Foundations - April 2014 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 + All Craft Exteriors, LLC + 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. + Amirco, LLC + 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 + 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 + Brooks Excavating Company, Inc. + C.O. Brown Agency + Bruce Bucknell Construction, Inc. + Budget Blinds + Building Products, Inc. + Burdick Builders, Inc. + By Design Builders + Byrne Electric, Inc. + Cachiaras Building & Remodeling + Cambria + Carpet One + CarpetsPlus of Rochester + Castlewood Homes, Inc. + Charter Communications/Media + Chladek 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. + Clarey's Safety Equipment + Clayton Thomas Blinds of Rochester + 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 + 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. + DeCook Builders, LLC + 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. + Donlar Construction Company + DoubleTree by Hilton - Mayo Clinic Area + DreamMaker Bath & Kitchen + Dunham Associates, Inc. + Dunlap & Seeger + JE Dunn Construction + Dura-Oak Kitchen Make Overs + 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 + GAF + Gander Plumbing & Heating, Inc. + Dale Gathje Construction, Inc. + Steve Gentry Construction, LLC + Gerhards + Gift Book Plus + Robert Gill Builder, Inc. + Goodin Company + Great River Overhead Door + Green Lawncare Irrigation & Service Co. + Greenway Cooperative Service Company + Gregor Builders, Inc. + GulfEagle Supply + Habitat for Humanity - Rochester Area + Habitat for Humanity - Winona/Fillmore County dba Habitat ReStore + Haley Comfort Systems (Authorized FireSide Dealer) + 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. + 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. + Institute for Environmental Assessment + Insty Prints + IntegraSpec Central/Jeff Mueller Construction + Michael Jack, LLC + JNS Builders, LLC + J.P. Johnson Custom Builders, Inc. + JP's Construction Remodeling & Repair, Inc. + K&M Glass Company + K&S Heating, A/C, Plumbing & Electrical + 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 + tion Company + Kreofsky Building Supplies + Kruger Electric, Inc. + Kruse Lumber + Koball's Poured Walls, Inc. + Kraus-Anderson ConstrucKTTC/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 + Legends Concrete, Inc. + Leitzen Concrete Products, Inc. + Leyendecker Homebuilders, LLC + Lodermeier's, Inc. + Lowe's Home Improvement + 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 - a Division of WSB & Associates, 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 + Merit Contracting, Inc. + Michael's Custom Cabinets, Inc. + Mid American Financial Group + Midwest LeafGuard of Rochester, Inc. + Midwest Walls, LLC + Miller & Sons Construction, Inc. + Minnesota Energy Resources Corporation + Minnwest Bank + MLT Group + Morris Concrete, Inc. + Mosquito Squad of SE MN + Larry Newman Drywall + Nickelson Painting, Inc. + North Central States Regional Council + North Star Stone & Masonry + Northern Lights & Furnishings + Nuss Truck & Equipment + O'Connor Homes, Inc. + Ohly Law Office + Olmsted County Planning Dept, Insp. Div. + Olmsted County Public Health + Olmsted National Bank + J.B. O'Meara Company + nies + Otis Custom Homes, LLC + Overhead Door Co. of Olmsted On Site CompaCounty + Owner's Plumbing, Inc. + Oxi-Fresh Carpet Cleaning + Paape Energy Services + Pahl & Kaye, Inc. + Palmer Soderberg, Inc. + Walt Pappas struction + Paramark Corporation + Payne Company + PC C o n cations Consultants, Inc. + Pearson Builders, Inc. + Pebble AppliCreek/Western Walls + Pella Windows & Doors + Pendle Hansen Bagne Insurance + Penz Custom Homes, Inc. + People's Energy Cooperative + G. Pestka Appraisals + Peterson Well Drilling, Inc. + Pine Island Lumber + Pompeii Painting, Inc. + Post-Bulletin Company, LLC + Powers Ventures + Prehn Building Sales, Inc. + Premier Bank Rochester + Premier Builders of Rochester, Inc. + Price Financial Services, Inc. + Prime Time Painting of Rochester, LLC + PrimeLending + Priority 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 + R. Thomas Consulting, LLC + Radcliffe Homes & Remodeling + Range Construction, LLC + RCON Homes, Inc. + RCTC Carpentry Program + RE/MAX of Rochester + Region Millworks, Inc. + David Reiland Building Contractor, LLC + Reliable Contractors, Inc. + Reynolds Design and Construction + Rochester Area Appraisals, LLC + Rochester Area Chamber of Commerce + Rochester Area Econ. Development, Inc. tion + Rochester Asphalt, Inc. + Rochester Building Safety Department + Rochester + Rochester Area FoundaConcrete Products, LLC + Rochester International Event Center + Rochester Plumbing & Heating/Roto Rooter + Rochester Public Utilities + Rochester Public Works + Rochester Ready Mix Concrete Co + 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. + S&S Overhead Door, Inc. + Sargent's Landscape Nursery, Inc. + Schad Tracy Signs, Inc. + Schmidt Goodman Office Products + Schoeppner, Inc. + Schumann Granahan Hesse & Wilson, Ltd. + Schwickert's Tecta America, LLC + Seavey Builders, Inc. + Dan Severson Builders, Inc. + Shanahan Building & Remodeling, LLC + Sherwin Williams Company + Shingobee Builders, ing + Smart Home Innovations & Engineering, Inc. + Inc. + Sign Here, Inc. + Simonson Builders, LLC + SL ContractSmith Schafer & Associates, Ltd. + Solar Connection, Inc. + Somerby Golf Community + Space Concepts, Inc. + ing, Inc. + Spring Valley Overhead Door, Inc. + Spahn & Rose Lumber Company + Greg Speedling ContractStadsvold's Lawn & Landscape + Stantec + Steel Constructors, Inc. + Sterling State Bank + Stevens Heating, Inc. + Stewartville Economic Development Authority + StoneBridge Builders + Structural Design Group, Inc. + Struve's Paint and Decorating + Robert G. Suk Law Office, PA + Summit Custom Homes, LLC + Summit Fire Protection Company + Superior Mechanical + Craig Swanson Builders, Inc. + Swenke Ims Contracting, LLC + Kenny Sylvester Construction, LLC + Synergy Products + Tag's Drywall, Inc. + Tamarack Materials of Rochester, Inc. + TDS Metrocom + Thermo-Tech Windows + Thiemann Construction, Inc. + Thimijan Custom Homes, LLC + Think Mutual Bank + Thomas Tool & Supply + Thompson's Garage Door and Openers + Thrivent Financial - Rochester Group + Tile Superstore & More + TLC Surfaces + Tonna Mechanical, Inc. + Top Shop of Rochester, Inc. + Total Electric of Rochester, Inc. + Townsquare Media Rochester + 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. + United Heating & Cooling + United Products/Allied Building Products Corp. + United Rentals + The Urban Studio, LLC + US Bank + Valor Mechanical, Inc. + Val-U-Blinds + Van Haren ICF + Vector Windows + Veit Companies + Vennehjem Building Corporation + Vertical Limit Construction + Viking Automatic Sprinkler Company + Viking Electric Supply + Vision Homes & Remodeling, LLC + Vollara Global/DPS + WA Insurance + Waddell & Reed + Warners' Stellian Appliance Co., Inc. + Waste Management + Weis Builders, Inc. + Greg Wellik Construction + Wells a publication of Fargo Bank Minnesota NA + Wells Fargo Home Mortgage + Wendland Utz + Werner Electric Supply + West Bank + Jim Whiting Nursery & Garden Center, Inc. + WHKS & Company + Widseth Smith Nolting + Wildwood Sports Bar and Grill + Women Communications, LLC + Woodruff Company + Wright Homes, Inc. + WT Lighting

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

MORE SAVINGS FOR YOUR SUCCESS.

2014 GMC SAVANA CARGO VAN

2014 CHEVROLET SILVERADO 2500HD

2014 BUICK LACROSSE WITH eASSIST

As the exclusive automotive manufacturer of the National Association of Home Builders (NAHB), we’re pleased to extend association members a private offer1 of up to $500 toward the purchase or lease of most new GM vehicles. NAHB members who are business owners can now qualify for up to $1,000 and also add on incentives from the National Fleet Purchase Program2 and Business Choice3 to get the best value on vehicles that run your business. To get this offer, just visit your local dealer, choose an eligible GM vehicle, and present your NAHB proof of membership form. For private offer details, visit nahb.org/gm.

Private offer amount varies by model. $500 offer for retail deliveries and up to $1,000 offer for ﬂeet deliveries. Valid toward the purchase or lease of eligible 2013, 2014, and 2015 modelyear vehicles. Customer must take delivery by 1/2/15. Not compatible with other private offers. Not valid on prior purchases. Compatible with many current incentives. Incentives are subject to change without notice. Excludes Buick Regal (2014); Chevrolet Corvette (2014), Sonic, Spark, SS, Volt; all Cadillac models. FAN number required. See dealer for complete details. 2 Offer eligible for non-CAP customers only through 12/31/14. See dealer for details. 3 To qualify, vehicle must be used in the day-to-day operation of the business and not solely for transportation purposes. Must provide proof of business. For complete program requirements, including information regarding offers, vehicles, equipment, options, warranties, and ordering, consult your dealer or visit gmbusinesschoice.com. Take delivery by 9/30/14. ©2014 General Motors. All rights reserved. 1

Save the Date: April 19-26, 2014

During this week, volunteers will join together to pick up litter in Rochester. You can help! Here’s how: • • • • •

Save the date for 2014! Select an area of Rochester for collecting litter Pick a date for collecting litter Recruit family, friends, neighbors, or co-workers Register your group, location, and date online

www.RochesterAreaBuilders.com 2 | April 2014

• Pick up your collection instructions and trash bags • Collect litter at your site on selected date • Report your results and celebrate your good deed!

visit: www.RNeighbors.org

News from The President March 21, 2014

Does your business have all of the qualified workers it needs? Are you sure that you’ll be able to hire up with skilled professionals to accommodate future demand? At a recent Board meeting, several Directors- representing a variety of trades and businesses- answered these questions with a resounding “No!” Put simply, many workers left the trades during the economic downturn of 2008-2013, and most of us are still trying to replace those positions. Your Rochester Area Builders association is very concerned about this situation, and is exploring creative ways to get more young people interested in construction-related careers.

According to one source, the average carpenter’s salary is $46,000 per year. Carpentry schools are typically two-year programs, completed at a much lower average cost than most four-year colleges. Best of all, students get to earn while they learn! Although no one educational option is right for every young adult, your association will be working hard to get the word out that good jobs, at affordable educational prices (read: no massive student loans!), are available in the trades- in our community, right now! Plumbing, framing, HVAC, electrical work, and many other positions offer a wide variety of career choices for different skill sets. Once established in the trades, employees have many career directions from which to choose: business ownership, teaching and instruction, sales, management, or even working for your local builder’s association! $46,000 per year starting wages earned after a shorter period of specialized schooling is a pretty decent return on investment! The staff and Board of Rochester Area Builders is active with the local Career and Technical Education Center (CTEC), job shadowing programs, school speakers, and other trades career initiatives. We need your help, as active members of RAB, to get the word out about all of the great career opportunities available in our region! The new construction projects, remodels, and rehabs in our community aren’t going to build themselves, but they should be built by people in our area who live and spend their money here. Help us by telling your own friends, family, and personal networks about the great career opportunities available in the trades, and consider working with us at RAB more closely in our efforts to spread this message. Trades jobs can’t be outsourced overseas, but they do need to be ﬁlled by trained, qualiﬁed professionals. We need the workers, and adults starting out or changing careers desperately need the jobs. Join us in building the trades workforce that will build the future of Rochester, and all of Southeast Minnesota! Have a great month, and watch these pages for more trades career education information in the months ahead!

Kevin Worden 2014 RAB President

Thank You! February Networking Night

Thank you to Kreofsky Building Supply for hosting the February Networking Night at your new Rochester location. Many members braved the cold and icy roads to enjoy the networking and great food and beverages.

Index NAHB Member Discounts ........................ 2 Litter Bit Better ......................................... 2 News from the President ......................... 3 Thank Yous ............................................... 3 Studs, Struts & Stilettos .......................... 4 March Networking Night .......................... 5 Spring Showcase Entries ......................... 6 Association Scrapbook ............................ 7 Public Works Dept. News ......................8-9 BAM Update ............................................ 10 Committee Updates ...............................11 Remodel It Right News ..........................12 Commercial Builders Council ................13 Rochester Permits .................................. 14 Byron/Pine Island Permits .....................15 Real Estate Data ....................................15 Elliot Eisenberg Article ........................... 16 Membership Information ....................... 17 NAHB Member Discounts ......................18 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 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 Phone: 507-282-7698 Fax: 507-282-6351 E-mail: RAB@RochesterAreaBuilders.com

GIVE AWAY’S Tracy Beyer, Altra Federal Credit Union, won a $50 Do it Best gift card. Craig Richardt, Western Walls, won a new KBS jacket. Mike Paradise, Bigelow Homes and Sandy Christunas, Bright Ideas each won a Green Mill gift card. Thanks KBS for the great prizes! Ken Granle, HDR Architecture was the lucky winner of the free dinner at The Loop compliments of Barb Flicker and the Post-Bulletin. Enjoy your dinner, Ken.

Www.RochesterAreaBuilders.com April 2014 | 3

�� construction fashion expose

��April 24, 2014 �� 7:00 PM �� VIP Tickets ��Advanced ��at the Door ��Habitat for Humanity �� RochesterAreaBuilders.com�� 507-282-7698�

www.RochesterAreaBuilders.com 4 | April 2014

Join us at the March

General Membership Meeting Tuesday, March 25th, 5:00 - 7:00 pm at the Ramada Hotel & Conference Center 1517 16th St SW Hours: 5pm - 7pm Program - Product Showcase Presented by Members of Producers Council Midwest

President

Kevin Worden, Rochester Area Habitat for Humanity

Vice President

John Eckerman, The Boldt Company

Secretary

Lindsey Rippentrop, Olmsted National Bank

Treasurer

Carla Kilpatrick, Home Federal Savings Bank

Past President

Jean DeWitz, DeWitz Home Builders, Inc.

Directors

Karen Blissenbach, Design Studio B Christy Buchan, Energy Products & Design, Inc. Delbert Feenstra, Knutson Construction Services Rob Jones, Superior Mechanical Levi Kaiser, Alvin E. Benike, Inc. Bruce Laufenburger, First General Services of SE MN Sam Peyton, King’s Flooring, LLC Brian Shehan, Weis Builders, Inc.

Builders Exchange Council Representatives

J.J. Webster, Kraus-Anderson Construction Company, Chair Jake Schleusner, Merit Contracting, Inc., Vice Chair Tony Wintheiser, Hentges Glass, Past Chair

Commercial Builders Council

Chris Terry, Knutson Construction Services, Chair Nick Leimer, Kraus-Anderson Construction Company, Vice Chair

Development Council Chair

John Sipple, Rochester Area Appraisals, LLC

Remodelers Council Chair Sam Peyton, King’s Flooring, LLC

National Life Directors

Come browse our member/exhibitor product displays while enjoying complimentary hors d’oeuvres and refreshments at the Producers Council Midwest Construction Products Showcase! PCM promotes construction products and services by presenting Construction Products Showcases in Minnesota, North Dakota, South Dakota and Western Wisconsin. Architects, speciﬁers, interior designers, consultants, contractors, building owners, and public ofﬁcials are invited to look at new products and speak to representatives during these shows. Sponsored By:

Joe Weis, Weis Builders, Inc.

National Directors

Steve Buss, Cornerstone Builders & Real Estate, Inc. Mike Coats, MEC Construction, Inc. David Kane, Kane & Johnson Architects, Inc., Rep. Rory Lenton, Minnesota Energy Resources Corp.

State Directors

Jim Gander, Superior Mechanical John McGuine, Schoeppner, Inc., Rep. Mike Paradise, Bigelow Homes David Pederson, Wendland Utz Dan Severson, Dan Severson Builders, Inc.

Executive Director

John Eischen JEischen@RochesterAreaBuilders.com

Staff

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

Matt Limoges MatthewL@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

Www.RochesterAreaBuilders.com April 2014 | 5

Spring Showcase of

DATES AND TIMES FOR THE 2014 SPRING SHOWCASE OF HOMES Friday, April 4 Signs to be Picked Up 8:00 AM – 4:00 PM Saturday, April 5 Entries Open to Public 12:00 Noon – 5:00 PM Sunday, April 6 Entries Open to Public 12:00 Noon – 5:00 PM Saturday, April 12 Entries Open to Public 12:00 Noon – 5:00 PM Sunday, April 13 Entries Open to Public 12:00 Noon – 5:00 PM Monday, April 14 Signs to be Returned 8:00 AM – 5:00 PM

Remember these dates! Mike Allen Homes, LLC 747 River Park Place SE Oronoco, MN River Park Home Bigelow & Lennon Construction 4894 Manor Estates Lane NW Manor Estates West 14th Home Bigelow & Lennon Construction 6336 Mallard Drive NW Ridgeview Manor 4th Home Bigelow Homes, LLC 1477 Hadley Creek Drive NE Hadley Creek Home Bigelow Homes, LLC 5613 Prosper Ave NW Harvestview Home Bigelow Homes, LLC 528 Panorama Circle NW Whispering Oaks Townhome Community Bigelow Homes, LLC 2693 Hawk Ridge Court SE Hawk Ridge Townhomes Townhome Community Bigelow Homes, LLC 475 15th Avenue NE Byron, MN Byron Towne Village Home Corban Homes, LLC 2365 Jasper Place NE Stonehedge Home Corban Homes, LLC 2005 Shannon Oaks Blvd. NE Shannon Oaks Home Corban Homes, LLC 1615 Century Valley Road Century Hills Home

www.RochesterAreaBuilders.com 6 | April 2014

Countryside Builders, LLC 3367 Jasper Court NE Stonehedge Estates Home

Hammer Homes, Inc. 2083 Hadley Creek Drive NE Hadley Creek Home

Countryside Builders, LLC 2348 Coral Ridge Place NE Stonehedge Townhomes 5th Townhome Community

Heartwood Homes of Rochester, Inc. 12498 Zumbro Cedar Lane NW Oronoco, MN Zumbro Haven Home

Cravath Homes, LLC 6878 Larkspur Parkway NW Kascades Home Cravath Homes, LLC 6882 Clarkia Drive NW Kascades Home Dahl Home Builders, Inc. 3348 Weston Court SW Fieldstone 2nd Home Derby Construction, LLC 6341 Oak Meadow Lane NW Oak Meadows 2nd Home R. Fleming Construction, Inc. 2978 Stone Park Drive NE Century Hills Home R. Fleming Construction, Inc. 3834 Eastwood Road SE Rochester Town Club Villas Home R. Fleming Construction, Inc. 2746 Sand Trap Road SE Hundred Acre Woods 2nd Home R. Fleming Construction, Inc. 704 Somerby on 9th Byron, MN Somerby Golf Community Home Robert Gill Builder, Inc. 820 Somerby Parkway NE Byron, MN Somerby Golf Community Townhome

High Deﬁnition Homes, LLC 1291 Boulder Creek Lane SW Boulder Creek Home JNS Builders 4545 Baraboo St NW Badger Hills Home Leyendecker Homebuilders, LLC 775 River Park Road SE Oronoco, MN River Park Home Majestic Homes, Inc. 3961 Cedarwood Road NE Morris Hills Home Majestic Homes, Inc. 3972 Cedarwood Road NE Morris Hills Home Majestic Homes, Inc. 4820 Spire Lane NW Kingsbury Home Maplewood Homes, LLC 2955 Stone Park Drive NE Century Hills 9th Home Maplewood Homes, LLC 1848 Shannon Oaks Blvd NE Shannon Oaks 3rd Home

MDH, Inc. – Orchard Hills Builders 590 Fox Chase Road SW Orchard Hills Villas Townhome Meadow Lakes Builders 3890 Berkshire Road SW Meadow Lakes Villas Townhome Radcliffe Homes & Remodeling 3380 Bridgeview Dr SE Stone Bridge Home Range Construction, LLC 310 Luella NW Stewartville, MN Rolling Ridge Home RCON Homes 2370 Britwood Lane SW Scenic Oaks Home Somerby Golf Community 975 Somerby Parkway NE Byron, MN Somerby Golf Community Development Summit Custom Homes, LLC 943 Somerby Parkway Byron, MN Bridgeford Townhome Thimijan Custom Homes, LLC 2326 Granite Circle NW Boulder Village Home Vennehjem Building Corporation 907 Bridgeford Place Byron, MN Bridgeford Home Wright Homes, Inc. 5897 Dogwood Court Crimson Ridge Townhome

Association Scrapbook

BAM Builder Day at the Capitol

Www.RochesterAreaBuilders.com April 2014 | 7

BUILDING TOWARDS CLEANER WATER Clean water is important to all of us. From recreational activities such as fishing and waterskiing to everyday uses including bathing and drinking, we all need water. Each of us has a responsibility to do what we can to keep our water resources clean for future generations. Are you doing everything you can at your construction sites to protect our water by preventing litter? Each year during the Help Make Rochester A Litter Bit Better! event, litter from construction sites is reported by volunteers throughout the city. Let this be the year you make a commitment to keeping your site litter-free each and every day. Use this checklist as a reminder of what you can do to “build towards cleaner water.”  Place litter collection containers in convenient locations around the site for ease of disposal.  Keep dumpsters, roll-offs, and other containers covered at all times to prevent litter from escaping.  Check these containers regularly to make sure they are not overfilled. Order additional dumpsters or request more frequent collection if overfilling is an issue.  Bag and tie up loose items before throwing them in a container.  Use snow fencing around construction or demolition sites to prevent debris from blowing into other areas.  Use a tarp or net when hauling materials in an open pickup truck or trailer. This prevents safety hazards as well roadside litter.  Smokers should use an ashtray, receptacle or a portable pocket ashtray to prevent “butt” litter …the #1 littered item in the U.S.  Routinely walk the site and collect loose items and debris that may have escaped.  Communicate with your staff, vendors, and subcontractors about their personal responsibility for a clean and safe working environment. Discuss proper disposal methods and locations of disposal areas.  Participate in this year’s A Litter Bit Better! event:  Pick a date between April 19-26th  Pick a location and register as an individual or group at www.RNeighbors.org/litterbitbetter  Pick up litter at your registered site during A Litter Bit Better! week It is up to all of us to do our part to prevent litter in our community. Please take the time to keep your construction sites clean and help make Rochester A Litter Bit Better! www.RochesterAreaBuilders.com 8 | April 2014

The New State Storm Water Permit Requirements Will Create Program Changes in Rochester Development and construction industry professionals in Rochester have felt the influence of the Minnesota Pollution Control Agency’s (MPCA) municipal separate storm sewer system (MS4) permit since 2003. In August 2013, the MPCA adopted a new permit with expanded requirements that will significantly alter Rochester’s Storm Water Pollution Prevention Program (SWPPP). The changes will impact how the City manages its own operations, as well as how the development process is administered. As the new requirements evolve into new City regulations and processes over the next 14 months, developers and contractors will also experience yet-to-be determined changes in how they will be required to provide for clean water. The primary permit changes include: • All City field staff must be trained to identify and report “illicit discharges”; these are discharges other than storm water that have somehow entered the ditches and storm sewers. The City will also have to identify priority areas that are most likely to have illicit discharges. • Local construction site standards must be upgraded to be “at least as stringent as” the MPCA’s construction storm water (CSW) permit. • Storm water volume control is a new MS4 requirement for new development and redevelopment sites, but it has been a provision of MPCA’s CSW permit since last August. The new standard requires that the first inch of rainfall be captured by on-site best management practices (BMPs), like raingardens or infiltration ponds. Under the MS4 permit, the City will need to give preference to “green infrastructure” that mimics pre-development hydrology. It will also need to clarify where infiltration is prohibited and restricted. The City must develop engineering procedures that evaluate infiltration feasibility in clay and highly permeable soils, active karst bedrock areas, and drinking water supply management areas. • When developers can’t treat total phosphorus and total suspended solids on site, they can now propose alternative sites, so the City will have to establish a procedure for evaluating off-site mitigation areas to insure the required treatment levels are met.

approved TMDL are being reduced by the public and private BMPs at work throughout the City. • The City will have to develop a pond treatment effectiveness plan. If the ponds are found to be deficient in providing the expected treatment, the ponds will need to be rehabilitated. To review the entire permit, go to: www.pca.state.mn.us/index. php/view-document.html?gid=19474. Rochester submitted its permit application to the MPCA on December 31, 2013; their completeness/compliance review is finished. Public notice of the 30-day comment period for the City’s SWPPP application can be expected in March. The notice will be posted on the MPCA web site: www.pca.state.mn.us/index. php?option=com_k2&view=item&id=749, where interested parties can obtain a copy of the City’s application, learn the comment period start and end dates, and get instructions for providing comments. Once the comment period closes, the City will respond to comments received and decide what, if any, SWPPP changes are needed. After completing that step, MPCA will extend coverage to activate the City’s new permit. Until the new permit takes effect, the City will continue to implement its existing MS4 program. Once the MPCA extends coverage under the new permit, the City will have only 12 months to incorporate all the new requirements.

• An assessment of municipal operations facilities must be completed to determine if BMPs are needed to control storm water. Plus, in addition to inspecting 20% of its ponds each year, 100% of non-pond BMPs must be inspected annually to insure they are functioning as planned. • The City must write new or upgrade existing ordinances, checklists, standard operating procedures (SOPs), and enforcement response procedures (ERPs) to address the new requirements. The SOPs and ERPs will direct City staff activities, while the ordinances and checklists must be followed by developers and contractors. The City intends to develop one storm water ordinance that will supersede regulations that are currently distributed throughout many City ordinances. • Legal controls associated with private BMPs must be established that allow: inspections; maintenance payments by the BMP owner; continued City access if ownership changes; and long-term preservation of BMPs. • After the MPCA has formally listed certain waters as not meeting particular water quality standards, it develops “Total Maximum Daily Load (TMDL) Reports” that apportion restoration responsibility amongst identified pollution sources. The City must now establish a pollutant reduction accounting system that quantifies how much the pollutant loads identified in an

It is important to remember the ultimate goal of the MS4 permit: to help restore and maintain the chemical, physical, and biological integrity of our waters through the management and treatment of urban storm water runoﬀ. Together, the City and the developers are shaping the quality of life in Rochester and insuring the quality of our surface and groundwater. Questions about the City’s storm water permit can be directed to Barb Huberty, Environmental and Regulatory Aﬀairs Coordinator, at bhuberty@rochestermn.gov. Www.RochesterAreaBuilders.com April 2014 | 9

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 KC Chermak Associate VP George Cundy President Elect Mike Paradise Treasurer Gerry Traut Secretary Kurt Welker Past President Keith Kylmala NAHB Representative Kathe Ostrom

www.RochesterAreaBuilders.com 10 | April 2014

March 2014

�� On March 12, over 170 builders association members from across the state converged in Saint Paul to use our collective industry voice at our state’s Capitol. We are stronger together, and it’s one of the reasons the Builders Association of Minnesota exists. Every local association was represented and together we met with nearly 75% of the Legislature. That is no small feat. It means we broadcast, in person, the message that the home building industry is important to Minnesota’s economy and we will be heard. Our priority issues for the day included: Statewide building code enforcement – The Legislature must pass legislation to level the playing field for the safety of consumers and the economic health of the residential construction industry. Subcontractor registration – The pilot program has created a heavy burden on licensed contractors. Let the pilot project expire June 30, 2014, and do not let it become a permanent mandate. Builder-pay attorney fees (SF 2146/HF 2612) – The language is one-sided and would award attorneys fees only to the homeowner if they are the prevailing party. It does not provide the same for a builder should they prevail. The Legislature must oppose this bill. B2B taxes – Repeal regressive, hidden, business-to-business sales and use taxes on services. Fire sprinkler mandate – With the code process nearing completion, the Legislature must prohibit the home sprinkler mandate. Thank you to those that were able to attend, and thank you to our event sponsors: Xcel Energy, The Builders Group, Brushmasters, Larkin Hoffman, and the Home Builders Association of Fargo-Moorhead. We will keep you posted on the progress of the 2014 legislative session. Session wraps May 19, which isn’t much time, but things have been moving fast as a result of the time crunch. Look for a call for grassroots efforts.

�� Prior to the big event, the BAM Board of Directors held their first meeting of 2014. President Chad Kompelien reported BAM closed 2013 in the black and led the board in discussion about industry issues. The board talked about appraisals and labor shortage and possible solutions. Each local association reported on what’s happening in their area; cool new things and any challenges for 2014. It was a successful meeting and we look forward to the next meeting August 20th in Saint Cloud.

Committee Chairpersons AMBASSADORS Greg Hird, First Alliance Credit Union AWARDS TBA BUILDING MAINTENANCE TJ Schutz, Advanced Building Center, Inc. BUILDING SAFETY ADVISORY Mickey Elias, Elias Construction, LLC COMMUNITY RELATIONS Tony Kunz, Hiller’s Flooring America DISPUTE RESOLUTION John Kuntz, Kuntz Electric, Inc. EDUCATION Vacant EXECUTIVE Kevin Worden, Rochester Area Habitat for Humanity FASHION SHOW Karen Blissenbach, Design Studio B FINANCE Carla Kilpatrick, Home Federal Savings Bank GOLF OUTING Lindsey Rippentrop, Olmsted National Bank GOVERNMENT AFFAIRS John Eckerman, The Boldt Company GREEN BUILDING Kelly O’Marro, XRG Concepts, LLC HOME SHOW – 2013 Jeff Kalmes, Hillers Flooring America MARKETING Rob Easthouse, Electrical Solutions & Service MEMBERSHIP & RETENTION Dan Bochman, Kruse Lumber NOMINATING Kerk Johnson, Schwickert’s Tecta America, LLC PERSONNEL Kevin Worden, Rochester Area Habitat for Humanity PROGRAM Dan Plizga, Weis Builders, Inc. PUBLIC WORKS ADVISORY Jeff Broberg, McGhie & Betts - a Division of WSB & Associates, Inc.

Committee Updates

RAB GOLF OUTING COMMITTEE CHAIRPERSON: Lindsey Rippentrop, Olmsted National Bank The Golf Outing committee is in the process of calling our previous years sponsors to give them the opportunity to sponsor again. After that, all the unsold sponsorships will be up for grabs, so stay tuned for sponsorship opportunities! SHOWCASE COMMITTEE CHAIRPERSON: Brandon Vagt, XRG Concepts The Showcase committee is happy to announce that we have 42 entries for this year’s Spring Showcase of homes. The Showcase is just around the corner, on April 5th – 6th and April 12th – 13th, and it looks like the warm weather will be getting here just in time! Good luck to all the builders as you display your homes to 1,000’s of potential buyers! NOMINATING COMMITTEE CHAIRPERSON: John Eckerman, Boldt Construction The Nominating Committee will be meeting soon to discuss nominations for the 2015 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 OF HOMES Brandon Vagt, XRG Concepts, LLC SPIKE CLUB Jay Burke, Heartwood Homes of Rochester, Inc. SPORTING CLAYS James Coyle, Kane & Johnson Architects, Inc.

Councils

BER EXECUTIVE COMMITTEE JJ Webster, Kraus-Anderson Construction Company CBC EXECUTIVE COMMITTEE Chris Terry, Knutson Construction Services DEVELOPMENT COUNCIL John Sipple, Rochester Area Appraisals, LLC REMODELERS EXECUTIVE COMMITTEE Sam Peyton, King’s Flooring, LLC REMODELERS TOUR Karen Blissenbach, Design Studio B

Www.RochesterAreaBuilders.com April 2014 | 11

��

�� construction fashion expose

��April 24, 2014 �� VIP Tickets ��Advanced ��at the Door ��Habitat for Humanity �� RochesterAreaBuilders.com�� 507-282-7698�

� � � � � � � � �� Remodelers � � � � � � � � � ��

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www.RochesterAreaBuilders.com 12 | April 2014

April Meeting Tuesday, April 15, 11:30 AM Luxury Bath Remodeling 2717 Hwy 14 W, Suite L Program: Showroom Visit In April we’ll be visiting the showroom of Luxury Bath Remodeling on Highway 14 West. We’ll meet for food, networking, and a tour of their showroom. Don’t forget to RSVP! Please respond by 10:00 am on Monday, April 14th. You can contact the office by phone at 507-282-7698, or email Rebekah at RNielsen@RochesterAreaBuilders.com. Thank you to Struve’s Paint and Decorating for hosting the February meeting, and to Prime Time Painting of Rochester, LLC for co-hosting with them!

��

Members

2014 Commercial Builders Council

107 Members as of 12/31/13 McGough Construction AB Systems, Inc. MEC Construction, Inc. Accord Electric, Inc. MEP Associates Advanced Disposal Merchants Bank Alpha Video & Audio Merit Contracting, Inc. Associated Bank Minnesota Energy Alvin E. Benike, Inc. The Blue Book Resources Corporation of Building & Minnwest Bank Construction Nickelson Painting, Inc. The Boldt Company Olmsted National Bank Braun Intertec OnSite Corporation Palmer Soderberg, Inc. Briese Iron Works, Inc. Pella Windows & Doors Brock White Company People’s Energy C.O. Brown Agency Cooperative Cambria Pompeii Painting, Inc. Carpet One Prehn Building Sales, Century Painting & Inc. Decorating, LLC Premier Bank Rochester Chosen Valley Testing, ProBuild Company, LLC Inc. Reliable Contractors, Construction Inc. Partnership, Inc. Rochester Area Counselor Realty of Appraisals, LLC Rochester, Inc. Rochester Area Economic County Materials Development, Inc. Corporation Rochester Public CRW architecture + Utilities design group, inc. Custom Alarm/Custom Rochester Ready Mix Communications, Inc. Concrete Co Dunlap & Seeger Rochester Sign Service, Eastwood Bank Inc. eci, llc Rochester Title & Elcor Construction Escrow Company, Inc. Energy Panel Structures Ryan Electric of Energy Products & Rochester, Inc. Design, Inc. Schoeppner, Inc. Enventis Schwab, LLC Expert Insulation, Inc. Schwickert’s Tecta Ferguson Enterprises America, LLC Friedrich Construction, Stantec Inc. Structural Design Gerhards Group, Inc. Goodin Company Superior Mechanical Haley Comfort Systems Tamarack Materials of (Authorized FireSide Rochester, Inc. Dealer) Think Mutual Bank W.L. Hall Company Tonna Mechanical, Inc. HGA Architects and TSP Architects & Engineers Engineers HDR Architecture TW Construction Heartman Insurance Solutions, LLC Hiller’s Flooring America United Rentals HiMec at Home The Urban Studio Home Federal Savings US Bank Bank Valor Mechanical, Inc. Hunt Electric Veit Companies Corporation Vertical Limit K&M Glass Company Construction K&S Heating, A/C, Viking Automatic Plumbing & Electrical Sprinkler Company Kane & Johnson Viking Electric Supply Architects, Inc. Weis Builders, Inc. Key Builders, Inc. Wells Fargo Bank Knutson Construction Minnesota NA Services Wendland Utz Komitt Concrete, Inc. Widseth Smith Nolting Kraus-Anderson Yaggy Colby Associates Construction Company Kreofsky Building Supplies Kruse Lumber Kuntz Electric, Inc. Kwik Trip, Inc. Leitzen Concrete Products, Inc. Ed Lunn Construction, Inc. Marvin Windows & Doors Mavo Systems, Inc. McGhie & Betts, Inc.

C OMMERCIAL C B OUNCIL

UILDERS

a division of Rochester Area Builders, Inc.

April MEETING DATE: Wednesday, April 2nd, 2014 TIME: Registration & Networking at 7:00 A.M.

Program at 7:30 A.M.

PLACE: Ramada Hotel & Conference Center PROGRAM: “Jacobson Building Proton Therapy Equipment Installation” SPEAKERS: Bob Sanderfoot - Construction Manager - Mayo Clinic Jason Krueger - Senior Project Manager - Boldt Construction Josh Christensen - Project Manager - Boldt Construction EXECUTIVE COMMITTEE Chairperson: Chris Terry, Knutson Construction Services Vice Chairperson: Nick Leimer, KrausAnderson Construction Company Past Chairperson: Sue Hanson, Rochester Title & Escrow Company, Inc. Members-at-Large: John Hill, Schwab, LLC Shaun Knode, AB Systems, Inc. John Kuntz, Kuntz Electric, Inc. Levi Kaiser, A.E. Benike, Inc. Matt Mohs, WHKS & Company Mike Nordstrom, Superior Mechanical

New Member The CBC Executive Committee approved the following new member. RSP Architects Dana Hlebichuk, A.I.A., N.C.A.R.B. 320 South Broadway Suite B Rochester, MN 55904 507.285.6569 main 507.292.8666 direct

April Meeting You won’t want to miss our April 2, 2014 Commercial Builders Council meeting! Come hear about the Jacobson Building Proton Therapy Equipment Installation from the company that did the work. The speakers will be: Bob Sanderfoot Construction Manager, Mayo Clinic, Jason Krueger - Senior Project Manager, Boldt Construction and Josh Christensen - Project Manager, Boldt Construction.

Www.RochesterAreaBuilders.com April 2014 | 13

Rochester Building Permits New Residential Single Family Dwelling

2014

VALUATION

2013

VALUATION

3,676,561

2,971,537

February 2014

Single Family Homes January

2005

2006

2007

2008

2009

2010

2011

2012 2013

11 14

Townhome Dwelling

February

Two-Family Houses

Multi-Family Bldgs

March

Manufactured Home

April

May

June

July

Existing Residential Deck Addition

3,750

4,500

Room Addition

41,637

August

September

October

283,954

November

December

702

506

417

302

274

200

191

299

326

Porch Additions

10,000

Other Additions

12,509

Basement Finish Alterations Multi-Family Addition

333,260

260,753

654,730

TOTAL

330,300

*total may differ as permits may have been voided.

Assembly (Church)

Year To Date Statistics

Assembly (General)

Assembly (Restaurant/Bar)

Business

790,000

Education

Factory/Industrial

Institution

660,588

Multi-Family Alterations

2014

New Commercial

Mercantile Miscelaneous

Utility (General)

Residential (Care/Assisted Living)

15,166,345

Storage (General)

Storage (Warehouse)

Existing Commercial Addition

15,564,658

451,634

3,834,373

10,935,998

Structural Shell

18,500

“White Box”

Interior Demolition Only

6,200

Other Phased Permits

899,000

Business Signs

60,800

51,200

Advertising Sign

Footings & Foundations

400,000

Demolition

Alterations

Other Construction

www.RochesterAreaBuilders.com 14 | April 2014

2014 VALUATION

NO.

2013 VALUATION

Building Permits Issued to Date

220

48,666,350

242

24,026,941

Single Family Dwelling

6,538,130

7,509,158

Multi-Family Buildings Total Units: 0

Trade Permits Issued to Date

892

10,001,305

1,003

11,217,288

Electrical

279

3,383,826

308

6,986,776

5,950

8,950 1,971,026

Electrical (Temp. Service) Mechanical

264

2,718,465

267

Gas Piping

254,888

72,320

Fireplace

150,273

163,626

Hydronic System Plumbing

Total Permits YTD

725,600

460,000

211

2,762,303

241

1,554,590

1,112

58,667,655

1,245

35,244,229

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

Byron

Building Permits FEBRUARY 2014 New Residential Single Family Detached

NUMBER

VALUATION

350,000

22,500

Existing Residential Basement Finish

January/February 2014 Monthly Housing Data

Pine Island

Building Permits FEBRUARY 2014 Existing Residential

Rochester Real Estate Monthly Housing Data

NUMBER

VALUATION

Heating

3,600

Basement Finish

1,000

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)

Jan. 2014

Jan. 2013

% Change

123 582

179 674

-31.3% -13.6%

127 90 90

124 105 105

2.4% -14.3% -14.3%

159,000

149,700

6.0%

118

-27.12%

118

-27.12%

Feb. 2014

Feb. 2013

% Change

186 772

201 875

-7.5% -11.8%

116 82 174

151 93 198

-23.2% -11.8% -12.1%

153,000

149,950

2.0%

115 -24.35%

116 -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 April 2014 | 15

Reservations About the Dollar Elliot Eisenberg, Ph.D.

Since the start of the Great Recession of 2008 and the Fed’s decision to inject trillions of dollars into the banking system, there has been constant talk of the US dollar losing its position as the world’s reserve currency, the position it has held since the end of WWII. After all, our debt is huge and growing, DC is thoroughly dysfunctional, our share of the world economy is shrinking and China is increasingly pushing for a post dollarcentric financial system. Despite all the concerns above, the dollar’s position as the reserve currency of the world is safe for a long while. First, which currency can realistically unseat it? The British pound is simply too small to do the job as the British economy is about 1/7th the size of the US economy. As for the euro, while it is large enough, there are too many structural problems including weak growth, over taxation, an inflexible central bank and the outside possibility of the collapse of the monetary union to entice many central banks to significantly increase their euro holdings. As for the Yen, Swiss Franc or Chinese renminbi, you have got to be kidding! With a debt to GDP ratio greater than that of Greece, Japan makes the US look downright fiscally responsible. Moreover, Japan and Switzerland are both pushing down the value of their respective currencies making them that much less appealing to hold. Lastly, the renminbi does not freely float and there are significant foreign exchange controls in place. As a result, it will take at least a decade before China has the necessary legal framework and deep and open financial markets that are a necessary prerequisite before the renminbi can become a credible reserve currency competitor.

Second, because of increased capital flows between nations due to increases in trade and investment, central banks have been repeatedly told by their respective governments to hold larger quantities of safe and easy-to-sell assets which can be easily liquidated in time of crisis. As a result, total foreign reserves have nearly quadrupled in the past decade and this has dramatically increased the demand for dollars. For example, when foreign capital suddenly ﬂees a developing nation, it puts downward pressure on the local currency. By selling some of its dollar holdings to purchase its own currency, a country can stabilize its currency and avoid large currency swings. Moreover, simply holding a large supply of highly liquid foreign assets, like dollars, discourages speculation and demonstrates that a nation has the necessary reserves to pay foreign creditors for things like oil and wheat. Lastly, with large holdings of dollars the last thing foreign nations want to do is harm the dollar as that would reduce the value of their holdings and that, in and of itself, reinforces the dominance of the dollar and thus improves its stability. That is at least partly why for the past 15 years 60% of world foreign exchange reserves have consistently been in dollars. Were that percentage to slowly fall to 50% over the next few decades, it would matter relatively little. To sum up, despite lots of talk, there exists no strong competitor to the US dollar and one is unlikely to appear anytime soon.

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.

www.RochesterAreaBuilders.com 16 | April 2014

Membership Information Membership Renewals

as of 1/31/14

One Year

Extreme Panel Technologies, Inc. First Security Bank

2013 2013

Two to Four Years

Batzel Builders, Inc. Enventis Pro Image Promotions & Apparel The Excelsior Group, LLC Vector Windows Chris Fritsch Custom Homes, LLC Steve Gentry Construction, LLC Brandon Henderson’s Construction Plus, LLC Fieldstone Family Homes, Inc. Spahn & Rose Lumber Company Vertical Limit Construction

2012 2012 2012 2012 2012 2011 2011 2010 2010 2010 2010

Five to Nine Years

First Choice Homes, LLC W.L. Hall Company

2008 2007

Ten to 19 Years

Al Barker Custom Homes, Inc. Schwickert’s Tecta America, LLC Home Systems Installation, LLC IntegraSpec Central/Jeff Mueller Construction Adair Electric Company Appliance Village Company Reliable Contractors, Inc. Larsen Industries, Inc.

2004 2004 2002 2002 2000 2000 1998 1997

20 to 24 Years

United Products/Allied Building Products Corp. Quality Siding & Window, Inc. Stadsvold’s Lawn & Landscape

1993 1991 1990

25 Years & More

Heartwood Homes of Rochester, Inc. Coldwell Banker Burnet Edina Realty Home Services High Deﬁnition Homes, LLC Arrow Building Center

1989 1988 1985 1985 1984

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

NONE

MEMBERSHIPS PENDING: NONE MEMBERSHIP TOTAL: 454 RETENTION RATE: 91.4% As of 2/28/14

WE WELCOME THE FOLLOWING NEW MEMBERS IN MARCH: ALL CRAFT EXTERIORS, LLC 4410 19th Street NW Rochester, MN 55901 Phone: 507-424-3323 Contact: Brent Beck Builder Member Exterior Remodeling Sponsored by: Mike Coats, MEC Construction, Inc. CLAYTON THOMAS BLINDS OF ROCHESTER 2400 Country Club Road SW Rochester, MN 55902 Phone: 507-258-4457 Contact: Darlene Drew Associate Member Blinds/Window Treatments Sponsored by: Kirk Gill, Robert Gill Builder, Inc. GAF 72597 280th Street Albert Lea, MN 56007 Phone: 651-357-3222 Contact: Ole Olson Associate Member Roofing Manufacturer Sponsored by: Kerk Johnson, Schwickert’s Tecta America, LLC JNS BUILDERS, LLC 2325 Endicott Street St. Paul, MN 55114 Phone: 651-646-0221 Contact: Steve Toddie Builder Member Residential Builder Sponsored by: None Listed

Www.RochesterAreaBuilders.com April 2014 | 17

National Association of Home Builders

Put your membership to work now. Money-saving discounts that benefit your business, your employees, and your family