Foundations - June - July by Rochester Area Builders, Inc.

99 North Construction + A&A Electric & Underground, Inc. + AB Systems, Inc. + Abacus Engineering + Abbco Company + ABC Supply Co., Inc. - North Rochester + ABC Supply Co., Inc. - South 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. + Allegra Marketing + Allen Outdoor Solutions, LLC + Allied Building Products, a Division of Beacon Roofing Supply + All-Star Basements + Altra Federal Credit Union + American Engineering Testing, Inc. + American Waterworks + Ames Construction, Inc. + And More By Kori + 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. + Barton Brothers Construction, LLC + Basement Water Control + Batzel Builders, Inc. + BDS Contract Door & Hardware Co. + Beckley's Office Products + Bell Bank Mortgage + 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 + Building Restoration Corporation + Burdick Builders, Inc. + By Design Builders, LLC dba Wausau Homes + Byrne Electric, Inc. + Cachiaras Building & Remodeling + Cambria + CAPS Kitchen & Bath + 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. + Chosen Valley Testing, Inc. + Chris Fritsch Custom Homes, LLC + Christian Brothers Cabinets + CHS, Inc. + 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. + Country Financial + 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, inc. + Culligan of Rochester & Kasson + Curry's Custom Cut Gutter, LLC + Curtin Drywall, Inc. + Custom Alarm / Custom Communications Inc + Custom Homes by Bradley, Inc. + Custom Retaining Walls & Landscaping, Inc. + D2E, LLC + Dahl Home Builders, Inc. + Dakota Supply Group, Inc. + Dale Gathje Construction, Inc. + Dan Severson Builders, Inc. + Data-Smart Computers, Inc. + David Reiland Building Contractor, LLC + DeGeus Tile & Granite + Derby Construction, LLC + Design Studio B + Destination Building Center + Destination Medical Center EDA + DeWitz Home Builders, Inc. + 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 + 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 + Family Tradition Flooring + 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 + Ford Metro, Inc. + Foster Construction, Inc. + Foster Klima & Co. + 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 + Harmony Insurance Group + Harris Rochester, Inc. + 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 + Hirshfield's Decorating Center + Home Federal Savings Bank + Home Improvement Professionals, Inc. + Home Systems Installation, LLC + HomePro Home Inspections, Inc. + Horizon Equipment, LLC + Houston County EDA + Hoyer Construction, LLC + Hunt Electric Corporation + Hutch's Custom Cabinets + Hy-Vee + ICC Restoration & Cleaning Services + iHeartMedia + Image Smartz, LLC + Innovative Surfaces, Inc. + Installed Building Solutions II, LLC + IntegraSpec Central/Jeff Mueller Construction + Interiors by J.Curry, LLC + International Brotherhood of Electrical Workers 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. + Joe Hartert Builders, LLC + Johnson Printing + JP's Construction Remodeling & Repair, Inc. + K&M Glass Company + K&S Heating, A/C, Plumbing & Electrical + Kahler Hospitality Group + Kariel, Inc. + KENDELL + 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 - Minnesota 97.5 FM + 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 + Larry Newman Drywall + Larson Siding & Windows + LegalShield + Legends Concrete, Inc. + Leitzen Concrete Products, Inc. + Lembke Construction, Inc. + Lewiston EDA + Leyendecker Homebuilders, LLC + Lodermeier's, Inc. + Luxury Bath Remodeling + LVC Companies, Inc. + M.P. Kaye Builders, 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, Inc. + Midwest Walls, LLC + Mike Allen Homes, LLC + Minnesota Building Contractors + Minnesota Energy Resources Corporation + Minnwest Bank + MLT Group + Molin Concrete Products Company + Moneycap, LLC representing Family Heritage Products + Morris Concrete, Inc. + Mortenson + Morton Buildings, Inc. + Mundfrom Builders, Inc. + Norbord + North Risk Partners, C.O. Brown Division + Nuss Truck & Equipment + Obermiller Nelson Engineering + OC Exteriors & Construction + Ohly Law Office + Olmsted County Planning Dept, Enviro Safety Div + Olmsted County Public Health + Olmsted Medical Center + On Site Companies + ONB Bank + 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. + Pine Island EDA + Pine Island Lumber + Pompeii Painting, Inc. + Post-Bulletin Company, LLC + PowerLift CONNECTING. BUILDING. ENGAGING. Doors by French Mfg, Inc. + Powers Ventures + 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, Inc. + Radcliffe Homes & Remodeling + Range Custom Homes, LLC + RE/MAX Results + Real Property Appraisals, LLC + Realty Edge Team + Region Millworks, Inc. + Reliable Contractors, Inc. + River City Builders & Millworks, Inc. + Robert Gill Builder, Inc. + Robert Suk Law Office, PLLC + Roberts Hamilton + Rochester Area Appraisals, LLC + Rochester Area Chamber of Commerce + Rochester Area Economic Development, Inc. (RAEDI) + Rochester Area Foundation + Rochester Asphalt & Concrete, Inc. + Rochester Building Safety Department + Rochester Community & Technical College (RCTC) + Rochester Concrete Products, LLC + Rochester Plumbing & Heating/Roto Rooter + Rochester Public Utilities (RPU) + Rochester Public Works + Rochester Ready Mix Concrete Co + Rochester Title & Escrow Company, Inc. + Rochester Towneclub, LLC + Rory's Home Improvement, LLC + RSM US LLP + RSP Architects + Ryan & Grinde, Ltd. + Ryan Companies US, Inc. + Ryan Electric, Inc. + Ryan Windows & Siding, Inc. + Rymark Construction, LLC + S&S Overhead Door, Inc. + S.L. Contracting, Inc. + Sargent's Landscape Nursery, Inc. + Schluter Systems + 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. + 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 + 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 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 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 + Traditional Wood Builders + Tri Star Insulation + Tri-State Business Machines + 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 + W.L. Hall Company + WA Insurance + Warners' Stellian Appliance Co., Inc. + Waste Management + Weis Builders, Inc. + Welker Custom Homes, Inc. + Wells Concrete + Wells Fargo Bank Minnesota NA + 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

RAB

FORTY

BELoW

JUNE-MAY

2 01 8 a publication of

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

Letter from The President June 2018,

If you haven’t heard yet, we are asking our membership, yes, you, for a new slogan. The winner will receive tickets to next year’s Studs, Struts and Stilettos fashion show. Good luck and happy singing! A huge thank you to Kraus Anderson for giving a presentation on the new Vikings Training facility at the CBC Breakfast! It truly looks like a great project from start to finish and offers a unique opportunity to do it for the team that most of us root for on Sunday afternoons! Did anybody catch the US Open this last weekend? Many of the professional golfers were struggling due to course difficulty! Who knew that the PGA could design a course that would challenge even the most elite of athletes? My family was busy tending to the strawberry patch this last week where we were able to make several jars of jam to share with our family and friends, (it’s starting to feel like a yearly tradition). This last weekend we were able to visit the zoo and visit cousins who had a big bounce house and water slide for their birthday! To say the least, it was a fun filled weekend topped off with a very special Father’s Day. Our new software is slowly taking shape. For most of you, you have seen emails about creating company profiles. By creating a company profile, it will help us help you in a more unique atmosphere. You will also be able to create a login for everyone in the company, so they stay more up-to-date with current events. You should be able to search the directory more efficiently by using this new software. Any suggestions, please drop me or John an email and we will be able to assist you with these requests.

FOUNDATIONS June-July 2018

The golf outing was a huge success and I was able to partake in the activities this year. It was great seeing all our members out supporting the mission of Rochester Area Builders while having a little fun!

Index Presidents Letter..................................2 JULY Calendar.......................................3 SCRAPBOOK- Networking Night........ 4 June Networking Night Info............... 5 Fall Showcase & Remodelers Tour ........................ 6 40 Below Honkers Night.................... 7 Member Information Center.............. 8 Tulip Tree............................................. 9 Builders Blog.................................... 10 NAHB - Eye On Housing........................11 Project Build.....................................12 Clements Tax Reform Act.................13 Spring Valley Housing Incentive...... 14 Elliott Eisenberg

...15

The Economy Through 2018: Finally Behaving Well!

Builders Blog.................................... 16 NAHB - Eye On Housing........................ 17

The playhouses were on display at Rochester Fest this week near our booth. You will had a chance to win them if you purchased raffle tickets to support Family Services. These playhouses were built by three of our members, Maplewood Homes, Knutson Construction, Riverland Community College & a pergola built by Heartwood Homes.

ONB...................................................18

Our next Networking Night will be at Premier Bank on 6/26/18. We strongly encourage our membership to bring guests or potential members to this networking night to show them what it means to be part of Rochester Area Builders. There will be a giveaway for Twins tickets at this event, so don’t miss out on this great opportunity.

Build Your Home Tax Free................25

Have a great start to your Summer and Enjoy the Great Weather!

Foundations Ad Opportunity............19 NAHB Auto Deal................................20 Clements Ad..................................... 21 Rochester & Byron Building Permits.....................22 Olmsted Building Permits................23 SEMAR Update.................................23 Membership Update........................ 24 Member Rebate Program................26 RAB Goes Mobile............................. 27 Information from RAB......................28 NAHB Member Discounts................29 RAB Marketing Opportunites...........30 Executive Director/Editor John Eischen Production Shelly Erpelding The Rochester Builders newsletter is the official publication of

Respectfully,

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 President, Rochester Area Builders

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

www.RochesterAreaBuilders.com

FOUNDATIONS June-July 2018

May Networking Night Thank you to Somerby Golf Community for hosting a great Networking Night for our members!

FOUNDATIONS June-July 2018

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FOUNDATIONS June-July 2018

2018

FOUNDATIONS June-July 2018

Registration Information

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FOUNDATIONS June-July 2018

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When it comes to the puzzle that is

MARKETING, we have every piece figured out.

Graphic Design Social Media

e?re? h W ? hat Why

ho? Whhoa? t? WWh ere? W How?

How?

Why? Copywriting

Web Design

MARKETING

Branch away from the norm. www.TulipTree-Studios.com

www.RochesterAreaBuilders.com

FOUNDATIONS June-July 2018

Construction Career Is A Growing Opportunity By: Brian Sheehan - Friday, May 4, 2018

edicine might be the first thing that comes to mind when you think of careers in Rochester, Minnesota, but the cranes that dot the downtown skyline pinpoint another growing opportunity that exists in the Med City. The construction industry is critical to the strength, evolution, and economic vitality of cities like Rochester. Not only is a career in the trades viable, it is both profitable and desirable. For decades, school-aged students have been encouraged to apply to four-year universities and seek bachelor’s degrees as the optimal path to success. Meanwhile, non-traditional but lucrative career opportunities in industries like construction and the skilled trades have been dismissed and, in some cases, even discouraged. Now – as the average age of workers in the trades tops 43 years of age and labor shortages become inevitable – it’s time to raise awareness about the viability of careers in the construction and building industry and seek ways to shift public perceptions about

FOUNDATIONS June-July 2018

building a career by working in the trades. • Did you know that job growth in the building industry is projected at over 21 percent by the year 2022? • Did you know that almost 90% of apprentices are employed immediately upon completion of their programs? Or that their starting wages after graduation are often $50,000 a year or more? • Did you know that the construction industry in Rochester sees over 2,500 new jobs every year? With over 20 construction projects at various stages of development in downtown alone, the time couldn’t be better to consider a future in construction. Encourage your son or daughter to learn more about career opportunities in building and construction by contacting the Rochester Area Builders today. The Builders Blog periodically posts articles on the Rochester Area Builders website featuring issues and concerns of the building industry.

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Regulation: Over 30 Percent of the Cost of a Multifamily Development BY PAUL EMRATH on JUNE 14, 2018

egulation imposed by all levels of government (whether local, state or federal) accounts for 32.1 percent of the cost of an average multifamily development, according to a new study conducted jointly by the National Association of Home Builders (NAHB) and the National Multifamily Housing Council (NMHC). The study is based primarily on a survey of multifamily developers from both organizations. The results show that well over 90 percent of multifamily developers typically incur hard costs of fees paid to local governments, both when applying for zoning approval, and again when local jurisdictions authorize the construction of buildings. But the study also shows that government regulation often imposes costs in other ways as well. Among the regulations covered by the NAHB-NMHC analysis, the cost was highest for changes to building codes over the past 10 years, accounting for 7.0 percent of the cost of developing the property on average. No one would argue against standards for basic soundness and safety of structures, but building codes have been in place for decades, and have expanded well beyond this. There is now a separate code devoted to energy conservation, for example, and NAHB has criticized particular changes to this code for limiting flexibility and driving up costs without improving energy efficiency (sometimes to the benefit of specific product manufacturers). Many local governments require new development to conform to community design standards (for example, streets, sidewalks, parking, height of buildings, landscaping, and architectural

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design). These standards impose added costs if they require more than a multifamily developer would normally provide. These beyond-ordinary development requirements were the second most costly type of regulation, accounting for 5.9 percent of development costs, on average. The chart below shows the average costs for

the various types of regulation covered in the NAHB-NMHC study. In the chart, the “other” category includes Interest on refundable fees charged when site work begins, the value of land that the developer must dedicate to the government or otherwise leave unbuilt, the cost of so-called affordability mandates imposed without any incentives to offset the cost, and a “pure” cost of delay (i.e., how much the delay would cost even if regulation imposed no other type of cost) As mentioned above, on average these costs sum to 32.1 percent of the cost of developing a new multifamily property. One-fourth of the time they reach as high as 42.6 percent. For more detail on each type of regulation, as well as a complete description of the NAHB-NMHC survey and methodology used to estimate the costs, please consult the full NAHB-NMHC study.

FOUNDATIONS June-July 2018

Project Build Minnesota is a state-wide construction workforce enhancement campaign that promotes a positive image of construction as a life-long career choice for young men and women of all races and ethnic backgrounds.

Project Build Minnesota is a movement, a vision and a vehicle to motivate our youth, parents, counselors,

teachers, administrators and policy makers to learn more about the many benefits of pursuing a life-long career in the building industry.

Project Build Minnesota was started in 2016 by a coalition of building industry associations who have developed a Project Build Minnesota represents the entire Minnesota construction and building industry. The movement is designed to foster career choice awareness across all lines of the residential and commercial building industry.

What is the vision? To create a movement to empower young men and women with choices and ensure a steady flow of qualified skilled labor into Minnesotaâ&#x20AC;&#x2122;s construction market.

Average wage in construction jobs in mn is

$61,000

What is the top goal? The goal of Project Build Minnesota is to remind folks that mastering a trade for those that enjoy working with their hands and building things is a smart choice. The industrytheir parents, teachers, and counselors that construction work is a noble, exciting way to build communities and shape peopleâ&#x20AC;&#x2122;s lives. Plus, work in the construction industry

people love the field.

95% >>>

FOUNDATIONS June-July 2018

of those who get into construction as a career stay there.

PROJECTBUILDMN.ORG

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WHAT YOU NEED TO KNOW ABOUT THE 2018 TAX REFORM ACT The tax reform bill signed into law in December 2017 changes tax incentives for 2018. Specifically, tax reform expands “bonus depreciation” to allow small businesses and Fleet customers to deduct 100% of the cost of qualifying property placed in service in 2018, including certain vehicles (generally vans and larger trucks and SUVs). The section 179 deduction is still available, but is subject to a $25,000 per-vehicle limitation for many GM SUVs, crossovers and pickup trucks. Also, passenger automobiles (i.e., sedans, coupes, and SUVs/crossovers/trucks weighing 6000lbs or less) are still subject to per-vehicle limitations on total depreciation (section 179 plus bonus depreciation) deductions ($18,000 for both cars and trucks placed in service in 2018). Given the changes in the tax laws, bonus depreciation now provides the greatest benefit to customers purchasing trucks and vans for business use. Although section 179 and its per-vehicle limit still technically apply, they do not affect customers’ ability to immediately deduct 100% of the cost of certain vehicles. In summary: •

Car deductions have gone from $11,160 to up to $18,000

•

SUVs/Crossovers/Pickups up to 14,000 GVWR went from up to $25,000 with an aggregate limit of $510,000 to immediate expensing of 100% of purchase price

•

Cargo Vans and HD trucks have gone from 100% of purchase price WITH an aggregate limit of $510,000 to 100% of purchase price WITH NO aggregate limit ** CLEMENTS COMMERCIAL VEHICLE HEADQUARTERS RECOMMENDS CONSULTING WITH YOUR CPA OR TAX PREPARER TO DETERMINE HOW THIS TAX INCENTIVE CHANGE WILL IMPACT YOUR BUSINESS. THIS ARTICLE IS FOR INFORMATIONAL PURPOSES ONLY AND NOT INTENDED TO OFFER TAX ADVICE.

Tom Dunford Commercial Sales Specialist 507-951-4080 tdunford@clementsauto.com

www.RochesterAreaBuilders.com

Dale Covington Commercial Sales Specialist 507-298-5211 dcovington@clementsauto.com

FOUNDATIONS June-July 2018

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 INCENTIVE TOTALS $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) 14

FOUNDATIONS June-July 2018

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The Economy Through 2018: Finally Behaving Well! Elliot Eisenberg, Ph.D espite more political D uncertainty than usual emanating from Washington,

the next 12 months are shaping up well. The odds of a recession remain very low – about 10% -- despite now being in the middle of the second longest economic recovery in US history. Global growth is solid, and while inflation is rising, it’s doing so slowly, giving the Fed time to raise rates at a leisurely pace and not upend the fastest economic growth our economy is about to experience since 2005. Giving the economy a strong boost is a combination of net tax cuts totaling more than $1 trillion passed in December and spending increases totaling $400 billion passed in February. Collectively, these stimuli should raise near-term GDP by half a point. As a result, the Fed is likely to raise rates at least two more times this year – each time by one-quarter point – and possibly three times. This will be done to protect the economy from overheating and proactively prevent inflation from rising much higher than 2 percent/year, the Fed’s target inflation rate. GDP growth during the next 12 months should average 2.8 percent, up from 2.3 percent in Q1 2018. Unemployment will continue to decline from the current rate of 3.9 percent to t least 3.7 percent and perhaps as low as 3.6 percent, rates not seen in more than 50 years. Inflation, as measured by the Consumer Price Index, will rise

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from 2.0 percent now to 2.5 percent by year-end 2018. As for 10-year Treasury rates; by year-end expect them to be at or near 3.2 percent, up from the current 3 percent. Regrettably, the worker shortage will worsen. Employer surveys show an ever-increasing number of firms in a growing number of industries facing growing difficulties in the recruitment of skilled workers. With unemployment below 4 percent – and with labor force growth weak – the struggle to find workers will get worse before it gets better. More and more firms will be forced to turn away work due to a lack of skilled labor. With both U.S. population growth and immigration slowing, an advantageous solution is for firms to invest in labor-saving technology to boost output. Fortunately, due to the recent tax reform, tax treatment of purchases of plant and equipment is more favorable today than at any time in recent memory. Because of the ongoing labor shortage, skyrocketing input costs including lumber, aluminum, and rising land costs, single-family housing starts will rise by no more than 5 percent over the next 12 months and multifamily activity should remain where it is. By contrast, remodeling activity looks to grow by a strong 7.5 percent due to a combination of ever-rising home prices boosting home equity, shrinking inventory of existing houses, and limited starts, all of

which are causing homeowners to remodel rather than move. As for existing sales activity, it might grow by as much as 1 or 2 percent, but not more; home prices will rise by 6.5 percent over the next year. Growth during the rest of 2018 looks to be meaningfully better than what we have experienced since the end of the Great Recession. This is due to decent global growth and passage of tax cuts and spending increases here in the US. A wildcard in all this is trade. A dissolution of the North American Free Trade Agreement (NAFTA) and a trade war with China or Europe would weaken growth – albeit not substantially – at least in the short-run. The knock-on effects such as a possible decline in consumer confidence are of more concern. Lastly, while interest rates will rise in the second half of 2018 (as they have in the first half), the increases will be measured, and the chances of a recession are very low. Elliot Eisenberg, Ph.D. is President of GraphsandLaughs, LLC and can be reached at Elliot@graphsandlaughs.net. His daily 70-word economics and policy blog can be seen at www. econ70.com. FOUNDATIONS June-July 2018

Changing the Conversation About Housing Affordability By: Brian Sheehan - Friday, April 6, 2018

ousing is at the center of many conversations these days. But what we often see addressed is the shortage of what is commonly referred to as “affordable housing,” such as section 8 or low-income. The real challenge we face is much greater than meeting the needs of any single segment of the population. What we need to explore is how to make housing affordable for everyone.

professional, a growing family, or a recent retiree. We need to develop housing policies that make it feasible for people at any age, income level, or stage of life to secure housing that is considered “affordable.” Rochester is growing and, with that, comes changing community needs, but these concerns are not unique to Rochester. Governor Dayton recently created a Task Force on Housing to help address the issue statewide, and they are seeking input from people like you. Take a few minutes to visit the website, review the ideas shared thus far, and share your reaction.

Housing is a person’s single most important – and often greatest – expense. When anyone is spending more than 30 percent of their after-tax income on housing, the Department of Housing and Urban Development considers them “cost-burdened” and recognizes that they may struggle to afford the necessities such as Let’s work together to ensure everyone has an clothing, food, transportation, and healthcare. affordable housing option. But when people have a secure, affordable place to call home, they can focus on raising their families, being good students or workers, and giving back to the communities in which they live. We need to offer diverse housing options in locations that meet the needs of everyone – whether they are a single young

FOUNDATIONS June-July 2018

The Builders Blog periodically posts articles on the Rochester Area Builders website featuring issues and concerns of the building industry.

www.RochesterAreaBuilders.com

Fed Raises Target Range, Communicates More Hikes in ’18 but Fewer in ‘20

BY MICHAEL NEAL on JUNE 13, 2018

s was widely expected, the Federal A Open Markets Committee (FOMC), the monetary policy making arm of the Federal Reserve, raised the target federal funds rate to a range of 1.75 percent to 2.00 percent from a range of 1.5 percent to 1.75 percent. Going forward, the median projection of the federal funds rate at the end of this year rose, but the median expectation for the number of rate hikes in 2020 was offsetting, so that, by the end of 2020, the median expectation for the federal funds rate was unchanged. Today’s decision to raise the range of the target federal funds rate largely reflects strengthening in the labor market, both the increase in jobs and the falling unemployment rate. Household spending has picked up and business fixed investment continues to grow strongly. At the same time, the FOMC noted that inflation, both overall and core inflation, have moved close to two percent. Despite the decision to increase the target rate today, the FOMC still believes that the stance of monetary policy remains accommodative. Labor market conditions should continue to strengthen and inflation should return o two percent on a sustainable basis.

members and Federal Reserve Bank presidents under their individual assessments of projected appropriate monetary policy. These projections are released every three months and provide “forward guidance” about the views of the FOMC. The chart above, a histogram illustrating the distribution of expectations for the federal funds rate across Board members and Bank presidents in both March and June 2018, indicates that the number of respondents expecting the federal funds rate to reach a mid-point of 2.125 percent, one more rate hike this year, fell from six to five, while the number expecting the mid-point to reach 2.375 percent, two more rate hikes this year, rose from six to seven. At the median of respondents, the expectation for the federal funds rate rose from 2.125 to 2.375 percent, or from three total this year to four. The reason likely reflects an upward revision to the median rate of economic growth in 2018, from 2.7 to 2.8 percent and, at the median, a decline in expectations for the unemployment rate from 3.8 to 3.6 percent. The relationship between economic growth and the labor market is captured by Okun’s Law. In addition, and consistent with an expectations-augmented Phillips Curve, the decline in the median expectation for the unemployment rate at the end of 2018, coincides with an expectation, at the median, of faster inflation.

In 2019, the median projection for the mid-point of the target federal funds rate rose from 2.875 percent in the March iteration to 3.125 percent in June. If the FOMC follows the median expectation in 2018 and 2019, then the number of rate hikes, presuming they are all 25 basis points, in 2019 remains the same at three.

Although the median expectation for the federal funds rate increased in 2018 and filtered to a higher median rate in 2019, it remains the same in 2020 at a mid-point of 3.375 percent. Assuming all the hikes are 25 basis points, then FOMC projections communicate one more rate hike in 2018, but one less in 2020 so that the total number of rate hikes by the end of 2020, the longer path of the federal funds rate, remains unchanged. However, the figure above indicates that one fewer respondent expects the mid-point to be 3.375 in 2020 and an additional respondent expects it to be higher by the end of that year. While the median expectation for the federal funds rate in 2020 remains unchanged, there appears to be upward pressure on the median expectation for the federal funds rate in 2020.

The FOMC also released its Summary of Economic Projections which capture, anonymized, economic projections of Federal Reserve Board www.RochesterAreaBuilders.com

FOUNDATIONS June-July 2018

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Products Tamarack Materials, + Thatcher Pools & Spas, Inc. + ThiemannCadillac Construction, Inc. + Thimijan LLP Custom Homes,Banker LLC + y of Kasson+ + Citywide Insulation, Inc. + Claremont EDAInc. + Clayton Thomas Blinds of Rochester + Clements Chevrolet + CliftonLarsonAllen, + Coldwell al + Thomas Tool+& Supply + Communications, Thompson's Garage and + Tile Superstore & Systems, More + TLC + TLS ialBank Leasing Services Completely Clean + Consolidated Inc.Door + Construction Partnership,Openers Inc. + Coordinated Business Ltd.Surfaces, + Cordes LLC Construc, LLC + Inc. Tonna Mechani- Web Services, Inc. + Coulee Bank + Counselor Realty of Rochester, Inc. + Countryside cal, Inc. + Top Shop Rochester, Inc. + dba TotalAccessibility Electric of Estate, + Corporate Builders, LLC + of Cravath Homes, LLC, Inc. + Townsquare Media Rochester & + Kasson Tradesmen International, Inc. Gutter, + Traditional Creative Hardwood Floors + Crescent Electric Supply Company + CRW architecture + design group + Culligan of Rochester + Curry's Custom Cut LLC + Star Insulation Tri-State Machines, Inc.+ +Dakota Tri-State Insulated /ers CCI++Tri Custom Hardwoods + Custom Homes by Bradley, Inc. + Custom Retaining Walls & Landscaping, Inc.++ D2E, LLC +Business Dahl Home Builders, Inc. Supply Group, orms + TSP Architects Tulip Tree Building Studios Center + Turri +Crane Service, Inc. + DeCook Builders, LLC +&DeGeus Tile & Granite + Derby Construction, LLC + The Design Connection + DesignEngineers Studio B + +Destination Destination Flooring tals + The EDA Urban LLC + U.S. Bank + Valor + Veit al Center + Studio, DeWitz Home Builders, Inc. + Dickison Builders, LLC + DiNicola & Pestka Appraisals + Distinguished Homes by Mechanical, Mitch Hagen,Inc. LLC+ +Val-U-Blinds DMC Plumbing & + Viking Automatic Company + Viking Electric + Vision & Dolan's Landscape Center, Inc. + DoubleTree by Hilton + DreamMaker Bath & Kitchen + Duke Aerial, Inc.Sprinkler + Dunham Associates, Inc. + DunlapSupply & Seeger PA + Homes Dynamic g, LLC + WA Insurance + Warners' Stellian Appliance Co., Inc. + WasteInc. Management + J. struction, Inc. + ECSI System Integrators + Edel Construction, LLC + Edina Realty Home Services + Todd Eidem Construction, Inc. + Elcor Construction, + Elcor Realty nstruction, LLC +LLC Weis Builders, Inc. + Panel Greg Wellik Construction Wells Concrete + ias Construction, + Elite Concrete Lifting of Minnesota, LLC + Ellingson Companies + Elsmore Plumbing, LLC + Energy Structures + Energy +Products & Design, onBank Minnesota NA + + ERH Developing, Inc. + Exclusive Home Builders & Remodelers + Expert Insulation, Wells Fargo HomeEmployment Mortgage +Professionals Wells Fargo Home Mortgage Business Technologies Inc. + Express + Extreme Panel endland Utz +Inc. Werner Electric West Bank + WestEnterprises Concord EDA + Jim Whiting EZ Fabricating, + F&M Community Bank + Fairway Outdoor Advertising, LLC + Fat Willy's Bar & Grill + Jeff Feece+ Designs + Ferguson + Ferguson Truck & Garden Inc. + WHKS Company + Widseth Smith Sports mes, Inc. +Center, Fillmore County EDA + First Alliance Credit Union + First Choice Homes, LLC + First Security Bank + R.&Fleming Construction, Inc. +Nolting FloCore++Wildwood Ford Metro, Inc. Ltd. + Wintrust Mortgage + Wobig Construction, LLCCustom + Women Communications, + Workforce Development, Inc. + Wright Homes, Inc. ++ WSB & Associates, Inc. + WT Energy + Frattalone Companies, Inc. + Chris Fritsch Homes, LLC + GanderLLC Plumbing & Heating, Inc. + Dale Gathje Construction, Inc. Steve Gentry Construction, pts, LLC + Your Home Improvement Company ++ Zen Custom Homes++GP Zillgitt Civil Design RAB+ Great River Overhead Door + Green Lawncare Irrigation Store + Robert Gill Builder, Inc. + Godwin Dold Goodin Company Development, Inc.+ +Zimprovements Grand Meadow=EDA chester, LLC + Habitat for Humanity - Rochester AreaNewsletter + Haley ComfortisSystems + W.L. Hall Company + Hamiltonto Plumbing + Hammer Homes, Inc. and + Hanson Construction The Rochester Area Builders an unbeatable opportunity advertise to members individuals Hardie Building Products + Harmony EDA + Harmony Insurance Group + Hartman Complete Lawncare, LLC + Hayfield Window & Door Company + HDR Architecture + associated with RAB. It is a source of valuable association and industry information, and is published and emailed ance + Heartwood Homes of Rochester, Inc. + Brandon Henderson's Construction Plus, LLC + Hentges Glass Company + HGA Architects and Engineers + Hicks Electric, monthly. Foundations is sent to over 900America connected professionals. The sizes ads areDecorating listed under gh Definition Homes, LLC + Highmark Builders + Hiller's Flooring + HiMEC industry at Home + Jeff Hinkle Custom Homes, Inc. + of Hirshfield's Center Display + The Home k + Home Improvement Professionals, + Home Installation, LLC + may HomeOnTrack + HomePro Home Inspections, Inc. + Horizon Equipment, LLC + Houston Ad Dimensions, and Inc. prices areSystems located below. Ads be changed from month to month. C + Hunt Electric Corporation + Hutch's Custom Cabinets + Hy-Vee Stores + Int'l Brthrhd of Electrical Wrkrs Local 343 + ICC Restoration & Cleaning Services + iHeartMedia urfaces, Inc. + Installed II, LLC + Insty + glad to workIntegraSpec Construction Interiors by J.Curry, J&M Our pricesBuilding are forSolutions full color ads. WePrints will be with youCentral/Jeff to designMueller your ad. Please +send digital files LLC for+all aguar Communications + JP's Construction Remodeling & Repair, Inc. + K&M Glass Company + K&S Heating, A/C, Plumbing & Electrical + ad copy, logos, and artwork. We use PC format. We accept Illustrator and Photoshop files (CS1). Convert all fonts almes Construction, Inc. + Kariel, Inc. + M.P. Kaye Builders, Inc. + Key Builders, Inc. + Kimley-Horn & Associates, Inc. + KIMT - CBS 3 to LLC outlines. the following file types: .tif,Kline .epsRoofing, and .pdf graphicsServices and fonts Enterprises, + The We also accept Kitchen Design Studio +high resolution Kitchens Plus + Gary Inc. +(with Knutsonall Construction + KNXR d Walls, Inc.embedded) + Kramer Contracting, LLC formats, + Kraus-Anderson files. If you have any other please contact us. Construction Company + Kreofsky Building Supplies + Kruger /KXLT-TV + Kuehn Motor Company, Inc. + Kuntz Electric, Inc. + Kwik Trip, Inc. + Lacina Siding & Windows, Inc. + Laitala of Lanesboro + Larson Siding & Windows + LegalShield + Legends Concrete, Inc. + Leitzen Concrete Products, wiston EDA + Leyendecker Homebuilders, LLC + Lodermeier's, Inc. + Luxury Bath Remodeling + nies, Inc. + Madery Construction, LLC + Maier Tree & Lawn + Majestic Homes, Inc. + R.J. acture r ' s ________ Trust + Maplewood Homes + Markham Homes, LLC + Marvin Full color 1/2 Horizontal $70Bank & ________ $650 Custom________ $487.50 nd Surveying & Engineering + Master Builders, Inc. + McGough Construction + MDH, of Rochester, City Painting$675.00 & Decorating, Inc. + MedCity Full color Full Page ________ $90City Builders ________ $900LLC + Med ________ Inc. + Menards - South + MEP Associates + Merchants Bank + Merit Contracting, Full Color Full Page Press Release $25Johnson, Inc. + Michael's Custom Cabinets, Inc. + Midwest Floor Solutions + Minnesota Building Contractors + Minnesota Energy Resources Corporation + Group + Molin Concrete Products Company + Morris Concrete, Inc. + Mortenson + Inc. + Mr. Sandless Floor Refinishing + Mundfrom Builders, Inc. + Larry Newman North Construction & Paint + Norbord + North Risk Partners, C.O. Brown Division & Equipment + Obermiller Nelson Engineering + OC Exteriors & Construction Law Office + Olmsted County Planning Dept, Enviro Safety Div + Olmsted County Public Health + Olmsted Medical Center + Olmsted National Bank + On Site Companies + Original Mechanics, Inc. + Otis Custom Homes, LLC + Overhead Door Company of Olmsted County + Paape Energy Services + Pace International + Palmer Payment options: Soderberg, Inc. + Paramark Corporation + PC Applications Consultants, Inc. + Pearson Builders, Inc. + Pella ________ Check enclosed (Please make out Windows check to& â&#x20AC;&#x153;Rochester Buildersâ&#x20AC;?) Doors + PenzArea Custom Homes, Inc. + People's Energy Cooperative + Peterson Well ________ Please invoice company Drilling, Inc. + Phantom Screens + Pine Island EDA + Pine Island Lumber + The 1/2 Horizontal 7-1/2 x 4-7/8 ________ Credit Card (circle: Visa or MC) Pinske Edge + Pompeii Painting, Inc. + Full 7-1/2 x 10 Post-Bulletin Company, LLC + PowerLift Doors Number: _____________________________________________________________ b y French Mfg, Inc. + Powers Ventures + Precision 3 digit code: ___________ Exp Date: Signs ______________ + Prehn Building Sales, Inc. + Premier Bank Rochester + Premier Builders of Rochester, Inc. + Presidio + City of Preston + Prime Time Painting of Rochester, LLC + Priority Business Name __________________________________________________________ Construction Services + Pro Image Promotions & Apparel + Quality Overhead Door Company, Inc. + Quality Siding & Contact ________________________________________________________________ Window, Inc. + R&M Development Company + Radcliffe Homes & Remodeling + Range Custom Homes, LLC + RCON Homes, Phone number __________________________________________________________ Inc. + RCTC Carpentry Program + RE/MAX Results + Real Property Appraisals, LLC + Realty Edge Team + Region Fax ____________________________________________________________________ , Inc. + David Reiland Building Contractor, LLC + Reliable Contractors, Inc. + Rochester Area Appraisals, LLC + Rocheshamber of Commerce + Rochester Area Econ. __________________________________________________________________ Development, Inc. (RAEDI) + Rochester Area Foundation + Rochester Asphalt & Email Inc. + Rochester Building Safety Department + Rochester Concrete Products, LLC + Rochester Plumbing & Heating/Roto ochester Public Utilities + Rochester Public Works + Rochester Ready Mix Concrete Co + Rochester Restoration & Remediation + Title & Escrow Company, Inc. + Rory's Home Improvement, LLC + RSM US LLP + RSP Architects + Ryan & Grinde, Ltd. + ic, Inc. + Ryan Windows & Siding, Inc. + RyMark Construction, LLC + S&S Overhead Door, Inc. + Sargent's Landscape Nursery, Inc. + I have read, understand and agree to the terms of this contract. r, Inc. + Schwab, LLC + Schwickert's Tecta America, LLC + Seavey Builders, Inc. + Dan Severson Builders, Inc. + Nick Severson on, LLC + Shanahan Building & Remodeling, LLC + Sherwin Williams Company + Short Elliott Hendrickson Inc. (SEH) + Sign + S.L. Contracting, Inc. + Smart Home Innovations & Engineering, Inc. + Smart-HR + Smith Schafer & Associates, Ltd. + Solar ConnecSomerby Golf Community + Sorenson's Appliance & TV, Inc. + Southeastern MN Multi-County HRA + Space Concepts, Inc. + dling Contracting, Inc. + Spring Grove EDA + Spring Valley Overhead Door, Inc. + City of Spring Valley + St. Charles EDA + s Lawn & Landscape + Stantec + Sterling State Bank + Stevens Heating, Inc. + Stewartville EDA + Stier Construction, Inc. + essions + StoneBridge Builders, LLC + Stonybrook Builders of Rochester, Inc. + Struve's Paint and Decorating + Robert Suk PLLC + Summit Custom Homes, LLC + Summit Fire Protection Company + Sunbelt Rentals + Superior Mechanical + Superior Phone: (507) 282-7698 onditioning + Craig Swanson Builders, Inc. + Swenke Ims Contracting, LLC + Kenny Sylvester Construction, LLC + Products + Tamarack Materials, Inc.Attn: + Thatcher Pools & Spas, Inc. + Thiemann Construction, Inc. + Thimijan Custom Homes, LLC + Fax: (507) 282-6351 Shelly Erpelding al Bank + Thomas Tool & Supply + Thompson's Garage Door and Openers + Tile Superstore & More + TLC Surfaces, LLC + TLS E-Mail: 108 Elton Hills Ln NW , LLC + Tonna Mechanical, Inc. +ShellyE@RochesterAreaBuilders.com Top Shop of Rochester, Inc. + Total Electric of Rochester, MN 55901 Inc. + Townsquare Media Rochester + Tradesmen International, Inc. + Traditional ers + Tri Star Insulation + Tri-State Business Machines, Inc. + Tri-State Insulated orms + TSP Architects & Engineers + Tulip Tree Studios + Turri Crane Service, Inc. + tals + The Urban Studio, LLC + U.S. Bank + Valor Mechanical, Inc. + Val-U-Blinds + Veit + Viking Automatic Sprinkler Company + Viking Electric Supply + Vision Homes & g, LLC + WA Insurance + Warners' Stellian Appliance Co., Inc. + Waste Management + J. nstruction, LLC + Weis Builders, Inc. + Greg Wellik Construction + Wells Concrete + o Bank Minnesota NA + Wells Fargo Home Mortgage + Wells Fargo Home Mortgage www.RochesterAreaBuilders.com FOUNDATIONS June-July 2018 endland Utz + Werner Electric + West Bank + West Concord EDA + Jim Whiting

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We’re in the offering NAHB members up to $1,000 business.

2018 Chevrolet Low Cab Forward 3500HD

2018 Chevrolet Express 2500 Cargo Van

2018 Chevrolet Silverado 2500HD

2018 GMC Sierra 1500

USING THE PRIVATE OFFER FOR NAHB MEMBERS IS EASY: 1. Get your NAHB Proof of Membership by logging into NAHB.org and obtaining your verification form. 2. Visit your local Chevrolet dealer and mention this Private Offer. 3. Select an eligible vehicle(s) to purchase or lease and present your NAHB proof of membership. For even more value, combine this offer with the National Fleet Purchase Program and Business Choice Offers. For full details on the Private Offer, NAHB members should visit nahb.org/gm. Example offer for NAHB members who are business owners purchasing a 2018 Chevrolet Express 2500 Cargo Van. Up to

$1,000 Private Offer1

$3,750

National Fleet Purchase Program (FVX)2

Up to

$1,200

Eligible Accessory Cash Allowance3

Up to

$5,950 In Potential Value

¹Private offer amount varies by model. City Express and Low Cab Forward receive a $250 Offer for both Fleet and Retail deliveries. Fleet deliveries on the Buick Enclave, Chevrolet Traverse, Silverado, Express, Suburban, Tahoe, GMC Acadia, Sierra, Savana, Yukon, XL receive a $1,000 Offer. All other Fleet or Retail deliveries receive a $500 Offer. Valid toward the purchase or lease of eligible new 2017 and 2018 model year vehicles. Offer excludes Chevrolet Bolt, Camaro, SS, Corvette, Sonic, Spark, Trax, Volt, Buick Cascada, LaCrosse, Regal, Verano, and all Cadillac vehicles. Additional GM models may be excluded from time to time at GM’s sole discretion. Customer must take delivery by 1/2/2019. Not compatible with some other offers. Not valid on prior purchases. See dealer for details. 2Offer available to qualified fleet customers through 1/2/2019. Not compatible with some other offers. Take delivery by 1/2/2019. See dealer for details. 3To qualify, vehicle must be used in the day-to-day operations of your business and not solely for personal/non-business-related transportation purposes. For complete program requirements, including information regarding offers, vehicles, equipment, options, warranties, and ordering, consult your dealer or visit www.gmbusinesschoice.com. Requires $500 minimum purchase. Cash Allowance will be equal to the amount spent up to $1,200. Not eligible on Associated Accessories from third-party independent suppliers. Not available with some other offers. Take delivery by 1/2/2019. See dealer for details. ©2018 General Motors, LLC. All rights reserved. The marks appearing in this ad are the trademarks or service marks of GM, its subsidiaries, affiliates, or licensors.

FOUNDATIONS June-July 2018

www.RochesterAreaBuilders.com

FOUNDATIONS June-July 2018

Rochester Building Permits

New Residential Single Family Dwelling

2018

VALUATION

2017

VALUATION 2010

6,560,971

9,736,461

2011 2012

2013

2014

2015 2016

2017

2018

January

February

Townhome Dwelling

1,816,323

958,362

Two-Family Houses

March

Manufactured Home

April

Multi-Family Bldgs (Units)

8,720,754

May

TOTAL

109

129

113

110

160

167

128

June

July

August

September

October

November

December

200

191

299

326

369

418

429

Existing Residential Deck Addition

295,909

280,952

Room Addition

202,000

118,750

Porch Additions

9,400

17,500

Other Additions

8,000

Basement Finish

469,147

520,147

Alterations

330,559

338,018

Multi-Family Addition

Multi-Family Alterations

148,824

55,653

New Commercial Assembly (Church)

Assembly (General)

32,000

1,029,112

Assembly (Restaurant/Bar)

425,000

Business

7,100,000

Education

Factory/Industrial

Institution

Mercantile

3,500,000

1,700,000

Miscellaneous

Residential (Apartment)

Residential (Care/Assisted Living)

Residential (Care/Hotel/Motel)

Storage (General)

272,000

Storage (Parking Garage)

Storage (Warehouse)

Utility (General)

205,000

Utility (Private Garage)

Addition

579,133

32,722,323

6,833,496

Structural Shell

90,000

“White Box”

43,000

Interior Demolition Only

15,000

84,551

Other Phased Permits

150,000

Alterations

Other Construction Business Signs

TOTAL

100

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

Existing Commercial

May 2018

95,590

289,799

Advertising Signs

Footings & Foundations

2,428,958

Demolition

FOUNDATIONS June-July 2018

Year To Date Statistics

NO.

2018 VALUATION NO.

2017 VALUATION

Building Permits Issued to Date

925

218,350,545

1036

185,725,633

Single Family Dwelling

26,824,916

102

27,902,631

Multi-Family Buildings Total Units: 320

41,416,151

14,655,668

Trade Permits Issued to Date

4065

45,557,517

3552

35,080,882

Electrical

1383

20,256,841

1042

14,763,052

124

41,550

167

84,535 9,932,216

Electrical (Temp. Service) Mechanical (HVAC)

1073

13,595,685

821

Mechanical (Gas Piping)

268

534,115

275

277,342

Mechanical (Fireplace)

145

487,721

151

396,232

Mechanical (Hydronic)

2,330,418

3,988,824

Plumbing

996

8,311,187

1031

5,638,681

Total Permits YTD

4990

263,908,062

4588

220,806,515

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

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

Byron

Building Permits

MAY 2018 New Residential

NUMBER

VALUATION

Single Family Attached

1,215,800

Single Family Detached

1,893,000

Existing Residential Basement Finish

54,000

Deck Addition

44,520

www.RochesterAreaBuilders.com

Olmsted County Permits YTD

New Residential

2018

VALUATION

2017

MAY 2018

VALUATION

Single Family-Detached

4,440,668

1,169,604

Single Family-Attached

529,548

Garage

236,529

137,233

Miscellaneous Permits

Deck

53,795

56,088

Addition

71,328

374,187

311,100

54,361

Alterations Garage Addition

663,821

141,830

497,376

101,385

213

8,546,186

2,264,239

MAY 2017 & 2018 Permits 45 40

Store/Restaurant

Nonresidential Building

Service/Repair Station

20 15

132,431

Alterations

255,855

214,568

Re-roofing

Pool, Retaining Wall, etc.

Manufactured Homes

Addition

2018

Commercial/Industrial

2017

TOTAL PERMITS

Industrial/Warehouse

2018

Church/Religious

2017

2018

VALUATION

2017

Plumbing

New Commercial/Industrial Recreational

VALUATION

Mechanical

Total Permits

Residential

2018

5 0

0 Stewartville $961,344 $1,950,445

Other Structures

Oronoco $740,299

$669,046

Marion $736,770

$633,849

Eyota $348,255

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 5-2015

5-2016

5-2017

5-2018

5-2015

5-2016

5-2017

5-2018

5-2015

5-2016

5-2017

5-2018

5-2015

5-2016

5-2017

5-2018

5-2015

5-2016

5-2017

5-2018

5-2015

5-2016

5-2017

5-2018

5-2015

5-2016

5-2017

5-2018

5-2015

5-2016

5-2017

5-2018

5-2015

5-2016

5-2017

5-2018

5-2015

5-2016

5-2017

5-2018

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

5-2017

5-2018

Percent Change

YTD 2017 YTD 2018

795

756

- 4.9%

3,143

2,882

- 8.3%

730

659

- 9.7%

2,682

2,542

- 5.2%

637

580

- 8.9%

2,047

1,945

- 5.0%

+ 11.7%

- 5.3%

$178,000

$195,000

+ 9.6%

$172,000

$185,000

+ 7.6%

$206,503

$228,213

+ 10.5%

$199,001

$212,436

+ 6.8%

97.7%

98.0%

+ 0.3%

96.7%

96.8%

+ 0.1%

222

190

- 14.4%

229

200

- 12.7%

1,377

1,178

- 14.5%

2.7

2.4

- 11.1%

Percent Change

www.RochesterAreaBuilders.com

FOUNDATIONS June-July 2018

Membership Information

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

NONE

Membership Renewals as of 5/31/18

MEMBERSHIP TOTAL: 485 RETENTION RATE: 89.7% As of 5-31-2018

One Year EZ Fabricating, Inc. Fairway Outdoor Advertising, LLC Hy-Vee

2017 2017 2017

Two to Four Years Lembke Construction, Inc. City of Elgin EO Johnson Business Technologies Lewiston EDA Wintrust Mortgage Fat Willy's Bar & Grill Kahler Hospitality Group Manufacturer's Bank & Trust

2016 2015 2015 2015 2015 2014 2014 2014

Five to Nine Years Altra Federal Credit Union Stewartville EDA West Bank Priority Construction Services Elias Construction, LLC Energy Panel Structures MEP Associates Val-U-Blinds Wildwood Sports Bar and Grill

2013 2013 2013 2012 2011 2011 2010 2010 2010

Ten to 19 Years Allegra Marketing Legends Concrete, Inc. Schoeppner, Inc. WA Insurance Innovative Surfaces, Inc. Todd Eidem Construction, Inc. Habitat for Humanity - Rochester Area Home Improvement Professionals, Inc.

2007 2007 2006 2006 2002 2002 2000 1999

20 Years & More S.L. Contracting, Inc. Hentges Glass Company Craig Swanson Builders, Inc. Radcliffe Homes & Remodeling Kreofsky Building Supplies R&M Development Company Alexander & Sons Builders Palmer Soderberg, Inc.

FOUNDATIONS June-July 2018

1998 1991 1989 1988 1985 1970 1962 1958

WE WELCOME THE FOLLOWING NEW MEMBERS IN JUNE

FAMILY TRADITION FLOORING 2025 5th Ave SW Rochester, MN 55902 Phone: 507-261-8704 Contact: Ben Savage Associate Member Flooring: Labor/Retail FOSTER KLIMA & CO. â&#x20AC;&#x201C; NICK DAVIDSON 2746 Superior Drive NW, Suite 370 Rochester, MN 55901 Phone: 507-990-3139 Contact: Nick Davidson Associate Member Financial Advisor/Insurance Sponsored by: Mike Allen, Mike Allen Homes, LLC ROBERTS HAMILTON 2411 7th St NW Rochester, MN 55901 Phone: 507-322-6352 Contact: Dylan Gorman Associate Member Plumbing Wholesale Sponsored by: Jerry Jensen, Valor Mechanical, Inc.

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 Spencer Holmen, TLS Companies 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 Herrmann, 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 August 1, 2016 â&#x20AC;&#x201C; December 31, 2019

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, 40 Below

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

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

www.RochesterAreaBuilders.com

FOUNDATIONS June-July 2018

www.RochesterAreaBuilders.com

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!

www.RochesterAreaBuilders.com

FOUNDATIONS June-July 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 June-July 2018