FOUNDATIONS NOVEMBER - DECEMBER by Rochester Area Builders, Inc.

NOV - DEC 2021

December 2021 September November October August June July 2021 2021 2021 2021 2021

ROCHESTER AREA BUILDERS, INC.

PHOTOS COURTESY OF HOLIDAY PARTY REGISTRATION DEADLINE APPROCHING

EDUCATION SPONSORSHIPS AVAILABLE

HOME SHOW KITCHEN FOR KIDS ENTRIES AVAILABLE

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 | NOVEMBER - DECEMBER 2021

STAFF EXECUTIVE DIRECTOR

John Eischen, John@RochesterAreaBuilders.com STAFF Shelly Bahlmann, Shelly@RochesterAreaBuilders.com Golf Outing, Sporting Clays, Home Show, Directory, Newsletter, RAB Update

Online Permit Submission

UPDATE!

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

Elizabeth Sullivan-Burton, Elizabeth@RochesterAreaBuilders.com

Builders Exchange Trustees and Showcase Committee, Website GOVERNMENT & PUBLIC AFFAIRS CONSULTANT Rick Dold, Rick@GodwinDold.com

When submitting your permit online doing the following will greatly improve your chances of acceptance, speedy processing, and approval.

BOARD OF DIRECTORS

Optimizing the plan allows the city departments to more effectively process your submittal within the system.

Optimizing the plan will also improve the City’s ability to efficiently review your plans.

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. 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

1. Use your PDF software to optimize your plan before submitting

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.

Any other plan information you submit should be submitted as additional information and not as a drawing.

You are allowed as much information as you need for your submittal, but each submittal should only have one drawing.

Submitting more than one drawing may cause the rejection of your submittal.

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

9 12 PERMIT REPORTS

11 UPDATE..............................................................2

Online permit update

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

December 2021

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

ROCHESTER PUBLIC WORKS..............................18

Survey Information

BUILDING PERMITS...........................................22

Rochester, Byron & Pine Island

OLMSTED BUILDING PERMITS ...........................23

Luke Stier, Stier Construction, 2021 RAB President

October 2021

MEMBER REPORT................................................6

SEMR HISTORICAL OVERVIEW............................23

OCTOBER NETWORKING NIGHT............................7

NAHB EYE ON HOUSING.....................................24

October 2021 Cambria

October 2021

Building Materials Prices Post Record

NAHB EYE ON HOUSING.......................................8

Job Gains Accelerate in October

RAB HOLIDAY PARTY...........................................9

Registration Information

EDUCATION.......................................................11

Registration & Sponsorship Information

HOME SHOW................................................12-13

Booth Registration Information & Kitchens for Kids

COMMUNITY DEVELOPMENT..............................15

D C

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

Online Permit Process

NAHB EYE ON HOUSING.....................................17

Federal Reserve: Taper Begins

C OMMERCIAL C B UILDERS

OUNCIL

a division of Rochester Area Builders, Inc.

4 | NOVEMBER - DECEMBER 2021

December 2021 Sunday

Monday

Tuesday

Wednesday

Thursday 1

6 12:00 PM Government Affairs Committee

7 8:00 AM Remodelers Council Exec.

Saturday

7:00 AM Commercial Builders Council

Friday

11:30 AM Program Committee

7:30 AM Green Building Committee

11:30 AM Executive Committee

13 3:30 PM Builders Exchange Board of Trustees

14 3:00 PM Board Meeting

12:00 PM Ambassadors Committee

7:30 AM Membership Committee

4:30 PM 40 Below Exec.

11:30 AM Fashion Show Committee

3:00 AM Development Services Advisory Committee

28 11:30 AM Home Show Committee

MEETINGS ARE NOW BEING HELD IN PERSON UNLESS NOTIFIED DIFFERENTLY BY JOHN

5 | FOUNDATIONS NEWSLTR

FROM THE PRESIDENT and this incredible organization!

LUKE STIER President

Rochester Area Builders, Inc Fellow members, I hope you are embracing the holiday season and have time scheduled with family and friends. With so many things to be thankful for this year, I am thankful for my family & friends, a talented group of employees,

with the change this year, as all booths will be on the ballroom level. We still We will be hosting Continuing have booths available, so be sure to get Education Classes in January/February. registered for your preferred booth You will have the option for virtual or location! in-person, with In-person classes held at Haley Comfort Systems. We will be As you are creating your Marketing sending out additional details in budget for 2022, we hope you consider December. Utilizing the opportunities RAB has to offer. Advertising on the RAB website 80’s Holiday Party: Deadline to can help drive your target audience purchase tickets is December 3rd. directly to your specific website. Make Prizes awarded for best 80’s style and sure to fill out and return the Marketing biggest hair! Do not forget to send us Opportunities form so you can position your 80s photos, and we hope to see yourself for a successful year! you there! Kitchens for Kids: Do you know anyone that can volunteer to build or construct a kid’s kitchen? We could use additional builders and Kitchens, so please help us spread the word! This is a terrific way to show off your skills and creativity, as well as providing an incredible benefit to the Jeremiah Luke Stier Program. 2022 Home Show: We are excited

Stier Construction 2021 RAB President

6 | NOVEMBER - DECEMBER 2021

ROCHESTER AREA BUILDERS, INC.

MEMBERSHIP REPORT October 2021 Membership Total: Retention rate:

Rochester Area Builders 2022 Calendar of Events

403 94%

As of October 31, 2021 ONE TO FOUR YEARS Bayer Interior Woods......................................2020 Bush Companies..............................................2020 Midwest Floor Solutions, Inc.........................2017

FIVE TO NINE YEARS Comfort Air, Inc..............................................................2016 F&M Community Bank................................................2015 Interiors by J.Curry, LLC.............................................2015 Lake City EDA.................................................................2015 Action Plumbing, Heating & A/C..............................2014 Harmony EDA................................................................2014

TEN TO 19 YEARS Rochester Community & Technical College (RCTC)............................2011 Chosen Valley Testing, Inc.........................................2010 B and C Plumbing and Heating Inc..........................2009 Hanson Construction & Specialty Cabinets, LLC...............................2006 Kwik Trip, Inc.................................................................2006

20 YEARS & MORE TInternational Brotherhood of Electrical Workers Local 343..........2000 Wright Homes, Inc...........................................2000 WT Lighting......................................................2000 Cornerstone Builders & Real Estate, Inc......1999 Curry’s Custom Cut Gutter, LLC....................1998 Dunlap & Seeger PA........................................1993 Citywide Insulation, Inc...................................1991 Haley Comfort Systems..................................1990 Rochester Public Utilities (RPU)...................1990 K&S Heating, A/C, Plumbing & Electrical....1988 Elcor Construction, Inc....................................1986 Hicks Electric, Inc............................................1983 Higgins Custom Cabinetry..............................1981 Koball’s Poured Walls, Inc.............................1979 WSB...................................................................1977

JANUARY 14 Continuing Education Classes (ONLINE or In-person) 25 General Membership Meeting @ DoubleTree FEBRUARY 4-6 Rochester Area Builders Home Show 8-10 NAHB International Builders Show – Orlando, FL 22 Networking Night @ TBD TBD Continuing Education Classes (In-person) MARCH 29 Networking Night @ ISG APRIL TBD BAM Building Industry Day at the Capitol 23-24 Spring Showcase of Homes 30 Spring Showcase of Homes 26 Networking Night @ Premier Bank MAY 1 Spring Showcase of Homes 30 Office Closed – Memorial Day JUNE 2 RAB Golf Outing @ Willow Creek Golf Course 28 Networking Night @ Knutson Construction JULY 4 Office Closed for Independence Day TBD NAHB Mid-Year Board Meeting – TBD 26 Member Appreciation Night @ Mayowood Stone Barn AUGUST 13 Builders, Bags & Brews @ LTS Brewing Company 30 Networking Night @ TBD SEPTEMBER 5 Office Closed – Labor Day 15 Sporting Clay Shoot 17 Sporting Clay Youth Shoot 17-18 Remodelers Tour 17-18, 24-25 Fall Showcase of Homes 27 General Membership Meeting @ DoubleTree OCTOBER 13 Studs, Struts & Stilettos @ Mayo Civic Center 25 Networking Night @ Elias Construction NOVEMBER TBD Past Presidents Dinner 24-25 Office Closed – Thanksgiving Holiday DECEMBER 2 Holiday Party @ The Hilton 23-26 Office Closed – Christmas Holiday FUTURE DATES International Builders Show January 31 – February 2, 2023 @ Las Vegas, NV RAB Home Show February 3-5, 2023 @ Mayo Civic Center

7 | FOUNDATIONS NEWSLTR

to Cambria for hosting October Networking Night.

8 | NOVEMBER - DECEMBER 2021

Job Gains Accelerate in October BY JING FU on NOVEMBER 5, 2021 Job gains picked up in October after two consecutive months of a slowdown. Total payroll employment rose by 531,000 and the unemployment rate dropped to 4.6% in October. Construction industry employment (both residential and non-residential) totaled 7.5 million, with 44,000 construction jobs added in October. Both residential construction (+10,900) and non-residential construction (+33,000) had job gains for the month. Residential construction employment exceeds its level in February 2020, while 63% of nonresidential construction jobs lost in March and April have been recovered.

Job gains in October were widespread. Leisure and hospitality, professional and business services, education and health services, manufacturing, transportation and warehousing, and construction all had notable job gains in October, while employments in local government education, and in state government education have declined for the second consecutive month.

Employment in the overall construction sector rose by 44,000 in October. Over the month, residential construction added 10,900 jobs, and nonresidential construction employment rose by 33,000 jobs. Total nonfarm payroll employment increased by 531,000 in October, faster than the previous two months, as reported in the Employment Situation Summary. Job gains for August and September were revised upward. The August increase was revised up by 117,000, while the September increase was revised up by 118,000 from +194,000 to +312,000. Over 5.8 million jobs have been created during the first ten months of 2021 and monthly employment growth has averaged 582,000 per month. Total nonfarm employment in October 2021 is still 4.2 million lower than its pre-pandemic level in February 2020 level. Meanwhile, the unemployment rate declined by 0.2 percentage points to 4.6% in October, the lowest rate since the pandemic. It was 10.2 percentage points lower than its recent high of 14.8% in April 2020 and 1.1 percentage points higher than the rate in February 2020. The October decrease in the unemployment rate reflected a decrease in the number of persons unemployed (-255,000) and an increase in the number of persons employed (359,000). The labor force participation rate, the proportion of the population either looking for a job or already with a job, remained unchanged at 61.6% in October.

Residential construction employment now stands at 3.1 million in October, broken down as 885,000 builders and 2.2 million residential specialty trade contractors. The 6-month moving average of job gains for residential construction was 8,917 a month. Over the last 12 months, home builders and remodelers added 122,800 jobs on a net basis. Since the low point following the Great Recession, residential construction has gained 1,087,600 positions. In October, the unemployment rate for construction workers declined by 0.7 percentage points to 5.1% on a seasonally adjusted basis. The unemployment rate for construction workers has been trending lower, after reaching 14.1% in April 2020, due to the housing demand impact of the COVID-19 pandemic.

9 | FOUNDATIONS NEWSLTR

1980’s 1980’s Holiday Party Holiday Party DECEMBER 10TH

6:00 PM

HILTON HOTEL 10 EAST CENTER STREET ROCHESTER, MN 55904 Share your 80’s photos with us by sending them to Rebekah@RochesterAreaBuilders.com

Tickets & Sponsorships

Sponsorship Sponsorship Opportunities Opportunities

ENTITLEMENTS ENTITLEMENTS

Gnarly Gnarly

$850 $850

Logo LogoProjected Projectedon onScreen Screen at at Event Event

Verbal VerbalRecogni�on Recogni on at at Event Event

Sponsor SponsorLogo Logoon onSignage Signage

totally totally rad rad

$650 $650

Sponsor SponsorLis�ng Lis ngin inNewsle�er Newsle er

Sponsor SponsorLis�ng Lis ngon on Website Website

88Drink DrinkTickets Tickets

88Tickets Ticketsto toEvent Event ($60/�cket) ($60/ cket)

Company CompanyName Nameon onReserved Reserved Table Table

rad rad

$325 $325

44Drink DrinkTickets Tickets

Ticketsto toEvent Event ($60/ticket) ($60/ticket) 44Tickets

10 | NOVEMBER - DECEMBER 2021

Simplify Solutions — Passionately Design the Future Supporting local businesses and advancing community housing needs through the design of captivating, livable spaces.

Check it out! bit.ly/SiestaHillsdevelopment Architecture + Engineering + Environmental + Planning | ISGInc.com

11 | FOUNDATIONS NEWSLTR

2022 CONTINUING EDUCATION Residential Building Contractors & Building Officials

JANUARY 14TH ONLINE OR IN-PERSON

FEBRUARY TBD IN-PERSON ONLY

MORE DETAILS AND REGISTRATION COMING SOON.

LOCATION SPONSOR

SPONSORSHIPS AVAILABLE CLICK HERE FOR INFORMATION

RAB MEMBERS $89 / 7 Hour Course

NON MEMBERS $109 / 7 Hour Course

Questions Contact Rebekah 507.282.7698 Rebekah@RochesterAreaBuilders.com

12 | NOVEMBER - DECEMBER 2021

ROCHESTER AREA BUILDERS HOME SHOW 2022

We want your talent to be a part of supporting single moms and their children. The 2022 RAB Home Show will be featuring “Kitchens for Kids” – play kitchens for young children made by members of our community. Proceeds benefit Jeremiah Program. We invite you to be a part of this exciting activity! A raffle will be held during the event. The people’s choice winner will be determined by the largest number of raffle tickets for each project. These great mini-kitchens will be for children’s use but the raffle profits will go toward Jeremiah Program in Rochester MN. Jeremiah’s proven, holistic approach begins with establishing a supportive community for single mothers to pursue a career-track, college education. Through a combination of quality early childhood education, a safe and affordable place to live, and empowerment and life skills training, families find stability and a path out of poverty. You can also be a part of the Home Show and connect with customers by securing a 10’x10’ booth for the entire weekend (Friday, Saturday, and Sunday). Display, educate, and/or promote your business! Cost starts at $730. Go to RochesterAreaBuilders.com/home-show to register a booth!

February 4-5-6, 2022 Mayo Civic Center

Presented by

Benefit For

Find the registration form at rochesterareabuilders.com/ home-show-exhibitor-page/

Questions about the project? Contact Shelly@RochesterAreaBuilders.com Ph 507-282-7698

13 | FOUNDATIONS NEWSLTR

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

Ease of entrance for a�endees, right oﬀ the skyway.

Easy access to the exhibit space (only one Ballroom door won’t be open, due to the �cket booth).

Less Confusion. One ﬂoor, one area. No need to worry about if a�endees saw all the exhibitors.

New booth spaces in the Ballroom lobby area.

Friday night ac�vity area and theseminar areas more visible and integrated with the rest of the show.

BOOTH REGISTRATION IS OPEN! RESERVE YOUR BOOTH TODAY! Registra�on and Exhibitor Informa�on can be found HERE.

Please contact Shelly with ques�ons.

14 | NOVEMBER - DECEMBER 2021

FOUNDATIONS NEWSLETTER ADVERTISING Rochester Area Builders Newsletter is an unbeatable opportunity to advertise to members and individuals associated with RAB. It is a source of valuable association and industry information, and is published and emailed monthly. Foundations is sent to over 1600 connected industry professionals. Ad sizes are listed under Display Ad Dimensions, and prices are located above. Ads may be changed from month to month. Our prices are for full color ads. We will gladly work with you to design your ad. Please send digital files for all ad copy, logos, and artwork. We use PC format. We accept Illustrator and Photoshop files. Convert all fonts to outlines. We also accept the following high resolution file types: .tif, .eps and .pdf (with all graphics and fonts embedded). If you have any other formats please contact us.

RETURN TO: ROCHESTER AREA BUILDERS

Shelly Bahlmann Shelly@RochesterAreaBuilders.com 108 Elton Hills Ln NW Rochester, MN 55901 507-282-7698

Newsletter Advertising Rates

Per Issue

12 Issues

New Member 12 Issues

Full color 1/2 Horizontal

c $70.00

c $650.00

c $490.00

Full color Full Page

c $90.00

c $900.00

c $675.00

Full Color Full Page Press Release

c $25.00

Newsletter Display Ad Dimensions 1/2 Horizontal Full

8-1/2 x 5-1/2 8-1/2 x 11

Send artwork to Shelly@RochesterAreaBuilders.com by the 15th of the month to be included in the upcoming Foundation Newsletter.

15 | FOUNDATIONS NEWSLTR

City of Rochester, Minnesota 4001 W River Parkway NW, Suite 100 Rochester, MN 55901-7090

Phone: 507-328-2600 Fax: 507-328-2601 Email: buildingsafety@rochestermn.gov

The City of Rochester has launched new online services to streamline the permitting process. Read the full press release here: https://www.rochestermn.gov/Home/Components/News/News/8361/1121 Highlights of these enhancements include new appliance permits, online trust account payments, and automatic issuance of permits. What does this mean for you? Read on to find out! New Appliance permits – Licensed contractors can now apply for appliance permits online through Citizen Access (furnace, air conditioner, water heaters, and the associated electrical for appliances) as well as pay for the permit using a Trust Account or Credit Card. The permit will automatically issue without going through administrative review. This fast, convenient process allows you to better serve your customers. Trust Accounts in Citizen Access – All contractors with Trust Accounts can now use their trust accounts in Citizen Access to pay for permits by following these three easy steps. 1. Admin staff will intake your permit application, review it for accuracy, and formally accept the permit. 2. Upon acceptance, an automated email will be sent to the applicant, letting them know the permit is ready for payment. 3. The applicant will then log in to their Citizen Access account to make payment using either a Trust Account or a credit card. Other Updates



The City of Rochester has implemented a new kiosk available in the Development Services Infrastructure Center lobby to assist our customers with online permit submission and payments. One-on-one training is available! If you would like assistance navigating the Citizen Access portal, applying for permit applications, or scheduling inspections, please feel free to stop by or call our office at 507-328-2600 to schedule a training session. A push toward paper-free! o You will no longer receive a copy of your permit and receipt in the mail. All documents are now available in Citizen Access for you to download at your convenience. o Residential projects no longer require documents on-site. Building permits, inspection cards, and approved plans are electronic, so no need to print your documents!

Step-by-step guidance, located here Applications, Forms, and Guides COMING SOON: Beginning early 2022, the Community Development Department will begin implementing a fully paperless permitting process which will eliminate all paper applications received via email, fax, or walk-in submissions. Stay tuned for further updates!

16 | NOVEMBER - DECEMBER 2021

Our warmest wishes this holiday season!

| BankonONB.com |

17 | FOUNDATIONS NEWSLTR

Federal Reserve: Taper Begins BY ROBERT DIETZ ON NOVEMBER 3, 2021

he Federal Reserve has supported the housing market during the virus crisis, the 2020 recession, and the subsequent, ongoing recovery via asset-backed purchases (among other tools), including $40 billion a month of mortgage-backed security (MBS) purchases. These MBS purchases have held interest rates lower than they otherwise would have been. Beginning in November, the Fed will reduce the monthly volume of such purchases by $5 billion a month. Further, the Fed will reduce by $10 billion a month its purchases of Treasuries (currently at $80 billion a month). These actions will put some upward pressure on interest rates, which NAHB forecasts will reach 4% for the 30-year fixed rate mortgage during 2023. The Fed may adjust this pace of tapering as economic conditions warrant. However, if this pattern were to hold, then asset purchases will cease by mid-2022. The Fed has telegraphed these actions over the last few quarters in order to avoid a quick jump in interest rates, as happened in 2013 during the so-called “taper tantrum.” The Fed also held its target for the federal funds rate steady. When the first rate hike occurs is a matter of speculation at this stage, although today’s announced schedule of tapering suggests an initial rate increase during the second half of 2022 (perhaps after the 2022 election?). On net, this leaves the Fed in a broadly accommodative policy stance, supporting the economy. The Fed adjusted, slightly, its inflation outlook. In its statement, the Fed noted: “Inflation is elevated, largely reflecting factors that are expected to be transitory. Supply and demand imbalances related to the pandemic and the reopening of the economy have contributed to sizable price increases in some sectors.” The “expected to be” in the statement may be a hedge to the possibility that despite a majority of economic forecasts envision the growth rate of inflation cooling during 2022, some persistent, elevated inflation may last into 2023 due to the impacts of stimulus and ongoing supply-chain challenges. The inflation outlook is being driven by opposing short-run and long-run forces. In the short-run, supplychain bottlenecks and pressure from a reopening of the economy is increasing inflation. However, longrun factors favor lower inflation, due to demographics (an aging population), global trade, and technology. Moreover, growth expectations have cooled recently. The winner of these countervailing inflation trends will determine the future of mortgage interest rates, which is critical given the more than 30% gain in home prices since January 2020 and declines for housing affordability.

18 | JANUARY - FEBRUARY 2020

Community Members Encouraged to Participate in Survey for City of Rochester Surface Water Planning

The survey includes 14 questions and a set of demographic questions and is available via Polco, an online polling platform. All survey responses are anonymous. It is expected that the results from the survey and community conversations will be shared in early spring.

The Public Works Department Environmental Services Team is developing a Comprehensive Surface Water Management Plan (CSWMP) that encompasses the City’s foundational principles of compassion, environmental stewardship, fiscal responsibility and sustainability, public safety, and social equity. The proposed CSWMP is expected to be a guiding document that will inform many decisions related to surface waters in Rochester. Water Resources Manager, Troy Erickson shares, “The plan will serve as the guiding document for water resources management, including stormwater infrastructure planning and priorities in the City of Rochester. We want to engage our community throughout the planning process to ensure that the plan

meets the community’s goals to protect and restore surface water resources in Rochester.” As part of the CSWMP process, the community is invited to share their experiences and relationship with lakes, rivers, and other surface waters in Rochester via an online survey. The input gathered from this survey will be used in the development of the CSWMP. The survey is now open on Polco. The City’s previous CSWMP was updated in December 1999 and called the City of Rochester Storm Water Management Plan. More recently the City partnered on the development of the Greater Zumbro One Watershed, One Plan (1W1P) which was approved by the Minnesota Board of Soil and Water Resources in October 2021.

Additionally, the City will be coordinating a Community Advisory Group (CAG) with the goal of engaging underserved populations in Rochester to help drive the plan to meet the needs of the Rochester community. If you, or someone you know, is interested in learning more about participating in the CSWMP CAG then please contact, Stephanie Hatzenbihler, Environmental Education Specialist, shatzenbihler@rochestermn.gov or 507-328-2440.

19 | 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

20 | NOVEMBER - DECEMBER 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.

21 | FOUNDATIONS NEWSLTR

22 | JULY - AUGUST 2021

ROCHESTER BUILDING PERMITS

OCTOBER 2021

NEW RESIDENTIAL

2021

Single Family Dwelling

4,883,007

6,722,518

January

Townhome Dwelling

1,116,560

2,183,140

February

Two-Family Houses

March

Manufactured Home

April

Multi-Family Bldgs (Units)

4,900,000

May

June

July

August

September

October

TOTAL

263

278

316

299

369

365

301

207

222

226

November

VALUATION 2020

VALUATION

2012 2013 2014 2015 2016 2017 2018

EXISTING RESIDENTIAL Deck Addition

150,248

111,930

Room Addition

466,110

477,894

Porch Additions

56,000

66,608

Other Additions

30,000

Basement Finish

363,388

227,874

Alterations

10,769,785

355,679

Multi-Family Addition

Multi-Family Alterations

17,403

55,000

2019 2020 2021

December

TOTAL

299

326

369

418

429

347

289

266

226

*Total may differ as permits may have been voided.

NEW COMMERCIAL Assembly (Church)

YEAR TO DATE STATISTICS

Assembly (General)

NO.

Assembly (Restaurant/Bar)

Business

7,618,907

468,600

Education

Factory/Industrial

Institution

Mercantile

849,821

Miscellaneous

Residential (Apartment)

Residential (Care/Assisted Living)

Residential (Care/Hotel/Motel)

Mechanical (HVAC)

Storage (General)

3,608,025

Mechanical (Gas Piping)

Storage (Parking Garage)

Mechanical (Fireplace)

Storage (Warehouse)

150,000

Mechanical (Hydronic)

Utility (General)

497,000

Utility (Private Garage)

50,000

BUILDING PERMITS ISSUED TO DATE

2021 VALUATION

NO.

2020 VALUATION

2739

146,449,697

1597

289,981,983

Single Family Dwelling

201

71,528,734

183

56,623,065

Multi-Family Buildings Total Units: 395

48,440,000

17,910,000

TRADE PERMITS ISSUED TO DATE

7977

102,617,080

8141

84,692,654

Electrical

3356

48,134,263

3146

36,720,739

Electrical (Temp. Service)

Plumbing TOTAL PERMITS YTD

218

92,905

229

79,725

2446

29,184,090

2173

24,714,127

537

764,066

554

828,227

278

1,396,212

256

1,114,335

136

7,195,773

136

5,060,072

1794

18,432,863

1648

16,176,429

10716

559,857,712

9738

426,170,051

EXISTING COMMERCIAL Addition

12,826,340

2,176,000

10,769,785

18,569,132

Structural Shell

140,000

“White Box”

Interior Demolition Only

Other Phased Permits

Alterations

OTHER CONSTRUCTION Business Signs

40,185

70,977

Advertising Signs

3,362,231

614,999

Footings & Foundations Demolition

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

OCTOBER 2021

PINE ISLAND

BUILDING PERMITS

NEW RESIDENTIAL

NUMBER

VALUATION

Single Family Detached

408,000

Single Family Attached

Basement Finish

Deck Addition

Existing Residential

23 | FOUNDATIONS NEWSLTR

OLMSTED COUNTY PERMITS YTD

2021

VALUATION

2020

VALUATION

Addition

5,546,312

15,205,763

Single Family-Attached

3,265,750

1,316,240

1,108,076

Deck

253,324

150,028

Addition

632,964

397,262

159

2,160,783

1,407,611

156,679

69,192

RESIDENTIAL

2020

VALUATION

121,056

422,867

Alterations

286,700

640,767

Re-roofing

3,900

8,250

Pool, Retaining Wall, etc.

255,554

415,671

Manufactured Homes

3,430

Mechanical

184

1,431,335

172

1,860,603

Plumbing

101

935,663

104

1,261,642

658

31,147,715

518

21,823,876

OTHER STRUCTURES

Alterations Garage Addition

MISCELLANEOUS PERMITS

NEW COMMERCIAL/INDUSTRIAL Recreational

Church/Religious

235,440

0 236,059 0

Industrial/Warehouse

2,985,531

Service/Repair Station

Store/Restaurant

336,786

Nonresidential Building

1,154,159

355,968

2021

2020

VALUATION $3,342,863 PERMITS 31

VALUATION

COMMERCIAL/INDUSTRIAL

Single Family-Detached Garage

2021

NEW RESIDENTIAL

OCTOBER 2021

VALUATION $1,325,200 PERMITS 9

VALUATION $2,900 PERMITS 2

BYRON

VALUATION $4,000 PERMITS 1

VALUATION $380,688 PERMITS 10

EYOTA

TOTAL PERMITS

BYRON NOW INCLUDED IN OLMSTED COUNTY PERMITS

*As of newsletter printing $1,300 missing from Stewartville’s plumbing totals

VALUATION $673,238 PERMITS 14

OLMSTED COUNTY PERMITS OCTOBER

VALUATION $1,406,884 PERMITS 19

MARION

VALUATION $63,547 PERMITS 10

ORONOCO TWP

VALUATION VALUATION $0 $44,114 PERMITS PERMITS 0 1

VALUATION VALUATION $1,575,453 $1,056,445 PERMITS PERMITS 30 40

QUINCY

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 10-2018

10-2019

10-2020

10-2021

10-2018

10-2019

10-2020

10-2021

10-2018

10-2019

10-2020

10-2021

10-2018

10-2019

10-2020

10-2021

10-2018

10-2019

10-2020

10-2021

10-2018

10-2019

10-2020

10-2021

10-2018

10-2019

10-2020

10-2021

10-2018

10-2019

10-2020

10-2021

10-2018

10-2019

10-2020

10-2021

10-2018

10-2019

10-2020

10-2021

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

10-2020

10-2021

Percent Change

YTD 2020 YTD 2021

607

580

- 4.4%

6,183

6,270

+ 1.4%

591

560

- 5.2%

5,845

5,699

- 2.5%

722

618

- 14.4%

5,545

5,473

- 1.3%

- 39.5%

- 42.6%

$230,000

$250,000

+ 8.7%

$222,500

$245,000

+ 10.1%

$258,972

$283,866

+ 9.6%

$246,914

$276,705

+ 12.1%

98.7%

99.2%

+ 0.5%

97.8%

100.2%

+ 2.5%

191

170

- 11.0%

198

173

- 12.6%

923

816

- 11.6%

1.7

1.5

- 11.8%

Percent Change

24 | SEPTEMBER - OCTOBER 2021

Building Materials Prices Post Record Year-ToDate Increase through October BY DAVID LOGAN on OCTOBER 14, 2021 The prices of goods used in residential construction ex-energy climbed 0.8% in October (not seasonally adjusted), according to the latest Producer Price Index (PPI) report released by the Bureau of Labor Statistics. The increase comes on the heels of two consecutive monthly declines largely driven by steep declines in lumber and plywood prices. The price index of services inputs to residential construction decreased 1.3% in October as a reduction in the gross profit margins of wholesalers and retailers outweighed continued increases in transportation, warehousing, and professional services.

The PPI of most durable goods for a given month is largely based on prices paid for goods shipped in the survey month. This can result in lags relative to cash market prices during periods of long lead times. Ready-Mix Concrete

Steel mill products prices climbed 4.8% in October following 5.0% and 5.1% increases in August and September, respectively. Since its last decline in August 2020, the index has climbed 145.6% and prices have risen 116.9% in 2021, year-to-date.

The PPI for ready-mix concrete (RMC) gained 0.6% in October after falling 0.5% in September. The index for RMC has risen 6.4% since January 2020 and 4.8% YTD—the largest year-to-date increase in October since 2006.

Building materials prices have increased 12.2% year-to-date after climbing 4.5% over the same period in 2020. In contrast, the price index of services inputs to residential construction has increased less in 2021 (+8.1%) than it did over the first 10 months of 2020 (+12.0%).

At the regional level, prices decreased in the Northeast (-3.4%) and Midwest (-3.4%) while prices edged higher in the South (+1.3%) and West (+3.3%) regions.

The price of all goods inputs to residential construction (including energy) has risen 14.5% thus far in 2021, climbing more than eight times faster than over the first 10 months of 2020. The year-to-date increase is double that of the previous year-to-date October increase (+7.1% in 2008).

Steel Products

The monthly change in the steel mill products PPI increased by more than 10% only three times (in 1947, 1948, and 2008) over the 80-year period ending in 2020. Monthly increases have exceeded that mark four times in 2021. Other Building Materials The chart below shows the 12-month and yearto-date price changes of other price indices relevant to the residential construction industry.

Gypsum Products The PPI for gypsum products increased 2.1% in October—the eighth consecutive monthly increase. Although gypsum products prices fell 3.3% between January and October 2020, the index has increased 25.7% in the months since.

Goods

With the recent passage of the Infrastructure Investment and Jobs Act (a.k.a. the Bipartisan Infrastructure Bill), the Construction Materials index is particularly salient. This index, which has increased 26.3% year-to-date and 37.8% since January 2020, is much more heavily weighted with products used in large amounts in the production of “traditional” infrastructure (e.g., roads, bridges, rail).

Softwood Lumber

Services

The PPI for softwood lumber (seasonally adjusted) increased 9.1% in October—its first monthly increase since May. The index had declined by more than half over the four months prior but, as was noted in last month’s PPI post, the recent trend of cash prices “[suggested] the softwood lumber PPI [would] increase in October.”

The price of services used as inputs to residential construction decreased for the fourth consecutive month in October and has fallen 10.5% over that period. The decline can be attributed to a 14.6% drop in the relevant wholesale and retail indexes which together account for roughly two-thirds of the PPI for “inputs to residential construction, services.”

Gypsum products prices are up 19.0%, year-todate, by far the largest October YTD increase since seasonally adjusted data became available in 2012.

The trade services PPI measures changes in the nominal gross margins for goods sold by retailers and wholesalers. Unsurprisingly, hardware and building materials retailers account for most of the trade services included as residential construction inputs. The PPI for building materials retailers decreased 2.6% in October, although nominal gross margins for building materials wholesalers increased 4.8%.

25 | FOUNDATIONS NEWSLTR

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• 200 characters on search results

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CONTACT: Elizabeth Sullivan-Burton Elizabeth@RochesterAreaBuilders.com

WEBSITE BROCHURE

26 | NOVEMBER - DECEMBER 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

27 | FOUNDATIONS NEWSLTR