FOUNDATIONS JULY - AUGUST by Rochester Area Builders, Inc.

JULY - AUGUST 2020

1 | FOUNDATIONS NEWSLTR

ROCHESTER AREA BUILDERS, INC.

RAB CALENDAR AUGUST Meetings

TOWN HALL CITY COUNCIL FORUM

MEMBER BENEFIT BAM Rebate information

D C

DEVELOPMENT COUNCIL a division of the Rochester Area Builders, Inc.

C OMMERCIAL C B UILDERS

OUNCIL

a division of Rochester Area Builders, Inc.

STAFF EXECUTIVE DIRECTOR John Eischen, John@RochesterAreaBuilders.com STAFF Shelly Bahlmann, Shelly@RochesterAreaBuilders.com Golf Outing, Sporting Clays, Home Show, Directory, Newsletter, RAB Update Audra Bolduan, Audra@RochesterAreaBuilders.com Builders Exchange Trustees and Showcase Committee Rebekah Nielsen, Rebekah@RochesterAreaBuilders.com Ambassadors, Awards, Community Relations, Education, Membership, Fashion Show, Program, Spike Club, Remodelers Council: Executive & Remodelers Tour, 40 Below GOVERNMENT & PUBLIC AFFAIRS CONSULTANT Rick Dold, Rick@GodwinDold.com

PRESIDENT Alissa Moe, Bremer Bank VICE PRESIDENT Luke Stier, Stier Construction, Inc. SECRETARY Becky Holmen, Bright Ideas TREASURER Jesse Buhl, MedCity Consulting PAST PRESIDENT Jerry Jensen, Valor Mechanical, Inc. DIRECTORS Kenneth Bush, Rochester Asphalt & Concrete Adam Giannini, Meyer Borgman Johnson Spencer Holmen, TLS Companies Jennifer Lawver, ERH Developing, Inc. Tom Leimer, Knutson Construction Kevin Sternberg, Countryside Builders, LLC Kevin Reckinger, Bricewood, LLC Charlie Sweeney, Kraus-Anderson Construction Jennifer Mitchell, Edina Realty BUILDERS EXCHANGE COUNCIL REPRESENTATIVES John Honeck, Harris Company, (Chair) Kurt Hoeger, United Rentals, (Vice Chair) Jeremy Wohlfiel, Merit Contracting, Inc. (Past Chair) COMMERCIAL BUILDERS COUNCIL CHAIR Vanessa Hines, Eidseth Smith Nolting DEVELOPMENT COUNCIL CHAIR Hal Henderson, HGA Architects & Engineers REMODELERS COUNCIL CHAIR Jessica Markley, Elias Construction 40 BELOW CHAIR Katie Olson, Kimley-Horn & Associates, Inc. NATIONAL LIFE DIRECTORS Joe Weis, Weis Builders, Inc. Steve Buss, Cornerstone Builders & Real Estate, Inc. NATIONAL DIRECTORS Dana Hlebichuk, Widseth Smith Nolting Levi Kaiser, Alvin E. Benike, Inc., (Rep) Todd Severson, TLS Companies, LLC

Tuesday, August 11th 12:00pm Hosted by 40 Below Open to all RAB Members Free to attend * REGISTER

FORTY

RAB

BOARD OF DIRECTORS

BELoW CONNECTING. BUILDING. ENGAGING.

Please join us for an update on two exciting projects from DMC. Heart of the City Phase One is a complicated project to begin with being located in one of the most dense areas of downtown Rochester and it also kicked off during COVID. During the DMC update – learn about the new Business Forward Strategy that was developed to support the small businesses during construction and how the team shifted during the pandemic. DMC will also provide an update on Discovery Walk, Rochester’s newest public space improvement plan.

STATE DIRECTORS Mike Allen, Mike Allen Homes, LLC Jean DeWitz, DeWitz Home Builders, Inc. (Rep) Kathy Einck, Maplewood Homes.LLC John McGuine, JM Consulting David Pederson, Dunlap & Seeger Dan Severson, Dan Severson Builders, Inc.,

MISSION STATEMENT The Rochester Area Builders, Inc, chartered in 1953, is a professional organization of commercial & residential builders, remodelers, developers and associated businesses dedicated to advancing the building industry in Southeast Minnesota.

We are the trusted voice of the industry, providing leadership, education, networking, and information resources to our members, community and government officials.

42 Annual nd

Remodelers

SAVE THE DATE 7

THA

! U O NK Y

17 18

14 DMC UPDATE....................................................... 2

Hosted by 40 Below

RAB CALENDAR................................................... 4

August 2020

RAB GOLF OUTING.........................................14-15

Registration Information

RAB HOME SHOW...............................................17

Registration Information

GREEN BUILDING PUBLICATION.......................... 18

LETTER FROM RAB PRESIDENT............................ 5

Alissa Moe, Bremer Bank, 2020 RAB President

More Than Ever, Itâ&#x20AC;&#x2122;s Time for a Healthy Home

MEMBERSHIP REPORT......................................... 6

BAM PREPAREDNESS PLAN UPDATE.................... 19

NAHB EYE ON HOUSING....................................... 6

June 2020

Home Refinancing Surges

FALL SHOWCASE/ REMODELERS TOUR ................7

Show information

NEW MEMBER WELCOME..................................... 8 SHOWCASE/REMODELERS TOUR MAGAZINE........10

Market your property in this years event!

MEMBERSHIP DUES............................................11

A New Way to Pay!

SPORTING CLAYS...............................................12

Registration Information

ROCHESTER CITY COUNCIL FORUM.....................13

Know Your Vote!

ROCHESTER BUILDING PERMITS......................... 20 BYRON BUILDING PERMITS................................. 20

June 2020

SEMR HISTORICAL OVERVIEW............................. 21 June 2020

OLMSTED BUILDING PERMITS ............................ 21

June2020

NAHB EYE ON HOUSING...................................... 20

Rising Softwood Lumber Costs Lead Building Materials Prices Higher in June

4 | JULY - AUGUST 2020

SUNDAY

MONDAY

TUESDAY

AUGUST 2020 WEDNESDAY

THURSDAY

FRIDAY

SATURDAY 1

5 7:30 AM Webinar Commercial Builders Council 1:00 PM Executive Committee Meeting 3:00 PM Rochester City Council President Virtual Town hall 4:00 PM Rochester Ward 2 Virtual Town Hall

10 3:00 PM Builders Exchange Board of Trustees Meeting

4 8:00 AM Remodelers Council Executive Meeting 2:00 PM Government Affairs Committee Meeting

10:00 AM Program Committee Meeting 3:00 PM Rochester Ward 4 Virtual Town Hall 4:00 PM Rochester Ward 6 Virtual Town Hall

10:00 AM 10:00 AM Ambassadors Membership Committee Meeting Committee Meeting 3:00 PM DMC Update

10:00 AM 9:00 AM Home Show Remodelers Tour Committee Meeting Committee 11:00 AM Education Committee 30

12:00 PM 4:30 PM Webinar 40 Below Executive DMC Construction Meeting Update 3:00 PM RAB Board Meeting

10:00 AM Webinar Green Building

3:00 PM Development Services Advisory Committee Meeting

10:00 AM Community Relations Committee Meeting

5 | FOUNDATIONS NEWSLTR

FROM THE PRESIDENT Hello again! How has summer been treating you? It seems as though I blinked and it was August, yet as I reflect on the last couple months, I am pleased with the amount of time I have been able to spend outdoors enjoying this beautiful (and sometimes humid) Midwest weather. I am working back in my actual office, after nearly 5 months of working remotely. As a self-proclaimed “people person”, it brings me a lot of joy to see my coworkers and customers face to face again…err..or rather facemask to facemask. Ha! July marked the midway point of summer. July also brought our first member event (aside from the Spring Showcase of Homes) since March. This event sold out within the first two days of registration being open. 144 golfers participated in an afternoon and evening of golf. As one of the first organizations to host an event like this, we were precautious given the environment that we have been in. We took every measure we could to ensure that we could put this event on for our membership. Our goal is to provide value to you, and I hope this event offered some of that. I want to extend a heartfelt thank you to the RAB staff, the Golf Committee, and everyone that volunteered their time to make this event happen. I had a wonderful time attending the event and feel extremely blessed to be part of such a strong membership that was eager to get back together while staying six feet apart! Committee meetings are proceeding as virtual meetings for the time being. Your active

participation in these is important, as our organization relies on your hard work for so much! If you are not currently serving on a committee and would like to, please feel free to browse our website to see the various committee options that are available for you. The Fall Showcase of Homes is on the calendar for September 19-20 & 26-27 and the Remodelers Tour is on for September 19-20. We are intending to hold these events in person, as our membership has voiced that this seems to be the most valuable experience for all involved. We will adhere to the guidelines for health and safety, just as we did for the Spring Showcase. Despite the pandemic, there is still a hot housing market and a housing demand within our community. This event is a Rochester staple and targets not only consumers that may be looking for a new build home, but also those that are seeking a licensed professional to renovate their current home. This is definitely a chance to demonstrate your best work. If you are interested in submitting a home to be featured on either tour, be on the lookout for the entry forms that have been sent out via email. The RAB staff have already been getting questions about one of our most cherished events and I am excited to share that we have a date set. On September 17, we will be hosting the Sporting Clay Shoot. This event, much like the golf outing, is a high demand event and sells out quickly. Sponsorship opportunities will be available. Please be prepared to register as soon as the

Alissa Moe President Rochester Area Builders, Inc forms are sent out, as there are only 150 slots for participation. I want to give a generous thank you to Rick Dold and our Government Affairs committee, as they continue to work hard for our membership and our community. They are on high alert for hot topic issues that you should be made aware of. They carefully craft Advocacy Alerts that take a sometimes complicated topic of discussion and display the facts of what ramifications certain decisions can have on our membership and our community. It is important to be informed, and I am very grateful for the dedication this group has to informing our membership.

Alissa Moe Bremer Bank 2020 RAB President

6 | JULY - AUGUST 2020

ROCHESTER AREA BUILDERS, INC.

MEMBERSHIP REPORT JUNE 2020

HOME REFINANCING SURGES BY LITIC MURALI on JULY 15, 2020

MEMBERSHIP TOTAL: 436 RETENTION RATE: 88.7 As of June 30, 2020 ONE TO FOUR YEARS Enercept, Inc.............................................2019 Family Tradition Flooring........................2018 Roberts Hamilton......................................2018 Completely Clean......................................2017 Kramer Contracting, LLC.........................2017 Minnesota 97.5 FM - KNXR......................2016

FIVE TO NINE YEARS The Pinske Edge...................................................2014 Cemstone Supply................................................2013 Hammer Homes Inc............................................2011

TEN TO 19 YEARS King’s Flooring, LLC............................................2009 Warners’ Stellian Appliance Company, Inc..2008 Green Lawncare Irrigation & Service Co......2007 McGough Construction......................................2006 Cravath Homes, LLC...........................................2005 Prime Time Painting of Rochester, LLC.........2005 R.J. Manemann Custom Homes, Inc..............2004 DMC Plumbing & Heating, Inc.........................2003 Design Studio B....................................................2001

20 YEARS & MORE Larson Siding & Windows.......................1986 Commercial Leasing Services................1984 Merit Contracting, Inc..............................1982 Sargent’s Landscape Nursery, Inc.........1977 Heartman Insurance................................1966

The Mortgage Bankers Association’s (MBA) latest Weekly Application shows an uptick in applications for the week ending July 10, 2020. The Market Composite Index increased by 5.1% from the previous week on a seasonally adjusted basis, owing mainly to the surge in refinancing activity of 11.9% compared to a week before. The increase was partially offset by the slowdown of purchasing activity by 6.1%. The MBA’s 30-year fixed-rate mortgage rate fell to a new record low of 3.19%, sliding by 7 basis points from the previous week. Refinance applications increased slightly, of which the main contributor was the increase in conventional refinances. Throughout the pandemic, the weekly fluctuations have underrepresented the outsized gains seen in mortgage activity as measured on a year-overyear basis. On an unadjusted basis, the current Purchase Index was 16% higher than what it was the same week one year ago while the Refinance Index was 107% higher than what it was the same week one year ago. Also, on a year-over-year basis, the Refinance and Purchase Indexes have moved

in tandem with each other since the beginning of 2019 (as shown below) until the end of the first quarter of 2020, the period that coincided with the pandemic, which may be indicative of liquidity-strapped homeowners’ behavior in economic recessions, as well as solid demand for remodeling. Notably, the refinance share of mortgage activity increased to 64.2 percent of total applications from 60.1 percent in the previous week. The MBA notes that refinance loan balances climbed to a high last seen in March. By dollar volume, refinance activity increased, on an unadjusted basis, by 28.1% from the previous week while purchase activity increased by 2.1%.

7 | FOUNDATIONS NEWSLTR

September 19-20 & 26-27, 2020 11:00am to 5:00pm Saturday & Sunday

The 2020 Fall Showcase will be here before you know it. Get your latest and greatest homes, townhomes, developments, and townhome communities out in front of the public. Deadlines: Discount – August 6 (save $150/entry) Final – August 27 Entry Information and Forms

Remodelers

September 19-20, 2020 11:00am to 5:00pm Saturday & Sunday

Do you have a remodeling project you would like to have open to the public so they can see the finished results firsthand? The Remodelers Tour has been created to offer you this great marketing opportunity. It’s an excellent way to gain exposure for your company and your projects. All remodelers are eligible to participate, including designers, landscape contractors, architects and more. Safety measures will be in place in response to COVID-19. Deadlines: 1st Deadline: August 6 - ($100 discount) Final Deadline: August 27

Entry information and forms can be found HERE!

8 | JULY - AUGUST 2020

WELCOME NEW RAB MEMBERS JULY 2020

HYATT HOUSE ROCHESTER MAYO CLINIC AREA

As a member of RAB, you have an opportunity to join one of our popular Councils. We also have many Committees to get involved with. Below is a list of ones that have openings. We would love to have you! Email us!

COMMITTEES

MEGHANN SOUTHWICK

Hotel (507) 203-8991 hyatthouse.com

• Ambassadors Club

• Green Building

• Remodelers Tour

• Community Relations

• Home Show

• Showcase

• Education

• Membership & Retention

• Sporting Clay Shoot

• Golf Outing

• Program

COUNCILS C OMMERCIAL C B UILDERS

OUNCIL

a division of Rochester Area Builders, Inc.

D C

DEVELOPMENT COUNCIL a division of the Rochester Area Builders, Inc.

9 | FOUNDATIONS NEWSLTR

10 | JULY - AUGUST 2020

Remodelers

August

RAB has contracted with Tulip Tree Studios for ad sales and design services. For more information on how to advertise in our digital magazine, contact Alicia at 507-218-8401 or at Alicia@tuliptree-studios.com

11 | FOUNDATIONS NEWSLTR

You can now choose to pay your annual membership dues with a monthly payment op�on of $59/month. Save on stamps, checks, and late payments. Just set up automa�c monthly payments! Please follow these simple steps to get started.

$59

STEPS:

/mo.

1. Login to the Member Informa�on Center at http://rochesterareabuilders.memberzone.com/login?dest=paymentprofile 2. Add your credit card or bank account as a new Payment Profile. 3. Click the checkbox next to these words “By checking this box and submi�ng this payment profile...”. 4. Click “Add Profile” bu�on to save your Payment Profile. That's it. We will let you know when the setup is complete and provide confirma�on of the monthly dues payment details. If you wish to u�lize an automa�c annual payment for your annual dues, please send us an email message. For questions or concerns, please contact us at (507) 282-7698 or RAB@rochesterareabuilders.com *Forgot your login? Go to: http://rochesterareabuilders.memberzone.com/login/forgotpwd to reset your password. Or create your login account for the first time at this registration page: https://rochesterareabuilders.memberzone.com/CreateAccount

12 | JULY - AUGUST 2020

Rochester Area Builders Sporting Clay Shoot

SAVE THE DATE September 17, 2020 1:00–1:30 P.M. 1:30–2:00 P.M. 2:00 P.M. 5:00 P.M. 5:15 P.M. 6:00 P.M.

Registration & Mandatory Safety Talk Shooters Released to Opening Stations Shooting Starts Shooting Complete. Keg is Tapped Dinner Raffle Drawing!

Shooting (Clays & Shells) and Dinner: Individual: $175.00 per Person Teamss Dinner only: $25.00 per person Registration Includes: • 20 Stations with 100 clay targets & 100 Shells • BBQ Style Dinner & Beverages • Various Optional Games throughout Course Pri • Prizes for High Team, High Individual, and Low Individual

SPONSORSHIPS AVAILABLE

13 | FOUNDATIONS NEWSLTR

Rochester City Council Candidate Forum Hosted by:

August 5:

3-4 PM City Council President 4-5 PM Ward 2

August 6:

3-4 PM Ward 4 4-5 PM Ward 6

Members: Please register for next weekâ&#x20AC;&#x2122;s Virtual Town Hall meetings with Rochester City Council Candidates. We will be utilizing GoToWebinar. This is an opportunity to learn about the candidates and hear their thoughts on industry-related topics.

14 | JULY - AUGUST 2020

THANK YOU TO OUR SPONSORS FOR MAKING THE 2020 RAB GOLF OUTING A SUCCESS! ABC Supply Co., Inc. - North Rochester Accord Electric, Inc. Altra Federal Credit Union Braun Intertec Corporation Brock White Company Carpet One of Rochester Clements Chevrolet Cadillac Culligan of Rochester & Kasson Custom Alarm / Custom Communications Inc Destination Building Center Energy Products & Design, Inc. Haley Comfort Systems Harris Rochester, Inc. Home Federal Savings Bank In Memory of Dick Hexum J.F. Ahern Company Knight Barry Title United, LLC Knutson Construction Services Kraus-Anderson Construction LVC Companies, Inc. McGough Construction Merchants Bank Midwest Floor Solutions, Inc. North Risk Partners On Site Companies ONB Bank Pella Windows & Doors Pompeii Painting, Inc. Premier Bank Rochester Rochester Title Schluter Systems Schwickert's Tecta America, LLC Smith Schafer & Associates, Ltd. Somerby Golf Community Stewartville EDA Sunbelt Rentals The Builders Group (TBG) The Pinske Edge Think Bank Valor Mechanical, Inc. Warners' Stellian Appliance Company, Inc. Wells Fargo Home Mortgage WSB

Outing

15 | FOUNDATIONS NEWSLTR

16 | JULY - AUGUST 2020

GREAT TIME TO LOCK IN YOUR RATE

R E F I NAN C E YO U R H O M E GREG JOHNSON

JEANNE STRUCKMANN

LOAN ORIGINATOR

Direct Line 507-258-2192 Email gjohnson@altra.org NMLS# 516974

Direct Line 507-421-7655 Email jstruckmann@altra.org NMLS# 411311

3833 Cascade Creek Rd. NW

(Corner of 19th St. & West Circle Drive)

123 16th Ave. SW, Suite 500 Rochester, MN

507-258-4500 â&#x20AC;¢ 800-755-0055 www.altra.org Contact Altra for more information. Equal Housing Lender. Federally insured by NCUA.

17 | FOUNDATIONS NEWSLTR

ROCHESTER AREA BUILDERS HOME SHOW 42 Annual nd

First Right Of Refusal Extended to August 6th Open Registration Begins August 10th

February 5-7, 2021

app is back with updates

Sunday Family Fun Day

NOW WITH MULTI-FLOOR VIEWS

family fun

Rochester Area Builders, Inc.

friday night

Date night with celebrity chef

Shari Mukherjee

from masterchef with gordon ramsay season 10

18 | JULY - AUGUST 2020

More Than Ever, It’s Time for a Healthy Home A ROCHESTER AREA BUILDERS GREEN BUILDING COMMITTEE PUBLICATION

Courtesy of Sam Rashkin, Chief Architech, U.S. DOE Building Technologies Office

Even before the latest COVID-19 crisis has made staying well top-of-mind, there has been a surge of interest in healthy homes. And that makes sense. Most of us spend more time and breathe more at home than anywhere else. Without careful attention to indoor air quality, the air inside our homes can have significantly higher air pollutant levels than outdoors. That’s why every home certified to the U.S. Department of Energy Zero Energy Ready Home program includes a comprehensive package of equipment and design features to help occupants maintain clean and safe indoor air. This is achieved with three proven innovations. Innovation #1 is Contaminant Resistant Construction. This involves products and building practices that help address the greatest health risks to homeowners. These include: •

materials that minimize or eliminate dangerous chemicals,

•

air-tight construction and screens that block moisture, dust, pollen, and pests from getting indoors, and

•

radon resistant construction that protects homes located in areas with high levels of this dangerous radioactive soil gas.

Innovation #2 is a Fresh Air System. This starts with a whole-house ventilation system that provides the outdoor air needed to dilute residual contaminants from construction, furnishings, and normal home use. In addition, quiet and effective exhaust fans are provided in kitchens and bathrooms to expel moisture, odors, and other pollutants created in these rooms. And finally, Innovation #3 is High-Capture Filtration Technology. High quality filters are used to effectively remove tiny dust particles flowing through the lungs of the home…the heating and cooling system ducts. All of these innovations work together as an indoor air quality system to help minimize contaminants associated with respiratory problems. They also go hand-in-hand with inherently air-tight building systems like SIPs that block outdoor contaminants from getting indoors. Homeowners deserve this expert-recommended protection for the health of their households. Visit the DOE Zero Energy Ready Home homepage for more information (https://www.energy.gov/eere/buildings/zero-energy-ready-homes).

19 | FOUNDATIONS NEWSLTR

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20 | JULY - AUGUST 2020

ROCHESTER BUILDING PERMITS 2020

VALUATION 2019

JUNE 2020

2011 2012 2013 2014 2015 2016 2017 2018

VALUATION

2019 2020

NEW RESIDENTIAL Single Family Dwelling Townhome Dwelling

4,937,215

8,762,828

286,662

898,490

January February

Two-Family Houses

March

Manufactured Home

April

Multi-Family Bldgs (Units)

May

EXISTING RESIDENTIAL Deck Addition

144,753

169,286

Room Addition

288,666

425,000

Porch Additions

35,000

Other Additions

14,000

131,000

Basement Finish

210,665

311,700

Alterations

810,191

486,776

Multi-Family Addition

Multi-Family Alterations

523,605

61,280

Assembly (Church)

Assembly (General)

315,682 1,992,585

June

TOTAL

141

162

160

161

201

219

166

115

121

August

September

October

November

December

*total may differ been voided. TOTAL 191as permits 299 may 326 have369 369 418

429

347

289

July

121

*total may differ as permits may have been voided.

NEW COMMERCIAL

Assembly (Restaurant/Bar)

Business

530,000

3,503,000

Education

Factory/Industrial

BUILDING PERMITS ISSUED TO DATE

857

175,612,308

1015

196,650,987

Single Family Dwelling

102

30,608,174

106

31,805,649

Multi-Family Buildings Total Units: 76

10,640,000

4,025,262

TRADE PERMITS ISSUED TO DATE

4588

53,845,365

4757

55,216,524

Electrical

1731

23,727,834

1868

24,799,537

Institution

Mercantile

Miscellaneous

Residential (Apartment)

0 0

Residential (Care/Assisted Living)

3,798,900

Residential (Care/Hotel/Motel)

Storage (General)

2,173,480

Storage (Parking Garage)

Storage (Warehouse)

Utility (General)

464,021

Utility (Private Garage)

3,366,132

1,518,120

6,954,340

7,543,977

Structural Shell

“White Box”

0 0 0

Alterations

Electrical (Temp. Service)

Interior Demolition Only

Other Phased Permits

OTHER CONSTRUCTION Business Signs

75,513

11,400

Advertising Signs

Footings & Foundations

550,000

Demolition

Information and downloads available at Rochester Building Safety Department’s website: https://www.rochestermn.gov/departments/building-safety/reports-building-permits/ building-permits-2019

2020 VALUATION

NO.

2019 VALUATION

134

53,550

122

68,096

1205

16,278,031

1222

14,691,506

Mechanical (Gas Piping)

296

469,177

266

366,991

Mechanical (Fireplace)

149

610,200

136

614,246

Mechanical (Hydronic)

2,263,437

6,233,257

987

10,443,136

1044

8,442,891

5445

229,457,673

5772

251,867,511

Mechanical (HVAC)

Plumbing

EXISTING COMMERCIAL Addition

YEAR TO DATE STATISTICS

NO.

TOTAL PERMITS YTD

JUNE 2020

BYRON

BUILDING PERMITS

NUMBER

VALUATION

Single Family Attached

NEW RESIDENTIAL

Single Family Detached

720,000

Basement Finish

65,686

Deck Addition

64,000

Existing Residential

21 | FOUNDATIONS NEWSLTR

OLMSTED COUNTY PERMITS YTD

2020

VALUATION

2019

VALUATION

Single Family-Attached Garage

2,533,415

Addition

2,740,486

636,440

210,675

107,660

56,716

32,760

385,487

836,190

335,943

9,612

40,673

RESIDENTIAL Addition Alterations Garage Addition

VALUATION

422,867

886,284 30,740

Alterations

67,465

Re-roofing

8,250

183,664

147,666

Mechanical

1,099,104

551,337

Plumbing

860,886

295,637

296

13,499,910

190

5,681,643

Pool, Retaining Wall, etc. Manufactured Homes

MISCELLANEOUS PERMITS

NEW COMMERCIAL/INDUSTRIAL Recreational

Church/Religious

Industrial/Warehouse

Store/Restaurant

Nonresidential Building

355,968

Service/Repair Station

VALUATION $464,774 PERMITS 5

2019

OTHER STRUCTURES

Deck

2019

VALUATION

COMMERCIAL/INDUSTRIAL

Single Family-Detached

2020

NEW RESIDENTIAL

JUNE 2020

TOTAL PERMITS

OLMSTED COUNTY PERMITS JUNE

2020

VALUATION $127,104 PERMITS 1

EYOTA

VALUATION $426,124 PERMITS 13

VALUATION $699,058 PERMITS 39

VALUATION $70,380 PERMITS 6

MARION

VALUATION $67,713 PERMITS 7

VALUATION $0 PERMITS 0

ORONOCO TWP

VALUATION $349,181 PERMITS 20

VALUATION $1,560 PERMITS 1

QUINCY

VALUATION $95,942 PERMITS 15

STEWARTVILLE

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 6-2017

6-2018

6-2019

6-2020

6-2017

6-2018

6-2019

6-2020

6-2017

6-2018

6-2019

6-2020

6-2017

6-2018

6-2019

6-2020

6-2017

6-2018

6-2019

6-2020

6-2017

6-2018

6-2019

6-2020

6-2017

6-2018

6-2019

6-2020

6-2017

6-2018

6-2019

6-2020

6-2017

6-2018

6-2019

6-2020

6-2017

6-2018

6-2019

6-2020

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

6-2019

6-2020

Percent Change

YTD 2019 YTD 2020

740

686

- 7.3%

3,801

3,505

- 7.8%

598

769

+ 28.6%

3,093

3,270

+ 5.7%

761

669

- 12.1%

2,771

2,704

- 2.4%

+ 2.0%

0.0%

$219,900

$228,250

+ 3.8%

$202,000

$217,500

+ 7.7%

$242,118

$251,750

+ 4.0%

$224,660

$241,233

+ 7.4%

97.8%

98.1%

+ 0.3%

96.8%

97.0%

+ 0.2%

175

187

+ 6.9%

191

196

+ 2.6%

1,494

1,009

- 32.5%

3.0

1.9

- 36.7%

Percent Change

22 | JULY - AUGUST 2020

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.

23 | FOUNDATIONS NEWSLTR

24 | JULY - AUGUST 2020

BUILT ON SOLID TRUST Call us today to talk about financing your building project.

www.bankonONB.com Peter E Erickson SVP - Commercial Real Estate NMLS #808995 (507) 424-1562 pete@bankononb.com

Crystal Hughley

Residential Real Estate NMLS #1389898 (507) 424-1571 crystal.hughley@bankononb.com

25 | FOUNDATIONS NEWSLTR

Rising Softwood Lumber Costs Lead Building Materials Prices Higher in June BY DAVID LOGAN on JULY 13, 2020

Prices paid for goods used in residential construction increased 1.9% in June (not seasonally adjusted) according to the latest Producer Price Index (PPI) report released by the Bureau of Labor Statistics. It is the second consecutive monthly increase since the index declined three months straight by a total 5.4%.

Prices paid for gypsum products climbed 0.6% in June after increasing 1.5% in May (seasonally adjusted). The price index for gypsum products has risen 0.8% over the past 12 months and is 7.7% lower than the most recent peak reached in March 2018.

The index has decreased 3.0% year-todate (YTD), five times the magnitude of the prior record for a June YTD decrease (-0.6% in 2009). Prices paid for goods used in residential construction have only fallen four times between January and June since 2000. Even after the monthly increase, gypsum product prices have declined 2.5% YTD. Prices fell by 3.9% over the same period in 2019 and are just 4.4% higher than they were to start 2017.

The increase in prices paid for goods used in residential construction was led by a 12.9% increase in softwood lumber prices. Since decreasing 10.8% in April, softwood lumber prices have risen 16.5% and are now at the highest level since July 2018â&#x20AC;&#x201D;the peak of the early- to mid-2018 runup. Although the YTD percentage increase in prices paid for softwood lumber is roughly two-thirds of the increase seen over the same period in 2018, timing of PPI data collection suggests that a recent, sharp advance in prices will be captured in the July PPI report.

Nationally, prices paid for ready-mix concrete (RMC) advanced 0.1% in June (seasonally adjusted) after no change in May.

Prices rose in the Northeast and West regions by 0.6% and 4.5%, respectively, while prices paid in the Midwest (-0.4%) and South (-2.3%) decreased month-over-month.

Other changes in indexes relevant to home building and infrastructure are shown below.

26 | JULY - AUGUST 2020

Members Save Millions Put Your NAHB Membership to Work Now. Money-saving discounts that benefit you, your business and your family

nahb.org/Savings

27 | FOUNDATIONS NEWSLTR

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Fleming Construction, Inc. + FloCore + Ford Metro, ntone TiborFamily & Maves, Ltd. Inc. + Wintrust Mortgage Wobig Construction, LLC +Union Women Communications, LLC + Workforce Development, + Wright Homes, Inc. + WSB & Associates, Inc. +Inc. WT n, Inc. + Franklin Energy Frattalone + Chris +Fritsch CustomHomes Homes, LLC + Gander Plumbing & Heating, Inc.= +RAB Dale Gathje Construction, Inc. + Steve Gentry Construction, gy + XRG Concepts, LLC ++ Your Home Companies, ImprovementInc. Company Zen Custom + Zillgitt Civil Design + Zimprovements Kitchen & Bath Store + Robert GillRochester Builder, Inc. + Area GodwinBuilders Dold + Goodin Company + GPis Development, Inc. + Grand Meadow EDA +to Great River Overhead Door + Green Lawncare Irrigation The Newsletter an unbeatable opportunity advertise to members and individuals Company of Rochester, LLCassociated + Habitat for Humanity - Rochester + Haley Systems + W.L. Hall and Company + Hamilton Plumbing + Hammer Homes, Inc. + Hanson with RAB. It is a Area source ofComfort valuable association industry information, and is published andConstruction emailed s, LLC + James Hardie Building Products + Harmony EDA + Harmony Insurance Group + Hartman Complete Lawncare, LLC + Hayfield Window & Door Company + HDR Architecture + monthly. Foundations is sent to over 900 connected The +sizes of ads are under Display Heartman Insurance + Heartwood Homes of Rochester, Inc. + Brandon Henderson's Constructionindustry Plus, LLC + professionals. Hentges Glass Company HGA Architects andlisted Engineers + Hicks Electric, m Cabinetry + High DefinitionAd Homes, LLC + Highmark Builders + Hiller's Flooring America at Home Jeff Hinkle Custom Homes, Inc. 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Convert el Jack, LLC + Jaguar Communications + JP's Construction Remodeling & Repair, Inc. + K&M Glass Company + K&S Heating, A/C, Plumbing & Electrical + to outlines. acceptInc. the+following file types: .tif, .eps Inc. and+ Kimley-Horn .pdf (with& all graphics and Group + Tom Kalmes Construction, Inc. + We also Kariel, M.P. Kaye high resolution Builders, Inc. + Key Builders, Associates, Inc. + KIMTfonts - CBS 3 LC + Kirkland Enterprises,embedded) LLC + The Studioformats, + files. 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NW+ Think Mutual Bank + Thomas Tool & Supply + Thompson's Garage Door and Openers + Tile Superstore & More + TLC Surfaces, LLC + TLS Mail: E-cal, Rochester, MN 55901 Companies, LLC + Tonna MechaniInc. +Shelly@RochesterAreaBuilders.com 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. + United Rentals + The Urban Studio, LLC + U.S. Bank + Valor Mechanical, Inc. + Val-U-Blinds + Veit Companies + Viking Automatic Sprinkler Company + Viking Electric Supply + Vision Homes & Remodeling, LLC + WA Insurance + Warners' Stellian Appliance Co., Inc. + Waste Management + J. 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