builders. Tickets are available at Outdoor Living & Spas, All Minot First International Bank & Trust locations, the Souris Valley Animal Shelter, iHeart Media and Visit Minot. • Our annual MAB Trap Shoot will be held Sept. 8. The trap shoot is one of our favorite events and we’re looking forward to a great member turnout! • Our Parade of Homes will be held on Oct. 1 from 10 a.m. - 6 p.m. More details to come!

Williston Area Builders Association 701-572-5744 willistonbuilders.com

• WABA is sad to say goodbye to Janna Lutz. She has done a great job this past year. We wish her good luck as she starts her new position with the Williston Area Chamber of Commerce. • We are gearing up for our 1st Annual Clay Shoot & Raffle Aug. 18! If you are interested in buying a raffle ticket, the grand prize is $1,000 or if you would like to attend the Clay Shoot, visit our website or call the office for more information! • Our 2nd Annual Golf Scramble is Aug. 29 at Eagle Ridge Golf Club in conjunction with Williston Economic Developments Summit & Trade Show “The WEST” Event. • WABA’s Fall Parade of Homes is scheduled for the Sept. 24 weekend.

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BUILDERS ASSOCIATION OF MINNESOTA

BAM: Advocate and Watchdog Article II, Section VIII (2016)

by Forrest Cyr, BAM Communications & Government Affairs Associate

Policy Platform – By Members, For Members

As the non-partisan advocacy organization for Minnesota’s building industry, the Builders Association of Minnesota works with stakeholders from all corners of the state to achieve meaningful legislative outcomes for the membership and the communities they live. Our Government Affair Committees, based on feedback from our statewide membership, develops the BAM’s policy platform. This platform represents the needs of our members’ business, and the regulatory barriers they face everyday. Last updated in Fall 2015, the current policy platform was developed by surveying our entire statewide membership, followed by input from our Government Affairs Committee and professional staff. Ranging from licensure requirements and code enforcement to wetland permitting processes and government transparency issues, your lobbyists work bipartisanly to bring your legislative needs before the legislature in a calculated, sustained, and effective manner. In an effort to best represent our members, and our exemplary 11 associations statewide, we always look for new policy priorities for the Government Affairs Committee to vet. This fall, our Government Affairs Committee will review, amend, and approve the association’s policy platform for 2017. If there is something you feel needs the attention of your lobbyists and the legislature, let us know!

Minnesota’s minimum wage increases August 1, 2016

Minnesota’s large employer minimum-wage rates rise to $9.50 an hour beginning Aug. 1, 2016. This is the state’s third of three annual minimum-wage increases put into law in 2014. In January 2018, the rates will be annually indexed to inflation. To help employers understand the new requirements, DLI has updated its minimum-wage fact sheets; both are available at www.dli.mn.gov/MinWage. As of Aug. 1, 2016 • Large employers must pay at least $9.50 an hour when the employer’s annual gross revenues are $500,000 or more. • Small employers must pay at least $7.75 an hour when the employer’s annual gross revenues are less than $500,000. 14

• The training wage rate, $7.75 an hour, may be paid to employees younger than 20 years of age for the first 90 consecutive days of employment. • The youth wage rate, at least $7.75 an hour, may be paid to employees younger than 18 years of age. Other minimum-wage laws • Minimum-wage rates apply to all hours worked, whether part time or full time. • Employees must be paid at least the minimum-wage rate, no matter how they are paid. • No employer may take a tip credit against wages in Minnesota. • Examples of workers exempt from minimumwage requirements include: bona fide executive, administrative or professional workers; babysitters; and volunteers of nonprofit organizations. • Free workplace poster Minnesota’s new minimum-wage poster is available online and ready to download atwww.dli.mn.gov/Posters. The poster’s minimum-wage rates are in effect Aug. 1, 2016. Minnesota law requires employers to display the poster in a physical location where employees can easily see it. There is no cost for the poster. For more information • www.dli.mn.gov/MinWage • dli.laborstandards@state.mn.us • 651) 284-5070 or 1-800-342-5354

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SUN’S OUT Hot Dog Buns Out!

by Sami Eidenschink, Membership & Marketing Coordinator Nine months out of the year, builders of Fargo-Moorhead have to deal with cold weather, snow and other crazy elements that our area’s forecast throws at them. At the HBA of F-M’s annual Muddy Boots Picnic July 27, the Association celebrated the hard work our contractors put in every day and the weather helped us celebrate by giving lots of sunshine. Over 110 attended this year, and there was a great turnout of builders! Thank you for taking time out of your busy schedules to stop by and get some lunch. Thanks to gold sponsor Rigel’s, Inc. members enjoyed brats, potato salad, chips and all the fixings to make a great picnic. In addition to the great food, a lot of fun was had too! The Home Builders Care of F-M Foundation hosted the dunk tank again this year to raise money for scholarships, workforce development and projects that support our local community. A few awesome volunteers stepped up to the plank and braved getting dunked by picnic attendees. These volunteers raised more than $250 for HBC. Home builders really do care! Thank you to all who attended this year’s picnic as well as the volunteers who helped make the picnic a success.

www.hbafm.com

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Associate Appreciat August Picnic to Add Bean Bag Tournament

by Allison Weckman, Senior Events & Marketing Coordinator Join the HBA of F-M for the Associate Appreciation and Family Picnic Aug. 11 at Rheault Farm. In addition to games for kids, the HBA of F-M is adding a family-friendly Bean Bag Tournament. The picnic will begin at 5 p.m. and attendees will enjoy pulled pork and pulled chicken sandwiches with coleslaw and smoked baked beans. Associate members in attendance will also be eligible for some awesome prizes. This event is free for all members to attend if you register in advance and is a wonderful opportunity to network and

Aug. 11 rheault farm 18

socialize with your fellow members. Late registrations, walk-ins and no-shows will be billed $10. When you register, please be sure to indicate if you are planning to participate in the Bean Bag Tournament as the bracket will need to be set-up prior to the event or fill out the registration form included as an insert in this issue. Thank you to event sponsor Dabbert Custom Homes and game sponsor Thomsen Homes. Generous sponsors are how the HBA keeps this event free for attendees and the sponsorship levels are very affordable.

event sponsor

www.hbafm.com


ion & Family Picnic dessert!

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THANK YOU SPONSORS! BIRDIE

LUNCH

July Golf Outing by Allison Weckman, Senior Events & Marketing Coordinator The HBA of F-M ended up with beautiful weather for the second attempt at its July Golf Outing at Oxbow Country Club. Sponsors provided wonderful games on the holes and golfers enjoyed themselves! Congratulations to Ben Armbrust, Dan Armbrust, Tim Jones and Tanner Jones for winning with the low score with at 52. Congratulations to those who won a door prize or a gameon-a-hole prize! See the list below for details. Red Dot Game winner: Alan Hochhalter, Building Concepts, Inc. Most Balls in the Water: Team Enclave Development LLC Door prizes were donated by ABC Supply Co., BlackRidgeBANK, Blue Cross Blue Shield of North Dakota, Cass County Abstract, First International Bank & Trust, Lampert Lumber, Trus Joist. Thank you again to everyone for a wonderful day! Captions: 1). Ben and Dan Armbrust from the winning team with the low score of 52! 2). Teammates group together for a selfie. 3). Trevor Odden, Stone Ridge Builders; Broc Roberson, Stone Ridge Builders; Ursula Hegvik, Smart Spaces and Monica Hart, Monica Hart Interior Design snap a shot before the Golf Outing starts.

GAME-ON-A-HOLE WINNERS

REGISTRATION & CART

1

Gate City Bank

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Trus Joist

Norwegian Golf

Closest to the Pin

$50 Pro Shop Gift Card

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Red River Electric

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The Title Company

Tee Pick-Up

Bean Bag Toss

DINNER

Putting Challenge

Scheel’s Gift Card

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Network Center

Justin Scallon

Alex Hagedorn

Kayla Kallander Trevor Odden

Alex Johnson

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First International Bank & Trust

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Rebuilding Together F-M Area

Cooler

Hammer Toss

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Awards Season Comes to HBA: Nominations Due Aug. 12

by Krista Mund, Executive Vice President Each fall the HBA of F-M awards three honors to its members: Builder and Associate of the Year Awards, and its “BEAM” Award. HBA of F-M Executive Vice President Bryce Johnson says, “Please nominate a fellow member for one or all of these awards! We have such an incredibly humble group that many feel uncomfortable with awards. Take a minute to think about your fellow members and member volunteers that fit these criteria and shine with support of the Association, or are committed to supporting their fellow members.” The nomination forms have been emailed and are included as an insert this month. Staff also distributed forms at all committee meetings. Contact the HBA of F-M at (701) 232-5846 or info@hbafm.com if you would like a copy. Past Associate of the Year winner, Robin Swanson, Superior Insurance, says, “To those members who are nominated for Builder or Associate of the Year: don’t hesitate to fill out the application. It is a thorough application, and I know that we are all incredibly busy. Talking about ourselves innately makes us uncomfortable, but it was an honor to be nominated and it’s important to take the time to think about your involvement with the HBA and the community and put it on paper.” Once nominees for Builder and Associate of the Year are determined, the HBA assigns “mentors” to assist in filling out the award application and to offer encouragement to nominees. Those past winners are there to help.

More about the awards:

Builder and Associate of the Year: these awards have been around since 1982 and are based on work expended in the interest of fellow members, the Association and the community within the past year (Aug. 1, 2015 - July 31, 2016). These members are judged on: member involvement and industry promotion, civic activity, professional accomplishments, local association activity, and state and national association activities. Recipients of the Builder & Associate of the Year Awards will be chosen by a committee consisting of past winners, board members and HBA of F-M staff. The award will be presented at the Oct. 25 Awards Gala & Annual Meeting. Local winners go on to represent the HBA of F-M for consideration in the North Dakota Association of Builders’ Builder and Associate of the Year Awards selection in November. BEAM Award: It stands for “Builders Engaging Associate Members,” and is meant to recognize Builder members who exemplify the motto “It’s good business to do business with a member.” Associate members nominate Builder members for this award. The HBA of F-M names a winner on the local level that advances to the state (North Dakota Association of Builders) level, and possibly to the national level with the National Association of Home Builders. The Builder member nominees will be evaluated on loyalty, ethics, trust, communication and consideration. Two Builder members who receive the most nominations will be notified and asked to submit their list of suppliers/trade contractors. HBA of F-M staff will compare those lists, and send common companies the Builder evaluation form. A committee of past HBA of F-M Associates of the Year reviews the evaluations and chooses a winner.

Awards Gala Brings NAHB Chief Economist to Close Out 60th Anniversary

by Allison Weckman, Senior Events & Marketing Coordinator The 2016 Awards Gala & Annual Meeting Oct. 25 at the Courtyard by Marriott in Moorhead will cap off the HBA of F-M’s 60th anniversary year. The final highlight to close out the year will be a presentation by National Association of Home Builders Chief Economist Robert Dietz. The HBA has been participating in an economic impact study and Dietz will discuss findings at the event. Dietz is responsible for house market analysis, forecasting and industry surveys, and housing policy research. Prior to joining NAHB in 2005, Dietz worked as an economist for the Congressional Joint Committee on Taxation. He is a native of Dayton, Ohio, and earned a doctorate in economics from Ohio State University in 2003. NAHB’s local economic impact model estimates the economic benefits of home construction in terms of jobs, incomes and government taxes and fees. The model details these benefits with respect to three phases. • The first phase is the direct economic activity generated by the construction itself. • The second phase consists of the local economic activity induced by purchases made locally due to wages and business income that arise from construction. • The final phase is a measurement of the local purchases of the new residents of the community over the coming years. In accounting for these economic effects, the NAHB model illustrates how home construction acts a generator of economic growth for local communities. In addition to Dietz’s talk, the meeting will showcase the HBA of F-M’s annual awards winners.

www.hbafm.com

23


HBA of F-M June Accomplishments Each month, the HBA staff compiles a list outlining what the HBA has done for you,

including education opportunities, legislative work, events and meetings staff and members have attended. As of press time, July wasn’t over yet, so we’re always a month behind. Thank you for your understanding! • Worked with the Business Leaders Flood Task Force to highlight the importance of Fargo and Moorhead approving a Joint Powers Agreement and Project Partnership Agreement critical to secure funding and begin construction on the F-M Area Diversion Project in August. Both entities approved the documents! • Assisted in organizing the Herdina Academy for the Construction Trades which attracted 18 students interested in pursuing the construction trades. Over 60 member companies volunteered or donated supplies for the event. • Organized a contractor lunch and graduation as part of the Herdina Academy for the Construction Trades. • Organized a press conference to declare June as Homeownership Month with Dilworth, Fargo, Moorhead and West Fargo, along with the F-M Area Association of Realtors and U.S. Department of Housing & Urban Development. • Attended meetings of the North Dakota Association of Builders board of directors. • Assisted with the North Dakota Association of Builders Birdie With the Builders legislative social welcoming over 130 attendees including over 20 legislators and city officials.

Attended or supported the following community meetings and events:

• Fargo City Commission and Moorhead City Council when discussing the Joint Powers Agreement and Project Partnership Agreement impacting the F-M Area Diversion Project. • Greater Fargo-Moorhead Economic Development Corporation’s board meeting. • Republican gubernatorial debate hosted by F-M-WF Chamber of Commerce. • Dabbert Custom Homes' Realtor and Affiliate Open House. • Cass County Electric Ribbon Cutting. • Fargo Moorhead West Fargo Chamber of Commerce Cracker Barrel for Fargo City Commission Candidates. • Fargo Moorhead West Fargo Chamber of Commerce's "Eggs & Issues." • Fargo-Moorhead Convention & Visitors Bureau Mixer. • Young Professionals Network "Off the Clock." • The Title Company's "Spring Fling." • First International Bank & Trust's Summer Picnic.

Hosted the following:

• Lunch session on copyright rules, as they relate to home plans, with an expert from the National Association of Home Builders. • Meetings on a community service project with Dakota Boys Ranch. • Regular meetings of the HBA of F-M board of directors and five committees. • A meeting on West Fargo’s floodproof basement design.

24

Home Builders Post Strong SecondQuarter F-M Metro Permit Numbers by Krista Mund, Executive Vice President Midway through the year, housing activity looks strong in the F-M metro area encompassing Dilworth, Moorhead, Fargo and West Fargo. The HBA of F-M’s second-quarter building permit report shows housing permits down just 7 percent compared to last year’s second quarter, which was the best since 2005. Compared to last year through June, single-family permits increased by 29 community-wide, while twin-home construction decreased by 52 permits. Rowhouse permits decreased by 32, and duplexes increased from zero to 12. Housing permit values grew 5 percent over last year, from $130 million to $135.7 million through July. To access the full permit report and detailed news release, visit www.hbafm.com. Second-quarter numbers for the Minnesota communities of Barnesville and Hawley, and the North Dakota communities of Casselton, Harwood, Horace, Kindred, Mapleton and Oxbow are available in the members-only section at www. hbafm.com.

www.hbafm.com


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25


HBC PRESIDENT’S LETTER

Get Involved to Help the Industry

Home Builders Care has had a great year so far. There have been a lot of new opportunities and partnerships for workforce development. In June, our Fargo Public Schools partnership launched with the 19th annual Herdina Academy for the Construction Trades. Work also began with the Dakota Boys & Girls Ranch this summer. Dakota Boys & Girls Ranch maintains the Fargo Youth Home as a separate facility for at-risk youth who have psychiatric, behavioral and trauma issues. The home, built in 1988, provides a safe and structured environment. Because of the high traffic with residents and staff, it’s ready for an update. Home Builders Care brought this project to the Remodelers Council and members of both groups toured the facility. The Fargo Youth Home needs a lot of T.L.C., and HBC and the Remodelers Council are expanding on some of what they asked. First, window coverings will be donated and then work will begin on updating the game room. This room is one of the mostutilized in the house, but is not as functional as it could be. A final design is not in place yet, but we do know that items like paint, furniture, shelving as well as home technology will be needed. If you are willing to help with this project, please contact Jenny Erickson at (701) 232-5846 or jenny@hbafm.com.

Curling for Construction

Mark your calendar for Nov. 4 for our first-ever Curling for Construction event. It will be a fun night learning how to curl and playing an actual game. Eric Rokke, Rokke Construction and Jordan Schumacher, Luxury Bath of Fargo, Inc., will be our instructors and will teach us all the tricks! Join us from 6:30 - 10 p.m. at the Fargo Curling Club, 4300 23rd Ave S, Fargo. Cost to attend is $30 per person or $50 per two-person team if registered in advance. Not feeling active? Watch the from the stands for $20. We will have a bar and snacks available.

Donate to Home Builders Care

Home Builders Care is the charitable organization of the HBA of F-M. That means that HBC is your Foundation, dedicated to providing a positive outlet for the industry. In order to be the positive outlet, HBC needs your support. A donation of as little as $20 can make an impact helping us to provide tools for Herdina Academy students or to provide nails when working on a house build. Help support your industry! Drop donations off at the HBA office or donate online at www.hbcfm.com.

Home Builders Care Foundation of Fargo-Moorhead 1802 32nd Ave. S. Fargo, ND 58103 Phone: (701) 232-5846 www.hbcfm.com

Home Builders Care Foundation was created in 1993 by the Home Builders Association of Fargo-Moorhead. It is a local 501(c)3 nonprofit charitable organization.

It was established with funds donated by HBA members, fundraising events and the HBA itself. The purpose for its creation was to provide an outlet for the builder, remodeler, and companies related to the building industry to show the community that there is more to the building industry than demolition, construction and remodeling. The HBA handles the administrative duties for the foundation at no charge. Any contribution designated to the foundation goes directly to the foundation and its charitable work. Address inquiries to: Jenny Erickson 1802 32nd Ave. S. Fargo, ND 58103 Phone: (701) 232-5846 jenny@hbafm.com

PRESIDENT

Bob Kochmann, Kochmann Brothers Homes, Inc.

VICE PRESIDENT

Casey Beckerleg, Stenerson Lumber

SECRETARY

Monica Hart, Monica Hart Interior Design

TREASURER

Randy Cramer, NAI North Central

TRUSTEES

Grace Backman, Eastern Dakota Housing Alliance, Inc. Dan Beecher, Foam Doctor’s, LLC Carlita Dietz, Jay Dietz Construction, Inc. Kristie Eid, Eid-Co Buildings, Inc. Perry Eidem, Allied Building Products Corp. Ryan Johnson, Monarch Homes, LLC Sylvia Lunski, Design Direction, Inc. Brad Morris, Casselton Lumber Dustin Murray, Dustin Murray Construction

PAST PRESIDENT

Dan Parrow, ISR Homes

Bob Kochmann Kochmann Brothers Homes, Inc. HBC President 26

www.hbafm.com


F-M Area Diversion Takes Big Step With Signing

by Chelsea Smith, Communications Coordinator Members and staff attended the signing ceremony July 11 for the F-M Area Diversion Project. In attendance were: Don Dabbert, Dabbert Custom Homes; John Gunkelman, Dakota Construction of Fargo, Inc.; John Koerselman, Red River Drywall and Painting Services; Paul Krabbenhoft, Coldwell Banker First Realty; Bryce Johnson, HBA chief executive officer; Krista Mund, HBA executive vice president; and Chelsea Smith, HBA communications coordinator. Fargo and Moorhead mayors, Flood Diversion Board of Authority chair and Principle Deputy Assistant Secretary of the Army for Civil Works Lowry Crook signed the Project Partnership Agreement (PPA) for the F-M Area Diversion Project (pictured below). Also in attendance were U.S. Sens. Heitkamp and Hoeven, representatives from U.S. Rep. Collin Peterson and U.S. Sen. Amy Klobuchar offices. Area Mayors, City Commissioners and Council Members and County Commissioners were in attendance as well. The signing of the PPA, the official agreement for the Diversion Project, allows construction to begin this fall. In the middle of August, the Cass County Commission and Fargo Commission will vote on adding language extending current sales taxes to the November Ballot, which supplement state and federal funds to pay for the F-M Area Diversion. See the insert included in this issue for a timeline overview of the project.

www.hbafm.com

27


Elliot’s Economics Elliot Eisenberg, Ph.D. is President of GraphsandLaughs, LLC

The Economic Forecast for the Second Half of 2016: Decent but Nothing Remarkable Despite gross domestic product (GDP) again slowing in Quarter 1, as has been

the case for the past few years, the economic recovery that began in July 2009 remains intact. The poor performance of the U.S. economy from January through March was almost expected, and the incoming employment, housing, and service sector data all point to a modest economic pickup. GDP growth the rest of the year should average 2.2 percent, with growth in Quarter 2 closer to 2.75 percent as the economy rebounds from a tough Quarter 1. The combination of continued wage growth and increased residential construction activity suggests that 2016 will probably improve as it progresses. Despite weak energy prices, a continued strong dollar that has hurt manufacturing by making U.S. exports costly and imports cheaper, and a struggling agricultural sector, the rest of the economy is OK. As long as the service sector and construction continue to expand and wages rise, the U.S. economy will continue to grow, despite the headwinds it faces. Importantly, the labor market continues to strengthen, voluntary quit rates are rising and are almost back to where they were before the Great Recession, the number of involuntary terminations keeps falling, and job creation, while down from last year, remains strong. At this rate, there will be little slack in the labor market 12 months from today. Lastly, passage of the fiscal year 2016 budget package has boosted economic activity as it extended some tax breaks and eased spending caps on domestic and military spending, making fiscal policy pleasantly expansionary. A definite economic bright spot in 2016 has been housing, and that is due to rising household formation. After averaging well over 1.2 million annually from 1983 through 2006, household formation plummeted to just 600,000 in 2014. Since then, it has been rising by about 1.2 million a year. Add to this, slightly improved access to credit, and housing starts should reach an annualized average rate of 1.19 million during the second half of 2016, their best level since late 2007, with new singlefamily construction contributing at a pace of 810,000 units and multifamily adding 380,000. Despite being severely constrained by a lack of inventory, pending home sales are strengthening and existing home sales should rise by 3 percent annually, while home prices should rise by 5 percent annually. As for inflation, it remains benign but shows signs of slowly rising from its current level. The dollar is likely to strengthen slightly in the latter part of the year and oil prices appear to be rising, thus the two trends that have exerted strong deflationary pressures on imports and energy respectively should dissipate. Moreover, as the unemployment rate continues falling, labor shortages are becoming increasingly widespread. This pushes up wage growth, which is definitely rising, albeit modestly, and thereby boosts household spending. However, rising prices and wages will push the Fed to raise short-term rates by one-quarter-of-one percent as early as July, 28

and certainly by November or December. Long-term rates have bottomed and ten-year Treasuries will end the year at close to 2 percent as the economy strengthens. In short, the economy continues to grow modestly. Short-term interest rates are likely to start rising, wages are rising, and residential construction activity looks to continue to slowly strengthen as we go into 2017. Most critically, continued solid job creation will keep consumer spending up and the likelihood of a recession during the next six months, close to zero. Elliot Eisenberg, Ph.D. is President of GraphsandLaughs, LLC and can be reached at Elliot@graphsandlaughs. net. His daily 70 word economics and policy blog can be seen at www.econ70. com. You can subscribe to have the blog delivered directly to your email by visiting the website or by texting the word “BOWTIE� to 22828.

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May 23, 2016 Cash Conclusion

During February 2016, cash home sales were 35.7 percent of all transactions, their lowest February reading since 2008 and a 2.5 percentage points decline YearOver-Year. Cash sales were 59.2 percent of REO sales, 35.6 percent of resales, 32.6 percent of short sales and 15.2 percent of new home sales. Traditionally, cash transactions were 25 percent of sales and should be back there by late 2018. Alabama had the most cash sales at 51.7 percent, Florida followed at 49.2 percent.

May 24, 2016 More Money

Doubling the pay threshold under which salaried workers must be eligible for overtime to $47,476 a year will make an additional 4.2 million employees, less than 3 percent of all workers, eligible for overtime pay. By comparison, increasing the minimum wage to $15 an hour nationally would affect about a third of the workforce. That’s not surprising, as the median wage for all workers in the U.S. in 2014 was $17.40.

June 2, 2016 Construction Conundrum

In 2015, construction added 222,000 jobs, 9 percent of all new jobs, and behind only the retail, food, professional services and healthcare sectors, all of which are much bigger than construction. Thus, construction was the sector with the largest percentage employment growth in 2015 and year-over-year. Yet Y-o-Y construction wage growth has been just 2.2 percent, about average! Were there a real labor shortage, wage growth would have been significantly higher.

June 22, 2016 Less Labor-Force

While the labor force participation rate has been declining, the declines are in households in the bottom third of the income distribution. The LFPR for men in the top two-thirds has been flat since 1980 while it’s fallen from 80 percent to 70 percent for men in the bottom

third. The LFRP for the top two-thirds of women has risen from 68 percent to 81 percent but remained at 50 percent for the bottom third.

June 23, 2016 Constrained Construction

Sales of new single-family homes in May were seasonally adjusted at 551,000, 6 percent below April’s level and 8.7 percent above the May 2015 level. More generally, only since April have new home sales exceeded 2008 levels and year-to-date sales are just 241,000, up 6.6 percent from last year. year-to-date sales are flat in the west and Midwest, up 4.5 percent in the south and up 50 percent in the tiny northeast, from 8,000 to 16,000.

July 1, 2016 Intracontinental Interstate

The Friday File: 60 years ago, Eisenhower signed the U.S. Interstate Highway System into law. Expected to take 12 years to complete, it officially took 35. Since 1956, the number of miles traveled/year has grown from 625 billion to 3 trillion. While the 47,662-mile IHS comprises 2.5 percent of mile lanes, it carries 25 percent of traffic. At 3,021 miles, I-90 is longest; at 18 miles, I-97 is shortest.

July 6, 2016 Real Rate

While short-term rates are extremely low, the Fed Funds rate is at 0.375 percent; monetary policy isn’t all that expansionary! The real interest rate -- the fed funds rate minus inflation -- is roughly -1.25 percent, yet the rate that is neither expansionary nor contractionary is about 0 percent. That’s why the Fed isn’t in a huge rush to raise rates. I expect one quarterpoint rate rise in 2016 and two in 2017.

July 11, 2016 Jerky Jobs

creation is averaging 171,500/month compared to 220,333/month through June 2015. Job growth is indeed slowing, but growing fast enough to keep reducing the unemployment rate and is very solid given where we are in the business cycle.

July 13, 2016 Fine Foreclosures

The percentage of homes with a mortgage in foreclosure in 5/16 was 1 percent, compared to 1.3 percent in 5/15 and a peak of 4.5 percent in 2010. The current rate is the lowest since 10/07 but is still double the historic average. New Jersey had the highest foreclosure inventory at 3.6 percent, followed by NY at 3.2 percent and Hawaii at 2.1 percent. Alaska, Arizona, Colorado, Minnesota and Utah all had the lowest rate at 0.3 percent.

July 19, 2016 Deficient Demand

The labor force participation rate has fallen substantially for workers with, at most, a high school degree. This fall in the supply of low-skilled workers should raise wages. Yet, their wages have fallen 25 percent compared to workers with a college degree. This means the demand for unskilled workers has fallen by more than the supply. The solution; raise the skills of these labor force dropouts to boost employer demand.

July 22, 2016 Baby Block

The Friday File: The number of foreign adoptions by Americans fell by 12 percent in 2015 to 5,648, down from 6,438 in 2014 and a peak of 22,884 in 2004, from which the number has steadily declined. In 2015, the number of adoptions was the lowest total since 1981. China remains the most popular source nation with 2,354. Ethiopia was again second with just 335 adoptions followed by 303 from Ukraine.

While the 287,000 net new jobs created in June was spectacular, the 11,000 net new jobs created in May was dismal. And, both give a false reading of the labor market. YTD, job

www.hbafm.com

29


REMODELERS COUNCIL CHAIRPERSON LETTER

Upcoming Remodeling Events

There are multiple remodeling events coming up in the next few months. Read below for details on each of them.

Remodeled Home Tour

The deadline has passed to submit projects for the Remodeled Home Tour, and the Remodelers Council is excited to feature three projects for consumers this year in conjunction with the Fall Parade of Homes. The tour will be Sept. 24-25. Support your fellow remodelers by touring the homes! If you have any projects you are still working on now, be sure to talk to consumers about putting it on the tour next year. We would like to see this event continue to grow and showcase the importance of you using a professional when doing remodeling projects.

Charitable Projects

The Council has had a number of requests from consumers to help with charitable projects including decks, sheds and bathrooms. The Council would love to help each one of these people who request our help but need your help. Consider joining the Remodelers Council to view these projects and get involved with the Fargo-Moorhead community.

Remodeling Show | DeckExpo | JLC LIVE

Remodeling Show, DeckExpo and JLC LIVE Oct. 5-7 have co-located to create the residential construction industry’s largest national event. This new mega event boasts an unmatched educational conference program, vast networking opportunities and a lively expo floor that brings together buyers and sellers from all over to see and experience the latest tools and services for the residential construction industry.

Diana Stead Stone Holding Company Remodelers Council Chair

HBA of F-M Remodelers Council 1802 32nd Ave. S. Fargo, ND 58103 Phone: (701) 232-5846 www.hbafm.com Address inquiries to Sami Eidenschink 1802 32nd Ave. S. Fargo, ND 58103 Phone: (701) 232-5846 sami@hbafm.com

MEMBERS

ABC Seamless Accent Contracting ACME TOOLS Allied Building Products Corp. Arvig Braaten Cabinets Inc. Crane Johnson Lumber Company Dakota Construction of Fargo, Inc. Dave Anderson Construction Design Direction, Inc. Dustin Murray Construction Fargo Linoleum Company Ferguson Bath, Kitchen & Lighting Showroom Fiske Construction, LLP Foam Doctor’s, LLC Granites Unlimited Home Heating, Plumbing & A/C, Inc. Homemakers Villa Kochmann Brothers Homes, Inc. Lake Agassiz Habitat For Humanity Laney’s, Inc. Luxury Builders/Designs Minnkota Windows, Inc. Norandex Opp Construction Paul Davis Restoration & Remodeling of the Red River Valley Rebuilding Together Fargo-Moorhead Area, Inc. Red River Electric, Inc. RRC Specialties, Inc. Showplace Kitchens Simonson Lumber Smart Spaces, Inc. Stenerson Lumber Stone Countertop Outlet Stone Holding Company Stone Ridge Builders, Inc. Syverson Tile & Stone Twin City Garage Door, Inc.

Remodeler

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www.hbafm.com


Do They Want to Learn, Help or Meet? Tips for connecting with another member

by Sami Eidenschink, Membership & Marketing Coordinator Everybody’s reason is different for joining the HBA of F-M and passions vary. Staff and member leaders have made creating a welcoming culture at the Association a priority. Please welcome anyone you see at our events, and try to find out what they want to get out of their membership. Here are some basics we sometimes forget when we’re having fun in our own circles. 1. Familiarize yourself with what the HBA offers and accomplishes. Visiting the members-only site at HBAFM.com is a great way to do this. Here are our core areas: Advocacy, Workforce, Marketing, Benefits, Connections, Education and Information. 2. Keep your eyes open and smile. When you are at one of our events, be sure to smile and look around the room for people who may seem uncomfortable or new. 3. Introduce yourself. When you see someone who is alone or whom you don’t recognize, introduce yourself. 4. Ask questions. The best way to get to know someone is to ask about work, hobbies and family. 5. Talk Association interests. Once you’ve learned more about the person, ask questions about the HBA and why they joined. You will find that one of the following categories is the main reason most people join: • “Learn: they want to ‘learn’ about copyright issues that Builders have;”

• “Help: they want to ‘help’ grow our workforce by recruiting young people to the trades;” or • “Meet: they want to ‘meet’ people by going to the Awards Gala & Annual meeting.” Depending on what their passions are, you can talk about what the HBA may offer that fits. The final step is sharing your new acquaintance with others whom you know in the HBA and make them feel welcome. News Briefs continued from page 7

consists of five members, three of whom must be active real estate brokers. The primary responsibilities of the North Dakota Real Estate Commission are to license qualified applicants as real estate agents, real estate brokers, real estate associate brokers, sales agents, to investigate alleged violations of the law, impose sanctions and prescribe curricula and standards of real estate education programs. Breidenbach began his term in July and will serve for five years. Starion Financial was named to “The Best of the Best” list by Independent Banker magazine and received a superior rating from BauerFinancial. Independent Banker is a publication of the Independent Community Bankers of America, an organization that represents more than 6,000 community banks of all sizes throughout the country. It separates banks based on asset size and ranks the top 25 by their return on average equity and return on average assets ratios. In 2015, Starion ranked No. 10 for ROAE and No. 13 for ROAA. Western Products was honored with CertainTeed Corp.’s ShingleMaster Tenured Member Status. The roofing credential represents contractors that are focused on superior standards of workmanship and customer service. To attain ShingleMaster Member status, contractors must employ a CertainTeed Master Shingle Applicator qualified workforce or have participated in a ShingleMaster credential course. A ShingleMaster qualified company

can also offer CertainTeed SureStart Plus extended warranty coverage when an Integrity roof System is installed on a home.

Save the date: Hard Hat Happy Hour Sept. 29

The next Hard Hat Happy Hour will be 5-7 p.m. Sept. 29 at ICSS Supply, 1325 23rd St S, Moorhead. It will serve as both a celebration for the Fall Parade of Homes & Remodeled Home Tour and as a kick-off to the Showroom Tour. Food will be provided and pre-registered attendees will receive free drink tickets. To sign up contact Sami Eidenschink at (701) 232-5846 or sami@hbafm.com.

Nominations open for Builder, Associate of the Year

The HBA of F-M presents Builder and Associate of the Year awards at the Awards Gala & Annual Meeting. A committee of past winners and HBA Chief Executive Officer Bryce Johnson is accepting nominations for consideration. Contact the HBA at (701) 232-5846 or info@hbafm.com with suggestions.

HBA welcomes nominations for board of directors

It will soon be time to elect members to serve on the HBA of F-M board of directors. Terry Lipp, Ferguson Bath, Kitchen & Lighting Showroom will be ending his term in 2016. If you are an Associate member interested in serving, contact the HBA office at (701) 2325846 or info@hbafm.com.

HBA seeks sponsors for Fall Parade of Homes, Remodeled Home Tour

Parade and Remodeled Home Tour sponsors will be promoted through the event magazine, on the HBA website, social media and in the Plains Builder. Contact Allison Weckman at (701) 2325846 or allisonw@hbafm.com.

IBS registration open

Registration for the 2017 International Builders’ Show Jan. 10-12, in Orlando is open. Visit www.buildersshow.com for more details or contact the HBA of F-M at (701) 232-5846 or info@hbafm.com.

www.hbafm.com

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ANNUAL TABLE SPONSORS

AUGUST AT A GLANCE

Aug. 2 Public Issues Committee Aug. 4 Education Committee

Aug. 11 Association Appreciation & Family Picnic

Aug. 12 Events Committee

Aug. 15 Parade of Homes Committee Aug. 17 Membership Committee

Aug. 18 HBA Board of Directors Meeting

Aug. 22 Legislative Candidate Social

Aug. 22

North Dakota Candidate Social

Aug. 25 Lunch Session

SEPTEMBER AT A GLANCE

Sept. 1 Education Committee

Sept. 5 Labor Day - HBA Closed Sept. 6 Public Issues Committee

Sept. 7 HBC Board of Trustees Meeting Sept. 9 Events Committee

Sept. 14 Membership Committee

Sept. 13 HBA of F-M Golf Outing

Sept. 15 HBA Board of Directors Meeting Sept. 17-18 Fall Parade of Homes

Sept. 19 Parade of Homes Committee

Sept. 24-25 Fall Parade of Homes &

Remodeled Home Tour

Sept. 27 Lunch Session

www.hbafm.com

Sept. 29 Hard Hat Happy Hour


2343_Plains_builder_ad_PR.pdf

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12/7/15

4:04 PM

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Fargo Branch • 1251 North 46th Street • (701) 298-3210 or (800) 305-6924

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PRESORTED STANDARD US POSTAGE PAID FARGO ND PERMIT NO 1387 Home Builders Association of Fargo-Moorhead 1802 32nd Ave. S. Fargo, ND 58103 www.hbafm.com | info@hbafm.com (701) 232-5846

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Home Builders Association of Fargo-Moorhead 2016 Permit Report - YTD (June) 2014

DILWORTH Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total

Permits

5 5 0 0 0 0 1 25 2 0 11 44

Units

0 0 0

2015 Value Permits

$1,317,000 $1,317,000 $0 $0 $0 $0 $1,078,000 $306,239 $3,015,000 $0 $58,999 $5,775,238

17 15 2 0 0 0 2 27 3 0 5 54

$18,377,599 $11,244,674 $3,892,925 $3,240,000 $0 $660,000 $6,770,597 $3,356,923 $6,896,314 $0 $107,010 $36,168,443

129 85 44 0 0 10 11 237 46 0 23 456

Units

2016 Value Permits

7 7 0 0 0 0 0 36 1 0 8 52

$25,494,499 $17,908,499 $7,586,000 $0 $0 $20,226,880 $6,402,388 $2,245,106 $5,546,574 $0 $559,800 $60,475,247

77 51 2 0 12 4 12 279 44 0 21 437

3-Yr Avg Value

Permits

Units

Value

$1,595,900 $1,595,900 $0 $0 $0 $0 $0 $245,867 $750,000 $0 $45,000 $2,636,767

10 9 1 0 0 0 1 29 2 0 8 50

$15,375,000 $11,325,000 $450,000 $0 $3,600,000 $2,783,755 $11,112,758 $3,615,548 $40,292,906 $0 $287,593 $73,467,560

103 63 24 2 4 5 12 241 45 0 23 429

$65,128,902 $56,120,630 $3,414,600 19 $5,593,672 0 $0 226 $20,943,900 $25,566,323 $9,759,179 $39,031,520 $37,566,436 $14,761,684 $212,757,944

214 167 21 25 0 7 29 557 190 28 179 1,205

$48,793,736 $40,888,039 $3,732,030 25 $4,173,667 0 $0 305 $26,787,247 $80,224,066 $8,804,278 $51,085,646 $75,632,240 $12,011,356 $303,338,569

226 161 34 8 0 0 19 247 44 6 12 554

$53,619,983 $41,012,650 $8,267,333 31 $4,340,000 0 $0 0 $0 $23,699,060 $3,742,101 $4,327,825 $29,629,090 $2,783,718 $117,801,777

234 163 36 10 0 4 17 214 34 5 22 531

$52,318,279 $41,523,835 $5,945,778 35 $4,848,667 0 $0 132 $9,816,667 $28,351,972 $3,561,942 $5,357,847 $18,155,246 $1,994,873 $119,556,825

$129,627,085 571 $99,490,265 437 $18,103,490 60 91 $12,033,330 27 0 $0 12 416 $37,156,720 10 $45,632,703 56 $14,665,241 1160 $58,253,665 274 $121,070,391 30 $10,091,721 233 $416,497,526 2,334

$135,719,785 $110,054,180 $12,131,933 50 $9,933,672 24 $3,600,000 262 $23,727,655 $60,378,141 $17,362,695 $84,402,251 $67,195,526 $17,877,995 $406,664,048

561 402 82 37 4 17 59 1042 271 33 233 2,215

$123,442,298 $98,325,848 $13,814,116 68 $10,102,334 8 $1,200,000 531 $44,494,125 $117,070,619 $15,687,242 $75,345,424 $93,787,486 $14,364,259 $484,191,453

0 0 0

$4,830,850 $4,350,850 $480,000 $0 $0 $0 $120,000 $193,384 $205,000 $0 $15,689 $5,364,923

Units

0 0 0

0 0 0

$2,581,250 $2,421,250 $160,000 $0 $0 $0 $399,333 $248,497 $1,323,333 $0 $39,896 $4,592,309

MOORHEAD Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total

103 53 26 6 0 1 12 208 44 0 26 394

24 0 6

0 0 240

0 24 36

8 8 94

$19,749,033 $13,492,724 $3,976,308 $1,080,000 $1,200,000 $7,890,212 $8,095,248 $3,072,526 $17,578,598 $0 $318,134 $56,703,750

FARGO Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total

173 137 20 16 0 14 30 524 188 39 204 1,172

$37,951,681 208 $31,357,681 147 $4,374,000 20 16 $2,220,000 41 0 $0 0 526 $43,838,000 2 $197,854,040 33 $8,437,448 549 $69,375,426 198 $76,854,991 21 $13,698,652 142 $448,010,238 1,153

$43,300,625 261 $35,185,805 218 $3,407,490 24 41 $4,707,330 19 0 $0 0 164 $15,579,840 6 $17,251,835 25 $8,216,208 598 $44,849,991 185 $112,475,294 24 $7,573,732 192 $249,247,525 1,291

WEST FARGO Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total

219 167 28 3 0 11 22 165 37 3 28 485

$47,333,744 $41,513,744 $2,940,000 24 $2,880,000 0 $0 384 $28,100,000 $39,498,375 $2,933,181 $4,093,615 $16,241,551 $1,258,400 $139,458,866

257 161 46 18 0 2 10 231 20 6 27 553

$56,001,111 $42,045,111 $6,630,000 50 $7,326,000 0 $0 12 $1,350,000 $21,858,480 $4,010,543 $7,652,100 $8,595,097 $1,942,500 $101,409,831

TOTAL Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total

7/14/2016

500 362 74 25 0 26 65 922 271 42 269 2,095

$104,980,024 611 $85,433,099 408 $11,206,925 112 64 $8,340,000 59 0 $0 0 916 $72,598,000 14 $245,201,012 56 $15,033,791 1044 $83,380,355 267 $93,096,542 27 $15,123,061 197 $629,412,785 2,216

No assurance is provided on this report. Permit information reported here may have changed. For the most current permit information, please contact the individual cities.


Register a team for the

BEAN BAG

TOURNAMENT Held during the Associate Appreciation & Family Picnic

ll m wi a e t ! ing Winn a trophy get

August 11 5 - 8 p.m. Rheault Farm 2902 25th St. S. Fargo, ND Free to Participate! All registration forms are due by August 9 to: Home Builders Association of Fargo-Moorhead 1802 32nd Ave. S. Fargo, ND 58103 (701) 232-5846 allisonw@hbafm.com

Team Name: _______________________________ Team’s Skill Level (Circle one):

Playing just for fun

We play some bags

Semi-pro baggers

Teammate #1: _______________________________ Phone Number: ________________

Email Address: _________________

Teammate #2: _______________________________ Phone Number: _________________ Email Address: __________________


BUILDER

and

ASSOCIATE

OF THE YEAR

Each fall, two HBA of F-M members receive its highest honors: the Builder and Associate of the Year awards. Past winners of these awards can be found on the back. The awards are based on work expended in the interest of fellow members, the Association and the community within the past year (Aug. 1, 2015 - July 31, 2016). These members are judged on:

1. MEMBER INVOLVEMENT AND INDUSTRY PROMOTION (30 POINTS) HBA of F-M involvement and what it has meant to the nominee personally and professional

2. CIVIC ACTIVITY (15 POINTS)

Local state and national level participation in civic and service clubs, charitable activities, political commissions, fraternal or religious groups, etc.

3. PROFESSIONAL ACCOMPLISHMENTS (20 POINTS)

For business owners, the development of his or her business from beginning to present. For employees of member companies, his/her role in the business and how he/she has developed it from the time started to the present. Also, actions taken to improve upon professionalism and/or role in the trades industry.

4. LOCAL ASSOCIATION ACTIVITY (30 POINTS)

Association offices and committee work, special assignments, membership recruitment, etc.

5. STATE AND NATIONAL ASSOCIATION ACTIVITIES (5 POINTS)

Offices held and committee work, attendance and participation at state and national conventions, director meetings, etc. Recipients of the Builder & Associate of the Year awards will be chosen by a committee consisting of past winners, board members and HBA of F-M staff. The awards will be presented at the Awards Gala and Annual Meeting on October 25. Local winners go on to represent the HBA of F-M for consideration in the North Dakota Association of Builders’ Builder and Associate of the Year awards.

Submit your nomination(s) by faxing, emailing, or mailing this form to the HBA of F-M office before Aug. 12, 2016. If needed, please make copies of this form. HBA of F-M 1802 32nd Ave. S. • Fargo, ND 58103 (701) 232-5846 • fax (701) 280-1108 • info@hbafm.com • www.hbafm.com

I nominate:______________________________________________________________________________ Name Company

Reasons for nomination:__________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ My name/company:____________________________________________________ The Home Builders Association of Fargo-Moorhead promotes an environment in which members and their businesses can prosper.


BEAM AWARD BUILDERS ENGAGING ASSOCIATE MEMBERS HBA OF F-M ASSOCIATE MEMBERS!

It’s time to nominate your favorite HBA of F-M Builder member(s) for the BEAM award. Which Builders exemplify ‘It’s good business to do business with a member’?

T

he National Association of Home Builders “BEAM” (Builders Engaging Associate Members) award is an honor bestowed on one Builder (or local entity) chosen by a committee of Associate members as the one who personifies the motto, “It’s good business to do businesses with a member.” The HBA of F-M names a winner on the local level that advances to the state (North Dakota Association of Builders) level, and possibly to the national level. The Builder member nominees will be evaluated for the business period of May 31, 2015 - June 1, 2016 on the following: • Loyalty • Ethics • Trust • Communication • Consideration Top Builder members who receive the most nominations will be notified and asked to submit their list of suppliers/ trade contractors. HBA of F-M staff will compare those lists, and send common companies the Builder Evaluation Form. A committee of past HBA of F-M Associates of the Year will review the evaluations and choose the winner.

IN ORDER TO NOMINATE MEMBERS, YOU MUST... PAST WINNERS • Be an Associate or Associate Affiliate HBA of F-M member (not a Builder) • Provide your name on this nomination form • Submit your nomination by Aug. 12, 2016 • Nominate up to but no more than five builder members

• 2015 - Heritage Homes • 2014 - Kochmann Brothers Homes, Inc. • 2013 - Kochmann Brothers Homes, Inc. • 2012 - Dakota Construction of Fargo, Inc. • 2011 - Hanson Bros., Inc.

To see a list of eligible HBA of F-M Builder members, visit www.hbafm.com. Click “Find a Member” and search by Member Type: “Builder”.

NOMINATIONS

YOU MAY SELECT UP TO FIVE

SUBMITTED BY:

1. ____________________________________________________ Associate Member/Nominator Name (required): 2. ____________________________________________________ 3. ____________________________________________________ 4. ____________________________________________________ 5. ____________________________________________________

__________________________________________________ Company:_________________________________________ Submittal deadline: Aug. 12, 2016 Return this form to: HBA of F-M, 1802 32nd Ave. S., Fargo, ND 58103 Fax (701) 280 - 1108 or info@hbafm.com Questions? Contact Krista Mund at (701) 232 - 5846 or kristam@hbafm.com.


07

U.S. Army Corps of Engineers (Corps) begins federal feasibility study.

ND and MN Governors Hoeven and Pawlenty, along with Senators Conrad, Dorgan, and Klobuchar voice support for a two-state led flood control project.

Leaders in Fargo and Moorhead agree to share the cost of a metro-wide flood plan to be completed in partnership with the Corps. Project Goals set: - Permanent flood protection for FM area - Protection that can be certified & used for flood insurance - A project that affects surrounding areas as little as possible

2008

Diversion channel

Corps develops two options: $909M diversion project or a $625M levee system. Further studies include multiple diversion options in Minnesota and North Dakota. Levees found unable to protect against 100-year floods.

Leaders in Fargo and Moorhead decide to pursue 500-year flood protection. Local leaders ask Corps to look into a plan that includes North Dakota side diversion to offer greater level of protection. ND Legislature appropriates $45M for flood control efforts.

Work on in-town levee measures underway in Fargo and Moorhead.

Fargo citizens approve a 1/2% sales tax for 20 years.

2009

Upstream storage

In-town levees

Upstream storage

Final feasibility study completed by Corps . Plan includes storage upstream, in-town levees, and a 30-mile diversion channel to help move water during peak flood stage. Corps looks at possibility of upstream storage to remove downstream impacts.

Leaders decide to utilize latest flood data to determine 100-year flood levels. 42.1 feet is considered a 100-year flood and 46.3 feet a 500 year flood event.

Cass County voters approve a 1/2% sales tax for 20 years.

2010

FEMA updates and expands flood maps for Moorhead.

Fargo citizens vote to extend sales tax to support flood protection.

Report signed by Chief of Corps. Six entities from ND and MN come together to form the Diversion Authority. Cost of project is estimated at $1.8 Billion. Red River Basin Com. study says metro areas should pursue 500-year protection.

2011

Plan to increase flows through town and additional adding of levees to reduce upstream impacts. Minnesota DNR begins scoping for its EIS.

Record of Decision signed by Corps.

2012

Business leaders in FM area mobilize to support the project. ND Legislature appropriates $100M for flood control efforts.

Diversion Authority presents their project to the U.S. Congress in hopes of getting federal authorization and funding.

The project begins buying homes in preparation for ring levee construction to preserve the communities of Oxbow/Bakke/ Hickson and protect the Kindred School District taxbase.

2013

The project is 1 of 26 water projects authorized by Congress and President Obama through the 2014 Water Resources Reform and Development Act (WRRDA). WRRDA also included provisions that promote alternative project delivery, such as public-private-partnerships (P3s).

A civil lawsuit is filed against the project in federal court.

Construction on the Oxbow/Hickson/Bakke levee begins. Construction on in-town levees part of federal project begins. Minnesota begins EIS work.

2014

Minnesota's environmental impact study says "distributive

storage alternative" doesn’t meet the project's purpose and isn’t a feasible or practical alternative to the diversion. FEMA updates and expands floodplain maps for Fargo. 2,000 homes are now subjected to flood insurance requirements. More updates expected possibly requiring 19,000 homes to purchase flood insurance. Roy Wright, FEMA Deputy Associate Administrator warns FEMA could remap in 5 years.

Federal judge issues a temporary injunction, stopping construction on the OHB Ring Levee. Property owners and public entities vote to approve special assessment to ensure bonds can be purchased for the project. Diversion Authority publishes notice of intent to utlize a public-private partnership (P3). Floodwall project on 2nd St. in Fargo begins construction. Over 700 properties have been purchased for flood control.

Congress chooses six Corps projects to start construction, including the FM Area Diversion Project.

Corps commits to begin construction of the nation’s first-ever Corps P3. $5M included in Corps funding plan.

Federal judge dismisses all federal claims in civil lawsuit. New estimates put project cost at $2.1 Billion. Minnesota Final EIS released. Finds no reasonable alternative to the Corps’ Project. RFQ to be issued to procure P3 contractor.

ND Legislature appropriates $129M for flood control efforts.

2015

Design for the project begins Applying for project permits begins Jan. 1, 2010 = City sales tax of 1/2% on sales, use, and gross receipts begins in Fargo. Approved until Dec. 31, 2029. Apr. 1, 2011 = Cass County tax of 1/2% on sales, use, and gross receipts begins. Allowed until March 31, 2031. Property acquisition for the project begins

Corps-led construction estimated to begin on Diversion Inlet Structure near Horace. $69M anticipated from the North Dakota legislature.

ND Permit received.

2016

2017

Proposals to be accepted from P3 firms.

Projected Project Completion

P3 developer begins construction on the Diversion Channel in early 2018.

2018 2019 2020 2021

The Corps to begin construction south of Horace

Diversion channel construction to begin northeast of Argusville.

2024


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