M AYJUNE2013

Rochester Area Builders, Inc.a publication of

FOUNDATIONS

F O U N DAT I O N S

BUILDERS COUNCILCOMMERCIAL

a d i v i s i o n o f R o c h e s t e r A r e a B u i l d e r s , I n c .

a division of rochester area builders, inc.

REMODELERS

A&A Electric & Underground, Inc. + AB Systems, Inc. + Abbco Company + ABC Seamless of Rochester, Inc. + ABC Supply Company, Inc. + Above All Roofing of Rochester, Inc. + Accord Electric, Inc. + Adair Electric Company + Adamson Motors + Advanced Builders & Remodeling + Advanced Builders, LLC + Advanced Building Center, Inc. + Advanced Disposal + Advan-tage Cabinets, Inc. + AgStar Home Mortgage Services + Alexander & Sons Builders + Mike Allen Homes, LLC + Allen Outdoor Solutions, LLC + All-Star Basements + Alpha Video & Audio + Altra Federal Credit Union + American Engineering Testing, Inc. + American Fence Company of MN, LLC + American Waterworks + Ames Construction, Inc. + Andersen Windows, Inc. + Anderson Construction + Appliance Village Company + Arcon Development, Inc. + Arrow Building Center + Associated Bank + Athelon Enterprises, LLC + B&C Plumbing & Heating, Inc. + Al Barker Custom Homes, Inc. + Barrier Free Access, Inc. + Basement Water Control + Batzel Builders, Inc. + Beckley's Office Products + Beetles Bar & Grill, Inc. + Alvin E. Benike, Inc. + Scott Berberich Construction, LLC + Scott Berg Construction, LLC + Bessler Management + Beyond Kitchens, LLC + Bigelow & Lennon Construction, LLC + Bigelow Homes + K.W. Billman, Inc. + The Blue Book of Building & Construction + Bobcat of Rochester + Bob's Construction, Inc. + The Boldt Company + Bouquet Builders, Inc. + Bowman's Door Solutions + Brandrup Builders + Brannt Valley Excavating, Inc. + Brauer Roofing, Inc. + Braun Intertec Corporation + Brekke Fireplace Shoppe + Bricewood, LLC + Briese Iron Works, Inc. + Bright Ideas + Brinkman Builders, LLC + Brock White Company + Tom Brogan Heating & Air Conditioning + Larry Brooks Builders + Brooks Excavating Company, Inc. + C.O. Brown Agency + Bruce Bucknell Construction, Inc. + Budget Blinds + Burdick Builders, Inc. + By Design Builders + Byrne Electric, Inc. + Cachiaras Building & Remodeling + Cambria + Canadian Honker Entities + Carpet One + Castlewood Homes, Inc. + Century Painting & Decorating, LLC + Charter Communications/Media + Chladeks Construction, LLC + Chosen Valley Testing, Inc. + Christian Brothers Cabinets, Inc. + City of Byron + City of Chatfield + City of Eyota + City of Preston + City of Spring Valley + Citywide Insulation, Inc. + Clear Channel Radio (Laser/Fox/KFAN) + Clements Chevrolet Cadillac Subaru + Closet Organizers + Coldwell Banker Burnet + Commercial Leasing Services + Construction Partnership + Coordinated Business Systems, Ltd. + Corban Homes, LLC + Cordes Construction + Cornerstone Builders & Real Estate, Inc. + Cornerstone Designs of Rochester, Inc. + Corporate Web Services, Inc. + Counselor Realty of Rochester, Inc. + Countryside Builders, LLC + Cravath Homes, LLC, dba Accessibility Solutions + Creative Hardwood Floors + Crescent Electric Supply Company + CRW architecture + design group, inc. + Culligan of Rochester & Kasson + Cumulus Radio + Curry's Custom Cut Gutter, LLC + Curtin Drywall, Inc. + Custom Alarm/Custom Communications, Inc. + Custom Retaining Walls & Landscaping, Inc. + D2E, LLC + Dahl Home Builders, Inc. + Data-Smart Computers, Inc. + Davies Printing Company + DeGeus Tile & Granite + Derby Construction LLC + The Design Connection + Design Studio B + DeWitz Home Builders, Inc. + DMC Plumbing & Heating, Inc. + Dolan's Landscape Center, Inc. + DoubleTree by Hilton - Mayo Clinic Area + DreamMaker Bath & Kitchen + Dunham Associates, Inc. + Dunlap & Seeger + JE Dunn Construction + M.H. Dutton Construction, LLC + E&M Consulting, Inc. + Eastwood Bank + eci, llc + Eckert Construction, Inc. + Edel Construction, LLC + Edge Homes & Construction, Inc. + Edina Realty Home Services + Todd Eidem Construction, Inc. + Elcor Construction, Inc. + Elcor Realty of Rochester, Inc. + Electrical Solutions & Service + Elias Construction, LLC + Energy Panel Structures + Energy Products & Design, Inc. + Enventis + Excel Homes + The Excelsior Group, LLC + Expert Insulation, Inc. + Express Employment Professionals + Extreme Panel Technologies, Inc. + Fairway Outdoor Advertising, LLC + Ferguson Enterprises + Fieldstone Family Homes, Inc. + First Alliance Credit Union + First Choice Homes, LLC + First General Services of SE MN + First Security Bank + R. Fleming Construction, Inc. + Ford Metro Glass, Inc. + Foster Construction, Inc. + Franklin Energy + Friedrich Construction, Inc. + Chris Fritsch Custom Homes, LLC + Gander Plumbing & Heating, Inc. + Dale Gathje Construction, Inc. + GDM Trailers, LLC + Steve Gentry Construction, LLC + Gerhard's + Gift Book Plus + Robert Gill Builder, Inc. + Global Resolve + Goodin Company + Great River Overhead Door + Green Lawncare Irrigation & Service Co. + Greenway Cooperative Service Company + Gregor Builders, Inc. + Gulf Eagle Supply + Gutter Topper of Minnesota/TAG Construction, LLC + Habitat for Humanity - Rochester Area + Habitat for Humanity - Winona/Fillmore County dba Habitat ReStore + Haley Comfort/FireSide by Haley + W.L. Hall Company + Hammer Homes, Inc. + Hanson Construction & Specialty Cabinets, LLC + Hayfield Window & Door Company + HDR Architecture + Heartman Insurance + Heartwood Homes of Rochester, Inc. + Heim Drywall Enterprises, Inc. + Brandon Henderson's Construction Plus, LLC + Hentges Glass Company + HG Electric, LLC + HGA Architects and Engineers + Hicks Electric, Inc. + Higgins Custom Cabinetry + High Definition Homes, LLC + Hiller's Flooring America + HiMEC at Home + Jeff Hinkle Custom Homes + Hirshfield's Decorating Center + Holt Title Guaranty Company, Inc. + The Home Depot + Home Federal Savings Bank + Home Improvement Professionals, Inc. + Home Systems Installation, LLC + Howe Countertops + Hunt Electric Corporation + Hutch's Custom Cabinets + Int'l Brthrhd of Electrical Wrkrs Local 343 + Innovative Surfaces, Inc. + Insty Prints + Insul-Seal Home Insulation + IntegraSpec Central/Jeff Mueller Construction + Integrity Custom Homes, Inc. + J&M Consulting + Michael Jack, LLC + J.P. Johnson Custom Builders, Inc. + JP's Construction Remodeling & Repair, Inc. + K&M Glass Company + K&S Heating, A/C, Plumbing & Electrical + Kahler Grand Hotel + Tom Kalmes Construction, Inc. + Kane & Johnson Architects, Inc. + Keller Williams Premier Realty + Key Builders, Inc. + King's Flooring, LLC + Kinzler Construction Services, Inc. + Kirkland Enterprises, LLC + Kitchen Concepts + The Kitchen Design Studio + Kitchens Plus + Gary Kline Roofing, Inc. + Knutson Construction Services + Koball's Poured Walls, Inc. + Komitt Concrete, Inc. + Kraus-Anderson Construction Company + Kreofsky Building Supplies + Kruger Electric, Inc. + Kruse Lumber + KTTC/KXLT-TV + Kuehn Motor Company, Inc. + Kuntz Electric, Inc. + Kwik Trip, Inc. + L&L Cabinets + Lacina Siding & Windows, Inc. + Laitala Tile Company + Larsen Industries, Inc. + Larson Siding & Windows + Legends Concrete, Inc. + Leitzen Concrete Products, Inc. + Leyendecker Homebuild- ers, LLC + Lodermeier's, Inc. + Lowe's Home Improvement + Lumber Liquidators + Ed Lunn Construction, Inc. + Luxury Bath Remodeling + Maas Companies, Inc. + Maier Tree & Lawn + Majestic Homes, Inc. + R.J. Manemann Custom Homes + Maplewood Homes, LLC + Markham Homes, LLC + markit + Marvin Windows & Doors + Massey Land Surveying & Engineering + Master Builders, Inc. + Mavo Systems, Inc. + McGhie & Betts, Inc. + McGladrey + McGough Construction + MDH, Inc. + Meadow Lakes Builders + MEC Construction, Inc. + Med City Builders of Rochester, LLC + Medcare Products, Inc. + Menards - South + MEP Associates + Merchants Bank + M e r i t Contracting, Inc. + Michael's Custom Cabinets, Inc. + Mid American Financial Group + Midwest LeafGuard of R o c h e s - ter, Inc. + Minnesota Energy Resources Corporation + Minnwest Bank + MLT Group + Morris Concrete, Inc. + M o s - quito Squad of SE MN + Larry Newman Drywall + Nickelson Painting, Inc. + North Central States Regional Council + Northern Lights & Furnishings + Nuss Truck & Equipment + Ohly Law Office + Olmsted County Journal + Olmsted County Lumber Mart, Inc. + Olmsted County Planning Dept, Insp. Div. + Olmsted County Public Health + Olmsted National Bank + J.B. O'Meara Company + OnSite + Otis Custom Homes, LLC + Owner's Plumbing, Inc. + Paape Energy Services + Pahl & Kaye, Inc. + Palmer Soderberg, Inc. + Paper & Graphics, Inc. + Walt Pappas Construction + Paramark Corporation + Payne Company + PC Applications Consultants, Inc. + Pearson Builders, Inc. + Pebble Creek/Western Walls + Pegram & Dexter Construction & Design + Pella Windows & Doors + Pendle Hansen Bagne Insurance + Penz Custom Homes, Inc. + People's Energy Coopera- tive + G. Pestka Appraisals + Peterson Well Drilling, Inc. + Pine Island Lumber, Inc. + Pine One Hour Heating & Air Conditioning + Pompeii Painting, Inc. + P o s t - Bulletin Company, LLC + Prehn Building Sales, Inc. + Premier Bank Roches- ter + Premier Builders of Rochester, Inc. + Price Financial Services, Inc. + Prime Time Painting of Rochester, LLC + PrimeLending + Priority

Claims Service + Pro Image Promotions & Apparel + ProBuild Company, LLC + Quality Overhead Door Company, Inc. +

Quality Siding & Window, Inc. + Michael Quinn Law Office + R&M Development Company + Radcliffe Homes &

Remodeling + Range Construction, LLC + RCON Homes, Inc. + RCTC Carpentry Program +

RE/MAX of Rochester + Region Millworks, Inc. + David Reiland Building Contractor, LLC +

Reliable Contractors, Inc. + Reynolds Design and Construction + Rochester Area Appraisals, LLC + Rochester Area

Chamber of Commerce + Rochester Area Econ. Development, Inc. + Rochester

A s - phalt, Inc. + Rochester Building Safety Depart- ment + Rochester Concrete Products, LLC + Rochester International Event Center + Rochester Overhead Door Company + Rochester Plumbing & Heating/Roto Rooter + Rochester Public Utilities + Rochester Public Works + Rochester Ready Mix Concrete Co + Rochester Service Company / SL Contract-ing + Rochester Sign Service, Inc. + Rochester Title & Escrow Company, Inc. + Rock Solid Retaining Walls + Ronningen Roofing, Inc. + RSP Architects + Ryan & Grinde, Ltd. + Ryan Electric, Inc. + Ryan Windows &

Siding, Inc. + Sargent's Landscape Nursery, Inc. + Schad Tracy Signs, Inc. + Schmidt Goodman Office Products + Schoeppner, Inc. + Schumann Granahan Hesse & Wilson, Ltd. + Schwab, LLC + Schwickert’s Tecta America, LLC + Seavey Builders, Inc. + Servpro of Rochester, Inc. + Dan Severson Builders, Inc. + Shana-han Building & Remodeling, LLC + Sherwin Williams Company + Sign Here, Inc. + Simonson Builders, LLC + Smart Home Innovations & Engineering, Inc. + Smith Schafer & Associates, Ltd. + Solar Connection, Inc. + Somerby Golf Community + Space Concepts, Inc. + Spahn & Rose Lumber Company + Greg Speedling Contracting, Inc. + Spring Valley Overhead Door, Inc. + Stadsvold's Lawn & Landscape + Stantec + Steel Constructors, Inc. + Sterling State Bank + Stevens Heating, Inc. + Stewart-ville Economic Development Authority + Stier Construction, Inc. + StoneBridge Builders + Structural Design Group, Inc. + Struve's Paint + Robert G. Suk Law Office, PA + Summit Custom Homes, LLC + Summit Fire Protection Company + Superior Mechanical + Craig Swanson Builders, Inc. + Swenke Company, Inc. + Kenny Sylvester Construction, LLC + Synergy Products + Tag's Drywall, Inc. + Tamarack Materials of Rochester, Inc. + TDS Metrocom + Teigen Paper & Supply, Inc. + Thermo-Tech Windows + Thiemann Construction, Inc. + Thimijan Custom Homes, LLC + Think Mutual Bank + Thomas Tool & Supply + Thompson's Garage Door and Openers + Tile Superstore & More + TLC Surfaces + Tonna Mechanical, Inc. + Top Shop of Rochester, Inc. + Total Electric of Rochester, Inc. + Tradesmen International, Inc. + Traditional Wood Builders + Tri Star Insulation + Tri State Insulated Concrete Forms + TSP Architects & Engineers + Turri Crane Service, Inc. + Turtle Creek Construction, Inc. + TW Construction Solutions, LLC + United Heating & Cooling + United Products Corporation + United Rentals + The Urban Studio, LLC + US Bank + Valor Mechanical, Inc. + Val-U-Blinds + Van Haren ICF + Vector Windows + Veit Companies + Vertical Limit Construction + Viking Automatic Sprinkler Company + Viking Electric Supply + Vision Homes & Remodeling, LLC + Vollara Global/DPS + WA Insurance + Waddell & Reed + Warners' Stellian Appliance Co., Inc. + Waste Management + Weather Shield Roofing, LLC + Weis Builders, Inc. + Greg Wellik Construction + Wells Fargo Bank Minnesota NA + Wells Fargo Home Mortgage + Wendland Utz + Werner Electric Supply + West Bank + Westridge Hills, Inc. + Jim Whiting Nursery & Garden Center, Inc. + Widseth Smith Nolting + Wildwood Bar and Grill + Winona Excavating

Company + Wolter & Raak, Ltd. + Women Communications, LLC + Woodruff Company + Wright Homes, Inc. + WT Lighting + Xcel Energy + XRG Concepts, LLC + Yaggy Colby Associates + Rick Yerhot Builder + Your Home Improvement Company + Zumbro Haven, LLC + Zumbrota Ford

a division of the Rochester Area Builders, Inc.

DEVELOPMENTCOUNCILDC

This Space AvailableAdvertise in this space for just $140 an issue,

or $650 a year (6 issues)

Call Ryan at507-282-7698

Www.RochesterAreaBuilders.comMay/June 2013 | 3

Index News from the President .......................3

RAB Golf Outing ....................................4

June General Membership Meeting .....5

Association Scrapbook ........................6-7

Government Affairs Update ..................8

Committee Updates ...............................9

Builders, Brats, & Building Safety .......10

Thank Yous! ..........................................10

Remodelers Council ............................11

Commercial Builders Council .............12

April BAM Update ...............................13

May BAM Update .................................14

Public Works Dept. News .....................15

Rochester Permits ................................16

Byron/Pine Island Permits ..................17

Real Estate Data ...................................17

RAB 60th Anniversary ..........................18

Membership Information ...............18-19

Interest Rates Yield No Recession .......20

NAHB Member Advantage ..................21

Executive Director/Editor John Eischen

Production Ryan Kling-Punt

The Rochester Builders newsletter is the official publication of Rochester Area Builders, Inc. This newsletter is published and distributed bi-monthly to its members and others associated with the building industry. Neither the advertisers, nor RAB will be responsible or liable for misinforma-tion, misprints, typographical errors, etc., herein contained.

108 Elton Hills Lane NW Rochester, MN 55901 507-282-7698 507-282-6351 Fax E-mail RAB@rochesterareabuilders.com www.RochesterAreaBuilders.com

News from the PresidentMay 22nd, 2013

Well, I can finally say with certainty that spring has arrived! My heart goes out to all

those affected by the recent storms throughout our nation. With spring comes a full force effort to get basements in the ground for residential new construction. With the housing stock down and permits on the rise, I believe 2013 will be the year of the housing comeback! All who are in the industry are aware of the cyclical nature of housing, and this return is long awaited!

For those who have weathered the economic storm and were fortunate to survive, and for those who are new to the housing industry, it is now time to lend a hand (or should I say hammer) to keep our Association strong and vibrant. We need to share experiences, exchange best practices, stay knowledgeable in legislative and regulatory efforts and effectiveness, and continue to provide innovative ideas and solid market practices.

I encourage you to get involved, and recognize the professional responsibility we all have to each other. The economic and social benefits of a healthy housing market are immense! Being a part of a trade organization that promotes the industry in which you work allows you to contribute to the issues that influence your job the most. RAB is THE tool for every business owner who is touched by the construction industry! For those who haven’t yet had the opportunity to serve the association, please start now. It will not only benefit you, but our entire industry.

Do good by doing good; let’s build this house together!

Best Regards,

Jean DeWitz2013 RAB President

www.RochesterAreaBuilders.com4 | May/June 2013

Join us at the RAB Golf Outing

WILLOW CREEK GOLF COURSE

1700 48th St SW

Presented By:

New This Year!The 11 AM Shotgun start means you’re done earlier, so you can attend Thursday’s on First, your kids’ sporting

events, or you can just go home and relax!

New Contests:BREAK THE GLASSSponsored by Marvin WindowsIt time for you to make your Big Break! We’ve got a new contest on the driving range this year, where you can relive your childhood days of playing golf in the backyard. But this time if you break a window, you won’t get grounded, and you might just win big!

WIN A NEW CAR!Sponsored by Clements Chevrolet Cadillac SubaruThis one speaks for itself! Get a hole in one on #6 and you win!

Rochester Area Builders, Inc. is excited to be bringing you our annual golf outing, presented by Advanced Disposal. Willow Creek Golf

Course will be hosting the event, which includes lunch, an 18 hole round on Willow Creek, and a “19th Hole” appetizer reception following the round. Our format is a four-person scramble - you can form your own

four-some or we will assign you to a team. We hope you’ll join us for a great day of Golf, Networking and Fun!

Hours:10:00 A.M. Registration Starts - Lunch provided by Think Mutual Bank -11:00 A.M. Shotgun Start 4:30 P.M. 19th Hole - Appetizers and Social Time5:00 P.M. Announcements and Prizes

Thursday, June 6, 2013

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President Jean DeWitz, DeWitz Home Builders, Inc.Vice President Kevin Worden, Rochester Area Habitat for Humanity

Secretary Kathy Einck, Maplewood Homes, LLC

Treasurer Tony Joseph, Pompeii Painting, Inc.Past President Jennifer Maass, Kitchen Concepts & Creative LivingDirectors Jeremy Bigelow, Bigelow Homes John Eckerman, The Boldt Company Delbert Feenstra, Knutson Construction Services Patty Hanson, Rochester Public Utilities Carla Kilpatrick, Home Federal Savings Bank Bruce Laufenburger, First General Services of SE MN Braden Markham, Markham Homes, LLC Sam Peyton, King’s Flooring, LLC Lindsey Rippentrop, Olmsted National Bank

Builders Exchange Council Representatives Tony Wintheiser, Hentges Glass, Chair Travis Schmidt, Weis Builders, Inc., Vice Chair Mike Benike, A.E. Benike, Inc., Past ChairCommercial Builders Council Sue Hanson, Rochester Title & Escrow Company, Inc., Chair Chris Terry, Knutson Construction Services, Vice ChairDevelopment Council Chair Mark Engel, Yaggy Colby Associates

Remodelers Council Chair Chris Ramsey, K&S Heating, A/C, Plumbing & Electrical

National Life Directors Joe Weis, Weis Builders, Inc.National Directors Steve Buss, Cornerstone Builders & Real Estate, Inc. Mike Coats, MEC Construction, Inc., Rep. David Kane, Kane & Johnson Architects, Inc.State Directors Jim Gander, Superior Mechanical John McGuine, J&M Consulting, LLC Mike Paradise, Bigelow Homes David Pederson, Wendland Utz, Rep. Dan Severson, Dan Severson Builders, Inc.

Executive Director John Eischen

JEischen@RochesterAreaBuilders.com

Staff Audra Bolduan

ABolduan@RochesterAreaBuilders.com Marketing, Builders Exchange Trustees

Rick Dold RDold@RochesterAreaBuilders.com Government Affairs, Commercial Builders Council, Development Council, Building Safety Advisory Group, Public Works Advisory Group, Community Relations, Green Building, Marketing

Sharill Mueller SMueller@RochesterAreaBuilders.com Home Show, Showcase Committee

Rebekah Nielsen RNielsen@RochesterAreaBuilders.com Ambassadors, Education, Membership,

Program, Spike Club, Remodelers Council -Executive-Home Tour-

Ryan Kling-Punt RPunt@RochesterAreaBuilders.com Golf Outing, Sporting Clays, Directory, Newsletter, E-News Update

Join us at the June Networking NightTuesday, June 25th,

5:00 - 7:00 pmat Gerhards,

3815 Highway 14 West

Hosted By

ABOUT GERHARDS

Gerhards was established in 1986 in honor of the late Gerhard ‘Gary’ Poehling whose father started a wholesale company in 1897 known today as First Supply. In 1940, Gary established the plumbing showroom concept for contractors and homeowners to view kitchen and bath product displays. He worked as a truck driver in the early years and later as President and Chairman before his passing in 1998.

Gary’s legendary knowledge of product, customers, and customer’s needs combined to make him liked and respected by those who dealt with him. August 11, 2011 commemorated 25 years of the Gerhards name and began a new chapter of product inspiration, innovation and unmatched service.

Today, Gerhards is staffed with a dedicated, professional design team to assist in the selection process. Choose from a multitude of colors, materials and design styles as you browse hundreds of kitchen and bath products on display and ready to transform your new home or remodel.

www.RochesterAreaBuilders.com6 | May/June 2013

Association Scrapbook April General Membership

Meeting

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Association ScrapbookRAB MatchGame!

www.RochesterAreaBuilders.com8 | May/June 2013

Government Affairs by Rick Dold, Public Affairs Director

For More Information, Visit:National Association of Home Builders: www.nahb.com

Builders Association of Minnesota: www.bamn.org

Tree Ordinance – Recently, the Planning and Zoning department completed a draft of the amended tree ordinance that included changes to the payment-in-lieu provision, as well as a few other provisions aimed at addressing issues with the current tree ordinance. There are two primary concerns we are focusing on right now with the tree ordinance amendment. First, we are working to ensure that developers do not have to pay for trees that will not fit on the property. Second, we are working with both planning and zoning and the parks department to make sure staff has enhanced decision making authority under the new ordinance to avoid the variance process. We are confident that the city and county staff we have worked with on the issue have a solid understanding of our concerns and are working to address them.

Permitting Task Force – The Permitting Task Force submitted their final report to the city council on May 6th and offered the following two suggestions to improve the permitting process here in Rochester.

1.) The Task Force recommended that the City hire Development/Growth Director with the charge of breaking down the walls between the departments and improving internal coordination between Building Safety, Planning and Zoning, Public Works, and all other departments implicated in the building process.

2.) The Task Force recommended that additional resources be put behind the current software used by the City for permitting to ensure they begin using the program to the utmost of its abilities.

We look forward to working with the city council and staff on making these changes and ensuring the all of the changes made go towards improving the permitting process in a way that makes sense for everyone involved.

Local Contracting Policy – Both the city council and county board have expressed an interest and intent to include within their bidding processes a provision or policy that takes into account whether a contractor is local. We are not advocating for or against the best value bidding process but, it appears to be the only way in which such a provision or policy may be adopted. Conversations are ongoing with both the city and county attorney to find a way in which we can adopt a local contracting policy that everyone agrees best serves the interest

of the our members, the city, and the county.

Heritage Preservation – The new Heritage Preservation Commission will be nominated for appointment by Mayor Ardell Brede at the next city council meeting on June 3rd. Once the nominees are confirmed to the Commission they will start creating a list of properties to be designated as historic. However, because there are no existing requirements placed on a designated property by ordinance it is unclear as to the practical effect of designation at this time other than to create an opportunity for public dialogue at City Council meetings.

State Level Issues – The two primary issues faced by the building industry this legislative session were the ultimate passage of DMC and the inclusion of a sprinkler mandate in the newest code iteration to be published by the Minnesota Department of Labor and Industry (“DOLI”).

1.) The DMC infrastructure bill has been adopted and now we will move on to the community visioning stage of the DMC process where citizens of Rochester, Olmsted County, and the surrounding area will start determining what this initiative will look like for everyone involved. For more details on DMC, go to DMC.MN, your official source for all things DMC.

2.) The sprinkler mandate for new homes 4500 sq.ft. or larger remains in the code and multiple attempts to attach a legislative amendment that would prohibit such a requirement did not make it out of the legislative session. DOLI has yet to publish the Statement of Need and Reasonableness (“SONAR”) required to ratify the new code provision regarding sprinklers. Once that SONAR is published, BAM will file an official challenge and start the administrative hearing process.

BAM continues to fight at the state level to ensure that other regulations and laws do not tamp down the ongoing recovery of our industry. For up to date information regarding what’s going on at BAM, go to bamn.org where you will find in depth information on other issues BAM is working on for builders in Minnesota.

If you have any questions, comments, or concerns regarding any of the above mentioned topics, please shoot me an email at RDold@RochesterAreaBuilders.com or give me call at 507-282-7698 and I’ll be happy to answer your questions.

Follow us on Twitter:@RochAreaBuilder

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Committee UpdatesNOMINATING COMMITTEECHAIRPERSON: Jean DeWitz, DeWitz Home Builders

The Nominating Committee will be meeting soon to discuss nominations for the 2014 Board of Directors, as well as chairpersons for our many committees and councils. If you would like to recommend a member for a position, or if you would like to recommend yourself, please call John at the office 282-7698! We are always looking for new people to be involved in the management of our association.

SHOWCASE COMMITTEECHAIRPERSON: Travis Nemechek, Kruse Lumber

The Fall Showcase of Homes is scheduled for September 14th, 15th and 22nd, 23rd. Have you started building a home to enter in the Showcase? It’s a wonderful opportunity to have your home seen by thousands of potential customers. Information packets have been mailed to residential builders and the first of three deadlines is June 20th.

PROGRAM COMMITTEECHAIRPERSON: Carissa Frericks, Rochester Title & Escrow Company, Inc.

Summer Networking Nights are here, so Summer must be as well! The first will be hosted by Gerhards on June 25th and the second will be hosted by Rochester Area Builders on July 30th. All meetings will start at 5:00 PM and end at 7:00 PM. Door prize drawings are held around 6:30 PM. The meetings are more casual so that you can come whenever you want and stay as long as you want – they are lots of fun and are a great opportunity for networking!

Do you have your calendar marked for the Annual Christmas Party? It is scheduled for Friday, December 6th at the Doubletree in Downtown Rochester. It’s going to be fantastic! You won’t want to miss the fun.

Committee ChairpersonsAMBASSADORSCurt Wigham, Express Employment ProfessionalsAWARDSKathy Einck, Maplewood Homes, LLCBUILDING MAINTENANCETJ Schutz, Advanced Building Center, Inc.BUILDING SAFETY ADVISORYAaron Benike, A. E. Benike, Inc..COMMUNITY RELATIONSTracy Hoover, Ferguson EnterprisesDISPUTE RESOLUTIONJay Burke, Heartwood Homes of Rochester, Inc.EDUCATIONLes Radcliffe, Radcliffe Homes & RemodelingEXECUTIVE Jean DeWitz, DeWitz Home Builders, Inc.FINANCETony Joseph, Pompeii Painting, Inc.GOLF OUTINGJill Eggerichs, McGladreyGOVERNMENT AFFAIRSRory Lenton, Minnesota Energy Resources CorporationGREEN BUILDINGCurt Shellum, Solar Connection, Inc.HOME SHOW – 2013Jeff Kalmes, Hillers Flooring AmericaMARKETINGJeff Weisz, Data-Smart Computers, Inc.MEMBERSHIP & RETENTIONAdam Benike, A. E. Benike, Inc.NOMINATINGJean DeWitz, DeWitz Home Builders, Inc. PERSONNELDiane Quinn, Beyond Kitchens, LLCPROGRAMCarissa Frericks, Rochester Title & Escrow Company, Inc.PUBLIC WORKS ADVISORYNONESHOWCASE OF HOMESTravis Nemechek, Kruse LumberSPIKE CLUBJim Buchan, Energy Products & Design, Inc.SPORTING CLAYSJim Nicholas, Wildwood Bar and Grill

CouncilsBER EXECUTIVE COMMITTEETony Wintheiser, Hentges Glass CompanyCBC EXECUTIVE COMMITTEESue Hanson, Rochester Title & Escrow Company, Inc.DEVELOPMENT COUNCILMark Engel, Yaggy Colby AssociatesREMODELERS EXECUTIVE COMMITTEEChris Ramsey, K&S Heating, A/C, Plumbing & ElectricalREMODELERS TOURKaren Blissenbach, Design Studio BREMODEL IT RIGHT DISPLAYBob Robertson, Radcliffe Homes & Remodeling

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March Networking NightThank you to Lowe’s Home Improvement for hosting the March 26, 2013 Networking Night. Mike Dass and the rest of the Lowe’s staff did a great job with the food and gave away lots of goodies for those in attendance. Thanks, Mike!

April General Membership MeetingThank you to Dunlap & Seeger for sponsoring the social hour. They were represented by Tom Jacobson. Thanks, Dunlap & Seeger for all you do to support RAB and our industry! Thanks to ProBuild Company, LLC for providing the delicious array of desserts at the meeting. Gotta love Bunny Cake! They were represented by Donna Strobel.

GIVE AWAY’SCraig Richardt, Craig Swanson Builders, won the free dinner at The Loop compliments of Barb Flicker and the Post-Bulletin. Enjoy your dinner, Craig.

Match GameJohn Eckerman did a great job hosting! Thank you to him and to all the panelists who were a lot of fun! The panelists were Kathy Einck, Al Mannino, Dan Forliti, Sam Peyton, Christy Buchan, and Kevin Worden. Also, congrats to our winner, Delbert Feenstra, and our runner up, David Kane.

Thank You!

Builders, Brats & Building Safety

Attention Builder Members!

Join us on the 4th Wednesday of each month this summer for lunch and conversation with the Building Safety Department of the City of Rochester. While you enjoy brats and soda, you can get to know the inspectors and department heads, as well as be brought up to date on any code or department topics. Stop in for 20 minutes and get some food, or stay for the full 2 hours! The dates are:

Wednesday, June 26 11 am—1 pmWednesday, July 24 11 am—1 pm Wednesday, Aug. 28 11 am—1 pm

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EXECUTIVE COMMITTEEChairperson:Chris Ramsey, K&S Heating, A/C,

Plumbing & ElectricalVice Chairperson:Sam Peyton, King’s FlooringPast Chairperson:Alex Nahvi, Ferguson EnterprisesMembers-at-Large:Danny Bendix, Pella WindowsCarl Fugleberg, Prime Time Painting of

Rochester, LLCRick Hampel, Merit Contracting, Inc.Jerry Jensen, HiMEC at Home

COMMUNITY PROJECTThis year the Remodelers Council has decided to help Hiawatha Homes with a bathroom remodel. The project has a completion date of July 31, 2013. It will require some wall framing, electrical, plumbing, flat work, flooring, drywall, and painting. Basically almost everything our members do! If you would like to help and/or want more information contact Rebekah at the office or email rnielsen@rochesterareabuilders.com.

SUMMER OUTINGDate: Wednesday, July 17th, 6:00 P.M. – 9:00 P.MPlace: Rochester Trolley Tour ride to Salem Glen Winery

This year our Summer Outing will be a night at Salem Glen for wine tasting and networking. Trolley will depart the RAB parking lot at 6 pm sharp and return at 9 pm. Or, you can just meet us out at Salem Glen. Cost is $25 for trolley and wine tasting or $15 for wine tasting only. It will be a great evening of fun! Watch for registration information!

June MEETINGDate: Tuesday, June 16, 2012Time: 12:00 PMPlace: Ferguson Enterprises 3210 Prow Ln NWProgram: Showroom Visit & Networking

Members2013 Remodelers Council23 Builders - 57 Associates

ABC Supply Company, Inc.

* Advanced Builders, LLC* Alexander & Sons

Builders Andersen Windows, Inc. Appliance Village

Company* Barrier Free Access, Inc.* Scott Berberich

Construction, LLC Beyond Kitchens, LLC* Brandrup Builders* Bricewood, LLC Bright Ideas Carpet One* Cordes Construction Cornerstone Designs of

Rochester, Inc.* Cravath Homes, dba

Accessibility Solutions Creative Hardwood

Floors Culligan of Rochester &

Kasson Curtin Drywall, Inc. Custom Alarm/Custom

Communications, Inc. Custom Retaining Walls

& Landscaping, Inc. Derby Construction, LLC Design Studio B* DeWitz Home Builders,

Inc.* DreamMaker Bath &

Kitchen* Eckert Construction, Inc.* Edge Homes &

Construction* Elias Construction, LLC Energy Products &

Design, Inc. Expert Insulation, Inc. Ferguson Enterprises Gander Plumbing &

Heating, Inc. Gerhards Goodin Company Haley Comfort/Fireside

by Haley Heim Drywall

Enterprises, Inc. Hentges Glass Company Hiller’s Flooring America HiMec at Home Home Federal Savings

Bank Home Improvement

Professionals, Inc. Innovative Surfaces, Inc.* Integrity Custom Homes,

Inc.* Michael Jack, LLC* JP’s Construction

Remodeling & Repair, Inc.

K&S Heating, A/C, Plumbing & Electrical

King’s Flooring, LLC Kinzler Construction

Services, Inc. Kitchen Concepts Kreofsky Building

Supplies Kruger Electric, Inc. Kruse Lumber Larsen Industries, Inc. Larson Siding &

Windows Markit Marvin Windows &

Doors* Master Builders, Inc. Merit Contracting, Inc. Larry Newman Drywall* Walt Pappas

Construction Pella Windows & Doors

Pine One Hour Heating & Air Conditioning

Premier Bank Rochester Prime Time Painting of

Rochester, LLC ProBuild Company, LLC Quality Overhead Door

Company, Inc.* Radcliffe Homes &

Remodeling* Reynolds Design &

Construction* Ryan Windows & Siding,

Inc.* Seavey Builders, Inc.* Dan Severson Builders,

Inc. Struve’s Paint Superior Mechanical Synergy Products Tile Superstore & More TLC Surfaces Tonna Mechanical, Inc. Top Shop of Rochester,

Inc. United Products

Corporation Warners’ Stellian

Appliance Co., Inc. Wells Fargo Home

Mortgage

*Builder As of 4/16/13

a division of rochester area builders, inc.

REMODELERS

a division of rochesterarea builders, inc.

REMODE

LERS

www.RochesterAreaBuilders.com12 | May/June 2013

EXECUTIVE COMMITTEEChairperson: Sue Hanson, Rochester Title & Escrow Company, Inc.Vice Chairperson: Chris Terry, Knutson Construction ServicesPast Chairperson: Rob Jones, Superior Mechanical Architects, Inc.Members-at-Large:John Hill, Schwab, LLCShaun Knode, AB Systems, Inc.John Kuntz, Kuntz Electric, Inc.Levi Kaiser, A.E. Benike, Inc.Nick Leimer, Kraus-Anderson Construction Company

June MeetingThe Commercial Builders Council will be holding a legislative recap at their June 5th meeting. The meeting will be held at the Ramada Hotel & Conference Center. Registrations starts at 7AM. The recap will feature Senators Carla Nelson and Jeremy Miller, and Representative Greg Davids. It will be facilitated by City Council President Randy Staver. If you’d like information about joining the Commercial Builders Council, please contact Rick Dold, at RDold@RochesterAreaBuilders.com.

Community OutreachThis year the Commercial Builders Council continued to support the future of our industry by putting their scholarship into the Riverland Community College Foundation. Riverland Community College is Rochester Area Builders Student Chapter. Their 2 year (and award winning) Carpentry Program plays an important role in keeping talented individual in our industry.

April Meeting

April MEETINGDATE: Wednesday, June 5th, 2013TIME: Registration & Networking at 7:00 A.M. Program at 7:30 A.M.PLACE: Ramada Hotel & Conference CenterPROGRAM: Legislative UpdateSPEAKERS: Senator Carla Nelson of Rochester Senator Jeremy Miller of Winona Representative Greg Davids of Preston

Members2013 Commercial Builders Council106 Members as of 4/30/13AB Systems, Inc.Accord Electric, Inc.Associated BankAlvin E. Benike, Inc.The Blue Book

of Building & Construction

The Boldt CompanyBraun Intertec

CorporationBriese Iron Works, Inc.Brock White CompanyC.O. Brown AgencyCambriaCarpet OneCentury Painting &

Decorating, LLCChosen Valley Testing,

Inc.Construction

Partnership, Inc.Counselor Realty of

Rochester, Inc.County Materials

CorporationCRW architecture +

design group, inc.Custom Alarm/Custom

Communications, Inc.Dunlap & SeegerEastwood Bankeci, llcElcor ConstructionEnergy Panel StructuresEnergy Products &

Design, Inc.EnventisExpert Insulation, Inc.Ferguson EnterprisesFriedrich Construction,

Inc.GerhardsGoodin CompanyHaley Comfort/FireSide

by HaleyW.L. Hall CompanyHGA Architects and

EngineersHDR ArchitectureHeartman InsuranceHiller’s Flooring AmericaHiMec at HomeHome Federal Savings

BankHunt Electric

CorporationK&M Glass CompanyK&S Heating, A/C,

Plumbing & ElectricalKane & Johnson

Architects, Inc.Key Builders, Inc.Knutson Construction

ServicesKomitt Concrete, Inc.Kraus-Anderson

Construction Company

Kreofsky Building Supplies

Kruse LumberKuntz Electric, Inc.Kwik Trip, Inc.Leitzen Concrete

Products, Inc.Ed Lunn Construction,

Inc.

Marvin Windows & Doors

Mavo Systems, Inc.McGhie & Betts, Inc.McGough ConstructionMEC Construction, Inc.J&M ConsultingMEP AssociatesMerchants BankMerit Contracting, Inc.Minnesota Energy

Resources Corporation

Minnwest BankNickelson Painting, Inc.Olmsted National BankOnSitePalmer Soderberg, Inc.People’s Energy

CooperativePompeii Painting, Inc.Prehn Building Sales,

Inc.Premier Bank RochesterProBuild Company, LLCReliable Contractors,

Inc. Rochester Area

Appraisals, LLCRochester Area

Economic Development, Inc.

Rochester Public Utilities

Rochester Ready Mix Concrete Co

Rochester Sign Service, Inc.

Rochester Title & Escrow Company, Inc.

Ryan Electric of Rochester, Inc.

Schoeppner, Inc.Schwab, LLCSchwickert’s Tecta

America, LLCStantecStructural Design

Group, Inc.Superior MechanicalTamarack Materials of

Rochester, Inc.Think Mutual BankTonna Mechanical, Inc.TSP Architects &

EngineersTW Construction

Solutions, LLCUnited RentalsThe Urban StudioUS BankValor Mechanical, Inc.Veolia Environmental

ServiceVeit CompaniesVertical Limit

ConstructionViking Automatic

Sprinkler CompanyViking Electric SupplyWeis Builders, Inc.Wells Fargo Bank

Minnesota NAWendland UtzWidseth, Smith, &

NoltingYaggy Colby Associates

BUILDERS COUNCILCOMMERCIAL

a d i v i s i o n o f R o c h e s t e r A r e a B u i l d e r s , I n c .

Www.RochesterAreaBuilders.comMay/June 2013 | 13

What We’re Doing For You:CWGQ Insurance

TBG Insurance

Gov. Relations

Legal Action

Education

Online Forums

Action Center

Energy Payback

Visit www.bamn.org and log-in to the Members Only site for more information on these BAM initiatives!

BUILDERSASSOCIATION OF MINNESOTA

T: 651.646.7959T: 800.654.7783W: www.bamn.org

Executive Committee

President Chad Kompelein

Builder VPMike Paradise

Associate VPTerry Curtis

President ElectRick Kot

TreasurerGeorge Cundy

SecretaryKC Chermak

Past PresidentKeith Kylmala

NAHB RepresentativeKathe Ostrom

BAM Update: April 2013

�������������������������������������BAM held its first Board Meeting of 2013 on March 20th and this year’s directors were officially inducted by Minnesota’s NAHB State Representa-tive, Kathe Ostrom, of CN Ostrom & Son. Thank you to each BAM Director for stepping up and being a part of this year's association leadership. To see the board members from your local visit: www.bamn.o rg/abou t/bam -boa rd - o f -directors.

Legal Action FundOne of the most important decisions made by the Board on March 20th was to approve - by unani-mous voice vote - a Legal Action Fund assessment for 2013 in the amount of $35 per member. The legal battles that face the industry are immense and it is important to have the ability to fight to protect the industry.

This year it’s especially important because of the sprinkler mandate currently in the Minnesota version of the International Residential Code with a 4,500 square foot trigger. Fighting the mandate through the state's established code adoption process has led us to the next step of forcing an administrative law judge hearing on the matter. BAM's Legal Action Fund has approved hiring Joe Springer, an attorney from Fredrikson & Byron. BAM has also retained the services of Karen Linner, BAM's former Director of Codes and Research, and Steve Orlowski, an expert from NAHB. The BAM Legal Action Fund has a near perfect record in the cases it has fought. Copies of those cases and other legal resources, such as white papers and form contracts, can be downloaded from the BAM members-only website at www.bamn.org/legislation.

Because of the importance of a statewide legal fund, in a position to fight for the industry in a timely manner, the Legal Action Committee has discussed and intends to put together a long-term funding plan to present to the BAM Board of Directors later this year. As discussed at the Board meeting, possible options include funding out of a combination of dues, fundraisers, partial assessments, and/or a combination of all three. If you have any sugges-tions and or comments on how you would like to see it funded please let us know. Finally, we know this mid-year assessment puts a burden on budget-ing cycles and want to have the 2014 proposal done this fall to alleviate the local association budget concerns for 2014.

Government RelationsRick Kot, of RA Kot Homes, is BAM’s 2013 Govern-ment Relations Committee Chair and he gave a report on BAM’s work this year at the Minnesota Capitol. Halfway through the legislative session nearly 3,000 bills had been introduced. Several indemnification and risk transfer bills were introduced that are not favorable for the industry. BAM has been working to fix the problems.

Governor Dayton’s business-to-business sales tax proposal was dropped as a result of the improve-ment in the State’s financial situation, and a $750 million bonding bill has been proposed. Kot reported that BAM is attacking the fire sprinkler issue from every angle and has been aggressively working to find a solution to effectively remove a government mandate of fire sprinklers in single-family homes in Minnesota.

Code UpdateThe Department of Labor and Industry’s draft codes have not yet been published in the State Register. Publication in the Register will provide the statement of need and reasonable (SONAR) and is the neces-sary step to kick-start the administrative law judge (ALJ) hearing process. Mike Paradise, of Bigelow Homes, and member of the BAM Executive Commit-tee is the chair of the BAM Fire Sprinkler ALJ Task Force. This group has been meeting regularly to discuss and vet testimony, witnesses, and arguments.

BAM Insurance ProgramBAM is finalizing the contract with endorsed insurance program Corporate Four. Corporate Four has an outstanding risk management program, and with a finalized contract the program will be promoted widely throughout the state.

BAM-PACRemi Stone, BAM’s Executive Vice President, stated that PAC gives BAM credibility at the Capitol. Keith Kylmala, of Kylmala Truss, is BAM’s Past President and 2013 chair of the BAM-PAC Committee. The goal is to have $30,000 in the PAC by the 2014 election cycle. BAM-PAC will have a plan put together to generate those funds and will report to the BAM Board at the June or September meeting.

www.RochesterAreaBuilders.com14 | May/June 2013

What We’re Doing For You:CWGQ Insurance

TBG Insurance

Gov. Relations

Legal Action

Education

Online Forums

Action Center

Energy Payback

Visit www.bamn.org and log-in to the Members Only site for more information on these BAM initiatives!

BUILDERSASSOCIATION OF MINNESOTA

T: 651.646.7959T: 800.654.7783W: www.bamn.org

Executive Committee

BAM Update: May 2013

�����������������������������Are you saving money with your Builders Association of Minnesota membership? Membership delivers value for your business and bottom line, and it's a 3-for-1 deal giving your company 3 times the benefits. Check out the perks and make sure you’re getting the most value from your membership. Reasons it’s good to be a member are also reasons to become a member. We’re just sayin’. Check out these resources and more at www.bamn.org/membership. Drum roll please....

Number 10. Legislative WinsEvery year the government tries to make changes to the way you do business. That's where we come in. BAM is at the State Capitol and has been for over 35 years. Together we are 3,000 member businesses, which means our voice at the Capitol is Strong. We've successfully fought countless harmful bills over the years. BAM members meet year round to decide what to fight and what to promote for business and the industry.

Number 9. Code WinsEvery three to six years the government gives us a new building code. Thankfully, BAM combs through the proposed codes and fights for safe, durable, and affordable housing. Your BAM membership buys you a seat at the codes table. We're there fighting for you and we're good too.

Number 8. Legal Protection and Legal Wins"You can't handle the truth!" (Actually we know you can.) Court decisions impact your business, and just one can radically change your insurance rates or flip the home warranty around. Enter BAM. Your membership means we've got your back. BAM has a legal fund to fight member battles that affect the whole state. Members make decisions about which cases to take on, and we have a darn good track record.

Number 7. DiscountsCha ching! A cool part of BAM membership is the discounts on stuff you use! Members have access to discounts on fuel at Holiday and office supplies at Office Depot as well as a 22% discount on your Verizon plan. You can take that savings straight to the bank! We have a rebate program that gives you money back and we haven't even talked about the perks at your local and national associations! These awesome savings can more than pay for your annual membership. Sold!

Number 6. Quality, Affordable InsuranceAre you covered? The residential construction industry requires special insurance coverage. As a BAM member you have access to high quality, discounted coverage from The Builders Group for workers’ comp and from Corporate Four for general liability.

Number 5. ContractsDon't waste your hard earned money and your precious time creating your company contracts. BAM has it taken care of! We have six quality contract templates available for download for members-only. Drafted by attorneys that specialize in residential construction, and updated when the law changes, these contracts are available in word and pdf so you can download and edit the contracts right on your computer. These contracts are worth over

$10,000. That'll pay for your membership for years to come!

Number 4. Code GuidesWhen the government puts out a new code, we get the language but they don't tell you HOW to build to it. BAM does. For members only we put together detailed code guides - written by experts - so you know exactly how to build to the new code. This is one of our most popular resources, downloaded the most by members. We’ve also been known to create a few alternate methods. A new set of codes will be out in 2014, so look for the new code guides.

Number 3. Information, the 411, the SkinnyIn addition to discounts, having your back, fighting for you, and providing tools and resources you need to do your job well (wow that's a lot!) BAM membership also means information! We make sure you're in the know! Giving you the deets on what's happening in the industry, the economy, at the Capitol, and right here at BAM. We're tweeting, blogging, posting on facebook, emailing, writing white papers, and more. Like us on Facebook - Follow us on Twitter - Sign up to receive our Blog – and stay in the know!

Number 2. Get Some ActionMembership means being in on it. You get:Influence. Make decisions about real issues that affect your business including laws and codes that govern the industry. BAM has several working committees on which members can serve. These committees make important decisions and we want YOU!Leadership Training. In committees, on the BAM Board and the Executive Committee you get leadership training. Making decisions for 3,000 member businesses takes leadership. Interested?Political education. At the Capitol it's all about politics, and this is not a drill - it's the real deal. It's messy, and awesome, and one of the coolest parts of being an American. The question is, "What can you do for your industry?"Networking. Each year BAM holds events drawing statewide attendance. Our Day at the Capitol (free for members) during session allows you to talk with your legislators and fellow members. All BAM events give you the chance to meet some new peeps, learn something new, and grow your business - all possible with BAM membership.

And the NUMBER ONE REASON to join the Builders Association of Minnesota is UNITY

The residential construction industry is a huge economic driver for the State economy. We contribute $1.3 billion annually in income for Minnesota residents and more than 19,000 jobs. BAM - as the state association - is a collaboration of all 13 local associations across our great state. We exist because we know we're stronger together.Membership means being the voice of the industry at the State Capitol, the regulatory agencies, and in the courts. And membership means banding together as a collective to work for a better industry, a better economy, and a better state.

President Chad Kompelein

Builder VPMike Paradise

Associate VPTerry Curtis

President ElectRick Kot

TreasurerGeorge Cundy

SecretaryKC Chermak

Past PresidentKeith Kylmala

NAHB RepresentativeKathe Ostrom

Www.RochesterAreaBuilders.comMay/June 2013 | 15

PUBLIC WORKS DEPARTMENT NEWSContributed by: Megan Duffey, Storm Water Educator, Rochester Public Works Department

Rochester Public Works Department, 201 4th Street SE, Room 108, Rochester, MN 55904, 507-328-2440

After a long winter and a confusing spring, area trees are turning our skylines green again. These trees add beauty to our community and increase the real estate value of our property. They provide shade that helps us conserve energy and keep Rochester cooler. Plus, they provide homes for wildlife, absorb noise, and reduce air pollution.

Importantly, trees are also good storm water managers. Their roots hold soil to prevent erosion and roots promote the infiltration of storm water to help recharge our drinking water supply. Roots also take up some storm water, reducing the amount of runoff reaching impervious surfaces, where it collects pollution.

The leaves and bark on trees catch rain from the first quarter-inch of each rainfall event, intercepting between 500 and 760 gallons per year, further reducing the volume of runoff. Trees also slow the velocity of rain before it reaches the ground, reducing runoff rates and erosion potential.

Additionally, a mature tree can transpire (“sweat”) 100 gallons per day. Water thus taken up from the soil increases water storage potential in the soil and lengthens the amount of time before rainfall becomes runoff, again, reducing runoff volumes and rates. Trees also improve water quality by absorbing nutrients such as nitrogen and remove or break down metals, pesticides, and solvents. Clearly, planting trees helps offset urban growth.

Developers, builders, and landscapers can promote a cleaner environment by designing with trees in mind. Where existing trees can be saved, do so. Where none exist, consider planting trees in boulevards or neighborhood open spaces. If you want to learn more about designing neighborhoods while conserving woodlands, how to protect trees during construction, or how to properly select and plant boulevard trees, free information resources are available from the City Forester (507-328-2515 or jryg@ci.rochester.mn.us).

���������������������

www.RochesterAreaBuilders.com16 | May/June 2013

MARCH VALUATION APRIL VALUATION

New Residential Single Family Dwelling 34 6,716,241 39 9,046,592

Townhome Dwelling 0 0 0 0

Two-Family Houses 0 0 0 0

Multi-Family Bldgs 0 0 0 0

Manufactured Home 0 0 0 0 Existing Residential Deck Addition 3 10,400 11 39,350

Room Addition 0 0 4 569,729

Porch Additions 0 0 1 15,925

Other Additions 0 0 0 0

Basement Finish 35 520,465 27 294,745

Alterations 30 351,684 36 341,383

Multi-Family Addition 0 0 0 0

Multi-Family Alterations 1 50,000 5 40,095 New Commercial Assembly (Church) 0 0 0 0

Assembly (General) 0 0 0 0

Assembly (Restaurant/Bar) 0 0 1 198,000

Business 0 0 1 300,000

Education 0 0 0 0

Factory/Industrial 0 0 0 0

Institution 0 0 0 0

Mercantile 0 0 0 0

Miscelaneous 0 0 0 0

Utility (General) 0 0 0 0

Residential (Care/Hotel/Motel) 0 0 0 0

Storage (General) 0 0 1 56,000

Storage (Warehouse) 0 0 0 0 Existing CommercialAddition 0 0 1 3,669,000

Alterations 19 6,076,573 32 5,633,723

Structural Shell 0 0 0 0

“White Box” 1 2,000 0 0

Interior Demolition Only 6 126,806 1 39,775

Other Phased Permits 0 0 0 0

Other ConstructionBusiness Signs 5 65,047 23 175,223

Advertising Sign 0 0 0 0

Footings & Foundations 0 0 0 0

Demolition 1 0

Rochester Building Permits March/April 2013

January 41 33 39 27 20 3 13 3 6 19

February 49 31 31 19 13 1 8 8 20 15

March 69 59 37 30 29 16 27 24 32 29

April 110 58 58 44 27 29 25 19 29 39

TOTAL 269 181 165 120 89 49 73 54 87 102

May 106 77 69 50 30 33 20 14 22

June 109 81 59 43 36 36 12 26 32

July 89 58 36 60 23 21 23 8 39

August 82 69 36 43 28 26 15 18 38

September 70 65 31 33 28 33 10 19 22

October 99 71 49 34 19 31 14 16 23

November 73 40 38 23 26 30 21 20 22

December 65 60 23 11 16 15 12 16 14

TOTAL 962 702 506 417 302 274 200 191 299

Single Family Homes

Year To Date Statistics 2013 2012 NO. VALUATION NO. VALUATION

Building Permits Issued to Date 576 55,353,067 649 112,491,401

Single Family Dwelling 102 23,271,991 84 18,450,337

Multi-Family Buildings Total Units: 0 0 0 0 4,678,863

Trade Permits Issued to Date 2,077 19,001,370 2,192 23,799,262

Electrical 649 10,630,028 684 10,190,500

Electrical (Temp. Service) 79 23,350 89 16,025

Mechanical 543 4,383,007 562 7,476,972

Gas Piping 141 120,700 166 207,577

Fireplace 117 283,801 101 226,308

Hydronic System 40 736,592 47 1,960,347

Plumbing 508 2,823,892 543 3,721,553

Total Permits YTD 2,653 74,354,437 2,841 136,290,663

Information and downloads available at Rochester Building Safety Department’s Website: http://www.rochestermn.gov/departments/bldgsafety/reports/building/index.asp

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

*total may differ as permits may have been voided.

Www.RochesterAreaBuilders.comMay/June 2013 | 17

MARCH

New Residential NUMBER VALUATION

Single Family Detached 1 170,000

APRIL

New Residential NUMBER VALUATION

Single Family Detached 1 150,000

Existing Residential

Alterations 1 200,000

ByronBuilding Permits Year of 2013

MARCH

Existing Residential NUMBER VALUATION

Basement Finish 1 12,000

Alterations 1 5,000

APRIL

New Residential

Single Family Dwelling 1 250,000

Existing Residential NUMBER VALUATION

Deck Addition 3 9,800

Bedroom Finish 1 2,000

Alterations 1 36,000

Reroof 2 10,000

Furnace/AC 2 10,190

Water Heater 1 965

Existing Commercial

Additions 1 325,000

Pine IslandBuilding Permits Year of 2013

Rochester Real EstateMonthly Housing DataMarch/April 2013

Monthly Housing Data March 2013 March 2012 % Change

New Listings 318 365 -12.9%Active Listings Year to Date

1192 1388 -14.1%

Pending Listing 210 192 9.4%Sold Listings 135 115 17.4%Sold Listings Year to Date

331 309 7.1%

Median Sales Price (SOLD)

153,000 145,000 6.0%

SOLD Days on Market (DOM)

98 148 -33.78%

Avg. Year to Date (DOM)

109 139 -21.58%

Monthly Housing Data April 2013 April 2012 % Change

New Listings 257 252 2.0%Active Listings Year to Date

1450 1641 -11.6%

Pending Listing 250 257 -2.7%Sold Listings 163 163 0.0%Sold Listings Year to Date

504 473 6.6%

Median Sales Price (SOLD)

155,000 148,000 5.0%

SOLD Days on Market (DOM)

89 130 -33.85%

Avg. Year to Date (DOM)

102 136 -25.00%

Information and downloads available at South East Minnesota Association of REALTORS’

Website: http://semnrealtors.org/general/stats_market-trends.html

Information Provided By:

www.RochesterAreaBuilders.com18 | May/June 2013

Membership Renewals as of 3/31/13

One Year

Zumbro Haven, LLC 2012Two to Four Years

Advanced Building Center, Inc. 2011Solar Connection, Inc. 2011Steve Gentry Construction, LLC 2011Burdick Builders, Inc. 2010Stier Construction, Inc. 2010Coordinated Business Systems, Ltd. 2009Van Haren ICF 2009

Five to Nine Years

First Choice Homes, LLC 2008HDR Architecture 2008Maas Companies, Inc. 2008Kirkland Enterprises, LLC 2007RCON Homes, Inc. 2007Bruce Bucknell Construction, Inc. 2006Dahl Home Builders, Inc. 2006Majestic Homes, Inc. 2006North Central States Regional Council 2006Anderson Construction 2005Schwickert’s Tecta America, LLC 2004

Ten to 19 Years

Ames Construction, Inc. 2001HiMEC at Home 2001Pompeii Painting, Inc. 2001KTTC/KXLT-TV 2000Rochester Concrete Products, LLC 2000Greenway Cooperative Service Company 1998L&L Cabinets 1995

20 to 24 Years

Sterling State Bank 1993Countryside Builders, LLC 1989Heartwood Homes of Rochester, Inc. 1989M.H. Dutton Construction, LLC 1989

25 Years & More

Tonna Mechanical, Inc. 1988People’s Energy Cooperative 1987Woodruff Company 1964

Membership Information

While we love all our members, we’d like to take a moment to recognize those few who have been with us from the beginning. The following companies have been members of RAB for more than 50 years! That sustained dedication to our industry is truly worthy of praise, and we can’t thank you enough for your continued membership!

Alexander & Sons BuildersBriese Iron Works, Inc.

Holt Title Guaranty Company, Inc.Home Federal Savings Bank

Kruse LumberLeitzen Concrete Products, Inc.

Minnesota Energy Resources Corporation

Palmer Soderberg, Inc.Pendle Hansen Bagne Insurance

Post-Bulletin Company, LLCProBuild Company, LLC

Rochester Ready Mix Concrete CoUS Bank

Weis Builders, Inc.Wells Fargo Bank Minnesota NA

Www.RochesterAreaBuilders.comMay/June 2013 | 19

MILLER AND SONS CONSTRUCTION, INC.Rochester, MN

Contact: Brandon MillerPhone: 507-216-1943

RemodelerBuilder Member

Sponsored by:None Listed

NORTH STAR STONE & MASONRYRochester, MN

Contact: Tony AlstatPhone: 507-252-1129

Brick, Stone, Masonry, Retaining Walls, Hardscapes

Associate MemberSponsored by: Christy Buchan – Energy

Products & Design, Inc.

The firms listed below have applied for membership in the Rochester Area Builders. Any member who objects to admission of any applicant shall notify the RAB Board of Directors in writing of the objection before

the next Board of Directors meeting

MEMBERSHIP TOTAL: 456RETENTION RATE: 90.7%

As of 4/30/13

WE WELCOME THE FOLLOWING NEW MEMBERS IN APRIL & MAY:

Membership Information

ALPHA VIDEO & AUDIO7711 Computer Avenue

Edina, MN 55435Contact: Jeanie Wohlers

Phone: 952-896-9898A/V Integration

Associate MemberSponsored by: None Listed

ALTRA FEDERAL CREDIT UNION123 16th Avenue SW, Suite 500

Rochester, MN 55902Contact: Tracey BeyerPhone: 507-258-4500

Credit UnionAssociate Member

Sponsored by: None Listed

BY DESIGN BUILDERS103 Second Avenue SW

Kasson, MN 55944Contact: Darek Davidson

Phone: 507-634-4848Remodeler

Builder MemberSponsored by:

Wayne Claire - WC Construction

GIFT BOOK PLUS5191 Ridgeway Rd NWRochester, MN 55901

Contact: Chuck PayettePhone: 866-805-4285

Screen Printing, Embroidery, Banners/SignsAssociate Member

Sponsored by: Bob Vogt – Olmsted Co Journal

GULF EAGLE SUPPLY4519 Highway 63 NorthRochester, MN 55906Contact: Brad PresleyPhone: 507-252-8765

Roofing SuppliesAssociate Member

Sponsored by: Kerk Johnson - Schwickerts

HG ELECTRIC, LLC2755 Brookwood Court SE

Plainview, MN 55934Contact: Don Hameister

Phone: 507-272-9808Electrical Contractor

Associate MemberSponsored by:

Kevin Reckinger – Bricewood, LLC

Membership Renewals as of 4/30/13

One Year

All-Star Basements 2012Enventis 2012The Design Connection 2012Vollara Global/DPS 2012

Two to Four Years

Elias Construction, LLC 2011Lacina Siding & Windows, Inc. 2011MEP Associates 2010Rochester Asphalt, Inc. 2010Beckley’s Office Products 2009

Five to Nine Years

Data-Smart Computers, Inc. 2008Crescent Electric Supply Company 2007Legends Concrete, Inc. 2007Dolan’s Landscape Center, Inc. 2006Habitat for Humanity - Winona/Fillmore County dba Habitat ReStore

2006

Michael Jack, LLC 2006Ryan Electric, Inc. 2006Al Barker Custom Homes, Inc. 2004Excel Homes 2004Scott Berberich Construction, LLC 2004

Ten to 19 Years

First General Services of SE MN 2003Innovative Surfaces, Inc. 2002Expert Insulation, Inc. 2001Habitat for Humanity - Rochester Area 2000Wright Homes, Inc. 2000American Waterworks 1999HGA Architects and Engineers 1997Larsen Industries, Inc. 1997TSP Architects & Engineers 1997

20 to 24 Years

Hentges Glass Company 1991Charter Communications/Media 1990

25 Years & More

Thomas Tool & Supply 1987Barrier Free Access, Inc. 1984Brandrup Builders 1976Northern Lights & Furnishings 1976

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www.RochesterAreaBuilders.com20 | May/June 2013

While Q1 GDP growth was 2.5%, it will probably be the best performing quarter of the year. Add to that continued contractionary fiscal policy in the form of both the sequester and the Fiscal Cliff deal, continued weak employment growth, declining exports and a lackluster manufacturing sector and suddenly recessionary fears are palpable. After all, a recession will inevitably come and it has been almost six years since the start of the last one. Aren’t we kind of due? Turns out, the answer is no, no and no! If history is any guide - and it’s a very good one in this case - there is no recession in sight.

Since 1970 there have been seven recessions, and interestingly enough, each one has been preceded by an inversion in the yield curve, a situation where short term interest rates are higher than long term interest rates. Rarely is there an indicator that is seven for seven over a period of 44 very dissimilar years. The last time the yield curve inverted and a recession did not follow was in 1966-67, and though there wasn’t a recession, the economy slowed substantially with GDP growth of less than 1% for 21 straight months.

Normally, interest rates are higher the longer the period of time money is lent. For example, today a one-year Treasury bill yields 0.15%/year, a 10-year Treasury note pays 2%/year and a 30-year Treasury bond pays 3.125%/year. After all, the longer you lend someone money, in this case the government, the more interest rate risk, inflation risk and credit risk you incur, and investors must be compensated for these risks.

However, from time to time this normal relationship breaks down. One explanation for this phenomenon is that by raising short-term rates (to slowdown an overheating economy with rising inflation), the Federal Reserve discourages bank lending, as banks generally borrow short and lend long. And when the yield curve is inverted, banks have much-reduced profit margins, and this reduction in lending causes a recession. A second explanation for an inverted yield curve is that investors expect future short-term interest rates to decline because they expect a recession. As a result, investors expect the central bank to lower interest rates to counteract the expected recession. And when this happens, investors plow into low-yielding long-bonds to lock in yields they expect will be still lower in the future.

Regardless of the reason, from time-to-time the yield curve inverts. Today, the difference between ten-year Treasury notes and one-year Treasury bills is 1.85%. Assuming the Federal Reserve felt compelled to start raising short-term interest rates soon (and let’s be clear, it does not), it would take, based on history, about two years before yields on one-year Treasury bills were higher than yields on 10-year Treasury notes. And again using history as our guide, it generally takes another 12 months after the yield curve inverts before a recession begins. This suggests that we have at minimum three years before the next recession. Of course, given the expansionary state of monetary policy and the laser-like focus of the Fed in preventing a recession, my bet is we have quite some time before the recession of 2018!

Interest Rates Yield No RecessionElliot Eisenberg, Ph.D.

Elliot Eisenberg, Ph.D. is President of GraphsandLaughs, LLC and can be reached at Elliot@graphsandlaughs.net. His daily 70 word economics

and policy blog can be seen at www.econ70.com.

Www.RochesterAreaBuilders.comMay/June 2013 | 21