Foundations - May 2015 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. + Action Plumbing, Heating & A/C + Adair Electric Company + Adamson Motors + Advanced Builders & Remodeling + Advanced Builders, LLC + Advanced Building Center, Inc. + Advanced Disposal + Advantage Cabinets, Inc. + Ag Services, Inc. + 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. + BARK.L Consulting Engineers, LLC + Al Barker Custom Homes, Inc. + Barrier Free Access, Inc. + Basement Water Control + Batzel Builders, Inc. + BBHA Rochester, LLC + 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 + Bremer Bank + Brennan Companies + 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 + 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 + Coldwell Banker Burnet + Commercial Leasing Services + Consolidated Communications, Inc. + Construction Partnership, Inc. + Coordinated Business Systems, Ltd. + Corban Homes, LLC + Cordes Construction + Cornerstone Builders & Real Estate, Inc. + Cornerstone Designs of Rochester, Inc. + Corporate Web Services, Inc. + Counselor Realty of Rochester, Inc. + Countryside Builders, LLC + Cravath Homes, LLC, dba Accessibility Solutions + Creative Hardwood Floors + Crescent Electric Supply Company + CRW architecture + design group, inc. + Culligan of Rochester & Kasson + Curry's Custom Cut Gutter, LLC + Curtin Drywall, Inc. + Custom Alarm / CCI + Custom Homes by Bradley, Inc. + Custom Retaining Walls & Landscaping, Inc. + D2E, LLC + Dahl Home Builders, Inc. + Dakota Supply Group, Inc. + Data-Smart Computers, Inc. + DeGeus Tile & Granite + Derby Construction LLC + The Design Connection + Design Studio B + Destination Building Center + DeWitz Home Builders, Inc. + DiNicola & Pestka Appraisals + Distinguished Homes by Mitch Hagen, LLC + DMC Plumbing & Heating, Inc. + Dolan's Landscape Center, Inc. + DreamMaker Bath & Kitchen + Dunham Associates, Inc. + Dunlap & Seeger + JE Dunn Construction + Dura-Oak Kitchen Make Overs + Dynamic Masonry Products, LLC + eci, llc + Eckert Construction, Inc. + ECSI System Integrators + Edel Construction, LLC + Edina Realty Home Services + Todd Eidem Construction, Inc. + Elcor Construction, Inc. + Elcor Realty of Rochester, Inc. + Electrical Solutions & Service + Elias Construction, LLC + Jason Elsmore Plumbing, LLC + Energy Panel Structures + Energy Products & Design, Inc. + 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. + Final Cut Construction + First Alliance Credit Union + First Choice Homes, LLC + First General Services of SE MN + First Security Bank + R. Fleming Construction, Inc. + FloCore + 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 - The Kitchen & Bath Store + Gift Book Plus + Robert Gill Builder, Inc. + Godwin Law Office + Goodin Company + Great River Overhead Door + Green Lawncare Irrigation & Service Co. + GulfEagle Supply + Habitat for Humanity - Rochester Area + Haley Comfort Systems (Authorized FireSide Dealer) + W.L. Hall Company + Hallmark Building Supplies, Inc. + Hammer Homes, Inc. + Hanson Construction & Specialty Cabinets, LLC + Harmony Economic Development Authority + Hartman Complete Lawncare, LLC + Hayfield Window & Door Company + HDR Architecture + Heartland Security + 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 + Holiday Inn Downtown + Holt Title Guaranty Company, Inc. + The Home Depot + Home Federal Savings Bank + Home Improvement Professionals, Inc. + Home Systems Installation, LLC + Howe Countertops + Hunt Electric Corporation + Hutch's Custom Cabinets + Int'l Brthrhd of Electrical Wrkrs Local 343 + Innovative Surfaces, Inc. + Insty Prints + 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. + Keller Williams Premier Realty + Key Builders, Inc. Kirkland Enterprises, LLC + Kitchen Concepts + The Kitchen Design Studio + Kitchens Plus + Gary + Kimley-Horn & Associates, Inc. + King's Flooring, LLC + 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 + LeafGuard Gutters & Roofing of Rochester + Legends Concrete, Inc. + Leitzen Concrete Products, Inc. + Leyendecker Homebuilders, LLC + Lodermeier's, Inc. Improvement + Luxury Bath Remodeling + Maas Companies, Inc. + Maier Tree & + Low Voltage Contractors + Lowe's Home Lawn + Majestic Homes, Inc. + R.J. Manemann Custom Homes + Manufacturer's Bank & Trust + Maplewood Homes, Marvin Windows & Doors + Massey Land Surveying & Engineering + Master LLC + Markham Homes, LLC + markit + Builders, Inc. + Mavo Systems, Inc. + McGhie & Betts - a Division of WSB & Associates, Inc. + McGladrey + McGough Construction + MDH, Inc. + Meadow Lakes Builders + MEC Construction, LLC + Med City Builders of Rochester, LLC + Menards South + MEP Associates + Merchants Bank + Merit Contracting, Inc. + MetLife Premier Client Group of the Upper Midwest + Michael's Custom Cabinets, Inc. + Midwest Walls, LLC + Minnesota Energy Resources Corporation + Minnwest Bank + MLT Group + Morris Concrete, Inc. + Larry Newman Drywall + North Central States Regional Council + North Star Stone & Masonry + Northern Lights & Furnishings + Northgate Chiropractic Clinic + Nuss Truck & Equipment + 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. + Paramark Corporation + PC tions Consultants, Inc. + Pearson Builders, Inc. + Pebble ApplicaCreek/Western Walls + Pegram & Dexter Construction & Design + Pella Windows & Doors + Pendle Hansen Bagne Insurance + Penz Custom Homes, Inc. + People's Energy Cooperative + Peterson Well Drilling, Inc. + Phantom Screens + Pine Island Lumber + Pompeii Painting, Inc. + Post-Bulletin Company, LLC + Powers Ventures + Prehn Building Sales, Inc. + Premier Bank Rochester + Premier Builders of Rochester, Inc. + Prime Time Painting of Rochester, LLC + PrimeLending + Priority Claims Service + Pro Image Promotions & Apparel + ProBuild Company, LLC + Professional Education Resources, LLC + Proscape of Rochester, LLC + Quality Overhead Door Company, Inc. + Quality Siding & Window, Inc. + Michael Quinn Law Office + R&M Development Company + R. Thomas Consulting, LLC + Radcliffe Homes & Remodeling + Range Custom Homes, LLC + RCON Homes, Inc. + RCTC Carpentry Program + RE/MAX of Rochester + Region Millworks, Inc. + David Reiland Building Contractor, LLC + Reliable Contractors, Inc. + Renters Warehouse Rochester + Reynolds Design and Construction + 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 Ready Mix Concrete Co + Rochester Sign Service, Inc. + Rochester Title & Escrow Company, Inc. + Ronningen Roofing, Inc. + RSP Architects + Ryan & Grinde, Ltd. + Ryan Electric, Inc. + Ryan Windows & Siding, Inc. + Rymark Construction, LLC + 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 + Shingobee Builders, Inc. + Sign Here, Inc. + Simonson Builders, LLC + SL Contracting + Smart Home Innovations & Engineering, Inc. + Smith Schafer & Associates, Ltd. + Solar Connection, Inc. + SOLO plumbing & ResSprinklers, LLC + 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. + Stencil Homes + Sterling State Bank + Stevens Heating, Inc. + Stewartville Economic Development Authority + Stier Construction, Inc. + Stimets Home Building & Remodeling + Stone Expressions + 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, Inc. + Thatcher Pools & Spas, Inc. + Thermo-Tech Windows + Thiemann Construction, Inc. + Thimijan Custom Homes, LLC + Think Mutual Bank + Thomas Tool & Supply + Thompson's Garage Door and Openers + 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 + Tub MD, LLC + 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 + Homes + Wausau Supply + Weis Builders, Inc. + Greg Wellik Construction a publication of Wausau + Wells Concrete Products, Inc. + 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 + Workforce Development, Inc. + Wright Homes, Inc. + WT Lighting + Xcel Energy + XRG Concepts, LLC + Rick Yerhot Builder + Your Home Improvement Company + Zen Custom Homes + Zumbro Haven, LLC = RAB

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

Donâ&#x20AC;&#x2122;t miss out on the Party of the Year!

Read more on Pages 6-7 2

FOUNDATIONS

May 2015

www.RochesterAreaBuilders.com

News from The President April 22, 2015

One challenge facing the construction industry today and in the near future is the pervasive workforce shortage. One statistic I have heard is that the average age of an electrician in the United States is 55. This same statistic could very well apply to other trades as well. Who do we have to fill these positions? RAB recognizes the problem and we are doing our part to help alleviate the situation. Here are a few examples of what our organization is currently doing:

• Participating in area job fairs by partnering with the local trades, RCTC, Riverland Community College, Construction Partnership and other area organizations. • Participating in career fairs at area high schools throughout the region • Leading outreach programs in area high schools emphasizing the benefits of a career in construction

Index News from the President.......................... 3 April General Membership Meeting......... 4 May Networking Night............................... 5 Studs, Struts & Stilettos........................6-7 RAB Golf Outing......................................... 8 Featured Member: MBT Bank.................................................. 9 BAM Update............................................. 10 Minnesota Housing Matters Petition.......................................11 Responsible Contractor Law............. 14-15 Rochester Permits................................... 16 Byron/Pine Island Permits...................... 17 Elliot Eisenberg Article............................18 Membership Information........................19 NAHB Member Discounts.......................20

• Implementing a media campaign explaining the viability and vitality of careers in the construction industry In regards to this media campaign, RAB is especially proud of winning the 2014 award for Best Workforce Development Plan Implemented. This award, presented by the National Association of Home Builders (NAHB) recognizes RAB’s efforts to educate our community in careers in construction. Through these and other initiatives, RAB will continue to address the severe construction labor shortage in southeastern Minnesota. Our organization is committed to educating the public about the wonderful career opportunities available in our industry. If you have any ideas for additional ways we can positively impact this issue, contact myself or any RAB staff member. Together, we can do our part to assist in addressing this labor shortage dilemma.

Executive Director/Editor John Eischen

John Eckerman 2015 RAB President

Production Ryan Kling-Punt

Premier Bank Rochester

Space for Lease at Multiple Locations

Downtown • Green Meadows • North Broadway & 37th Street

Contact Corey Heimer at 507-285-3700 or cheimer@premierbanks.com www.RochesterAreaBuilders.com

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

May 2015

FOUNDATIONS

Join us at the April

General Membership Meeting Tuesday, April 29th, at the Canadian Honker Events at Apache 1517 16th Street SW 5:00 pm 6:00 pm 7:00 pm

Social Hour Dinner ($15) & Announcements Trivia Night!

Test your knowledge on a variety of topics a t Ro c h e s t e r A r e a Builders Trivia Night. Tables of 8 compete for great prizes! We also look forward to recognizing our Honorary Members at this meeting.

Social Hour Sponsor:

Tri v a ?

Hours:

Night Dessert Sponsor:

Productivity is Our Priority 4

FOUNDATIONS

May 2015

www.RochesterAreaBuilders.com

Join us at the May Networking Night Tuesday, May 19th 4:30 - 6:30 pm

at Kruse Lumber 111 7th St NE Join Kruse Lumber for a special 100th Anniversary Celebration! Kruse Lumber was founded in 1915 by Henry Johannes (H.J.) Kruse. H.J. paid $1,500 for two large city lots and started building in the fall of 1915. That building still stands today across the street from the lumberyard. In the winter of 1915-1916 H. J. saw some farmers cutting ice in the “mill pond” (now Silver Lake) across the street. He sold them two barn jobs; his first sales in Rochester. His first house job sold that spring, for $525. From locks to lumber, Kruse has what you’re looking for in building materials. Kruse caters to your building essentials while providing professional-grade products and services to builders, developers and contractors as well as homeowners throughout Rochester, MN and surrounding areas. Their unsurpassed product quality, personal attention and courteous service have made us the demonstrated choice in our community.

Hosted By:

www.RochesterAreaBuilders.com

President

John Eckerman, The Boldt Company

Christy Buchan, Energy Products & Design, Inc.

Delbert Feenstra, Knutson Construction Services

Carla Kilpatrick, Home Federal Savings Bank

Kevin Worden, Rochester Area Habitat for Humanity

Mike Allen, Mike Allen Homes, LLC Karen Blissenbach, Design Studio B Mickey Elias, Elias Construction, LLC Rob Jones, Superior Mechanical Levi Kaiser, Alvin E. Benike, Inc. Sam Peyton, King’s Flooring, LLC Jon Range, Range Construction, LLC Lindsey Rippentrop, Premier Bank Rochester Brian Sheehan, Weis Builders, Inc.

Vice President Secretary Treasurer

Past President Directors

Builders Exchange Council Representatives

Jake Schleusner, Merit Contracting, Inc., Chair Tom Leimer, Knutson Construction Services, Vice Chair J.J. Webster, Kraus-Anderson Construction Company, Past Chair

Commercial Builders Council

Nick Leimer, Kraus-Anderson Construction Company, Chair Dana Hlebichuk, Widseth Smith Nolting, Vice Chair

Development Council Chair

Jill Mickelson, Braun Intertec Corporation

Jerry Jensen, Valor Mechanical, Inc.

Joe Weis, Weis Builders, Inc.

Steve Buss, Cornerstone Builders & Real Estate, Inc., Rep. David Kane, Widseth Smith Nolting

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

Remodelers Council Chair National Life Directors National Directors State Directors

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-

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

May 2015

FOUNDATIONS

STUDS, STRUTS & ST ET TOS construction fashion expose A Benefit for

April 23

Mayo Civic Center Auditorium

Doors open at 7:00 PM

5:00 PM Pre Party & 9:30 PM After Party at Cambria Gallery 400 S Broadway Event Partners:

Tickets are still available at the door! 6

FOUNDATIONS

May 2015

www.RochesterAreaBuilders.com

Title Sponsor:

Gold Sponsors: Beyond Kitchens, LLC Merchants Bank Rami Hansen & Jennifer Mitchell - Edina Realty Carpet One First Alliance Credit Union Think Mutual Bank Smith Schafer & Associates, Ltd. Rich & Jan Vetter BrokerBin.com The Boldt Company

www.RochesterAreaBuilders.com

#StrutForHumanity

Platinum Sponsor:

May 2015

FOUNDATIONS

RAB Go l f O u t in g Thursday, June 4, 2015 WILLOW CREEK GOLF COURSE

Presented By:

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!

Best format all year! Our11 AM Shotgun start means you’re done golfing earlier, which means you don’t have to commit your entire evening to the event (though we certainly don’t mind if you do!) You can still attend Thursday’s on First, your kids’ sporting events, or you can just go home and relax!

Also Featuring: BREAK THE GLASS 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! 8

FOUNDATIONS

May 2015

www.RochesterAreaBuilders.com

Community Bank Committed to Customer Service

HISTORY

Since our beginning in 1945 as Farmers Bank & Trust Company of Crystal Lake, MBT Bank has always focused on improving the services offered to better the lives of customers and the communities we serve. As a community bank, the growth of MBT Bank from its inception has stemmed from making fiscally responsible decisions while reinvesting in worthwhile organizations throughout our communities. MBT Bank has consistently offered customers the latest in banking technology, and has incorporated insurance and investment services for a comprehensive financial experience. Though our products and services may have changed over the years, a few things have not: Vision MBT will remain a strong community bank, continue to grow, reward their stockholders, and be a great place to work.

Mission MBT will partner with their customers and communities to achieve their financial success. Core Values Customer Service It will be the first consideration in everything MBT does. Valued Employees They are critical to MBTâ&#x20AC;&#x2122;s future. Honesty, Integrity, and Respect With these we will conduct our business. Community Involvement We will help our communities prosper and grow.

watch this video to learn more about MBT >>>

Where will you go with MBT? www.RochesterAreaBuilders.com

2020 2nd Street SW Rochester, MN 55902 Phone: 507.226.8460 Fax: 507-226-8339 www.mbtbank.com May 2015

FOUNDATIONS

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!

ASSOCIATION OF MINNESOTA

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

Executive Committee President Mike Paradise Builder VP Kurt Welker

The Spending Debate Begins… Spring break is over, Minnesota’s Legislators have 6 weeks to finish their 2015 work, and it’s all about the money. In the mix for the homestretch are the state’s biennial budget and a transportation package. With a projected $2 Billion surplus, Governor Dayton’s proposed budget funnels most of the surplus into government programs with a heavy emphasis on schools. The Governor is also proposing a gas tax of at least 16 cents per gallon and higher vehicle registration fees as part of his transportation package. House Leadership has a very different idea regarding the surplus and transportation packages, and it has been suggested that the state should possibility use the state’s nearly $1.8 billion budget surplus as well as redirect existing taxes on vehicle rentals and leases for road and bridge repairs. Fueling the end of session debate is the Governor’s newly unveiled $842 Million bonding proposal and includes $200 Million for college campus improvements and $78 Million for railroad safety. This proposal is facing a strong headwind. Major bonding bills are generally reserved for even-year sessions, a preference expressed by both House and Senate leadership earlier this year when they declined to include debt payments in their proposed 2015 budget outlines. If a bonding bill is to pass this year, regardless of the level of funding, it will require a three-fifths vote of both the House and Senate.

BAM is happy to report the continued progress (and live status) of the codes bill. Representative Tama Theis and Senator John Pederson – both BAM members – are authoring the industry’s 2015 codes process bill. The bill codifies a six-year code cycle (a practice that’s been informally in place since 2000), increases the implementation time before a new code becomes effective to be no less than 9 months, and requires the new code to be published on-line and accessible to the public prior to its effective date. Representative Vogel is spearheading a bill to clarify a performance path avenue for the energy code. Both bills are contained in the House Omnibus Jobs bill. To date, there have been 2,192 bills introduced in the House and 2,043 bills introduced in the Senate. Many of the bills have died. In addition to keeping the industry bills alive, our government affairs teams and lobbyists have been actively working on several dead or dying and alive bills, too.

Associate VP George Cundy President Elect KC Chermak Treasurer Eric Peters

For the full report login to BAM’s members-only website www.bamn.org/legislation.

Secretary Gerry Traut Past President Chad Compelien NAHB Representative Kathe Ostrom

FOUNDATIONS

BAM’s Mid-Session Summary 2015

About the Policy… Prior to the Legislature’s spring break, hundreds of policy related pieces of legislation, including proactive codes related bill pursued by BAM and BATC, were debated and left either dead or alive.

BUILDERS

April 2015

May 2015

Thank You! Many thanks to BAM’s government relations committee for all its advice and direction; we know volunteering on this committee is time consuming, but your input is priceless. Thank you to Jane DeAustin (CMBA), James Vagle (BATC), and Matt Limoges (RAB) for all their hard work. Accolades go to the industry’s contract lobbyists Brian Halloran, Pete Coyle, Larry Redmond, Andrea Perzichilli, and Forrest Cyr. BAM will prepare for all members a session wrap up soon after the close of the regular session. www.RochesterAreaBuilders.com

Sign the Petition

An Update on Minnesota Homes Matter

Homeownership is the foundation of strong families and healthy communities. Therefore, the Rochester Area Builders believe lawmakers should be doing everything they can to encourage homeownership, not making it harder. That is why we’ve joined “Minnesota Homes Matter”. Minnesota Homes Matter is a proactive, educational campaign supported by a broad coalition of homeowners, builders, bankers, local business groups and REALTORS® across Minnesota. The mission is to take the message to our lawmakers, to protect homeowners, their property rights and their tax benefits such as the Mortgage Interest Deduction. Lawmakers need to understand the importance of the housing market on our economy. The Rochester Area Builders counts itself among the dozens of Minnesota Homes Matter coalition supporters, and we’d like to update you on the coalition’s activity to date. To date, Minnesota Homes Matter has worked with dozens of local officials, hundreds of business leaders and thousands of homeowners across Minnesota to issue resolutions stating their support for homeownership and authoring letters to the editor of their local newspapers, communicating broad support for Minnesota homeowners. Minnesota Homes Matter has also secured signatures from more 9,000 Minnesotans who stand with the coalition and want to send a clear message of support to the legislature in Saint Paul. Today, we ask that you join them and sign the Minnesota Homes Matter petition.

Sign the petition today! The Rochester Area Builders are proud to support Minnesota Homes Matter and we will continue to fight for the homeownership tax benefits and property rights. Please consider signing the petition today and follow Minnesota Homes Matter on Facebook and Twitter for the latest updates on homeownership benefits and rights in Minnesota. www.RochesterAreaBuilders.com

May 2015

FOUNDATIONS

May 2015

www.RochesterAreaBuilders.com

May 2015

FOUNDATIONS

The Responsible

On May 16, 2014, Minnesota Governor Mark Dayton signed into law what is known as the “Responsible Contractor Law.”1 This law establishes a new standard for contractors. As a result, only when contractors meet this standard will they be awarded a publicly owned or financed construction contract. Because of the Destination Medical Center initiative, this law will impact contractors in Rochester, Minnesota. The purpose of this memorandum is to provide a brief overview of the scope of the law as well as the procedural and substantive requirements. For members of Rochester Area Builders, Inc. to ensure their compliance with the law, it is necessary to answer the questions at the end of each section regarding the requirements imposed.

to add additional subcontractors after submitting their verification of compliance, they have 14 days to verify the new subcontractor’s status as a responsible contractor.

Scope of the Responsible Contractor Law The responsible contractor law applies to publicly owned or financed projects where the contracting authority’s construction contract with the prime contractor is estimated to exceed $50,000 and is awarded pursuant to a lowest responsible bidder selection method or a best value selection method. The term “contracting authority” is statutorily defined as a state agency, Minnesota State Colleges and Universities, University of Minnesota, the Metropolitan Council, the Metropolitan Airports Commission, or a municipality that enters into a construction contract or authorizes or directs entering into a construction contract.

Responsible Contractor Status: The Substantive Requirements The law requires strict compliance with the minimum criteria in the statute. There are six substantive requirements, as follows: 1. Proper organizational filing;4 2. No past labor standards violations; 3. No past independent contractor or building code violations; 4. No more than two past revocations or suspensions of certificate of compliance under the Human Rights statute; 5. No more than one past monetary sanction from the Department of Administration or Transportation for failure to meet targeted group businesses; and 6. Good standing with both federal and state governments.

These requirements apply not only to the general (prime) contractor of a project but also any subcontractors. The legislation makes it clear that a subcontractor must meet the minimum criteria of the law to be eligible for a subcontract to be awarded on a project regardless of the value of the subcontract. This is an important distinction for subcontractors. While the “prime contractor2” is only subject to the minimum criteria of a responsible contractor when the value of the contract with the contracting authority is estimated over $50,000, a subcontractor must meet the minimum requirements regardless of the value of the subcontract for a qualifying project.3 To summarize, a contractor must meet the responsible contractor criteria when: + The project is publicly owned, or financed; + The party that awards the contract is a statutorily defined “Contracting Authority;” + The contract is awarded through the lowest bidder or best value process; and + For a prime (general) contractor, the value of the contract is estimated over $50,000; or + For a subcontractor, regardless of the value of the subcontract. Procedural Requirements The law requires contractors to prove to the contracting authority that they meet the criteria imposed by the law. The bidding prime contractor must submit a comprehensive verification form, including the verification forms of the subcontractors he intends to use, to the contracting authority. Subcontractors must submit the verification form to the prime contractor. This form must include a sworn statement under oath that the contractor has met the minimum criteria required by the law. An owner or officer of the bidding contractor may submit this form. If a contractor (subcontractor or prime) seeks 14

FOUNDATIONS

May 2015

Many of the criteria require no past violations of other Minnesota laws or regulations in the three years immediately preceding the date the verification form is signed. The three-year time period for past violations will be effective on July 1, 2017. Before that date, any violation between July 1, 2014 and July 1, 2017 is subject to the new requirements under this law. Any violation of applicable statutes before July 1, 2014 will not prohibit a contractor from obtaining responsible contractor status.

Proper Organizational Filing First, a responsible contractor must submit proper organizational filing. The contractor must be in compliance with worker’s compensation requirements and unemployment insurance requirements. In addition, the contractor must be registered with the Department of Revenue and the Department of Employment and Economic Development.5 The contractor must also possess a valid federal tax identification number,6 and have filed a certificate of authority to transact business in Minnesota with the secretary of state if the contractor is a foreign corporation or cooperative. Are you registered to do business in Minnesota? Past Fair Labor Standards Violations A contractor must not have any violations of the Fair Labor Standards Act, paying wages promptly, paying employees who quit or resign, and misrepresentation of the employment relationship. For a contractor to satisfy this criteria, they must not have violated the statutorily stated sections of the aforementioned statutes. These include: paying minimum wage, following overtime guidelines, paying prevailing wages when required, paying wages promptly, paying employees who have quit, and not misrepresenting the employment relationship to any federal, state or local governmental unit. If a contractor violated any of these statutes over the three years7 preceding the verification submission, they will not satisfy these requirements.8 Have you ever been the subject of a complaint regarding wages or payment schedules?

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Contractor Law

Past Independent Contractor and Building code Violations A contractor is also required to confirm that they have violated neither the building code nor fraudulently held himself or herself, or an employee, out as an independent contractor.9 Any violations of these statutes in the immediate preceding three-year period10 will prohibit the contractor from achieving responsible contractor status. The purpose of this requirement is to ensure that contractors are not masking their employees as independent contractors in order to skirt workers compensation requirements. A violation of these statutes only occurs when a contractor or related entity has been issued a final administrative or licensing order. Have you been contacted by a state agency regarding independent contractor or building code issues? Past Revocations or Suspensions of Certificate of Compliance Under the Human Rights Statute The law also requires a contractor’s certificate of compliance from the commissioner of human rights not be revoked or suspended more than twice during the applicable time period.11 The certificate addresses the contractor’s affirmative action plan for the employment of minority persons, women and qualified disabled individuals. A revocation or suspension of the certificate is final if the Office of Administrative Hearings upholds it or was not appealed to that office. Do you have a certificate of compliance from the commissioner of human rights? Has it been revoked or suspended more than twice in the past three years?12 Targeted Business Groups If a contractor is found to lack a good faith effort when failing to meet targeted group business, disadvantaged business enterprise, or veteran owned business goals, the contractor will fail to meet this requirement.

To satisfy this criterion, a contractor must not have received more than one final determination assessing a monetary sanction from the Department of Administration or Transportation in the three years13 preceding the date of submitting the verification form. Have you received more than one monetary sanction from the Department of Administration or Transportation? Good Standing Requirement The last requirement to establish responsible contractor status is to be in good standing with all governmental agencies. The law requires the contractor, or related entity, to not currently be suspended or debarred by the federal government or the state of Minnesota or any of its departments, commissions, agencies, or political subdivisions. Are you currently suspended or debarred by any governmental (federal or state) agency? Impact on Rochester A contracting authority under the statute is defined as any municipality. A municipality is defined in the statute to include a “destination medical center corporation.” Destination Medical Center (DMC) is an economic development package comprised of monies from the State of Minnesota, Olmsted County, and the City of Rochester. These monies are to be used to supplement infrastructure costs for the expansion of the Mayo Clinic in Rochester. If a project falls within the DMC district boundaries, it may seek public funding for infrastructure needs. This funding is administered through the DMC’s corporation. This corporation was created for the specific purpose of awarding these monies to projects. Therefore, for a contractor to be awarded a contract using DMC monies, the contractor must verify themselves as a responsible contractor under the aforementioned criteria.

Footnotes: 1 This law passed with a great deal of support, passing in the Minnesota House of Representatives by a vote of 84-38 on May 9, 2014, then passing unanimously in the Minnesota Senate four days later on May 13, 2014. It can be found at Minn. Stat. § 16C.285. 2 Prime Contractor is statutorily defined as a «vendor that subn1its a bid or proposal or otherwise responds to a solicitation document of a contracting authority for work on a project or is awarded a construction contract by a contracting authority for work on a project. A prime contractor includes a construction manager for purposes of this section.” 3 If a prime contractor is the lone responder to a solicitation document, the contracting authority may award the contract to the lone responder regardless of their status as a responsible contractor. 4 Subcontractors need not meet this criterion. 5 If the contractor does not have any employees, it need not be registered with the Department of Employment and Economic Development. 6 If the contractor is an individual, a Social Security Number satisfies this requirement 7 Or from July 1, 2014 - July 1, 2017. 8 For a list of what constitutes a violation under these statutes, see Minn. Stat. § 16C.285, subd. (3)(2). 9 Minn. Stat. § 181.723. 10 After July 1, 2017. Before then, any violation occurring after July 1, 2014. 11 After July 1, 2014 if the date of verification is before July 1, 2017. Three years predating verification if verification is completed after July 1, 2017. 12 Or after July 1, 2014 if the date of verification is before July 1, 2017. 13 Or after July 1, 2014 if the date of verification is before July 1, 2017.

www.RochesterAreaBuilders.com

May 2015

FOUNDATIONS

Rochester Building Permits VALUATION

2014

VALUATION

6,905,960

7,048,978

Townhome Dwelling

Two-Family Houses

Multi-Family Bldgs

41,806,261

Deck Addition

17,640

12,500

Room Addition

Porch Additions

Other Additions

2,500

Basement Finish

390,205

255,905

Alterations

305,824

362,806

Multi-Family Addition

4,000

Multi-Family Alterations

31,200

912,500

Assembly (Church)

Assembly (General)

565,000

Assembly (Restaurant/Bar)

Business

Education

Factory/Industrial

Institution

New Residential Single Family Dwelling

Manufactured Home

2015

Existing Residential

New Commercial

March 2015

Single Family Homes/Townhomes 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

January

February

March

TOTAL

107

April

May

June

July

August

September

October

November

December

506

417

302

281

200

191

299

326

369

TOTAL

*total may differ as permits may have been voided.

Year To Date Statistics

NO.

2015 VALUATION NO.

2014 VALUATION

Building Permits Issued to Date

439

88,891,262

397

78,794,798

Single Family Dwelling

17,625,333

13,587,108

Multi-Family Buildings Total Units: 314

41,806,261

1,777

18,144,927

1,424

13,803,423

568

6,231,966

449

5,286,384

Mercantile

682,000

Miscellaneous

Utility (General)

Residential (Care/Assisted Living)

Electrical (Temp. Service)

29,550

9,150

Residential (Care/Hotel/Motel)

Mechanical

461

6,505,588

404

3,720,338

Storage (General)

Gas Piping

120

306,440

300,796

Storage (Warehouse)

Fireplace

244,480

235,115

Hydronic System

2,151,072

872,800

444

2,675,831

332

3,378,840

2,216

107,046,189

1,821

92,589,221

Existing Commercial Addition Alterations

9,328,167

1,455,545

10,778,507

Structural Shell

“White Box”

Interior Demolition Only

22,000

300,000

Other Phased Permits

Business Signs

89,531

66,700

Advertising Sign

Footings & Foundations

6,000,000

Demolition

Trade Permits Issued to Date Electrical

Plumbing

Total Permits YTD

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

Other Construction

FOUNDATIONS

May 2015

www.RochesterAreaBuilders.com

Byron

Building Permits March 2015 New Residential

NUMBER

VALUATION

1,371,500

Single Family Detached Existing Residential Deck Addition

8,729

Basement Finish

77,500

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7.5x5_MN_Builder_Rochester.indd 1

www.RochesterAreaBuilders.com

3/11/15 11:40 AM

May 2015

FOUNDATIONS

2% is the new 3% + + + + + + + + + + + +

Elliot Eisenberg, Ph.D. + + + + + + + + + + + + + + + Last year, GDP growth was a mediocre 2.4%. While it was the best growth since 2010 when GDP growth was a “sparkling” 2.5%, it means yet another year, the ninth in a row, of sub 3% GDP growth. There has never been a run of such weak GDP growth since record keeping began in 1930. Yes, there were terrible periods but they were all blessedly brief, never lasting more than two or three years and they always occurred during recessions. In our case, the recession ended in June 2009. What is going on? The fact is that our weak GDP growth is not surprising at all. Let me explain. GDP growth is composed of two things, growth in the labor force and growth in labor productivity. GDP rises when more people work, and better yet, when they work more productively. Productivity growth is particularly important because it boosts living standards. GDP growth was very good following WWII because annual labor force growth grew dramatically from 0.5% in 1950 to almost 2.5% in 1975. As a result, the prime-aged working population, those between the ages of 25 and 54, grew from 60 million to almost 80 million in 25 short years. While population growth then began to decline, it remained above 1% through 2003. As a result, the prime-aged population continued growing, hitting 122 million in 2003. As a matter of fact, the labor force grew much faster than the population during the 1970s and 1980s due to the huge influx of women into the labor force. As a result, the prime-aged working population grew by over 3% per year during the 1980s. Since 2003, population growth has slowed further and is now barely 0.7%. Moreover, the Boomers have begun retiring in large numbers and the

number of working men and women has, for a number of reasons, continued to slowly decline. As a result, the size of the prime-aged working population has essentially flat-lined since 2003. As a matter of fact, it peaked in 2007. If the size of the prime-aged working population is flat, it’s hard to experience rapid GDP growth even if labor productivity growth is good. Regrettably, labor productivity growth has not been particularly good of late. But first some history: from 1948 through 1973 labor productivity grew at an amazing average annual rate of 2.8%. Add to that rapid labor force growth, and it’s no wonder GDP growth averaged 4.1% per year. Between 1974 and 1990, labor productivity grew by an anemic 1.4% percent but given good population growth, GDP growth was a solid 3.0% per year. From 1991 through 2007, productivity perked up to a very respectable 2.4%, and despite weak population growth, GDP still averaged 3% per year. Since the start of the Great Recession, however, we have experienced anemic labor productivity growth of, again, 1.4% per year and a trivial increase in the working population. As a result, GDP growth has averaged a dismal 1.2% per year. Luckily the prime-aged working population is again starting to rise, which is good. The million dollar question is “How will labor productivity growth perform?” Will it be a replay of the boom years of 1974 through 1990, the crummy years since 2007, or more likely something in between? While nobody knows for sure, GDP growth should drift upwards as demographics become more favorable and labor productivity hopefully rises.

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

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.

FOUNDATIONS

May 2015

www.RochesterAreaBuilders.com

Membership Information Membership Renewals

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

NONE

as of 3/31/15

One Year

Clayton Thomas Blinds of Rochester

2014

Two to Four Years

Abbco Company American Fence Company of MN, LLC Smart Home Innovations & Engineering, Inc. All-Star Basements R. Fleming Construction, Inc. Zumbro Haven, LLC Advanced Building Center, Inc. Braun Intertec Corporation Steve Gentry Construction, LLC

2013 2013 2013 2012 2012 2012 2011 2011 2011

Memberships Pending: NONE

MEMBERSHIP TOTAL: 455 RETENTION RATE: 92.7% As of 2/28/15

Five to Nine Years

Burdick Builders, Inc. Fieldstone Family Homes, Inc. Rochester Asphalt, Inc. Beckley’s Office Products The Boldt Company Beetles Bar & Grill, Inc. Cordes Construction First Choice Homes, LLC Maas Companies, Inc. ABC Supply Company, Inc. Kirkland Enterprises, LLC RCON Homes, Inc. Bruce Bucknell Construction, Inc. Dolan’s Landscape Center, Inc. Majestic Homes, Inc. Ryan Electric, Inc.

2010 2010 2010 2009 2009 2008 2008 2008 2008 2007 2007 2007 2006 2006 2006 2006

Ten to 19 Years

Anderson Construction Al Barker Custom Homes, Inc. HiMEC at Home Rochester Concrete Products, LLC American Waterworks Reliable Contractors, Inc. HGA Architects and Engineers

2005 2004 2001 2000 1999 1998 1997

20 to 24 Years

Sterling State Bank

1993

25 Years & More

Ryan & Grinde, Ltd. Countryside Builders, LLC Tonna Mechanical, Inc. People’s Energy Cooperative Dakota Supply Group, Inc. Wells Fargo Home Mortgage

1990 1989 1988 1987 1964 1964

WE WELCOME THE FOLLOWING NEW MEMBERS IN APRIL: DESTINATION BUILDING CENTER 714 County Road 3 NW Byron, MN 55920 Phone: 507-775-9977 Contact: Darren Brunn Associate Member Lumber Yard Sponsored by: Jean DeWitz, DeWitz Home Builders, Inc. FINAL CUT CONSTRUCTION 6241 Shetland Drive NW Rochester, MN 55901 Phone: 507-259-6670 Contact: Richard Sigrist Builder Member Remodeling Contractor Sponsored by: Jean DeWitz, DeWitz Home Builders, Inc. KIMLEY-HORN & ASSOCIATES, INC. 323 South Broadway Rochester, MN 55904 Phone: 507-216-6210 Contact: Luke Payne Associate Member Consulting Firm Sponsored by: Cyle Erie, Braun Intertec Corporation PROSCAPE OF ROCHESTER, LLC 1321 3rd Street NE Rochester, MN 55906 Phone: 507-398-2900 Contact: Dave Marin Associate Member Landscape Contractor Sponsored by: Rory Lenton, Minnesota Energy Resources

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May 2015

FOUNDATIONS

National Association of Home Builders

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

www.nahb.org/MA

FOUNDATIONS

May 2015