Foundations - May/June 2013 by Rochester Area Builders, Inc.

A&A Electric & Underground, Inc. + AB Systems, Inc. + Abbco Company + ABC Seamless of Rochester, Inc. + ABC Supply Company, Inc. + Above All Roofing of Rochester, Inc. + Accord Electric, Inc. + Adair Electric Company + Adamson Motors + Advanced Builders & Remodeling + Advanced Builders, LLC + Advanced Building Center, Inc. + Advanced Disposal + Advantage Cabinets, Inc. + AgStar Home Mortgage Services + Alexander & Sons Builders + Mike Allen Homes, LLC + Allen Outdoor Solutions, LLC + All-Star Basements + Alpha Video & Audio + Altra Federal Credit Union + American Engineering Testing, Inc. + American Fence Company of MN, LLC + American Waterworks + Ames Construction, Inc. + Andersen Windows, Inc. + Anderson Construction + Appliance Village Company + Arcon Development, Inc. + Arrow Building Center + Associated Bank + Athelon Enterprises, LLC + B&C Plumbing & Heating, Inc. + Al Barker Custom Homes, Inc. + Barrier Free Access, Inc. + Basement Water Control + Batzel Builders, Inc. + Beckley's Office Products + Beetles Bar & Grill, Inc. + Alvin E. Benike, Inc. + Scott Berberich Construction, LLC + Scott Berg Construction, LLC + Bessler Management + Beyond Kitchens, LLC + Bigelow & Lennon Construction, LLC + Bigelow Homes + K.W. Billman, Inc. + The Blue Book of Building & Construction + Bobcat of Rochester + Bob's Construction, Inc. + The Boldt Company + Bouquet Builders, Inc. + Bowman's Door Solutions + Brandrup Builders + Brannt Valley Excavating, Inc. + Brauer Roofing, Inc. + Braun Intertec Corporation + Brekke Fireplace Shoppe + Bricewood, LLC + Briese Iron Works, Inc. + Bright Ideas + Brinkman Builders, LLC + Brock White Company + Tom Brogan Heating & Air Conditioning + Larry Brooks Builders + Brooks Excavating Company, Inc. + C.O. Brown Agency + Bruce Bucknell Construction, Inc. + Budget Blinds + Burdick Builders, Inc. + By Design Builders + Byrne Electric, Inc. + Cachiaras Building & Remodeling + Cambria + Canadian Honker Entities + Carpet One + Castlewood Homes, Inc. + Century Painting & Decorating, LLC + Charter Communications/Media + Chladeks Construction, LLC + Chosen Valley Testing, Inc. + Christian Brothers Cabinets, Inc. + City of Byron + City of Chatfield + City of Eyota + City of Preston + City of Spring Valley + Citywide Insulation, Inc. + Clear Channel Radio (Laser/Fox/KFAN) + Clements Chevrolet Cadillac Subaru + Closet Organizers + Coldwell Banker Burnet + Commercial Leasing Services + Construction Partnership + Coordinated Business Systems, Ltd. + Corban Homes, LLC + Cordes Construction + Cornerstone Builders & Real Estate, Inc. + Cornerstone Designs of Rochester, Inc. + Corporate Web Services, Inc. + Counselor Realty of Rochester, Inc. + Countryside Builders, LLC + Cravath Homes, LLC, dba Accessibility Solutions + Creative Hardwood Floors + Crescent Electric Supply Company + CRW architecture + design group, inc. + Culligan of Rochester & Kasson + Cumulus Radio + Curry's Custom Cut Gutter, LLC + Curtin Drywall, Inc. + Custom Alarm/Custom Communications, Inc. + Custom Retaining Walls & Landscaping, Inc. + D2E, LLC + Dahl Home Builders, Inc. + Data-Smart Computers, Inc. + Davies Printing Company + DeGeus Tile & Granite + Derby Construction LLC + The Design Connection + Design Studio B + DeWitz Home Builders, Inc. + DMC Plumbing & Heating, Inc. + Dolan's Landscape Center, Inc. + DoubleTree by Hilton - Mayo Clinic Area + DreamMaker Bath & Kitchen + Dunham Associates, Inc. + Dunlap & Seeger + JE Dunn Construction + M.H. Dutton Construction, LLC + E&M Consulting, Inc. + Eastwood Bank + eci, llc + Eckert Construction, Inc. + Edel Construction, LLC + Edge Homes & Construction, Inc. + Edina Realty Home Services + Todd Eidem Construction, Inc. + Elcor Construction, Inc. + Elcor Realty of Rochester, Inc. + Electrical Solutions & Service + Elias Construction, LLC + Energy Panel Structures + Energy Products & Design, Inc. + Enventis + Excel Homes + The Excelsior Group, LLC + Expert Insulation, Inc. + Express Employment Professionals + Extreme Panel Technologies, Inc. + Fairway Outdoor Advertising, LLC + Ferguson Enterprises + Fieldstone Family Homes, Inc. + First Alliance Credit Union + First Choice Homes, LLC + First General Services of SE MN + First Security Bank + R. Fleming Construction, Inc. + Ford Metro Glass, Inc. + Foster Construction, Inc. + Franklin Energy + Friedrich Construction, Inc. + Chris Fritsch Custom Homes, LLC + Gander Plumbing & Heating, Inc. + Dale Gathje Construction, Inc. + GDM Trailers, LLC + Steve Gentry Construction, LLC + Gerhard's + Gift Book Plus + Robert Gill Builder, Inc. + Global Resolve + Goodin Company + Great River Overhead Door + Green Lawncare Irrigation & Service Co. + Greenway Cooperative Service Company + Gregor Builders, Inc. + Gulf Eagle Supply + Gutter Topper of Minnesota/TAG Construction, LLC + Habitat for Humanity - Rochester Area + Habitat for Humanity - Winona/Fillmore County dba Habitat ReStore + Haley Comfort/FireSide by Haley + W.L. Hall Company + Hammer Homes, Inc. + Hanson Construction & Specialty Cabinets, LLC + Hayfield Window & Door Company + HDR Architecture + Heartman Insurance + Heartwood Homes of Rochester, Inc. + Heim Drywall Enterprises, Inc. + Brandon Henderson's Construction Plus, LLC + Hentges Glass Company + HG Electric, LLC + HGA Architects and Engineers + Hicks Electric, Inc. + Higgins Custom Cabinetry + High Definition Homes, LLC + Hiller's Flooring America + HiMEC at Home + Jeff Hinkle Custom Homes + Hirshfield's Decorating Center + Holt Title Guaranty Company, Inc. + The Home Depot + Home Federal Savings Bank + Home Improvement Professionals, Inc. + Home Systems Installation, LLC + Howe Countertops + Hunt Electric Corporation + Hutch's Custom Cabinets + Int'l Brthrhd of Electrical Wrkrs Local 343 + Innovative Surfaces, Inc. + Insty Prints + Insul-Seal Home Insulation + IntegraSpec Central/Jeff Mueller Construction + Integrity Custom Homes, Inc. + J&M Consulting + Michael Jack, LLC + J.P. Johnson Custom Builders, Inc. + JP's Construction Remodeling & Repair, Inc. + K&M Glass Company + K&S Heating, A/C, Plumbing & Electrical + Kahler Grand Hotel + Tom Kalmes Construction, Inc. + Kane & Johnson Architects, Inc. + Keller Williams Premier Realty + Key Builders, Inc. + King's Flooring, LLC + Kinzler Construction Services, Inc. + Kirkland Enterprises, LLC + Kitchen Concepts + The Kitchen Design Studio + Kitchens Plus + Gary Kline Roofing, Inc. + Knutson Construction Services + Koball's Poured Walls, Inc. + Komitt Concrete, Inc. + KrausAnderson Construction Company + Kreofsky Building Supplies + Kruger Electric, Inc. + Kruse Lumber + KTTC/KXLT-TV + Kuehn Motor Company, Inc. + Kuntz Electric, Inc. + Kwik Trip, Inc. + L&L Cabinets + Lacina Siding & Windows, Inc. + Laitala Tile Company + Larsen Industries, Inc. + Larson Siding & Windows + ers, LLC + Lodermeier's, Inc. + Lowe's Home Improvement + Lumber Legends Concrete, Inc. + Leitzen Concrete Products, Inc. + Leyendecker HomebuildLiquidators + Ed Lunn Construction, Inc. + Luxury Bath Remodeling + Maas Companies, Inc. + Maier Tree & Lawn + Majestic Homes, Inc. + R.J. Manemann Custom Homes + Maplewood Homes, LLC + Markham Homes, LLC + markit + Marvin Windows & Doors + Massey Land Surveying & Engineering + Master Builders, Inc. + Mavo Systems, Inc. + McGhie & Betts, Inc. + McGladrey + McGough Construction + MDH, Inc. + Meadow Lakes Builders + MEC Construction, Inc. + Med City Builders of Rochester, LLC + Medcare Products, Inc. + Menards - South + MEP Associates + Merchants Bank + M e r i t Contracting, Inc. + Michael's Custom Cabinets, Inc. + Mid American ter, Inc. + Minnesota Energy Resources Corporation + Minnwest Bank + Financial Group + Midwest LeafGuard of Rochesquito Squad of SE MN + Larry Newman Drywall + Nickelson Painting, Inc. MLT Group + Morris Concrete, Inc. + M o s + North Central States Regional Council + Northern Lights & Furnishings + Nuss Truck & Equipment + Ohly Law Office + Olmsted County Journal + Olmsted County Lumber Mart, Inc. + Olmsted County Planning Dept, Insp. Div. + Olmsted County Public Health + Olmsted National Bank + J.B. O'Meara Company + OnSite + Otis Custom Homes, LLC + Owner's Plumbing, Inc. + Paape Energy Services + Pahl & Kaye, Inc. + Palmer Soderberg, Inc. + Paper & Graphics, Inc. + Walt Pappas Construction + Paramark Corporation + Payne Company + PC Applications Consultants, Inc. + Pearson Builders, Inc. + Pebble Creek/Western Walls + Pegram & Dexter Construction & Design + Pella Windows & Doors + Pendle Hansen Bagne Insurance + Penz Custom Homes, Inc. + People's tive + G. Pestka Appraisals + Peterson Well Drilling, Inc. + Pine Island Energy CooperaLumber, Inc. + Pine One Hour Heating & Air Conditioning + Pompeii Painting, Inc. + Bulletin Company, LLC + Prehn Building Sales, Inc. + Premier Bank P o s t ter + Premier Builders of Rochester, Inc. + Price Financial Services, RochesPrime Time Painting of Rochester, LLC + PrimeLending + Priority Inc. + Claims Service + Pro Image Promotions & Apparel + ProBuild Company, LLC + Quality Overhead Door Company, Inc. + Quality Siding & Window, Inc. + Michael Quinn Law Office + R&M Development Company + Radcliffe Homes & Remodeling + Range Construction, LLC + RCON Homes, Inc. + RCTC Carpentry Program + RE/MAX of Rochester + Region Millworks, Inc. + David Reiland Building Contractor, LLC + DEVELOPMENT Reliable Contractors, Inc. + Reynolds COUNCIL Design and Construction + Rochester BUILDERS COUNCIL Area Appraisals, LLC + Rochester Area Chamber of Commerce + Rochester a division of rochester area builders, inc. a division of the Rochester Area Builders, Inc. Area Econ. Development, Inc. + Rochester a division of Rochester Area Builders, Inc. phalt, Inc. + Rochester Building Safety A s Department + Rochester Concrete Products, LLC + Rochester International Event Center + Rochester Overhead Door Company + Rochester Plumbing & Heating/Roto Rooter + Rochester Public Utilities + Rochester Public Works + Rochester Ready Mix Concrete Co + Rochester Service Company / SL Contracting + Rochester Sign Service, Inc. + Rochester Title & Escrow Company, Inc. + Rock Solid Retaining Walls + Ronningen Roofing, Inc. + RSP Architects + Ryan & Grinde, Ltd. + Ryan Electric, Inc. + Ryan Windows & Siding, Inc. + Sargent's Landscape Nursery, Inc. + Schad Tracy Signs, Inc. + Schmidt Goodman Office Products + Schoeppner, Inc. + Schumann Granahan Hesse & Wilson, Ltd. + Schwab, LLC + Schwickertâ&#x20AC;&#x2122;s Tecta America, LLC + Seavey Builders, Inc. + Servpro of Rochester, Inc. + Dan Severson Builders, Inc. + Shanahan Building & Remodeling, LLC + Sherwin Williams Company + Sign Here, Inc. + Simonson Builders, LLC + Smart Home Innovations & Engineering, Inc. + Smith Schafer & Associates, Ltd. + Solar Connection, Inc. + Somerby Golf Community + Space Concepts, Inc. + Spahn & Rose Lumber Company + Greg Speedling Contracting, Inc. + Spring Valley Overhead Door, Inc. + Stadsvold's Lawn & Landscape + Stantec + Steel Constructors, Inc. + Sterling State Bank + Stevens Heating, Inc. + Stewartville Economic Development Authority + Stier Construction, Inc. + StoneBridge Builders + Structural Design Group, Inc. + Struve's Paint + Robert G. Suk Law Office, PA + Summit Custom Homes, LLC + Summit Fire Protection Company + Superior Mechanical + Craig Swanson Builders, Inc. + Swenke Company, Inc. + Kenny Sylvester Construction, LLC + Synergy Products + Tag's Drywall, Inc. + Tamarack Materials of Rochester, Inc. + TDS Metrocom + Teigen Paper & Supply, Inc. + ThermoTech Windows + Thiemann Construction, Inc. + Thimijan Custom Homes, LLC + Think Mutual Bank + Thomas Tool & Supply + Thompson's Garage Door and Openers + Tile Superstore & More + TLC Surfaces + Tonna Mechanical, Inc. + Top Shop of Rochester, Inc. + Total Electric of Rochester, Inc. + Tradesmen International, Inc. + Traditional Wood Builders + Tri Star Insulation + Tri State Insulated Concrete Forms + TSP Architects & Engineers + Turri Crane Service, Inc. + Turtle Creek Construction, Inc. + TW Construction Solutions, LLC + United Heating & Cooling + United Products Corporation + United Rentals + The Urban Studio, LLC + US Bank + Valor Mechanical, Inc. + Val-U-Blinds + Van Haren ICF + Vector Windows + Veit Companies + Vertical Limit Construction + Viking Automatic Sprinkler Company + Viking Electric Supply + Vision Homes & Remodeling, LLC + Vollara Global/DPS + WA Insurance Stellian Appliance Co., Inc. + Waste Management + + Waddell & Reed + Warners' Weather Shield Roofing, LLC + Weis Builders, Inc. + Greg Wellik Construction + Wells Bank Minnesota NA + Wells Fargo Home Mortgage + Wendland Utz + Werner a publication of Fargo Electric Supply + West Bank + Westridge Hills, Inc. + Jim Whiting Nursery & Garden Center, Inc. + Widseth Smith Nolting + Wildwood Bar and Grill + Winona Excavating Company + Wolter & Raak, Ltd. + Women Communications, LLC + Woodruff Company + Wright Homes, Inc. + WT Lighting + Xcel Energy + XRG Concepts, LLC + Yaggy Colby Associates + Rick Yerhot Builder + Your Home Improvement Company + Zumbro Haven, LLC + Zumbrota Ford

COMMERCIAL

D C

REMODELERS

FOUNDA

T IONS

MAY JUNE 2013

F O U N D AT I O N S Rochester Area Builders, Inc.

This Space Available Advertise in this space for just $140 an issue, or $650 a year (6 issues) Call Ryan at 507-282-7698

News from the President May 22nd, 2013

Index

News from the President .......................3

ell, I can ﬁnally say with certainty that spring has arrived! My heart goes out to all those affected by the recent storms throughout our nation. With spring comes a full force effort to get basements in the ground for residential new construction. With the housing stock down and permits on the rise, I believe 2013 will be the year of the housing comeback! All who are in the industry are aware of the cyclical nature of housing, and this return is long awaited! For those who have weathered the economic storm and were fortunate to survive, and for those who are new to the housing industry, it is now time to lend a hand (or should I say hammer) to keep our Association strong and vibrant. We need to share experiences, exchange best practices, stay knowledgeable in legislative and regulatory efforts and effectiveness, and continue to provide innovative ideas and solid market practices.

RAB Golf Outing ....................................4 June General Membership Meeting .....5 Association Scrapbook ........................ 6-7 Government Affairs Update ..................8 Committee Updates ...............................9 Builders, Brats, & Building Safety .......10 Thank Yous! ..........................................10 Remodelers Council ............................11 Commercial Builders Council .............12 April BAM Update ...............................13 May BAM Update .................................14 Public Works Dept. News .....................15 Rochester Permits ................................16 Byron/Pine Island Permits ..................17 Real Estate Data ...................................17 RAB 60th Anniversary ..........................18 Membership Information ............... 18-19 Interest Rates Yield No Recession .......20 NAHB Member Advantage ..................21

I encourage you to get involved, and recognize the professional responsibility we all have to each other. The economic and social benefits of a healthy housing market are immense! Being a part of a trade organization that promotes the industry in which you work allows you to contribute to the issues that influence your job the most. RAB is THE tool for every business owner who is touched by the construction industry! For those who haven’t yet had the opportunity to serve the association, please start now. It will not only benefit you, but our entire industry. Do good by doing good; let’s build this house together! Best Regards,

Jean DeWitz

2013 RAB President

Executive Director/Editor John Eischen Production Ryan Kling-Punt The Rochester Builders newsletter is the ofﬁcial publication of Rochester Area Builders, Inc. This newsletter is published and distributed bi-monthly to its members and others associated with the building industry. Neither the advertisers, nor RAB will be responsible or liable for misinformation, misprints, typographical errors, etc., herein contained.

108 Elton Hills Lane NW Rochester, MN 55901 507-282-7698 507-282-6351 Fax E-mail RAB@rochesterareabuilders.com www.RochesterAreaBuilders.com

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Join us at the RAB Golf Outing Thursday, June 6, 2013

Presented By:

WILLOW CREEK GOLF COURSE 1700 48th St SW

Hours: 10:00 A.M. Registration Starts - Lunch provided by Think Mutual Bank 11:00 A.M. Shotgun Start 4:30 P.M. 19th Hole - Appetizers and Social Time 5:00 P.M. Announcements and Prizes

Rochester Area Builders, Inc. is excited to be bringing you our annual golf outing, presented by Advanced Disposal. Willow Creek Golf Course will be hosting the event, which includes lunch, an 18 hole round on Willow Creek, and a “19th Hole” appetizer reception following the round. Our format is a four-person scramble - you can form your own four-some or we will assign you to a team. We hope you’ll join us for a great day of Golf, Networking and Fun!

New This Year! The 11 AM Shotgun start means you’re done earlier, so you can attend Thursday’s on First, your kids’ sporting events, or you can just go home and relax!

New Contests: BREAK THE GLASS Sponsored by Marvin Windows It time for you to make your Big Break! We’ve got a new contest on the driving range this year, where you can relive your childhood days of playing golf in the backyard. But this time if you break a window, you won’t get grounded, and you might just win big!

WIN A NEW CAR! Sponsored by Clements Chevrolet Cadillac Subaru This one speaks for itself! Get a hole in one on #6 and you win! www.RochesterAreaBuilders.com 4 | May/June 2013

Join us at the June Networking Night Tuesday, June 25th, 5:00 - 7:00 pm

at Gerhards, 3815 Highway 14 West ABOUT GERHARDS Gerhards was established in 1986 in honor of the late Gerhard ‘Gary’ Poehling whose father started a wholesale company in 1897 known today as First Supply. In 1940, Gary established the plumbing showroom concept for contractors and homeowners to view kitchen and bath product displays. He worked as a truck driver in the early years and later as President and Chairman before his passing in 1998. Gary’s legendary knowledge of product, customers, and customer’s needs combined to make him liked and respected by those who dealt with him. August 11, 2011 commemorated 25 years of the Gerhards name and began a new chapter of product inspiration, innovation and unmatched service. Today, Gerhards is staffed with a dedicated, professional design team to assist in the selection process. Choose from a multitude of colors, materials and design styles as you browse hundreds of kitchen and bath products on display and ready to transform your new home or remodel.

Hosted By

President

Jean DeWitz, DeWitz Home Builders, Inc.

Vice President

Kevin Worden, Rochester Area Habitat for Humanity

Secretary

Kathy Einck, Maplewood Homes, LLC

Treasurer

Tony Joseph, Pompeii Painting, Inc.

Past President

Jennifer Maass, Kitchen Concepts & Creative Living

Directors

Jeremy Bigelow, Bigelow Homes John Eckerman, The Boldt Company Delbert Feenstra, Knutson Construction Services Patty Hanson, Rochester Public Utilities Carla Kilpatrick, Home Federal Savings Bank Bruce Laufenburger, First General Services of SE MN Braden Markham, Markham Homes, LLC Sam Peyton, King’s Flooring, LLC Lindsey Rippentrop, Olmsted National Bank

Builders Exchange Council Representatives

Tony Wintheiser, Hentges Glass, Chair Travis Schmidt, Weis Builders, Inc., Vice Chair Mike Benike, A.E. Benike, Inc., Past Chair

Commercial Builders Council

Sue Hanson, Rochester Title & Escrow Company, Inc., Chair Chris Terry, Knutson Construction Services, Vice Chair

Development Council Chair Mark Engel, Yaggy Colby Associates

Remodelers Council Chair

Chris Ramsey, K&S Heating, A/C, Plumbing & Electrical

National Life Directors Joe Weis, Weis Builders, Inc.

National Directors

Steve Buss, Cornerstone Builders & Real Estate, Inc. Mike Coats, MEC Construction, Inc., Rep. David Kane, Kane & Johnson Architects, Inc.

State Directors

Jim Gander, Superior Mechanical John McGuine, J&M Consulting, LLC Mike Paradise, Bigelow Homes David Pederson, Wendland Utz, Rep. Dan Severson, Dan Severson Builders, Inc.

Executive Director

John Eischen JEischen@RochesterAreaBuilders.com

Staff

Audra Bolduan ABolduan@RochesterAreaBuilders.com Marketing, Builders Exchange Trustees

Rick Dold RDold@RochesterAreaBuilders.com Government Affairs, Commercial Builders Council, Development Council, Building Safety Advisory Group, Public Works Advisory Group, Community Relations, Green Building, Marketing Sharill Mueller SMueller@RochesterAreaBuilders.com Home Show, Showcase Committee Rebekah Nielsen RNielsen@RochesterAreaBuilders.com Ambassadors, Education, Membership, Program, Spike Club, Remodelers Council -Executive-Home TourRyan Kling-Punt RPunt@RochesterAreaBuilders.com Golf Outing, Sporting Clays, Directory, Newsletter, E-News Update

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Association Scrapbook

www.RochesterAreaBuilders.com 6 | May/June 2013

April General Membership Meeting

RAB Match Game!

Association Scrapbook

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Government Affairs

by Rick Dold, Public Affairs Director

Tree Ordinance – Recently, the Planning and Zoning department completed a draft of the amended tree ordinance that included changes to the payment-in-lieu provision, as well as a few other provisions aimed at addressing issues with the current tree ordinance. There are two primary concerns we are focusing on right now with the tree ordinance amendment. First, we are working to ensure that developers do not have to pay for trees that will not fit on the property. Second, we are working with both planning and zoning and the parks department to make sure staff has enhanced decision making authority under the new ordinance to avoid the variance process. We are confident that the city and county staff we have worked with on the issue have a solid understanding of our concerns and are working to address them. Permitting Task Force – The Permitting Task Force submitted their final report to the city council on May 6th and offered the following two suggestions to improve the permitting process here in Rochester. 1.) The Task Force recommended that the City hire Development/Growth Director with the charge of breaking down the walls between the departments and improving internal coordination between Building Safety, Planning and Zoning, Public Works, and all other departments implicated in the building process. 2.) The Task Force recommended that additional resources be put behind the current software used by the City for permitting to ensure they begin using the program to the utmost of its abilities. We look forward to working with the city council and staff on making these changes and ensuring the all of the changes made go towards improving the permitting process in a way that makes sense for everyone involved. Local Contracting Policy – Both the city council and county board have expressed an interest and intent to include within their bidding processes a provision or policy that takes into account whether a contractor is local. We are not advocating for or against the best value bidding process but, it appears to be the only way in which such a provision or policy may be adopted. Conversations are ongoing with both the city and county attorney to find a way in which we can adopt a local contracting policy that everyone agrees best serves the interest

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of the our members, the city, and the county. Heritage Preservation – The new Heritage Preservation Commission will be nominated for appointment by Mayor Ardell Brede at the next city council meeting on June 3rd. Once the nominees are confirmed to the Commission they will start creating a list of properties to be designated as historic. However, because there are no existing requirements placed on a designated property by ordinance it is unclear as to the practical effect of designation at this time other than to create an opportunity for public dialogue at City Council meetings. State Level Issues – The two primary issues faced by the building industry this legislative session were the ultimate passage of DMC and the inclusion of a sprinkler mandate in the newest code iteration to be published by the Minnesota Department of Labor and Industry (“DOLI”). 1.) The DMC infrastructure bill has been adopted and now we will move on to the community visioning stage of the DMC process where citizens of Rochester, Olmsted County, and the surrounding area will start determining what this initiative will look like for everyone involved. For more details on DMC, go to DMC.MN, your official source for all things DMC. 2.) The sprinkler mandate for new homes 4500 sq.ft. or larger remains in the code and multiple attempts to attach a legislative amendment that would prohibit such a requirement did not make it out of the legislative session. DOLI has yet to publish the Statement of Need and Reasonableness (“SONAR”) required to ratify the new code provision regarding sprinklers. Once that SONAR is published, BAM will file an official challenge and start the administrative hearing process. BAM continues to fight at the state level to ensure that other regulations and laws do not tamp down the ongoing recovery of our industry. For up to date information regarding what’s going on at BAM, go to bamn.org where you will find in depth information on other issues BAM is working on for builders in Minnesota. If you have any questions, comments, or concerns regarding any of the above mentioned topics, please shoot me an email at RDold@RochesterAreaBuilders.com or give me call at 507282-7698 and I’ll be happy to answer your questions.

For More Information,Visit: National Association of Home Builders: www.nahb.com Builders Association of Minnesota: www.bamn.org

Committee Chairpersons AMBASSADORS Curt Wigham, Express Employment Professionals AWARDS Kathy Einck, Maplewood Homes, LLC BUILDING MAINTENANCE TJ Schutz, Advanced Building Center, Inc. BUILDING SAFETY ADVISORY Aaron Benike, A. E. Benike, Inc.. COMMUNITY RELATIONS Tracy Hoover, Ferguson Enterprises DISPUTE RESOLUTION Jay Burke, Heartwood Homes of Rochester, Inc. EDUCATION Les Radcliffe, Radcliffe Homes & Remodeling EXECUTIVE Jean DeWitz, DeWitz Home Builders, Inc. FINANCE Tony Joseph, Pompeii Painting, Inc. GOLF OUTING Jill Eggerichs, McGladrey GOVERNMENT AFFAIRS Rory Lenton, Minnesota Energy Resources Corporation GREEN BUILDING Curt Shellum, Solar Connection, Inc. HOME SHOW – 2013 Jeff Kalmes, Hillers Flooring America MARKETING Jeff Weisz, Data-Smart Computers, Inc. MEMBERSHIP & RETENTION Adam Benike, A. E. Benike, Inc. NOMINATING Jean DeWitz, DeWitz Home Builders, Inc. PERSONNEL Diane Quinn, Beyond Kitchens, LLC PROGRAM Carissa Frericks, Rochester Title & Escrow Company, Inc. PUBLIC WORKS ADVISORY NONE SHOWCASE OF HOMES Travis Nemechek, Kruse Lumber SPIKE CLUB Jim Buchan, Energy Products & Design, Inc. SPORTING CLAYS Jim Nicholas, Wildwood Bar and Grill

Councils

BER EXECUTIVE COMMITTEE Tony Wintheiser, Hentges Glass Company CBC EXECUTIVE COMMITTEE Sue Hanson, Rochester Title & Escrow Company, Inc. DEVELOPMENT COUNCIL Mark Engel, Yaggy Colby Associates

Committee Updates

NOMINATING COMMITTEE CHAIRPERSON: Jean DeWitz, DeWitz Home Builders The Nominating Committee will be meeting soon to discuss nominations for the 2014 Board of Directors, as well as chairpersons for our many committees and councils. If you would like to recommend a member for a position, or if you would like to recommend yourself, please call John at the office 282-7698! We are always looking for new people to be involved in the management of our association. SHOWCASE COMMITTEE CHAIRPERSON: Travis Nemechek, Kruse Lumber The Fall Showcase of Homes is scheduled for September 14th, 15th and 22nd, 23rd. Have you started building a home to enter in the Showcase? It’s a wonderful opportunity to have your home seen by thousands of potential customers. Information packets have been mailed to residential builders and the first of three deadlines is June 20th. PROGRAM COMMITTEE CHAIRPERSON: Carissa Frericks, Rochester Title & Escrow Company, Inc. Summer Networking Nights are here, so Summer must be as well! The first will be hosted by Gerhards on June 25th and the second will be hosted by Rochester Area Builders on July 30th. All meetings will start at 5:00 PM and end at 7:00 PM. Door prize drawings are held around 6:30 PM. The meetings are more casual so that you can come whenever you want and stay as long as you want – they are lots of fun and are a great opportunity for networking! Do you have your calendar marked for the Annual Christmas Party? It is scheduled for Friday, December 6th at the Doubletree in Downtown Rochester. It’s going to be fantastic! You won’t want to miss the fun.

REMODELERS EXECUTIVE COMMITTEE Chris Ramsey, K&S Heating, A/C, Plumbing & Electrical REMODELERS TOUR Karen Blissenbach, Design Studio B REMODEL IT RIGHT DISPLAY Bob Robertson, Radcliffe Homes & Remodeling

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Builders, Brats & Building Safety Attention Builder Members! Join us on the 4th Wednesday of each month this summer for lunch and conversation with the Building Safety Department of the City of Rochester. While you enjoy brats and soda, you can get to know the inspectors and department heads, as well as be brought up to date on any code or department topics. Stop in for 20 minutes and get some food, or stay for the full 2 hours! The dates are:

Wednesday, June 26 Wednesday, July 24 Wednesday, Aug. 28

11 am—1 pm 11 am—1 pm 11 am—1 pm

Thank You!

March Networking Night Thank you to Lowe’s Home Improvement for hosting the March 26, 2013 Networking Night. Mike Dass and the rest of the Lowe’s staff did a great job with the food and gave away lots of goodies for those in attendance. Thanks, Mike! April General Membership Meeting Thank you to Dunlap & Seeger for sponsoring the social hour. They were represented by Tom Jacobson. Thanks, Dunlap & Seeger for all you do to support RAB and our industry! Thanks to ProBuild Company, LLC for providing the delicious array of desserts at the meeting. Gotta love Bunny Cake! They were represented by Donna Strobel.

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GIVE AWAY’S Craig Richardt, Craig Swanson Builders, won the free dinner at The Loop compliments of Barb Flicker and the Post-Bulletin. Enjoy your dinner, Craig. Match Game John Eckerman did a great job hosting! Thank you to him and to all the panelists who were a lot of fun! The panelists were Kathy Einck, Al Mannino, Dan Forliti, Sam Peyton, Christy Buchan, and Kevin Worden. Also, congrats to our winner, Delbert Feenstra, and our runner up, David Kane.

REMODELERS

Members

2013 Remodelers Council 23 Builders - 57 Associates

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Pine One Hour Heating & Air Conditioning Premier Bank Rochester Prime Time Painting of Rochester, LLC ProBuild Company, LLC Quality Overhead Door Company, Inc. Radcliffe Homes & Remodeling Reynolds Design & Construction Ryan Windows & Siding, Inc. Seavey Builders, Inc. Dan Severson Builders, Inc. Struve’s Paint Superior Mechanical Synergy Products Tile Superstore & More TLC Surfaces Tonna Mechanical, Inc. Top Shop of Rochester, Inc. United Products Corporation Warners’ Stellian Appliance Co., Inc. Wells Fargo Home Mortgage

*Builder As of 4/16/13

a division of rochester area builders, inc.

June MEETING REMODELERS

* *

ABC Supply Company, Inc. Advanced Builders, LLC Alexander & Sons Builders Andersen Windows, Inc. Appliance Village Company Barrier Free Access, Inc. Scott Berberich Construction, LLC Beyond Kitchens, LLC Brandrup Builders Bricewood, LLC Bright Ideas Carpet One Cordes Construction Cornerstone Designs of Rochester, Inc. Cravath Homes, dba Accessibility Solutions Creative Hardwood Floors Culligan of Rochester & Kasson Curtin Drywall, Inc. Custom Alarm/Custom Communications, Inc. Custom Retaining Walls & Landscaping, Inc. Derby Construction, LLC Design Studio B DeWitz Home Builders, Inc. DreamMaker Bath & Kitchen Eckert Construction, Inc. Edge Homes & Construction Elias Construction, LLC Energy Products & Design, Inc. Expert Insulation, Inc. Ferguson Enterprises Gander Plumbing & Heating, Inc. Gerhards Goodin Company Haley Comfort/Fireside by Haley Heim Drywall Enterprises, Inc. Hentges Glass Company Hiller’s Flooring America HiMec at Home Home Federal Savings Bank Home Improvement Professionals, Inc. Innovative Surfaces, Inc. Integrity Custom Homes, Inc. Michael Jack, LLC JP’s Construction Remodeling & Repair, Inc. K&S Heating, A/C, Plumbing & Electrical King’s Flooring, LLC Kinzler Construction Services, Inc. Kitchen Concepts Kreofsky Building Supplies Kruger Electric, Inc. Kruse Lumber Larsen Industries, Inc. Larson Siding & Windows Markit Marvin Windows & Doors Master Builders, Inc. Merit Contracting, Inc. Larry Newman Drywall Walt Pappas Construction Pella Windows & Doors

Date: Time: Place:

Tuesday, June 16, 2012 12:00 PM Ferguson Enterprises

Program:

Showroom Visit & Networking

a division of rochester area builders, inc.

3210 Prow Ln NW

EXECUTIVE COMMITTEE Chairperson: Chris Ramsey, K&S Heating, A/C, Plumbing & Electrical Vice Chairperson: Sam Peyton, King’s Flooring Past Chairperson: Alex Nahvi, Ferguson Enterprises Members-at-Large: Danny Bendix, Pella Windows Carl Fugleberg, Prime Time Painting of Rochester, LLC Rick Hampel, Merit Contracting, Inc. Jerry Jensen, HiMEC at Home

SUMMER OUTING Date: Wednesday, July 17th, 6:00 P.M. – 9:00 P.M Place: Rochester Trolley Tour ride to Salem Glen Winery This year our Summer Outing will be a night at Salem Glen for wine tasting and networking. Trolley will depart the RAB parking lot at 6 pm sharp and return at 9 pm. Or, you can just meet us out at Salem Glen. Cost is $25 for trolley and wine tasting or $15 for wine tasting only. It will be a great evening of fun! Watch for registration information!

COMMUNITY PROJECT This year the Remodelers Council has decided to help Hiawatha Homes with a bathroom remodel. The project has a completion date of July 31, 2013. It will require some wall framing, electrical, plumbing, flat work, flooring, drywall, and painting. Basically almost everything our members do! If you would like to help and/or want more information contact Rebekah at the office or email rnielsen@rochesterareabuilders.com.

Www.RochesterAreaBuilders.com May/June 2013 | 11

Members

2013 Commercial Builders Council

106 Members as of 4/30/13 AB Systems, Inc. Marvin Windows & Accord Electric, Inc. Doors Associated Bank Mavo Systems, Inc. Alvin E. Benike, Inc. McGhie & Betts, Inc. The Blue Book McGough Construction of Building & MEC Construction, Inc. Construction J&M Consulting The Boldt Company MEP Associates Braun Intertec Merchants Bank Corporation Merit Contracting, Inc. Briese Iron Works, Inc. Minnesota Energy Brock White Company Resources C.O. Brown Agency Corporation Cambria Minnwest Bank Carpet One Nickelson Painting, Inc. Century Painting & Olmsted National Bank Decorating, LLC OnSite Chosen Valley Testing, Palmer Soderberg, Inc. Inc. People’s Energy Construction Cooperative Partnership, Inc. Pompeii Painting, Inc. Counselor Realty of Prehn Building Sales, Rochester, Inc. Inc. County Materials Premier Bank Rochester Corporation ProBuild Company, LLC CRW architecture + Reliable Contractors, design group, inc. Inc. Custom Alarm/Custom Rochester Area Communications, Inc. Appraisals, LLC Dunlap & Seeger Rochester Area Eastwood Bank Economic eci, llc Development, Inc. Elcor Construction Rochester Public Energy Panel Structures Utilities Energy Products & Rochester Ready Mix Design, Inc. Concrete Co Enventis Rochester Sign Service, Expert Insulation, Inc. Inc. Ferguson Enterprises Rochester Title & Friedrich Construction, Escrow Company, Inc. Inc. Ryan Electric of Gerhards Rochester, Inc. Goodin Company Schoeppner, Inc. Haley Comfort/FireSide Schwab, LLC by Haley Schwickert’s Tecta W.L. Hall Company America, LLC HGA Architects and Stantec Engineers Structural Design HDR Architecture Group, Inc. Heartman Insurance Superior Mechanical Hiller’s Flooring America Tamarack Materials of HiMec at Home Rochester, Inc. Home Federal Savings Think Mutual Bank Bank Tonna Mechanical, Inc. Hunt Electric TSP Architects & Corporation Engineers K&M Glass Company TW Construction K&S Heating, A/C, Solutions, LLC Plumbing & Electrical United Rentals Kane & Johnson The Urban Studio Architects, Inc. US Bank Key Builders, Inc. Valor Mechanical, Inc. Knutson Construction Veolia Environmental Services Service Komitt Concrete, Inc. Veit Companies Kraus-Anderson Vertical Limit Construction Construction Company Viking Automatic Kreofsky Building Sprinkler Company Supplies Viking Electric Supply Kruse Lumber Weis Builders, Inc. Kuntz Electric, Inc. Wells Fargo Bank Kwik Trip, Inc. Minnesota NA Leitzen Concrete Wendland Utz Products, Inc. Widseth, Smith, & Ed Lunn Construction, Nolting Inc. Yaggy Colby Associates

www.RochesterAreaBuilders.com 12 | May/June 2013

C OMMERCIAL C B OUNCIL

UILDERS

a division of Rochester Area Builders, Inc.

April MEETING DATE: Wednesday, June 5th, 2013 TIME: Registration & Networking at 7:00 A.M.

Program at 7:30 A.M.

PLACE: Ramada Hotel & Conference Center PROGRAM: Legislative Update SPEAKERS: Senator Carla Nelson of Rochester Senator Jeremy Miller of Winona Representative Greg Davids of Preston EXECUTIVE COMMITTEE Chairperson: Sue Hanson, Rochester Title & Escrow Company, Inc. Vice Chairperson: Chris Terry, Knutson Construction Services Past Chairperson: Rob Jones, Superior Mechanical Architects, Inc. Members-at-Large: John Hill, Schwab, LLC Shaun Knode, AB Systems, Inc. John Kuntz, Kuntz Electric, Inc. Levi Kaiser, A.E. Benike, Inc. Nick Leimer, Kraus-Anderson Construction Company

June Meeting The Commercial Builders Council will be holding a legislative recap at their June 5th meeting. The meeting will be held at the Ramada Hotel & Conference Center. Registrations starts at 7AM. The recap will feature Senators Carla Nelson and Jeremy Miller, and Representative Greg Davids. It will be facilitated by City Council President Randy Staver. If you’d like information about joining the Commercial Builders Council, please contact Rick Dold, at RDold@RochesterAreaBuilders. com.

Community Outreach This year the Commercial Builders Council continued to support the future of our industry by putting their scholarship into the Riverland Community College Foundation. Riverland Community College is Rochester Area Builders Student Chapter. Their 2 year (and award winning) Carpentry Program plays an important role in keeping talented individual in our industry. April Meeting

BAM Update: What We’re Doing For You: CWGQ Insurance TBG Insurance Gov. Relations Legal Action Education Online Forums Action Center Energy Payback Visit www.bamn.org and log-in to the Members Only site for more information on these BAM initiatives!

BUILDERS

ASSOCIATION OF MINNESOTA

T: 651.646.7959 T: 800.654.7783 W: www.bamn.org

Executive Committee President Chad Kompelein Builder VP Mike Paradise Associate VP Terry Curtis President Elect Rick Kot Treasurer George Cundy Secretary KC Chermak Past President Keith Kylmala NAHB Representative Kathe Ostrom

April 2013

�� BAM held its first Board Meeting of 2013 on March 20th and this year’s directors were officially inducted by Minnesota’s NAHB State Representative, Kathe Ostrom, of CN Ostrom & Son. Thank you to each BAM Director for stepping up and being a part of this year's association leadership. To see the board members from your local visit: w w w. b a m n . o r g / a b o u t / b a m - b o a r d - o f directors.

Government Relations Rick Kot, of RA Kot Homes, is BAM’s 2013 Government Relations Committee Chair and he gave a report on BAM’s work this year at the Minnesota Capitol. Halfway through the legislative session nearly 3,000 bills had been introduced. Several indemnification and risk transfer bills were introduced that are not favorable for the industry. BAM has been working to fix the problems.

Legal Action Fund One of the most important decisions made by the Board on March 20th was to approve - by unanimous voice vote - a Legal Action Fund assessment for 2013 in the amount of $35 per member. The legal battles that face the industry are immense and it is important to have the ability to fight to protect the industry.

Governor Dayton’s business-to-business sales tax proposal was dropped as a result of the improvement in the State’s financial situation, and a $750 million bonding bill has been proposed. Kot reported that BAM is attacking the fire sprinkler issue from every angle and has been aggressively working to find a solution to effectively remove a government mandate of fire sprinklers in singlefamily homes in Minnesota.

This year it’s especially important because of the sprinkler mandate currently in the Minnesota version of the International Residential Code with a 4,500 square foot trigger. Fighting the mandate through the state's established code adoption process has led us to the next step of forcing an administrative law judge hearing on the matter. BAM's Legal Action Fund has approved hiring Joe Springer, an attorney from Fredrikson & Byron. BAM has also retained the services of Karen Linner, BAM's former Director of Codes and Research, and Steve Orlowski, an expert from NAHB. The BAM Legal Action Fund has a near perfect record in the cases it has fought. Copies of those cases and other legal resources, such as white papers and form contracts, can be downloaded from the BAM members-only website at www.bamn.org/legislation. Because of the importance of a statewide legal fund, in a position to fight for the industry in a timely manner, the Legal Action Committee has discussed and intends to put together a long-term funding plan to present to the BAM Board of Directors later this year. As discussed at the Board meeting, possible options include funding out of a combination of dues, fundraisers, partial assessments, and/or a combination of all three. If you have any suggestions and or comments on how you would like to see it funded please let us know. Finally, we know this mid-year assessment puts a burden on budgeting cycles and want to have the 2014 proposal done this fall to alleviate the local association budget concerns for 2014.

Code Update The Department of Labor and Industry’s draft codes have not yet been published in the State Register. Publication in the Register will provide the statement of need and reasonable (SONAR) and is the necessary step to kick-start the administrative law judge (ALJ) hearing process. Mike Paradise, of Bigelow Homes, and member of the BAM Executive Committee is the chair of the BAM Fire Sprinkler ALJ Task Force. This group has been meeting regularly to discuss and vet testimony, witnesses, and arguments. BAM Insurance Program BAM is finalizing the contract with endorsed insurance program Corporate Four. Corporate Four has an outstanding risk management program, and with a finalized contract the program will be promoted widely throughout the state. BAM-PAC Remi Stone, BAM’s Executive Vice President, stated that PAC gives BAM credibility at the Capitol. Keith Kylmala, of Kylmala Truss, is BAM’s Past President and 2013 chair of the BAM-PAC Committee. The goal is to have $30,000 in the PAC by the 2014 election cycle. BAM-PAC will have a plan put together to generate those funds and will report to the BAM Board at the June or September meeting.

Www.RochesterAreaBuilders.com May/June 2013 | 13

BUILDERS

ASSOCIATION OF MINNESOTA

T: 651.646.7959 T: 800.654.7783 W: www.bamn.org

www.RochesterAreaBuilders.com 14 | May/June 2013

May 2013

�� Are you saving money with your Builders Association of Minnesota membership? Membership delivers value for your business and bottom line, and it's a 3-for-1 deal giving your company 3 times the benefits. Check out the perks and make sure you’re getting the most value from your membership. Reasons it’s good to be a member are also reasons to become a member. We’re just sayin’. Check out these resources and more at www.bamn.org/membership. Drum roll please.... Number 10. Legislative Wins Every year the government tries to make changes to the way you do business. That's where we come in. BAM is at the State Capitol and has been for over 35 years. Together we are 3,000 member businesses, which means our voice at the Capitol is Strong. We've successfully fought countless harmful bills over the years. BAM members meet year round to decide what to fight and what to promote for business and the industry. Number 9. Code Wins Every three to six years the government gives us a new building code. Thankfully, BAM combs through the proposed codes and fights for safe, durable, and affordable housing. Your BAM membership buys you a seat at the codes table. We're there fighting for you and we're good too. Number 8. Legal Protection and Legal Wins "You can't handle the truth!" (Actually we know you can.) Court decisions impact your business, and just one can radically change your insurance rates or flip the home warranty around. Enter BAM. Your membership means we've got your back. BAM has a legal fund to fight member battles that affect the whole state. Members make decisions about which cases to take on, and we have a darn good track record. Number 7. Discounts Cha ching! A cool part of BAM membership is the discounts on stuff you use! Members have access to discounts on fuel at Holiday and office supplies at Office Depot as well as a 22% discount on your Verizon plan. You can take that savings straight to the bank! We have a rebate program that gives you money back and we haven't even talked about the perks at your local and national associations! These awesome savings can more than pay for your annual membership. Sold! Number 6. Quality, Affordable Insurance Are you covered? The residential construction industry requires special insurance coverage. As a BAM member you have access to high quality, discounted coverage from The Builders Group for workers’ comp and from Corporate Four for general liability. Number 5. Contracts Don't waste your hard earned money and your precious time creating your company contracts. BAM has it taken care of! We have six quality contract templates available for download for members-only. Drafted by attorneys that specialize in residential construction, and updated when the law changes, these contracts are available in word and pdf so you can download and edit the contracts right on your computer. These contracts are worth over

$10,000. That'll pay for your membership for years to come! Number 4. Code Guides When the government puts out a new code, we get the language but they don't tell you HOW to build to it. BAM does. For members only we put together detailed code guides - written by experts - so you know exactly how to build to the new code. This is one of our most popular resources, downloaded the most by members. We’ve also been known to create a few alternate methods. A new set of codes will be out in 2014, so look for the new code guides. Number 3. Information, the 411, the Skinny In addition to discounts, having your back, fighting for you, and providing tools and resources you need to do your job well (wow that's a lot!) BAM membership also means information! We make sure you're in the know! Giving you the deets on what's happening in the industry, the economy, at the Capitol, and right here at BAM. We're tweeting, blogging, posting on facebook, emailing, writing white papers, and more. Like us on Facebook - Follow us on Twitter - Sign up to receive our Blog – and stay in the know! Number 2. Get Some Action Membership means being in on it. You get: Influence. Make decisions about real issues that affect your business including laws and codes that govern the industry. BAM has several working committees on which members can serve. These committees make important decisions and we want YOU! Leadership Training. In committees, on the BAM Board and the Executive Committee you get leadership training. Making decisions for 3,000 member businesses takes leadership. Interested? Political education. At the Capitol it's all about politics, and this is not a drill - it's the real deal. It's messy, and awesome, and one of the coolest parts of being an American. The question is, "What can you do for your industry?" Networking. Each year BAM holds events drawing statewide attendance. Our Day at the Capitol (free for members) during session allows you to talk with your legislators and fellow members. All BAM events give you the chance to meet some new peeps, learn something new, and grow your business - all possible with BAM membership. And the NUMBER ONE REASON to join the Builders Association of Minnesota is UNITY The residential construction industry is a huge economic driver for the State economy. We contribute $1.3 billion annually in income for Minnesota residents and more than 19,000 jobs. BAM - as the state association - is a collaboration of all 13 local associations across our great state. We exist because we know we're stronger together. Membership means being the voice of the industry at the State Capitol, the regulatory agencies, and in the courts. And membership means banding together as a collective to work for a better industry, a better economy, and a better state.

PUBLIC WORKS DEPARTMENT NEWS Contributed by: Megan Duffey, Storm Water Educator, Rochester Public Works Department Rochester Public Works Department, 201 4th Street SE, Room 108, Rochester, MN 55904, 507-328-2440

��

After a long winter and a confusing spring, area trees are turning our skylines green again. These trees add beauty to our community and increase the real estate value of our property. They provide shade that helps us conserve energy and keep Rochester cooler. Plus, they provide homes for wildlife, absorb noise, and reduce air pollution.

Importantly, trees are also good storm water managers. Their roots hold soil to prevent erosion and roots promote the inﬁltration of storm water to help recharge our drinking water supply. Roots also take up some storm water, reducing the amount of runoff reaching impervious surfaces, where it collects pollution. The leaves and bark on trees catch rain from the ﬁrst quarter-inch of each rainfall event, intercepting between 500 and 760 gallons per year, further reducing the volume of runoff. Trees also slow the velocity of rain before it reaches the ground, reducing runoff rates and erosion potential. Additionally, a mature tree can transpire (“sweat”) 100 gallons per day. Water thus taken up from the soil increases water storage potential in the soil and lengthens the amount of time before rainfall becomes runoff, again, reducing runoff volumes and rates. Trees also improve water quality by absorbing nutrients such as nitrogen and remove or break down metals, pesticides, and solvents. Clearly, planting trees helps offset urban growth. Developers, builders, and landscapers can promote a cleaner environment by designing with trees in mind. Where existing trees can be saved, do so. Where none exist, consider planting trees in boulevards or neighborhood open spaces. If you want to learn more about designing neighborhoods while conserving woodlands, how to protect trees during construction, or how to properly select and plant boulevard trees, free information resources are available from the City Forester (507-328-2515 or jryg@ci.rochester.mn.us). Www.RochesterAreaBuilders.com May/June 2013 | 15

Rochester Building Permits New Residential Single Family Dwelling

MARCH

VALUATION

APRIL

VALUATION

6,716,241

9,046,592

March/April 2013

Single Family Homes 2004

January

2005 2006

2007

2008

2009

2010

2011 2012

2013

Townhome Dwelling

February

Two-Family Houses

Multi-Family Bldgs

March

Manufactured Home

April

110

TOTAL

269

181

165

120

102

May

106

June

109

July

August

September

294,745

October

Existing Residential Deck Addition

10,400

39,350

Room Addition

569,729

Porch Additions

15,925

Other Additions

Basement Finish Alterations Multi-Family Addition Multi-Family Alterations

520,465

351,684

341,383

November

December

50,000

40,095

Assembly (Church)

Assembly (General)

Assembly (Restaurant/Bar)

198,000

Business

300,000

Education

Factory/Industrial

Institution

Mercantile

Miscelaneous

Utility (General)

Residential (Care/Hotel/Motel)

Storage (General)

56,000

Storage (Warehouse)

Existing Commercial 0

3,669,000

6,076,573

5,633,723

Structural Shell

“White Box”

2,000

Interior Demolition Only

126,806

39,775

Other Phased Permits

Business Signs

65,047

175,223

Advertising Sign

Footings & Foundations

Demolition

Alterations

Other Construction

www.RochesterAreaBuilders.com 16 | May/June 2013

962

702

506

417

302

274

200

191

299

*total may differ as permits may have been voided.

New Commercial

Addition

TOTAL

Year To Date Statistics 2013 VALUATION

NO.

2012 VALUATION

Building Permits Issued to Date

576

55,353,067

649

112,491,401

Single Family Dwelling

102

23,271,991

18,450,337

Multi-Family Buildings Total Units: 0

4,678,863

2,077

19,001,370

2,192

23,799,262

649

10,630,028

684

10,190,500

23,350

16,025

Mechanical

543

4,383,007

562

7,476,972

Gas Piping

141

120,700

166

207,577

Fireplace

117

283,801

101

226,308

Trade Permits Issued to Date Electrical Electrical (Temp. Service)

Hydronic System Plumbing

Total Permits YTD

736,592

1,960,347

508

2,823,892

543

3,721,553

2,653

74,354,437

2,841

136,290,663

Information and downloads available at Rochester Building Safety Department’s Website: http://www.rochestermn.gov/departments/bldgsafety/reports/building/index.asp

Byron

Building Permits MARCH

Year of 2013

New Residential Single Family Detached

NUMBER

VALUATION

170,000

Rochester Real Estate Monthly Housing Data March/April 2013 Monthly Housing Data

APRIL New Residential Single Family Detached

NUMBER

VALUATION

150,000

200,000

Existing Residential Alterations

Pine Island

Building Permits MARCH

Year of 2013

Existing Residential

NUMBER

VALUATION

Basement Finish

12,000

Alterations

5,000

Single Family Dwelling

250,000

Existing Residential

NUMBER

VALUATION

Deck Addition

9,800

Bedroom Finish

2,000

Alterations

36,000

Reroof

10,000

Furnace/AC

10,190

Water Heater

965

325,000

APRIL New Residential

Existing Commercial Additions

New Listings Active Listings Year to Date Pending Listing Sold Listings Sold Listings Year to Date Median Sales Price (SOLD) SOLD Days on Market (DOM) Avg. Year to Date (DOM) Monthly Housing Data

New Listings Active Listings Year to Date Pending Listing Sold Listings Sold Listings Year to Date Median Sales Price (SOLD) SOLD Days on Market (DOM) Avg. Year to Date (DOM)

March 2013

March 2012

% Change

318 1192

365 1388

-12.9% -14.1%

210 135 331

192 115 309

9.4% 17.4% 7.1%

153,000

145,000

6.0%

148 -33.78%

109

139 -21.58%

April 2013

April 2012

% Change

257 1450

252 1641

2.0% -11.6%

250 163 504

257 163 473

-2.7% 0.0% 6.6%

155,000

148,000

5.0%

130 -33.85%

102

136 -25.00%

Information and downloads available at South East Minnesota Association of REALTORSâ&#x20AC;&#x2122; Website: http://semnrealtors.org/general/stats_market-trends.html

Information Provided By:

Www.RochesterAreaBuilders.com May/June 2013 | 17

Membership Information

Membership Renewals

as of 3/31/13

One Year

Zumbro Haven, LLC

2012

Two to Four Years

While we love all our members, we’d like to take a moment to recognize those few who have been with us from the beginning. The following companies have been members of RAB for more than 50 years! That sustained dedication to our industry is truly worthy of praise, and we can’t thank you enough for your continued membership!

Alexander & Sons Builders Briese Iron Works, Inc. Holt Title Guaranty Company, Inc. Home Federal Savings Bank Kruse Lumber Leitzen Concrete Products, Inc. Minnesota Energy Resources Corporation Palmer Soderberg, Inc. Pendle Hansen Bagne Insurance Post-Bulletin Company, LLC ProBuild Company, LLC Rochester Ready Mix Concrete Co US Bank Weis Builders, Inc. Wells Fargo Bank Minnesota NA www.RochesterAreaBuilders.com 18 | May/June 2013

Advanced Building Center, Inc. Solar Connection, Inc. Steve Gentry Construction, LLC Burdick Builders, Inc. Stier Construction, Inc. Coordinated Business Systems, Ltd. Van Haren ICF

2011 2011 2011 2010 2010 2009 2009

Five to Nine Years

First Choice Homes, LLC HDR Architecture Maas Companies, Inc. Kirkland Enterprises, LLC RCON Homes, Inc. Bruce Bucknell Construction, Inc. Dahl Home Builders, Inc. Majestic Homes, Inc. North Central States Regional Council Anderson Construction Schwickert’s Tecta America, LLC

2008 2008 2008 2007 2007 2006 2006 2006 2006 2005 2004

Ten to 19 Years

Ames Construction, Inc. HiMEC at Home Pompeii Painting, Inc. KTTC/KXLT-TV Rochester Concrete Products, LLC Greenway Cooperative Service Company L&L Cabinets

2001 2001 2001 2000 2000 1998 1995

20 to 24 Years

Sterling State Bank Countryside Builders, LLC Heartwood Homes of Rochester, Inc. M.H. Dutton Construction, LLC

1993 1989 1989 1989

25 Years & More

Tonna Mechanical, Inc. People’s Energy Cooperative Woodruff Company

1988 1987 1964

Membership Information Membership Renewals

as of 4/30/13

One Year

All-Star Basements Enventis The Design Connection Vollara Global/DPS

2012 2012 2012 2012

Two to Four Years

Elias Construction, LLC Lacina Siding & Windows, Inc. MEP Associates Rochester Asphalt, Inc. Beckley’s Ofﬁce Products

2011 2011 2010 2010 2009

NEW APPLICANTS: The ﬁrms listed below have applied for membership in the Rochester Area Builders. Any member who objects to admission of any applicant shall notify the RAB Board of Directors in writing of the objection before the next Board of Directors meeting

MILLER AND SONS CONSTRUCTION, INC. Rochester, MN Contact: Brandon Miller Phone: 507-216-1943 Remodeler Builder Member Sponsored by: None Listed

MEMBERSHIPS PENDING: NONE

Five to Nine Years

Data-Smart Computers, Inc. Crescent Electric Supply Company Legends Concrete, Inc. Dolan’s Landscape Center, Inc. Habitat for Humanity - Winona/ Fillmore County dba Habitat ReStore Michael Jack, LLC Ryan Electric, Inc. Al Barker Custom Homes, Inc. Excel Homes Scott Berberich Construction, LLC Ten to 19 Years

First General Services of SE MN Innovative Surfaces, Inc. Expert Insulation, Inc. Habitat for Humanity - Rochester Area Wright Homes, Inc. American Waterworks HGA Architects and Engineers Larsen Industries, Inc. TSP Architects & Engineers

2003 2002 2001 2000 2000 1999 1997 1997 1997

20 to 24 Years

Hentges Glass Company Charter Communications/Media

1991 1990

25 Years & More

Thomas Tool & Supply Barrier Free Access, Inc. Brandrup Builders Northern Lights & Furnishings JE DUNN CONSTRUCTION 9855 West 78th Street Eden Prairie, MN 55344 Contact: Mike Larson Phone: 952-830-9000 General Contractor Builder Member Sponsored by: David Kane – Kane & Johnson Architects, Inc. PRICE FINANCIAL SERVICES, INC. 325 Alliance Place NE Rochester, MN 55906 Contact: Debbie Price Phone: 507-319-3464 Residential Builder Builder Member Sponsored by: Kathy Einck – Maplewood Homes, Inc.

MEMBERSHIP TOTAL: 456 RETENTION RATE: 90.7%

2008 2007 2007 2006 2006 2006 2006 2004 2004 2004

1987 1984 1976 1976

NORTH STAR STONE & MASONRY Rochester, MN Contact: Tony Alstat Phone: 507-252-1129 Brick, Stone, Masonry, Retaining Walls, Hardscapes Associate Member Sponsored by: Christy Buchan – Energy Products & Design, Inc.

As of 4/30/13

WE WELCOME THE FOLLOWING NEW MEMBERS IN APRIL & MAY: ALPHA VIDEO & AUDIO 7711 Computer Avenue Edina, MN 55435 Contact: Jeanie Wohlers Phone: 952-896-9898 A/V Integration Associate Member Sponsored by: None Listed ALTRA FEDERAL CREDIT UNION 123 16th Avenue SW, Suite 500 Rochester, MN 55902 Contact: Tracey Beyer Phone: 507-258-4500 Credit Union Associate Member Sponsored by: None Listed BY DESIGN BUILDERS 103 Second Avenue SW Kasson, MN 55944 Contact: Darek Davidson Phone: 507-634-4848 Remodeler Builder Member Sponsored by: Wayne Claire - WC Construction

RANGE CONSTRUCTION, LLC 4452 Mayo Woodlands Road SW Rochester, MN 55902 Contact: Jon Range Phone: 507-261-6241 Residential Builder Builder Member Sponsored by: Jim Gander – Superior Mechanical STEWARTVILLE ECONOMIC DEVELOPMENT AUTHORITY 105 East 1st Street Stewartville, MN 55976 Contact: William Schimmel, Jr. Phone: 507-533-4745 Government Agency Contributory Member Sponsored by: Charlie Brown – PC Applications Consultant

GIFT BOOK PLUS 5191 Ridgeway Rd NW Rochester, MN 55901 Contact: Chuck Payette Phone: 866-805-4285 Screen Printing, Embroidery, Banners/Signs Associate Member Sponsored by: Bob Vogt – Olmsted Co Journal GULF EAGLE SUPPLY 4519 Highway 63 North Rochester, MN 55906 Contact: Brad Presley Phone: 507-252-8765 Rooﬁng Supplies Associate Member Sponsored by: Kerk Johnson - Schwickerts HG ELECTRIC, LLC 2755 Brookwood Court SE Plainview, MN 55934 Contact: Don Hameister Phone: 507-272-9808 Electrical Contractor Associate Member Sponsored by: Kevin Reckinger – Bricewood, LLC

WADDELL & REED 2765 Commerce Drive NW Rochester, MN 55901 Contact: Scott Sorenson Phone: 507-282-5323 Financial Advisors Associate Member Sponsored by: Jean DeWitz – DeWitz Home Builders, Inc.

XCEL ENERGY GAS & ELECTRIC 1700 East County Road E White Bear Lake, MN 55110 Contact: Juan Galloway Phone: 651-779-3519 Utility: Gas & Electric Associate Member Sponsored by: None Listed

WEST BANK 3147 Superior Drive NW, Suite 100 Rochester, MN 55901 Contact: Mike Schletty Phone: 507-252-2970 Mortgages Associate Member Sponsored by: David Kane – Kane & Johnson Architects, Inc. Www.RochesterAreaBuilders.com May/June 2013 | 19

Interest Rates Yield No Recession Elliot Eisenberg, Ph.D.

While Q1 GDP growth was 2.5%, it will probably be the best performing quarter of the year. Add to that continued contractionary fiscal policy in the form of both the sequester and the Fiscal Cliﬀ deal, continued weak employment growth, declining exports and a lackluster manufacturing sector and suddenly recessionary fears are palpable. After all, a recession will inevitably come and it has been almost six years since the start of the last one. Aren’t we kind of due? Turns out, the answer is no, no and no! If history is any guide - and it’s a very good one in this case - there is no recession in sight. Since 1970 there have been seven recessions, and interestingly enough, each one has been preceded by an inversion in the yield curve, a situation where short term interest rates are higher than long term interest rates. Rarely is there an indicator that is seven for seven over a period of 44 very dissimilar years. The last time the yield curve inverted and a recession did not follow was in 1966-67, and though there wasn’t a recession, the economy slowed substantially with GDP growth of less than 1% for 21 straight months. Normally, interest rates are higher the longer the period of time money is lent. For example, today a one-year Treasury bill yields 0.15%/year, a 10-year Treasury note pays 2%/year and a 30-year Treasury bond pays 3.125%/year. After all, the longer you lend someone money, in this case the government, the more interest rate risk, inﬂation risk and credit risk you incur, and investors must be compensated for these risks.

However, from time to time this normal relationship breaks down. One explanation for this phenomenon is that by raising short-term rates (to slowdown an overheating economy with rising inflation), the Federal Reserve discourages bank lending, as banks generally borrow short and lend long. And when the yield curve is inverted, banks have much-reduced profit margins, and this reduction in lending causes a recession. A second explanation for an inverted yield curve is that investors expect future short-term interest rates to decline because they expect a recession. As a result, investors expect the central bank to lower interest rates to counteract the expected recession. And when this happens, investors plow into low-yielding longbonds to lock in yields they expect will be still lower in the future. Regardless of the reason, from time-to-time the yield curve inverts. Today, the difference between ten-year Treasury notes and one-year Treasury bills is 1.85%. Assuming the Federal Reserve felt compelled to start raising short-term interest rates soon (and let’s be clear, it does not), it would take, based on history, about two years before yields on one-year Treasury bills were higher than yields on 10-year Treasury notes. And again using history as our guide, it generally takes another 12 months after the yield curve inverts before a recession begins. This suggests that we have at minimum three years before the next recession. Of course, given the expansionary state of monetary policy and the laser-like focus of the Fed in preventing a recession, my bet is we have quite some time before the recession of 2018!

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.