SEPT - OCT 2020
1 | FOUNDATIONS NEWSLTR
ROCHESTER AREA BUILDERS, INC.
Congratulations Fall Showcase Winners pgs. 18-21
Fall Showcase of
OVERALL EVENT SPONSOR
MISS IT? VIRTUAL SHOWCASE AVAILABLE
SURVEY COMMUNITY INPUT SURVEY
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CLOTHING DRIVE FIND OUT THE WHO/WHAT/ WHERE
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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
BOARD OF DIRECTORS 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 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
ROCHESTER AREA BUILDERS
WEBINAR REPLAY Subscribe to the Rochester Area Builders’ YouTube channel to get access to our Webinars and other videos.
Fall Remodelers Showcase of
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 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.,
MISS THE FALL SHOWCASE OF HOMES OR REMODELERS TOUR? View all entries virtually through our app or by visiting our website RochesterAreaBuilders.com Overall Event Sponsor: Virtual Showcase made possible by:
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
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THA
25
! U O NK Y
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10 FALL SHOWCASE/ REMODELERS TOUR............... 2
Virtual Showcase and Tour Information
RAB CALENDAR.................................................. 4
NAHB EYE ON HOUSING.................................... 17
Consumer Confidence Rebounds Strongly in September
FALL SHOWCASE OF HOMES........................ 18-21
October 2020
Winners of the Showcase Announced
LETTER FROM RAB PRESIDENT........................... 5
RAB HOME SHOW..............................................22
Alissa Moe, Bremer Bank, 2020 RAB President
MEMBERSHIP REPORT........................................ 6
August 2020
NAHB NOW ....................................................... 6
Escalating Lumber Prices Hamper Home Owner Dreams
CITY OF ROCHESTER .......................................... 7
Registration Information
NAHB EYE ON HOUSING.....................................25
COVID-19 Impacts Apartment and Condominium Absorption Rates
ROCHESTER BUILDING AND SAFETY..............26-27
Litter Bit Better Update
GREEN BUILDING EDITORIAL.........................28-29
POLCO Survey
What is HERS?
NEW MEMBER WELCOME ................................... 7
ROCHESTER BUILDING PERMITS........................30
September New Members
PPP LOAN CLA.................................................... 8
August 2020
BYRON BUILDING PERMITS................................30
Webinar
August 2020
KNOW YOUR VOTE – ...........................................9
SEMR HISTORICAL OVERVIEW............................31
City Council Candidate Forum
SPORTING CLAYS.........................................10-13
August 2020
OLMSTED BUILDING PERMITS ...........................31
Registration Information
August 2020
40 BELOW VOLUNTEER OPPORTUNITY.............. 14
NAHB EYE ON HOUSING.....................................34
Clothing Drive/Food Shelf
MEMBERSHIP DUES...........................................16
A New Way to Pay!
Home Purchasing Reaches Highest Level in Over a Decade
4 | SEPTEMBER - OCTOBER 2020
SUNDAY
OCTOBER 2020
MONDAY
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TUESDAY
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12:00 PM Government Affairs Committee Meeting
8:00 AM Remodelers Council Executive Meeting 11:30 AM Executive Committee Meeting
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3:30 PM Builders Exchange Board of Trustees Meeting
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WEDNESDAY
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THURSDAY
7 7:30 AM (WEBINAR) COMMERCIAL BUILDERS COUNCIL
FRIDAY
SATURDAY
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3:00 PM (WEBINAR) PPP LOAN UPDATE WITH CLA
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3:00 PM 4:30 PM 7:30 AM RAB Board Meeting 40 Below Executive Membership Meeting Committee Meeting
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11:30 AM 7:30 AM 12:00 PM 11:30 AM Fashion Show Green Building Ambassadors Community Committee Meeting Committee Meeting Committee Meeting Relations Committee Meeting
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11:30 AM 12:00 PM 3:00 PM Home Show Education Development Committee Meeting Committee Meeting Services Advisory Committee Meeting
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5 | FOUNDATIONS NEWSLTR
FROM THE PRESIDENT Ahhh, fall is upon us! I went to the North Shore for a mini vacation last weekend. It was a welcome refresh after a gorgeous summer. We spent time admiring the colorful fall trees, hiking, and golfing. I found that a solid break from the reality of my life in Rochester was just the cleanse I needed to come back with a clear mind ready to hit the ground running in all facets of my life. Have you done any resets or refreshes lately? Use the turning of the seasons as an opportunity to declutter and tidy up your mind. We have one quarter left of 2020, which is just enough time to set new goals and achieve them by year end. The Rochester Area Builders Association has been busy in the last month. We were fortunate enough to host the Fall Showcase of Homes, which featured 7 developments plus 14 homes that were recently built for consumers to view in person with added safety measures. They are now also available virtually. The 2020 Fall Showcase also provided judging of the homes in one of four divisions. Congratulations to the 2020 Winners: Division 1 between $700,000 & $1,150,000 #8
Distinguished Homes by Mitch Hagen
Division 2 between $500,000 & $699,999 #7 Chris Fritsch Custom Homes Division 3 between $300,000 & $499,999 #20 Countryside Builders Division 4 between $220,000 & $299,999 #10 DeWitz Home Builders In addition, the Remodelers Tour also took place with 9 entries. The homes were all available to be toured virtually, along with 4 that could be viewed in person.
Participating in these events is a wonderful way to show off the craftsmanship your business offers, as well as direct customers to reliable and trustworthy construction professionals. I want to thank everyone that was involved with both events. Your time and commitment to promote your hard work does not go unnoticed. Our young professionals’ group, 40 Below, has historically contributed to the community of Rochester through a service project. Last year the group constructed a bus shelter for a community north of town and this year they chose to impact our community by spending time volunteering at Channel One Food Bank. They are also hosting a clothing drive for the Salvation Army beginning in October. This is a chance to go through your closet and consider donating clothes that will go to good use at the Salvation Army’s Homeless Shelter. They are seeking outwear, everyday clothing, new socks, and new underwear. The upcoming months are going to be frigid and 40 Below has created a convenient way to contribute to the less fortunate in our community. Speaking of good will, I would like to recognize each and every one of our members for contributing to our community in a positive way. Last month, the association made the decision to contribute to the early education of the trades industry by donating tools to be used in the middle school woods program at Kasson-Mantorville. Kasson-Mantorville has been a long time participant and supporter of introducing our youth to the trades and this is a generous gesture by the association to ensure that students for years to come will have the chance to find a valuable skill that they enjoy doing, such as woodworking. It is imperative that we instill a spark of interest and curiosity in our youth when it comes to engaging in the trades. The future of our industry lies within their hands and I am so proud of our
Alissa Moe President Rochester Area Builders, Inc
membership for contributing to the cause. If you are interested in hosting a virtual job shadow, please reach out to Rebekah, John or myself to coordinate. Thank you again for adapting to the challenges and changes that 2020 has presented. Our membership is strong with a retention rate holding just below 90%. We hope to continue to bring value to our members, even if we must be at a distance for now. I appreciate all that you do for our community and for each other. I am so proud to say I am affiliated with this association.
Take care,
Alissa Moe Bremer Bank 2020 RAB President
6 | SEPTEMBER - OCTOBER 2020
ROCHESTER AREA BUILDERS, INC.
MEMBERSHIP REPORT AUGUST 2020
MEMBERSHIP TOTAL: 457 RETENTION RATE: 88.7 As of August 31, 2020 ONE TO FOUR YEARS American Turf Technicians....................................... 2019 Exclusive Home Builders & Remodelers............... 2019 Guaranteed Rate Inc.................................................. 2018 Hallmark Building Supplies, Inc.............................. 2018 Schad Tracy Signs..................................................... 2018 Greg Wellik Construction......................................... 2017 Schwab Construction Services................................ 2017 H&H Company of Rochester, LLC............................ 2016 ICC Restoration & Cleaning Services..................... 2016
FIVE TO NINE YEARS Frattalone Companies, Inc..................................................... 2015 Meyer Borgman Johnson, Inc............................................... 2015 CLA................................................................................................ 2014 Distinguished Homes by Mitch Hagen, LLC...................... 2014 LVC Companies, Inc................................................................. 2014 Pace International.................................................................... 2014 Rochester Area Foundation................................................... 2013 City of Chatfield......................................................................... 2012 Kraus-Anderson Construction.............................................. 2012 Minnwest Bank.......................................................................... 2011
TEN TO 19 YEARS Great River Overhead Door................................................... 2007 Otis Custom Homes, LLC........................................................ 2006 WA Insurance............................................................................ 2006 Tradesmen International........................................................ 2005 Morris Concrete, Inc................................................................. 2004 A&A Electric & Underground, Inc........................................ 2003 Advanced Disposal................................................................... 2002 Knutson Construction Services............................................ 2002
20 YEARS & MORE Ferguson Enterprises............................................... 1998 Reliable Contractors, Inc.......................................... 1998 Beyond Kitchens........................................................ 1995 Jeff Hinkle Custom Homes, Inc............................... 1994 FASTSIGNS................................................................. 1991 Marvin......................................................................... 1987 Townsquare Media Rochester................................. 1983 Hayfield Window & Door Company......................... 1981 Brogan Heating & Air Conditioning......................... 1980 Energy Products & Design, Inc................................ 1980 Benike Construction.................................................. 1979 Pella Windows & Doors............................................ 1978
ESCALATING LUMBER PRICES HAMPER HOME OWNER DREAMS Filed in Advocacy, Trade on September 2, 2020
Lumber prices have skyrocketed since mid-April, rising 130% and increasing the cost of a single-family home by more than $16,000. NAHB continues to advocate for increased production to ease the supply shortage and engaging Canada in trade discussions to remove the tariffs on Canadian lumber shipments. But solutions may not come fast enough for prospective home owners who now find themselves scrambling to find alternatives amidst these skyrocketing prices. John and Teri Goldsmith began the process for building their retirement home in Eastern Tennessee, outside of Knoxville, in February 2020. Their plans were quickly put on hold, however, as the COVID-19 pandemic swept the country because they were afraid they would not be able to sell their current home. As the market began to pick up, so did the Goldsmiths’ hopes of building their dream retirement home. After successfully selling their home at the end of July, the couple settled into a rental property and quickly got to work. Having secured a contractor, qualified for a construction loan and received approval from the architectural committee at their property owners’ association (POA), they were ready to break ground in early October. On Aug. 31, however, the Goldsmiths were faced with yet another challenge. They received an unexpected call from their builder, who — while pricing another project — regretfully informed them that the price of lumber had gone up 100% since the last time he had priced it for them. Both the Goldsmiths and the builder were blindsided by the exponential cost increases, which may now make it impossible for them to complete the process. John and Teri have begun to research alternatives, including different building
methods that may use less materials. But they’re concerned the price increases in lumber have expanded to other building materials as well. With no end in sight to the price increases, waiting also becomes a challenge, as the couple is bound to the construction timeline set by the POA, which requires the Goldsmiths to break ground within 45 days of receiving approval and one year to complete the project or face penalties. The Goldsmiths have been working hard with their contractor on a Plan B because they have already invested $15,000 in permit fees and $10,000 in contractor deposits. This “discovery phase,” as John called it, has made planning difficult, as there are still many unknowns out there. But they’re hoping there is light at the end of the tunnel. Share Your Lumber Story NAHB would like to hear how rising lumber prices, and the limited availability of lumber, are affecting your business and the impact on housing affordability. For example, missed closing opportunities, increased costs, buyers being priced out of the market, etc. This will help us further illustrate to the Administration and Congress why a plan to address the lumber crisis is urgently needed. Share your story here.
7 | FOUNDATIONS NEWSLTR
WELCOME NEW RAB MEMBERS SEPTEMBER 2020
HEARTLAND GUN CLUB & RANGE
PREMIERE ARTISAN DESIGN & BUILD
GREG MOORE
DANIEL FITZPATRICK
Gun Range (651) 242-2064 heartlandgunclubs.com
Builder/Developer (507) 269-8844
COMMUNITY INPUT SURVEY - SUSTAINABILITY & RESILIENCY ACTION PLAN ~3 min survey Expires on 10/10/2020 The City of Rochester has created a Sustainability and Resiliency Task Force, a diverse group of community members, to help develop and implement a Sustainability and Resiliency Action Plan. Social equity, environmental stewardship and economic responsibility are foundational principles to the City’s work and key pieces to achieving sustainability. They are also an important reason the City is ensuring Rochester residents have a voice in guiding this plan. In order to uncover the needs of community members as they relate to this plan, we have created this survey and ask that you reflect on these questions from your perspective as a member of Rochester’s community. Your time and input is greatly appreciated and will guide the work of this plan. Click HERE to complete this survey by 10/10/2020 If you are interested in signing up for a virtual community listening session (done via Microsoft Teams or Zoom), use the link below: https://www.signupgenius.com/go/9040b48aba82ba1fa7-dedicated
8 | SEPTEMBER - OCTOBER 2020
WEBINAR PAYCHECK PROTECTION PROGRAM: LOAN FORGIVENESS CLA will provide the basics of PPP Forgiveness so you can understand your options and make decisions that are right for you. Thursday October 8th 3:00 PM FREE TO ATTEND Presenters: Linda Minar, BizOps Chief Financial Officer Lisa Rucker, CPA; Tax Director Paul Alberts, MBA, CPA, CCIFP; Principal, Construction REGISTER HERE REGISTRATION REQUIRED
9 | FOUNDATIONS NEWSLTR
Rochester City Council Candidate Forum Hosted by:
Dates & Times Are Coming Soon!
We will be having more Virtual Town Hall meetings with Rochester City Council Candidates by utilizing GoToWebinar. This will be an opportunity to learn about the candidates and hear their thoughts on industry-related topics.
10 | SEPTEMBER - OCTOBER 2020
11 | FOUNDATIONS NEWSLTR
12 | SEPTEMBER - OCTOBER 2020
13 | FOUNDATIONS NEWSLTR
14 | SEPTEMBER - OCTOBER 2020
40 Below Clothing Drive RAB
FORTY o
BEL W CONNECTING. BUILDING. ENGAGING.
40 Below is hosting a clothing drive in partnership with Salvation Army to be held October 16-25 in conjunction with Rochester Spirit Days.
Pillar Projects which include addressing Hunger & Homelessness, Community Service, Fellowship & Companionship. As you are going through your closets this fall, please consider donating the following items: • Outerwear: Coats, mittens, hats (adults & children) • Everyday clothing (adults & children)
What is Spirit Days? It is ten days of service in Rochester with events and encouragement to promote unity in our community. Local groups, businesses, organizations and faith communities are invited to contribute to the Spirit Days
• Socks - NEW (adults) • Underwear - NEW (adults) A drop-off bin will be located in Rochester Area Builders parking lot during the drive.
Photos from 40 Below volunteering at Channel One Food Bank FORTY
RAB
Thank you to our 40 Below members from Think Bank (Sarah Franzen, Rebecca Sell, Brent Picker) and Sterling State Bank (Annie Douangdy, Jen Murillo, Ann Sand) for volunteering at Channel One on September 23rd and 25th!
BELoW CONNECTING. BUILDING. ENGAGING.
15 | FOUNDATIONS NEWSLTR
Make your new home your dream home. CONTACT OUR REAL ESTATE LENDERS TODAY!
CRYSTAL HUGHLEY
ANDREA EICKHOFF
Rochester Location 975 34th Ave NW (507) 424-1571
Stewartville Location 1960 1st Ave NE (507) 504-1070
crystal.hughley@bankononb.com
andrea.eickhoff@bankononb.com
| BankonONB.com |
16 | SEPTEMBER - OCTOBER 2020
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
17 | FOUNDATIONS NEWSLTR
Consumer Confidence Rebounds Strongly in September BY FAN-YU KUO on SEPTEMBER 29, 2020 After hitting a 6-year low last month, consumer confidence bounced back in September, as consumers were more upbeat on outlook for economy and the job market. The Consumer Confidence Index, reported by the Conference Board, rose 15.5 points from 86.3 to 101.8 in September, the highest level since March 2020 and the largest monthly gain since April 2003. The Present Situation Index jumped 12.7 points from 85.8 to 98.5, and the Expectation Situation Index increased 17.4 points from 86.6 to 104, almost back to February level.
assessment of the labor market was also favorable. The share of respondents reporting that jobs were “plentiful” increased by 1.5 percentage points, while those saw jobs as “hard to get” decreased by 3.6 percentage points. Consumers were optimistic about the short-term outlook. The share of respondents expecting business conditions to improve increased from 29.8% to 37.1%, while those expecting business conditions to deteriorate fell from 20.7% to 15.8%. Similarly, expectations of employment over the next six
below pre-pandemic levels and the Present Situation Index suggested that current economic conditions remained weak. The Conference Board also reported the share of respondents planning to buy a home within six months. The share of respondents planning to buy a home slightly rose to 6.4% in September. The share of respondents planning to buy a newly constructed home increased to 1.4%, and for those who planning to buy an existing home remained at 3%.
Consumers’ assessment of current business conditions improved in September. The shares of respondents rating business conditions “good” remained rose by 2.3 percentage point to 18.3%, while those claiming business conditions “bad” fell by 5.9 percentage points to 37.4%. Meanwhile, consumers’
months were favorable. The share of respondents expecting “more jobs” rose by 3.2 percentage points to 33.1%, while those anticipating “fewer jobs” declined by 5.6 percentage points to 15.6%. Despite the overall improvement, consumer confidence still remained
18 | SEPTEMBER - OCTOBER 2020
Distinguished Homes by Mitch Hagen, LLC 921 BRIDGEFORD PL NE -- BYRON Subdivision: Somerby Golf Community VILLA / PATIO HOME
AMENITIES
• large windows • great views • hardwood floors • open floor plan • lower level bar • covered screened porch • open deck • near 18th green • Exterior Material - LP SmartSide, Stone Total Square Footage (Not Including Garage).......................................... 3786 Finished Square Footage (Not Including Garage).................................... 3786 Garage Square Footage............................................................................... 907 Number of Bedrooms.................................................................................... 4 Number of Baths............................................................................................3 Luxurious Bridgeford Golf Villas offer the best in trending executive finishes with customized details throughout. Convenient main floor living with finished lower level, covered screen porch and open deck, walk-in wine pantry with a walk up bar. Superior XI foundation system with zero step entry. Amazing views of the Somerby countryside situated on 18th hole of Somerby Golf Club.
19 | FOUNDATIONS NEWSLTR
Chris Fritsch Custom Homes, LLC 913 SOMERBY PKWY NE -- BYRON Subdivision: Somerby Golf Community VILLA / PATIO HOME
AMENITIES
• zero-entry • custom built-ins • Cambria countertops • wet bar & wine cellar • covered deck • heated garage • Exterior Material - Stone, LP SmartSide Total Square Footage (Not Including Garage) 3290 Finished Square Footage (Not Including Garage).................................... 3115 Garage Square Footage............................................................................... 805 Number of Bedrooms.................................................................................... 4 Number of Baths............................................................................................3
The newest Bridgeford luxury detached villa that features impressive finishes including Cambria countertops throughout, zero entry, main floor living with a finished walkout lower level, and a heated 3-car garage. Enjoy maintenance free living at its best and experience all the wonderful amenities that Somerby Golf Community has to offer. A must see!
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20 | SEPTEMBER - OCTOBER 2020
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Countryside Builders, LLC 2243 GLADY LN NE -- ROCHESTER Subdivision: Northern Heights North RAMBLER / RANCH HOME
AMENITIES
• home offices • cul-de-sac • custom cabinets w/ granite • beamed vaulted ceilings • walkout level finished • master walk-in tiled shower • Exterior Material - Vinyl, Stone Total Square Footage (Not Including Garage).......................................... 3156 Finished Square Footage (Not Including Garage).................................... 3075 Garage Square Footage............................................................................... 803 Number of Bedrooms.................................................................................... 5 Number of Baths............................................................................................3 Perfect dual home office space. Walkout home! 3 main floor bedrooms plus 2 more and flex room on lower level. French doors to office/den. Tastefully designed custom kitchen, granite island and corner pantry. Decorator beams, transom windows and 3-pane patio door enhance the beauty of this home. Ambiance lighting in master suite plus walk-in shower. Come see Quality!!!
21 | FOUNDATIONS NEWSLTR
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DeWitz Home Builders, Inc. 6044 SANDSTONE ST NW -- ROCHESTER Subdivision: Pebble Creek RAMBLER / RANCH HOME
AMENITIES
• alley • 2-car garage • main floor laundry • kitchen cherry cabinets • Exterior Material - Vinyl Total Square Footage (Not Including Garage) 3290 Finished Square Footage (Not Including Garage).................................... 2212 Garage Square Footage............................................................................... 1106 Number of Bedrooms.................................................................................... 3 Number of Baths............................................................................................3
Affordable single family home on alley with 2-car rear attached garage. Main floor laundry, vaulted ceilings, painted trim, owner’s suite with walk-in closet and private bath. Kitchen with cherry cabinets, pantry and center island, patio off dining room. Room to expand in lower level. Perfect alterative to townhome living. No association fees!
22 | SEPTEMBER - OCTOBER 2020
ROCHESTER AREA BUILDERS HOME SHOW 42 Annual nd
BOOTH REGISTRATION IS NOW OPEN! CHECK OUT OUT THE MAP HERE
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
23 | FOUNDATIONS NEWSLTR
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
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 • 800-755-0055 www.altra.org Contact Altra for more information. Equal Housing Lender. Federally insured by NCUA.
24 | SEPTEMBER - OCTOBER 2020
25 | FOUNDATIONS NEWSLTR
COVID-19 Impacts Apartment and Condominium Absorption Rates BY CARMEL FORD on SEPTEMBER 22, 2020 Data from the U.S. Census Bureau’s Survey of Market Absorption (SOMA) show that the absorption rate of unfurnished, unsubsidized apartments (the share rented out in the first three months following completion) fell to 45 percent in the first quarter of 2020 (from 53 percent in the first quarter of 2019) (Figure 1).This is the lowest absorption rate on record for the first quarter since at least 1986 (the series started in the 1970s, but earlier data is not accessible). Undoubtedly, the decline in the absorption rate is related to the emergence of COVID-19 in the US.
The number of apartments completed also fell, from 66,460 units in the first quarter of 2019 to 59,790 units in the first quarter of 2020. The median asking rent
price for these apartments, however, was virtually unchanged at $1,587 (from $1,600 in the first quarter of 2019). The SOMA also has data on condominium completions and their absorption (Figure 2). Like the apartment absorption rate, the condominium absorption rate fell, going from 73 percent in the first quarter of 2019 to 67 percent in the first quarter of 2020. Condominium completions were also lower at 3,060 units (compared to 4,484 units in the first quarter of 2019). Meanwhile, the median asking sales price of condominiums jumped significantly to $778,800 in the first quarter of 2020, approximately 26 percent higher
than the asking sales price of $616,600 in the first quarter of 2019. In conclusion, the SOMA data show that the absorption rates for both apartments and condominiums fell for units completed in the first quarter of 2020, indicating that people refrained from leasing and buying as the coronavirus pandemic hit. The next SOMA release will show if the impact was sustained into the summer.
26 | SEPTEMBER - OCTOBER 2020
INDEPENDENT LITTER CLEAN UPS ENCOURAGED, 2020 LITTER BIT BETTER CANCELED Stephanie Hatzenbihler, Environmental Education Specialist Public Works Department
With the health and safety of community members as a top priority, the Litter Bit Better planning team has decided to cancel the 2020 event. The planning team with representatives from R Neighbors, Olmsted County Environmental Resources, and the City of Rochester, are encouraging residents to find ways to do smaller, independent litter clean ups in your neighborhood. • Litter Walks: Bring a small trash bag on any walks you take and pick up any litter along the way. If your dog comes along, be sure to clean up their waste too. • Prevent litter at home: Place all trash in a plastic bag and tie the bag shut before throwing it away. Do not overload your garbage and recycling containers and make sure each container cover closes completely. • Recycle: Learn what can be recycled with your curbside hauler or at the Olmsted County Recycling Center Plus. All items should be clean, dry, and empty and then placed loosely in your recycling cart. • Report illegal garbage dumping, especially large items or piles of garbage o Within the City of Rochester, call Rochester Community Development at 507-328-2950. o Outside of Rochester’s city limits, call the Olmsted County Planning Department at 507-328-7100. • Adopt-a-Drain: Register for www.adopt-a-drain.org and clean up debris on storm drains in your neighborhood. • Keep construction site cleans: The Minnesota Pollution Control Agency’s Construction Stormwater Permit overview states: “Pollution prevention management measures include the storage, handling and disposal of construction products, materials and wastes to minimize exposure to stormwater and prevent polluted runoff.” Proper waste management will not only help you comply with your permit, it improves environmental quality and shows community pride.
27 | FOUNDATIONS NEWSLTR
It’s important to remember that there are still many ways to care for our environment while practicing social distancing. Visit www. rochesterstormwater.com and www.RNeighbors. org for more ideas. Thank you so much for being understanding with our decision. It was tough because we know how dedicated our volunteers are, but we want to keep everyone safe.
For more information on this topic contact: Stephanie Hatzenbihler Public Works Department City of Rochester | 4001 West River Parkway NW, Suite 100 | Rochester MN 55901 Phone 507.328.2440 shatzenbihler@rochestermn.gov www.rochesterstormwater.com
28 | SEPTEMBER - OCTOBER 2020
29 | FOUNDATIONS NEWSLTR
30 | SEPTEMBER - OCTOBER 2020
ROCHESTER BUILDING PERMITS
AUGUST 2020
2011 2012 2013 2014 2015 2016 2017 2018
NEW RESIDENTIAL
2020
Single Family Dwelling
17
5,190,707
19
5,602,761
January
2
637,380
5
1,075,221
February
Townhome Dwelling
VALUATION 2019
2019 2020
VALUATION 3
6
19
11
20
25
15
19
6
17
8
20
15
14
19
15
20
16
5
13
24
32
29
28
30
31
44
25
27
32
Two-Family Houses
0
0
0
0
March
Manufactured Home
0
0
0
0
April
19
29
39
25
22
33
45
40
23
19
Multi-Family Bldgs (Units)
0
0
0
0
May
14
22
27
35
19
56
43
28
27
19
June
26
32
33
47
51
41
52
38
31
21
July
8
39
39
38
29
44
45
36
26
26
August
18
38
21
60
33
47
30
31
24
17
TOTAL
120
218
222
258
223
292 264
233
168
164
September
19
22
22
23
27
52
35
39
12
October
16
23
34
35
49
25
36
29
27
November
20
22
26
26
23
12
41
21
47
December
16
14
22
27
42
37
33
25
34
*total may differ been voided. TOTAL 191as permits 299 may 326 have369 369 418
429
347
289
EXISTING RESIDENTIAL Deck Addition
24
201,527
21
139,258
Room Addition
2
74,000
3
362,400
Porch Additions
2
80,000
1
35,000
Other Additions
1
18,000
3
28,500
Basement Finish
17
363,600
24
356,818
Alterations
48
580,760
58
612,748
Multi-Family Addition
0
0
0
0
Multi-Family Alterations
3
405,635
15
1,556,703
Assembly (Church)
0
0
0
0
Assembly (General)
0
0
0
0
Assembly (Restaurant/Bar)
0
0
1
2,300,000
Business
0
0
1
2,000,000
Education
0
0
0
0
Factory/Industrial
0
0
0
0
BUILDING PERMITS ISSUED TO DATE
Institution
0
0
0
0
Mercantile
0
0
0
0
Miscellaneous
0
0
0
0
Residential (Apartment)
0
0
0
0
Residential (Care/Assisted Living)
0
0
0
0
Residential (Care/Hotel/Motel)
1
11,660,444
0
0
Storage (General)
0
0
0
0
Storage (Parking Garage)
0
0
0
0
Storage (Warehouse)
0
0
0
0
Utility (General)
0
0
0
0
Utility (Private Garage)
0
0
0
0
164
*total may differ as permits may have been voided.
NEW COMMERCIAL
YEAR TO DATE STATISTICS
NO.
Addition
1
10,000
3
432,300
Alterations
8
4,705,626
24
5,207,197
Structural Shell
0
0
0
0
“White Box”
0
0
0
0
Interior Demolition Only
0
0
0
0
Other Phased Permits
0
0
1
340,000
OTHER CONSTRUCTION Business Signs
5
644,119
5
51,900
Advertising Signs
0
0
0
0
Footings & Foundations
0
0
1
110,000
Demolition
1
0
0
0
Information and downloads available at Rochester Building Safety Department’s website: https://www.rochestermn.gov/departments/building-safety/reports-building-permits/ building-permits-2020
NO.
2019 VALUATION
1249
$225,200,958
1444
$289,939,319
Single Family Dwelling
146
41,609,266
143
42,473,473
Multi-Family Buildings Total Units: 76
1
10,640,000
5
24,161,217
TRADE PERMITS ISSUED TO DATE
6390
$69,962,770
6719
$70,161,618
Electrical
2426
30,936,794
2723
31,133,988
Electrical (Temp. Service)
180
67,825
168
79,446
1764
20,895,878
1746
18,196,210
Mechanical (Gas Piping)
401
663,282
363
573,546
Mechanical (Fireplace)
194
836,965
202
908,246
Mechanical (Hydronic)
101
2,909,353
125
7,977,047
1324
13,652,943
1392
11,293,135
Mechanical (HVAC)
Plumbing
EXISTING COMMERCIAL
2020 VALUATION
TOTAL PERMITS YTD
7639
$295,163,728
8163
$360,100,937
JULY 2020
BYRON
BUILDING PERMITS
NEW RESIDENTIAL
NUMBER
VALUATION
12
2,040,000
4
985,080
Basement Finish
0
0
Deck Addition
0
0
Multi-Family Single Family Detached Existing Residential
31 | FOUNDATIONS NEWSLTR
OLMSTED COUNTY PERMITS YTD
2020
VALUATION
2019
VALUATION
Single Family-Detached Garage
5,093,672
15
4,033,539
VALUATION
1
422,867
2
886,284
Alterations
9
635,438
9
1,165,090
Re-roofing
2
8,250
0
0
9
327,419
11
314,542
34
0
49
0
135
1,645,179
125
865,337
81
1,096,911
63
457,172
417
18,689,428
376
$10,592,856
0
0
0
0
1,046,430
9
359,863
26
146,028
27
126,419
Pool, Retaining Wall, etc. Manufactured Homes
OTHER STRUCTURES
Deck Addition Alterations Garage Addition
5
237,157
10
905,569
71
1,082,810
47
574,403
1
9,612
3
52,113
MISCELLANEOUS PERMITS Mechanical
NEW COMMERCIAL/INDUSTRIAL Recreational
0
0
0
0
Church/Religious
0
0
0
0
Industrial/Warehouse
1
236,059
1
99,484
Service/Repair Station
0
0
0
0
Store/Restaurant
0
0
0
0
Nonresidential Building
0
0
0
0
VALUATION $0 PERMITS 0
2019
Addition
22
RESIDENTIAL
2019
VALUATION
COMMERCIAL/INDUSTRIAL
18
Single Family-Attached
2020
NEW RESIDENTIAL
AUGUST 2020
Plumbing TOTAL PERMITS
OLMSTED COUNTY PERMITS AUGUST
2020
VALUATION $407,467 PERMITS 4
EYOTA
VALUATION $165,553 PERMITS 19
VALUATION $1,208,103 PERMITS 17
VALUATION $14,800 PERMITS 27
MARION
VALUATION $368,900 PERMITS 14
VALUATION $0 PERMITS 0
ORONOCO TWP
VALUATION $2,002,080 PERMITS 38
VALUATION $103,676 PERMITS 2
QUINCY
VALUATION $536,992 PERMITS 18
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 8-2017
8-2018
8-2019
8-2020
8-2017
8-2018
8-2019
8-2020
8-2017
8-2018
8-2019
8-2020
8-2017
8-2018
8-2019
8-2020
8-2017
8-2018
8-2019
8-2020
8-2017
8-2018
8-2019
8-2020
8-2017
8-2018
8-2019
8-2020
8-2017
8-2018
8-2019
8-2020
8-2017
8-2018
8-2019
8-2020
8-2017
8-2018
8-2019
8-2020
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
8-2019
8-2020
Percent Change
YTD 2019 YTD 2020
732
702
- 4.1%
5,368
4,915
- 8.4%
661
699
+ 5.7%
4,428
4,638
+ 4.7%
734
644
- 12.3%
4,137
4,154
+ 0.4%
48
46
- 4.2%
57
56
- 1.8%
$211,000
$232,000
+ 10.0%
$205,000
$220,000
+ 7.3%
$234,919
$249,483
+ 6.2%
$228,547
$243,695
+ 6.6%
97.3%
98.6%
+ 1.3%
97.1%
97.5%
+ 0.4%
195
188
- 3.6%
201
198
- 1.5%
1,547
971
- 37.2%
--
--
--
3.0
1.8
- 40.0%
--
--
--
Percent Change
Current as of September 4, 2020. All data from Southeast Minnesota REALTORS® and NorthstarMLS®. Provided by the Minnesota Association of REALTORS®. Report © 2020 ShowingTime. | 2
32 | SEPTEMBER - OCTOBER 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.
33 | FOUNDATIONS NEWSLTR
34 | SEPTEMBER - OCTOBER 2020
Home Purchasing Reaches Highest Level in Over a Decade
BY LITIC MURALI on SEPTEMBER 23, 2020
For the week ending September 18, 2020, the Mortgage Bankers Association’s latest Weekly Application Survey showed a jump in application activity, both in purchasing and refinancing, as its Market Composite Index increased 6.8% from the previous week on a seasonally adjusted basis. Most notably, the Purchasing Activity reached its highest level since January 2009, when it was only 5.3% higher. The refinancing activity level increased by 8.8% from the previous week, despite an increase in the MBA’s tracked contract rate of the 30-year fixed-rate mortgage by 3 basis points to 3.1%, still a few basis points above the record low rate reached at the beginning of August. The solid level of home buyers reflects a robust housing market that has proven to be resilient in the face of the current economic downturn, driven by some changes in the geography of demand.
There were strong year-over-year gains this week, as well, as shown in the figure above. On an unadjusted basis, purchasing was 25% above what it was than the same week one year ago and refinancing was 86% above what it was the same week one year ago. Despite the strong, positive year-over-year gains in refinancing, the momentum evident at the beginning of the year has significantly slowed, with year-over-year gains less than what they were at the end of 2019. The refinance share of mortgage activity increased to 64.3 percent of total applications from 62.8 percent the previous week. The adjustablerate mortgage (ARM) share of activity decreased to 2.2 percent of total applications.
35 | FOUNDATIONS NEWSLTR
Members Save Millions Put Your NAHB Membership to Work Now. Money-saving discounts that benefit you, your business and your family
nahb.org/Savings
36 | SEPTEMBER - OCTOBER 2020
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Development, Inc. (RAEDI) + Rochester Area Foundation + Rochester Asphalt & Concrete, Inc. + Rochester Building Safety Department + Rochester Concrete Products, LLC + Rochester Plumbing & Heating/Roto Rooter + Rochester Public Utilities + Rochester Public Works + Rochester Ready Mix Concrete Co + Rochester Restoration & Remediation + Rochester Title & Escrow Company, Inc. + IRory's + RSM US of LLPthis + RSP Architects + Ryan & Grinde, Ltd. + have Home read,Improvement, understand and agree toLLC the terms contract. Ryan Electric, Inc. + Ryan Windows & Siding, Inc. + RyMark Construction, LLC + S&S Overhead Door, Inc. + Sargent's Landscape Nursery, Inc. + Schoeppner, Inc. + Schwab, LLC + Schwickert's Tecta America, LLC + Seavey Builders, Inc. + Dan Severson Builders, Inc. + Nick Severson Construction, LLC + Shanahan Building & Remodeling, LLC + Sherwin Williams Company + Short Elliott Hendrickson Inc. (SEH) + Sign Here, Inc. + S.L. Contracting, Inc. + Smart Home Innovations & Engineering, Inc. + Smart-HR + Smith Schafer & Associates, Ltd. + Solar Connection, Inc. + Somerby Golf Community + Sorenson's Appliance & TV, Inc. + Southeastern MN Multi-County HRA + Space Concepts, Inc. + Greg Speedling Contracting, Inc. + Spring Grove EDA + Spring Valley Overhead Door, Inc. + City of Spring Valley + St. Charles EDA + Stadsvold's Lawn & Landscape + Stantec + Sterling State Bank + Stevens Heating, Inc. + Stewartville EDA + Stier Construction, Inc. + Stone Expressions + StoneBridge Builders, LLC + Stonybrook Builders of Rochester, Inc. + Struve's Paint and Decorating + Robert Suk Law Office, PLLC + Summit Custom Homes, LLC + Summit Fire Protection Company + Sunbelt Rentals + Superior Mechanical + Superior Phone: (507) Attn: Shelly Water Conditioning + Craig Swanson Builders, Inc. + Bahlmann Swenke Ims Contracting, LLC 282-7698 + Kenny Sylvester Construction, LLC + Synergy Products + Tamarack Materials, Inc.108 + Thatcher Pools & Spas, Thiemann (507) Construction, Inc. + Thimijan Custom Homes, LLC + Fax: 282-6351 Elton Hills Ln Inc. 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. Waugh Construction, LLC + Weis Builders, Inc. + Greg Wellik Construction + Wells Concrete + Wells Fargo Bank Minnesota NA + Wells Fargo Home Mortgage + Wells Fargo Home Mortgage East + Wendland Utz + Werner Electric + West Bank + West Concord EDA + Jim Whiting Nursery & Garden Center, Inc. + WHKS & Company + Widseth Smith Nolting + Wildwood Sports n Tibor & Maves, Ltd. + Wintrust Mortgage + Wobig Construction, LLC + Women Communications, LLC + Workforce Development, Inc. + Wright Homes, Inc. + WSB & Associates, Inc. + WT gy + XRG Concepts, LLC + Your Home Improvement Company + Zen Custom Homes + Zillgitt Civil Design + Zimprovements = RAB
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