Foundations - March/April 2013 by Rochester Area Builders, Inc.

A&A Electric & Underground, Inc. + AB Systems, Inc. + Abbco Company + ABC Seamless of Rochester, Inc. + ABC Supply Company, Inc. + Above All Roofing of Rochester, Inc. + Accord Electric, Inc. + Adair Electric Company + Adamson Motors + Advanced Builders & Remodeling + Advanced Builders, LLC + Advanced Building Center, Inc. + Advanced Disposal + Advantage Cabinets, Inc. + AgStar Home Mortgage Services + Alexander & Sons Builders + Mike Allen Homes, LLC + Allen Outdoor Solutions, LLC + All-Star Basements + American Engineering Testing, Inc. + American Fence Company of MN, LLC + American Waterworks + Ames Construction, Inc. + 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. + BKC Construction Services, LLC + 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 + Brannt Valley Excavating, Inc. + 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 + Larry Brooks Builders + Brooks Excavating Company, Inc. + C.O. Brown Agency + Bruce Bucknell Construction, Inc. + Budget Blinds + Burdick Builders, Inc. + Byrne Electric, Inc. + Cachiaras Building & Remodeling + Cambria + Canadian Honker Entities + Carpet One + Castlewood Homes, Inc. + Century Painting & Decorating, LLC + Charter Communications/Media + Chosen Valley Testing, Inc. + Christian Brothers Cabinets, Inc. + City of Byron + City of Chatfield + City of Eyota + City of Preston + City of Spring Valley + Citywide Insulation, Inc. + Clear Channel Radio (Laser/Fox/KFAN) + Clements Chevrolet Cadillac Subaru + Closet Organizers + Coldwell Banker Burnet + Commercial Leasing Services + Construction Partnership + Coordinated Business Systems, Ltd. + Corban Homes, LLC + Cordes Construction + Cornerstone Builders & Real Estate, Inc. + Cornerstone Designs of Rochester, Inc. + Corporate Web Services, Inc. + Counselor Realty of Rochester, Inc. + Countryside Builders, LLC + Cravath Homes, LLC, dba Accessibility Solutions + Creative Hardwood Floors + CRW architecture + design group, inc. + Culligan of Rochester & Kasson + Cumulus Radio + Curry's Custom Cut Gutter, LLC + Curtin Drywall, Inc. + Custom Alarm/Custom Communications, Inc. + Custom Retaining Walls & Landscaping, Inc. + D2E, LLC + Dahl Home Builders, Inc. + Data-Smart Computers, Inc. + Davies Printing Company + DeGeus Tile & Granite + Derby Construction LLC + The Design Connection + Design Studio B + DeWitz Home Builders, Inc. + DMC Plumbing & Heating, Inc. + Dolan's Landscape Center, Inc. + DoubleTree by Hilton - Mayo Clinic Area + DreamMaker Bath & Kitchen + Dunham Associates, Inc. + Dunlap & Seeger + M.H. Dutton Construction, LLC + E&M Consulting, Inc. + Eastwood Bank + eci, llc + Eckert Construction, Inc. + Edel Construction, LLC + Edge Homes & Construction, Inc. + Edina Realty Home Services + Todd Eidem Construction, Inc. + Elcor Construction, Inc. + Elcor Realty of Rochester, Inc. + Electrical Solutions & Service + Elias Construction, LLC + Energy Panel Structures + Energy Products & Design, Inc. + Enventis + Excel Homes + The Excelsior Group, LLC + Expert Insulation, Inc. + Express Employment Professionals + Extreme Panel Technologies, Inc. + Fairway Outdoor Advertising, LLC + Ferguson Enterprises + Fieldstone Family Homes, Inc. + First Alliance Credit Union + First Choice Homes, LLC + First General Services of SE MN + First Security Bank + R. Fleming Construction, Inc. + Ford Metro Glass, Inc. + Foster Construction, Inc. + Franklin Energy + Friedrich Construction, Inc. + Chris Fritsch Custom Homes, LLC + Gander Plumbing & Heating, Inc. + Dale Gathje Construction, Inc. + GDM Trailers, LLC + Steve Gentry Construction, LLC + Gerhard's + Robert Gill Builder, Inc. + Global Resolve + Goodin Company + Great River Overhead Door + Green Lawncare Irrigation & Service Co. + Greenway Cooperative Service Company + Gregor Builders, Inc. + Gutter Topper of Minnesota/TAG Construction, LLC + Habitat for Humanity - Rochester Area + Habitat for Humanity - Winona/Fillmore County dba Habitat ReStore + Haley Comfort/FireSide by Haley + 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. + Heim Drywall Enterprises, Inc. + Brandon Henderson's Construction Plus, LLC + Hentges Glass Company + 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. + Insty Prints + Insul-Seal Home Insulation + IntegraSpec Central/Jeff Mueller Construction + Integrity Custom Homes, Inc. + J&M Consulting + Michael Jack, 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 Grand Hotel + 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. + Komitt Concrete, 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. + L&L Cabinets + Lacina Siding & Windows, Inc. + Laitala Tile Company + Larsen Industries, Inc. + Larson Siding & Windows + Legends Concrete, Inc. + Leitzen Concrete Products, Inc. + Leyendecker Homebuilders, LLC + Lodermeier's, Inc. + Lowe's Home Improvement + Lumber Liquidators + Ed Lunn Construction, Inc. + Luxury Bath Remodeling + Maas Companies, Inc. + Maier Tree & Lawn + Majestic Homes, Inc. + R.J. Manemann Custom Homes + Maplewood Homes, LLC + Markham Homes, LLC + markit + Marvin Windows & Doors + Massey Land Surveying & Engineering + Master Builders, Inc. + Mavo Systems, Inc. + McGhie & Betts, Inc. + McGladrey + McGough Construction + MDH, Inc. + Meadow Lakes Builders + MEC Construction, Inc. + Med City Builders of Rochester, LLC + Medcare Products, Inc. + Menards - South + MEP Associates + Merchants Bank + Merit Contracting, Inc. + Michael's Custom Cabinets, Inc. + Mid American Financial Group + Midwest LeafGuard of Rochester, Inc. + Minnesota Energy Resources Corporation + Minnwest Bank + MLT Group + Morris Concrete, Inc. + Mosquito Squad of SE MN + Larry Newman Drywall + Nickelson Painting, Inc. + North Central States Regional Council + Nuss Truck & Equipment + Ohly Law Office + Olmsted County Journal + Olmsted County Lumber Mart, Inc. + Olmsted County Planning Dept, Insp. Div. + Olmsted County Public Health + Olmsted National Bank + J.B. O'Meara Company + OnSite + Otis Custom Homes, LLC + Owner's Plumbing, Inc. + Paape Energy Services + Pahl & Kaye, Inc. + Palmer Soderberg, Inc. + Paper & Graphics, Inc. + Walt Pappas Construction + Paramark Corporation + Payne Company + PC Applications Consultants, Inc. + Pearson Builders, Inc. + Pebble Creek/Western Walls + Pegram & Dexter Construction & Design + Pella Windows & Doors + Pendle Hansen Bagne Insurance + Penz Custom Homes, Inc. + People's Energy Cooperative + G. Pestka Appraisals + Peterson Well Drilling, Inc. + Pine Island Lumber, Inc. + Pine One Hour Heating & Air Conditioning + Pompeii Painting, Inc. + Post-Bulletin Company, LLC + 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 + Quality Overhead Door Company, Inc. + Quality Siding & Window, Inc. + Quartz Surfaces + Michael Quinn Law Office + R&M Development Company + Radcliffe Homes & Remodeling + 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 DEVELOPMENT Appraisals, LLC + Rochester Area COUNCIL Chamber of Commerce + Rochester BUILDERS COUNCIL Area Econ. Development, Inc. + a division of rochester area builders, inc. Rochester Asphalt, Inc. + Rochester a division of the Rochester Area Builders, Inc. a division of Rochester Area Builders, Inc. Building Safety Department + Rochester crete Products, LLC + Rochester InternaCont i o n a l Event Center + Rochester Overhead Door Company + Rochester Plumbing & Heating/Roto Rooter + Rochester Public Utilities + Rochester Public Works + Rochester Ready Mix Concrete Co + Rochester Service Company / SL Contracting + Rochester Sign Service, Inc. + Rochester Title & Escrow Company, Inc. + Rock Solid Retaining Walls + Ronningen Roofing, Inc. + RSP Architects + Ryan & Grinde, Ltd. + Ryan Electric, Inc. + Ryan Windows & Siding, Inc. + Sargent's Landscape Nursery, Inc. + Schad Tracy Signs, Inc. + Schmidt Goodman Office Products + Schoeppner, Inc. + Schumann Granahan Hesse & Wilson, Ltd. + Schwab, LLC + Schwickertâ&#x20AC;&#x2122;s Tecta America, LLC + Seavey Builders, Inc. + Servpro of Rochester, Inc. + Dan Severson Builders, Inc. + Shanahan Building & Remodeling, LLC + Sherwin Williams Company + Sign Here, Inc. + Simonson Builders, LLC + 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. + StoneBridge Builders + Structural Design Group, Inc. + Struve's Paint + Robert G. Suk Law Office, PA + Summit Custom Homes, LLC + Summit Fire Protection Company + Superior Mechanical + Craig Swanson Builders, Inc. + Swenke Company, Inc. + Kenny Sylvester Construction, LLC + Synergy Products + Tag's Drywall, Inc. + ter, Inc. + TDS Metrocom + Teigen Paper & Supply, Inc. Tamarack Materials of Roches+ 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 + TLC Surfaces + Tonna Mechanical, Inc. + Top Shop of Rochester, Inc. + Total Electric of Rochester, Inc. + 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. + TW Construction Solutions, LLC + United Heating & Cooling + United Products Corporation + United Rentals + The Urban Studio, LLC cal, Inc. + Val-U-Blinds + Van Haren ICF + Vector + US Bank + Valor MechaniWindows + Veit Companies + Vertical Limit Construction + Viking Automatic Sprinkler Company + Viking Electric Supply + Vision Homes & Remodeling, LLC + Vollara Global/DPS + WA Insurance + Warners' Stellian Appliance Co., Inc. + Waste Management + WC Construction + Weather Shield Roofing, LLC + Weis Builders, Inc. + Greg Wellik Construction + Wells Fargo Bank Minnesota NA + Wells Fargo Home Mortgage + Wendland Utz + Werner Electric Supply + Westridge Hills, Inc. + Jim Whiting Nursery & Garden Center, Inc. + Widseth Smith Nolting + Wildwood Bar a publication of and Grill + Winona Excavating Company + Wolter & Raak, Ltd. + Women Communications, LLC + Woodruff Company + Wright Homes, Inc. + WT Lighting + XRG Concepts, LLC + Yaggy Colby Associates + Rick Yerhot Builder + Your Home Improvement Company + Zumbro Haven, LLC + Zumbrota Ford

COMMERCIAL

D C

REMODELERS

FOUNDA

T IONS

MARCH APRIL 2013

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

Save the Date: April 20-27, 2013

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

Save the date for 2013! Select an area of Rochester for collecting litter Pick a date for collecting litter Recruit family, friends, neighbors, or co-workers Register your group, location, and date on-line

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

visit: www.RNeighbors.org

News from the President March 20th, 2013

Index

News from the President .......................3

am so grateful for this opportunity to serve such a wonderful organization! We truly have incredible, motivated, and dedicated members who make this association what it is. I am proud to be a part of such a long-standing tradition of excellence. If you are new to RAB, please make sure to include on your calendar the last Tuesday of each month for our General Membership Meetings or Networking Nights! Stop out and see what we are all about, and how being connected with this dynamic network of building professionals can make a difference in your career and professional development.

March Networking Night ......................4 April General Membership Meeting ....5 From The Director’s Desk .....................6 Spring Showcase Entries - First Deadline ......................................7 2013 RAB Award Winners .................. 8-9 Association Scrapbook .................... 10-11 ALJ Request Letter ...............................12 ALJ Contributors - Thank You! ...........13 Home Show Review .............................14 Committee Updates .............................15 Builders, Brats, & Building Safety .......16 Thank Yous! ..........................................17

As I am writing this, I am thinking of the many challenges we are facing as a city, state and nation. At Rochester Area Builders, we are believers in the concept of “strength in numbers,” and that collaboratively we accomplish far more than any one person can achieve on his or her own. After the inconclusive results of Tuesday’s election, the citizens of Rochester will be voting again for a new city council president on May 7th. The person elected will be leading our city into the future. It is extremely important that we elect a leader who will listen openly and support our industry. We all have a voice in this election. We need these “strength in numbers” at the polls…please exercise your right to vote! Tell your friends, neighbors and co-workers how important this position is!

Member Memos ...................................17

We are also facing challenges at the state level. Mandatory ﬁre sprinklers in new home construction will be heard at an Administrative Law Judge hearing in April or May. We are in need of everyone’s help supporting RAB and BAM in this very important cause. We are asking all who rely on the building industry to voluntarily help fund the legal team that will be representing the building industry at the ALJ. Any contribution will be greatly appreciated!

New Member Orientation ...................27

We also have great news with Mayo’s announcement of Destination Medical Center (DMC)! The proposed growth of Rochester will certainly have a positive impact on the construction industry. Mayo ofﬁcials have asked the state for $500M to be spent on new roads, bridges, transit, public spaces and parking. Mayo has a legitimate concern that the city of Rochester will not be able to handle the infrastructure costs needed for the clinic’s expected growth, and that state money would ensure that Mayo can compete with medical centers in Cleveland, Boston, Baltimore and Texas. Once again, “strength in numbers” will make a big difference in the outcome of ALL we do…let’s build this house together!

Best Regards,

Jean DeWitz

2013 RAB President

Commercial Builders Council .............18 February BAM Update .........................19 March BAM Update .............................20 Public Works Dept. News .....................21 Rochester Permits ................................22 Byron/Pine Island Permits ..................23 Real Estate Data ...................................23 RAB 60th Anniversary ..........................24 Membership Information ............... 24-25 Membership Drive - RAB 500 ..............26 Four Reasons to be Optimistic ............28 NAHB Member Advantage ..................29

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 bi-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 507-282-7698 507-282-6351 Fax E-mail RAB@rochesterareabuilders.com www.RochesterAreaBuilders.com

Www.RochesterAreaBuilders.com March/April 2013 | 3

Join us at the March Networking Night Tuesday, March 26th, 5:00 - 7:00 pm at the Lowe’s Home Improvement 4550 Maine Avenue SE LOWE’S MISSION Customer service and community service are core commitments at Lowe’s – and they have been for more than 60 years. Being a good neighbor means being committed to improving the places our employees and customers call home. We see that as an investment in our future. We’ve grown that investment as Lowe’s has grown from a small-town hardware store in North Wilkesboro, N.C., to the second-largest home improvement retailer in the world. In 2011, Lowe’s and Lowe’s Charitable and Educational Foundation supported more than 4,000 community and education projects in the United States, Canada and Mexico through grants totaling more than $32 million. Each year brings new challenges, and 2011 was the costliest year ever for natural disasters. To help families recover and rebuild, Lowe’s and the foundation committed $4 million to disaster relief.

Being a good neighbor means being committed to improving the places our employees and customers call home. We see that as an investment in our future. Our mission is to provide impactful support to local communities, and we continue to develop new partnerships and programs to meet their needs. Together, we’ve stepped up our efforts to help families and communities manage through challenging economic times.

Hosted By

www.RochesterAreaBuilders.com 4 | March/April 2013

Join us at the April General Membership Meeting Tuesday, April 30, 2013

RAMADA HOTEL & CONFERENCE CENTER 1517 16th St SW

5pm Social Hour 6pm Dinner/ Announcements 7pm Program: GAME SHOW NIGHT!

President

Jean DeWitz, DeWitz Home Builders, Inc.

Vice President

Kevin Worden, Rochester Area Habitat for Humanity

Secretary

Kathy Einck, Maplewood Homes, LLC

Treasurer

Tony Joseph, Pompeii Painting, Inc.

Past President

Jennifer Maass, Kitchen Concepts & Creative Living

Directors

Jeremy Bigelow, Bigelow Homes John Eckerman, The Boldt Company Delbert Feenstra, Knutson Construction Services Patty Hanson, Rochester Public Utilities Carla Kilpatrick, Home Federal Savings Bank Bruce Laufenburger, First General Services of SE MN Braden Markham, Markham Homes, LLC Sam Peyton, King’s Flooring, LLC Lindsey Rippentrop, Olmsted National Bank

Builders Exchange Council Representatives

Tony Wintheiser, Hentges Glass, Chair Travis Schmidt, Weis Builders, Inc., Vice Chair Mike Benike, A.E. Benike, Inc., Past Chair

Commercial Builders Council

Sue Hanson, Rochester Title & Escrow Company, Inc., Chair Chris Terry, Knutson Construction Services, Vice Chair

Development Council Chair Mark Engel, Yaggy Colby Associates

Remodelers Council Chair

Join us for a night of networking, dinner, and a great time watching your friends and coworkers test their skills against our chosen game!

We hope to see you there! Do you harbor a secret desire to be a Game Show host? Then you’re in luck! We’re looking for a host for our Game Show Night, and it could be you! Just contact Rebekah at the RAB ofﬁce if you’re interested!

Social Sponsor:

Chris Ramsey, K&S Heating, A/C, Plumbing & Electrical

National Life Directors Joe Weis, Weis Builders, Inc.

National Directors

Steve Buss, Cornerstone Builders & Real Estate, Inc. Mike Coats, MEC Construction, Inc., Rep. David Kane, Kane & Johnson Architects, Inc.

State Directors

Jim Gander, Superior Mechanical John McGuine, J&M Consulting, LLC Mike Paradise, Bigelow Homes David Pederson, Wendland Utz, Rep. Dan Severson, Dan Severson Builders, Inc.

Executive Director

John Eischen JEischen@RochesterAreaBuilders.com

Staff

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

Rick Dold RDold@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 March/April 2013 | 5

From The Director’s Desk During the month of March, there was a series of five meetings held in the conference room at the RAB office. Participants were members of the Permit and Development Process Redesign Task Force, along with representatives from the following groups: - Commercial General Contractors - Commercial subcontractors - Residential builders and remodelers - Residential subcontractors - Developers, engineers and consultants - Staff from the various City Departments (Public Works, Building Safety, and Planning & Zoning) I would like to thank Jerry Williams, Task Force Chair, for approaching me with the idea of having these “Focus Group” meetings and making them happen. His hard work on the behalf of the City has been tremendous. I would also like to thank all the task force members who participated, with special thanks to the RAB members on the task force: Tom Pendergrast, A.E. Benike, Inc., Mike Paradise, Bigelow Homes; and David Kane, Kane & Johnson Architects. I would also like to thank those who participated as members of the focus groups. As the meetings were confidential, I can’t name specific people, but you know who you are. Hey! Our conference room is like Vegas, who knew! On a serious note, this is a perfect example of why it is important to be a member of Rochester Area Builders, Inc. Jerry was very specific with who would be invited to attend. He wanted to talk to people who had pulled permits in 2012 and talk about specific projects. He wanted to talk about what has improved and what could use more improvement. With that in mind, he turned to us. We track permits and we track who pulls the permits. We made sure that names suggested were members of Rochester Area Builders, and those were the people who were invited. As a member of Rochester Area Builders, you had a seat at the table or were represented by your peers. You had a voice. We are happy to facilitate that opportunity for you. We got your back. One thing I am very proud of during these meetings is that every group said, “Hey, how do the City Departments think we are doing?” That says a lot about the integrity and professionalism of the members of Rochester Area Builders. You want to improve the entire process, including your part of it. I did not participate in the final meeting with City staff, but Jerry told me that this meeting went well, just like the previous four, with positive comments and areas that could use improvement. The Task Force will be putting together their findings and reporting back to the Rochester City Council with further recommendations. Jerry will also be letting us know which areas that we, as the building community, need to improve. We will keep everyone posted. We will continue to find ways we can help facilitate the relationship between City Departments and our members. You will read about one new event later in this newsletter; our “Builders, Brats, and Building Safety” summer cook outs. We hope these informal meetings will be helpful to both groups. We are also working hard with the City of Rochester and Olmsted County to insert local preference into the bidding process for City and County construction projects. Rick Dold, our Public Affairs Director, presented to the City Council and County Board at their February meetings. He has met individually with council members as well city and county staff to help determine the feasibility and legality of this initiative. We will keep you posted on the progress of this initiative. Like I stated earlier, we got your back. And it is a privilege and honor to do so.

RAB Executive Director

www.RochesterAreaBuilders.com 6 | March/April 2013

Spring Showcase of

DATES AND TIMES FOR THE 2013 SPRING SHOWCASE OF HOMES Friday, April 12 Signs to be Picked Up 8:00 AM – 4:00 PM Saturday, April 13 Entries Open to Public 12:00 Noon – 5:00 PM Sunday, April 14 Entries Open to Public 12:00 Noon – 5:00 PM Saturday, April 20 Entries Open to Public 12:00 Noon – 5:00 PM Sunday, April 21 Entries Open to Public 12:00 Noon – 5:00 PM Monday, April 22 Signs to be Returned 8:00 AM – 5:00 PM

Remember these dates! Mike Allen Homes, LLC 1106 Parkview Ave NW Kasson, MN Home

Cravath Homes, LLC 435 22nd Ave SW Folwell Ridge Townhomes Townhome

MDH, Inc. – Orchard Hills Villas 688 Fox Chase Road SW Orchard Hills Villas Townhome

Bigelow & Lennon Construction, LLC 5328 Ridgeway Road NW Ridgeview Manor 3rd Home

DeWitz Home Builders, Inc. 3323 Lakeridge Lane NW Manorwood Lakes Home

Meadow Lakes Builders 3792 Berkshire Road SW The Patio Homes of Meadow Lakes Townhome

Todd Eidem Construction, Inc. 3327 Hidden Creek Lane NE Hunter Pointe Home

Otis Custom Homes, LLC 5351 Scenic View Drive SW Scenic Oaks Home

Hammer Homes, Inc. 2091 Hadley Creek Dr NE Hadley Creek Home

Premier Builders of Rochester, Inc. 5360 Loon Lane NW Ridgeview Manor Home

Leyendecker Homebuilders, LLC 441 51st Avenue NW West Park Home

Premier Builders of Rochester, Inc. 1878 Shannon Oaks Boulevard NE Shannon Oaks 3rd Home

Majestic Homes, Inc. 1783 Stone Crest Drive NE Morris Hills Home

StoneBridge Builders 1381 Autumn Ridge Road SW Bamber Valley Estates Home

Maplewood Homes, LLC 1944 Shannon Oaks Boulevard NE Shannon Oaks Third Home

Summit Custom Homes, LLC 2542 Tee Time Road SE Highlands at Hundred Acre Woods Home

MDH, Inc. 5420 Scenic View Drive SW Scenic Oaks 7th Home

Wright Homes, Inc. 5831 Dogwood Court NW Crimson Ridge Townhome

Bigelow Homes, LLC 5590 Harvest Lake Drive NW Harvestview Home Bigelow Homes, LLC 6357 Granite Drive NW Boulder Ridge Home Bigelow Homes, LLC 540 Panorama Circle NW Whispering Oaks Townhome Community Bigelow Homes, LLC 2433 Dallman Lane SE Hawk Ridge Townhome Community Burdick Builders, Inc. 619 Somerby Parkway Somerby Golf Community Home Corban Homes, LLC 1735 Stone Crest Drive NE Morris Hills Home Countryside Builders, LLC 2356 Jasper Place NE Stonehedge Estates Home Countryside Builders, LLC 2348 Coral Ridge Place NE Stonehedge Townhome 4th Townhome Community

MDH, Inc. - Bamber Valley Estates 4228 Autumn View Lane SW Bamber Valley Estates Home MDH, Inc. – Bamber Valley Estates 3824 Mayo Lake Road SW Reﬂections on Mayo Lake Home

s as e i r Ent irst of F ne! li Dead

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R ISI N G S TAR AWAR D

Kathy Einck Maplewood Homes, LLC

Chris Ramsey K&S Heating, A/C, Plumbing & Electrical

David Kane Kane & Johnson Architects, Inc.

PRE SID EN Tâ&#x20AC;&#x2122; S AWARD

B U ILDE R O F T HE YE A R

A S SO C I AT E O F T HE YE A R

RAB Award Winners for 2013

Rory Lenton Minnesota Energy Resources Corporation

Dave Pederson Wendland Utz

Award presented by Jennifer Maass, Kitchen Concepts, (Center Left) and John Eischen, RAB (Right)

www.RochesterAreaBuilders.com 8 | March/April 2013

C O R NE R S T O NE AWA R D

S TA F F S TA R AWA R D

Tom Walsky Habitat ReStore

Dave Pederson, Mark Utz. Chris Wendland and Jerrie Hayes Wendland Utz

About the Denny Hanson Memorial Award D EN N Y H AN SO N M EMORIAL AWARD

In 2012, we lost a dear friend, a valued RAB member, and a tireless community leader. Denny Hanson was all this, and much more. In recognition of Denny’s unique contributions to RAB, and to the community as a whole, the RAB Board has created the Denny Hanson Memorial Award. This award gives special recognition to an individual or group that has shown an outstanding commitment to the promotion and growth of southeast Minnesota, with particular attention to the construction industry. Just as Denny was unique and special, so shall be the award given in his name. RAB has never given an award that does not require that the recipient be a member of Rochester Area Builders, until now. The criteria for the Denny Hanson Memorial Award are as follows: 

Linda Hanson on behalf of The Hanson Family Award presented by Mike Paradise, Bigelow Homes, (Left) and John Eischen, RAB (Right)

 

The recipient shall be an involved member of the community The recipient shall be a proponent & advocate for the construction industry, and The recipient shall have made a signiﬁcant impact on the construction industry

This award is also unique in that it is not an award given out every year, but only when someone emerges who displays many of the qualities with which Denny Hanson blessed our community. Rochester Area Builders was pleased to present the 2012 Denny Hanson Memorial Award to Linda Hanson and the Hanson family. Www.RochesterAreaBuilders.com March/April 2013 | 9

Association Scrapbook

www.RochesterAreaBuilders.com 10 | March/April 2013

January General Membership Meeting

February Networking Night

Association Scrapbook

Thanks to Peopleâ&#x20AC;&#x2122;s Energy Cooperative for Hosting!

Www.RochesterAreaBuilders.com March/April 2013 | 11

108 Elton Hills Lane NW Rochester, MN 55901 (507) 282-7698 To:�All�Members�

Re:�Industry�Alert�–�Time�Sensitive�–�Read�NOW!� � The�Minnesota�Department�of�Labor�and�Industry�released�draft�versions�of�their�recommended�Minnesota� amendments�for�the�2012�International�Residential�Code.�The�code�draft�includes�disappointing�amendments�for� our�industry�and�Minnesota�homeowners.� The�proposed�2012�IRC�would�require�fire�sprinklers�in�all�single�family�homes�with�a�floor�area�of�4,500�square� feet.�The�floor�area�includes�all�floors�and�basements�whether�finished�or�not,�but�excludes�garages.�Of�course,�this� is�unacceptable�to�our�industry�and�BAM�will�be�challenging�this�amendment�as�part�of�an�Administrative�Law� Judge�hearing.�BAM�has�gathered�much�evidence�that�refutes�the�need�for�fire�sprinklers.� If�BAM�is�successful�the�Chief�Administrative�Law�Judge’s�(ALJ)�recommendation�will�be�that�sprinklers�in�single� family�homes�of�4,500�square�feet�will�not�be�required.�The�Governor�will�sign�the�new�rules�and�they�will�become� part�of�the�State�Building�Code.�Obviously�a�lot�rests�on�the�ALJ�outcome.�The�hearing�will�likely�take�place�in�April� 2013�or�May�2013.�It�will�take�a�few�months�to�go�through�the�ALJ�process.�So�the�earliest�the�code�will�be�adopted� is�not�until�2014.�� Here�is�where�we�need�YOU!�If�you�are�a�builder,�this�affects�YOU.�If�you�supply�materials�or�a�service�to�a�builder,� this�affects�YOU.�We�need�your�financial�support!��RAB�has�supplied�funds�to�the�BAM�Legal�Action�Fund�for� several�years�and�we�have�not�raised�dues�nor�have�we�assessed�our�members�to�send�this�support�and�we�want� to�continue�to�do�that.�We�are�asking�you�to�voluntarily�help�BAM�and�RAB�fund�the�legal�team�that�will�be� representing�our�industry�at�the�ALJ.��Our�industry�is�beginning�to�improve�and�this�requirement�will�have�serious� affects�on�our�industry.�RAB’s�goal�is�to�raise�$20,000.��The�estimated�cost�of�fire�sprinklers�for�a�4,500�sqft�home�is� $2.30/sqft�or�$10,350.�The�math�is�simple!�Please�fill�out�the�form�below.�Help�us�keep�fire�sprinklers�a� homeowner�choice�and�not�a�government�mandate!� � Thank�you�for�your�support,�

� Jean�DeWitz,�DeWitz�Home�Builders� 2013�RAB�president� � �� Yes!�I�want�to�support�the�fight�to�prohibit�the�code�requirement�for�fire�sprinklers�in�single� family�homes!� � �$50�� $100� � �$200� � �Other�amount� Enclosed�is�my�check�for�� Please�make�checks�payable�to�RAB�with�BAM�ALJ�Fund�in�the�memo�line�and�return�to�RAB�in� the�enclosed�envelope.� �

www.RochesterAreaBuilders.com 12 | March/April 2013

Thank you to the following members for their support of the ALJ Fund Drive! Walt Pappas Construction Stevens Heating, Inc.

� � � � � � � ��

Individuals who have donated: Jan Blevins Kevin Worden There’s always room for more! Read the letter on the previous page, and donate today! Www.RochesterAreaBuilders.com March/April 2013 | 13

GREATEST SHOW ON E A R T H

34 Annual th

The Home Show gets me strong leads that turn into signed projects a few months down the road. Simply having a forum where you We have already are getting your name out there and had quite a few are positioned where hundreds of people from the potential customers walk by is great! home show come This is always a great in for proposals. show to kick off the year.

LETâ&#x20AC;&#x2122;S TALK NUMBERS

Our Saturday attendance was up 25% over last year ! 2013: 3,265 2012: 2,609 Despite poor weather and an advisement for no travel from the National Weather Service on Sunday, we still finished with our highest attendance in 7 years, slightly ahead of last yearâ&#x20AC;&#x2122;s already promising numbers. 2013: 5,311 2012: 5,053

www.RochesterAreaBuilders.com 14 | March/April 2013

Committee Chairpersons AMBASSADORS Curt Wigham, Express Employment Professionals AWARDS Kathy Einck, Maplewood Homes, LLC BUILDING MAINTENANCE TJ Schutz, Advanced Building Center, Inc. BUILDING SAFETY ADVISORY Aaron Benike, A. E. Benike, Inc.. COMMUNITY RELATIONS Tracy Hoover, Ferguson Enterprises DISPUTE RESOLUTION Jay Burke, Heartwood Homes of Rochester, Inc. EDUCATION Les Radcliffe, Radcliffe Homes & Remodeling EXECUTIVE Jean DeWitz, DeWitz Home Builders, Inc. FINANCE Tony Joseph, Pompeii Painting, Inc. GOLF OUTING Jill Eggerichs, McGladrey GOVERNMENT AFFAIRS Rory Lenton, Minnesota Energy Resources Corporation GREEN BUILDING Curt Shellum, Solar Connection, Inc. HOME SHOW – 2013 Jeff Kalmes, Hillers Flooring America MARKETING Jeff Weisz, Data-Smart Computers, Inc. MEMBERSHIP & RETENTION Adam Benike, A. E. Benike, Inc. NOMINATING Jean DeWitz, DeWitz Home Builders, Inc. PERSONNEL Diane Quinn, Beyond Kitchens, LLC PROGRAM Carissa Frericks, Rochester Title & Escrow Company, Inc. PUBLIC WORKS ADVISORY NONE SHOWCASE OF HOMES Travis Nemechek, Kruse Lumber SPIKE CLUB Jim Buchan, Energy Products & Design, Inc. SPORTING CLAYS Jim Nicholas, Wildwood Bar and Grill

Councils

BER EXECUTIVE COMMITTEE Tony Wintheiser, Hentges Glass Company CBC EXECUTIVE COMMITTEE Sue Hanson, Rochester Title & Escrow Company, Inc. DEVELOPMENT COUNCIL Vacant REMODELERS EXECUTIVE COMMITTEE Chris Ramsey, K&S Heating, A/C, Plumbing & Electrical REMODELERS TOUR Karen Blissenbach, Design Studio B REMODEL IT RIGHT DISPLAY Bob Robertson, Radcliffe Homes & Remodeling

Committee Updates RAB GOLF OUTING COMMITTEE CHAIRPERSON: Jill Eggerichs, McGladrey It’s time to mark your calendar for the RAB Golf Outing, presented by Advanced Disposal! It has been scheduled for Thursday, June 6th. New this year, we will have an 18 hole, 11 a.m. shotgun start on Willow Creek limited to the ﬁrst 144 golfers. We will have lunch on the course for all golfers, provided by Think Mutual Bank and hors d’ourves at the 19th hole along with the awards ceremony. We hope to be done by 5:30, giving everyone the chance to get home, to the kid’s ball game, or another community activity. Everyone will be receiving information about sponsoring a tee box or green contest, donating a door prize, or participating in some other way. There are sponsorships in every price range! Please plan to participate - it’s a lot of fun! Entry information, including the new format, will be mailed in mid April. SHOWCASE COMMITTEE CHAIRPERSON: Travis Nemechek, Kruse Lumber The committee has set the dates for the Spring Showcase of Homes. It will be held April 13th – April 14th and April 20th – 21st. The ﬁnal deadline for entry was March 21st. I hope that your house is entered so it can be showcased for the public to view! 2013 BUILDERS HOME SHOW COMMITTEE CHAIRPERSON: Christy Buchan, Energy Products & Design, Inc. The committee would like to thank all the many members who helped to make the 2013 Builders Home Show such a success. So many of you provided support by sponsoring events, creating great booths, presenting interesting seminars, donating a needed item, or just giving moral support. We couldn’t have done it without you - THANKS! 2013 Builders Home Show Committee Christy Buchan, Energy Products & Design, Inc. - Chairperson Jeff Kalmes, Hiller’s Flooring America - Vice Chairperson Wayne Claire, WC Construction Dan Forliti, Warner’s Stellian Matt Hanson, Great River Overhead Door Josh Johnson, Widseth-Smith-Nolting Claire Lochmondy – Signal Hill Kevin Sternberg, Countryside Builders Lori Reiland, Custom Retaining Jim Thompson, Thompson’s Garage Door Tom Walsky, Habitat Restore/Winona Laurel Schacht (someone get her to join!) Sam Peyton, King’s Flooring

Www.RochesterAreaBuilders.com March/April 2013 | 15

Builders, Brats & Building Safety Attention Builder Members! Join us on the 4th Wednesday of each month this summer for lunch and conversation with the Building Safety Department of the City of Rochester. While you enjoy brats and soda, you can get to know the inspectors and department heads, as well as be brought up to date on any code or department topics. Stop in for 20 minutes and get some food, or stay for the full 2 hours! The dates are:

Wednesday, May 22 Wednesday, June 26 Wednesday, July 24 Wednesday, Aug. 28

www.RochesterAreaBuilders.com 16 | March/April 2013

11 am—1 pm 11 am—1 pm 11 am—1 pm 11 am—1 pm

Thank You!

January General Membership Meeting Thank you to Pella Windows for hosting the January General Membership Meeting. They were represented by Danny Bendix. Desert was sponsored by Home Federal. They were represented by Al Mannino.

New members in attendance at the meeting were: Randy Olson, Dunham Associates and Greg Roeder, Spring Valley Overhead Door. Welcome to RAB! SOCIAL HOUR GAME The membership committee provided the game for the social hour this month, Wii Mario Cart racing, to promote the RAB 500 membership drive. The winner this month was Travis Nemechek, Kruse Lumber. He received a $15 gift certiﬁcate to Beetles Bar and Grill. GIVEAWAYS Craig Richardt, TW Companies won the free dinner at The Loop compliments of Barb Flicker and the Post-Bulletin. Enjoy your dinner, Jean, I mean, Craig….

February Networking Night Thank you to People’s Energy Cooperative for hosting the February Networking Night. They were represented by Elaine Garry. The new facility is fantastic and many of the members enjoyed a tour around the new place. Thank you for providing the great space and the delicious food at the meeting! GIVEAWAYS Mark Van Tassel, B&C Plumbing was the lucky winner of the free dinner at The Loop compliments of Barb Flicker and the Post-Bulletin. Enjoy your dinner, Mark. Heartland Security gave away Twins Tickets which were won by Charlie Brown, PC Applications. Hey, Charlie, take me out to the ball game!

MemberMemos

- With the hard work and focused efforts of all employees, Alvin E. Benike, Inc. is proud to announce having reached a milestone that has been over 3 ½ years in the making - Over 1,000,000 work hours without a time lost injury. Achieving this goal truly underscores an ongoing commitment to safety. All employees, from top management to entry level apprentices, made this possible by making “Safety First” not just a phrase but a reality, every hour, every day, and on all worksites. -Congratulations to Energy Products & Design, Inc., who won the Vesta Award for Hearth Retailer of the year! Presented by national publication Hearth & Home magazine, this award "honors an exceptional retailer whose frontline efforts are indespensable in moving the hearth, barbecue and patio industries forward, and who demonstrate exceptional excellence in attracting sales and delivering services." Congratulations to Energy Products & Design, Inc. on their wonderful acheivment! -Kreofsky Building Supplies, one of the last locally owned, full-service lumberyards in southeast Minnesota, has doubled its size at a new Rochester location. Now at 3731 Enterprise Drive SW, the new space has a larger inventory, a superior showroom, and more convenient access. Five highly trained sales people, including a kitchen and bath designer, provide an added dimension of service, expertise, and commitment. - Congratulations to Wildwood Bar & Grill, and owner Jim Nicholas. Wildwood has been named one of Rochester's best new restaurants by Rochester Magazine.

Www.RochesterAreaBuilders.com March/April 2013 | 17

Members

2013 Commercial Builders Council

109 Members as of 2/30/13 Ed Lunn Construction, Inc. AB Systems, Inc. Marvin Windows & Accord Electric, Inc. Doors Advanced Disposal Mavo Systems, Inc. Associated Bank McGhie & Betts, Inc. Alvin E. Benike, Inc. The Blue Book of Building McGough Construction MEC Construction, Inc. & Construction Medcare Products, Inc. The Boldt Company Braun Intertec Corporation MEP Associates Briese Iron Works, Inc. Merchants Bank Merit Contracting, Inc. Brock White Company Minnesota Energy C.O. Brown Agency Cambria Resources Corp. Carpet One Minnwest Bank Century Painting & Nickelson Painting, Inc. Decorating, LLC Olmsted National Bank Chosen Valley Testing, Inc. OnSite Construction Palmer Soderberg, Inc. Partnership, Inc. People’s Energy Counselor Realty of Cooperative Rochester, Inc. Pompeii Painting, Inc. County Materials Prehn Building Sales, Inc. Corporation Premier Bank Rochester CRW architecture + ProBuild Company, LLC design group, inc. Reliable Contractors, Inc. Custom Alarm/Custom Rochester Area Communications, Inc. Appraisals, LLC Dunham Associates, Inc. Rochester Area Econ. Dunlap & Seeger Development, Inc. Eastwood Bank Rochester Public eci, llc Utilities Elcor Construction Rochester Ready Mix Energy Panel Structures Concrete Co Energy Products & Rochester Sign Service, Inc. Design, Inc. Rochester Title & Enventis Escrow Company, Inc. Expert Insulation, Inc. Ryan Electric of Ferguson Enterprises Rochester, Inc. Friedrich Construction, Inc. Schoeppner, Inc. Gerhards Schwab, LLC Goodin Company Schwickert’s Tecta Haley Comfort/ America, LLC FireSide by Haley Stantec W.L. Hall Company Structural Design HGA Architects and Group, Inc. Engineers Superior Mechanical HDR Architecture Tamarack Materials of Heartman Insurance Rochester, Inc. Hiller’s Flooring America Think Mutual Bank HiMec at Home Tonna Mechanical, Inc. Home Federal Savings TSP Architects & Bank Engineers Hunt Electric Corporation TW Construction J&M Consulting Solutions, LLC K&M Glass Company United Rentals K&S Heating, A/C, The Urban Studio Plumbing & Electrical US Bank Kane & Johnson Valor Mechanical, Inc. Architects, Inc. Veit Companies Key Builders, Inc. Vertical Limit Construction Knutson Construction Viking Automatic Services Sprinkler Company Komitt Concrete, Inc. Kraus-Anderson Viking Electric Supply Construction Company Weis Builders, Inc. Kreofsky Building Supplies Wells Fargo Bank Kruse Lumber Minnesota NA Kuntz Electric, Inc. Wendland Utz Kwik Trip, Inc. Widseth, Smith, & Nolting Leitzen Concrete WHV, Inc. Products, Inc. Yaggy Colby Associates

www.RochesterAreaBuilders.com 18 | March/April 2013

C OMMERCIAL C B OUNCIL

UILDERS

a division of Rochester Area Builders, Inc.

April MEETING DATE: Wednesday, April 3rd, 2013 TIME: Registration & Networking at 7:00 A.M.

Program at 7:30 A.M.

PLACE: Ramada Hotel & Conference Center PROGRAM: Destination Medical Center SPEAKERS: Mayo Clinic Representatives EXECUTIVE COMMITTEE Chairperson: Sue Hanson, Rochester Title & Escrow Company, Inc. Vice Chairperson: Chris Terry, Knutson Construction Services Past Chairperson: Rob Jones, Superior Mechanical Architects, Inc. Members-at-Large: John Hill, Schwab, LLC Shaun Knode, AB Systems, Inc. John Kuntz, Kuntz Electric, Inc. Levi Kaiser, A.E. Benike, Inc. Nick Leimer, Kraus-Anderson Construction Company New Members The CBC Executive Committee approved the following new members. Dunham Associates Randy Olson 50 South 6th Street, Suite 1100 Minneapolis, MN 55402 612-465-7550 Medcare Products Candy Wolff 151 East Cliff Road, Suite 10 Burnsville, MN 55337 800-695-4479 WHV, Inc. Anthony Shirek 1712 3rd Ave SE Rochester, MN 55904 507-280-4201

April Meeting DMC is a 20-year, multi-billion dollar initiative to expand Minnesota’s position as one of the world’s truly global Destination Medical Centers in future decades. Join us in April to hear a presentation by The Mayo Clinic on the many benefits of DMC to our community, and in particular to the Building Industry. Some of the highlights include: 1. The DMC finance plan is very low risk, but offers a very high return to Minnesota. 2. The direct benefits of DMC to Minnesota are enormous. 3. This is for the long term – this allows our community to plan for the next two decades – to be as strong as possible and insure that the jobs and a bright future will be there for our community and our kids. 4. DMC will anchor Minnesota’s status and leadership in the health and biosciences for generations to come.

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!

February 2013

�� Members from across the state came to St. Paul January 30th for BAM’s Builder Day at the Capitol. Representing all 3,000 members of the association and the Minnesota residential construction industry attendees met with a majority of the Minnesota Legislature to talk about the issues facing our industry. Representative Mike Beard, Senator John Pederson, and Senator David Tomassoni each spoke to BAM members about how important it is to meet with your legislators in person. It’s important to introduce yourself and continue to build your relationship. BAM’s lobbying team – Larry Redmond and Brian Halloran – echoed that message stating that making a connection “eyeball to eyeball” really makes a difference. When you take the time to get to know your legislator, they make a personal connection with not only you – but the issues that are most important to you. When BAM sends an alert about an important bill, and you contact your legislator with a phone call or email, your contact makes more of an impact when you have a relationship with them. If you weren’t able to come to the event there’s plenty of time to build a relationship with your legislator. BAM is working hard representing you and our industry at the State Capitol and we will be sure to keep you updated throughout session. Look for updates from BAM on what's happening and when to contact your legislators. Thank you to the members of BAM's Builder Day Task Force who worked the past several months to put together a great event. Thank you to: Rick Dold, Brian Halloran, Bryce Johnson, Jana Klein, Chad Kompelien, Rick Kot, Keith Kylmala, Jason McCarty, David Siegel, James Vagle, Duane Willenbring, and John Zirbes. They put together a fabulous event. Thank you also to champion event sponsors Builders Association of the Twin Cities, Home Builders Association Fargo-Moorhead, and Skuttle Tight, and advocate sponsor Nor-Son Inc.

�� BUILDERS

ASSOCIATION OF MINNESOTA

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

Executive Committee President Chad Kompelein Builder VP Mike Paradise Associate VP Terry Curtis President Elect Rick Kot Treasurer George Cundy Secretary KC Chermak Past President Keith Kylmala NAHB Representative Kathe Ostrom

BAM’s Builder Day at the Capitol event was the first opportunity for many members to meet BAM’s new Executive Vice President Remi Stone. Her first day with BAM was January 16th. She brings more than 20 years of extensive experience with the Minnesota state government and the construction industry to her new role having previously worked as a lobbyist, practicing attorney, and director of government affairs for several organizations in 23 states and Washington D.C. “We welcome Remi’s experience and leadership to the BAM community,” said Chad Kompelien, 2013 BAM President. “She has a unique knowledge of the homebuilding industry, our association, the legislative process, our issues, and a unique perspective of subcontractors, suppliers, building officials, regulators and municipalities across the state. In her new role as executive vice president, she will be responsible for extending BAM’s excellent reputation at the State Capitol and delivering value to the statewide membership.” Stone has experience representing the Residential Subcontractors and Suppliers and the Association of Subcontractors, the statewide building officials association (AMBO), the League of Minnesota Cities and the Coalition of Greater Minnesota Cities, and the Builders Association of Minnesota and the Builders Association of the Twin Cities. Stone most recently served as the regional director of government affairs for MillerCoors Brewing Company. Earlier in her career, Stone served as Planning Commissioner for the City of Roseville and committee administrator to Minnesota State Senator Jim Vickerman. Stone earned bachelor’s degrees in political science and sociology from the University of Wisconsin, Eau Claire, and served in the United States Air Force, Minnesota Air National Guard. Stone also earned a juris doctorate from the Hamline University School of Law where she currently serves as an adjunct professor. “BAM is refocused, recharged, and hungry for success,” Kompelien said, “And Remi is the right leader to move BAM forward, driven by our core focus to represent the Minnesota home building industry in the legislative and regulatory arenas and the courts.”

Www.RochesterAreaBuilders.com March/April 2013 | 19

BUILDERS

ASSOCIATION OF MINNESOTA

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

www.RochesterAreaBuilders.com 20 | March/April 2013

March 2013

�� Approaching the halfway mark of session, between the House of Representatives and State Senate, Minnesota Legislators have introduced nearly 3,000 bills. Among them are a series of bills that impact, to varying degrees, the home building and remodeling industry. BAM members' lobbying team is actively engaged at the Capitol to make sure that this seemingly never ending supply of "helpful" policy ideas are stopped, advanced, or mitigated. The month of March brings Policy Committee deadlines and a small degree of relief from the onslaught of proposals and hearings within the Legislature and all the dodging and weaving among interest groups. After committee deadlines we will sprint to the end of session, slated for May 20th, working on big tax and spending bills, floor amendments, and final negotiations on proposals that remain "alive". Below is a sampling of the bills BAM is bird-dogging for its members. Risk Transfer / Anti-Indemnification Bills: These bills are designed to make certain construction contract indemnification and insurance clauses void and unenforceable. The MSA contains a blanket prohibition on these contract provisions, while the design professional bill carves out an exception for engineers and architects. Minnesota Subcontractors Association (MSA) Bill HF644 (Atkins – DFL, Inver Grove Heights) / SF561 (Jensen - DFL, Owatonna) Design Professionals Bill HF446 (Hortman – DFL, Brooklyn Park) / SF388 (Carlson – DFL, Eagan) Retainage: Subcontractors are pursuing legislation to regulate the manner in which retainage is held and paid to include retainage held in interest bearing accounts and be paid within 30 days upon substantial completion of work. Retainage – HF952 (Sundun – DFL, Esko) / SF841 (Dahle – DFL, Northfield) Radon Bills: These bills intend to raise public awareness of radon's potential health impacts. The Minnesota Department of Health's Healthy Homes bill requires good faith disclosures at closing, while "Janet's" law requires radon testing prior to completing residential real estate transactions. Healthy Homes Radon Disclosure Requirement HF662 (Laine – DFL, Columbia Heights) / SF887 (Marty – DFL, Roseville) Janet’s Law HF816 (Anderson, P. – R, Starbuck) Street Improvement Districts: Cities continue to look to the Legislature to grant them authority for new revenue streams. These bills allow cities the ability to create districts within their jurisdictions to capture transportation impact "fees" from new and existing properties to pay for improvements linked to their capital improvement plans. Street Improvement Districts SF607 (Carlson – DFL, Eagan) / HF745 (Erhardt – DFL, Edina) and HF931 (Erhardt – DFL, Edina) / SF891 (Dibble – DFL, Minneapolis) Non-wage Payments to Construction Workers Reporting to Department of Revenue: Carpenter Union interests are pursuing legislation to require all payments in excess of $600 to be reported to the Department of Revenue. This

effort is rooted in the on-going effort to address "misclassified employees". Non-wage Payments SF863 (Dziezdic – DFL, Minneapolis) / HF1062 (Anzelc – DFL, Balsam Township) B2B Sales Tax: Governor Dayton's comprehensive tax reform plan continues to be discussed the the Capitol. Included in the proposal is a overall rate reduction and expansion of sales tax to cover services, although indications from the Governor's office is that construction services are not intended to be included in the proposal. The final bill will not be complete until mid-May 2013. Governor's Tax Bill HF677 (Lenczewski – DFL, Minneapolis) / SF552 (Skoe – DFL, Clearbrook) Statute of Repose: This bill extends the period of repose from 12 years to 14 years. Although the repose period is moved out to 14 years, it does not impact the industry's warranty period nor does it change the statute of limitations. Statute of Repose HF450 (Atkins – DFL, Inver Grove Heights) / SF392 (Latz – DFL, St. Louis Park) Contractor Recovery Fund: The Department of Labor and Industry's Housekeeping Bill contains a one-word change to the Contractor Recovery Fund. By deleting the word "person" and inserting the word "individual" the Department is intending to deter corporations from tapping into the fund and reserving it for actual homeowners. DLI Housekeeping Bill HF578 (Isaacson – DFL, Shoreview) / SF656 (Schmit – DFL, Red Wing) Sprinkler Mandate: A stand-alone bill has been introduced that prohibits sprinkler suppression systems from being mandated for installation in new single-family construction. HF499 (Fitzsimmons – R, Albertville) Park Dedication Fee: A bill to allow Hennepin County Parks Board to collect a park dedication fee has been amended with language to require all park dedication fees to be set through a fair market value standard. Homeowner's Insurance Coverage / Residential Contracting Claims: This bill, pursued by the exterior contractors, requires insurance companies to disclose to homeowners when certain coverages are dropped from their policies, allows homeowners to communicate with contractors, and requires insurance companies to include contractors in payments made on a claim where the contractor is engaged for the work. HO Insurance Coverage HF930 (Nelson – DFL, Brooklyn Park) / SF722 (Pederson – R, St. Cloud) Extended Producer Responsibility: This bill requires carpet, paint and battery manufacturers, distributors and retailer to establish "product stewardship programs" for the life-cycle of their products. EPP HF865 (Sundin – DFL, Esko) / SF639 (Eaton – DFL, Brooklyn Center) We will keep you updated on these bills and BAM’s progress fighting for our members and the industry throughout session. Look for more information in BAM’s weekly emails.

PUBLIC WORKS DEPARTMENT NEWS Contributed by: Megan Duffey, Storm Water Educator, Rochester Public Works Department Rochester Public Works Department, 201 4th Street SE, Room 108, Rochester, MN 55904, 507-328-2440

Construction waste management needs to be A Litter Bit Better!

Every year since 2007, thousands of residents of the City of Rochester have participated in the annual city-wide litter pick up event called Help Make Rochester A Litter Bit Better! Over 70 tons of litter has been removed from Rochester to date through this program. There are many sources of this litter, including construction sites. Here are two examples of volunteers have said about construction site waste: “The majority of the litter appeared to be construction site waste from the ever-present overﬂowing construction dumpsters in our neighborhood.” “In our area, construction sites were number one when it came to producing litter.” Won’t you help make Rochester A Litter Bit Better! by properly managing your waste onsite? The Minnesota Pollution Control Agency’s Construction Stormwater Permit states: “collected sediment, asphalt and concrete millings, ﬂoating debris, paper, plastic, fabric, construction and demolition debris and other wastes must be disposed of properly and must comply with MPCA disposal requirements.” Proper waste management will not only help you comply with your permit, it improves environmental quality and shows community pride.

Uncovered and overﬂowing dumpsters have the potential to turn garbage into litter.

Steps to managing your construction waste: 1. Identify all storm drains and conveyance systems near the construction area and keep them free of garbage. 2. Use fencing to construct a “garbage corral” or have a dumpster placed on the site in a convenient location with easy access. Keep the container or containment area covered to prevent the wind from carrying away waste. 3. Inform vendors and subcontractors of your waste management plan and locations of receptacles to ensure they keep your site clean by putting debris in the correct place. 4. Walk the site daily to collect renegade trash. A perimeter fence tall enough to catch windblown debris is another option to prevent debris from leaving the site and becoming litter. 5. Transport your waste to a permitted solid waste facility before the container is overfull. Make sure the load is covered during transport. 6. Recycle. By sorting your construction waste or demolition debris, you may be able to save on disposal costs.

Help Make Rochester A Litter Bit Better! April 20 – 27, 2013 To sign up for a pick-up location visit: www.RNeighbors.org Www.RochesterAreaBuilders.com March/April 2013 | 21

Rochester Building Permits New Residential Single Family Dwelling

JANUARY

VALUATION

4,537,621

FEBRUARY

VALUATION

2,971,537

January/February 2013

Single Family Homes 2004

January

2005 2006

2007

2008

2009

2010

2011 2012

2013

Townhome Dwelling

February

Two-Family Houses

Multi-Family Bldgs

TOTAL

Manufactured Home

March

April

110

May

106

June

109

Existing Residential Deck Addition

4,500

Room Addition

41,637

July

Porch Additions

10,000

August

Other Additions

September

283,954

October

November

Basement Finish Alterations Multi-Family Addition Multi-Family Alterations

400,965

292,588

654,730

December

TOTAL

60,583

Assembly (Church)

Assembly (General)

Assembly (Restaurant/Bar)

Business

Education

Factory/Industrial

Institution

Mercantile

660,000

660,588

Miscelaneous

Utility (General)

Residential (Care/Hotel/Motel)

Storage (General)

Storage (Warehouse)

Existing Commercial 0

451,634

1,875,606

10,935,998

Structural Shell

“White Box”

Interior Demolition Only

Other Phased Permits

Business Signs

130,300

51,200

Advertising Sign

Footings & Foundations

142,000

400,000

Alterations

Other Construction

Demolition

www.RochesterAreaBuilders.com 22 | March/April 2013

702

506

417

302

274

200

191

299

*total may differ as permits may have been voided.

New Commercial

Addition

65 962

Year To Date Statistics 2013 VALUATION

NO.

2012 VALUATION

Building Permits Issued to Date

242

24,026,941

252

46,281,164

Single Family Dwelling

7,509,158

4,627,969

Multi-Family Buildings Total Units: 0

1,003

11,217,288

908

12,014,183

308

6,986,776

290

6,731,086

8,950

4,325

Mechanical

267

1,971,026

253

2,665,745

Gas Piping

72,320

85,067

Fireplace

163,626

90,999

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

Hydronic System Plumbing

Total Permits YTD

460,000

1,238,840

241

1,554,590

224

1,198,121

1,245

35,244,229

1,160

58,295,347

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

Byron

Building Permits JANUARY

Year of 2013

New Residential

NUMBER

VALUATION

180,200

2,000

NUMBER

VALUATION

270,800

Alterations

43,000

Basement Finish

7,000

Single Family Attached

FEBRUARY New Residential Single Family Detached Existing Residential

Pine Island

Building Permits JANUARY

Year of 2013

Existing Residential Alterations Existing Commercial Alterations

NUMBER

VALUATION

11,000

NUMBER

VALUATION

10,000

NUMBER

VALUATION

8,900

101,000

FEBRUARY Existing Residential Alterations Existing Commercial Additions

January/February 2013 Monthly Housing Data

Existing Residential Basement Finish

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) Monthly Housing Data

New Listings Active Listings Year to Date Pending Listing Sold Listings Sold Listings Year to Date Median Sales Price (SOLD) SOLD Days on Market (DOM) Avg. Year to Date (DOM)

Jan. 2013

Jan. 2012

% Change

178 669

137 794

29.9% -15.7%

110 96 96

111 90 90

-0.9% 6.7% 6.7%

149,900

146,900

2.0%

119

160 -25.62%

119

160 -25.62%

Feb. 2013

Feb. 2012

% Change

201 873

228 1,022

-11.8% -14.6%

140 79 181

138 104 194

1.4% -24.0% -6.7%

149,900

144,200

4.0%

120

111

8.11%

118

134 -11.94%

Information and downloads available at South East Minnesota Association of REALTORSâ&#x20AC;&#x2122; Website: http://semnrealtors.org/general/stats_market-trends.html

Information Provided By:

Www.RochesterAreaBuilders.com March/April 2013 | 23

Membership Information

Membership Renewals

as of 1/31/13

One Year

Pro Image Promotions & Apparel Shanahan Building & Remodeling, LLC

2012 2012

Two to Four Years

An interview with Bob Gill Walking into Bob Gill’s office, it is immediately apparent that for many years he’s been an important part of the Rochester Building industry in general, and of the Rochester Area Builders in particular. His walls are lined with multiple plaques, certificates, and awards, most commemorating his involvement and dedication to our industry and our Association. RAB celebrates its 60th anniversary this year, and Bob has been around since the very beginning, first as the representative for Kruse Lumber, and then with his own company, Robert Gill Builder, Inc. Bob recalls the very beginning of the association in 1953, as an initiative by a small group of builders, led by Larry Sathre, who had grown familiar with the builders associations in Minneapolis and St. Paul and wanted to bring it to Rochester. As Bob recalls “I worked at the Kruse Company at the time [1953], and I met with all the fellas when they were starting to form the organization. [The Kruse Company] joined in 1954, and I became the one from the company to represent The Kruse Company at most of the meetings and so forth. And that’s how I really got involved in the Builders, and I felt it was something that was more important to the building industry than some of the other things out there.” Ironically, Larry Sathre was never interested in a leadership position within RAB, so the first president was Henry Giese, who served from 1953-1956. Bob himself took the leadership role twice, in 1962 and 1979. In those early days, RAB had less community involvement, and were primarily focused on sharing knowledge with each other, and trying to effect change in the way housing was financed. Bob credits the growing NAHB for having a large effect on the availability and affordability of loans for new homes, eventually making FHA financing more prevalent. The state association, the Builders Association of Minnesota, was later organized by Rochester, St. Paul, St. Cloud and Duluth, in order to form a Home Owners Warranty program. Bob notes that RAB has become much more involved with the community and local government since the day it was begun. He feels that that involvement is very important, and is a benefit to membership. He also appreciates the greater number of social events throughout the year. In the early years, there was only the annual Christmas party. Now we offer monthly membership meetings, dozens of committees, and several great social events. The meetings and social events, Bob says, are what keep the Association going. As we continue to celebrate RAB’s 60th Anniversary Year, we’d like to extend a special thank you to Bob and all the other long standing members of our association. They are the framework that RAB was built on! Check out this space next month for a review of some of RAB’s most august members.

www.RochesterAreaBuilders.com 24 | March/April 2013

AgStar Home Mortgage Services Mosquito Squad of SE MN Schmidt Goodman Ofﬁce Products Kitchens Plus

2011 2011 2011 2010

Five to Nine Years

Cambria OnSite Pebble Creek/Western Walls Tri Star Insulation XRG Concepts, LLC Zumbrota Ford Key Builders, Inc. Thiemann Construction, Inc. Thimijan Custom Homes, LLC Elcor Realty of Rochester, Inc. JP’s Construction Remodeling & Repair, Inc. Peterson Well Drilling, Inc.

2008 2008 2008 2008 2008 2008 2006 2005 2005 2004 2004 2004

Ten to 19 Years

Gary Kline Rooﬁng, Inc. Seavey Builders, Inc. markit Think Mutual Bank Dale Gathje Construction, Inc. Michael’s Custom Cabinets, Inc. Paper & Graphics, Inc. Foster Construction, Inc. Friedrich Construction, Inc.

2003 2003 2001 2000 1999 1999 1998 1995 1995

20 to 24 Years

Scott Berg Construction, LLC Bigelow & Lennon Construction, LLC Closet Organizers Pine Island Lumber, Inc.

1992 1991 1991 1990

25 Years & More

Custom Retaining Walls & Landscaping, Inc. RE/MAX of Rochester Rochester Area Econ. Development, Inc. Brekke Fireplace Shoppe Edina Realty Home Services Ford Metro Glass, Inc. High Deﬁnition Homes, LLC Paramark Corporation Weis Builders, Inc. US Bank

1988 1988 1987 1986 1985 1985 1985 1980 1957 1955

Membership Information Membership Renewals

as of 2/28/13

One Year

Batzel Builders, Inc. The Excelsior Group, LLC Vector Windows

2012 2012 2012

Two to Four Years

Chris Fritsch Custom Homes, LLC Brandon Henderson’s Construction Plus, LLC Fieldstone Family Homes, Inc. Spahn & Rose Lumber Company Vertical Limit Construction The Boldt Company

2011 2010 2010 2010 2010 2009

Five to Nine Years

Advanced Builders, LLC Derby Construction LLC Premier Builders of Rochester, Inc. Counselor Realty of Rochester, Inc. Turri Crane Service, Inc.

2007 2007 2007 2006 2004

Ten to 19 Years

Home Systems Installation, LLC MLT Group Adair Electric Company Appliance Village Company Arcon Development, Inc. Associated Bank Merchants Bank Reliable Contractors, Inc.

NEW APPLICANTS: The ﬁrms listed below have applied for membership in the Rochester Area Builders. Any member who objects to admission of any applicant shall notify the RAB Board of Directors in writing of the objection before the next Board of Directors meeting THE KITCHEN DESIGN STUDIO 23 West Center Street Rochester, MN 55902 Contact: Don Gustason Phone: 507-288-2930 Kitchen Design & Remodel Builder Member Sponsored by: None Listed

AMERICAN FENCE COMPANY OF MINNESOTA, LLC 5867 15th Street NW Rochester, MN 55901 Contact: Jake Larson Phone: 507-289-0898 Fence Contractor Associate Member Sponsored by: None Listed

SMART HOME INNOVATIONS & ENGINEERING, INC. 212 North Broadway Rochester, MN 55906 Contact: Dan Aguilar Phone: 507-226-8555 Home Theater/Automation Sales/Installation Associate Member Sponsored by: None Listed

FIRST SECURITY BANK 316 Byron Avenue North Byron, MN 55920 Contact: Jeff Wallevand Phone: 507-775-2316 Full Service Bank Associate Member Sponsored by: Mike Coats, MEC Construction, Inc.

MEMBERSHIPS PENDING:

2002 2001 2000 2000 2000 2000 2000 1998

MEMBERSHIP TOTAL: 462 RETENTION RATE: 90.5%

1993 1991 1990

WE WELCOME THE FOLLOWING NEW MEMBERS IN MARCH:

NONE

As of 2/28/13

20 to 24 Years

United Products Corporation Quality Siding & Window, Inc. Stadsvold’s Lawn & Landscape 25 Years & More

Coldwell Banker Burnet Bob’s Construction, Inc. Pine One Hour Heating & Air Conditioning Tile Superstore & More Arrow Building Center Bigelow Homes Wells Fargo Home Mortgage

1988 1986 1986 1985 1984 1984 1964

BY DESIGN BUILDERS Kasson, MN Contact: Darek Davidson Phone: 507-634-4848 Remodeler Builder Member Sponsored by: Wayne Claire - WC Construction

WADDELL & REED Rochester, MN Contact: Scott Sorenson Phone: 507-282-5323 Financial Advisors Associate Member Sponsored by: Jean DeWitz – DeWitz Home Builders, Inc.

HG ELECTRIC, LLC Plainview, MN Contact: Don Hameister Phone: 507-272-9808 Electrical Contractor Associate Member Sponsored by: Kevin Reckinger – Bricewood, LLC

XCEL ENERGY GAS & ELECTRIC White Bear Lake, MN Contact: Juan Galloway Phone: 651-779-3519 Utility: Gas & Electric Associate Member Sponsored by: None Listed

JE DUNN CONSTRUCTION Eden Prairie, MN Contact: Mike Larson Phone: 952-830-9000 General Contractor Builder Member Sponsored by: David Kane – Kane & Johnson Architects, Inc.

Www.RochesterAreaBuilders.com March/April 2013 | 25

�� The 2013 Membership Drive is the RAB 500. Our goal is to reach 500 members by the end of 2013! For each new member you sponsor this year, you automatically get a $10 gift card to either Beetles Bar & Grill or Wildwood Bar & Grill. You also get your name entered into a drawing for the big $500 year end prize! And for every new member you bring in, you get your name entered an additional time, so don’t stop at just one! Join the race, and let’s get RAB across the ﬁnish line!

www.RochesterAreaBuilders.com 26 | March/April 2013

New Member ORIENTATION Discover How to Gain the Most from YOUR Membership! Come and listen to members of Rochester Area Builders share their experiences and adventures with RAB so that you can discover the way to gain the most from your membership in the Association. This will be a valuable time for networking and learning about the Association you are a part of.

What:

New Member Orientation

Where:

Ramdada Hotel & Conference Center 1517 16th St SW Rochester, MN 55902

When:

4 PM - 5 PM Tuesday, April 30th

This Orientation will be held immediately before the April General Membership Meeting. Come for the Orientation, and stay for the GMM!

How:

RSVP to Rebekah by Monday, Nov. 28th By Phone to 507.282.7698 or email RNielsen@RochesterAreaBuilders.com

At RAB, were all about the members. We encourage members to do business with other members, but it certainly helps if you know each other! Get started at the orientation. You’ll meet other new members, and learn how to meet a lot more! Questions that can be answered at this meeting: How do I get involved so I can meet new people and make new contacts? How can I make my name known through marketing with RAB? What events are happening when so that I can participate? What are the opportunities to attend seminars? What else can I ﬁnd out about this Association I’ve joined?

Don’t forget your business cards! Www.RochesterAreaBuilders.com March/April 2013 | 27

Four Reasons to Be Optimistic Elliot Eisenberg, Ph.D.

While economic growth has been lackluster since the end of the recession in summer 2009, this is likely to change, despite the sequester. Here are my top four reasons why, in rank order of their importance to the economy going forward.

about 5 new jobs nationwide, so 200,000 new homes means a million new jobs. And while there are still about three million ﬁrst mortgages in foreclosure, that number is way down from where it was and is on its way to the 750,000 mark, which is the historic norm.

The painful process of deleveraging is over. Deleveraging is, in part, what caused this recession to be so painful compared with all other post-WWII recessions. Non-ﬁnancial corporations have outstanding balance sheets, and have actually begun to releverage. Commercial and industrial loans are once again on the rise and the banking sector is healthier than it has ever been since record keeping began. To give just one indicator, the core capital ratio of banks is 9.2%; the post WWII average is 7.5%. Households are pretty good shape too. There are now only about nine million households seriously behind on some sort of payment. At the peak of the recession, the number was 20 million, while now credit card and auto loans and personal loan defaults are all profoundly low. The surprisingly rapid rate of deleveraging is partly why the housing sector is now recovering much faster than expected.

The next reason I am optimistic is because US corporations are profoundly competitive and have drastically lowered their costs. As a result, they are now able to compete with firms anywhere and win. Unit labor costs are way down. In the manufacturing sector, they are back to where they were 20 years ago, and as a result corporate profits have been setting records quarterly. Productivity is so high firms that would not have previously considered manufacturing here (like Apple) are now taking a second look.

The housing market has turned the corner and the next few years should be excellent. At their weakest, housing starts were 550,000 units/year. They are now at 900,000 and should grow by 200,000 units/year for the next three to four years, topping out at about 1.7 million units in 2016. This is being driven by a rise in household formations that were delayed due to the anemic job market. Note that each new home creates

Lastly, despite severe dysfunction on Capitol Hill, substantial progress has been made on the fiscal front. The cumulative impact of the tax increases and spending cuts enacted in spring 2011, during the debt-ceiling fiasco of late summer 2011, the recently completed New Year’s Day fiscal-cliff negotiations, along with the most recent sequester have come close to stabilizing our public debt-to-GDP ratio somewhere in the 75% to 78% range. With another $500 billion in spending cuts and or tax increases over the next decade, we will be done. Our economy has come a long way. The worst is over and by the end of the year the economy will hopefully look a lot different than it does now. And housing will be leading the way.

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.