Foundations - July 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 + 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. + CHS, 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 + 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. + DiNicola & Pestka Appraisals + 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 + J.E. 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 + The Excelsior Group, LLC + Exclusive Home Builders & Remodelers + Expert Insulation, Inc. + Express Employment Professionals + Extreme Panel Technologies, Inc. + Fairway Outdoor Advertising, LLC + Fat Willy's Bar & Grill + 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. + 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 + Kahler Hospitality Group + 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 + Manufacturer's Bank & Trust + 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 + 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. + 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 + 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 pany, Inc. + Quality Siding & Window, Inc. Com+ Michael Quinn Law Office + R&M Development Company + R. Thomas Consulting, LLC + Radcliffe Homes & Remodeling + Range Custom Homes, 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. + Rochester Area Foundation + Rochester Asphalt, Inc. + Rochester Building Safety Department + Rochester Concrete Products, tional Event Center + Rochester Plumbing & Heating/Roto Rooter + Rochester Public LLC + Rochester InternaUtilities + 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. + Sawyer Construction Services, Inc. + Schad Tracy Signs, Inc. + Schmidt Goodman Office Products + Schoeppner, Inc. + Schumann Granahan Hesse & Wilson, Ltd. + Schwickert's Tecta America, LLC + Seavey han Building & Remodeling, LLC + Sherwin Williams Builders, Inc. + SEH Yaggy + Dan Severson Builders, Inc. + ShanaCompany + Shingobee Builders, Inc. + Sign Here, Inc. + Simonson Builders, LLC + SL Contracting + Smart ing, Inc. + Smith Schafer & Associates, Ltd. + Solar Connection, Inc. + Somerby Golf Home Innovations & EngineerCommunity + 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 + 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. + Ultimate Surfaces + United Heating & Cooling + United Products/Allied Building Products Corp. + United Rentals + The Urban Studio, LLC + US Bank + Valor Blinds + Van Haren ICF + Vector Windows + Veit Mechanical, Inc. + Val-UCompanies + 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. a publication of + Greg Wellik Construction + Wells Fargo Bank Minnesota NA + 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

J U L Y

2 01 4

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

build your reputation

with Cambria

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www.RochesterAreaBuilders.com 2 | July 2014

NEW CAMBRIA GALLERY - ROCHESTER DeDee Marzolf, Gallery Manager 400 S. Broadway | 507-206-2323 Mon-Fri 8am-6pm | Thur 8am-8pm Sat-Sun 11am-4pm

6/13/14 8:18 AM

News from The President June 12, 2014

“Come gather ‘round people, wherever you roam, and admit that the waters around you have grown… for the times, they are a-changing.” -Bob Dylan Hello, and Happy July to all! Though Bob Dylan didn’t have the Rochester of 2014 in mind when he wrote these lyrics decades ago, he certainly could have. Anyone who has picked up a Post-Bulletin, walked around downtown, or generally lived anywhere outside of a cave for the past 18 months knows that we are on the cusp of very substantial growth and changes in our region. Through a recently- released Comprehensive Housing Needs Assessment report conducted by Maxfield Research, we now know that our region needs not just more housing, but different housing options in response to a changing population. QUICK QUIZ: The most rapid rate of population growth in the Rochester area between now and 2018 lies with what age segment of the population? If you guessed the “young professional” generation like I did, you are not correct! The age 65-74 cohort is expected to take that title. Baby boomers will be looking for a wider variety of housing options in their retirement years than past generations have expected. Are you ready for them? Here are a few other things I learned from reviewing the study (statements are my paraphrasing and interpretations, not direct quotes unless noted): • It’s not all about just Rochester! Demand for housing will be “fluid” throughout the county, e.g. more senior housing projects in Stewartville would reduce the demand for the same in Rochester. Note to cities: area builders are your partners in ensuring your town’s future prosperity! Let’s work together! • We have a greater percentage of homes occupied by someone with a disability. To no one’s surprise in the Med City region, we exceed the state average by over 60% (16% of all households, vs. an average of 10%). Meeting the housing needs of all of our residents can benefit everyone involved. • Affordability continues to be a concern, and will require more than one solution. More renters than owners are “cost-burdened” by their housing (paying more than 30% of their income), and this problem is likely to persist due to low vacancy rates. • The need for a central “one-stop shop” in our local government for navigating housing policies and processes, long advocated for by RAB, is independently established in this study. This valuable position could help customers to navigate housing codes and regulations, and encourage partnerships between the public and private sectors. Check www.rochesteraerabuilders.com for a summary of the full study. Or, if you’re feeling really ambitious, you can find the full report (all 340 pages!) on the Rochester Area Foundation’s web site. Special thanks to them, as well as to the Mayo Clinic and Olmsted County, for sponsoring this important effort. Here’s to “building” a strong future in the Rochester area! Have a great month.

Kevin Worden 2014 RAB President

Index News from the President ......................... 3 Thank Yous ............................................... 3 From the Director’s Desk ......................... 4 June Networking Night ............................. 5 Green Building Expo..............................6-7 Association Scrapbook .......................8-11 RAB Golf Outing Review .........................12 Hey Matt! What’s up with that? .............13 BAM Update ............................................ 14 Committee Updates ...............................15 Remodel It Right News .......................... 16 Rochester Permits ..................................18 Byron/Pine Island Permits .....................19 Real Estate Data ....................................19 Elliot Eisenberg Article ...........................20 Membership Information ....................... 21 NAHB Member Discounts ......................22

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

Thank You! May Networking Night

Thank you to Gerhards for hosting the May Networking Night. Thanks to Bruce, Renae, and the rest of the staff. They did a great job with the food and gave away lots of goodies for those in attendance. Walt Pappas, Walt Pappas Construction, won a Kohler Touchless ﬂush mechanism. Shockingly, Jean DeWitz, DeWitz home Builders, was the winner of a Moen faucet. Mike Paradise, Bigelow Homes, won a $30 gift card to Michael’s courtesy of Post Bulletin.

Www.RochesterAreaBuilders.com July 2014 | 3

From The Director’s Desk A Hard Fought Battle As you are now probably aware, beginning in 2015 some single family homes built in Minnesota will require fire suppression systems, aka fire sprinklers. In a nutshell, this requirement will be in homes larger than 4,500 square feet, including basements, but excluding garages. We fought hard through several legislative sessions to keep fire sprinklers a home owner’s choice, but in the end Governor Dayton decided that other special interests outweighed our valid and statistically proven arguments, and increased the cost of housing for Minnesotans. This will be an issue that we will continue to face as the Commissioner of DOLI has gone on record stating that fire sprinklers should be in ALL new homes. We’ll keep you posted. There were a lot of people, members and non-members, who were heavily involved in our efforts, but I want to give special recognition to one non-member that really went above and beyond. That person is Senator Dave Senjem. Over the past year, whenever I would see Senator Senjem at community events, the first thing he would say to me is, “Gotta keep those sprinklers a choice.” He truly championed our issue at every opportunity, and his last attempt was extremely effective (and a brilliant political move, according to Remi Stone) at bringing the issue into the overall political discussion. Senator Senjem has always been a great advocate for the Building Industry, even before fire sprinklers came to the forefront. So, if you run into Senator Senjem this summer, make sure to thank him for working hard for our industry!

RAB Executive Director

www.RochesterAreaBuilders.com 4 | July 2014

Join us at the June

Summer Networking Night Tuesday, June 24th,

at the Valor Mechanical, Inc. 416 S Broadway (Click Address for Map)

Hours: 5:00 pm - 7:00 pm OUR HISTORY Valor Mechanical was founded in June 2006 by Ty Bestor. The dream, vision and the current evolution of Valor was implemented in September 2012. Ty has over 35 years of experience in the mechanical construction industry. Ty was born and raised in a small, rural community in southeast Minnesota, which prompted his desire to own and operate a company with the same moral values, integrity, and trust found in his small-town community. WHO WE ARE Valor Mechanical is a full-service commercial mechanical contractor based out of Harmony, MN, with a second location in Rochester, MN. Valor operates on these principle core values: integrity, trust and strong relationships, all with a high level of customer service. These values were instilled by Ty Bestor, CEO, and all who work at Valor share in these values and in Ty’s business passion. WHAT WE DO The experienced team at Valor Mechanical listens to the customers’ needs and objectives, then creates a customized solution. Valor creates cost-efficient solutions by allowing our team to approach every project from an engineering-first perspective. Before finalizing mechanical numbers, we explore every issue and concern with the project team. The main constants among our technicians, engineers and trained craftsmen is experience, dedication and their commitment to Valor’s core values.

Hosted By:

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 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, Dunlap & Seeger 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 July 2014 | 5

EXHIBITORS NEEDED! What: Green Building Expo—an event for the public When: Saturday September 20, 2014 Where: Cascade Meadow Wetlands and Environmental Science Center Time: 9am– 3pm Who: You! If your business has anything to do with making a home more energy eﬃcient, more sustainable, sign up for a booth and we will review Areas we are looking for:

Buildings, Health and Wellness, Site Development, Landscaping and Drainage Cost: $200—for a measly $200 you get a 6 foot booth and countless members of the public to talk to about your business

$50 to present. The comtopics to be presented.

Signature Event Sponsors

www.RochesterAreaBuilders.com 6 | July 2014

Please note that Rochester Area Builders will ability of your business to the Green Building

respond to you by August 22, 2014 with the ďŹ nal decision. Space is limited, so sign up fast!

faxing it to Rochester Area Builders at 507-282-6351. If you would like to mail in the form please mail it to: Rochester Area Builders 108 Elton Hills Ln NW

Rochester, MN 55901

Business: Contact Name: Nature of Business: Payment Method (Please Circle):

Check

Credit Card

Credit Card Number :

Security Code: Yes

Signature Event Sponsors

Www.RochesterAreaBuilders.com July 2014 | 7

Association Scrapbook

www.RochesterAreaBuilders.com 8 | July 2014

RAB Golf Outing

Association Scrapbook

Www.RochesterAreaBuilders.com July 2014 | 9

Association Scrapbook

www.RochesterAreaBuilders.com 10 | July 2014

CBC Social Event

EVENT

Association Scrapbook

1/8" = 1'-0"

3’ - 9”

Www.RochesterAreaBuilders.com July 2014 | 11

RAB Golf Outing Review Thank You to our wonderful Sponsors! Gold Tee Sponsor:

Gazebo SPONSOR: Commercial Builders Council PUTTING CONTEST SPONSOR: Minnesota Energy Resources CLOSEST TO THE FLAG: The Builders Group BREAK THE GLASS: Marvin Windows & Doors CIGAR CART SPONSOR: Tradesmen International, Inc. DRINK CART SPONSORS: Carpet One Knutson Construction Services

www.RochesterAreaBuilders.com 12 | July 2014

TEE & GREEN SPONSORS: ABC Supply Company, Inc. Braun Intertec Corporation C.O. Brown Agency Cambria Charter Business Clements Chevrolet Cadillac Subaru Data-Smart Computers, Inc. Dunlap & Seeger Energy Products & Design Gerhard’s Home Federal Savings Bank Kreofsky Building Supplies Kruse Lumber MBT Bank McGhie & Betts, A Div. of WSB McGladrey Merchants Bank Minnwest Bank Olmsted National Bank Post-Bulletin Company, LLC ProBuild Company, LLC Pine Island Lumber Pompeii Painting, Inc. Premier Bank Rochester Rochester Title & Escrow Co. Smith Schafer & Associates Somerby Golf Community Warner’s Stellian Appliance Wendland Utz Werner Electric Supply Women Communications, LLC Yaggy Colby Associates

APPETIZER SPONSORS: Crescent Electric Supply Company CRW architecture + design group Ohly Law Ofﬁce Viking Electric Supply CART SPONSORS: The Blue Book of Building & Construction Brock White Company CRW architecture + design group Custom Alarm/Custom Communications, Inc. Eastwood Bank First Security Bank PrimeLending Thompson’s Garage Door and Openers

��

“Hey Matt, I hear a lot of people talking about Sump Pumps all of a sudden. What’s up with that?”

��

What a wet spring so far! With so much water falling from the sky and soaking the ground, its no surprise that sump pumps have become a topic of discussion. Recently, RAB was reminded by the building safety department of Rochester that if you have a sump basket in a house, there must be a discharge line installed, and a pump placed in the basket. This is a part of the Minnesota state For this month’s “Hey Matt, What’s Up With That?” building code. The building safety department we are talking about Subcontractor Registration, explained that they are running into a lot of homes and sump pumps. with baskets installed that have no discharge line “Hey Matt, what’s up with Subcontractor or pump in the basket.

We have also heard concerns from some builders that they can put a pump in the sump basket, but This legislative session, a pilot program by the if it doesn’t run for over 6 months, it will seize up Department of Labor and Industry (DLI) was and not work when needed. Homeowners, make codified into law, making it binding upon all sure to follow the manufacturer’s instructions for contractors in Minnesota. The program aims to maintenance on these sump pumps. The most crack down on subcontractors not registering common maintenance step for these pumps is with DLI and claiming independent contractor to ocasionally pour water into the sump basket status to get around some workers compensation during the winter, and let the pump run. This is laws. an important step to make sure your basement The program works like this: if a subcontractor is doesn’t become a wading pool! not registered with DLI and does not fulfill the 9 Thanks to the members who sent me these factor test for being an independent contractor, questions for this month’s edition of “Hey What’s DLI fines the general contractor. We fought this up with That?” As always, if you have a question law during the legislative session, and thankfully about anything you find interesting or confusing we received a one-time hall pass. That means during your work day, give me a call or send an that the first time that a general contractor hires a email, and hopefully I can find out the answer for subcontractor that is not registered with DLI, they you! will not be fined. This is something we fought for when we saw the writing on the wall that this would become law.

Registration?”

Matt

Going forward subcontractors, make sure you are registered with DLI. It may affect your ability to work for certain GCs. And GCs, the onus is on YOU to make sure the subs you hire are registered. You can check with DLI on their website using a nifty little search tool. RAB will be running our membership list through DLI’s registered contractors list, and we will be contacting those who aren’t registered to give them a friendly reminder.

Oh, and one more thing . . . “Hey Matt, did you put a ring on it?” Yes, it’s true, Matt proposed to, and more impor tantly was accepted by, his now fiance, Loryn Meloy. Congratualtions to the happy couple!

Www.RochesterAreaBuilders.com July 2014 | 13

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 14 | July 2014

June 2014

�� The Minnesota Department of Labor and Industry (DLI) has stated they plan to start enforcing the new Minnesota Building Code in January of 2015. They have not yet released the final version of the code, so we don’t know exactly what will be included. However, based on what is known, the Builders Association of Minnesota (BAM) is working to provide members with code guides with a planned release date near the end of August 2014. BAM has contracted with Ed VonThoma of Building Knowledge Inc. and has assembled a group of statewide members to create and vet the following code guide documents: • Top 20 Code Changes in the Residential Building Code • Top 20 Code Changes in the Energy Code • Field Guide to Residential Code • Field Guide to Energy Code • Field Guide to Radon • Field Guide to Foundation Wall Support • Field Guide to Residential Fire Sprinklers These guides are a major benefit of membership and available ONLY to members. DLI issues the codes, but BAM is the organization that develops guides on how to implement the new codes. BAM will be providing members with access to each of these seven documents. The documents will be available on the BAM website and optimized for both printing and easy viewing on your mobile devices out in the field. These guides will form the basis for continuing education courses and BKI will be available to teach classes around the state to help members prepare to build to the new code. If you have industry peers that will benefit from having these guides, tell them to join your local builders association and enjoy 3-in-1 membership to access BAM’s field guides and other value added benefits such as our home builidng industry specific construction contracts. Thank you to BAM members who are genersouly donating their time to help perfect the members-only guides. Thank you to Daniel Buuck, Clay Dietrich, Jon Coty, George Cundy, Terry Hammack, Chad Kompelien, Keith Kylmala, Kevin Maleska, John McGuine, Trace Mills, Monte Mraz, Kathe Ostrom, Mike Paradise, Craig Plekkenpol, Joe Ranweiler, David Werschay, and Howie Zetah. We will keep you updated on news from DLI about the new codes timeline. BAM will be releasing the field guides starting with the “Top 20” Residential and Energy Codes Field Guides at the end of the summer with the remainder released far in advance of the January 24, 2015 code enforcement date.

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

Committee Updates EDUCATION COMMITTEE CHAIRPERSON: VACANT This committee is currently meeting to plan our education seminars for this winter. The first round of CE classes to continue holding your Lead Certification is this year. We will be offering these classes later this Fall for members renewing Lead Certification in December and again in the Winter for those renewing in April 2015. Regular CE credit classes will be held in January, and February. If you have any suggestions for presentations or speakers, please call the office and talk to Rebekah.

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. 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 July 2014 | 15

��

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July Summer Outing Wednesday, July 16th, 6 - 8 PM Wildwood Sports Bar & Grill 1517 16th Street SW, Suite C Program:

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Remodelers

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Rochester Building Permits New Residential Single Family Dwelling

2014

VALUATION

2013

VALUATION

5,531,411

7,133,572

April 2014

Single Family Homes January

2005

2006

2007

2008

2009

2010

2011

2012 2013

2014

Townhome Dwelling

February

Two-Family Houses

March

April

Multi-Family Bldgs

Manufactured Home

Existing Residential Deck Addition

May TOTAL

107,504

286,615

Room Addition

278,763

82,000

Porch Additions

Other Additions

43,200

129

113

August

September

371,975

325,798

November

810

December TOTAL

702

506

417

302

274

200

191

299

326

113

*total may differ as permits may have been voided.

New Commercial Assembly (Church)

Assembly (General)

Assembly (Restaurant/Bar)

1,561,000

700,000

Business

225,000

Education

Factory/Industrial

Institution

Mercantile

Miscelaneous

Utility (General)

130,000

3,850

Residential (Care/Assisted Living)

Storage (General)

45,000

Storage (Warehouse)

532,594

Existing Commercial 8

5,812,413

15,406

5,984,762

34,644,913

Structural Shell

“White Box”

15,000

Interior Demolition Only

48,500

16,706

Other Phased Permits

Business Signs

106,565

15,224

Advertising Sign

18,000

Footings & Foundations

220,000

Demolition

Other Construction

www.RochesterAreaBuilders.com 18 | July 2014

109

Addition

516,115

Alterations

342,255

169,000

113,000

30 119

Alterations

50 172

July

Basement Finish

Multi-Family Alterations

69 234

June

October

Multi-Family Addition

77 258

Year To Date Statistics 2014 VALUATION

NO.

2013 VALUATION

Building Permits Issued to Date

881

147,003,028

825

100,011,030

Single Family Dwelling

109

26,968,957

130

30,405,563

3,702,052

Trade Permits Issued to Date

2,978

30,568,713

2,326

27,697,853

Electrical

1,050

13,657,783

878

15,240,984

103

30,950

115

29,700

Mechanical

731

6,606,354

685

6,221,377

Gas Piping

198

417,331

185

141,995

Fireplace

163

417,589

148

344,814

Multi-Family Buildings Total Units: 39

Electrical (Temp. Service)

Hydronic System Plumbing

Total Permits YTD

3,689,975

1,105,942

664

5,748,731

653

4,613,041

3,859

177,571,741

3,151

127,708,883

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 2014 New Residential Single Family Detached

NUMBER

VALUATION

1,263,500

142,000

55,113

New Commercial Commercial

Basement Finish

3,600

Alterations

5,800

Accessory Building

5,000

Pine Island

Building Permits MARCH 2014 New Residential Single Family

Alterations Reroof

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 2014

March 2013

% Change

311 1,087

320 1,195

-2.8% -9.0%

173 128 312

212 144 342

-18.4% -11.1% -8.8%

158,000

153,150

3.0%

100 -19.00%

110 -21.82%

Information and downloads available at South East Minnesota Association of REALTORSâ&#x20AC;&#x2122; NUMBER

VALUATION

402,000

15,000

Existing Residential Deck Addition

March 2014 Monthly Housing Data

Existing Residential Deck Addition

Rochester Real Estate Monthly Housing Data

49,000

50,000

10,000

Website: http://semnrealtors.org/general/stats_market-trends.html

Information Provided By:

Existing Commercial Reroof

Www.RochesterAreaBuilders.com July 2014 | 19

Economic Forecast for 2nd Half of 2014:

Increasing Momentum, Reduced Headwinds Elliot Eisenberg, Ph.D. Despite GDP growth stalling in Q1 due to the Polar Vortex, slower inventory accumulation and mildly lower exports, the economic recovery remains intact. The anemic performance of the US economy from January through March was aberrant, and the incoming employment, manufacturing and consumer spending data all point to an economic pickup. GDP growth the rest of the year should average 3%, with growth in Q2 closer to 3.25% as the economy rebounds from the harsh winter. In addition, reduced fiscal drag from DC, increased hiring and spending by state and local governments, and increased corporate spending on plant and equipment suggest we are finally entering a period of faster growth. That said, economically all is not well. Wage growth remains anemic and while the unemployment rate is 6.3%, down from 10%, the fall is largely due to a decline in the labor force participation rate. The ranks of the long-term unemployed remain elevated, along with the number of those working part-time because they can’t find full time work. Add to that average overtime hours that are remarkably high and termination rates that are very low and what you have are employers very reluctant to hire. This situation cannot persist, and of late job creation numbers have been on the upswing. Therefore, net job creation will rise from 200,000/month, where it has been for the past year, to 220,000 or 225,000 by year end and unemployment will probably fall to 6.1%. I expect wage growth to start picking up steam in 2015. The biggest drag on the economy is housing. After a promising first half of 2013, the housing market is, at best, flat. While rising interest rates and home prices, a lack of inventory and lots, shortages of materials and labor, and a lack of credit and first-

time buyers play a part, weak household formation is the main culprit. After averaging over 1.2 million in the years prior to the Great Recession, household formations have been averaging 500,000 since the end of the recession. The good news - household formation will rise now that all eight million jobs lost during the recession have been ﬁnally made up. We are no longer making up lost ground. Because of this, new single-family construction activity in 2014 will reach 700,000, with multifamily adding 350,000, while existing home sales should be down slightly from last year. As for inflation, it’s benign. No matter how measured, there is no inﬂation to speak of in the US. Commodity prices will remain well-behaved given weak demand due to economic slowing in China and weak growth in Europe and the developing nations. Absent some sort of geopolitical crisis, energy prices will remain where they are thanks to record US oil production. As a result, expect tapering to end in November and for the Federal Reserve to begin raising short-term interest rates by mid-2015. However, long-term rates have bottomed and 10-yr Treasuries will end the year at about 3% as the economy steadily strengthens. In short, the economy is improving and Q1 was a speed bump. Long term rates will rise, short-term rates will remain unchanged, and housing will limp into 2015, with prices rising slightly. Most critically, household formation will strengthen and corporate, state and local government spending will rise. Lastly, the likelihood of a recession during the next six months is virtually zero.

Elliot Eisenberg, Ph.D. is President of GraphsandLaughs, LLC and can be reached at Elliot@graphsandlaughs.net. His daily 70 word economics and policy blog can be seen at www.econ70.com.

www.RochesterAreaBuilders.com 20 | July 2014

Membership Information

Membership Renewals

as of 5/31/14

One Year

Alpha Video & Audio GulfEagle Supply

2013 2013

Two to Four Years

The Design Connection Hammer Homes, Inc. Steel Constructors, Inc.

2012 2011 2011

Five to Nine Years

King’s Flooring, LLC Turtle Creek Construction, Inc. The Blue Book of Building & Construction Bruce Bucknell Construction, Inc. McGough Construction Schoeppner, Inc. Cravath Homes, LLC, dba Accessibility Solutions Prime Time Painting of Rochester, LLC

2009 2009 2007 2006 2006 2006 2005

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

CUSTOM HOMES BY BRADLEY, INC. Rochester, MN 55901 Phone: 507- 358-8681 Contact: Brad Goeden Builder Member Residential Builder Sponsored by: None Listed

MEMBERSHIPS PENDING: NONE

2005

Ten to 19 Years

Elcor Realty of Rochester, Inc. R.J. Manemann Custom Homes DMC Plumbing & Heating, Inc. Fairway Outdoor Advertising, LLC Innovative Surfaces, Inc. Design Studio B SL Contracting

2004 2004 2003 2003 2002 2001 1998

MEMBERSHIP TOTAL: 456 RETENTION RATE: 94.3% As of 5/31/14

25 Years & More

Hentges Glass Company Larson Siding & Windows Merit Contracting, Inc. Sargent’s Landscape Nursery, Inc. C.O. Brown Agency Holt Title Guaranty Company, Inc. Palmer Soderberg, Inc.

1991 1986 1982 1977 1970 1958 1958

WE WELCOME THE FOLLOWING NEW MEMBERS IN MAY:

ULTIMATE SURFACES

1233 Eastgate Drive SE Rochester, MN 55904 Phone: 507- 258-5439 Contact: Tony Heintz Associate Member Fabricator Sponsored by: Sam Peyton, King’s Flooring, LLC

Www.RochesterAreaBuilders.com July 2014 | 21

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