Foundations - May 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 + 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 + 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 + 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 + Excel Homes + The Excelsior Group, LLC + Exclusive Home Builders & Remodelers + 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 tion Services, Inc. + Kirkland Enterprises, LLC + Kitchen Concepts + Williams Premier Realty + Key Builders, Inc. + King's Flooring, LLC + Kinzler ConstrucThe Kitchen Design Studio + Kitchens Plus + Gary Kline Roofing, Inc. + Knutson Construction Services + Koball's Poured Walls, Inc. + KrausAnderson Construction Company + Kreofsky Building Supplies + Kruger Electric, Inc. + Kruse Lumber + KTTC/KXLT-TV + Kuehn Motor Company, Inc. + Kuntz Electric, Inc. + Kwik Trip, Inc. + L&L Cabinets + Lacina Siding & Windows, Inc. + Laitala Tile Company + Larsen Industries, Inc. + Larson Siding & Windows + 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 + M a s s e y 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 chants Bank + Merit Contracting, Inc. + Michael's Custom Cabinets, - South + MEP Associates + MerInc. + 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 + On Site Companies + Otis Custom Homes, LLC + Overhead Door Co. of Olmsted County + Owner's Plumbing, Inc. + Oxi-Fresh Carpet Cleaning + Paape Energy Services + Pahl & Kaye, Inc. + Palmer Soderberg, Inc. + Walt Pappas Construction + mark Corporation + Payne Company + PC Applications ConsulParatants, Inc. + Pearson Builders, Inc. + Pebble Creek/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 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. + 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

2 01 4

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.

HOOK UP

BEST VALUE with the

ENERGY

WE’RE HERE TO HELP.

Natural gas is a great energy

value. Xcel Energy can help you with all of your energy-related building needs including natural gas and electric. We even offer rebates for qualifying natural gas appliances. Contact us today and ﬁnd out how we can help you.

xcelenergy.com/EnergyPartners

Visit xcelenergy.com/EnergyPartners today, call 1-800-628-2121 or fax 1-800-628-2521.

13-XCL-00255-B_MNB_HookUp(Combo)_7.3125x4.75_4c_LO.indd 1

www.RochesterAreaBuilders.com 2 | May 2014

5/6/13 3:21 PM

News from The President April 21, 2014

Fellow RAB Members: Do you remember your ﬁrst car? Of course you do!

My friends and I called mine the “Blue Beater,” and it featured both a trunk that filled with tremendous amounts of water every time it rained, and ignition keys that could be removed while the car kept running. In it, I survived my first (and several subsequent) Chicago rush hours, driving from Minnesota to Michigan to visit the woman who later became my wife, in her hometown. We tempted fate by traveling across the country, on more than one occasion, in driving conditions that the Blue Beater had no business traveling through. Another friend of mine lost his rear bumper, and replaced it with a 2x6 wooden board that he bolted into the frame of his vehicle. But, as always, life moved on. Tina and I graduated, got married, and got our first “real jobs.” The day the muffler fell off of the car, clanging to a stop in the middle of I-35 as we careened along at highway speed, we knew that the time had come. The Blue Beater had to go. Now picture this, as I prepare to sell the car: “Wait!” cry my neighbors. They’ve enjoyed seeing our quaint car in the driveway for so many years, and they don’t want us to part with it. Our car reminds them of an era, tinted by selective memories, as a simpler time, unencumbered by modern challenges and struggles. We must not sell the car, we are told; the fact that it no longer suited our needs and neared the end of its functional life was of no concern. Folks, this is exactly what is happening to the efforts of some in our region to build modern structures with the future in mind, using the latest techniques in energy efficiency, accessibility for people with disabilities, safety, and convenience. The rights of property owners to utilize, build, tear down, or transfer ownership of their property, within appropriate boundaries as set by elected officials, is their prerogative. I respect the past, but it should be used to inform the future, not restrain it. Just as the “good ol’ days” weren’t always as good as we remember (particularly if you were a woman who wanted to vote, or a person of color); the “Blue Beater” wasn’t really that terrific of a car. I’m glad that I now own a vehicle that doesn’t soak our luggage every time it rains. My friend no longer shops for bumpers at a lumberyard (with apologies if they were a Builder member!). I remember the Blue Beater fondly, though, and will for the rest of my life. But I don’t need it sitting in my driveway to keep these memories! Let’s put the future first, honoring those whose sweat and labor earned the ability to acquire property, and giving them the chance to use it as they deem best within our current laws and codes. Never doubt the positive outcomes that free markets and free people can create. After all, it got us to where we are today.! Have a great month, and thanks for reading.

Kevin Worden 2014 RAB President

Index News from the President ......................... 3 Thank Yous ............................................... 3 Studs, Struts & Stilettos .......................... 4 April General Membership Meeting ........ 5 From the Director’s Desk ......................... 6 RAB Golf Outing ........................................ 7 Association Scrapbook .........................8-9 On the Job......................................... 10-11 Hey Matt! What’s up with that? ....... 12-13 Public Works Dept. News ................. 14-15 BAM Update ............................................ 16 Committee Updates ............................... 17 Remodel It Right News ..........................18 Commercial Builders Council ................19 Rochester Permits ..................................20 Byron/Pine Island Permits ..................... 21 Real Estate Data .................................... 21 Elliot Eisenberg Article ...........................22 Membership Information .......................23 NAHB Member Discounts ...................... 24 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!

March Networking Night Thank you to Producers Council Midwest for hosting the March Networking Night at the Events by Canadian Honker at the Ramada. Members enjoyed viewing the new product displays and the food was awesome! A special thank you to Ken Modeen, Marvin Windows for planning for this fantastic evening.

Www.RochesterAreaBuilders.com May 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 | May 2014

Join us at the April

General Membership Meeting Tuesday, April 29th,

at the Rochester International Event Center 7333 Airport View Dr SW Please Note the Location!!! Hours:

5:00 pm 6:00 pm 7:00 pm

Social Hour Dinner ($13) & Announcements Game Night: BUILDER FEUD!

And the Survey Says . . . You won’t want to miss this General Membership Meeting!

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.

100 RAB members have been surveyed and the results are in. Join in on the fun as our Associate Members take on our Builder Members in RAB’s version of Family Feud! We will also be recognizing our Honorary Members at this meeting.

Social Hour Sponsor:

President

Dessert Sponsor:

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 Tour-

Productivity is Our Priority

Ryan Kling-Punt RPunt@RochesterAreaBuilders.com Golf Outing, Sporting Clays, Directory, Newsletter, E-News Update

Www.RochesterAreaBuilders.com May 2014 | 5

From The Director’s Desk Home Show by the Numbers The Home Show is two months past and we have moved on to new and exciting events. (Have you bought your Studs, Struts, & Stilettos tickets yet?) However, we have compiled some interesting information about the Home Show that we’d still like to share with you. At this year’s show, we conducted surveys of the people attending, and I thought I would share some of the results of those statistically relevant surveys.

• 28% of attendees were age 35-49

• 36% of attendees were age 50-64

• 64% came from Rochester zip codes • 22% never miss a Home Show • 54% came to research for a project or to build a new home • 85% are starting a remodeling project within the next year. • 15% are building a new home within the next year. Of those remodeling: • 26% are planning a kitchen remodel • 19% are planning a bath remodel • 10% are planning a basement ﬁnish • 8% are planning a deck or patio • 7% are planning a an addition • 7% are planning a landscape project • 23% have other projects in mind

Of those building new homes: • 16% are building homes $175,000 – 200,000 • 29% $200,000 – 250,000 • 24% $250,000 – 300,000 • 17% $300,000 – 350,000 • 5% $350,000 – 400,000 • 5% $400,000 – 500,000 • 4% $500,000 and up

I know that’s a lot of number, so for those that said “too long, didn’t read,” this info can be condensed to the following: The Home Show committee does a phenomenal job of putting buyers in front of our exhibitors. If you aren’t in the Home Show, why not? I would like to thank: Jerome Garry of Lourdes High School (and husband of RAB member Elaine Garry, Peoples Energy Cooperative) for giving us a great group of kids to help conduct the surveys; Al Mannino, Home Federal for helping to create the survey and for teaching the kids how to approach people; and of course the Home Show committee.

RAB Executive Director

www.RochesterAreaBuilders.com 6 | May 2014

Join us at the RAB Golf Outing Thursday, June 5, 2014

WILLOW CREEK GOLF COURSE 1700 48th St SW

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

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

We listened to you! The 11 AM Shotgun start was a popular change last year, so we’re bringing it back! It means you’re done earlier, so you can attend Thursday’s on First, your kids’ sporting events, or you can just go home and relax!

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

WIN A NEW CAR! Sponsored by Clements Chevrolet Cadillac Subaru This one speaks for itself! Get a hole in one on #6 and you win! Www.RochesterAreaBuilders.com May 2014 | 7

Association Scrapbook

www.RochesterAreaBuilders.com 8 | May 2014

March GMM

Career Fair at RCTC

Association Scrapbook

RAB Commercial Shoot

We shot a commercial with KTTC/KXLT-TV at the RAB OfďŹ ce this month. Our goal was to promote the building industry as a viable employment option for students and job seekers. You can check out the Commercial on our YouTube page. Here are few behind the scenes looks at RAB in front of the cameras!

Www.RochesterAreaBuilders.com May 2014 | 9

�� PROJECT: CRIMSON RIDGE TOWNHOMES

CONTRACTOR: WRIGHT HOMES, INC. HOST: EV WRIGHT, OWNER AND LICENSED BUILDER

��

EV WRIGHT IS A BUILDER WITH YEARS OF EXPERIENCE. TO SAY HE KNOWS HIS HOUSES LIKE THE BACK OF HIS HAND MIGHT BE A CLICHÉ, BUT IT’S NOT AN OVERSTATEMENT.

I visited Ev at one of his duplexes in Crimson Ridge and he gave me the tour, starting with the side that’s

nothing but bare studs on the inside. Though we were walking through the skeleton of a building, Ev made me see the home that it would soon become. He walked me through a master bath that will feature a whirlpool tub, walk in shower and granite countertop with double sinks, and then brought me through a kitchen “featuring” lustrous hardwood, more granite, and stainless steel appliances. Had I only gotten the chance to see this unfinished home, I still would have walked away with a sense of the beauty and luxury that a Wright Homes, Inc. project has to offer. But luckily for me, the other half of this duplex was completely finished, so we took a short walk next door and I saw all of the images in my head set down in terra firma. Ev always has an eye out for his customers’ needs. He describes his typical customers as professional couples and retirees, and knows they’re looking for a simple, comfortable, and impeccably finished home. Ev does everything he can to answer those needs. He incorporates simple touches, like eliminating the www.RochesterAreaBuilders.com 10 | May 2014

need for steps into the home through the garage and front door. He provides open floor plans with enough square footage to move around, but not so much that it becomes a burden to maintain. He also takes extra steps when building the sound bearing walls, which are the two walls between the duplex units. It’s not a shared wall like you’d find in an apartment or many townhouses, which is commonly known as a party wall for obvious reasons. Ev’s walls might be more properly named tranquility walls. They’re a pair of fully built 2x6 walls, sheet rocked inside and out and insulated, and further insulated by resilient sound channels, which are attached every 2’ to prevent vibrations from being carried through from one wall to the other. Ev says this treatment isn’t cheap, but it gives a huge boost to the STC (sound transmission class) rating. Speaking of cost, another thing Ev is doing for his customers is simplifying his pricing. He doesn’t like the idea of listing the price for a basic model while showing a townhome with all the amenities packed in. Instead, his pricing is “what you see is what you get.” This model that Ev is showing me is one of those packed with all of the amenities, the hardwood, the granite, the 4 season porch and finished basement, and people who walk through the doors, like they did in droves for the Spring Showcase of Homes, can see

exactly what they’ll have to pay to call it their home. I’d like to thank Ev for his hospitality, and for the unique opportunity to see the “same” house in to completely different stages of completion, all in the same afternoon. The unqualiﬁed elegance on display in Crimson Ridge is a tribute to the years of experience Ev can claim, and is an indication of more great things to come for this builder and all of the people lucky enough to claim a Wright home as their home.

Other RAB members who worked on this project include: • Expert Insulation, Inc.

• Haley Comfort Systems

• Brock White Company

• A&A Electric & Underground, Inc.

• Tile Superstore & More

• WT Lighting

• Arrow Building Center

• Warners’ Stellian Appliance Co., Inc.

• Hiller’s Flooring America

• K&M Glass Company

• Owner’s Plumbing, Inc.

• Yaggy Colby Associates

Www.RochesterAreaBuilders.com May 2014 | 11

Don’t worry about that History Quiz, we’ve got you covered with this month’s

��

It’s time for another installment of “Hey Matt, boils down to; location, character, interest, or what’s up with that?” This week’s topic is the cultural characteristics of the City, embodiment Heritage Preservation Commission (HPC). of distinguishing architectural characteristics, if someone important lived there, etc.

“Hey Matt, what is the HPC, and what The last section of criteria to designate something does it do?”

as historic is to determine whether a rehabilitation The Heritage Preservation Commission is a of the property is economically feasible. After the Mayor-appointed commission of citizens. It HPC has created the list, there will be a public was formally commissioned in 2013 after years hearing held by the city council to receive public of discussion. There are many different layers input to determine what, if any, regulations should to what HPC is. The first layer is the Heritage be enacted governing the repair, alterations, or Preservation ordinance. This can be found on demolition of such sites. the city of Rochester’s website. The ordinance establishes the creation of the commission, it must There is a special section of the ordinance that consist of 11 members nominated by the Mayor deals with what happens in the interim time and appointed by the city council. RAB recently period, the time between when the commission celebrated the nominations of Dan Groteboer was created and the time they formulated the list. and Mike Busch to the HPC (both are members). During this period, which is where we are now, the HPC is only required to meet four times a year. HPC will review demolition and exterior alteration Okay, that was the first step. We established the permits on certain properties. If a property is on commission. Now here is where it gets a little the National Register of Historic Places database, then any exterior alteration permit must go to more confusing. the commission for the recommendation to the The Heritage Preser vation Commission is council. If a demolition permit is pulled on a charged with “preparing a listing of those sites property which may be potentially designated as that would be recommended for designation as historic then that must go before the commission Heritage Preservation Sites using the criteria for their recommendation to the city council. found in section p19B.04. The Commission shall also review the availability of financial incentives The “recommendation” to the city council is to that might exist so as to encourage heritage whether or not to classify a property as having preservation.” Basically, the commission has to historic value. The city council does not approve create a list of properties that are of some historic nor deny demolition permits, that is a state value. The criteria is listed in the ordinance, but building code issue. The city council’s role is to determine whether or not the property is historic www.RochesterAreaBuilders.com 12 | May 2014

Hey Matt, what is the HPC, and what does it do? and economically feasible to rehabilitate. Then their recommendation will be sent to the state’s building official for Rochester, Randy Johnson (the Director of Building Safety).

until the April 21 meeting was to appease the efforts of a certain group of citizens of Rochester that wish to buy the building, so the city council gave them another 2 weeks to come up with the money. At the April 21 city council meeting, Whew, we got the meat of the ordinance out of the city council determined they needed even the way and explained, but here are the problems MORE time to come up with the decision for they are encountering. They spend the entire the demolition permit for the Chardonnay. They meeting time (anywhere from 1-2 hours) debating scheduled another public hearing on May 5 to whether a demolition permit should be approved, hear more evidence as to the economic feasibility leaving no time for them to formulate a list. They of rehabilitating the property. also have no funding mechanism to provide to property owners who may want to rehabilitate I hope this has been as fun for you to read this as their historic properties. Those properties that it has been for me to write it. As always, if you aren’t being rehabilitated are becoming more and have further questions about what the HPC is and more dilapidated. what it does, call the office and I will (hopefully) have an answer for you. If you have any questions, Now for the news-y part of this. Recently the ideas, or anything at all you want to talk to me owner of the Chardonnay building on 2nd ST SW about, give me a call, or email! applied for a demolition permit of his property. The demolition permit went to the HPC, where after an hour and half of comments from the public the HPC recommended denial of the demolition permit to the city council. The city council at their April 7, meeting held a public hearing as to whether or not to classify the Chardonnay as historic. The majority of the comments that were heard dealt with the economic feasibility of rehabilitating the property. The property owner said that could run anywhere from $250,000 to $400,000. That being said the city council determined it proper to delay their decision until their April 21 meeting.

Matt

��

The reason the city council delayed the decision

��

Www.RochesterAreaBuilders.com May 2014 | 13

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.

• 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.

• Local construction site standards must be upgraded to be “at least as stringent as” the MPCA’s construction storm water (CSW) permit.

• 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

• 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.

www.RochesterAreaBuilders.com 14 | May 2014

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 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 Began on April 1st. The notice is 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. 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.

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. IT’S NOT TO LATE TO MAKE ROCHESTER A LITTER BIT BETTER!  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 May 2014 | 15

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 16 | May 2014

April 2014

�� Each year, at the Minnesota legislative session mid-point, legislators go on break, which gives us an opportunity to take stock of what’s happened so far. The 2014 session has been called the “unsession” with a stated goal of streamlining government, but lots has happened. BAM has been working hard to protect the industry, and in light of session’s intermission, BAM has put together a Mid-Session Review with an overview and bill-by-bill run down of the issues that have, or could have had, impact on the residential construction industry. Session started February 25, later than usual, and already the House of Representatives has introduced 1,481 bills and the Senate has introduced 1,285 bills. The Ides of March coincided this year with deadlines at the Capitol. The first policy deadline was March 21; less than 30 days from the start of session. The second policy deadline was March 28, and the third finance committee deadline was April 4. There are an abundance of failed proposals that have been deemed “dead” in 2014 or are looking for ways to be “reincarnated” though artfully placed amendments or suspended rules. The residential construction inudstry has reaped positive outcomes, including repeal of the business-to-business sales and use taxes in addition to batting down several bills that threatened to harm your bottom line. Upon completion of session BAM will provide a full legislative report to all members. Until then, be sure to check out BAM’s Mid-Session Review with an inventory of bills the residential construction industry has been working on, along with a mid-session statuts for each. The review can found be online at bamn.org/legislation. Thank you to all who have been participating this session in making sure the industry’s voice is heard. Thank you to those who joined us at Builder Day at the Capitol March 12. We had a record turnout and met with nearly 75% of the legislature. Thank you to our Government Relations Committee members who have been meeting weekly to guide BAM’s lobbying team on critical legislative issues. The industry is very fortunate to have their time and talents. Thank you also to our brilliant, statewide lobbying team. With session half over, it’s good to know we have a rockstar team assembled. Stay tuned!

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

Committee Updates

RAB GOLF OUTING COMMITTEE CHAIRPERSON: Lindsey Rippentrop, Olmsted National Bank It’s time to mark your calendar for the RAB Golf Outing! It has been scheduled for Thursday, June 5th. We will again have an 18 hole, 11 a.m. shotgun on Willow Creek limited to the ﬁrst 144 golfers. We will have lunch on the course for all golfers and hors d’ourves at the 19th hole along with the awards ceremony. The registration form is available on our website, at http://www.rochesterareabuilders.com/documents/2014Golf-Outing-Registration.pdf.

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. 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 May 2014 | 17

��

�� construction fashion expose

��April 24, 2014 ��

��Habitat for Humanity

�� VIP Tickets ��Advanced ��at the Door

May Meeting Tuesday, May 20, 11:30 AM Rochester Area Builders, Inc. 108 Elton Hills Ln NW Program: Construction Trends: Flooring Don’t miss out as we continue our new program series, “Construction Trends in 2014.” Come to the May Meeting and prepare to be

Floored by Flooring! Don’t forget to RSVP! Please respond by 10:00 am on Monday, May 19th. You can contact the office by phone at 507-282-7698, or email Rebekah at RNielsen@RochesterAreaBuilders.com. Thank you to GulfEagle Supply for hosting the March meeting, and to everyone who attended!

��

Shop.RochesterAreaBuilders.com

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

��

www.RochesterAreaBuilders.com 18 | May 2014

��

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.

May CBC SOCIAL EVENT DATE: Wednesday, May 14, 2014 TIME: 4:00 PM - 7:00 PM PLACE: Wildwood Sports Bar and Grill 1517 16th Street SW, Suite C 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

CBC Social Event

Join us at Wildwood Sports Bar & Grill for our 4th Annual Commercial Builders Council Social Event! Socialize and network with your fellow Members in a relaxed environment! Enjoy a free meal and beer, Courtesy of our great sponsors!

Social Event Sponsors AB Systems, Inc. Brock White Company First Supply Knutson Construction Services Kraus-Anderson Construction Company Kruse Lumber Merchants Bank On Site Companies Premier Bank Rochester Rochester Ready Mix Concrete Co Rochester Title & Escrow Company, Inc. Schoeppner, Inc. Schwab, LLC Superior Mechanical Weis Builders, Inc. Widseth Smith Nolting Www.RochesterAreaBuilders.com May 2014 | 19

Rochester Building Permits New Residential Single Family Dwelling

2014

VALUATION

2013

VALUATION

7,048,978

6,716,241

March 2014

Single Family Homes January

2005

2006

2007

2008

2009

2010

2011

2012 2013

2014

Townhome Dwelling

February

Two-Family Houses

Multi-Family Bldgs

March

Manufactured Home

TOTAL

123

107

April

May

Existing Residential Deck Addition

12,500

10,400

June

Room Addition

July

Porch Additions

August

Other Additions

2,500

September

520,465

October

Basement Finish Alterations Multi-Family Addition Multi-Family Alterations

255,905

362,806

351,684

November

4,000

December

912,500

50,000

Assembly (Church)

Assembly (General)

Assembly (Restaurant/Bar)

Business

Education

Factory/Industrial

Institution

Mercantile

682,000

Miscelaneous

Utility (General)

Residential (Care/Assisted Living)

Storage (General)

Storage (Warehouse)

Existing Commercial 0

10,778,507

6,076,573

Structural Shell

Alterations “White Box”

2,000

Interior Demolition Only

300,000

126,806

Other Phased Permits

Business Signs

66,700

65,047

Other Construction Advertising Sign

Footings & Foundations

6,000,000

Demolition

www.RochesterAreaBuilders.com 20 | May 2014

702

506

417

302

274

200

191

299

326

*total may differ as permits may have been voided.

New Commercial

Addition

TOTAL

Year To Date Statistics 2014 VALUATION

NO.

2013 VALUATION

Building Permits Issued to Date

397

78,794,798

384

34,575,102

Single Family Dwelling

13,587,108

13,925,399

Multi-Family Buildings Total Units: 0

1,424

13,803,423

1,459

15,194,547

449

5,286,384

451

8,898,973

9,150

11,650

Mechanical

404

3,720,338

394

3,257,218

Gas Piping

300,796

100

94,985

Fireplace

235,115

216,066

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

Hydronic System Plumbing

Total Permits YTD

872,800

631,000

332

3,378,840

342

2,084,655

1,821

92,589,221

1,843

49,769,649

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

NUMBER

VALUATION

1,027,450

Basement Finish

81,500

Alterations

$500

Single Family Detached Existing Residential

Building Permits MARCH 2014 Single Family Existing Residential

January/February 2014 Monthly Housing Data

Pine Island New Residential

Rochester Real Estate Monthly Housing Data

NUMBER

VALUATION

455,000

NUMBER

VALUATION

Heating

3,600

Basement Finish

20,000

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 May 2014 | 21

House Hold Spending Elliot Eisenberg, Ph.D.

Before the Great Recession, household wealth peaked at $68.8 trillion or $254,600 per person. If that seems like more money than you have, it’s because wealth isn’t evenly distributed. The rich have much more of it than the poor. As a result, back in 2007 the median family had wealth of just $126,000 while the average family had $584,000. Then the recession hit, house prices plunged, stock markets cratered and household wealth hit a low of $56.6 trillion in 2009. Since then stock markets around the world have staged a remarkable recovery and house prices have been steadily recovering. As a result, household wealth now stands at $80.7 trillion, almost $12 trillion more than before the recession. So things have more than recovered, right? Not quite. Since 2007 there has been inﬂation and the US population has grown by 20 million people. As a result, inﬂation-adjusted per capita wealth is now $254,000, just a shade less than it was before the Great Recession. So we are at least back where we were before the recession hit, right? Not so fast. The problem is that the asset price recovery has been profoundly unequal and that has caused the distribution of wealth to change dramatically. And that has huge implications for the economy. Homeowner equity hit $10 trillion last quarter, and while way up from a low of $6.3 trillion in 2011, it’s nowhere near the pre-recession high of $13.4 trillion. By contrast, equities have soared and are now worth almost $23 billion, way more than their pre-recession high of $18.3 trillion. The economic kicker is that equities are primarily owned by upper-income households, while home equity is the major source of wealth for everybody else. This means that

while the rich are roughly $5 trillion wealthier than they were before the recession, all other households are about $3.5 trillion poorer. And while the upper classes spend more when their wealth increases, it’s nothing like the increase in spending that occurs when the rest of the population feels better off. A huge chunk of middle class spending is the result of tapping into home equity via cash-out reﬁnancing. Regrettably, despite rising home prices many households are still under water, credit remains harder to get than ever before, and many households now have mortgages with extremely low interest rates and are simply unwilling to tap into their home equity. As a result, mortgage equity withdrawal has nearly stopped. After peaking at $320 billion in 2006, it was just $32 billion last year, a decline of almost $300 billion, and that is the highest it’s been since 2010! In addition to the rich, another group that has done well is older Americans. Families headed by someone under 40 have on average recovered only one-third of their lost wealth, but families headed by someone middle-aged or older have recouped all their losses as more of their wealth is in stock and less in housing. And regrettably the middle-aged and the elderly, like the wealthy, are less likely to spend their capital gains than younger middle class families. As a result of the profoundly uneven wealth recovery, spending on luxury goods has done very well but ﬁrms that rely on middle class spending are not enjoying nearly as much of a renaissance. For that to change wages will have to start rising.

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 22 | May 2014

Membership Information Membership Renewals

as of 3/31/14

One Year

Abbco Company American Fence Company of MN, LLC HG Electric, LLC Price Financial Services, Inc. Range Custom Homes, LLC Smart Home Innovations & Engineering, Inc.

2013 2013 2013 2013 2013 2013

Two to Four Years

All-Star Basements eci, llc R. Fleming Construction, Inc. Advanced Building Center, Inc. Braun Intertec Corporation Burdick Builders, Inc.

2012 2012 2012 2011 2011 2010

Five to Nine Years

The Boldt Company Cordes Construction Maas Companies, Inc. ABC Supply Company, Inc. Advanced Builders, LLC Kirkland Enterprises, LLC Premier Builders of Rochester, Inc. Counselor Realty of Rochester, Inc. Dahl Home Builders, Inc. Dolan’s Landscape Center, Inc. Majestic Homes, Inc. Med City Builders of Rochester, LLC Ryan Electric, Inc.

2009 2008 2008 2007 2007 2007 2007 2006 2006 2006 2006 2006 2006

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

AGAPE CHIROPRACTIC Rochester, MN 55902 Phone: 507-226-8325 Contact: Dr. Liz Raymond Associate Member Chiropractor Sponsored by: Les Radcliffe, Radcliffe Homes & Remodeling SAWYER CONSTRUCTION SERVICES, INC. Elgin, MN 55932 Phone: 507-272-1740 Contact: Marv Sawyer Associate Member Lawn Care/Tree Service Sponsored by: Christy Buchan, Energy Products & Design, Inc.

MEMBERSHIPS PENDING: NONE

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

2001 2000 2000 2000 2000 1999 1998 1998 1998 1997

25 Years & More

Sterling State Bank People’s Energy Cooperative Brandrup Builders Woodruff Company

As of 3/31/14

2000 2000 1998 1997

20 to 24 Years

Pompeii Painting, Inc. Arcon Development, Inc. KTTC/KXLT-TV Merchants Bank Rochester Concrete Products, LLC American Waterworks CHS, Inc. Michael Quinn Law Ofﬁce Rick Yerhot Builder HGA Architects and Engineers

MEMBERSHIP TOTAL: 454 RETENTION RATE: 92.9%

1993 1987 1976 1964

WE WELCOME THE FOLLOWING NEW MEMBERS IN APRIL: EXCLUSIVE HOME BUILDERS & REMODELERS 5129 Southern Ridge Lane SW Rochester, MN 55902 Phone: 507-319-9912 Contact: Brad Nierman Builder Member Residential Contractor Sponsored by: None Listed

Www.RochesterAreaBuilders.com May 2014 | 23

National Association of Home Builders

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