JULY - AUGUST 2021
September November December October August June July 2021 2021 2021 2021 2021 2021
ROCHESTER AREA BUILDERS, INC.
JULY 27
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HOME SHOW BOOTH REGISTRATION INFORMATION
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SPORTING CLAYS TEAM REGISTRATION INFORMATION
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EYE ON HOUSING REMODELING INDUSTRY CONFIDENCE
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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.
2 | JULY - AUGUST 2021
STAFF EXECUTIVE DIRECTOR John Eischen, John@RochesterAreaBuilders.com STAFF
Online Permit Submission
UPDATE!
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, Website
Rebekah Fierst, Rebekah@RochesterAreaBuilders.com Ambassadors, Awards, Builders, Bags & Brews, Commercial Builders Council, Community Relations, Education, Membership, Fashion Show, Program, Remodelers Council, Executive & Remodelers Tour, 40 Below GOVERNMENT & PUBLIC AFFAIRS CONSULTANT
Rick Dold, Rick@GodwinDold.com
BOARD OF DIRECTORS PRESIDENT
Luke Stier, Stier Construction, Inc. VICE PRESIDENT Becky Holmen, Haley Lighting SECRETARY
Jennifer Mitchell, Edina Realty TREASURER
Jesse Buhl, MedCity Consulting PAST PRESIDENT
Alissa Moe, Bremer Bank DIRECTORS
Adam Giannini, Meyer Borgman Johnson Jennifer Lawver, ERH Developing, Inc. Tom Leimer, Knutson Construction Jason Scrimshaw, Kimley-Horn & Associates, Inc. Kevin Reckinger, Bricewood, LLC Charlie Sweeney, Kraus-Anderson Construction Melissa Barbour, TLS Companies, LLC Megan Gallagher, Solar Connection
BUILDERS EXCHANGE COUNCIL CHAIR
Kurt Hoeger, United Rentals
COMMERCIAL BUILDERS COUNCIL CHAIR Jim Oeltjenbruns, F&M Community Bank DEVELOPMENT COUNCIL CHAIR Hal Henderson, HGA Architects & Engineers
When submitting your permit online doing the following will greatly improve your chances of acceptance, speedy processing, and approval. 1. Use your PDF software to optimize your plan before submitting a.
Optimizing the plan allows the city departments to more effectively process your submittal within the system.
b.
Optimizing the plan will also improve the City’s ability to efficiently review your plans.
2. Only submit one Drawing per permit that includes all building and site plan information a.
The drawing should include the mechanical and plumbing information.
b.
Any other plan information you submit should be submitted as additional information and not as a drawing.
c.
You are allowed as much information as you need for your submittal, but each submittal should only have one drawing.
d.
Submitting more than one drawing may cause the rejection of your submittal.
e.
In the event your submittal is not rejected with more than one drawing, having more than one drawing results in multiple approvals within each which delays the process and approval of your application.
Use the link below to check the status of permits filed with the City of Rochester Agency Counter: https://rochestermn.agencycounter.com/m/home
REMODELERS COUNCIL CHAIR
Kailee Klevan, Beyond Kitchens 40 BELOW CHAIR Katie Olson, Kimley-Horn & Associates, Inc. NATIONAL LIFE DIRECTORS
Steve Buss, Cornerstone Builders & Real Estate, Inc. NATIONAL DIRECTORS Dana Hlebichuk, Widseth
Levi Kaiser, Benike Construction (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 Dan Severson, Dan Severson Builders, Inc., Kenneth Bush, Bush Companies
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.
3 | FOUNDATIONS NEWSLTR
8 16
11 UPDATE..............................................................2
Online permit update
RAB CALENDAR...................................................4
21
28
REMODELERS TOUR ..........................................16
Registration information
SHOWCASE/TOUR MAGAZINE ..........................17
August 2021
Advertising information
2021 CALENDAR..................................................5
NAHB EYE ON HOUSING.....................................18
LETTER FROM RAB PRESIDENT............................6
Luke Stier, Stier Construction, 2021 RAB President
SPORTING CLAY SHOOT ......................................7
Save the Date!
MEMBERSHIP REPORT.........................................7
June 2021
NEW MEMBER WELCOME.....................................7
July 2021
MEMBER APPRECIATION NIGHT...........................8
Registration Information
BUILDERS, BAGS & BREWS................................11
Team Registration Deadline
HOME SHOW.....................................................12
Booth Registration Information
SPORTING CLAY SHOOT.....................................13
Registration Information
FALL SHOWCASE ..............................................16
Registration information
Remodeling Industry Confidence Improves Year Over Year
STUDS, STRUTS & STILETTOS............................21
Design & Sponsor Forms Available
NAHB EYE ON HOUSING.....................................24
Crosswinds for Construction Job Openings
NAHB EYE ON HOUSING.....................................28
What Areas Grew the Most? Single-Family Home Building in 2020
BUILDING PERMITS...........................................30
Rochester, Byron & Pine Island
OLMSTED BUILDING PERMITS ...........................31
June 2021
SEMR HISTORICAL OVERVIEW............................31 June 2021
NAHB EYE ON HOUSING.....................................33
Price of OSB Up More Than 500% Since January 2020
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Sunday
August 2021
Monday 1
Tuesday 2
8
15
4
Friday 5
7
12
13
14
19
20
21
26
27
28
12:00 PM Showcase Committee
11:30 AM Program Committee
11:30 AM Executive Committee
4:00 PM Commercial Builders Council General Meeting
*SHOWCASE/ TOUR MAGAZINE AD DEADLINE
10
16
17 7:30 AM Green Building Committee
*SSS DESIGN ENTRY DEADLINE
11 4:30 PM 40 Below Executive Committee
Saturday 6
8:00 AM Remodelers Council Exec.
3:00 PM Board Meeting
11:30 AM Fashion Show Committee
Thursday
3
9 3:30 PM Builders Exchange Board of Trustees
Wednesday
12:00 PM Sporting Clays Committee *HOME SHOW OPEN BOOTH REGISTRATION OPENS
18 12:00 PM Ambassadors Committee
7:30 AM Membership Committee *SHOWCASE/ TOUR ENTRY DEADLINE
22
23 11:30 AM Home Show Committee
29
24 12:00 PM Education Committee
30
25 3:00 PM Development Services Advisory Committee
11:30 AM Community Relations Committee
31 4:30 PM Networking Night Valor Mechanical & Tulip Tree Studios
MEETINGS ARE NOW BEING HELD IN PERSON UNLESS NOTIFIED DIFFERENTLY BY JOHN
5 | FOUNDATIONS NEWSLTR
JULY 5 Office Closed for Independence Day TBD NAHB Mid-Year Board Meeting – TBD 27 Member Appreciation Night @ Mayowood Stone Barn AUGUST 7 Builders, Bags & Brews @ Olmsted County Fairgrounds 31 Networking Night @ Tulip Tree Studios & Valor Mechanical SEPTEMBER 6 Office Closed – Labor Day 16 Sporting Clay Shoot 18 Youth Sporting Clay Shoot 18-19 Remodelers Tour 18-19, 25-26 Fall Showcase of Homes 28 General Membership Meeting @ TBD OCTOBER 14 Studs, Struts & Stilettos @ Mayo Civic Center 26 Networking Night @ Cambria NOVEMBER TBD Past Presidents Dinner 18 Celebration of Leaders Dinner 25-26 Office Closed – Thanksgiving Holiday DECEMBER 10 Holiday Party @ The Hilton 23-24 Office Closed – Christmas Holiday
FUTURE DATES International Builders Show RAB Home Show
February 8-10, 2022 – Orlando, FL February 11-13, 2022 – Mayo Civic Center
6 | JULY - AUGUST 2021
6 | FOUNDATIONS NEWSLTR
FROM THE PRESIDENT crisis in Minnesota, and this could undoubtedly be substantially beneficial in our efforts. If you know of any developers, builders, or someone invested in the building trades interested in this issue, please urge them to get involved and contact one of us or the housing coalition directly at 507-282-0203.
LUKE STIER President
Rochester Area Builders, Inc
RAB Members, at our last board of directors meeting, we had the privilege of hearing from the Rochester Housing Coalition about our housing crisis. They presented data compiled from the 2020 Maxfield study, which analyzed exactly what our community needs in terms of housing. As most of us know, we are currently facing many challenges in our local housing market. The future predictions are quite staggering (18,000 units are predicted to be needed in the next 10 years), and we are not on track to meet these future needs. We have the information on what housing is needed, now what we really need are solutions, ideas, and our members input on how to get these homes built affordably. It will take innovation and collaboration from our community and especially our members to help solve these housing challenges. We also have a terrific opportunity to take advantage of some grant money that is allocated to help with the housing
Who’s excited for the our first annual Builders, Bags, and Brews?! There’s still time to get a team together for BB&B. The last day to register is July 29th. If you don’t have a team, no problem- Join us anyway! There will be plenty to keep you amused while you cheer on your favorite team. All your summer entertainment needs are guaranteed to be met with yard games, a silent auction, live music, food trucks and local craft beer. What more do you need?! Studs, Struts & Stilletos: Lets pick up where we left off, and make this event even bigger this year! Wether you have an inventive mind or not, get involved and have fun with this! And do not forget proceeds go to a great cause. Reminder that the deadline to submit a design is August 5th, and event is October 14th. 2022 Home Show: You may have heard that we are now moving the entire show to the ballroom on the second floor. This was a collaborative decision and an overall better direction that should benefit our vendors and attendees. As this is a reset of the entire show, we will again be conducting a lottery for booth selection. The date of the lottery is 7/28/2021 beginning at 7:30 am. You will be notified of your time for booth selection in an email to follow next week. Now that our map is web-based and “live” you do
not need to travel to the office, but can call in to make your choice(s). The map will update as selections are made. Please let John know if you have any questions. Open booth registration opens on August 12th. Thank you for participating in the Home Show! Please join us for our annual Member Appreciation Night at Mayowood Stone Barn on July 27th. We’ll be recognizing new and current honorary members. We will also be voting on an update to our bylaws, and you can view these changes within Shellys’ E news update. Hors d’oeuvres and hosted craft beer will be provided, along with a cash bar. Do not miss this fantastic opportunity to catch up with others in the industry and meet new members! 2021 Fall Showcase/Remodelers Tour: The 2021 Fall Showcase of Homes features new homes, townhomes, and subdivisions, and the 2021 Remodelers Tour features recent home renovations. Together, they are featured in the Rochester Area Builders-produced digital print magazine which is the official program that includes details, descriptions, and photos for each home/subdivision. $100 deadline is July 29th, Advertising deadline is August 5th.
Luke Stier Stier Construction 2021 RAB President
7 | FOUNDATIONS NEWSLTR
ROCHESTER AREA BUILDERS, INC.
MEMBERSHIP REPORT June 2021 Membership Total: Retention rate:
405 88.3
WELCOME JULY 2021 MEMBER
COMMITTEE OPPORTUNITIES
As of June 30, 2021 As a member of Rochester Area Builders, you a have an opportunity to get involved in one of our many Committees. If you are interested in participating in one of the following listed below, please reach out to Shelly.
ONE TO FOUR YEARS Family Tradition Flooring...............................2018 Completely Clean.............................................2017 Kramer Contracting, LLC................................2017
FIVE TO NINE YEARS Minnesota 97.5 FM - KNXR........................................2016 The Pinske Edge............................................................2014 Cemstone Supply.........................................................2013
TEN TO 19 YEARS Hammer Homes, Inc....................................................2011 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 DMC Plumbing & Heating, Inc..................................2003
20 YEARS & MORE Design Studio B...............................................2001 Larson Siding & Windows..............................1986 Commercial Leasing Services.......................1984 Merit Contracting, Inc.....................................1982 Sargent’s Landscape Nursery, Inc................1977 Heartman Insurance.......................................1966
RAJEEB RATH
Accountant (507) 512-3803
supportingstrategies.com/rochester-mn
• Ambassadors • Community Relations • Education • Golf Outing • Green Building • Home Show • Membership & Retention • Program • Showcase • Sporting Clay Shoot
SAVE THE DATE Rochester Area Builders Sporting Clay Shoot SEPTEMBER 16, 2021
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MEMBER
APPRECIATION Tuesday, July 27th 4:30pm – 7:00pm Mayowood Stone Barn 3385 Mayowood Rd SW
Join us for Member Appreciation Night as we celebrate you, our members! We will be recognizing all Honorary Members that evening and introducing new additions to the group! Hors d'oeuvres and hosted craft beer provided, along with a cash bar. Thank you to Home Federal for sponsoring "Ale to the Queen" from LTS Brewing Company. Don't miss this great opportunity to catch up with others in the industry and meet new members. Free to attend, however, we ask that you register in advance.
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new Honorary MeMbers
Honorary MeMbers §
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David Kane ..................2021 Chris Colby ...................2021 Art Friedrich .................2021 Jan Blevens ...................2021 Greg Hird ......................2021 Jeff Broberg ..................2021 Mike Coats ...................2019 Carla Kilpatrick .............2018 Rory Lenton ..................2018 Jim Buchan ...................2016 Walt Pappas .................2015 Bob Vogt .......................2015 Tom Theis .....................2014 Bob Gill .........................2013 Dave Higgins .................2013 Sandy Friend ................2012 Wayne Ouellette ..........2012 Gary Zander .................2011 Bob DeWitz ..................2010 Jackie Hanson...............2009 Richard Hanson ............2009 Don Myers ....................2009 Sandy Buchan ...............2008 George Libera ...............2008 Don Hora ......................2007 Ken Steier .....................2006 Floyd Whipple ..............2006 Glyndon West...............2005
§ § § § §
§ §
§
§ §
†
† † † † † † † † † † † † † † † †
Sharon Thomas ............2004 Dale Fagerlind ..............2003 Dave Alexander ............2002 Dewey Day ...................2002 Roger Lubahn ...............2001 Don Kleist .....................1999 Don Soderberg .............1999 Gordy Bluhm ................1998 Arnie Jensen .................1998 Walt Cassel ...................1991 Arnie Bergler ................1990 Hersh Hoaglan ..............1990 Haven Hodge ................1990 Bill Dodge .....................1990 Henry Giese ..................1990 Stan Mohn....................1990 Mary Moylan ................1990 Don Sperry ...................1990 Ken Watkins .................1990 Reuben Wolfgram ........1990
§ Served as Association President † Deceased
10 | JULY - AUGUST 2021
11 | FOUNDATIONS NEWSLTR
BUILDERS, BAGS & BREWS DATE: Saturday, August 7th LOCATION: Graham Park Builders, Bags, & Brews is an annual community bags tournament and fundraiser for local non-profits. In 2021, funds raised will go towards Jeremiah Program. • LIVE MUSIC • CRAFT BEER • YARD GAMES • FOOD TRUCKS • SILENT AUCTION
Contact Rebekah for more information.
PRESENTED BY
FORTY
RAB
Team Registration NOW OPEN. Deadline: July 29th
o
BEL W CONNECTING. BUILDING. ENGAGING.
BENEFITING
HEADLINING SPONSOR
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ROCHESTER AREA BUILDERS HOME SHOW 43 Annual rd
FEBRUARY 4, 5, & 6, 2022
ALL BOOTHS ON ONE FLOOR! CHECK OUT THE 2022 HOME SHOW MAP
1. 2. 3. 4. 5.
Ease of entrance for a�endees, right off the skyway. Only one ball room door won’t be open (due to �cket booth), providing easy access to the exhibit space. One floor, one area. No need to worry about if a�endees saw all the exhibitors. New booth spaces in the Ball Room lobby area. Friday night ac�vity area and seminar areas more visible and integrated with the rest of the show.
BOOTH REGISTRATION OPENS FOR 2020 & 2021 HOME SHOW EXHIBITORS JULY 28TH. Your registra�on �me was emailed. If you have not recieved your �me, please contact Shelly.
13 | FOUNDATIONS NEWSLTR
Rochester Area Builders Sporting Clay Shoot
SAVE THE DATE September 16, 2021 REGISTRATION OPENS AUGUST 3RD 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
14 | JULY - AUGUST 2021
Notice of vacancy Apply to serve on a board or council Construction Codes Advisory Council The Construction Codes Advisory Council reviews laws, codes, rules, standards and licensing requirements related to building construction. Legislation was recently passed to include two additional positions on the council, representatives with expertise in, and engaged in, the energy conservation industry and building accessibility. Three seats are open for application:
• • •
public utility supplier energy conservation industry building accessibility
Apply to serve on the Construction Codes Advisory Council.
Board of Electricity The Board of Electricity adopts rules and amends the National Electrical Code, issues final interpretations and adopts rules to regulate electrical businesses and individual licensure and continued education. One seat is open for application: • electrical supplier in rural area Apply to serve on the Board of Electricity.
Board of High Pressure Piping The Board of High Pressure Piping adopts rules for the high pressure piping code for Minnesota, issues final interpretations and adopts rules to regulate high pressure piping licensure and registration. One seat is open for application: • high pressure piping master pipefitter – non-metro Apply to serve on the Board of High Pressure Piping.
Questions? •
Visit the Minnesota Secretary of State’s website for more information about boards and council positions in cluding how to apply and frequently asked questions.
•
View more information about the work of the boards and councils
15 | FOUNDATIONS NEWSLTR
REQUEST FOR PROPOSALS Residential Development Opportunity:
Roverud Park Neighborhood
About Spring Grove Spring Grove is a scenic town in Southeast Minnesota of approximately 1,300 people. Located along State Highway 44, Spring Grove has convenient access to Rochester, Decorah, and La Crosse, and the Mississippi River is only a short drive away. Despite its small size, Spring Grove boasts a number of amenities that many small towns seek, including a local grocery store, pharmacy, healthcare clinic, nursing home facilities, cinema, public aquatic center, several childcare options, an award-winning school district, and much more. The town features a robust business and non-profit presence, with a charming historic downtown, an expansive network of parks, and a high level of civic engagement and pride. With numerous opportunities for recreation and business development, Spring Grove is an ideal location for people from all walks of life to live, work, and play.
Overview of Development Opportunity Spring Grove is a town poised for growth. According to the City’s housing study completed in 2020, Spring Grove will need to add an additional 82 housing units by 2030 to accommodate the projected population growth. The City has identified the City-owned public works property overlooking scenic Roverud Park as a prime location for new housing development. This is due to several factors favorable to both the City and a potential developer: ● Utilities are already present on the property, reducing upfront cost to extend infrastructure ● The property is City-owned, so there are no third party land-owners to contend with ● The site is ideal for building small housing units, which have been identified as a critical need in Spring Grove’s tight real estate market as seniors age out of their homes and are looking to downsize while maintaining independence ● The site is located in a quiet, established residential area only a block from downtown, with lovely views of Roverud Park to the west and farmland to the south Spring Grove is looking for an interested party to develop this space into residential units. Deadline to submit a proposal is August 2, 2021. 1
MORE INFORMATION
16 | JULY - AUGUST 2021
SEPTEMBER 18 - 19 & 25 - 26, 2021 11 AM - 5 PM The 2021 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:
2nd Deadline: July 29 - $100 discount Final Deadline: August 19 Entry information and forms can be found HERE
OVERALL EVENT SPONSOR
Remodelers SEPTEMBER 18 - 19, 2021 11 AM - 5 PM 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, exterior contractors, and more.
DEADLINES:
Discount Deadline: July 29 Final Deadline: August 19 Entry information and forms can be found HERE
OVERALL EVENT SPONSOR
17 | FOUNDATIONS NEWSLTR
2021 FALL SHOWCASE OF HOMES / REMODELERS TOUR MAGAZINE ADVERTISING INVESTMENT Sixth Page Quarter Page Half Page Half Page Full Page Inside Front Page
2.333 x 4.875 ......................................... $500 3.625 x 4.875 ......................................... $700 (v) 3.625 x10 .......................................... $900 (h) 7.5 x 4.875 ........................................ $900 8.5x11 (bleed size 8.75 x 11.25) ............. $1200 8.5x11 (bleed size 8.75 x 11.25) ............. $1500
The 2021 Fall Showcase of Homes features new homes, townhomes, and subdivisions; and The 2021 Remodelers Tour features recent home renovations. Together, they are featured in the Rochester Area Builders-produced digital magazine which is the official program that includes details, descriptions, and photos for each home/subdivision. Participation to showcase a project is exclusive to RAB members, and members of the community are invited to enjoy the event. The digital magazine produces over 10,000 impressions, and the RAB Events app receives over 33,000 views during the event weekends. RAB will promote the digital magazine across multiple digital platforms with over 500,000 impressions. 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 Crystal at 507-218-8401 or at Crystal@tuliptree-studios.com.
Full Page
Half Page
Half Page
Quarter Page
Sixth Page
Fall Showcase Weekends September 18-19 & 25-26, 2021 Remodelers Tour Weekend September 18-19, 2021
Remodelers
18 | JULY - AUGUST 2021
Remodeling Industry Confidence Improves Year over Year BY PAUL EMRATH on JULY 15, 2021 The NAHB/Royal Building Products Remodeling Market Index (RMI) increased for the second quarter, posting a reading of 87, up 14 points from the second quarter of 2020. The increase in the index is a sign of improving remodelers’ confidence in their markets, for projects of all sizes.
The RMI is an average of two major component indices: the Current Conditions Index, and the Future Indicators Index. The Current Conditions Index, in turn, is an average of three subcomponents: the current market for large remodeling projects ($50,000 or more), moderately-sized projects ($20,000 to $49,999), and small projects (under $20,000). In the second quarter, the Current Conditions Index was 91, a 14-point increase from the second quarter of 2020. All components also posted increases compared to the second quarter of last year: large remodeling projects ($50,000 or more) jumped 20 points to 90, moderately-sized remodeling projects (at least $20,000 but less than $50,000) increased 13 points to 91 and small remodeling projects (under $20,000) rose nine points to 92.
The Future Indicators Index is an average of two subcomponents: the current rate at which leads and inquiries are coming in and the current backlog of remodeling projects. In the second quarter, the future Indicators Index was 83, up 13 points from second quarter of 2020. Both components increased as well: the current rate at which leads and inquiries are coming in rose nine points to 81 and the backlog of remodeling jobs jumped 19 points to 86.
There is not yet enough history to seasonally adjust the current version of the RMI. For that reason, results cannot be meaningfully compared to the previous quarter. To track quarterly trends, the survey asks remodelers to compare market conditions to three months earlier, using a ‘better,’ ‘about the same,’ ‘worse’ scale. In the second quarter, 30 percent of respondents indicated that the market is ‘better’ and only 9 percent rated it ‘worse’ than the first quarter of 2021. As the market attempts to balance the number of households that want homes and the number of homes available, the value of homes is rising, helping to fuel demand for remodeling. This has been sufficient to keep remodelers optimistic, despite the significant headwinds of labor and material shortages. And while there has been some easing of framing lumber prices, prices for other materials like OSB remain very high. In fact, the price of OSB is up more than 500 percent since the start of 2020. For the full RMI tables, please visit NAHB’s RMI web page.
19 | FOUNDATIONS NEWSLTR
You’re Invited! ISG Grand Opening
Come celebrate the grand opening of our new Rochester office, followed by Thursdays Downtown!
RSVP NOW! bit.ly/RochLaunch
WHEN
WHERE
S E P T E M B E R 9, 2 0 21 3:00-5:00 PM
ISG ROCHESTER OFFICE H3 Plaza 30 3rd Street, Suite 600 Rochester, MN 55904
ISG Office Tours, Appetizers, and Refreshments
Join us afterwards for ISG sponsored Thursdays Downtown event. Architecture + Engineering + Environmental + Planning | ISGInc.com | #ISGRochLaunch
20 | JULY - AUGUST 2021
Industry Appreciation Join Us! Wednesday, September 1 Kahler Grand Hotel - Heritage Room | 20 2nd Ave SW, Rochester, MN
5:30 - 7:00 pm Social 7:00 - 8:00 pm Dinner & Keynote Speaker 8:00 - 9:00 pm Awards & Installation of Officers 9:00 - 9:30 pm Closing AWARDS Member of the Year NAWIC Supporting Pillar of the Year
$50 ticket
Cash bar
Coordinated by your Southeast MN Chapter 346 Visit nawicsemn.org for more information
Scan the QR code to purchase tickets & sponsorships.
Sponsorships Available Gold — $1000 Silver — $750 Bronze — $250
Follow us
@NAWICSEMN
Spirit — $100
21 | FOUNDATIONS NEWSLTR
STUDS, STRUTS & ST
ET TOS
Forms Available For 2021 Studs, Struts & Stilettos Fashion Show Show off your creativity by submitting a design in this year’s fashion show! With the theme being “Strut Through History”, your inspiration will come from historical figures, events, and/or a period in time. And as always, materials used in the building industry will be incorporated into the design. Enter today!
PRESENTED BY:
Design Entry Form Deadline: August 5th
A BENEFIT FOR:
OCTOBER 14, 2021 MAYO CIVIC CENTER Find us on Facebook! Click here to view pictures from past events and stay up to date with the latest news on Studs, Struts & Stilettos!
Follow us on STUDS, STRUTS & ST ET TOS
Become a Sponsor Deadline: August 20th
22 | JULY - AUGUST 2021
Media Contact Jenna Bowman, Strategic Communications & Engagement Director Direct: 507-328-2913 | E-mail: jbowman@rochestermn.gov FOR IMMEDIATE RELEASE
The City of Rochester Seeks Proposals for the Riverfront Small Area Plan July 20, 2021 – ROCHESTER, MINN, - The City of Rochester is now accepting proposals for the Riverfront Small Area Plan. Qualified and innovative teams are encouraged to submit proposals for a community-driven process to develop a market-supported vision and small area plan for a central waterfront property that links together several civic, cultural and government assets to the heart of downtown Rochester and the Mayo Clinic. The desired plan will establish a people-centric place that leverages natural and cultural resources and supports multi-modal connectivity to adjacent areas including the Downtown. “The City is excited to take the next step in realizing the community’s vision, via a community co-design process, for the riverfront site. The small area plan will be an instrumental tool in guiding the transformation of the current site into a vibrant place to live, work, and visit,” shares Interim Community Development Director Josh Johnsen. The City envisions the site as part of the historic cultural triangle that encompasses the Library, Mayo Civic Center, Government Center, and the historic shops at 3rd and Broadway. The future Bus Rapid Transit corridor, now in design, will run east along 2nd Street and west along 4th Street adjacent to the site. Patrick Seeb, Executive Director of Destination Medical Center shares, “There are pivotal projects that truly define a city and we believe this will be one of those projects. We look forward to receiving proposals and selecting a partner that will work with us and with the community. The opportunity to not only transform, but focus on the history of this area is truly unique.” Proposals are due by 4:30pm on August 17, 2021 and a recommendation for the award of the contract is expected on September 20, 2021. The project will begin in October 2021. Full details on this RFP are available here. ###
23 | FOUNDATIONS NEWSLTR
24 | JULY - AUGUST 2021
Crosswinds for Construction Job Openings BY ROBERT DIETZ on JULY 7, 2021 The count of open construction jobs declined in May to 299,000 unfilled positions, according to data from the BLS Job Openings and Labor Turnover Survey (JOLTS). The housing market remains hot and requires additional labor, lots and lumber and building materials to add inventory. Overall, hiring in the construction sector remained strong in May, ticking down to a 4.2% rate. The post-virus peak rate of hiring occurred in May 2020 (10.3%) as a rebound took hold in home building and remodeling. Hiring has generally slowed since that time, with the exception of a weather-related rebound in March 2021. Construction sector layoffs remained steady in May at a 2.1% rate. In April 2020, the layoff rate was 10.9%. Since that time however, the sector layoff rate has been below 3%, with the exception of February 2021 due to weather effects.
The job openings rate in construction declined to 3.9% in May, with 299,000 open positions in the sector. This is slightly higher than the 281,000 count recorded a year ago. Looking forward, the construction job openings rate is likely to experience choppiness in the months ahead given divergent outlooks within the construction industry. For example, in June, residential construction posted a jobs gain, while nonresidential construction experienced a job loss. Nonetheless, attracting skilled labor will remain a key objective for residential and nonresidential construction firms in the coming quarters and will become more challenging as the rest of the economy recovers.
25 | FOUNDATIONS NEWSLTR
ONB Bank is proud to be the Overall Event Sponsor for the
Rochester Area Builders
September 18-19, 25-26, 2021 Admission is FREE!
VISIT WITH US TODAY FOR YOUR HOME MORTGAGE PREAPPROVAL. Preapproval is subject to credit review.
CRYSTAL HUGHLEY REAL ESTATE BANKER
Rochester Location 975 34th Ave NW (507) 424-1571 NMLS ID#1389898
crystal.hughley@bankononb.com
bankonONB.com
26 | JULY - AUGUST 2021
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.
27 | FOUNDATIONS NEWSLTR
28 | JULY - AUGUST 2021
What Areas Grew the Most? Single-Family Home Building in 2020 BY JING FU on JULY 9, 2021
According to NAHB analysis of the Survey of Construction (SOC), new single-family starts expanded at a fast pace in 2020. Nationally, 993,635 new single-family units were started in 2020, 12% higher than the units started in 2019. It marked the fastest growth rate since 2013 and the highest count of starts since the Great Recession. Among all the nine Census divisions, the South Atlantic, West South Central and Mountain Divisions led the way with the most new singlefamily units started in 2020. These three divisions represent 20 states and Washington, D.C., approximately 41% of United States, while the number of new single-family housing starts in these three divisions accounted for about 66% of the total new single-family housing starts in 2020. In addition, single-family units started in the Pacific Division increased to 101,999 in 2020, exceeding 100,000 for the first year since the 2008 recession. There were 84,095 new single-family units started in the East North Central Division in 2020. While the Pacific Division accounted for 10% of the total new single-family housing starts, the East North Central Division accounted for 8%. The other four divisions, including East South Central, West North Central, Middle Atlantic and New England, accounted for the remaining 16% of the total new single-family housing starts.
In 2020, nationally, new single-family housing starts rose by 12. Five out of the nine divisions grew faster than the national level of 12%. The New England Division led the way with a 27% increase, followed by the Mountain Division and the East North Central Division with an 19% increase each, the South Atlantic Division and the West South Central Division with a 12% increase each. The growth rates of the other four divisions were below the national level. Compared to last year, seven out of the nine divisions, including New England, Mountain, East North Central, South Atlantic, West South Central, East South Central and Pacific, had an acceleration in 2020. Meanwhile, the West North Central Division and the Middle Atlantic Division experienced a deceleration in growth in 2020. Noticeably, the New England Division grew by 27% in 2020, following a decrease of 15% in 2019.
29 | FOUNDATIONS NEWSLTR
Goodin Company carries a full complement of products for the markets we serve. Are you in need of products for plumbing, HVAC, industrial, or pump and well applications? We are your Source of Supply, serving the industry since 1937.
PLUMBING
HVAC
Goodin Company maintains a complete inventory in a wide range of major brand plumbing products for both residential and commercial plumbing contractors. To support our plumbing inventory, we maintain showrooms in many of our branch locations.
Our HVAC division encompasses both hydronic and warm air heating as well as central and split system air conditioning equipment for residential and commercial systems. We also provide technical support in design and layout.
INDUSTRIAL
PUMP AND WELL
We supply a wide range of industrial pipe, valves, and fittings. To compliment our pipe inventory, we offer a complete in-house pipe fabrication service in which we are able to cut, thread and groove pipe to our customers’ specifications.
Goodin Company’s pump and well division maintains a complete inventory of pumps and repair parts for the residential water well drilling contractor, as well as the large commercial or municipal driller.
MINNEAPOLIS (612) 588-7811 ST. PAUL (651) 489-8831 DULUTH (218) 727-6670 DETROIT LAKES (218) 847-9211 ST. CLOUD (320) 259-6086
BRAINERD (218) 828-4242 ROCHESTER (507) 529-1284 FARGO (701) 298-3210 SIOUX FALLS (605) 332-3444 OMAHA (402) 331-6813 www.goodinco.com
EAU CLAIRE (715) 830-1800 WAUSAU (715) 675-2513 MADISON (608) 663-0331 MILWAUKEE (262) 781-1770 GREEN BAY (920) 884-9494
30 | JULY - AUGUST 2021
ROCHESTER BUILDING PERMITS NEW RESIDENTIAL
2021
Single Family Dwelling
24
8,560,100
19
4,937,215
Townhome Dwelling
6
2,012,280
2
286,662
Two-Family Houses
0
0
0
Manufactured Home
0
0
Multi-Family Bldgs (Units)
0
0
VALUATION 2020
VALUATION
JUNE 2021
2012 2013 2014 2015 2016 2017 2018
2019 2020 2021
January
6
19
11
20
25
15
19
6
17
23
February
20
15
14
19
15
20
16
5
13
8
0
March
32
29
28
30
31
44
25
27
32
35
0
0
April
29
39
25
22
33
45
40
23
19
19
0
0
May
22
27
35
19
56
43
28
27
19
26
June
32
33
47
51
41
52
38
31
21
30
141
162
160
161
201
219
166
115
July
39
39
38
29
44
45
36
26
26
August
38
21
60
33
47
30
31
24
17
September
22
22
23
27
52
35
39
12
30
October
23
34
35
49
25
36
29
27
28
November
22
26
26
23
12
41
21
47
23
33
EXISTING RESIDENTIAL Deck Addition
40
410,648
21
144,753
Room Addition
5
328,500
6
288,666
Porch Additions
2
42,000
1
35,000
Other Additions
4
70,106
2
14,000
Basement Finish
17
350,155
12
210,665
Alterations
72
1,013,844
33
810,191
Multi-Family Addition
0
0
0
0
Multi-Family Alterations
8
252,700
3
523,605
TOTAL
121 141
December
14
22
27
42
37
25
34
21
TOTAL
299
326
369
369
418 429 347
289
266
141
*Total may differ as permits may have been voided.
NEW COMMERCIAL Assembly (Church)
0
0
0
0
Assembly (General)
0
0
0
0
Assembly (Restaurant/Bar)
0
0
0
0
Business
0
0
1
530,000
Education
1
24,279,684
0
0
Factory/Industrial
0
0
0
0
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
1
3,798,900
Residential (Care/Hotel/Motel)
0
0
0
0
Storage (General)
0
0
5
2,173,480
Storage (Parking Garage)
2
1,421,775
0
0
Storage (Warehouse)
0
0
0
0
Utility (General)
0
0
3
464,021
Utility (Private Garage)
0
0
0
0
YEAR TO DATE STATISTICS NO.
2021 VALUATION
BUILDING PERMITS ISSUED TO DATE
NO.
2020 VALUATION
1167
261,332,738
857
175,612,308
Single Family Dwelling
125
43,240,669
102
30,608,174
Multi-Family Buildings Total Units: 127
1
14,800,000
1
10,640,000
TRADE PERMITS ISSUED TO DATE
5425
66,199,793
4588
53,845,365
Electrical
2097
30,896,060
1731
23,727,834
Electrical (Temp. Service)
124
45,755
134
53,550
1521
17,548,368
1205
16,278,031
Mechanical (Gas Piping)
306
420,637
296
469,177
Mechanical (Fireplace)
170
876,017
149
610,200
Mechanical (HVAC)
Mechanical (Hydronic) Plumbing TOTAL PERMITS YTD
88
5,209,297
86
2,263,437
1119
11,203,659
987
10,443,136
6592
327,532,531
5445
229,457,673
EXISTING COMMERCIAL Addition
1
348,989
5
3,366,132
27
9,723,578
14
6,954,340
Structural Shell
1
3,600,000
0
0
“White Box”
1
800,000
0
0
Interior Demolition Only
0
0
0
0
Other Phased Permits
0
0
0
0
Alterations
OTHER CONSTRUCTION Business Signs
23
199,702
8
75,513
Advertising Signs
0
0
0
0
Footings & Foundations
1
500,000
0
0
Demolition
1
0
2
0
Information and downloads available at Rochester Building Safety Department’s website: https://www.rochestermn.gov/government/departments/building-safety/reports-building-permits/building-permits-2021
JUNE 2021
PINE ISLAND
BUILDING PERMITS
NUMBER
VALUATION
Single Family Detached
NEW RESIDENTIAL
2
605,000
Single Family Attached
0
0
Basement Finish
3
31,935
Deck Addition
4
34,500
Existing Residential
31 | FOUNDATIONS NEWSLTR
OLMSTED COUNTY PERMITS YTD
2021
VALUATION
2020
VALUATION
10
2,533,415
24
7,873,447
Single Family-Attached
6
837,378
0
0
7
315,694
13
636,440
15
93,883
21
107,660
8
472,850
4
32,760
73
742,230
46
836,190
2
36,426
1
9,612
RESIDENTIAL
2020
VALUATION
Addition
1
121,056
1
422,867
Alterations
2
61,000
3
67,465
Re-roofing
0
0
2
8,250
11
156,928
7
183,664
9
0
29
0
107
747,211
99
1,099,104
55
531,183
58
860,886
322
12,127,767
296
13,499,910
OTHER STRUCTURES
Deck Addition Alterations Garage Addition
NEW COMMERCIAL/INDUSTRIAL Recreational
0
0
Church/Religious
0
0
0
0
Industrial/Warehouse
0
0
0
0
Service/Repair Station
0
0
0
0
Store/Restaurant
0
0
1
355,968
Nonresidential Building
1
134,573
0
0
VALUATION $51,872 PERMITS 9
VALUATION $699,058 PERMITS 39
2021
VALUATION $8,216,867 PERMITS 62
BYRON
Pool, Retaining Wall, etc. Manufactured Homes
MISCELLANEOUS PERMITS Mechanical Plumbing
0
VALUATION $3,312,807 PERMITS 57
VALUATION
COMMERCIAL/INDUSTRIAL
Single Family-Detached Garage
2021
NEW RESIDENTIAL
JUNE 2021
0
TOTAL PERMITS
BYRON NOW INCLUDED IN OLMSTED COUNTY PERMITS
OLMSTED COUNTY PERMITS JUNE
2020
VALUATION $400,914 PERMITS 8
VALUATION $127,104 PERMITS 1
EYOTA
VALUATION $371,198 PERMITS 14
MARION
VALUATION $67,713 PERMITS 7
ORONOCO TWP
VALUATION $0 PERMITS 0
VALUATION $1,560 PERMITS 1
QUINCY
VALUATION $729,786 PERMITS 25
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 6-2018
6-2019
6-2020
6-2021
6-2018
6-2019
6-2020
6-2021
6-2018
6-2019
6-2020
6-2021
6-2018
6-2019
6-2020
6-2021
6-2018
6-2019
6-2020
6-2021
6-2018
6-2019
6-2020
6-2021
6-2018
6-2019
6-2020
6-2021
6-2018
6-2019
6-2020
6-2021
6-2018
6-2019
6-2020
6-2021
6-2018
6-2019
6-2020
6-2021
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
6-2020
6-2021
Percent Change
YTD 2020 YTD 2021
693
741
+ 6.9%
3,515
3,547
+ 0.9%
754
618
- 18.0%
3,253
3,380
+ 3.9%
677
756
+ 11.7%
2,719
2,945
+ 8.3%
51
24
- 52.9%
62
37
- 40.3%
$228,000
$265,000
+ 16.2%
$217,750
$240,000
+ 10.2%
$251,466
$289,891
+ 15.3%
$241,169
$270,427
+ 12.1%
98.1%
102.4%
+ 4.4%
97.0%
100.2%
+ 3.3%
187
160
- 14.4%
196
176
- 10.2%
1,068
567
- 46.9%
--
--
--
2.0
1.0
- 50.0%
--
--
--
Percent Change
Current as of July 6, 2021. All data from Southeast Minnesota REALTORS® and NorthstarMLS®. Provided by the Minnesota Association of REALTORS®. Report © 2021 ShowingTime. | 2
32 | JULY - AUGUST 2021
PROFILE ENHANCEMENTS STANDARD
• Company name, address and phone number • Website, address map, and phone button • 5 categories
UPGRADED
ENHANCED
PREMIUM
(Includes Standard Listing)
(Includes Upgraded Listing)
(Includes Enhanced Listing)
• 12 categories • Company Description (200 characters) • Keywords (240 characters)
• Company Description (1600 characters)
• Logo on search results • Social networks can be added
• Keywords (unlimited characters)
• Hours of Operation
• 200 characters on search results
• Driving Directions
• Bulleted list
• Photo Gallery can be added • YouTube video can be added
• Logo on profile page
No additional Charge
$100 annually
$300 annually
$500 annually
BANNER ADS Construction Professionals Building Your Community
Choose from the following options for placement: • All Categories cost $599/year • Directory Search (plus results) cost $499/year • All Events on Member Information Center
cost $399/year
• Specific Category & Quick Link (plus letter)
cost $399/year
• Quick Link Only & Business Directory Map
cost $299/year
• Hot Deals, Job Postings, Marketspace, Weather
cost $299/year
Advertisers get higher placement in all assigned Directory categories. Ads may be changed out periodically.
CONTACT: Audra Bolduan Audra@RochesterAreaBuilders.com
WEBSITE BROCHURE
33 | FOUNDATIONS NEWSLTR
Price of OSB Up More Than 500% Since January 2020 BY DAVID LOGAN on JULY 14, 2021 Framing lumber prices garnered more attention than any other building material over the past year as prices quadrupled between April 2020 and May 2021. But even as lumber prices decline, the spotlight on lumber continues to crowd out the story of meteoric price increases of another wood product integral to the integrity of a building’s structure—oriented strand board (OSB).
The price of OSB has increased 510% since January 2020, exceeding the peak price increase in lumber by nearly 180 percentage points. Although plywood panel prices have substantially increased over the past 18 months as well, the increases have been less than half those seen in the OSB market. In addition to elevated prices, acute shortages have plagued the residential construction industry–particularly after the severe winter weather experienced in the south in February.
of these dimensions (shown below) have climbed an average of 491% since January 2020.[2] The “delivered” price of 3/8” thick OSB sheathing in Portland, Oregon has climbed an incredible 662% over the same period. Oriented strand board is heavily relied upon in roofing applications as well. Roof sheathing made of OSB made up nearly two-thirds of all roof sheathing in 2019.[3] As roof sheathing is intended to resist “racking” resulting from high winds or earthquakes as well as carry gravity loads of items such as snow, finish roofing, and people, OSB sheathing used in roofing is typically 7/16” and 15/32” thick. In areas with minimal snow loads, building codes may allow for the use of 3/8” OSB.
In flooring applications, OSB may be used in a single-layer floor system as a combination subfloor and underlayment and is commonly available with tongue-and-groove (T&G) edges designed to prevent uneven wear. The most common wood structural panel installed in typical floor applications is 23/32” thick (installed at 24 inches on center). In the western United States, the “delivered” price of 23/32” T&G OSB has increased by 309%, 357%, and 432% in Phoenix, Denver, and Seattle, respectively.[4] As lumber prices recede, more attention must be given to the stratospheric price level of OSB. The large share of OSB structural panels usage in new construction and the fact that, like framing lumber, it is integral to the completion of most residential construction should lead the market to shine a greater spotlight on OSB prices and scarcity. [1] Builder Practices Survey data; NAHB calculations.
Prices and price fluctuations vary depending on use and location, with increases since the start of 2020 exceeding 650% for some OSB products. Oriented strand board accounts for the most wood product used in structural panel applications in new construction. For example, OSB accounted for roughly two-thirds of wood panels used in wall sheathing in 2019.[1] Depending on the location of a build, the thickness of OSB sheathing in wall applications is generally 3/8” or 7/16” (with some use of 15/32”). The mill prices
[2] Random Lengths; NAHB calculations. [3] Builder Practices Survey. [4] Random Lengths; NAHB calculations.
34 | JULY - AUGUST 2021
Members Save Millions Put Your NAHB Membership to Work Now. Money-saving discounts that benefit you, your business and your family
nahb.org/Savings
35 | FOUNDATIONS NEWSLTR