Foundations - January - February by Rochester Area Builders, Inc.

99 North Construction & Paint + A&A Electric & Underground, Inc. + AB Systems, Inc. + Abacus Engineering + Abbco Company + ABC Supply Company, Inc. - Rochester + ABC Water Conditioning Service, Inc. + Above All Roofing of Rochester, Inc. + Accord Electric, Inc. + Action Plumbing, Heating & A/C + Adair Electric Company + Adamson Motors + Advanced Builders & Remodeling + Advanced Building Center, Inc. + Advanced Disposal + Advantage Cabinets, Inc. + Ag Services, Inc. + Al Barker Custom Homes, Inc. + Alexander & Sons Builders + All Craft Exteriors, LLC + All Sons' Exteriors, Inc. + Allen Outdoor Solutions, LLC + Allied Building Products + All-Star Basements + Altra Federal Credit Union + American Engineering Testing, Inc. + American Waterworks + Ames Construction, Inc. + Andersen Windows, Inc. + Anderson Builders, LLC + Anderson Construction + Appliance Village Company + Arcon Land, LLC + Arrow Building Center + Associated Bank + Athelon Enterprises, LLC + Atlas Insurance Brokers, LLC + B&C Plumbing & Heating, Inc. + Basement Water Control + Batzel Builders, Inc. + BDS Contract Door & Hardware Co. + Beckley's Office Products + Beetles Bar & Grill, Inc. + Benike Construction + Beyond Kitchens, LLC + Bigelow Homes + Bigelow-Lennon Construction, LLC + Blooming Prairie EDA + Bobcat of Rochester + Bob's Construction, Inc. + Bolton & Menk, Inc. + Brandl Anderson Homes, Inc. + Brandon Henderson's Construction Plus, LLC + 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 + Brooks Excavating Company, Inc. + Bruce Bucknell Construction, Inc. + Budget Blinds + Burdick Builders, Inc. + By Design Builders, LLC dba Wausau Homes + Byrne Electric, Inc. + Cachiaras Building & Remodeling + Cambria + Carpet One + CarpetsPlus of Rochester + Castlewood Homes, Inc. + Cemstone Supply + Centurion Ridge, LLC + Charlie's Eatery & Pub + Charter Communications/Spectrum Reach + Charterpoint Wealth Strategies + Chatfield Lumber Company, Inc. + Chladek Construction, LLC + Chosen Valley Testing, Inc. + Chris Fritsch Custom Homes, LLC + Christian Brothers Cabinets + CHS, Inc. + Citizens One Home Loans + City of Byron + City of Chatfield + City of Elgin + City of Eyota + City of Kasson + City of Lanesboro + City of Preston + City of Spring Valley + Citywide Insulation, Inc. + Claremont EDA + Clayton Thomas Blinds of Rochester + Clements Chevrolet Cadillac + CliftonLarsonAllen, LLP + Coldwell Banker Burnet + Comfort Air, Inc. + Commercial Leasing Services + Completely Clean + Consolidated Communications, Inc. + Construction Partnership, Inc. + Coordinated Business Systems, Ltd. + Cordes Construction + Cornerstone Builders & Real Estate, Inc. + Corporate Web Services, Inc. + Coulee Bank + Counselor Realty of Rochester, Inc. + Countryside Builders, LLC + Craig Swanson Builders, Inc. + Cravath Homes, LLC, dba Accessibility Solutions + Creative Curb Appeal + Creative Hardwood Floors + Crescent Electric Supply Company + CRW architecture + design group + Culligan of Rochester & Kasson + Curry's Custom Cut Gutter, LLC + Curtin Drywall, Inc. + Custom Alarm / CCI + Custom Hardwoods + Custom Homes by Bradley, Inc. + Custom Retaining Walls & Landscaping, Inc. + D2E, LLC + Dahl Home Builders, Inc. + Dakota Supply Group, Inc. + Dale Gathje Construction, Inc. + Dan Severson Builders, Inc. + Data-Smart Computers, Inc. + David Reiland Building Contractor, LLC + DeCook Builders, LLC + DeGeus Tile & Granite + Derby Construction, LLC + Design Studio B + Destination Building Center + Destination Flooring Rochester, LLC + Destination Medical Center EDA + DeWitz Home Builders, Inc. + Diamond Vogel Paints + Dickison Builders, LLC + DiNicola & Pestka Appraisals + Distinguished Homes by Mitch Hagen, LLC + DMC Plumbing & Heating, Inc. + Dodge County EDA + Dolan's Landscape Center, Inc. + DoubleTree by Hilton + DreamMaker Bath & Kitchen + Duke Aerial, Inc. + Dunham Associates, Inc. + Dunlap & Seeger PA + Dynamic Masonry Products, LLC + Eckert Construction, Inc. + ECSI System Integrators + Edel Construction, LLC + Edina Realty Home Services + Elcor Construction, Inc. + Elcor Realty of Rochester, Inc. + Elias Construction, LLC + Elite Concrete Lifting of Minnesota, LLC + Ellingson Companies + Elsmore Plumbing, LLC + Energy Panel Structures + Energy Products & Design, Inc. + Envirolastech, Inc. + EO Johnson Business Technologies + ERH Developing, Inc. + Exclusive Home Builders & Remodelers + Expert Insulation, Inc. + Express Employment Professionals + Extreme Panel Technologies, Inc. + EZ Fabricating, Inc. + F&M Community Bank + Fairway Outdoor Advertising, LLC + Fat Willy's Bar & Grill + Ferguson Enterprises + Ferguson Truck & Trailer Sales + Fieldstone Family Homes, Inc. + Fillmore County EDA + First Alliance Credit Union + First Choice Homes, LLC + First Security Bank + FloCore + Ford Metro, Inc. + Foster Construction, Inc. + Franklin Energy + Frattalone Companies, Inc. + Gander Plumbing & Heating, Inc. + Gary Kline Roofing, Inc. + Gerhards - The Kitchen & Bath Store + Godwin Dold + Goodin Company + GP Development, Inc. + Grand Meadow EDA + Great River Overhead Door + Green Lawncare Irrigation & Service Co. + Greg Speedling Contracting, Inc. + Greg Wellik Construction + H&H Company of Rochester, LLC + Habitat for Humanity - Rochester Area + Haley Comfort Systems + Hamilton Plumbing + Hammer Homes, Inc. + Hanson Construction & Specialty Cabinets, LLC + Harmony EDA + Hartman Complete Lawncare, LLC + Hayfield Window & Door Company + HDR Architecture + Heartland Security + Heartman Insurance + Heartwood Homes of Rochester, Inc. + Hentges Glass Company + HGA Architects and Engineers + Hicks Electric, Inc. + Higgins Custom Cabinetry + High Definition Homes, LLC + Highmark Builders + Hiller's Flooring America + HiMEC at Home + Hirshfield's Decorating Center + Home Federal Savings Bank + Home Improvement Professionals, Inc. + Home Systems Installation, LLC + HomeOnTrack + HomePro Home Inspections, Inc. + Horizon Equipment, LLC + Houston County EDA + Hoyer Construction, LLC + Hunt Electric Corporation + Hutch's Custom Cabinets + Hy-Vee Stores + ICC Restoration & Cleaning Services + iHeartMedia + Image Smartz, LLC + Innovative Surfaces, Inc. + Installed Building Solutions II, LLC + Insty Prints + IntegraSpec Central/Jeff Mueller Construction + Interiors by J.Curry, LLC + Int'l Brthrhd of Electrical Wrkrs Local 343 + J&M Consulting + J. Waugh Construction, LLC + J.F. Ahern Co. + Jaguar Communications + James Hardie Building Products + Jeff Feece Designs + Jeff Hinkle Custom Homes, Inc. + Jim Whiting Nursery & Garden Center, Inc. + JP's Construction Remodeling & Repair, Inc. + K&M Glass Company + K&S Heating, A/C, Plumbing & Electrical + Kahler Hospitality Group + Kariel, Inc. + Kenny Sylvester Construction, LLC + Key Builders, Inc. + Kimley-Horn & Associates, Inc. + KIMT CBS 3 + King's Flooring, LLC + Kirkland Enterprises, LLC + Kitchens Plus + Knutson Construction Services + KNXR FM - Minnesota 97.5 + Koball's Poured Walls, Inc. + Kramer Contracting, LLC + 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 + Lake City EDA + Land Home Financial Services, Inc. + Larry Newman Drywall + Larson Siding & Windows + Legends Concrete, Inc. + Leitzen Concrete Products, Inc. + Lembke Construction, Inc. + Lewiston EDA + Leyendecker Homebuilders, LLC + Lodermeier's, Inc. + Luxury Bath Remodeling + L V C Companies, Inc. + M.P. Kaye Builders, Inc. + Maas Companies, Inc. + Madery Construction, LLC + Maier Tree & Lawn + Majestic Homes, Inc. + Manufacturer's Bank & Trust + Maplewood Custom Homes + Markham Homes, LLC + Marvin Windows & Doors + Massey Land Surveying & Engineering + Master Builders, Inc. + McGough Construction + MDH, Inc. + MEC Construction, LLC + Med City Builders of Rochester, LLC + Med City Painting & Decorating, Inc. + MedCity Consulting + Meier Companies, Inc. + Menards - South + MEP Associates + Merchants Bank + Merit Contracting, Inc. + Meyer Borgman Johnson, Inc. + Michael Jack, LLC + Michael's Custom Cabinets, Inc. + Midwest Floor Solutions + Midwest Walls, LLC + Mike Allen Homes, LLC + Minnesota Building Contractors + Minnesota Energy Resources Corporation + Minnwest Bank + MLT Group + Molin Concrete Products Company + Morris Concrete, Inc. + Morton Buildings, Inc. + Mr. Sandless Floor Refinishing + M u n d f r o m Builders, Inc. + Nick Severson Construction, LLC + Norbord + North Risk Partners, C.O. Brown Division + Northgate Chiropractic Clinic + Nuss Truck & Equipment + Obermiller N e l s o n Engineering + Ohly Law Office + Olmsted County Planning Dept, Enviro Safety Div + Olmsted County Public Health + Olmsted Medical Center + Olmsted N a tional Bank + On Site Companies + Original Mechanics, Inc. + Otis Custom Homes, LLC + Overhead Door Company of Olmsted County + Paape Energy Services + Pace International + Palmer Soderberg, Inc. + Paramark Corporation + PC Applications Consultants, Inc. + Pearson Builders, Inc. + Pella Windows & Doors + Penz Custom Homes, Inc. + People's Energy Cooperative + Peterson Well Drilling, Inc. + Phantom Screens + Pine Island EDA + Pine Island Lumber + Pompeii Painting, Inc. + Post-Bulletin Company, LLC + PowerLift Doors by French Mfg, Inc. + Powers Ventures + Precision Signs + Prehn Building Sales, Inc. + Premier Bank Rochester + Premier Builders of Rochester, Inc. + Presidio + Prime Time Painting of Rochester, LLC + Priority Construction Services + Pro Image Promotions & Apparel + Quality Overhead Door Company, Inc. + Quality Siding & Window, Inc. + R&M Development Company + R. Fleming Construction, Inc. + R.J. Manemann Custom Homes + Radcliffe Homes & Remodeling + Range Custom Homes, LLC + RCON Homes, Inc. + RCTC Carpentry Program + RE/MAX Results + Real Property Appraisals, LLC + Realty Edge Team + Region Millworks, Inc. + Reliable Contractors, Inc. + Robert Gill Builder, Inc. + Robert Suk Law Office, PLLC + Rochester Area Appraisals, LLC + Rochester Area Chamber of Commerce + Rochester Area Econ. Development, Inc. (RAEDI) + Rochester Area Foundation + Rochester Asphalt & Concrete, Inc. + Rochester Building Safety Department + Rochester Concrete Products, LLC + Rochester Plumbing & Heating/Roto Rooter + Rochester Public Utilities + Rochester Public Works + Rochester Ready Mix Concrete Co + Rochester Restoration & Remediation + Rochester Title & Escrow Company, Inc. + Rory's Home Improvement, LLC + RSM US LLP + RSP Architects + Ryan & Grinde, Ltd. + Ryan Electric, Inc. + Ryan Windows & Siding, Inc. + RyMark Construction, LLC + S&S Overhead Door, Inc. + S.L. Contracting, Inc. + Sargent's Landscape Nursery, Inc. + Schoeppner, Inc. + Schwab, LLC + Schwickert's Tecta America, LLC + Scott Berberich Construction, LLC + Seavey Builders, Inc. + Shanahan Building & Remodeling, LLC + Sherwin Williams Company + Short Elliott Hendrickson Inc. (SEH) + Sign Here, Inc. + Smart Home Innovations & Engineering, Inc. + Smart-HR + Smith Schafer & Associates, Ltd. + Solar Connection, Inc. + Somerby Golf Community + Sorenson's Appliance & TV, Inc. + Southeastern MN Multi-County HRA + Space Concepts, Inc. + Spring Grove EDA + Spring Valley Overhead Door, Inc. + St. Charles EDA + Stadsvold's Lawn & Landscape + Stantec + Sterling State Bank + Steve Gentry Construction, LLC + Stevens Heating, Inc. + Stewartville EDA + Stier Construction, Inc. + Stone Expressions + StoneBridge Builders, LLC + Stonybrook Builders of Rochester, Inc. + Struve's Paint and Decorating + Summit Custom Homes, LLC + Summit Fire Protection Company + Sunbelt Rentals + Superior Mechanical + Superior Water Conditioning + Swenke Ims Contracting, LLC + Synergy Products + Tamarack Materials, Inc. + Thatcher Pools & Spas, Inc. + The Blue Book of Building & Construction + The Boldt Company + The Design Connection + The Home Depot + The Kitchen Design Studio + The Pinske Edge + The Urban Studio, LLC + Thiemann Construction, Inc. + Thimijan Custom Homes, LLC + Think Mutual Bank + Thomas Tool & Supply + Thompson's Garage Door and Openers + Tile Superstore & More + TLC Surfaces, LLC + TLS Companies, LLC + Todd Eidem Construction, Inc. + Tom Brogan Heating & Air Conditioning + Tom Kalmes Construction, Inc. + 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 Business Machines, Inc. + Tri-State Insulated Concrete Forms + TSP Architects & Engineers + Tulip Tree Studios + Turri Crane Service, Inc. + U.S. Bank + United Rentals + Valor Mechanical, Inc. + Val-U-Blinds + Veit Companies + Viking Automatic Sprinkler Company + Viking Electric Supply + Vision Homes & Remodeling, LLC + W.L. Hall Company + WA Insurance + Warners' Stellian Appliance Co., Inc. + Waste Management + Wausau Supply + Weis Builders, Inc. + Wells Concrete + Wells Fargo Bank Minnesota NA + Wells Fargo Home Mortgage + Wells Fargo Home Mortgage East + Wendland Utz + Werner Electric + West Bank + West Concord EDA + WHKS & Company + Widseth Smith Nolting + Wildwood Sports Bar and Grill + Wilson Tibor & Maves, Ltd. + Wintrust Mortgage + Wobig Construction, LLC + Women Communications, LLC + Workforce Development, Inc. + Wright Homes, Inc. + WSB & Associates, Inc. + WT Lighting + Xcel Energy + XRG Concepts, LLC + Your Home Improvement Company + Zen Custom Homes + Zillgitt Civil Design + Zimprovements = RAB

RAB

FORTY

BELoW CONNECTING. BUILDING. ENGAGING.

JAN-FEB

2 01 8 a publication of

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

Letter from The President January 2018,

As the incoming President for 2018, I would like to thank all who have helped guide me along the way and entrusted me as your fearless leader for this upcoming year. Karen Blissenbach has done a fantastic job along with all past Presidents that helped shape Rochester Area Builders as the association stands today. John Eischen will provide the Executive Leadership that we strongly lean on to guide our Association in these exciting times in the Construction Industry. This year will be full of many challenges and afford new opportunities for growth throughout our Builders and Associates. We will continue looking at ways to promote the construction industry and strive for excellence amongst our peers. Below, you will find the recent, up coming, exciting events and initiatives that we are up to:

1. To start the year in grand fashion, our Board of Directors met at Channel One Foods and spent two hours packing food to be used in the food shelf for local families. The staff generously gave us a tour afterwards only to find out that with the total volunteer effort throughout the year, they get an equivalent of 15 full time employees, what an impact! Afterwards, we spent time getting to know each other and work to plan our year ahead-- more to come on that next month. 2. The January Membership meeting is right around the corner, you won’t want to miss this as it serves as an important networking event with builders and associates. This month, Mick Frank, District Manager of Cambria, will be talking about “3 Key Ideas for Success” and sure will provide ample opportunities for questions. We will also have dinner and a presentation of Annual Awards with our distinguished members. Make sure to visit the Rochester Area

FOUNDATIONS January - February 2018

Builders website for additional information about this event. 3.Most importantly, the 2018 Home Show is right around the corner. John, Shelly and crew are working hard to make this a show not to forget. With a new venue, brings new opportunities. This show will be sure to satisfy your craving for warmer weather and hamburgers on the grill. New this Year! We are also hosting local area colleges in our Construction Career Center during the Home Show. They will provide an opportunity to learn about education for the construction trades. Don’t forget to thank our builders and associates for supporting the Rochester Area Builders Home Show! 4.Spring Showcase of Homes is right around the corner and we are hoping for a large turnout. Buyers will be out in flocks looking for the next home purchase or remodeling ideas. Be sure to get in touch with Rochester Area Builders early so we can get the paperwork completed to include you in our brochure! 5. The affordable housing issue has finally gained some momentum at the State Capitol. Governor Mark Dayton has appointed a task force at the State level to research and find possible solutions that will help mitigate this issue. Our long-time builder member, Mike Paradise, has been fortunate enough to be appointed to this board. Please make sure to thank him for agreeing to serve on this task force. The local representation will provide us with up-to-date information on this issue. Stay tuned as updates will follow later this year. In closing, this opportunity to serve as your President has given me a more sincere appreciation among our membership to entrust me with the duties of guiding Rochester Area Builders throughout this upcoming year. With the help of the incoming Vice President, Jerry Jensen, we will be sure to make this a fun and exciting year for all!

Warmly,

Index Presidents Letter..................................2 February Calendar................................3 Channel One Service......................... 4 Networking Night................................ 5 Fashion Show..................................... 6 Spring Valley Housing Incentive........ 7 Mark Dayton Affordable Housing ......................8-9 RAB Year Calendar of Events.......... 10 40 Below Year Calendar of Events.. 11 2018 Home Show Information........12 City of Rochester 2018 Speaker Series Calendar.....13 Elliott Eisenberg Economic Forecast 2018.............. 14 Med City Consulting........................... 15 Press Release – WSN...................... 16 NAHB - Eye On Housing........................ 17 Foundations Ad Opportunity............18 Lumberyard Meetings......................19 ONB...................................................20 Member Rebate Program................ 21 NAHB Auto Deal................................22 Clements Ad.....................................23 Rochester & Byron Building Permits..................... 24 Olmsted Building Permits................25 SEMAR Update.................................25 Membership Update........................26 Build Your Home Tax Free................ 27 RAB Goes Mobile.............................28 New Member Promotion................... 29 Information from RAB......................30 NAHB Member Discounts................ 31 RAB Marketing Opportunites...........32

Executive Director/Editor John Eischen Production Shelly Erpelding 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.

Brian Sheehan 2017 RAB President

108 Elton Hills Lane NW Rochester, MN 55901 Phone: 507-282-7698

www.RochesterAreaBuilders.com

FOUNDATIONS January - February 2018

The Rochester Area Builders Board of Directors volunteered their time packing food for the Channel One Regional Food Bank

FOUNDATIONS January - February 2018

www.RochesterAreaBuilders.com

January General Membership Meeting & Annual Awards Banquet Tuesday, January 30th DoubleTree by Hilton 150 South Broadway

5:00pm - Cocktail Reception 6:00pm - Dinner $25 & Announcements 7:00pm - Presentation of Annual Awards 3 Key Ideas for Success presented by Mick Frank, District Manager of Cambria Join us as we announce Rochester Area Builders annual award winners: Distinguished Service Award for Builder and Associate, Cornerstone Award, Spike of the Year, and Rising Star!

Social Sponsor:

www.RochesterAreaBuilders.com

Dessert Sponsor:

FOUNDATIONS January - February 2018

It’s time to start planning for the 2018 Studs, Struts & Stilettos fashion show! Presented by:

Beneﬁting:

Download Design Entry Form & Sponsorship Form HERE

FOUNDATIONS January - February 2018

www.RochesterAreaBuilders.com

Page 1 of 3

CITY OF SPRING VALLEY, MINNESOTA ECONOMIC DEVELOPMENT AUTHORITY

“Jump-Start” Housing Incentive Program New Construction PURPOSE: The purpose of this program is to act as a catalyst for the purchase of new or spec homes within the corporate city limits of Spring Valley. Townhomes and homes moved onto vacant lots qualify for this incentive. The Economic Development Authority (SV-EDA) is committed to satisfying the housing needs of Spring Valley. The SV-EDA realizes that adequate housing is a necessary tool to help foster a successful and growing community. PROGRAM INCENTIVETOTALS $5,000 1. Applicants shall receive $1,500.00 in Spring Valley Dollars, a $500.00 certificate to the Spring Valley Green House and Floral for two trees and landscaping, $3,000 of City and Utility permit fees waived. 2. The $1,500 is paid to the applicant in Spring Valley Dollars as an incentive for buying a spec home, or building a single- family home or townhome in the City of Spring Valley. Homes moved onto City of Spring Valley lots within city limits qualify for the $1,500 in Spring Valley dollars. ELIGIBLE APPLICANTS 1. Eligible applicants include any individual or a family who builds a “new” home within the corporate limits of Spring Valley for the purposes of making it their primary residence. For the purposes of this program, “new home” means any single-family dwelling, including townhomes, (not including “mobile” homes) built after the date of adoption of this program. “Spec” homes which have not yet been lived in or homesteaded may be included as an eligible site in this program. Homes moved onto City of Spring Valley lots qualify for the incentive. APPLICATIONS included in this information sheet. PROGRAM DESCRIPTION 1. Interested parties shall obtain an application form from City Hall, 201 South Broadway, Spring Valley, MN 55975. Complete the application and return it to the same address. 2. All applicants shall have control of the subject property (i.e. a signed purchase agreement) prior to submitting an application, applicants must submit an application for the incentive prior to closing on their new construction home. 3. For New Construction: All applicants shall submit detailed construction drawings of the proposed home with their building application. All construction shall require a building permit from the city and be completed in compliance with local zoning and the State Building Code. 4. New houses must be a minimum of 1,000 square feet of livable space in size. Garages are optional and may be attached or detached. 5. Applications for newly constructed homes must specify the estimated cost of construction. 6. Once the house is completed, the transaction has been closed, and homeownership has been verified (HUD Statement) that the applicant has indeed made the new home his or her primary residence, the Spring Valley Economic Development Authority shall issue the incentive to the homeowner. Applicants will be responsible to provide the SVEDA with a copy of closing documents to show proof of ownership 7. The Spring Valley EDA reserves the right to reject any and all applications for any reason, specified or unspecified. 8. The Spring Valley EDA will award up to a maximum of three (3) applications for housing incentives, and up to two (2), $400 early bird Rochester Area Builder’s Spring Show case entries.

Click here for the full document (Guidelines & Application) www.RochesterAreaBuilders.com

FOUNDATIONS January - February 2018

Office of Governor Mark Dayton Governor Mark Dayton Establishes New Task Force on Affordable Housing

ore than 554,000 Minnesota households struggle to afford quality housing, a 58 percent increase since 2000 Under Governor Dayton’s leadership, public and private investment totaling more than $5 billion has helped nearly 325,000 low- and moderate-income households The Governor’s Task Force on Housing will recommend policies and practices to help alleviate Minnesota’s housing challenge ST. PAUL, MN – Joined by affordable housing advocates and community stakeholders, Governor Mark Dayton today issued Executive Order 17-14, creating the Governor’s Task Force on Housing. The nonpartisan task force, comprised of experts and advocates from across Minnesota, will develop solutions to alleviate Minnesota’s housing challenge, and connect more Minnesota families with good places to live. The inability to find safe, affordable housing near job centers and good schools can be a significant barrier to employment and education opportunities for workers and families. Research further shows that children affected by housing insecurity are more likely to struggle in school. “Too many families across Minnesota struggle to afford quality housing, forcing them to cut back on other essential needs like food, medicine, and

FOUNDATIONS January - February 2018

education,” said Governor Dayton. “This Task Force will develop new solutions to address Minnesota’s housing challenges, and help ensure that more families have access to safe, affordable places to live. I urge Minnesota leaders to join me in carefully reviewing and acting upon their recommendations.” More than 554,000 Minnesota households spend at least 30 percent of their income on rent or mortgage payments. The Minnesota Housing Partnership released a report in March 2017 that found that one out of every four families in Minnesota is paying more than they can afford for housing, and more than 9,300 Minnesotans faced homelessness in 2015, including nearly 3,500 children. Since Governor Dayton took office in 2011, Minnesota has invested more than $5 billion in affordable housing projects across the state. These investment have helped nearly 325,000 low- and moderate-income Minnesota households find affordable quality housing, but there is much more to do to help more Minnesota families access quality, affordable housing. Access to affordable housing is a critical need both in Greater Minnesotan and the Twin Cities metropolitan area. The Governor remains committed to making additional policy changes and investments to improve access to affordable housing throughout the remainder of his term.

“Minnesota has a strong housing finance system, but we cannot build our way out of the current crisis. To succeed, we need to improve alignment across all sectors to better serve all Minnesotans,” said Mary Tingerthal, Commissioner of the Minnesota Housing Finance Agency. “This task force will increase our understanding of the state’s housing supply and deliver strategies to preserve existing affordable homes and create the new housing needed.” A reliable supply of affordable housing has historically been a competitive advantage for Minnesota – ensuring that growing businesses had access to the workers they needed. However, increasing housing costs have priced many families out of housing near quality employment and educational opportunities. “Homeownership is a cornerstone of strong communities and a strong economy,” said Bremer Financial CEO Jeanne Crain and member of the Itasca Project, who will co-chair the new task force. “I’m grateful that Governor Dayton has brought together this distinguished group of community leaders to tackle the critical affordable housing issues affecting job growth and economic vitality throughout Minnesota.” ...Continue on Page 5 www.RochesterAreaBuilders.com

Continued... The Itasca Project brings together leaders from across the business, philanthropic, and public sectors to raise regional economic competiveness, improve quality of life and expand prosperity for all. More information about their work is available here.

About the Governor’s Task Force on Housing The Governor’s Task Force on Housing will review existing housing strategies that serve Minnesotans well and identify gaps in the system. It also will consider new practices to improve housing stability, and ensure that all families, individuals, and communities have the safe and stable housing needed for success. By July 31, 2018, the Task Force will provide specific policy proposals and actions that can be taken by the executive and legislative branches of state government and the private sector to improve housing stability in the state. “A full range of housing choices that support stability for individuals and families at all income levels, regardless of background, in every Minnesota community, is critical to equitable growth, our economic vitality and long-term success as a state,” said Catholic Charities Director of Social Justice Advocacy Acooa Ellis, who also will co-chair the new Task Force. “I commend the Governor for his thoughtful leadership. The wide range of perspectives sought for this Task Force gives me confidence that our work together will result in a resource that future leaders can enthusiastically embrace.” www.RochesterAreaBuilders.com

officials, state legislators, business leaders, and housing advocates from across Minnesota.

Core Members of the Task Force:

· Jeanne Crain, Chief Executive Officer, Bremer Financial Corporation (Co-Chair) · Acooa Ellis, Director of Social Justice Advocacy, Catholic Charities (Co-Chair) · Jane Barrett, Executive Director, Red Lake Reservation Housing Authority · Hukun Abdullahi, Executive Director, Afro American Development Association · Emily Larson, Mayor, City of Duluth · Sheila Kiscaden, Commissioner, Olmsted County Board · Mar Valdecantos, Vice Chair, Northfield Human Rights Commission · Rick Goodeman, Chief Executive Officer, Southwest Minnesota Housing Partnership · Diane Sprague, Director, Lifetime Home Project · Skip Duschesneau, President, D.W. Jones, Inc. · Richelle Taylor, Realtor, RE/MAX Metro Realty · Devean George, President, George Group North · Lael Robertson, Staff Attorney, Housing Justice Center · Mike Paradise, President, Bigelow Homes · MayKao Hang, President, Wilder Foundation

Ex-Officio Members of the Task Force:

· Brad Hewitt, Chief Executive Officer, Thrivent Financial, representing the Itasca Project

· Mary Rippe, President, Minnesota Multi Housing Association, representing the Minnesota Multi Housing Association · Deidre Schmidt, President, CommonBond Communities, representing the Minnesota Housing Partnership · Terri Thao, Program Director, Nexus Community Partners, representing the Minnesota Housing Finance Agency · Paul Williams, President, Project for Pride in Living, representing the Metropolitan Consortium of Community Developers · Neal Loidolt, President, Minnesota Assistance Council for Veterans, representing the Minnesota Assistance Council for Veterans · Harry Melander, President, Minnesota State Building and Construction Trades Council, representing the Minnesota State Building and Construction Trades Council · Matt Kramer, Vice President for University and Government Relations, University of Minnesota, representing the University of Minnesota · Mike Maguire, Mayor, City of Eagan, representing the Urban Land Institute Regional Council of Mayors · One Member of the Majority Party in the Minnesota Senate · One Member of the Minority Party in the Minnesota Senate · One Member of the Majority Party in the Minnesota House of Representatives · One Member of the Minority Party in the Minnesota House of Representatives To read Governor Dayton’s executive order creating the Governor’s Task Force on Affordable Housing, click here. Permalink: http://mn.gov/governor/ blog/index.jsp?id=1055-321636 FOUNDATIONS January - February 2018

ROCHESTER AREA BUILDERS, INC. 2018 CALENDAR OF EVENTS JANUARY 5 9-11 25 30

Continuing Education Classes @ Canadian Honker Events at Apache NAHB International Builders Show – Orlando, FL Continuing Education Classes @ Canadian Honker Events at Apache General Membership Meeting @ DoubleTree by Hilton

FEBRUARY 9-11 22 27

Rochester Area Builders Home Show BAM Building Industry Day at the Capitol Networking Night @ Brock White Company

MARCH APRIL

MAY

JUNE

JULY

AUGUST

Networking Night @ Home Depot

19 14-15 & 21-22 24

Studs, Struts & Stilettos: A Construction Fashion Expose @ Mayo Civic Center Spring Showcase of Homes Networking Night @ Carpet One

22 28

Networking Night @ Somerby Golf Community Office Closed – Memorial Day

7 26

RAB Golf Outing Networking Night @ Premier Bank

4 24-28 31

Office Closed for Independence Day NAHB Mid-Year Board Meeting – Portland, OR Member Appreciation Night @ Mayowood Stone Barn

Networking Night @ MN 97.5 & Charlie’s Eatery & Pub

SEPTEMBER 3 13 22-23 22-23, 29-30 25

Office Closed – Labor Day Sporting Clay Shoot Remodelers Tour Fall Showcase of Homes General Membership Meeting @ Canadian Honker Events at Apache

OCTOBER 30

Networking Night @ Cambria

NOVEMBER TBD 15 22-23

Past Presidents Dinner Celebration of Leaders Dinner Office Closed – Thanksgiving Holiday

DECEMBER 7 24-25

Christmas Party @ DoubleTree by Hilton Office Closed – Christmas Holiday

FUTURE DATES International Builders Show Builders Home Show

February 19-21, 2019 – Las Vegas, NV February 8-10, 2019 – Mayo Civic Center

FOUNDATIONS January - February 2018

www.RochesterAreaBuilders.com

Mission: Empower Rochesterâ&#x20AC;&#x2122;s young professionals to advance their professional and personal life by creating a welcoming atmosphere to cultivate long-term connections. Vision: An active, connected, and engaged group of young professionals building communities in southeastern Minnesota.

Upcoming Events 1/12/18 - Building Relationships @ The DoubleTree Hotel 2/9-11/18 - Community Engagement @ RAB Home Show 3/27/18 - Social @ Broadway Pizza 4/13/18 - Building Relationships @ Cambria 5/8/18 - Professional Development @ Kahler Apache

Executive Committee Members Alissa Moe Brandon Ploenzke Briana McDonald Danielle Sommerfelt Kate Van Hout Ryan Phipps Samantha Rossi Tyler Lenzner Tyler Niemeyer Vanessa Hines RAB Staff Rebekah Nielsen John Eischen Get Social with Us @RABFORTYBELOW

6/7/18 - Community Engagement @ RAB Golf Outing 6/20/18 - Community Engagement @ Rochesterfest 7/13/18 - Social @ Rochester Honkers Game 8/7/18 - Professional Development @ TBD 9/13/18 - Community Engagement @ RAB Sporting Clay Shoot 10/12/18 - Building Relationships @ TBD 11/13/18 - Professional Development @ TBD 12/18 - Community Engagement The Rochester Area Builders is a professional organization of commercial and residential builders, remodelers, developers, and associated businesses dedicated to advancing the building industry in Southeast Minnesota. RAB is the trusted voice of the industry providing leadership, education, networking, and information resources to our members, community, and government officials.

www.RochesterAreaBuilders.com

FOUNDATIONS January - February 2018

w e N l Al ow! h S At the newly renovated

Mayo Civic Center

Free Seminars on Saturday & Sunday. Over 300 Booths with hundreds of ideas for home construction and remodeling.

Admission - $6 for adults $1 for Children 7-16, 6 & under are Free

Check out the largest ballroom in Minnesota

Friday, February 9 Saturday, February 10 Sunday, February 11

Explore our Garden Center for new ways to design your outdoor living area. It is also a great place to take a break during the show.

Check out our Construction Career Center and find out about education in the construction field. Seminars offered Saturday & Sunday 12-3pm.

3:00 PM - 8:00 PM 9:00 AM - 6:00 PM 11:00 AM - 4:00 PM

Visit our Resource Way to see how you can build and/or remodel your home to be more environmentally friendly and efficient.

Ph: 507-282-7698 RochesterAreaBuilders.com

FOUNDATIONS January - February 2018

www.RochesterAreaBuilders.com

2018 Rochester Stormwater Speaker Series

t’s the time of year when we think about new beginnings and resolutions. Will one of your resolutions be to learn something new in 2018? If yes, then join us for the 2018 Stormwater Speaker Series! Keep reading to find out the exciting topics and presenters we have lined up.

April 25: Trash Talk: Finding the Proper Place for Your Waste in Olmsted County Anthony Wittmer, Olmsted County Environmental Resources May 23: Wetland Wildlife Primer Ray Norrgard, Wetland Management Program Leader, Section of Wildlife, MNDNR June 27: Citizen Engagement and Watershed Protection Dr. Josh Lallaman, Assistant Professor, Biology Department Saint Mary’s University

2018 Rochester Stormwater Speaker Series Calendar January 24: Is Geology Important? Rocks, Water and the Landscape of southeast Minnesota Jeff Green, Groundwater Hydrologist for MN-DNR February 28: The Water’s Many Voices: River Stories Told through Art and Science. Anna Baker, Hydrologist & Annie Hejny, Artist March 28: Drinking Water in Rochester, Minnesota Todd Osweiler, Rochester Public Utilities

www.RochesterAreaBuilders.com

July 25: How does water inspire you? Water Story Collections Stephanie Hatzenbihler, Environmental Education Specialist, City of Rochester - Public Works August 22: How to Enjoy and Maintain Your Native Plants Joel Dunnette, Minnesota Master Naturalist

The Stormwater Management presents it’s Speaker Series. It is a monthly program featuring topics related to stormwater management in the City of Rochester. This program is FREE of charge and no registrations are required. All presentations are held in Rochester at Saint Mary’s University of Minnesota - Cascade Meadow (2900 - 19th Street NW). PLEASE NOTE: The program evenings will now be on the 4TH WEDNESDAY of the month from 7pm – 8:30pm.

September 26: Stormwater Update Troy Erickson, Water Resources Manager, City of Rochester – Public Works October 24: Rain Garden 101 Stephanie Hatzenbihler, Environmental Education Specialist, City of Rochester - Public Works

FOUNDATIONS January - February 2018

Economic Forecast 2018: Like 2017 But Slightly Better Elliot Eisenberg, Ph.D

he combination of solid, widespread global growth; strong labor markets; low inflation; improving commodity prices; a slightly weaker dollar; and continued easy monetary policy from most central banks sets the stage for a good year. Moreover, the recently passed front-loaded tax cuts here in the US will help by adding a pleasant tailwind to the domestic economy. The possibility of increases in infrastructure and defense spending, along with the continued deregulatory efforts of the Trump administration, make the domestic economic landscape heading into 2018 as strong as it has been since the end of the Great Recession. However, there are also economic headwinds. The fear of inflation could spook the Federal Reserve to raise rates more rapidly than expected, which would slow growth and unsettle financial markets. A large confidence-shattering drop in the stock market, for any number of reasons, might hurt the economy. With the now low tax rate on repatriated earnings, American firms might bring back substantial profits from abroad, and in the process, boost the dollar, which will hurt manufacturing activity. Lastly, geopolitical problems always lurk and could easily have negative growth implications. With all this in mind, I expect full-year 2018 GDP to come in at 2.6%, slightly higher than the 2.3% growth experienced last year and the 2.1% average rate of growth since the end of the Great

FOUNDATIONS January - February 2018

Recession. Headline inflation looks to pick up from roughly 2% to 2.3% in 2018, while core inflation (which excludes food and energy) will edge up only slightly. Because of the slow rise in core inflation, the Federal Reserve will probably have the luxury of time to raise the federal funds rate from where it is now, at 1.375%, to 2.125% by yearâ&#x20AC;&#x2122;s end, with a quarter-point rate increase roughly every three or four months with the first one in March. Turning our attention to the labor market, I expect net new monthly job growth to average 150,000/ month, which, while down from 167,000/month in 2017, is excellent given that we are late in the business cycle and few potential workers remain on the sidelines. The unemployment rate will fall from 4.1% today to 3.6% or even 3.5% by year end, a rate not seen since the late 1960s! As the labor market tightens, nominal wage growth should increase in 2018, with average annual wage increases rising from 2.4% to 2.75% and as much as 3% by the end of the year: a healthy rise. Because of faster GDP growth and the falling unemployment rate, 10-year Treasuries will end 2018 at 2.75%, and the rate on 30-year mortgages will be at or near 4.40%. However, continued easing of credit conditions and rising consumer spending due to continued strong employment growth and better wage growth will keep the economy and housing market on track.

Despite passage of the new tax bill, which is likely to modestly slow home sales and house price appreciation in some high-cost areas because of the reduced benefits of homeownership, housing starts should increase by about 7%, to 1.29 million. Single-family starts will likely total 930,000, up from 850,000, while multifamily starts should flatline at about 360,000. New and existing home sales should collectively rise by about 3% and end the year at 6.35 million, with mortgage purchase volume advancing by $100 billion, and refinance activity falling by about $200 billion due to the rise in mortgage rates. Housing inventories will, regrettably, remain unchanged, and combined with limited new home building, home prices will rise by 5%. Motor vehicle sales will slip to 16.5 million from 17.1 million and the chances of a recession in 2018 is low given the very solid global economic conditions that currently prevail. I peg the chances of a recession in 2018 at just 15%. Elliot Eisenberg, Ph.D. is President of GraphsandLaughs, LLC and can be reached at Elliot@graphsandlaughs. net. His daily 70-word economics and policy blog can be seen at www. econ70.com.

www.RochesterAreaBuilders.com

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under RECEIPTS, RECORDS and TAX FORMS?

MedCity Consulting has the knowledge develop an INDIVIDUALIZED SYSTEM to help LEVERAGE YOUR BUSINESS and remove the

burden and stress of record keeping.

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www.MedCityConsulting.com www.RochesterAreaBuilders.com

FOUNDATIONS January - February 2018

PRESS RELEASE Hlebichuk and Bye promoted to Vice President at Widseth Smith Nolting WSN has added two new shareholders to the company’s ownership structure, architect Dana Hlebichuk, AIA, and civil engineer Bryan Bye, PE. Both have been promoted to Vice President. Hlebichuk is head of architecture in the firm’s Rochester office. He has 19 years of experience in the fields of architecture and construction and joined WSN in 2014. He is responsible for project management, architectural design, specifications, cost estimates, client and business development, and continued growth of the firm’s architectural practice. Hlebichuk serves on the board for the Minnesota Veterans and Emergency Services Museum, is a volunteer artisan for the Boys and Girls Club of Rochester’s Chair Affair, and is a volunteer coach for the Rochester Youth Soccer Association.

Bye, a civil engineer in the firm’s Alexandria office, joined WSN in 2007. He is a professional engineer in Minnesota with more than 10 years of experience. He is responsible for project management, civil engineering design, specifications, construction administration and client and business development. Bye works with a variety of civil engineering projects, including public works, utilities, roadways, stormwater/flood management and site design. Bye is a member of the Minnesota Society of Professional Engineers (MSPE), serves on the Hoffman Economic Development Authority for the City of Hoffman, MN, and volunteers with Ducks Unlimited. Widseth Smith Nolting is a multi-disciplined firm of more than 200 employees providing engineering, architecture, land surveying and environmental services. Its offices are located in Rochester, Alexandria, Bemidji, Brainerd, Crookston, East Grand Forks, and Forest Lake, Minnesota, and Grand Forks, North Dakota. More information is available at WidsethSmithNolting.com.

FOUNDATIONS January - February 2018

www.RochesterAreaBuilders.com

Building Materials Prices and Labor Access Top Challenges for 2018 BY ASHOK CHALUVADI on JANUARY 16, 2018 The monthly NAHB/Wells Fargo Housing Market Index includes a set of â&#x20AC;&#x153;specialâ&#x20AC;? questions on a topic of current interest to the housing industry. In December 2017, the special questions asked builders about the problems they faced in 2017 and expect to face in 2018.

Topping the list of problems builders faced in 2017 and expect to face in 2018 is the Cost/Availability of Labor, a significant issue for 82% of builders in 2017 and one that has significantly grown in importance since 2011. That year, 13% of builders rated labor as a significant problem, followed by 30% in 2012, 53% in 2013, 61% in 2014, 71% in 2015 and 78% in 2016. The second most significant problem in 2017 was Building www.RochesterAreaBuilders.com

material prices-cited by 77% of builders. In 2011, the Building materials prices was rated significant by 33% of builders who responded to the survey. That share increased to 46% in 2012, 68% in 2013, 58% in 2014, 42% in 2015 and 48% in 2016. In fact, this issue showed the largest increase by far between builders noting it was a problem in 2016 and 2017.

Cost/Availability of developed lots was a significant problem for 58% of builders in 2017 and 62% expect to be a problem in 2018. Both the availability of labor and lots highlight the expected constraints of a recovering housing market. Impact/Hook-up/Inspection or other Fees was a significant problem for 57% of builders in 2017 and is expected to be an

issue by 60% in 2018. Attempts to limit mortgage interest deduction/other support for housing was a significant problem for 31% of builders in 2017, compared to 21% in 2016. The Local/state environmental regulations and policies continue to be a problem for 40% of reporting builders in 2017 and 45% expect it to be a problem in 2018. Difficulty obtaining zoning/permit approval was a significant problem for 40% of builders in 2017. In 2011, it was a problem for 21% of builders, 22% in 2012, 33% in 2013, 32% in 2014 and 2015 and to 36% in 2016. The two issues builders expect to become more significant problems in 2018 are Attempts to limit mortgage interest deduction/ other support for housing (49% expect it to be a problem in 2018 vs. 31% who said it was a problem in 2017) and High interest rates. Although the share who expect high interest rates to be a problem in 2018 is still relatively low at 18%, this is up strongly from the 4% who said it was a problem last year.

FOUNDATIONS January - February 2018

2018

Newsletter Advertising

The Rochester Area Builders Newsletter is an unbeatable opportunity to advertise to members and individuals associated with RAB. It is a source of valuable association and industry information, and is published and emailed monthly. Foundations is sent to over 900 connected industry professionals. The sizes of ads are listed under Display Ad Dimensions, and prices are located below. Ads may be changed from month to month. Our prices are for full color ads. We will be glad to work with you to design your ad. Please send digital files for all ad copy, logos, and artwork. We use PC format. We accept Illustrator and Photoshop files (CS1). Convert all fonts to outlines. We also accept the following high resolution file types: .tif, .eps and .pdf (with all graphics and fonts embedded) files. If you have any other formats, please contact us.

Newsletter Advertising Rates

Per Issue

12 Issues

New Member 12 Issues

Full color 1/2 Horizontal

________

$70

________

$650

________

$487.50

Full color Full Page

________

$90

________

$900

________

$675.00

Full Color Full Page Press Release

Newsletter Display Ad Dimensions 1/2 Horizontal 7-1/2 x 4-7/8 Full 7-1/2 x 10

$25

Payment options: ________

Check enclosed (Please make out check to â&#x20AC;&#x153;Rochester Area Buildersâ&#x20AC;?)

________

Please invoice company

________

Credit Card (circle: Visa or MC)

Number: _____________________________________________________________ 3 digit code: ___________

Exp Date: ______________

Business Name __________________________________________________________ Contact ________________________________________________________________ Phone number __________________________________________________________ Fax ____________________________________________________________________ Email __________________________________________________________________

I have read, understand and agree to the terms of this contract.

Signature: Contact Rochester Area Builders, Inc. Phone: (507) 282-7698 Attn: Shelly Erpelding 108 Elton Hills Ln NW Rochester, MN 55901

FOUNDATIONS January - February 2018

Fax: (507) 282-6351 E-Mail: ShellyE@RochesterAreaBuilders.com

www.RochesterAreaBuilders.com

FOUNDATIONS January - February 2018

www.RochesterAreaBuilders.com

FOUNDATIONS January - February 2018

2015 CHEVROLET SILVERADO 1500

Example offer for NAHB members who are business owners:

Up to

1,000 +

Private Offer1

3,750 +

National Fleet Purchase Program (FVX)2

Up to

400 =

Upﬁt Cash Allowance3,4

5,150

In potential value

Beneﬁt from our private offer for NAHB members.

2015 GMC SAVANA CARGO VAN

As the exclusive automotive manufacturer of the National Association of Home Builders (NAHB), we’re pleased to extend association members a private offer1 of up to $1,000 toward the purchase or lease of most new GM vehicles. Just visit your local dealer, choose an eligible GM vehicle, and present your NAHB proof of membership. You can add on incentives from the National Fleet Purchase Program2 and Business Choice3 to get the best value on vehicles that run your business. For private-offer details, visit nahb.org/gm.

2-Year/24,000-Mile Scheduled Maintenance

Combine these great savings with our 2-Year/24,000-Mile Brand Maintenance Program5 that covers scheduled oil changes with ﬁlter, tire rotations, and 27-point inspections, according to your new vehicle’s recommended maintenance schedule. 2015 BUICK LACROSSE

Private-offer amount varies by model. Up to $500 offer for retail deliveries and up to $1,000 offer for fleet deliveries. Valid toward the purchase or lease of eligible 2014 and 2015 model-year vehicles. Customer must take delivery by 1/4/16. Not compatible with other private offers. Not valid on prior purchases. Compatible with many current incentives. Incentives are subject to change without notice. Excludes Buick Regal (2014); Chevrolet Corvette (2014), Sonic, Spark, SS, Volt; all Cadillac models. FAN required. See dealer for complete details. 2Offer eligible for non-CAP customers only through 12/31/15. See dealer for details. 3 To qualify, vehicle must be used in the day-to-day operations of your business and not solely for personal/non-business-related transportation purposes. Must provide proof of business. For complete program requirements, including information regarding offers, vehicles, equipment, options, warranties, and ordering, consult your dealer or visit gmbusinesschoice.com. Take delivery by 9/30/15. 4Not valid with all offers. See dealer for details. Take delivery by 9/30/15. Amounts include parts and labor. 5On select models starting with 2014. Eligible vehicles include purchased or leased new 2014 Chevrolet, Buick, or GMC cars, trucks, or crossovers in the U.S. Covers scheduled oil changes with filter, tire rotations, and 27-point inspections, according to your new vehicle’s recommended maintenance schedule, for a maximum of four service events within 2 years or 24,000 miles, whichever comes first. Does not include air filters. Extra charge may apply for dual-rear-wheel tire rotations. See participating dealer for other restrictions and complete details. ©2015 General Motors. All rights reserved. 1

FOUNDATIONS January - February 2018

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FOUNDATIONS January - February 2018

Rochester Building Permits

New Residential Single Family Dwelling

2017

VALUATION

2016

VALUATION 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

6,380,379

7,715,749

January

February

Townhome Dwelling

2,442,524

1,895,221

Two-Family Houses

March

Manufactured Home

April

15,622,122

May

June

July

August

September

October

November

December

302

281

200

191

299

326

369

418

429

Multi-Family Bldgs (Units)

111

Existing Residential Deck Addition

15,235

Room Addition

96,000

32,783

Porch Additions

34,400

30,000

Other Additions

Basement Finish

362,773

315,453

Alterations

188,479

357,704

169,350

87,750

Multi-Family Addition Multi-Family Alterations

New Commercial Assembly (Church)

Assembly (General)

475,000

Assembly (Restaurant/Bar)

Business

100,000

Education

Factory/Industrial

Institution

2,025,158

Mercantile

Miscellaneous

Residential (Apartment)

Residential (Care/Assisted Living)

Residential (Care/Hotel/Motel)

Storage (General)

Storage (Parking Garage)

Storage (Warehouse)

Utility (General)

Utility (Private Garage)

Addition

12,503,688

4,753,930

3,365,473

Structural Shell

313,250

200,000

“White Box”

Interior Demolition Only

7,500

10,000

Other Phased Permits

1,750,000

Alterations

TOTAL

*total may differ as permits may have been voided. *total may differ as permits may have been voided.

Existing Commercial

Other Construction

DECEMBER 2017

Business Signs

35,968

184,552

Advertising Signs

Footings & Foundations

N/A

6,000

Demolition

FOUNDATIONS January - February 2018

Year To Date Statistics

NO.

2017 VALUATION NO.

2016 VALUATION

Building Permits Issued to Date

2665

524,691,279

2429

442,846,498

Single Family Dwelling

335

98,091,382

335

84,481,524

Multi-Family Buildings Total Units: 1042

84,791,339

129,561,374

Trade Permits Issued to Date

9787

111,970,714

8763

105,166,948

Electrical

3084

48,857,056

2743

46,488,548

384

166,335

355

82,850 28,904,478

Electrical (Temp. Service) Mechanical (HVAC)

2460

27,568,374

2282

Mechanical (Gas Piping)

749

1,188,998

680

974,406

Mechanical (Fireplace)

424

1,242,584

378

1,088,345

Mechanical (Hydronic)

174

11,406,112

172

9,213,581

Plumbing

2512

21,541,255

2153

18,414,740

Total Permits YTD

12,452

636,661,993

11,192,

548,013,446

Information and downloads available at Rochester Building Safety Department’s Website: http://

www.rochestermn.gov/departments/building-safety/reports/building-permits

Byron

Building Permits

JANUARY 2017 New Residential

NUMBER

VALUATION

Single Family Attached

Single Family Detached

730,000

Basement Finish

3,000

Deck Addition

3,000

Existing Residential

www.RochesterAreaBuilders.com

Olmsted County Permits YTD

New Residential

2017

VALUATION

2016

VALUATION

Single Family-Detached

11,139,407

13,508,040

Single Family-Attached

324,190

510,021

700,939

512,008

Garage

Residential Deck

178,885

129,575

Addition

874,874

389,579

167

2,045,050

109

1,319,206

115,218

250,696

Alterations Garage Addition

December 2017

New Commercial/Industrial

176

1,454,696

175

1,358,293

1,025,386

120

1,131,979

Total Permits

665

23,319,100

600

22,785,353

December 2016 & 2017 Permits

Church/Religious

1,591,400

Industrial/Warehouse

2,823,143

1,062,357

Store/Restaurant

Nonresidential Building

Service/Repair Station

Addition

Alterations Re-roofing

13 12

12 10

1,236,683

332,097

132,431

204,564

384,780

60,580

13,100

36,000

Pool, Retaining Wall, etc.

465,076

743,675

Manufactured Homes

26,692

Commercial/Industrial

2017

VALUATION

113

2016

Plumbing

2017

VALUATION

Mechanical

Recreational

2017

Miscellaneous Permits

7 5

4 2 0 Stewartville $719,349

$871,632

Oronoco $719,349

$50,100

Marion $352,201

$76,697

Other Structures

Activity Overview Key metrics by report month and for year-to-date (YTD) starting from the first of the year.

Key Metrics

Historical Sparkbars

New Listings 12-2014

12-2015

12-2016

12-2017

12-2014

12-2015

12-2016

12-2017

12-2014

12-2015

12-2016

12-2017

12-2014

12-2015

12-2016

12-2017

12-2014

12-2015

12-2016

12-2017

12-2014

12-2015

12-2016

12-2017

12-2014

12-2015

12-2016

12-2017

12-2014

12-2015

12-2016

12-2017

12-2014

12-2015

12-2016

12-2017

12-2014

12-2015

12-2016

12-2017

Pending Sales

Closed Sales

Days on Market

Median Sales Price

Avg. Sales Price

Pct. of Orig. Price Received

Affordability Index

Homes for Sale

Months Supply

12-2016

12-2017

Percent Change

YTD 2016 YTD 2017

268

211

- 21.3%

7,008

6,836

- 2.5%

328

300

- 8.5%

6,260

6,063

- 3.1%

479

443

- 7.5%

6,253

6,118

- 2.2%

- 16.3%

- 14.9%

$160,950

$174,000

+ 8.1%

$165,000

$176,500

+ 7.0%

$188,260

$204,240

+ 8.5%

$188,844

$204,866

+ 8.5%

94.5%

95.4%

+ 1.0%

96.0%

96.8%

+ 0.8%

235

225

- 4.3%

229

222

- 3.1%

1,197

1,021

- 14.7%

2.3

2.0

- 13.0%

Percent Change

Current as of January 4, 2018. All data from the Southeast Minnesota Association of REALTORS® Multiple Listing Service. Provided by the Minnesota Association of REALTORS®. Report © 2018 ShowingTime. | 2

www.RochesterAreaBuilders.com

FOUNDATIONS January - February 2018

Membership Information

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

NONE

Membership Renewals as of 12/31/17 One Year

All Sons' Exteriors, Inc. Coulee Bank Dickison Builders, LLC Duke Aerial, Inc. Mr. Sandless Floor Refinishing Wells Fargo Home Mortgage East Zen Custom Homes

2016 2016 2016 2016 2016 2016 2016

Claremont EDA

2015

ERH Developing, Inc. HomePro Home Inspections, Inc. Wells Concrete

2015 2015 2014

First Alliance Credit Union Tom Kalmes Construction, Inc.

2010 2008

Two to Four Years

Five to Nine Years Ten to 19 Years

Crescent Electric Supply Company Derby Construction, LLC Franklin Energy Markham Homes, LLC Premier Builders of Rochester, Inc. W.L. Hall Company Hutch's Custom Cabinets Kruger Electric, Inc. Rochester Area Chamber of Commerce Bricewood, LLC Powers Ventures Space Concepts, Inc. Stantec IntegraSpec Central/Jeff Mueller Construction Meier Companies, Inc. Associated Bank Brauer Roofing, Inc. Michael's Custom Cabinets, Inc.

2007 2007 2007 2007 2007 2007 2006 2006 2005 2004 2004 2004 2004 2002 2002 2000 1999 1999

20 to 24 Years TSP Architects & Engineers Waste Management

1997 1997

25 Years & More DreamMaker Bath & Kitchen Greg Speedling Contracting, Inc. Summit Custom Homes, LLC Region Millworks, Inc. Culligan of Rochester & Kasson Rochester Area Econ. Development, Inc. (RAEDI) Tile Superstore & More AB Systems, Inc. Wendland Utz Minnesota Energy Resources Corporation Briese Iron Works, Inc. Rochester Ready Mix Concrete Co Home Federal Savings Bank Post-Bulletin Company, LLC U.S. Bank Wells Fargo Bank Minnesota NA Kruse Lumber

1992 1992 1991 1989 1987 1987 1985 1984 1968 1960 1959 1959 1955 1955 1955 1955 1954

FOUNDATIONS January - February 2018

MEMBERSHIP TOTAL: 484 RETENTION RATE: 93.2% As of 12-31-2017

WE WELCOME THE FOLLOWING NEW MEMBERS IN JANUARY

GRAND MEADOW EDA 113 Grand Avenue East Grand Meadow, MN 55936 Phone: 773-450-2771 Contact: Marty Walsh Contributory Member Economic Development Agency KARIEL, INC. 5173 Douglas Drive North Crystal, MN 55429 Phone: 612-605-9119 Contact: Kari Michael Associate Member Staging & Decor KIMT â&#x20AC;&#x201C; CBS 3 1751 Hwy 52 N Rochester, MN 55901 Phone: 507-535-8800 Contact: Kris Lake Associate Member Television / Advertising Sponsored by: Todd Severson, TLS Companies

STONYBROOK BUILDERS OF ROCHESTER, INC. 1201 Meadowlark Court SW Rochester, MN 55902 Phone: 507-289-6789 Contact: Jerry Nelson Builder Member Residential Builder/Developer Sponsored by: Bill Tointon, WSB & Associates, Inc. TRI-STATE BUSINESS MACHINES, INC. 4300 Highway 52 North Rochester, MN 55901 Phone: 507-285-1513 Contact: Tom Novak Associate Member Business Machines

OLMSTED MEDICAL CENTER 210 9th Street SE Rochester, MN 55904 Phone: 507-292-7144 Contact: Wes Duellman Associate Member Occupational Health Services

www.RochesterAreaBuilders.com

President

Brian Sheehan, Weis Builders, Inc.

Jerry Jensen, Valor Mechanical, Inc.

Leslie McGillivray-Rivas, WSB & Associates, Inc.

Frank Streit, Premier Bank

Karen Blissenbach, Design Studio B

Vice President Secretary

Treasurer

Past President

BUILD YOUR HOME IN AUSTIN

TAX FREE

Directors

Mike Allen, Mike Allen Homes, LLC Mickey Elias, Elias Construction, LLC Spenser Holmen, TLS Companies Don Gustason, Kitchen Design Studio Tom Leimer, Knutson Construction Kevin Sternberg, Countryside Builders, LLC Alissa Moe, Cambria Jesse Buhl, MedCity Consulting Joe Langel, Home Federal

Builders Exchange Council Representatives

Katie Hermann, Kraus-Anderson Construction, Chair Jeremy Wohlfiel, Vice Chair Jason Snow, Brock White Company,Past Chair

Commercial Builders Council

John Eckerman, Boldt Construction Chair

Pete Erickson, Olmsted National Bank, Chair

Bob Robertson, Radcliffe Homes & Remodeling, Chair

Joe Weis, Weis Builders, Inc.

David Kane, Widseth Smith Nolting, Rep. Levi Kaiser, Alvin E. Benike, Inc. Todd L Severson, TLS Companies, LLC Steve Buss, Cornerstone Builders & Real Estate, Inc. Joe Weis,Weis Builders, Inc.

Development Council Chair Remodelers Council Chair National Life Directors National Directors

State Directors

Jim Gander, Superior Mechanical John McGuine, JM Consulting, Jean DeWitz, DeWitz Home Builders, Inc. David Pederson, Dunlap & Seeger, Rep. Dan Severson, Dan Severson Builders, Inc., Kathy Einck, Maplewood Homes.LLC

Executive Director

John Eischen JEischen@RochesterAreaBuilders.com

Staff

Five-Year Property Tax Abatement for New Construction Single-Family and Multi-Family Homes

Audra Bolduan audra@bexroch.com Marketing, Builders Exchange Trustees, Showcase Committee

Darcy Goplen DGoplen@RochesterAreaBuilders.com

Rebekah Nielsen RNielsen@RochesterAreaBuilders.com Ambassadors, Awards, Community Relations, Education, Membership, Fashion Show, Program, Spike Club, Remodelers Council: Executive & Remodelers Tour

Shelly Erpleding ShellyE@RochesterAreaBuilders.com Golf Outing, Sporting Clays, Home Show, Directory, Newsletter, RAB Update

August 1, 2016 â&#x20AC;&#x201C; December 31, 2019

Government & Public Affairs Consultant Rick Dold Rick@GodwinDold.com Government Affairs

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FOUNDATIONS January - February 2018

GOES MOBILE

Want to look up members of RAB quickly? Are you away from your desk? Try out the mobile directory of Rochester Area Builders. This is a mobile-optimized website that is easy to search. You can search alphabetically or by category. We also have mobile-optimized pages for the Home Show, Spring Showcase of Homes, Fall Showcase of Homes, and the Remodelers Tour. You can save these pages as shortcuts on your home screen. For iOS: From the page you want to save, tap the square with an arrow. Then choose Add To Home Screen. From there, simply name it what you want and save.

For Android: From the page you want to save, tap the three dots. From there, simply name it what you want and save.

Then choose Add To Home Screen.

Now itâ&#x20AC;&#x2122;s like you have an RAB app on your phone!

FOUNDATIONS January - February 2018

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FOUNDATIONS January - February 2018

www.RochesterAreaBuilders.com

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

www.RochesterAreaBuilders.com

FOUNDATIONS January - February 2018