2016 December Plains Builder

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PLAINS

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


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NEW YEAR CELEBRATION

& CITY NIGHT JANUARY 26, 2017

INSTALL

BOARD

2016 YEAR IN

REVIEW

MAYORAL

PANEL

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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

Passion. Quality. Innovation.

701.235.1121 1.888.526.1121

Connections

Advocacy

Awards Gala Caps Off the 60th Anniversary

Voters Approve Long-Term Sales Tax Extension for the FM Area Diversion Project

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Education

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Local Building Officials Inform at Round Table Information

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Housing Recovery Continues at Modest Pace

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Workforce

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Home Builders Care of F-M Foundation Awards Scholarships Marketing

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Advertise on HBAFM.com Benefits

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New NAHB Car Discount

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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:

Dilworth Mayor Chad Olson, Fargo Mayor Tim Mahoney, Horace Council Member Sharon May, Moorhead Mayor Del Rae Williams and West Fargo Mayor Rich Mattern participate in last year’s Mayoral Panel. 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

Local Success for Housing

HBA celebrates in 2016, makes strides with diversion funding, builds relationships with elected officials

Cheers to 60! This year was the HBA of F-M’s 60th anniversary; we capped it off with a champagne toast including all our past presidents at the Awards Gala & Annual meeting in October. Now it’s December, and time to look back, evaluate our goals, and see how we did the past 12 months. Your HBA continued working on our five-year strategic plan focused on our future as a membership organization. These were our top priorities in 2016, and examples of what we accomplished in each area: • F-M area flooding issues - We did it! We were successful with the Citizens for Fair Diversion Funding advertising campaign promoting a “yes” vote for sales tax extensions in Fargo and Cass County to fund the diversion and permanent flood protection. This was a critical vote to the F-M Area Diversion’s future, and it was a major win for our community’s continued vitality. • Building relationships with Minnesota’s state legislative leaders and Congressional delegation - Leaders and staff met with many officials, or their staff, throughout the year on issues important to our members. • Local and state elections in North Dakota & Minnesota - The HBA hosted candidate forums for Cass County Commission, West Fargo Commission, Fargo Commission and Moorhead Council, held a North Dakota legislative social and met with Minnesota legislative candidates to facilitate relationships with our electeds on the local and state level, and to determine support with PAC funds. It was a busy spring, summer and fall, but well worth the effort. • Workforce efforts - The HBA developed a workforce video promoting the trades as lucrative, fulfilling careers. We have plans to make more videos that we can promote around our events for students, like the Health, Tech & Trades Career Expo and Herdina Academy for the Construction Trades. You can see the video at www.hbafm.com. • Recruitment of Builder members. Our goal for recruiting Builder members was 25. We are currently at 20. Builder members are crucial to the HBA of F-M’s mission and voice and will continue to be a top recruitment priority in the coming year. • Moving forward on constructing a new office facility. Our President’s message continued on page 23

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 Bank

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

The city of Fargo has promoted Bruce Taralson to Fargo inspections administrator. Taralson was named interim inspections administrator in April. His work in the department impressed City Administrator Bruce Grubb and Planning Director Jim Gilmour. Taralson was offered the inspections administrator position in September. The HBA looks forward to our continued work together. Congratulations! Lauri Askelson, Char Skaff, Julie Dykema and Suzi Brink have joined Dakota Plains Realty. All are licensed Realtors in North Dakota and Minnesota. Element Realty Commercial has added Ben Saucke, Dennis Olson and Lee Walstad to the commercial sales and leasing team. Matt Schlenvogt has been hired as the appraisal officer for Gate City Bank. Caitlin Leick has been promoted to site manager at Goldmark Property Management. Ranita LaHaise joined the sales team at S&S Promotional Group. LaHaise comes to S&S with over 20 years of experience in the sales and advertising industry. Sandman Structural Engineers has added Suyi Hou to its Moorheadbased structural engineering firm. Hou, an engineer in training, graduated from North Dakota State University in December 2012 with a bachelor’s

degree in civil engineering. Hou has three years of engineering experience. Scott Green has joined Starion Bank as Fargo market president. With a banking career spanning more than 30 years, Green has served in roles ranging from relationship manager to business banker to market president. He was a three-time recipient of the top-performing manager award at his previous financial institution. He earned a bachelor’s degree in finance from Minnesota State University Moorhead and graduated in the top 5 percent from the Graduate School of Banking at the University of Wisconsin — Madison. Locally, he serves on the board of directors for the Vocational Training Center, as treasurer, and at his alma mater on the advisory council and the executive mentorship program both in the Paseka School of Business. Green and his wife, Judy, were recently named the 2016 L.B. Hartz Professional Achievement Award recipients from MSUM for creating economic opportunities for others through innovation, entrepreneurship and community service. Michele Walter recently joined Western State Bank as a business banking assistant and Kashalyn McKinster joined as a customer service representative. Randy Heller and Mike Misheski have been named partners at Widmer Roel.

Honors & Awards

Deb Nordby of Park Co. Realtors has earned the Senior Real Estate Specialist (SRES) designation from the National Association of Realtors.

Real estate agents who have earned the SRES designation are qualified to address the needs of home buyers and sellers ages 50 and older and have demonstrated the necessary knowledge and expertise to counsel clients through major financial and lifestyle transitions in relocating, refinancing and selling homes.

Member feedback for electric meter placement needed

The HBA of F-M has been meeting with Cass County Electric Cooperative about possible changes to its meter socket location policy that was set March 2009. The policy prior to the update allowed builders to have the meter socket placed anywhere on the home, with many of the builders placing it on the back. This placement allowed builders to safely connect without having to bury secondary wires. The HBA of F-M would like to hear from members to see how the current policy is working for their properties, if they have issues with the current policy or if they have suggestions for updates to ensure the safety of current and future homeowners. If you have suggestions please contact Chelsea Smith at (701) 232-5846 or chelsea@hbafm.com

Volunteers needed for World of Thanks

Volunteers are needed to deliver 2017 membership directories for the World of Thanks program in January. It’s a great way to network with other members. If you would like to help, contact Sami Eidenschink at (701) 232-5846 or sami@hbafm.com, or show up to the kick-off breakfast Jan. 10.

News Briefs continued on page 8

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HBA of F-M October 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, November wasn’t over yet, so we’re always a month behind. Thank you for your understanding! • Released a housing impact study by National Association of Home Builders Chief Economist Robert Dietz, covered by five media outlets. Dietz also presented this report at the Awards Gala & Annual Meeting. • Monitored the city of Fargo’s actions regarding its tax incentive policies, specifically important to the HBA of F-M is the two-year tax exemption on new housing. • Kicked off the first-ever Showroom Tour in October to provide an extension of the Fall Parade of Homes and Remodeled Home Tour. People who saw products on the Parade visited participating showrooms to learn more and participate in “featured nights” offering discounts and goodies. • HBA of F-M and Home Builders Care of F-M Foundation continued work and planning for an update of the Dakota Boys & Girls Ranch Fargo Youth Home. • Assisted with "What's New in High Performance Housing" education conducted by member Larry Mayer, Solution Design, Inc., serving 43 members.

Attended or supported the following community meetings and events:

• Northern Region Association of Safety Professionals’ monthly meeting. • Meetings related to the Business Leaders Flood Task Force. • Greater Fargo Moorhead Economic Development Corporation's board meeting. • Fargo Housing and Redevelopment Authority’s board meeting. • Fargo's Tax Exempt Review Committee. • Fargo's Planning Commission Brown Bag Lunch. • Participated in a meeting of the Health, Tech & Trades Career Expo Planning Committee. • FMWF Chamber of Commerce's Eggs & Issues. • FMWF Chamber of Commerce's Cracker Barrel meeting with local legislative candidates. • Roers Annual Chili Feed benefiting United Way of Cass-Clay. • FMWF Chamber Women Connect

Hosted the following:

• A visit by North Dakota Association of Builders President Arnold Karsky and Executive Officer Kim Schneider with local leaders. • Awards Gala & Annual Meeting welcoming nearly 175 members to celebrate the HBA's 60th anniversary year and honor members receiving awards. • A "thank you" social for PAC contributors, sponsored by Designer Homes of Fargo-Moorhead, Inc. • A lunch fundraiser for Home Builders Care of F-M Foundation with NAHB Chief Economist Robert Dietz. • A Lunch Session with area building officials for 19 attendees. • An informational session on the Spring Parade of Homes expanding to three weekends. • Regular meetings of the HBA’s board of directors, Health Plan Management Committee and five committees.

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News Briefs continued on page 7

Reach thousands of consumers by sponsoring the 2017 Home & Garden Show

Get your name out there to thousands of consumers by sponsoring the 2017 Home & Garden Show. There are multiple sponsorship levels to choose from. Contact Allison Weckman at (701) 232-5846 or allisonw@hbafm.com for details.

Win a free year of membership

Your HBA tracks all members who pay dues before the month of renewal. These members go into a drawing for a free year of dues. For example, if your membership is paid through Jan. 31, 2017, you would need to pay your dues before Jan. 1, 2017, to be entered. Contact Amanda Ohlsen at (701) 2325846 or amanda@hbafm.com for details.

Remember Home Builders Care in year-end giving

As 2016 comes to a close, remember Home Builders Care. HBC is your Foundation and provides a positive outlet for the housing industry to give back to the community, building a framework for the future. Through support of skill training, workforce development, education and projects related to the housing industry, we help to support a healthy industry, provide assistance to local students and participate in projects that sustain the housing industry. HBC is a 501(c)3 charitable organization so all donations are tax deductible. Plus, you are now able to donate online! To donate, go to www.hbafm.com/hbc/ support/donate. New this year, we have created a North Dakota Permanently Restricted Endowment. Per North Dakota law, businesses that pay state income tax may receive a 40 percent credit up to a maximum of $10,000 for contributions to the endowment! Individuals may receive a state tax credit for a contribution of $5,000 or more as well. The tax credit is 40 percent of the charitable deduction allowed by the IRS up to a maximum credit of $10,000 per year per taxpayer or $20,000 per year per couple filing jointly. Contact Jenny Erickson at (701) 232-5846 or jenny@ hbafm.com for details. News Briefs continued on page 23 www.hbafm.com


ADVERTISE

ON HBAFM.COM

Contact Allison Weckman at (701) 232-5846 for details on advertising options!

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Voters Approve Long-Term Sales Tax Extension for the FM Area Diversion Project

by Rocky Schneider, Advanced Engineering & Environmental Services, Inc. Voters in Fargo and Cass County last month overwhelmingly approved a longterm extension of three sales taxes for flood protection until 2084. These funding measures in Fargo and Cass County passed with 66 and 63 percent, respectively. Sales taxes collections will be used to pay for the FM Area Diversion Project and could be sunset prior to 2084 when all project expenditures are paid. “We have seen a consistent message from residents time and time again. Residents of Fargo and Cass County are willing to do what is necessary to provide for the safety of the city so we never have to sandbag again,” said Tim Mahoney, mayor of Fargo. “We are pleased to have our local funding in place as the Army Corps of Engineers prepares to start construction later this year.” “It is clear this project is needed and the desire of the people is to get it done,” said Darrell Vanyo, Diversion Authority chair and Cass County appointee to the Diversion Authority. “This vote solidifies funding for the project and with the financial plan in place, it is time to move forward to the construction phase of this critically important project.”

Federal, State, and Local Funding Commitments in Place, Appropriation Actions Needed

With recent voter approval of the sales tax extensions, funding commitments for the FM Area Diversion Project are now all in place, though additional actions still need to happen to assure those commitments remain. In total, the project is estimated to cost $2.2 billion. The North Dakota Legislature has committed $570 million to flood protection efforts. To date, $244 million has been appropriated and it is anticipated that another $66.5 million will be included during the 2017 legislative session. The federal government has committed $450 million, on top of the $40 million in design and planning funds they have already spent. To date, the federal government has appropriated $5 million for construction and it is anticipated up to $70 million could be included in 2017 appropriations.

Construction Contract Award Anticipated in December

The FM Area Diversion continues to be a top priority for the U.S. Army Corps of Engineers, St. Paul District. The Corps anticipates awarding its first contract for the project in late November or December. Public safety is the Corps’ main concern. More than 230,000 people live and work in the Fargo-Moorhead communities. A failed flood fight in the metro area could result in the loss of human life, $10 billion in damages and put thousands of Minnesotans and North Dakotans out of work. “Sandbagging should not be viewed as a long-term solution for any community and certainly not for the Fargo-Moorhead metropolitan area, where the Red River of the North has exceeded flood stage in 51 of the past 113 years,” said Col. Sam Calkins, St. Paul District commander. “The potential loss of life and economic devastation that would result from a failure of emergency measures are not acceptable risks.” 10

Local Election Bodes Well for Housing

By Krista Mund, Executive Vice President The voters came out for the November election, with almost 63 percent voter turnout in Cass County. Many HBA of F-M and NDAB endorsed candidates won seats and an important city and county measure passed. Fargo and Cass County voters approved extending three half-cent sales taxes to pay for permanent flood protection and the Metro Flood Diversion Project. This successful vote secures long-term financing and is another step toward a strong community and economic vitality. Thank you to all HBA of F-M members who helped spread the word on the importance of voting yes. See the adjacent article to learn more about the vote and the next steps for the project. In Cass County, HBA endorsements Vern Bennett, Chad Peterson and Mary Scherling were elected for districts 3, 1 and 5 respectively. The Association also saw success in its support for Moorhead City Council, with three candidates winning their seats: Heidi Durand, Steve Gehrtz and Joel Paulsen. HBA leaders congratulate Sara Curry Watson on her 1st Ward win in Moorhead and look forward to working with her as well. For the full list of election results for North Dakota and Minnesota visit: http://results.sos.nd.gov/ and http://electionresults.sos.state. mn.us/

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55+ Housing Market Has Strong Third Quarter Showing

Nov. 3, 2016 Builders report that the single-family 55+ housing market is holding strong in the third quarter, according to the National Association of Home Builders' 55+ Housing Market Index (HMI) released today. The index had a reading of 59, up two points from the previous quarter and the 10th consecutive quarter with a reading above 50. “Builders and developers for the 55+ housing sector tell us that business is solid right now and they expect that trend to continue through the rest of the year,” said Jim Chapman, chairman of NAHB's 55+ Housing Industry Council and president of Jim Chapman Homes LLC in Atlanta. There are separate 55+ HMIs for two segments of the 55+ housing market: single-family homes and multifamily condominiums. Each 55+ HMI measures builder sentiment based on a survey that asks if current sales, prospective buyer traffic and anticipated six-month sales for that market are good, fair or poor (high, average or low for traffic). An index number above 50 indicates that more builders view conditions as good than poor. Two of the three index components of the 55+ single-family HMI posted an increase from the previous quarter: Present sales increased two points to 63 and traffic of prospective buyers rose five points to 47. Meanwhile, expected sales for the next six months dropped four points to 65. The 55+ multifamily condo HMI rose one point to 48. The index component for present sales increased two points to 51, while expected sales for the next six months fell three points to 51 and traffic of prospective buyers remained even at 38. All the four indices tracking production and demand of 55+ multifamily rentals decreased in the third quarter. Present production fell three points to

48, expected future production decreased seven points to 49, current demand for existing units dropped nine points to 59 and future demand fell eight points to 59. “The 55+ housing market continues on a steady path toward recovery, much like the overall housing market,” said NAHB Chief Economist Robert Dietz. “Older home owners are able to take advantage of low mortgage rates and rising home prices, enabling them to sell their current homes and buy or rent a home in a 55+ community.” For the full 55+ HMI tables, please visit www.nahb.org/55hmi.

Housing Recovery Continues at Modest Pace

Nov. 7, 2016 Markets in 162 of the approximately 340 metro areas nationwide returned to or exceeded their last normal levels of economic and housing activity in the third quarter of 2016, according to the National Association of Home Builders/First American Leading Markets Index (LMI) released today. This represents a yearover-year net gain of 73 markets. The index’s nationwide score ticked up to .98, meaning that based on current permit, price and employment data, the nationwide average is running at 98 percent of normal economic and housing activity. Meanwhile, 91 percent of markets have shown an improvement year over year. “Ongoing job growth, low mortgage rates and rising incomes are contributing to a firming housing market and economy,” said NAHB Chairman Ed Brady. “Though some areas are recovering faster than others, the overall trend is positive.” “House prices continue to show the strongest recovery among the LMI components, with 327 markets, or 97 percent, returning to or exceeding their last normal levels. Meanwhile, 92 metros have reached or exceeded normal employment activity,” said NAHB Chief Economist Robert Dietz. “Single-family permits have edged up to 51 percent of normal activity, but still lag far behind the other gauges of the index.” “Nearly 80 percent of metro areas posted an increase in their LMI score over the past quarter, while more than nine out of ten recorded an annual increase,” said Kurt Pfotenhauer, vice chairman of First American Title Insurance Company, which co-sponsors the LMI report. “These are strong indicators that the housing recovery remains steadily on an upward trajectory.” Baton Rouge, La., continues to top the list of major metros on the LMI, with a score of 1.68—or 68 percent better than its last normal market level. Other major metros leading the list include Austin, Texas; Honolulu; San Jose, Calif.; and Provo, Utah. Rounding out the top ten are Spokane, Wash.; Nashville, Tenn.; Houston; Charleston, S.C.; and Los Angeles. Among smaller metros, Odessa, Texas, has an LMI scores of 2.0 or better, meaning that it is now at double its market strength prior to the recession. Also at the top of that group are Midland, Texas; Ithaca, N.Y.; Walla, Walla, Wash.; and Manhattan, Kan. The LMI examines metro areas to identify those that are now approaching and exceeding their previous normal levels of economic and housing activity. Approximately 340 metro areas are scored by taking their average permit, price and employment levels for the past 12 months and dividing each by their annual average over the last period of normal growth. For permits and employment, both the 12-month average and the annual average during the last period of normal growth are also adjusted for the underlying population count. For singlefamily permits and home prices, 2000-2003 is used as the last normal period, and for employment, 2007 is the base comparison. The three components are then averaged to provide an overall score for each market; a national score is calculated based on national measures of the three metrics. An index value above one indicates that a market has advanced beyond its previous normal level of economic activity. For historical information and charts, please go to nahb.org/lmi.

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NORTH DAKOTA ASSOCIATION OF BUILDERS

Cheers to 2016!

“Time goes by so fast, people go in and out of your life. You must never miss the opportunity to tell these people how much they mean to you.” - Unknown It seems like I was just writing up Thank Yous and welcome notes to our incoming board members and now it is time to acknowledge all that they did for us in 2016. I should first start out thanking our 2016 President Arnold Karsky along with his wife, Becky, and their three children. It is important to recognize and remember that those who serve on the NDAB board of directors are all volunteers and I greatly appreciate the time they put into the success of our organization. The time they give to attend NDAB and NAHB meetings and events is often time away from their personal life, their families and their careers. Arnold brought forth energy, new ideas and personal experience during his term. He ended the year by holding a tour where we invited senior officers to join us as we visited each local association’s board and executive officer. We asked them how things were going, what the state can do to help them continue to grow membership and support events and we discussed government affairs issues. It was a great opportunity for us to connect with the local leadership and in some cases, help them celebrate the closeout of another successful year. This time of year, we also thank our outgoing past president who served more than six years on the NDAB Executive Committee. LeRoy Kurtyka has always been a source of great information, leadership and laughs! We look forward to a continued partnership with LeRoy! To all of the members of the 2016 NDAB board of directors, NDAB Government Affairs Committee, and NDAB-PAC, I give you a heartfelt thank you! In the past year, all of you have stepped up to help NDAB in various roles, each as important as the next. Our members find value in all that we offer thanks to your vision, drive and inspiration. We were able to offer new events, new fundraising opportunities and all around strong support. During the 2016 election, we donated to 57candidates across the state. Of those, 40 were re-elected or elected! We are looking forward to working with them in the upcoming year. If you have called or emailed our office, you have NDAB Executive Officer message continued on page 23

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Thank You!

It seems like just yesterday I was saying, I hope your year is off to a great start and I was very excited to be representing you as your 2016 president. As I look back at the year, one of my goals to make sure that we fostered our need to have housing in the discussion during the 2016 election process. I think we accomplished this and did it at all three levels (our local HBA, NDAB, and NAHB). I believe that we had our boots on the ground during this election and made housing a topic of discussion. It will be interesting to see how the next few years will play out at all three levels of government. Having housing in the discussion during the election process will definitely help as we talk with our elected officials about regulations, codes and other issues that will arise over the next couple of years. As I reflect on the past year, I start thinking about all that has happened. The one thing that stands out is that our state and local associations grew and became stronger. As we traveled thoughout the state and sat down with each local association, I see we have a lot of members that care about the housing industry and it is great to see. The people in the trenches everyday within our state are members that I was proud to have on my team. If we can keep the dedication to our industry going like it was this year, great things will happen. As we close out 2016, I hope everyone had a successful year and is looking forward to an even better 2017. Have a Merry Christmas and a Happy New Year, Arnold Karsky NDAB President

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NDAB NEWS

Volume XXIII, Issue 12 Monthly News from the North Dakota Association of Builders December 2016

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

• Members gathered in October to hear discussion on the 2016 building season and about new requirements coming in 2017. The Building Officials Round Table included discussion and discourse that will now be shared with local commissioners. • BMHBA members elected new board members at the Fall Awards Mixer. Rory Anderson with Verity Homes was voted in as a new board member along with the reelection of Chad Moldenhauer of K & L Homes, Inc. and Bill Schmid of Townsquare Media. • The BMHBA has teamed up with the BismarckMandan Symphony Orchestra to rebuild the Holiday Home Walk. The event, which has a 36-year history, has waned in recent years and wasn’t hosted last year. With the support of the HBA, eight homes were featured in November. • The BMHBA is excited to host its peers at the Annual Banquet on Dec. 1. Comedian Carmen Ciricillo will close out a busy night with his construction wisecracks. Registration is available online bmhba. com/events.

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

• DABA’s Annual Christmas Party and Awards Banquet is Dec. 8. We have a great event committee and are excited for this event. We are doing a silent auction and donating all proceeds to two local nonprofit organizations the Sunset Senior Center, and Dickinson Optimists Club, • We are sad to see three great board members leave, but we welcomed three new board members: Mike Jangula, Scull Construction; Gene Kruger, Bierschbach Supply and Jane Hadley, The Real Estate and Rental Guide. • The 2016 DABA award winners are Winn Construction, Builder of the Year; Shirley Dukart, Associate of the Year; Mike Schwab, Affiliate of the Year; and Venture Homes, BEAM award! Congratulations and thank you for all of your hard word and dedication to the Association!

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

• Water Kitchen and Bath hosted a fun Builders after Hours. Mario LaPlante, Hebron Brick & Block won a beautiful bathroom vanity door prize. • Keith’s Security World will host Builders after Hours on Dec. 8. Food and drinks will be provided by the Membership Committee and the board of directors. • The Forx Builders Association was happy to donate $1,000 to CIVIC for its Safe House. • We want to thank President Arnold Karsky and NDAB Executive Officer Kim Schneider for attending our November board of directors meeting • The Forx Builders Association sends out a big thank you to LeRoy Kurtyka for his support. He has been on our local board as president three times and on the NDAB board and NDAB President in 2015. • The 2017 Home Design & Garden Show will be March 31 and April 1-2 at the Alerus Center.

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

• Next year’s Parade of Homes will be Sept. 16, 2017! The first Parade went so well that the Association decided to make it an annual event. • The Builders Banquet is Dec. 6! Members will gather for a Christmas-themed banquet this year. • Planning for the 2017 Home and Garden Show is well underway. The Minot Association of Builders is looking forward to refreshing the 2017 Show by adding multiple new attractions like the Pub in the Park, The Youngster Yard, The Ready Builders Lego Homebuilding Competition and adult classes presented by The Market on 4th. Other changes include having Friday and Saturday show dates.

Williston Area Builders Association Mariah Bates, Executive Officer 701-572-5744 willistonbuilders.com

• WABA has hired Mariah Bates as its new executive officer. She brings great marketing expertise to the position. • The Home and Garden show will be held April 7-9, 2017, at the Raymond Family Community Center.

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BUILDERS ASSOCIATION OF MINNESOTA

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

by Forrest Cyr, BAM Communications & Government Affairs Associate Greater Minnesota flexed its electoral muscles in 2016. In a decisive GOP victory in the 2016 election, the Minnesota Republicans won control of the State Senate, and expanded their majority in the State House of Representatives, with a lot of help from Greater Minnesota voters! • The Minnesota Senate: GOP 34, DFL 33 • The Minnesota House: GOP 76, DFL 57 In the Senate, the Minnesota GOP won eight new seats, and the Minnesota DFL won two seats previously controlled by the GOP. The Minnesota GOP gained a net of six new seats, the minimum required to take control. In the House, The MN GOP won six new seats, and the MN DFL won two new seats, expanding GOP control. Congratulations to industry members Representative Tama Theis (former CMBA president!), Representative Nels Pierson, Representative-elect Duane Sauke, Senator-elect Rich Draheim, and Senator-elect Mark Johnson on their victories! We welcome the following to the Minnesota Legislature:

Senate

Mark Johnson, R - East Grand Forks Paul Utke, R - Park Rapids Justin Eichorn, R - Grand Rapids Jerry Relph, R - St. Cloud Andrew Mathews, R - Milaca Andrew Lang, R - Olivia Nick Frentz, DFL - North Mankato Rich Draheim, R - Madison Lake Mike Goggin, R - Red Wing John Jasinski, R - Faribault Mark Koran, R - North Branch Paul Andersen, R - Plymouth Scott Jensen, R - Chaska Steve Cwodzinski, DFL - Eden Prairie Matt Little, DFL - Farmington Matt Klein, DFL - Mendota Height

House

Matthew Grossell, R - Clearbrook Matt Bliss, R - Pennington Sandy Layman, R - Cohasset Julie Sandstede, DFL - Hibbing Liz Olson, DFL - Duluth John M. Poston, R - Nisswa Barb Haley, R - Red Wing Duane Sauke, DFL - Rochester

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Cal K. Bahr, R - East Bethel Erin Koegel, DFL - Spring Lake Park Nolan West, R - Blaine Mary Kunesh-Podein, DFL - New Brighton Randy Jessup, R - Shoreview Jamie Becker-Finn, DFL - Roseville Laurie Pryor, DFL - Minnetonka Dario Anselmo, R - Edina Linda Slocum, DFL - Richfield Andrew Carlson, DFL - Bloomington Regina Barr, R - Inver Grove Heights Keith Franke, R - St. Paul Park Tony Jurgens, R - Cottage Grove Erin Maye Quade, DFL - Apple Valley Fue Lee, DFL - Minneapolis Ilhan Omar, DFL - Minneapolis To those leaving the Minnesota legislature, we thank them for their service to Minnesota.

Departing

Sen. Rod Skoe, DFL - Clearbrook Sen. Tom Saxhaug, DFL - Grand Rapids Sen. Lyle Koenen, DFL - Clara City Sen. Vicki Jensen, DFL - Owatonna Sen. Kevin Dahle, DFL - Northfield Sen. Matt Schmit, DFL - Red Wing Sen. David Hann, R - Eden Prairie Rep. Ron Erhardt, DFL - Edina Rep. Tom Anzelc, DFL - Balsam Township Rep. John Persell, DFL - Bemidji Rep. Barb Yarusso, DFL - Shoreview Rep. Chad Anderson, R - Bloomington We look forward to working with all of Minnesota’s lawmakers in the 2017-2018 biennium to help pass common sense, pro-housing legislation that encourages homebuilding, home-ownership, and home-affordability across the state.

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15


Awards Gala Caps Off the 60th Anniversary!

by Allison Weckman, Senior Events & Marketing Coordinator The HBA of F-M has been celebrating its 60th Anniversary all year long! At the Oct. 25 Awards Gala & Annual Meeting, the celebration went out with a bang. The HBA welcomed National Association of Home Builders Chief Economist Robert Dietz to reveal the results of a recent economic impact study that the building industry has on our community. The study showed the enormous impacts homebuilding has on the Fargo/Moorhead/West Fargo community. To view the full study, visit the members-only section at hbafm.com. The HBA’s highest honors were awarded at the meeting including Builder of the Year, Associate of the Year, BEAM, Extra Mile and Spike. The Extra Mile Award was presented to two deserving winners this year; Eric Miller, Capital Credit Union and Trevor Odden, Stone Ridge Builders,Inc. The BEAM Award was given to Dakota Construction of Fargo, Inc. Associate of the Year went to Dawn Cruff, Green Team Realty and Builder of the Year went to Tom Spaeth, Accent Contracting. Check out videos of all of the winners on hbafm.com or the HBA of F-M’s YouTube channel.

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1. A group from ICSS Supply Company enjoys the social hour before the evening program began. 2. Past Presidents joined together on stage to toast to the HBA of F-M’s 60th Anniversary and to the future of the Association.

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The Spike awards are meant to recognize members in their above-andbeyond member recruiting efforts: Todd Rasmussen won the Top Spike award, Tracy Nicholson won the Top New Spike award and Robin Swanson won Top Recruiter for 2016. Not only were the HBA’s biggest awards given out, the Association acknowledged past presidents and 25 year members, distributed over $14,000 in Home Builders Care scholarships and presented HBC with a check for over $4,000, which was raised by the Fall Parade of Homes Featured Homes. At the end of the night, HBA of F-M past presidents toasted to the HBA’s future with a special champagne toast. Thank you to everyone who attended and sponsored this event. Congratulations to all of the evening’s winners!

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3. Jenny Erickson, Director of Development & Education, sells tickets for the Wall of Beer Raffle. All proceeds went to Home Builders Care of Fargo Moorhead Foundation. 4. Tom Spaeth (middle) enjoys the evening with his father and son. 5. Dr. Robert Dietz, NAHB chief economist, and Ashley Wucher, NAHB Region C field rep, join the Association for the Awards Gala & Annual Meeting.

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Baumann Dives in Head First to Help HBA Staff

by Sami Eidenschink, Membership & Marketing Coordinator Six times a year, the HBA of F-M staff recognizes a “Member of the Month.” This recognition goes to a member who has gone above and beyond to support the Association and staff. We would like to congratulate Angie Baumann of Starion Bank for being chosen as December’s member of the month. Baumann started her career in the banking industry more than 30 years ago with experience in mortgage, credit underwriting and commercial banking. She moved to Fargo in June of last year and is now with Starion Bank serving as a business banking officer. Baumann has helped the staff and Association out by attending various events

and helping behind the scenes, whether it is helping at picnics or delivering Parade magazines. She will also serve as the Parade of Homes committee vice chair in 2017. “My favorite thing about being active in the HBA is how welcoming everyone is and attending events. Both the members and staff are so friendly and fun,” she says. Beyond her volunteerism at the HBA, Baumann serves on the finance committee at the YMCA and helps out at the FMWF Chamber of Commerce with their general member events. When she is not working or volunteering with the various organizations she is a part of, she enjoys spending time with her family, going to sporting events and traveling! Thank you to for all of the effort and passion she brings forth to the HBA of F-M. The HBA staff appreciates her hard work and eagerness to help, even with the smallest tasks. Baumann and five other members will be nominated for the Extra Mile Award for 2017. This award will be presented at the Awards Gala & Annual Meeting. 22

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Local Building Officials Inform at Round Table by Jenny Erickson, Director of Development & Education

In October, the HBA hosted the building officials from Dilworth, Fargo, Moorhead and West Fargo. Steve Schroeder, Bruce Taralson, Jack Nyberg, and Jay Sandvig shared with members some of the issues they have been seeing within their communities. Floodproof basements were a big topic of discussion. West Fargo and its extraterritorial areas are evaluating base flood elevations. New documents and plans need to be approved in order to maintain the basement exemption enjoyed by many communities around the area. Fargo recently adopted new code changes and North Dakota has adopted changes as well. The changes go into effect Jan. 1. There will be no blower door tests required in Fargo, but a visual inspection of insulation will need to take place. Fargo also removed the air exchange requirements which will allow for more natural ventilation, especially in multi-family structures. In Fargo, there has been a change for sprinkler requirements to townhomes on a private drives. Townhomes built on private drives of at least 150 feet with a dead end are required to be sprinkled. This issue will mostly come up during the development process, as those roads are being planned. Both Taralson and Sandvig discussed that twin homes with real property lines, built as single family with fire separation, are considered single-family dwellings and should be exempt from this requirement. As long as the home is built with a two-hour firewall, has its own water meter and there are no penetrations in the dividing wall, the home should be considered single family. Moorhead Building Official Jack Nyberg reported that in 2016, only two sets of twin homes were built under the new sprinkler law. Dilworth Building Official Steve Schroeder said that only one set was built in Dilworth in 2016. Nyberg asked that the HBA and its members request the Minnesota Department of Labor and Industry to change the definition of a twin home. A letter was sent with many signatures from building officials and members of the industry. HBA staff will update members if the Department of Labor & Industry makes any changes to the definition. When a new code is being discussed, the inspectors requested that members and staff of the Association attend hearings. Input from the industry is valued during pre-meetings and during hearings. Both Fargo and West Fargo are working on new software to help with the permitting and plan process. West Fargo is currently working on the system and will be asking for help to test the system. Fargo will need the support of the industry to have the new software approved in the budget. Both systems should help to streamline the process and allow people to see their documents quickly. Watch the 2017 Plains Builder for updates from each official throughout the year. Staff will be communicating with them about their communities and issues they face.

President’s message continued from page 6 task force continues researching the possibility of constructing a new office and hopes to make strides in 2017. • Technological improvements through our eventbased apps and online presence - We launched mobile apps for the Home & Garden Show and Parade of Homes/Remodeled Home Tour this year. The Parades and Tour also launched a dedicated event website. Watch for our annual report coming in January that will include the details on all of our programming and activities from 2016. It was an honor to serve the industry and this Association as president. Good luck to Tyrone Leslie, Heritage Homes, as he begins his term as president next month. We hope that you continue to look to the HBA as a resource. If you aren’t currently engaged, give involvement a try. We’ve got something for everyone. News Briefs continued from page 8

Property tax rebate renewed in Moorhead

The city of Moorhead, Moorhead Area Public Schools and Clay County officials have taken formal actions to extended the Make Moorhead Home Property Tax Rebate through Dec. 31, 2018. For new homes built in 2017 and 2018, this means that home buyers will receive a rebate of all general taxes paid for the first two years after their home is completed and the property is fully valued for tax purposes. There is no maximum value on the rebate program, and both land and building are included in the valuation. The rebate does not affect special assessments or special levies. Moorhead has offered a locally funded tax rebate program since 2012.

HBA is not associated with ‘Fargo Spring Remodel & Landscape Expo’ in February

The HBA of F-M is not associated with the “Fargo Remodeling Expo” organized by L&L Exhibition Management. This event takes place Jan. 27-29 at the Civic Center. The HBA’s Red River Valley Home & Garden Show will be on its usual weekend, Feb. 24-26, at the Fargodome. NDAB Executive Officer message continued from page 12 probably heard a new voice! On Nov. 1, NDAB welcomed Brenda Bry as our new events coordinator. Shirley Jacobchick will be re-joining NDAB as our communications and office coordinator after she recovers from an accident that occurred right after she started with our team. We are anxious to have Shirley return, but want her to take the time she needs to fully recover! Here is a toast to 2016 and I hope that 2017 brings you new joy, laughter and wonderful memories! We are grateful for each and every one of you! Cheers, Kim Schneider NDAB Executive Officer

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Home Builders Care of Fargo-Moorhead Foundation Awards Scholarships to Students Pursuing Construction Careers High school students who are interested in attending a construction program at one of the schools listed below are eligible to apply. • Minnesota State Community and Technical College (M State-Moorhead) or • North Dakota State College of Science (NDSCS) Post-secondary students that are members of a National Association of Home Builders (NAHB) affiliated Student Chapter and attending one of the schools listed below are eligible to apply for scholarships. • M State-Moorhead, • Minnesota State University Moorhead (MSUM), • NDSCS and • North Dakota State University (NDSU)

West Fargo High School

Brady Preston $1,500 Brady is a senior at West Fargo High School. His parents are James and Patti Preston. After graduation in May, Brady plans on enrolling in the construction management at NDSCS. In the past, he has worked with Plecity Kowalski Construction, Inc., gaining experience by helping plumbers on jobsites. Brady has been taking the building trades courses available at West Fargo High School. After graduating from NDSCS, Brady would like to find work as an estimator, project manager or field engineer.

Minnesota State University Moorhead

Kalley Bardson $1,750 Kalley is from Albany, Minn., and is a sophomore studying construction management. She has been working with an excavating firm learning how operate equipment and has become a dump truck driver. As a member of the student chapter member, Kalley is looking forward to becoming more involved and to start volunteering around the community. Right now, Kalley is interested in exploring the building industry to find the sector she wants to specialize in.

Minnesota State Community & Technical College-Moorhead

Daniel Long $1,750 Daniel is originally from Arlington, Wash. He is currently studying construction management at M State while also working as a framer for a local construction company. Daniel has just joined the student chapter at M State. He finds volunteering important and is looking forward to being more involved in the student chapter. After graduation, Daniel wants to focus on residential construction. 24

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North Dakota State College of Science

Nathan Dahl $1,750 Nathan of Streeter, N.D., is a full-time student in the architectural drafting & estimating technology program at NDSCS. His interest in the construction industry was sparked his senior year of high schools when he build a small shed. Nathan is active in the NDSCS Student Chapter helping with their fundraising activities and running for office. After graduation, Nathan plans to seek a design/modeling position at a residential design/build firm in the Fargo area. Jayden Haider $500 Jayden is from Bismarck, N.D. He has been learning about construction since he was eight years old. Jayden has worked as a laborer for many summers in Bismarck. He has recently joined the Student Chapter and taking part in the Residential Construction Management Competition at the 2017 International Builders Show. After graduation, Jayden wants to be an estimator/project manager for a local construction company. Syris Jenson $500 Syris, originally from Mountain, N.D., is studying architectural drafting & estimating technology. He has experience roofing and shingling for a small familyowned business in Edinburg, N.D. Syris is also in the Marine Corps Reserves and has served since 2013. He joined the Student Chapter in his first year at NDSCS and has been active since 2015. Syris is currently involved in the Residential Construction Management Competition for the 2017 International Builders Show. After graduation, he would like to work as a draftsman at a residential company. Syris is also planning on continuing his education in design & construction at NDSU. Onesphort Mwamba $1,500 Onesphort is originally from the Congo and moved to Fargo in 2007. He is currently studying building construction technology and plans to stay for the third year to earn a degree in construction management as well. As part of the NDSCS student chapter, Onesphort has been involved in the construction of its annual haunted house fundraiser. He is also taking part in the Residential Construction Management Competition for the 2017 International Builders Show. Once Onesphort has completed school, he looks forward to working with a residential construction company in the Fargo-Moorhead area. Carol Scott $1,500 Carol is from Moorhead, Minn., and is studying architectural drafting & estimating at NDSCS. She is a member of the local Student Chapter and participated in the Residential Construction Management Competition for the 2016 International Builders Show and is active in the team going to the 2017 International Builders Show. After completing her degree, she would like to gain experience in the drafting and/or estimating fields in the Fargo-Moorhead area. Bryce Wiertzema $1,000 Bryce is from Breckenridge, Minn., and his love of building began with Legos and grew when he built a treehouse with his dad. He has been a laborer for roofing contractors, and built a home during high school. Bryce is currently pursuing degrees in both building construction technology and construction management. After graduating from NDSCS, Bryce would like to work for a construction company, gaining experience and knowledge before eventually starting his own company.

North Dakota State University

Wyatt Aberle $1,750 Wyatt, originally from Lisbon, N.D., is a senior at NDSU. He is currently working at Camrud-Foss Concrete Const. Inc., as the safety director. He has been organizing safety training and supervising all safety-related matters. Wyatt worked for his uncle’s construction doing residential work including roofing, concrete work, framing and installing windows and doors. His uncle has since passed down the business to Wyatt and his brothers. Wyatt has been involved in the Student Chapter since his freshman year. This year, he is captain of the Residential Construction Management Competition team going to the 2017 International Builders Show. After graduation, Wyatt plans to stay in the area and work as a project engineer or assistant project manager or superintendent role. Micah Barney $500 Micah, from Chisolm, Minn., is a junior at NDSU. His interest in the construction industry began in high school when he worked for a small residential company doing remodeling, landscaping, exterior and interior finishing as well as plumbing. Micah’s involvement in the Student Chapter has just begun but he is looking forward to creating a network of fellow students, peers and respectable business professionals. After graduation, he plans on moving to the Boston area and finding work in commercial construction. Tessa Lind $500 Tessa is from Duluth, Minn., and is a freshman studying construction management at NDSU. She has worked for a painting company where she had to bid jobs, estimate costs and communicate with clients. This year, she has become involved in the Student Chapter and will be volunteering with fellow students. After graduation, she would like to work for McGough Construction which has locations close to home. She is interested in commercial construction.

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HBC PRESIDENT’S LETTER

HBC Offers Endowment With 40% Credit For ND Businesses

Curling for Construction

Curling for Construction in early November was a great success! HBA members had a wonderful time learning the game of curling and there was plenty of friendly competition. A big thanks to Eric Rokke, Rokke Construction, LLC and Jordan Schumacher, Luxury Bath of Fargo for teaching the group and opening the F-M Curling Club up for the event.

Year-End Donations

As 2016 draws to a close, please consider choosing Home Builders Care in your year-end donations. Home Builders Care is a charitable organization with 501 (c) 3 tax status. This means that donations are tax deductible. New this year, we have created a North Dakota Permanently Restricted Endowment. Per North Dakota law, businesses that pay state income tax may receive a 40 percent credit up to a maximum of $10,000 for contributions to the endowment! Individuals may receive a state tax credit for a contribution of $5,000 or more as well. The tax credit is 40 percent of the charitable deduction allowed by the IRS up to a maximum credit of $10,000 per year per taxpayer or $20,000 per year per couple filing jointly. North Dakota law also allows for a tax credit for planned or deferred gifts. This tax credit is also 40 percent of the charitable deduction allowed by the IRS. Home Builders Care is a qualified nonprofit organization and now has a qualified endowment. Beyond the benefit that you and your company will receive for donating, Home Builders Care and the industry as a whole will also benefit. A donation of $75 allows one student to attend the Herdina Academy for the Construction Trades. A $500 donation provides Legos for 12 students to participate in the Lego Homebuilding Competition. Any donation in any amount allows Home Builders Care to provide a positive outlet for the housing industry to give back to the community! You can donate online using credit card and set up recurring giving. Just go to www.hbcfm.com and click on the Learn More link in the middle of the page. Thank you for a wonderful year. Home Builders Care has worked hard on promoting the industry to youth and I am proud to have been a part of that. Good luck to Casey Beckerleg, Stenerson Lumber as he takes over as Home Builders Care president in 2017.

Home Builders Care Foundation of Fargo-Moorhead 1802 32nd Avenue South 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

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HBC Sets Fish Fry For April 7

by Jenny Erickson, Director of Development & Education The 2017 Fish Fry event will be held at the Holiday Inn. This location change will allow more seating, four food lines and at least two bars. That means you will be able to get your food faster and get seconds too! A committee is beginning to plan the event and is looking for sponsors to help make it a success. Sponsorship opportunities range in levels, and HBC seeks support of the meat & money raffles, kids activities, live auction, fish and dessert. If you are interested in supporting any of these, please contact Jenny Erickson at (701) 232-5846 or jenny@hbafm.com.

The event will be family friendly with lots of fun planned. The photo booth was a big hit and will be back. Face painting, games and other activities will be available for kids at the event. Auction items are needed for the event. North Dakota State University and University of North Dakota items always do well. Fun things like pheasant hunts, vacation homes, curling lessons and anything creative are welcome. The sky is the limit! Experiences are always exciting. www.hbafm.com

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

ATheRecession is Unlikely current U.S. economic expansion is one of the longest on record, and, come

March, will become the third longest in U.S. history, dating back to the start of record keeping in 1854. As such, there is increasing concern that we are due for a recession. That concern has only heightened, given that the last downturn was particularly nasty. This fear is weighing not only on household spending, but, more importantly, on corporate spending on plant and equipment, holding back GDP growth and labor productivity. Fortunately, this concern is misplaced. Simply put, age is not what kills expansions. Rather, it is an overheating economy that generally results in a recession. When wages start rising swiftly, investment activity starts taking off, debt levels grow rapidly, asset prices become untethered to reality, commodity prices remain high, and inflation rises rapidly, the Federal Reserve invariably intervenes. In the attempt to cool things down, all too often the Fed raises rates too quickly or too much and accidently drives us into a recession. However, there is currently little evidence of any pre-recessionary economic exuberance. As a matter of fact, most of the economy is still behaving as if we were recovering from the recession rather than enjoying the boom times that come at or near the peak of an economic expansion. Growth, be it domestic or international, is subdued. Commodity prices are, with few exceptions, at or near cyclical lows, and bank lending is probably best described as solid. Moreover, inflation, while slowly rising, remains below the official Fed target rate of 2 percent. Lastly, while the unemployment rate is just 5 percent, wage gains are much weaker than they have been before previous economic downturns. This suggests that there is still slack in the labor market and that the Fed will not have to start raising rates quickly anytime soon. Spending by households and businesses is also not signaling a recession. Purchases of durable goods such as cars and dishwashers averaged 7.5 percent of GDP in Q2 2016, well below the 8.5 percent average that has persisted in years preceding recessions. Private investment spending on new home construction, business related software and equipment and so on – is equally low. Moreover, the household debt-service ratio, or how much after tax income Americans are devoting to debt payments, is near its lowest level ever and personal savings rates are near their highest level in twenty years. Lastly, corporate profits are once again on the rise, reducing slightly elevated stock market valuations. The above notwithstanding, a recession is always a possibility due to economic shocks emanating from abroad that can dramatically raise energy prices, or a war or an election that can hurt household spending and business confidence. However, other than that, it would probably take much stronger economic growth for a prolonged period before the Fed felt compelled to raise interest rates quickly enough to meaningfully slow down the economy and, in the process, possibly bring on a recession. In short, the current economic expansion that started in July 2009 looks increasingly likely to become the longest economic expansion ever. Increasing this potential is that even though wages and inflation are finally rising, the Fed has communicated its interest in seeing wages and inflation rise further as they have been too low for too long. So, enjoy the current expansion; it may well last a lot longer!

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Education Expense

Despite soaring student debt levels, the median borrower between 20 and 30 pays $203/month with the average payment $351/ month, primarily because some students borrow large amounts for graduate school. These surprisingly low payments result because many borrowers take 20 and 25 years to repay their loans by enrolling in income-based repayment plans which cap payments at 10 percent or 15 percent of discretionary income with the government forgiving any remaining amount.

Gradual Growth

While 16Q3 annualized GDP growth was 2.9 percent, a twoyear high, it was primarily because of a swing in inventories, which is unlikely to be repeated, and a one-off rise in soybean exports. Conversely, consumer spending grew by 2.1 percent, down from 4.3 percent in 16Q2. YTD, GDP growth is averaging 1.7 percent, just shy of its weak long-term growth potential but strong enough to keep the labor market improving. Rates rise in December.

Vehicle Value

The nation’s second largest auto lender wrote off an annualized 1.37 percent of its outstanding auto loans in Q3, up from 1.01 percent in Q2. Why? Used car prices are falling for the first time since 2008 as the number of cars coming off leases in 2016 is expected to reach 3.1 million, up 33 percent from 2015. In 16Q2, leasing accounted for 31.4 percent of all new-vehicle sales compared to 13.5 percent in 09Q2. www.hbafm.com


Curdling Coagulant

The Friday File: Watching scary movies, think Halloween, causes the body to release an increased amount of a blood-clotting protein known as factor VIII by about 11.1 units per deciliter of plasma compared to watching an educational movie, enough to raise the risk of a blood clot by 17 percent. Acute fear probably activates the coagulation system to prepare the body for possible life threatening situations. As for the upcoming election....

October Omen

Friday’s October employment report was good! 161,000 net new jobs and upward revisions totaling 44,000 for August and September show a continuing strengthening labor market. Monthly wage growth registered 0.4 percent; the second-best reading since 1/15, and Y-o-Y wage growth of 2.8 percent was the best since mid-2009. Moreover, the broadest measure of unemployment fell from 9.7 percent to 9.5 percent, a post-recession low. A December rate rise is coming baring a Tuesday surprise.

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.

Forex Fall

After peaking at $4 trillion in 6/15, China’s foreign exchange holdings have steadily fallen and are now $3.12 trillion, their lowest level since 3/11. The decline would be larger absent China’s trade surplus of roughly $50 billion/ month which boosts China’s foreign currency holdings. The continued decline means China’s currency remains overvalued and China’s trade surpluses would be larger without the government’s use of its reserves to ward off faster depreciation.

Presidential Position

Trump’s plans to replace Fed Chair Yellen on 2/3/18 when her term expires is bad news; she is doing a very good job. What is worse, however, is his attacking the Federal Reserve for being politically motivated. These comments weaken the Fed’s independence. That makes its rate moves possibly less economically-grounded and predictable and increases inflation fears. And that raises risk premia which makes borrowing needlessly more expensive. Enough.

www.hbafm.com

29


REMODELERS COUNCIL CHAIRPERSON LETTER

Council Has a Charitable Year, Works to Grow Remodeled Home Tour

Your local Remodelers Council stayed busy all year long working on promoting the Remodeled Home Tour, working on projects in our community and welcoming new council members. In January the council held a lunch session for members who were interested in putting a home on the tour. This session hosted a panel of members who have previously had projects available. They recommended tips for getting consumers to agree to putting a home up and how beneficial they believe the tour is to their businesses. In addition to the lunch session, council members made calls to the membership asking who may be able to put up a project. With the help of the council we had 4 homes on the 2016 Remodeled Home Tour. The council also saw an increase in community requests for assistance in construction needs. Council members assisted in helping a disabled veteran finish a shed build he was no longer able to work on due to being confined to a wheelchair. Council members also teamed up with Home Builders Care and are working to remodel the Dakota Boys and Girls Ranch. With the game room coming close to completion, we are looking forward to taking on the kitchen next. Finally the council welcomed three new members this year and continues to recruit from within our HBA membership. Being a part of the council is bigger than your HBA membership. You get to help make decisions on community projects and the success of the Remodeled Home Tour! Thanks to all the council members for a wonderful 2016 and letting me serve as your chair!

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


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NEW MEMBERS

ASSOCIATE Berkshire Hathaway HomeServices Premier Properties - Tom Houglum, Realtor 1815 38th St S Fargo, ND 58103 Tom Houglum (218) 790-7779 Real Estate Sponsor: Carlita Dietz, Berkshire Hathaway HomeServices Premier Properties Bin There, Dump That 4114 15th St S Fargo, ND 58104 Ryan Ditterick (701) 212-2871 Industry Support & Services Sponsor: Robin Swanson, Superior Insurance Element Realty 4610 Amber Valley Pkwy Ste E Fargo, ND 58103 Nick Olson (701) 478-3390 Real Estate Sponsor: Clay Dietrich, Dietrich Custom Homes Green Team Realty - Dawn Cruff, Realtor 2834 27th St S Fargo, ND 58103 Dawn Cruff (701) 361-7522 Realtor Sponsor: Tracy Green, Green Team Realty Hayfield Window & Door Company 107 9th St SE Hayfield, MN 55940 Charlie Brandt (507) 477-3224 Windows - Manufacturer Sponsor: Perry Eidem, Allied Building Products

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Ott’s Quality Painting Inc PO Box 1308 Fargo, ND 58103 Jason Ott (218) 979-9600 Painting & Staining - Contractor Sponsor: John Hough, JV Hough Inc. Park Co. Realtors - Shannon Bienek, Realtor 29 10th St N Fargo, ND 58102 Shannon Bienek (701) 866-4760 Real Estate Sponsor: Dawn Lahlum, Park Co. Realtors Prairie Scale Systems 7805 112th Ave S Horace, ND 58047 Amanda McDowell (701) 281-9591 Repair & Services Sponsor: George Fraza, Blue Cross Blue Shield of ND RE/MAX Legacy Realty - Michele Evert, Realtor 668 Hampton Dr E Moorhead, MN 56560 Michele Evert (701) 361-8131 Real Estate Sponsor: Amber Nefzger, RE/MAX Legacy Realty Riverside Plumbing 302 19th St N Ste 5 Fargo, ND 58102 Melissa Johnson (218) 261-7732 Plumbing - Contractor Sponsor: Dan Wendt, Wendt Construction

Seamless Pro 5009 43rd St S Fargo, ND 58104 Jesse Beyer (701) 936-4356 Gutters Sponsor: Gary Orth, Cornerstone Specialties Werner Electric Supply 100 36th St SW Ste 100 Fargo, ND 58103 Todd Kadry (701) 955-8021 Electrical - Supplier Sponsor: Robin Swanson, Superior Insurance

BUILDER

Fargo Modern Homes 3566 55th St S Fargo, ND 58104 Don Siverson (218) 234-9438 Builder - Custom Homes Sponsor: Kurt Hansy, Superior Plumbing Square Builders 222 1st St NW Mayville, ND 58257 Doug Strand (701) 430-9800 Remodeler - Residential Sponsor: Gary Orth, Cornerstone Specialties Vision Construction 205 36 1/2 Ave Pl E West Fargo, ND 58078 Ben Koppelman (701) 491-0665 Builder - Commercial Sponsor: Dan Lindquist, Dan Lindquist Construction

www.hbafm.com


ANNUAL TABLE SPONSORS

DECEMBER AT A GLANCE

Dec. 1 Health, Tech & Trades Career Expo Dec. 6 Public Issues Committee Dec. 8 Education Committee Dec. 9 Events Committee

Dec. 12 Safety Training: Fall Protection Dec. 13 Lunch Session

Dec. 14 Membership Committee

Dec. 15 Board of Directors Meeting Dec. 23 HBA closes at noon Dec. 26 HBA closed

Dec. 30 HBA closes at 2 p.m.

JANUARY Jan. 2 HBA closed

Jan. 4 Home Builders Care Board Meeting Jan. 5 Education Committee Jan. 13 Events Committee

Jan. 9 Membership Committee Jan. 10 World of Thanks

Jan. 10-12 International Builders Show

Jan. 26 New Year Celebration & City Night

www.hbafm.com

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(218) 233-0065

CONTACT US AFTER HOURS Scott Persoon (701) 219-0399 Toby Christensen (701) 219-0400

3380 8th St S Moorhead, MN 56560 www.hbafm.com


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

35


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

ADVERTISING INDEX

Acme.................................................................................. 31 Alerus................................................................................. 19 Bell Bank............................................................................34 Blue Cross Blue Shield of North Dakota.............................. 19 Camrud Foss Concrete Constr. Inc.....................................34 Carpet World...................................................................... 18 Cass County Abstract...........................................................7 Cass County Electric Cooperative.......................................34 Central Minnesota Credit Union...........................................34 City View Property Management LLC.................................. 31 Dawson Insurance..............................................................29 Dietrich Construction.............................................................2 Gemstone Masonry............................................................. 15 Goodin Co..........................................................................35

Hauck & Buchholz Drywall Inc............................................ 31 Knight Printing......................................................................4 Lampert Lumber.................................................................. 31 Northland Truss Systems, Inc..............................................29 Property Resources Group.................................................. 15 Rigels................................................................................. 19 Stenerson Lumber............................................................... 31 Stone Countertop Outlet...................................................... 18 The Title Company................................................................7 TRN Abstract & Title........................................................... 18 Valley View......................................................................... 18 Xcel Energy..........................................................................3


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

20 18 2 0 0 1 3 32 4 0 23 83

Units

0 0 0

2015 Value Permits

$4,775,000 $4,375,000 $400,000 $0 $0 $1,600,000 $1,198,000 $382,839 $3,040,000 $0 $596,499 $11,592,338

24 20 4 0 0 0 3 48 4 0 11 90

$32,111,639 $23,552,714 $5,318,925 $3,240,000 $0 $7,160,000 $8,226,597 $4,904,256 $14,719,600 $0 $300,180 $67,422,272

181 133 48 0 0 11 25 393 75 0 40 725

Units

2016 Value Permits

21 21 0 0 0 0 0 55 1 0 18 95

$36,143,899 $28,037,899 $8,106,000 $0 $0 $21,226,880 $9,992,714 $3,775,265 $8,441,403 $0 $899,375 $80,479,536

3-Yr Avg Value

Permits

$4,775,900 $4,775,900 $0 $0 $0 $0 $0 $367,356 $750,000 $0 $166,800 $6,060,056

22 20 2 0 0 0 2 45 3 0 17 89

146 118 4 0 12 6 26 404 59 0 58 699

$28,818,300 $24,468,300 $750,000 0 $0 24 $3,600,000 126 $9,933,755 $31,995,215 $4,839,877 $73,502,276 $0 $485,593 $149,575,016

167 121 29 2 4 7 24 387 70 0 49 702

$79,653,825 363 $63,661,005 310 $5,735,490 34 73 $10,257,330 19 0 $0 0 805 $68,954,603 22 $40,398,056 45 $12,603,132 917 $62,699,792 310 $128,995,154 26 $19,802,695 361 $413,107,257 2,044

$95,111,952 $84,613,680 $4,904,600 19 $5,593,672 0 $0 656 $58,635,646 $61,756,573 $16,120,730 $69,598,727 $37,897,436 $31,333,561 $370,454,625

347 274 31 41 0 26 53 874 297 34 328 1,959

393 322 40 8 0 0 34 394 62 8 16 907

$87,727,060 $74,438,727 $8,948,333 31 $4,340,000 0 $0 0 $0 $45,930,420 $5,642,444 $9,355,825 $36,890,542 $3,615,718 $189,162,009

392 271 64 17 0 5 31 330 47 6 34 845

$200,857,145 923 $158,810,325 771 $22,546,490 78 135 $19,500,330 27 0 $0 12 1101 $94,940,483 28 $87,252,400 105 $23,068,955 1770 $93,244,307 432 $137,590,251 34 $29,428,894 453 $666,382,435 3,745

$216,433,212 $188,296,607 $14,602,933 50 $9,933,672 24 $3,600,000 782 $68,569,401 $139,682,208 $26,970,407 $153,206,828 $74,787,978 $35,601,672 $715,251,706

0 0 0

$6,630,850 $5,690,850 $940,000 $0 $0 $0 $422,000 $290,870 $605,000 $0 $36,689 $7,985,409

Units

0 0 0

Units

0 0 0

Value

5,393,917 4,947,250 446,667 0 0 533,333 540,000 347,022 1,465,000 0 266,663 8,545,934

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

173 113 36 6 0 3 20 363 76 0 48 683

24 0 86

0 0 254

8 8 155

32,357,946 25,352,971 4,724,975 1,080,000 1,200,000 12,773,545 16,738,175 4,506,466 32,221,093 0 561,716 99,158,941

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

312 255 26 31 0 31 51 815 292 48 342 1,891

$68,935,976 365 $58,991,976 258 $5,294,000 34 31 $4,650,000 73 0 $0 0 1297 $106,280,000 25 $217,913,749 62 $12,957,367 891 $93,034,353 289 $101,377,075 29 $31,350,149 281 $631,848,669 1,942

41 0 919

81,233,918 69,088,887 5,311,363 6,833,667 0 77,956,750 106,689,459 13,893,743 75,110,957 89,423,222 27,495,468 471,803,517

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

435 258 100 13 0 11 31 254 47 5 55 838

$87,854,337 $64,639,337 $13,245,000 77 $9,970,000 0 $0 384 $28,100,000 $51,690,301 $4,229,206 $6,027,536 $16,387,951 $1,794,212 $196,083,543

347 233 52 30 0 3 28 341 33 6 31 789

$78,428,571 $61,420,571 $7,765,000 62 $9,243,000 0 $0 42 $4,759,000 $36,439,630 $6,399,688 $21,498,112 $8,595,097 $8,690,135 $164,810,233

57 0 142

84,669,989 66,832,878 9,986,111 7,851,000 0 10,953,000 44,686,784 5,423,779 12,293,824 20,624,530 4,700,022 183,351,928

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

10/13/2016

940 644 164 50 0 46 105 1464 419 53 468 3,495

$193,676,952 917 $151,559,027 644 $24,257,925 138 132 $17,860,000 103 0 $0 0 1767 $143,140,000 39 $279,028,647 118 $22,473,668 1673 $116,821,489 401 $117,765,026 35 $34,041,040 363 $906,946,822 3,546

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.

927 686 127 60 106 4 8 38 1,217 109 1,636 417 41 428 3,595

203,655,770 166,221,986 20,469,116 15,764,667 1,200,000 102,216,628 168,654,418 24,171,010 121,090,875 110,047,752 33,023,869 $762,860,321


Home Builders Association of Fargo-Moorhead 2016 Permit Report - YTD (September) MINNESOTA BARNESVILLE Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total

Permits

11 11 0 0 0 0 0 44 5 0 18 78

Units

0 0 0

Value

$2,833,000 $2,833,000 $0 $0 $0 $0 $0 $506,376 $60,500 $0 $127,591 $3,527,467

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

Permits

6 5 0 0 1 0 1 4 0 0 15 26

Units

0 1 0

Value

$1,460,000 $1,210,000 $0 $0 $250,000 $0 $615,333 $11,100 $0 $0 $96,350 $2,182,783

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

Permits

1 1 0 0 0 0 2 29 2 1 3 38

Units

0 0 0

Value

$311,000 $311,000 $0 $0 $0 $0 $202,000 $431,115 $52,000 $1,470,600 $52,000 $2,518,715

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

10/13/2016

Permits

3 3 0 0 0 0 0 8 0 0 0 11

Units

0 0 0

Value

$607,000 $607,000 $0 $0 $0 $0 $0 $519,400 $0 $0 $0 $1,126,400

MAPLETON 1 1 0 0 0 0 0 1 0 0 3 5

0 0 0

$180,000 $180,000 $0 $0 $0 $0 $0 $1,800 $0 $0 $190,600 $372,400

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

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

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

37 15 22 0 0 0 1 12 1 1 0 52

0 0 0

$7,015,743 $4,066,743 $2,949,000 $0 $0 $0 $650,000 $132,846 $30,670 $6,439,325 $0 $14,268,584

OXBOW 1 1 0 0 0 0 0 8 1 0 2 12

0 0 0

$305,000 $305,000 $0 $0 $0 $0 $0 $266,336 $75,000 $0 $44,500 $690,836

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

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.

9 9 0 0 0 0 1 1 0 0 0 11

0 0 0

$8,742,000 $8,742,000 $0 $0 $0 $0 $1,300,000 $18,000 $0 $0 $0 $10,060,000


2017

JAN. 23 Safety Training JAN. 26 New Year Celebration & City Night JAN. 27 Education Summit & Trade Showcase (MN Building Contractor Continuing Education, MN Plumbing Contractor Continuing Education and MN Power Limited Technician Continuing Education)

FEB. 1 & 2 Certified Aging in Place I & II FEB. 10 MN Continuing Education for Residential Contractors FEB. 24-26 Red River Valley Home & Garden Show MARCH 23 ‘Chilly’ Cook-Off APRIL 7 Fish Fry APRIL 22-23, 28-30 & MAY 5-7 Spring Parade of Homes MAY 12 Remodelers Council Picnic MAY 18 Spring Parade of Homes Celebration JUNE 5-16 Herdina Academy for the Construction Trades JULY 11 Golf Outing JULY 26 Muddy Boots Picnic AUG. 10 Associate Appreciation & Family Picnic AUG. 22 Golf Outing SEPT. 16-17, 23-24 Fall Parade of Homes SEPT. 23-24 Remodeled Home Tour OCT. 1-31 Showroom Tour OCT. 26 Awards Gala & Annual Meeting NOV. 30 Health, Tech & Trades Career Expo DEC. Happy Holidays!


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