Foundations - September 2014 by Rochester Area Builders, Inc.

A&A Electric & Underground, Inc. + AB Systems, Inc. + Abbco Company + ABC Supply Company, Inc. + Above All Roofing of Rochester, Inc. + Accord Electric, Inc. + Adair Electric Company + Adamson Motors + Advanced Builders & Remodeling + Advanced Builders, LLC + Advanced Building Center, Inc. + Advanced Disposal + Advantage Cabinets, Inc. + AgStar Home Mortgage Services + Alexander & Sons Builders + All Craft Exteriors, LLC + Mike Allen Homes, LLC + Allen Outdoor Solutions, LLC + All-Star Basements + Alpha Video & Audio + Altra Federal Credit Union + American Engineering Testing, Inc. + American Fence Company of MN, LLC + American Waterworks + Ames Construction, Inc. + Amirco, LLC + Andersen Windows, Inc. + Anderson Construction + Appliance Village Company + Arcon Development, Inc. + Arrow Building Center + Associated Bank + Athelon Enterprises, LLC + B&C Plumbing & Heating, Inc. + Al Barker Custom Homes, Inc. + Barrier Free Access, Inc. + Basement Water Control + Batzel Builders, Inc. + Beckley's Office Products + Beetles Bar & Grill, Inc. + Alvin E. Benike, Inc. + Scott Berberich Construction, LLC + Scott Berg Construction, LLC + Bessler Management + Beyond Kitchens, LLC + Bigelow & Lennon Construction, LLC + Bigelow Homes + K.W. Billman, Inc. + The Blue Book of Building & Construction + Bobcat of Rochester + Bob's Construction, Inc. + The Boldt Company + Bouquet Builders, Inc. + Bowman's Door Solutions + Brandrup Builders + Brauer Roofing, Inc. + Braun Intertec Corporation + Brekke Fireplace Shoppe + Bricewood, LLC + Briese Iron Works, Inc. + Bright Ideas + Brinkman Builders, LLC + Brock White Company + Tom Brogan Heating & Air Conditioning + Brooks Excavating Company, Inc. + C.O. Brown Agency + Bruce Bucknell Construction, Inc. + Budget Blinds + Building Products, Inc. + Burdick Builders, Inc. + Byrne Electric, Inc. + Cachiaras Building & Remodeling + Cambria + Carpet One + CarpetsPlus of Rochester + Castlewood Homes, Inc. + Centurion Ridge, LLC + 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 + CliftonLarsonAllen, LLP + 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 Homes by Bradley, 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 + Distinguished Homes by Mitch Hagen, LLC + DMC Plumbing & Heating, Inc. + Dolan's Landscape Center, Inc. + Donlar Construction Company + DoubleTree by Hilton - Mayo Clinic Area + DreamMaker Bath & Kitchen + Dunham Associates, Inc. + Dunlap & Seeger + JE Dunn Construction + Dura-Oak Kitchen Make Overs + 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 + 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. + Godwin Law Office + Goodin Company + Great River Overhead Door + Green Lawncare Irrigation & Service Co. + Gregor Builders, Inc. + GulfEagle Supply + Habitat for Humanity - Rochester Area + 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 + Koball's Poured Walls, Inc. + Kraus-Anderson Construction Company + Kreofsky Building Supplies + Kruger Electric, Inc. + Kruse Lumber + KTTC/KXLT-TV + Kuehn Motor Company, Inc. + Kuntz Electric, Inc. + Kwik Trip, Inc. + 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. + Low Voltage Contractors + 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 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 + On Site Companies + Otis Custom Homes, LLC + Overhead Door Co. of Olmsted County + Owner's Plumbing, Inc. + Oxi-Fresh Carpet Cleaning + Paape Energy Services + Pace International + Pahl & Kaye, Inc. + Palmer Soderberg, Inc. + Walt Pappas Construction + Paramark Corporation + Payne Company + PC Applications Consultants, Inc. + Pearson Builders, Inc. + Pebble Creek/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 motions & Apparel + ProBuild Company, ProLLC + Quality Overhead Door Company, Inc. + Quality Siding & Window, Inc. + Michael Quinn Law Office + R&M Development Company + R. Thomas Consulting, LLC + Radcliffe Homes & Remodeling + Range 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, LLC + Rochester International Event Center + Rochester Plumbing & Heating/Roto Rooter + Rochester Public Utilities + Rochester Public Works + Rochester Title & Escrow Company, Inc. + Rock Solid Retainter Ready Mix Concrete Co + Rochester Sign Service, Inc. + Rochesing 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 Builders, Inc. + SEH Yaggy + Dan Severson Builders, Inc. + Shanahan Building & Remodeling, LLC + Sherwin Williams Company + Shingobee Builders, Inc. + Sign Here, Inc. + Simonson Builders, LLC + SL Contracting + Smart Home Innovations & Engineering, Inc. + Smith Schafer & Associates, Ltd. + Solar Connection, Inc. + Somerby Golf Community + Space Concepts, Inc. + Spahn & Rose Lumber Company + Greg Speedling Contracting, Inc. + Spring Valley Overhead Door, Inc. + Stadsvold's Lawn & Landscape + Stantec + Steel Constructors, Inc. + Sterling State Bank + Stevens Heating, Inc. + Stewartville Economic Development Authority + 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 + 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 Mechanical, Inc. + Val-U-Blinds + Vector Windows + Veit Companies + Vennehjem Building Corporation + Vertical Limit Construction + Viking Automatic Sprinkler Company + Viking Electric Supply + Vision Homes & Remodeling, LLC + WA Insurance + Warners' Stellian Appliance Co., Inc. + Waste Management + Weis Builders, Inc. + Greg a publication of Wellik Construction + Wells 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

SEPTEMBER

2 01 4

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

A special offer for members only. Register now and save 2% on your Lowe’s Accounts Receivable purchases.** Plus, get free delivery on purchases of $500 or more.† To register, visit LowesForPros.com/NAHB or call 877-435-2440.

*Offer is not automatic. See store for details.**Offer valid now through 12/31/2014. Cannot be combined with any other statement discount. To be eligible for the 2% discount, you must register your NAHB membership by 12/31/2014 and make a purchase with your Lowe’s Accounts Receivable by 12/31/2014. Allow one to two complete billing cycles for your registration to be processed and for your discount to appear on your billing statement. Offer and discount provided by Lowe’s, and not GE Capital Retail Bank. Excludes Lowe’s Business Account Card, Lowe’s Consumer Credit Card, Lowe’s Visa Accounts, Lowe’s Business Rewards from American Express Card and all Lowe’s Canada Credit projects. Offer not valid on purchases made prior to registering NAHB membership at LowesForPros.com. Call 877-435-2440 for questions about this program. All purchases subject to credit approval. †Standard delivery rules apply. ©2014 Lowe’s. LOWE’S, Gable Mansard Design are registered trademarks of LF, LLC.

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News from The President August 12, 2014

Election season is now in full swing! The August primaries narrowed down the field of candidates, and with the end of summer upon us, more voters are now paying attention to the choices they’ll be making in November. RAB does not endorse candidates for any office. We do, however, ask questions of all our elected and aspiring elected officials to ensure that we know where they stand on issues important to the building industry. More importantly, though, we’ll make sure that they know where we stand on the issues, too. Your RAB staff, Board, and Government Affairs Committee work constantly to make sure that our elected officials understand the actual, real-world, “downstream” consequences of development plans, taxes, fees and regulations that they may be proposing that all too often get swept under the rug. We will be ever-vigilant about looking out for the interests of RAB members, and hope that you will get engaged this fall to join us. Someone once said that “the world is run by those who show up,” and nowhere is that more true than in the election of public officials who will be shaping building industry policy for years to come. Interesting in finding out more, or in getting involved? •

Come to our September 30th Legislative Forum! We will be inviting all candidates for city, county, and state ofﬁces to this RAB members-only event. This is your chance to hear ﬁrst-hand from the candidates themselves about their positions, and to share your opinions with them.

•

Write a letter to the editor! Don’t be afraid to let public ofﬁcials know that you helped build this city…and you vote!

•

Contribute ﬁnancially, either directly to the candidate of your choice or through the Builder’s Association of Minnesota Political Action Committee (BAM-PAC). It doesn’t matter if you donate $5 or $500; ﬁnd out where a candidate stands and make a gift that’s meaningful to you.

•

If you are really motivated, consider running for ofﬁce yourself. All candidates, regardless of position or party afﬁliation, deserve our respect for being willing to put themselves on the line. It may be too late for 2014, but our area always needs dedicated, willing public servants who understand this industry and care about our community.

Index News from the President ......................... 3 Sporting Clay Shoot.................................. 4 August Networking Night ......................... 5 Green Building Expo..............................6-7 Association Scrapbook .........................8-9 Fall Showcase Entries ...................... 10-11 Remodelers Tour Entries .......................11 On The Job ........................................ 12-14 Hey Matt! What’s up with that? .............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

Historical preservation….mandatory ﬁre sprinklers….DMC…updated development plans…single and multi-family homes…with so much going on, none of us can afford not to be involved! Rochester Area Builders will be working, campaigning, and ﬁghting every single day to make sure we have a community where you and your employees can grow, thrive, and succeed. None of us is as strong as all of us, and we hope that you will join us to make sure we have a community where everyone can enjoy the excellent standard of living, job base, and vibrant community that a strong local building industry can provide. Election Day will be here before you know it. Have a great month!

Kevin Worden 2014 RAB President

Www.RochesterAreaBuilders.com September 2014 | 3

Join us at the RAB Sporting Clay Shoot Thursday, September 4, 2014 GAMEHAVEN COUNCIL SCOUT CAMP

SCOUTING OF SOUTHEASTERN MINNESOTA

5015 Simpson Rd SE

Hours: 1:00 P.M. - 1:30 P.M. Registration and Mandatory Safety Talks 2:00 P.M. Shooting Starts 5:00 P.M. BBQ Dinner & Beer 6:00 P.M. Check Presentation to Boy Scouts, Prizes, and Rafﬂe Drawing

Presented By:

Calling all Hunters, Shooters, Outdoorsmen, or anyone looking to have a fun time with LIVE AMMUNITION! RAB is hosting our annual SPORTING CLAY SHOOT! We’ll have 20 stations, and each one is different! Teams will rotate through the stations, trying to rack up the highest score possible. Don’t miss out, sign up soon!

Click Here to Register Online! or download the registration form here.

www.RochesterAreaBuilders.com 4 | September 2014

Don’t forget to mark you calendar for the August Networking Night

Tuesday, August 26th,

at Premier Bank Rochester 3145 Wellner Dr NE Hours: 5:00 pm - 7:00 pm

WHY PREMIER? Premier is large enough to offer state of the art ﬁnancial products and services, yet small enough to give clients the personal attention they deserve. Premier’s stable lending team take the time to understand client’s needs so they are better served. Established and continuing as independent, community-oriented banks, Premier Banks continue to meet the ﬁnancial need of our clients and supply the credit necessary for local businesses and industries to grow.

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

Jeremy Bigelow, Bigelow Homes 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 Sheehan, 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

OUR MISSION

Joe Weis, Weis Builders, Inc.

To be the premier community bank in the region, and the bank of choice in each of the communities we serve. To foster long-term commercial relationships, built on trust, by observing the highest standards of corporate and social responsibility. To create value for our customers, employees, and shareholders through excellent performance, state of the art technology, and a relentless commitment to service.

PREMIER BANK IS HAPPY TO BE CELEBRATING THEIR 40TH ANNIVERSARY! Hosted By:

Premier Banks MEMBER

National Directors

Steve Buss, Cornerstone Builders & Real Estate, 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 September 2014 | 5

NEW DATE! DEADLINE EXTENDED! EXHIBITORS NEEDED! What: Green Building Expo—an event for the public When: Saturday Oct. 25th -or- Nov. 1st 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. Please reply with your registra�on and payment by October 3rd. Signature Event Sponsors

www.RochesterAreaBuilders.com 6 | September 2014

Green Building Expo Registraďż˝on Form Register by October 3rd, 2014 by emailing a scanned version of this form to Maďż˝hewL@RochesterAreaBuilders.com, or by faxing it to Rochester Area Builders at 507-280-6351. If you would like to mail in the form please mail it to: Rochester Area Builders, Inc. 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 September 2014 | 7

Association Scrapbook

July Networking Night

Thank You!

Thank you to all who attended Membership Appreciation Night at the Rochester Area Builders’ ofﬁce on July 29 Thank you Home Federal for sponsoring the beverages and Home Improvement Professionals for the tents. We would like to thank everybody for supporting BAMPAC by participating in the wine & beer tasting. We raised over $300 for PAC. If you would like to purchase a wine glass or beer ﬂight glass (with the RAB logo), there are a few left at $5 each. Sorry, at this point the glasses are empty.

GIVE AWAYS Charlie Brown, PC Applications, won a gift card to the Hubble House from RAB and the proverbial bad penny, Rick Dold, Godwin Law Ofﬁce, won “Dinner on Us” from the Post Bulletin. www.RochesterAreaBuilders.com 8 | September 2014

Member Appreciation Night!

Association Scrapbook

��

APPRECIATION Www.RochesterAreaBuilders.com September 2014 | 9

Fall Showcase of

DATES AND TIMES Friday, Sept. 12 Saturday, Sept. 13 Sunday, Sept. 14 Saturday, Sept. 20 Sunday, Sept. 21 Monday, Sept. 22

FOR THE 2014 FALL SHOWCASE OF HOMES Signs to be Picked Up 8:00 AM – 4:00 PM Entries Open to Public 11:00 AM – 5:00 PM Entries Open to Public 11:00 AM – 5:00 PM Entries Open to Public 11:00 AM – 5:00 PM Entries Open to Public 11:00 AM – 5:00 PM Signs to be Returned 8:00 AM – 5:00 PM

SHOWCASE ENTRIES # 1 Med City Builders of Rochester, LLC 60766 254th Avenue, Mantorville Home

# 11 Bigelow & Lennon Construction 6320 Mallard Drive NW Home

# 20 Craig Swanson Builders, Inc. 2710 Headland Court SW Home

# 2 Somerby Golf Community 943 Somerby Parkway NE, Byron Development

# 12 Bigelow Homes, LLC 5542 Harvest Lake Drive NW Home

# 21 Distinguished Homes by Mitch Hagen 3550 Woodstone Drive SW Home

# 3 Summit Custom Homes, LLC 943 Somerby Parkway NE, Byron Home # 4 Bigelow Homes, LLC 488 15th Ave NE, Byron Home # 5 Countryside Builders, LLC 1548 Wickford Place NE, Byron Home # 6 Derby Construction, LLC 6341 Oak Meadow Lane NW Home # 7 Wright Homes, Inc. 5897 Dogwood Court Townhome # 8 Thimijan Custom Homes, LLC 2326 Granite Circle NW Home # 9 JNS Builders 2583 Flagstone Lane NW Home # 10 Cravath Homes, LLC 6878 Larkspur Parkway Home www.RochesterAreaBuilders.com 10 | September 2014

# 13 DeWitz Home Builders 6221 51st Street NW Home # 14 Majestic Homes, Inc. 4818 Bishop Lane NW Home # 15 Exclusive Home Builders & Remodelers 3609 46th Avenue NW Home # 16 MDH, Inc. – Orchard Hills Builders 626 Gates Lane SW Home # 17 MDH, Inc. – Fox Hill Builders 1031 Fox Valley Place SW Home # 18 Meadow Lakes Builders 3890 Berkshire Road SW Home # 19 High Deﬁnition Homes, LLC 1291 Boulder Creek Lane SW Home

# 22 Penz Custom Homes, Inc. 3622 Triton Lane SW Home # 23 Chris Fritsch Custom Homes, LLC 3915 Creek View Lane SW Home # 24 Thimijan Custom Homes, LLC 5380 Scenic View Drive SW Home # 25 R.J. Manemann Custom Homes 5406 Scenic View Drive SW Home # 26 R & M Development 5448 Scenic View Drive SW Home

Sponsored By:

Www.RochesterAreaBuilders.com September 2014 | 11

�� PROJECT: KITCHEN AND BATHROOM REMODEL

CONTRACTOR: BEYOND KITCHENS, LLC HOST: KATIE DARVAL, PROJECT COORDINATOR/DESIGNER

��

REMODELING A HOME IS A UNIQUE AND MULTIFACETED CHALLENGE. IT TAKES A SPECIAL KIND OF VISION TO LOOK PAST WHAT A ROOM HAS BEEN, AND SEE WHAT IT COULD BE. IT TAKES A SPECIAL KIND OF DETERMINATION TO OVERCOME THE OBSTACLES THAT ALWAYS COME WHEN YOU’RE TRYING TO

for the homeowners. Work responsibilities for one of the couple mean clocking in from home at all hours of the night to make calls to overseas FIT SOMETHING NEW INTO A SPACE THAT WAS NOT ORIGINALLY contacts, making storage for DESIGNED FOR IT. AND IT TAKES A SPECIAL KIND OF a home ofﬁce very important. PERSONALITY TO MAKE A HOMEOWNER FEEL COMFORTABLE But the clients also wanted an WITH YOU ESSENTIALLY MOVING IN AND TURNING THEIR LIVING uncluttered look, and for the SPACE INTO YOUR WORK PLACE. overall feel of reﬁnement and elegance to remain unspoiled. Beyond Kitchens, LLC has been making those So these workday necessities challenges their business for almost 20 years. This were given space in cabinetry talented team of women is composed of owner, Diane adjoining the dining room, Quinn, CKD, Christina Jorgensen, AKBD, and Katie complete with in-drawer Darval, their project coordinator, who was kind enough outlets and USB ports, so to give me access to the project, that all of their phones, tablets and answer my questions about it. and laptops can be tucked away out of site while not The project, inside a lovely home in in use. Southwest Rochester with a striking red door that demands attention To further the goal of uninterrupted elegance, Beyond and welcomes you inside, was Kitchens went the extra mile by acquiring custom about more than just a new look outlet and switch covers made of real stone. As Katie

www.RochesterAreaBuilders.com 12 | September 2014

says, “the backsplash and lighting are the jewelry to the room.” Using these stone covers means that the outlets and switches won’t be the ﬁrst thing you notice when you enter the room. While they are beautifully made, their real purpose is not to stand out but to blend in, and to let the overall beauty of the room shine, without distraction. It’s their attention to small details like this that truly show Beyond Kitchens’ ability to create a room that not only wows you on first sight, but also ensures the homeowners will be happy with the project years down the road.

black appliances with a wall of dark wood cabinetry. They also enhanced the feeling of spaciousness by extending the tile backsplash all the way up to the ceiling above the range. Creating space, whether through i l l u s i o n o r t h ro u g h creative hidden storage, is often a necessity in older homes.

Another necessity in older homes is dealing with those unpredictable obstacles you encounter. I say unpredictable, because you never know what they’re going to be, but you can always predict that you’ll run into some. And the most common time for obstacles to show up is during demolition. Exhibit A: the Soffits. As Of course working with the homeowners, and what Katie notes, sometimes soffits are included purely as they bring to the table, is crucial. When you are a cosmetic feature. Other times, they are utilized to as building a new home, you can design a kitchen, pick a space for plumbing or electrical runs. The vision for the cabinets you like best, and then choose the flooring this project included removing the soffits and having and appliances that best accent it. Remodeling is the upper cabinets extend all the way to the ceiling rarely that simple. In this case, the kitchen already (yet another trick to add a feeling of spacious grandeur had beautiful hardwood floors that only needed to to the room). be restored. The homeowners had also recently So of course, purchased black appliances, so those needed to be following allowed for in the design as well. Katie says they Murphy’s law, decided to use off white cabinets in most of the kitchen these soffits to create a more spacious feel, while incorporating the contained piping and drains from an upstairs bathroom, meaning some significant reworking of those pipes and drains had to be done to achieve their goal. In the end, though, it was wor t the trouble. Oh, the joys of remodeling! Www.RochesterAreaBuilders.com September 2014 | 13

With all of the difﬁculty inherent in a remodeling project, it might seem like a miracle that the contractor and the homeowner are still on speaking terms by the end of it. Even if everything goes smoothly, you are still interrupting the daily routine of someone for weeks or months on end. But, having had a chance to chat with the homeowner on my last visit, after the project was complete, I can report that miracles can indeed happen! She had nothing but praise for Katie, the team at Beyond Kitchens, and all their subcontractors. I, too, think the project was beautifully done, and I’m happy to have been invited into their home! If you’d like to see more of Beyond Kitchens, LLC’s work, you can check out their website at www. beyondkitchens.com, and make plans to visit their Remodelers Tour project, located at 923 10th St SW, on September 13th and 14th. ��

��

Other RAB members who worked on this project include: • Brandrup Builders

• Innovative Surfaces

• Bright Ideas

• Larry Newman Drywall

• Creative Hardwood Floors

• Kuntz Electric, Inc.

• DeGeus Tile & Granite

• Top Shop of Rochester, Inc.

• Ferguson Enterprises

www.RochesterAreaBuilders.com 14 | September 2014

��

“Hey Matt, what can you tell me about the current crop of local candidates?” It’s August. That means that summer is coming to a close, department stores have had their “back-toschool” sections of their stores open for 6 weeks, and election season is just ramping up. This year we have a variety of elections taking place in Rochester. Mayor, City Council, School Board, Senator, Governor, US House of Representatives, and State Auditor, just to name a few. In this month’s edition of HMWUWT, I will attempt to give you a little background on each of these races. MAYOR This race was a little more crowded just a couple days ago. There were three candidates, Mayor Brede, Cindy Maves, and Stephanie Kilen. On August 12, during the primary election, Mayor Brede and Cindy Maves were the top two vote getters and will proceed to the General Election in November. Brede received 4,757 votes, Maves 2,473, and Kilen 1,926. Look for the big issue in this election to be governmental spending since Maves used to head the Tea Party Patriots in Rochester. CITY COUNCIL WARD 3 This was another race that whittled down to two candidates during the primary. Incumbent Bruce Snyder received 375 votes, Vickie Anderson 188 and Nick Campion 564. Campion and Snyder both advance to the general election. Ward 3 is generally considered to be NW Rochester, so make sure to check which ward you live in! SCHOOL BOARD SEAT 5 Jean Marvin advanced out of the primary with 40% of the vote. Terry Throndson received 33% of the vote to also advance. Nora Dooley with 20% and Matthew Halleck with 7% both failed to advance to the general election.

SENATOR Senator Al Franken won his primary, not surprisingly, to advance as the Democratic candidate in the general election. Also not surprisingly, Mike McFadden won the Republican ticket and will challenge Franken in November. GOVERNOR Jeff Johnson won the Republican primary to challenge Governor Mark Dayton in November. Both candidates have ties to Rochester. Jeff Johnson’s running mate is former Rochester law-maker Bill Kuisle. Mark Dayton’s running mate Tina Flint Smith is currently the chair of the Destination Medical Center Corporation. US House of Representatives District 1 Blue Earth businessman Jim Hagedorn pulled off the upset of the primary when he defeated the Republican party-endorsed candidate Aaron Miller. Hagedorn will challenge the incumbent Democrat Tim Walz in November. STATE AUDITOR I know what you are thinking, why do we care about the State Auditor race, and what does the State Auditor do? Well, the State Auditor is charged with overseeing more than $20 billion spent annually by local governments in Minnesota. The State Auditor does this by performing audits of local government financial statements and by reviewing documents, data, reports and complaints reported to the Office. The reason this race is interesting to me is because of the politicking that took place before the primary. Democrat Matt Entenza, bypassed the DFL convention and filed to run after the incumbent Rebecca Otto received support from the DFL party. Otto defeated Entenza by a 80-20 margin. Otto will face Republican Randy Gilbert in November, amongst a slate of other candidates. LEARN MORE! As always, Rochester Area Builders will be holding our candidate social on September 30. Make sure to come on down to mingle with the candidates and pick their brains about issues that important to you. If you have any questions about the upcoming elections, or anything at all, feel free to email me or give me a call at the office. Thanks!

Matt Www.RochesterAreaBuilders.com September 2014 | 15

BAM Update:

August 2014

They’re Here What We’re The new codes are (ﬁnally) out. Following a mutli-year process to promulgate the 2012 Doing For You: International Building Code, the Minnesota Department of Labor and Industry (DLI) has ofﬁcially 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 | September 2014

published the ﬁnal language for the Minnesota Building Code. With the ﬁnal language in hand, the Builders Association of Minnesota (BAM) is adjusting and completing seven code guide documents that will be provided to members-only in September. The code is slated to be enforced starting January 24, 2015.

Membership with the builders association is the only way to obtain a copy of these documents, and as such, BAM will be promoting the code guides – and membership – to all 13,000 licensed contractors. If interested in promoting your company statewide these code guides still have sponsorships available. More at www.bamn.org/sponsorship-opps. Contact Remi Stone at remi@bamn.org or Katherine Nielsen at katherinen@bamn.org with any questions. Creating the code documents is codes expert Ed VonThoma, his company Building Knowledge Inc. (BKI), and a committee including: 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. Thank you to these members for generously donating their time to help perfect the members-only guides. The seven code guide documents are: •

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

A major benefit of membership, these guides are available ONLY to members. DLI issues the codes, but BAM develops guides on how to implement the new codes. The documents will be sent to members and made available on the BAM website; optimized for both printing and easy viewing on your mobile devices out in the field. Continuing education courses based on these code guides have been assembled by BKI, who is available to teach classes around the state to help members prepare to build to the new code. Let your local association know if you’d like BKI to teach in your community. 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 building industry specific construction contracts. More benefits of BAM membership can be found online at www.bamn.org/membership.

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 AWARDS COMMITTEE CHAIRPERSON: Les Radcliffe, Radcliffe Homes & Remodeling This committee is currently meeting to look for “special” members to recognize for their achievements to the Association in 2014. They will choose a Rising Star - a member who has been very active in their first three years of membership, as well as nominating builders and associates to receive the Builder & Associate of the Year Award and for the company who has supported the association, The Cornerstone Award,. In this month’s newsletter you have the opportunity to nominate someone whom you have noticed working extra hard for RAB. Please download the Form, fill it out, and return it to the RAB office.

FASHION SHOW Karen Blissenbach, Design Studio B

ROCHESTER AREA BUILDERS, INC.

FINANCE Carla Kilpatrick, Home Federal Savings Bank

ASKS YOU TO MAKE NOMINATIONS FOR THE

GOLF OUTING Lindsey Rippentrop, Olmsted National Bank GOVERNMENT AFFAIRS John Eckerman, The Boldt Company GREEN BUILDING Kelly O’Marro, XRG Concepts, LLC

THESE MEMBERS MUST BE: � DEDICATED TO THE BUILDING INDUSTRY � ACTIVE PARTICIPANTS OF THE ASSOCIATION � ENTHUSIASTIC!

HOME SHOW – 2014 Jennifer Maass, Gerhards 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

The recipients of these three awards will be chosen by the Board of Directors at their December meeting and will be awarded at the January General Membership Meeting.

Previous Winners - Builders:

1992 1994 1997 1999 2002 2005 2008 2011

Robert Gill and Richard Hanson and Joe Weis 1993 Roger Lubahn 1995 Jay Burke 1996 Les Radcliffe 1998 Bob DeWitz and Mark Stinson David Higgins 2000 Jackie Hanson 2001 Gary Zander 2003 John McGuine 2004 Steve Buss 2006 Mike Hortop 2007 Jay Burke 2009 Kevin Reckinger 2010 Mike Larson 2012 Kathy Einck 2013

Don Soderberg Mary Moylan Bill Tointon Julie Timmerman Brent Buchan Karin Buechler Brent Buchan John Eischen Tony Joseph Jennifer Maass

1987 1990 1993 1996 1999 2002 2005 2008 2011

Previous Winners - Company:

2009 2012

Aaron Benike Mike Coats Jodi Hruska Paul Gregor Les Radcliffe

CLICK HERE TO DOWNLOAD

Previous Winners - Associates:

1985 1989 1992 1995 1998 2001 2004 2007 2010 2013

Frank Kottschade Dan Severson

Energy Products & Design Wendland Utz

2010 2013

Robert Suk Craig Wendland Wayne Lewis John Arnold Kim Zimmer Dennis Hanson Jim Gander Wayne Eisen Patty Hanson

1988 1991 1994 1997 2000 2003 2006 2009 2012

Knutson Construction 2011 Home Federal Savings Bank

Jim Buchan Ron Bailey Donna Scott Herriot Steve Christopherson Julie Praus Carla Kilpatrick Brian Carlson Jennifer Maass David Kane

Minnesota Energy Resources

Current President and Vice-President are not eligible for selection. I Nominate

Reasons for Nomination

I Nominate

Reasons for Nomination

I Nominate

REMODELERS TOUR Karen Blissenbach, Design Studio B

Www.RochesterAreaBuilders.com September 2014 | 17

�� construction fashion expose

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�� www.RochesterAreaBuilders.com 18 | September 2014

Members

2014 Commercial Builders Council

116 Members as of 6/30/14 Kwik Trip, Inc. AB Systems, Inc. Leitzen Concrete Accord Electric, Inc. Products, Inc. Advanced Disposal Marvin Windows & Alpha Video & Audio Doors Alvin E. Benike, Inc. Mavo Systems, Inc. BEVCOMM The Blue Book McGhie & Betts - a of Building & Division of WSB & Construction Associates, Inc. The Boldt Company McGough Construction Braun Intertec MEC Construction, Inc. Corporation MEP Associates Briese Iron Works, Inc. Merchants Bank Brock White Company Merit Contracting, Inc. C.O. Brown Agency Midwest Walls, LLC Cambria Minnesota Energy Carpet One Resources Corporation Charter Minnwest Bank Communications/ Nickelson Painting, Inc. Media North Star Stone & Chosen Valley Testing, Masonry Inc. Olmsted National Bank Clayton Thomas Blinds On Site Companies of Rochester Palmer Soderberg, Inc. Pella Windows & Doors Construction People’s Energy Partnership Cooperative CRW architecture + Pompeii Painting, Inc. design group, inc. Custom Alarm/Custom Prehn Building Sales, Communications, Inc. Inc. D2E, LLC Premier Bank Rochester Donlar Construction ProBuild Company, LLC Company Reliable Contractors, Doyle Conner Company Inc. Dunham Associates, Rochester Area Inc. Appraisals, LLC Dunlap & Seeger Rochester Area Econ. JE Dunn Construction Development, Inc. Eastwood Bank Rochester Public eci, llc Utilities Elcor Construction, Inc. Rochester Ready Mix Energy Products & Concrete Co Design, Inc. Rochester Sign Service, Enventis Inc. Expert Insulation, Inc. Rochester Title & Fat Willy’s Bar & Grill Escrow Company, Inc. Ferguson Enterprises RSP Architects Gerhards Ryan Electric, Inc. Goodin Company Schoeppner, Inc. Haley Comfort Systems Schwab, LLC (Authorized FireSide Schwickert’s Tecta Dealer) America, LLC W.L. Hall Company SEH Yaggy HDR Architecture Stantec Heartman Insurance Sterling State Bank HGA Architects and Structural Design Engineers Group, Inc. Hiller’s Flooring America Superior Mechanical HiMEC at Home Tamarack Materials of Home Federal Savings Rochester, Inc. Bank Think Mutual Bank Home Improvement Tonna Mechanical, Inc. Professionals, Inc. TSP Architects & Hunt Electric Engineers Corporation United Rentals Institute for The Urban Studio, LLC Environmental Valor Mechanical, Inc. Assessment Veit Companies P.A. Johnson Vertical Limit Construction, LLC Construction K&M Glass Company Viking Automatic Kane & Johnson Sprinkler Company Architects, Inc. Viking Electric Supply Key Builders, Inc. Weis Builders, Inc. Knutson Construction Wells Fargo Bank Services Minnesota NA Komitt Concrete, Inc. Wendland Utz Kraus-Anderson West Bank Construction Company WHKS & Company Kreofsky Building WHV, Inc. Supplies Widseth Smith Nolting Kruse Lumber Kuntz Electric, Inc.

C OMMERCIAL C B UILDERS

OUNCIL

a division of Rochester Area Builders, Inc.

August MEETING DATE: Wednesday, August 6th, 2014 TIME: Registration & Networking at 7:00 A.M.

Program at 7:30 A.M.

PLACE: Ramada Hotel & Conference Center PROGRAM: World Fair 2023 SPEAKERS: Mark Ritchie, Minnesota Secretary of State EXECUTIVE COMMITTEE Chairperson: Chris Terry, Knutson Construction Services Vice Chairperson: Nick Leimer, KrausAnderson Construction Company Past Chairperson: Sue Hanson, Rochester Title & Escrow Company, Inc. Members-at-Large: John Hill, Schwab, LLC Shaun Knode, AB Systems, Inc. John Kuntz, Kuntz Electric, Inc. Levi Kaiser, A.E. Benike, Inc. Matt Mohs, WHKS & Company Mike Nordstrom, Superior Mechanical

New Member Clayton Thomas Blinds of Rochester Darlene Drew 2400 Country Club Rd SW Rochester, MN 55902 507-258-4457

August Meeting Photos

Www.RochesterAreaBuilders.com September 2014 | 19

Rochester Building Permits New Residential Single Family Dwelling

2014

VALUATION

2013

VALUATION

7,389,265

9,441,463

July 2014

Single Family Homes January

2005

2006

2007

2008

2009

2010

2011

2012 2013

2014

Townhome Dwelling

1,224,172

February

Two-Family Houses

Multi-Family Bldgs

March

Manufactured Home

April

May

June

201

192

Existing Residential Deck Addition

283,519

160,271

July

Room Addition

85,012

177,306

TOTAL

397

329

275

178

139

128

102

180

Porch Additions

8,000

39,494

August

Other Additions

38,500

23,940

September

Basement Finish

240,045

323,650

October

Alterations

234,327

281,947

November

31,620

December

151,160

4,615,400

702

506

417

302

274

200

191

299

326

Multi-Family Addition Multi-Family Alterations

New Commercial Assembly (Church)

Assembly (General)

2,720,000

Assembly (Restaurant/Bar)

Business

Education

Factory/Industrial

Institution

Mercantile

580,000

Miscelaneous

Utility (General)

90,000

Residential (Care/Assisted Living)

Storage (General)

Storage (Warehouse)

Existing Commercial Addition

4,313,000

1,214,050

4,451,261

6,158,997

Structural Shell

“White Box”

Interior Demolition Only

2,017,000

54,800

Other Phased Permits

6,700

Business Signs

10,630

87,202

Advertising Sign

Footings & Foundations

76,000

1,100,000

Demolition

Alterations

Other Construction

www.RochesterAreaBuilders.com 20 | September 2014

TOTAL

192

*total may differ as permits may have been voided.

Year To Date Statistics 2014 VALUATION

NO.

Building Permits Issued to Date

2013 VALUATION

1,280

149,430,856

Single Family Dwelling

186

45,041,027

201

47,362,534

Multi-Family Buildings Total Units: 39

3,702,052

Trade Permits Issued to Date

4558

46,616,612

4,145

40,187,782

Electrical

1573

20,801,155

1,355

18,804,490

159

46,875

188

39,500

Mechanical

1187

12,309,661

1,078

10,781,042

Gas Piping

317

546,576

286

263,280

Fireplace

237

629,268

215

506,084

Electrical (Temp. Service)

Hydronic System Plumbing

Total Permits YTD

1,377 199,056,393

NO.

4,005,425

3,097,653

991

8,277,652

954

6,695,793

5,935

245,673,005

5,425

189,618,638

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

Byron

Building Permits JUNE 2014 New Residential

NUMBER

VALUATION

1,991,399

89,470

Deck Addition

41,847

Basement Finish

12,000

Garage

2,267

Accessory Building

11,500

Single Family Commercial Addition

March 2014 Monthly Housing Data

Existing Residential

Pine Island

Building Permits JULY 2014 Existing Residential

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

March 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

Sprinkler System

5,000

Residing

5,000

Reroof

25,000

Deck

6,000

Mechanical

1,000

Garage

20,000

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

Information Provided By:

Www.RochesterAreaBuilders.com September 2014 | 21

All Bubbles Are Not + + + + + + + + + + Created Equal + + + + + + + + + + + + + + + + + Elliot Eisenberg, Ph.D. + + + + + + + + + + + + + + + + + + + In early 2000, the S&P 500 hit 1,553 and the techheavy NASDAQ surpassed 5,000. Two years later the S&P was at 768 and the NASDAQ was at 800! In the process, $6 trillion in household wealth was wiped out. We now call that period the dot-com bubble. About half a decade later, we experienced the housing market bubble. Interestingly, the value of residential real estate destroyed during that crisis was also about $6 trillion. Yet the dot-com bubble resulted in a mild recession while the housing bust lead to the Great Recession. What was different? It turns a major culprit was which households suffered the destruction of wealth.

and limited assets. To compensate, these Alt-A and subprime buyers borrowed heavily with their now highly levered house being their major ﬁnancial asset. For example, among the poorest quintile of the population, 80% of their net worth is in their house. Even among the middle quintile, home equity is still 60% of their net worth. By borrowing so much, just a small decline in house prices could put these buyers upside down and wipe them out. Which is exactly what happened and is what turned a recession into the Great Recession. Between 2007 and 2010 the bottom 20% of the population saw their net worth fall from about $30,000 to zero.

To set the table, ponder this: During the housing bust, retail spending fell 8% from 2007 to 2009, one the largest drops ever. By contrast, retail spending increased by 5% between 2000 and 2002. Clearly, the losses sustained during the dot-com bust had minimal impacts on household spending decisions and thus on the overall economy. Here is why.

By contrast, the ﬁnancial losses sustained during the dot-com bubble were essentially walled off and had relatively little effect on the overall economy. This is because stock ownership is concentrated among the wealthy. As the wealthy have less debt and more assets, they could essentially shrug off the much larger ﬁnancial losses they sustained yet not have them alter their day-to-day spending decisions. Among the wealthiest 20% of the population, home equity represents just 25% of their net worth. Moreover, depression-era federal laws make it hard to borrow more than 50% of the cost of stock purchases, thereby limiting the potentially negative role of leverage.

The decline in home prices that began in 2007 was highly concentrated among households with very limited ﬁnancial resources. As a result, these now much-poorer households dramatically pulled back on spending and in the process unwittingly helped usher in the Great Recession. Remember, retail spending is about a quarter of GDP, so a decline of 8% over two years reduces GDP by 2% -- a huge amount. It is as if these poorer households were the transmission mechanism through which the Great Recession got its energy. Exacerbating and reinforcing this downward spiral was the role of debt or leverage. Remember, by 2004 or 2005 a large percentage of ﬁrst-time home buyers had low FICO scores, sketchy employment histories

In short, the home buyers who bought in 2004 and 2005 had limited wealth and had more of it at risk than earlier home buyers. When the music stopped they were highly levered and wholly unable to protect themselves. That quickly resulted in (among other things) reduced spending, which shrank GDP and quickly cascaded into the Great Recession.

+++++++++++++++++

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 | September 2014

Membership Information Membership Renewals

as of 7/31/14

Two to Four Years

Kraus-Anderson Construction Company Electrical Solutions & Service Energy Panel Structures Lowe’s Home Improvement Minnwest Bank RCTC Carpentry Program Reynolds Design and Construction

2012 2011 2011 2011 2011 2011 2010

NEW APPLICANTS: The ﬁrms listed below have applied for membership in Rochester Area Builders, Inc.

NONE

MEMBERSHIPS PENDING: NONE MEMBERSHIP TOTAL: 451 RETENTION RATE: 92.9% As of 6/30/14

Five to Nine Years

Great River Overhead Door Meadow Lakes Builders Rochester International Event Center The Urban Studio, LLC Hunt Electric Corporation Otis Custom Homes, LLC Larry Newman Drywall Pahl & Kaye, Inc. Synergy Products Tradesmen International, Inc.

2007 2007 2007 2007 2006 2006 2005 2005 2005 2005

Ten to 19 Years

Greg Wellik Construction Morris Concrete, Inc. A&A Electric & Underground, Inc. Advanced Disposal Knutson Construction Services Tag’s Drywall, Inc. Ronningen Rooﬁng, Inc. Ferguson Enterprises

2004 2004 2003 2002 2002 2001 2000 1998

20 to 24 Years

Bright Ideas Hirshﬁeld’s Decorating Center Brock White Company Dan Severson Builders, Inc.

1993 1993 1991 1991

25 Years & More

Gerhards Express Employment Professionals Townsquare Media Rochester Smith Schafer & Associates, Ltd. Hayﬁeld Window & Door Company Quality Overhead Door Company, Inc. Energy Products & Design, Inc. Tom Brogan Heating & Air Conditioning Alvin E. Benike, Inc. Pella Windows & Doors Northern Lights & Furnishings Wells Fargo Home Mortgage Alexander & Sons Builders

1988 1985 1983 1982 1981 1981 1980 1980 1979 1978 1976 1964 1962

WE WELCOME THE FOLLOWING NEW MEMBERS IN AUGUST: CLIFTONLARSONALLEN, LLP 7389 Airport View Drive SW, Suite 100 Rochester, MN 55902 Phone: 507-280-2300 Contact: Paul Alberts Associate Member Accounting/Consulting Sponsored by: Joel Alberts, A&A Electric & Underground, Inc. DISTINGUISHED HOMES BY MITCH HAGEN, LLC 3015 18th Avenue SW Rochester, MN 55902 Phone: 507- 951-1962 Contact: Mitch Hagen Builder Member Residential Builder & Remodeler Sponsored by: Brandon Vagt, XRG Concepts, LLC LOW VOLTAGE CONTRACTORS 4200 West 76th Street Minneapolis, MN 55435 Phone: 952-835-4600 Contact: Cathy Trast Associate Member Fire & Life Safety Integrated Systems Service Provider Sponsored by: John Eckerman, The Boldt Company PACE INTERNATIONAL 3582 Technology Drive NW Rochester, MN 55901 Phone: 507-424-4900 Contact: Jim Westra Associate Member Commercial Satellite & Cable Television Products Sponsored by: Jay Burke, Heartwood Homes of Rochester, Inc.

Www.RochesterAreaBuilders.com September 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