Foundations - July 2014
22
J U L Y 2014 Rochester Area Builders, Inc. a publication of FOUNDATIONS 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 + Advantage Cabinets, Inc. + AgStar Home Mortgage Services + Alexander & Sons Builders + All Craft Exteriors, LLC + 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. + Amirco, LLC + 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 + 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 + Brooks Excavating Company, Inc. + C.O. Brown Agency + Bruce Bucknell Construction, Inc. + Budget Blinds + Building Products, Inc. + Burdick Builders, Inc. + By Design Builders + Byrne Electric, Inc. + Cachiaras Building & Remodeling + Cambria + Carpet One + CarpetsPlus of Rochester + Castle- wood Homes, Inc. + Charter Communications/Media + Chladek Construction, LLC + Chosen Valley Testing, Inc. + Christian Brothers Cabinets, Inc. + CHS, Inc. + City of Byron + City of Chatfield + City of Eyota + City of Preston + City of Spring Valley + Citywide Insulation, Inc. + Clarey's Safety Equipment + Clayton Thomas Blinds of Roches- ter + Clear Channel Radio (Laser/Fox/KFAN) + Clements Chevrolet Cadillac Subaru + Closet Organizers + Coldwell Banker Burnet + Commercial Leasing Services + Construction Partnership + 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 + 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. + DeCook Builders, LLC + DeGeus Tile & Granite + Derby Construction LLC + The Design Connection + Design Studio B + DeWitz Home Builders, Inc. + DiNicola & Pestka Appraisals + DMC Plumbing & Heating, Inc. + Dolan's Landscape Center, Inc. + Donlar Construction Company + DoubleTree by Hilton - Mayo Clinic Area + DreamMaker Bath & Kitchen + Dunham Associates, Inc. + Dunlap & Seeger + J.E. Dunn Construction + Dura-Oak Kitchen Make Overs + 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 + The Excelsior Group, LLC + Exclusive Home Builders & Remodelers + Expert Insulation, Inc. + Express Employment Professionals + Extreme Panel Technologies, Inc. + Fairway Outdoor Advertising, LLC + Fat Willy's Bar & Grill + 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 + GAF + Gander Plumbing & Heating, Inc. + Dale Gathje Construction, Inc. + Steve Gentry Construction, LLC + Gerhards + Gift Book Plus + Robert Gill Builder, Inc. + Goodin Company + Great River Overhead Door + Green Lawncare Irrigation & Service Co. + Gregor Builders, Inc. + GulfEagle Supply + Habitat for Humanity - Rochester Area + Habitat for Humanity - Winona/Fillmore County dba Habitat ReStore + Haley Comfort Systems (Authorized FireSide Dealer) + 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. + 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. + Institute for Environmental Assessment + Insty Prints + IntegraSpec Central/Jeff Mueller Construction + Michael Jack, LLC + JNS Builders, 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 Hospitality Group + 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. + Kraus-Anderson Construc- tion Company + Kreof- sky 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. + Leyen- decker Homebuilders, LLC + Lodermeier's, Inc. + Lowe's Home Improvement + Luxury Bath Remodeling + Maas Companies, Inc. + Maier Tree & Lawn + Majestic Homes, Inc. + R . J . Manemann Custom Homes + Manufacturer's Bank & Trust + Maple- wood Homes, LLC + Markham Homes, LLC + markit + Marvin Windows & Doors + Massey Land Surveying & Engineering + Master Builders, Inc. + Mavo Systems, Inc. + McGhie & Betts - a Division of WSB & Associates, Inc. + McGladrey + McGough Construction + MDH, Inc. + Meadow Lakes Builders + MEC Construction, Inc. + Med City Builders of Rochester, LLC + Menards - South + MEP Associates + Merchants Bank + Merit Contracting, Inc. + Michael's Custom Cabinets, Inc. + Mid American Financial Group + Midwest LeafGuard of Rochester, Inc. + Midwest Walls, LLC + Miller & Sons Construction, Inc. + Minnesota Energy Resources Corporation + Minnwest Bank + MLT Group + Morris Concrete, Inc. + Larry Newman Drywall + Nickelson Painting, Inc. + North Central States Regional Council + North Star Stone & Masonry + Northern Lights & Furnishings + Nuss Truck & Equipment + O'Connor Homes, Inc. + Ohly Law Office + Olmsted County Planning Dept, Insp. Div. + Olmsted County Public Health + Olmsted National Bank + J.B. O'Meara Company + On Site Compa- nies + Otis Custom Homes, LLC + Overhead Door Co. of Olmsted County + Owner's Plumbing, Inc. + Oxi-Fresh Carpet Cleaning + Paape Energy Services + Pahl & Kaye, Inc. + Palmer Soderberg, Inc. + Walt Pappas C o n - struction + Paramark Corporation + Payne Company + PC Appli- cations Consultants, Inc. + Pearson Builders, Inc. + Pebble Creek/Western Walls + Pella Windows & Doors + Pendle Hansen Bagne Insurance + Penz Custom Homes, Inc. + People's Energy Cooperative + Peterson Well Drilling, Inc. + Pine Island Lumber + Pompeii Painting, Inc. + Post-Bulletin Company, LLC + Powers Ventures + Prehn Building Sales, Inc. + Premier Bank Rochester + 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 Com- pany, Inc. + Quality Siding & Window, Inc. + Michael Quinn Law Office + R&M Develop- ment Company + R. Thomas Consulting, LLC + Radcliffe Homes & Remodeling + Range Custom Homes, 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 + Roches- ter Area Econ. Development, Inc. + Rochester Area Foundation + Rochester Asphalt, Inc. + Rochester Building Safety Department + Rochester Concrete Products, LLC + Rochester Interna- tional Event Center + Rochester Plumbing & Heating/Roto Rooter + Rochester Public Utilities + Rochester Public Works + Rochester Ready Mix Concrete Co + 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. + S&S Overhead Door, Inc. + Sargent's Landscape Nursery, Inc. + Sawyer Construction Services, Inc. + Schad Tracy Signs, Inc. + Schmidt Goodman Office Products + Schoeppner, Inc. + Schumann Granahan Hesse & Wilson, Ltd. + Schwickert's Tecta America, LLC + Seavey Builders, Inc. + SEH Yaggy + Dan Severson Builders, Inc. + Shana- han Building & Remodeling, LLC + Sherwin Williams Company + Shingobee Builders, Inc. + Sign Here, Inc. + Simonson Builders, LLC + SL Contracting + Smart Home Innovations & Engineer- ing, 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. + Stewartville Economic Development Authority + StoneBridge Builders + Structural Design Group, Inc. + Struve's Paint and Decorating + Robert G. Suk Law Office, PA + Summit Custom Homes, LLC + Summit Fire Protection Company + Superior Mechanical + Craig Swanson Builders, Inc. + Swenke Ims Contracting, LLC + Kenny Sylvester Construction, LLC + Synergy Products + Tag's Drywall, Inc. + Tamarack Materials of Rochester, Inc. + TDS Metrocom + Thermo-Tech Windows + Thiemann Construction, Inc. + Thimijan Custom Homes, LLC + Think Mutual Bank + Thomas Tool & Supply + Thompson's Garage Door and Openers + Thrivent Financial - Rochester Group + Tile Superstore & More + TLC Surfaces + Tonna Mechanical, Inc. + Top Shop of Rochester, Inc. + Total Electric of Rochester, Inc. + Townsquare Media Rochester + 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. + Ultimate Surfaces + United Heating & Cooling + United Products/Allied Building Products Corp. + United Rentals + The Urban Studio, LLC + US Bank + Valor Mechanical, Inc. + Val-U- Blinds + Van Haren ICF + Vector Windows + Veit Companies + Vennehjem Building Corporation + 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 + Weis Builders, Inc. + Greg Wellik Construction + Wells Fargo Bank Minnesota NA + Wendland Utz + Werner Electric Supply + West Bank + Jim Whiting Nursery & Garden Center, Inc. + WHKS & Company + Widseth Smith Nolting + Wildwood Sports Bar and Grill + Women Communications, LLC + Woodruff Company + Wright Homes, Inc. + WT Lighting + Xcel Energy + XRG Concepts, LLC + Rick Yerhot Builder + Your Home Improvement Company + Zumbro Haven, LLC
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Rochester Area Builders Newsletter for July of 2014
Transcript of Foundations - July 2014
J U L Y2014 Rochester Area Builders Inca publication of
F O U N DAT I O N S
AampA Electric amp 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 amp Remodeling + Advanced Builders LLC + Advanced Building Center Inc + Advanced Disposal + Advantage Cabinets Inc + AgStar Home Mortgage Services + Alexander amp Sons Builders + All Craft Exteriors LLC + Mike Allen Homes LLC + Allen Outdoor Solutions LLC + All-Star Basements + Alpha Video amp Audio + Altra Federal Credit Union + American Engineering Testing Inc + American Fence Company of MN LLC + American Waterworks + Ames Construction Inc + Amirco LLC + Anderson Construction + Appliance Village Company + Arcon Development Inc + Arrow Building Center + Associated Bank + Athelon Enterprises LLC + BampC Plumbing amp Heating Inc + Al Barker Custom Homes Inc + Barrier Free Access Inc + Basement Water Control + Batzel Builders Inc + Beckleys Office Products + Beetles Bar amp Grill Inc + Alvin E Benike Inc + Scott Berberich Construction LLC + Scott Berg Construction LLC + Bessler Management + Beyond Kitchens LLC + Bigelow amp Lennon Construction LLC + Bigelow Homes + KW Billman Inc + The Blue Book of Building amp Construction + Bobcat of Rochester + Bobs Construction Inc + The Boldt Company + Bouquet Builders Inc + Bowmans Door Solutions + Brandrup Builders + 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 amp Air Conditioning + Brooks Excavating Company Inc + CO Brown Agency + Bruce Bucknell Construction Inc + Budget Blinds + Building Products Inc + Burdick Builders Inc + By Design Builders + Byrne Electric Inc + Cachiaras Building amp Remodeling + Cambria + Carpet One + CarpetsPlus of Rochester + Castle-wood Homes Inc + Charter CommunicationsMedia + Chladek Construction LLC + Chosen Valley Testing Inc + Christian Brothers Cabinets Inc + CHS Inc + City of Byron + City of Chatfield + City of Eyota + City of Preston + City of Spring Valley + Citywide Insulation Inc + Clareys Safety Equipment + Clayton Thomas Blinds of Roches-ter + Clear Channel Radio (LaserFoxKFAN) + Clements Chevrolet Cadillac Subaru + Closet Organizers + Coldwell Banker Burnet + Commercial Leasing Services + Construction Partnership + Corban Homes LLC + Cordes Construction + Cornerstone Builders amp 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 amp Kasson + Currys Custom Cut Gutter LLC + Curtin Drywall Inc + Custom AlarmCustom Communications Inc + Custom Retaining Walls amp Landscaping Inc + D2E LLC + Dahl Home Builders Inc + Data-Smart Computers Inc + DeCook Builders LLC + DeGeus Tile amp Granite + Derby Construction LLC + The Design Connection + Design Studio B + DeWitz Home Builders Inc + DiNicola amp Pestka Appraisals + DMC Plumbing amp Heating Inc + Dolans Landscape Center Inc + Donlar Construction Company + DoubleTree by Hilton - Mayo Clinic Area + DreamMaker Bath amp Kitchen + Dunham Associates Inc + Dunlap amp Seeger + JE Dunn Construction + Dura-Oak Kitchen Make Overs + MH Dutton Construction LLC + EampM Consulting Inc + Eastwood Bank + eci llc + Eckert Construction Inc + Edel Construction LLC + Edge Homes amp Construction Inc + Edina Realty Home Services + Todd Eidem Construction Inc + Elcor Construction Inc + Elcor Realty of Rochester Inc + Electrical Solutions amp Service + Elias Construction LLC + Energy Panel Structures + Energy Products amp Design Inc + Enventis + The Excelsior Group LLC + Exclusive Home Builders amp Remodelers + Expert Insulation Inc + Express Employment Professionals + Extreme Panel Technologies Inc + Fairway Outdoor Advertising LLC + Fat Willys Bar amp Grill + 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 + GAF + Gander Plumbing amp Heating Inc + Dale Gathje Construction Inc + Steve Gentry Construction LLC + Gerhards + Gift Book Plus + Robert Gill Builder Inc + Goodin Company + Great River Overhead Door + Green Lawncare Irrigation amp Service Co + Gregor Builders Inc + GulfEagle Supply + Habitat for Humanity - Rochester Area + Habitat for Humanity - WinonaFillmore County dba Habitat ReStore + Haley Comfort Systems (Authorized FireSide Dealer) + WL Hall Company + Hammer Homes Inc + Hanson Construction amp Specialty Cabinets LLC + Hayfield Window amp Door Company + HDR Architecture + Heartman Insurance + Heartwood Homes of Rochester Inc + Brandon Hendersons Construction Plus LLC + Hentges Glass Company + HG Electric LLC + HGA Architects and Engineers + Hicks Electric Inc + Higgins Custom Cabinetry + High Definition Homes LLC + Hillers Flooring America + HiMEC at Home + Jeff Hinkle Custom Homes + Hirshfields 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 + Hutchs Custom Cabinets + Intl Brthrhd of Electrical Wrkrs Local 343 + Innovative Surfaces Inc + Institute for Environmental Assessment + Insty Prints + IntegraSpec CentralJeff Mueller Construction + Michael Jack LLC + JNS Builders LLC + JP Johnson Custom Builders Inc + JPs Construction Remodeling amp Repair Inc + KampM Glass Company + KampS Heating AC Plumbing amp Electrical + Kahler Hospitality Group + Tom Kalmes Construction Inc + Kane amp Johnson Architects Inc + Keller Williams Premier Realty + Key Builders Inc + Kings Flooring LLC + Kinzler Construction Services Inc + Kirkland Enterprises LLC + Kitchen Concepts + The Kitchen Design Studio + Kitchens Plus + Gary Kline Roofing Inc + Knutson Construction Services + Koballs Poured Walls Inc + Kraus-Anderson Construc- tion Company + Kreof- sky Building Supplies + Kruger Electric Inc + Kruse Lumber + KTTCKXLT-TV + Kuehn Motor Company Inc + Kuntz Electric Inc + Kwik Trip Inc + LampL Cabinets + Lacina Siding amp Windows Inc + Laitala Tile Company + Larsen Industries Inc + Larson Siding amp Windows + Legends Concrete Inc + Leitzen Concrete Products Inc + Leyen-decker Homebuilders LLC + Lodermeiers Inc + Lowes Home Improvement + Luxury Bath Remodeling + Maas Companies Inc + Maier Tree amp Lawn + Majestic Homes Inc + R J Manemann Custom Homes + Manufacturers Bank amp Trust + Maple-wood Homes LLC + Markham Homes LLC + markit + Marvin Windows amp Doors + Massey Land Surveying amp Engineering + Master Builders Inc + Mavo Systems Inc + McGhie amp Betts - a Division of WSB amp Associates Inc + McGladrey + McGough Construction + MDH Inc + Meadow Lakes Builders + MEC Construction Inc + Med City Builders of Rochester LLC + Menards - South + MEP Associates + Merchants Bank + Merit Contracting Inc + Michaels Custom Cabinets Inc + Mid American Financial Group + Midwest LeafGuard of Rochester Inc + Midwest Walls LLC + Miller amp Sons Construction Inc + Minnesota Energy Resources Corporation + Minnwest Bank + MLT Group + Morris Concrete Inc + Larry Newman Drywall + Nickelson Painting Inc + North Central States Regional Council + North Star Stone amp Masonry + Northern Lights amp Furnishings + Nuss Truck amp Equipment + OConnor Homes Inc + Ohly Law Office + Olmsted County Planning Dept Insp Div + Olmsted County Public Health + Olmsted National Bank + JB OMeara Company + On Site Compa- nies + Otis Custom Homes LLC + Overhead Door Co of Olmsted County + Owners Plumbing Inc + Oxi-Fresh Carpet Cleaning + Paape Energy Services + Pahl amp Kaye Inc + Palmer Soderberg Inc + Walt Pappas C o n - struction + Paramark Corporation + Payne Company + PC Appli- cations Consultants Inc + Pearson Builders Inc + Pebble
CreekWestern Walls + Pella Windows amp Doors + Pendle Hansen Bagne Insurance + Penz Custom Homes Inc +
Peoples Energy Cooperative + Peterson Well Drilling Inc + Pine Island Lumber + Pompeii Painting Inc
+ Post-Bulletin Company LLC + Powers Ventures + Prehn Building Sales Inc +
Premier Bank Rochester + Premier Builders of Rochester Inc + Price Financial
Services Inc + Prime Time Painting of Rochester LLC + PrimeLending + Priority Claims Service + Pro Image
Promotions amp Apparel + ProBuild Company LLC + Quality Overhead Door
Com- pany Inc + Quality Siding amp Window Inc + Michael Quinn Law Office + RampM Develop-ment Company + R Thomas Consulting LLC + Radcliffe Homes amp Remodeling + Range Custom Homes LLC + RCON Homes Inc + RCTC Carpentry Program + REMAX 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 + Roches-ter Area Econ Development Inc + Rochester Area
Foundation + Rochester Asphalt Inc + Rochester Building Safety Department + Rochester Concrete Products LLC + Rochester Interna- tional Event Center + Rochester Plumbing amp HeatingRoto Rooter + Rochester Public Utilities + Rochester Public Works + Rochester Ready Mix Concrete Co + Rochester Sign Service Inc + Rochester Title amp Escrow Company Inc + Rock Solid Retaining Walls + Ronningen Roofing Inc + RSP Architects + Ryan amp Grinde Ltd + Ryan Electric Inc + Ryan Windows amp Siding Inc + SampS Overhead Door Inc + Sargents Landscape Nursery Inc + Sawyer Construction Services Inc + Schad Tracy Signs Inc + Schmidt Goodman Office Products + Schoeppner Inc + Schumann Granahan Hesse amp Wilson Ltd + Schwickerts Tecta America LLC + Seavey Builders Inc + SEH Yaggy + Dan Severson Builders Inc + Shana- han Building amp Remodeling LLC + Sherwin Williams Company + Shingobee Builders Inc + Sign Here Inc + Simonson Builders LLC + SL Contracting + Smart Home Innovations amp Engineer- ing Inc + Smith Schafer amp Associates Ltd + Solar Connection Inc + Somerby Golf Community + Space Concepts Inc + Spahn amp Rose Lumber Company + Greg Speedling Contracting Inc + Spring Valley Overhead Door Inc + Stadsvolds Lawn amp Landscape + Stantec + Steel Constructors Inc + Sterling State Bank + Stevens Heating Inc + Stewartville Economic Development Authority + StoneBridge Builders + Structural Design Group Inc + Struves Paint and Decorating + Robert G Suk Law Office PA + Summit Custom Homes LLC + Summit Fire Protection Company + Superior Mechanical + Craig Swanson Builders Inc + Swenke Ims Contracting LLC + Kenny Sylvester Construction LLC + Synergy Products + Tags Drywall Inc + Tamarack Materials of Rochester Inc + TDS Metrocom + Thermo-Tech Windows + Thiemann Construction Inc + Thimijan Custom Homes LLC + Think Mutual Bank + Thomas Tool amp Supply + Thompsons Garage Door and Openers + Thrivent Financial - Rochester Group + Tile Superstore amp More + TLC Surfaces + Tonna Mechanical Inc + Top Shop of Rochester Inc + Total Electric of Rochester Inc + Townsquare Media Rochester + Tradesmen International Inc + Traditional Wood Builders + Tri Star Insulation + Tri State Insulated Concrete Forms + TSP Architects amp Engineers + Turri Crane Service Inc + Turtle Creek Construction Inc + Ultimate Surfaces + United Heating amp Cooling + United ProductsAllied Building Products Corp + United Rentals + The Urban Studio LLC + US Bank + Valor Mechanical Inc + Val-U- Blinds + Van Haren ICF + Vector Windows + Veit Companies + Vennehjem Building Corporation + Vertical Limit Construction + Viking Automatic Sprinkler Company + Viking Electric Supply + Vision Homes amp Remodeling LLC + Vollara GlobalDPS + WA Insurance + Waddell amp Reed + Warners Stellian Appliance Co Inc + Waste Management + Weis Builders Inc + Greg Wellik Construction + Wells Fargo Bank Minnesota NA + Wendland Utz + Werner Electric Supply + West Bank + Jim Whiting Nursery amp Garden Center
Inc + WHKS amp Company + Widseth Smith Nolting + Wildwood Sports Bar and Grill + Women Communications LLC + Woodruff Company + Wright Homes Inc + WT Lighting + Xcel Energy + XRG Concepts LLC + Rick Yerhot Builder + Your Home Improvement Company + Zumbro Haven LLC
wwwRochesterAreaBuilderscom2 | July 2014
copy C
AM
BR
IA 2
014
build your reputation
with Cambria
Inspire your clients with a world of interior design opportunities at the new Cambria Gallery ndash Rochester In our expertly curated showroom their imaginations will be free to wander as they take in more than 100 trend-setting designs innovative kitchen and bath installations and full slabs Wersquove got lots of room for you to meet and talk with clients so stop by any time and make our space your space
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WwwRochesterAreaBuilderscomJuly 2014 | 3
June 12 2014 ldquoCome gather lsquoround people wherever you roam and admit that the waters around you have grownhellip for the times they are a-changingrdquo -Bob Dylan
Hello and Happy July to all
Though Bob Dylan didnrsquot have the Rochester of 2014 in mind when he wrote these lyrics decades ago he certainly could have Anyone who has picked up a Post-Bulletin walked around downtown or generally lived anywhere outside of a cave for the past 18 months knows that we are on the cusp of very substantial growth and changes in our region Through a recently- released Comprehensive
Housing Needs Assessment report conducted by Maxfield Research we now know that our region needs not just more housing but different housing options in response to a changing population
QUICK QUIZ The most rapid rate of population growth in the Rochester area between now and 2018 lies with what age segment of the population If you guessed the ldquoyoung professionalrdquo generation like I did you are not correct The age 65-74 cohort is expected to take that title Baby boomers will be looking for a wider variety of housing options in their retirement years than past generations have expected Are you ready for them
Here are a few other things I learned from reviewing the study (statements are my paraphrasing and interpretations not direct quotes unless noted)
bull Itrsquos not all about just Rochester Demand for housing will be ldquofluidrdquo throughout the county eg more senior housing projects in Stewartville would reduce the demand for the same in Rochester Note to cities area builders are your partners in ensuring your townrsquos future prosperity Letrsquos work together
bull We have a greater percentage of homes occupied by someone with a disability To no onersquos surprise in the Med City region we exceed the state average by over 60 (16 of all households vs an average of 10) Meeting the housing needs of all of our residents can benefit everyone involved
bull Affordability continues to be a concern and will require more than one solution More renters than owners are ldquocost-burdenedrdquo by their housing (paying more than 30 of their income) and this problem is likely to persist due to low vacancy rates
bull The need for a central ldquoone-stop shoprdquo in our local government for navigating housing policies and processes long advocated for by RAB is independently established in this study This valuable position could help customers to navigate housing codes and regulations and encourage partnerships between the public and private sectors
Check wwwrochesteraerabuilderscom for a summary of the full study Or if yoursquore feeling really ambitious you can find the full report (all 340 pages) on the Rochester Area Foundationrsquos web site Special thanks to them as well as to the Mayo Clinic and Olmsted County for sponsoring this important effort
Herersquos to ldquobuildingrdquo a strong future in the Rochester area Have a great month
Kevin Worden2014 RAB President
Index News from the President 3Thank Yous 3From the Directorrsquos Desk 4June Networking Night 5Green Building Expo 6-7Association Scrapbook 8-11RAB Golf Outing Review 12Hey Matt Whatrsquos up with that 13BAM Update 14Committee Updates 15Remodel It Right News 16Rochester Permits 18ByronPine Island Permits 19Real Estate Data 19Elliot Eisenberg Article 20Membership Information 21NAHB Member Discounts 22
Executive DirectorEditor 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 monthly to its members and others associated with the building industry Neither the advertisers nor RAB will be responsible or liable for misinformation misprints typographical errors etc herein contained
108 Elton Hills Lane NW Rochester MN 55901 Phone 507-282-7698 Fax 507-282-6351E-mail RABRochesterAreaBuilderscom
News from The President
May Networking Night
Thank you to Gerhards for hosting the May Networking Night Thanks to Bruce Renae and the rest of the staff They did a great job with the food and gave away lots of goodies for those in attendance
Walt Pappas Walt Pappas Construction won a Kohler Touchless flush mechanism Shockingly Jean DeWitz DeWitz home Builders was the winner of a Moen faucet Mike Paradise Bigelow Homes won a $30 gift card to Michaelrsquos courtesy of Post Bulletin
Thank You
wwwRochesterAreaBuilderscom4 | July 2014
From The Directorrsquos DeskA Hard Fought Battle
As you are now probably aware beginning in 2015 some single family homes built in Minnesota will require fire suppression systems aka fire sprinklers In a nutshell this requirement will be in homes larger than 4500 square feet including basements but excluding garages We fought hard through several legislative sessions to keep fire sprinklers a home ownerrsquos choice but in the end Governor Dayton decided that other special interests outweighed our valid and statistically proven arguments and increased the cost of housing for Minnesotans This will be an issue that we will continue to face as the Commissioner of DOLI has gone on record stating that fire sprinklers should be in ALL new homes Wersquoll keep you posted
There were a lot of people members and non-members who were heavily involved in our efforts but I want to give special recognition to one non-member that really went above and beyond That person is Senator Dave Senjem Over the past year whenever I would see Senator Senjem at community events the first thing he would say to me is ldquoGotta keep those sprinklers a choicerdquo He truly championed our issue at every opportunity and his last attempt was extremely effective (and a brilliant political move according to Remi Stone) at bringing the issue into the overall political discussion Senator Senjem has always been a great advocate for the Building Industry even before fire sprinklers came to the forefront So if you run into Senator Senjem this summer make sure to thank him for working hard for our industry
RAB Executive Director
WwwRochesterAreaBuilderscomJuly 2014 | 5
President Kevin Worden Rochester Area Habitat for HumanityVice President John Eckerman The Boldt Company
Secretary Lindsey Rippentrop Olmsted National Bank
Treasurer Carla Kilpatrick Home Federal Savings Bank
Past President Jean DeWitz DeWitz Home Builders Inc
Directors Karen Blissenbach Design Studio B Christy Buchan Energy Products amp Design Inc
Delbert Feenstra Knutson Construction Services Rob Jones Superior Mechanical Levi Kaiser Alvin E Benike Inc Bruce Laufenburger First General Services of SE MN Sam Peyton Kingrsquos Flooring LLC Brian Shehan Weis Builders Inc
Builders Exchange Council Representatives
JJ Webster Kraus-Anderson Construction Company Chair Jake Schleusner Merit Contracting Inc Vice Chair Tony Wintheiser Hentges Glass Past Chair
Commercial Builders Council Chris Terry Knutson Construction Services Chair Nick Leimer Kraus-Anderson Construction Company Vice Chair
Development Council Chair John Sipple Rochester Area Appraisals LLC
Remodelers Council Chair Sam Peyton Kingrsquos Flooring LLC
National Life Directors Joe Weis Weis Builders Inc
National Directors Steve Buss Cornerstone Builders amp Real Estate Inc Mike Coats MEC Construction Inc David Kane Kane amp Johnson Architects Inc Rep Rory Lenton Minnesota Energy Resources Corp
State Directors Jim Gander Superior Mechanical John McGuine Schoeppner Inc Rep Mike Paradise Bigelow Homes David Pederson Dunlap amp Seeger Dan Severson Dan Severson Builders Inc
Executive Director John Eischen
JEischenRochesterAreaBuilderscom
Staff Audra Bolduan
ABolduanRochesterAreaBuilderscom Marketing Builders Exchange Trustees
Matt Limoges MatthewLRochesterAreaBuilderscom Government Affairs Commercial Builders Council Development Council Building Safety Advisory Group Public Works Advisory Group Community Relations Green Building Marketing
Sharill Mueller SMuellerRochesterAreaBuilderscom Home Show Showcase Committee
Rebekah Nielsen RNielsenRochesterAreaBuilderscom Ambassadors Education Membership
Program Spike Club Remodelers Council -Executive-Home Tour-
Ryan Kling-Punt RPuntRochesterAreaBuilderscom Golf Outing Sporting Clays Directory Newsletter E-News Update
Join us at the JuneSummer Networking Night
Tuesday June 24th at the Valor Mechanical Inc
416 S Broadway(Click Address for Map)
Hours 500 pm - 700 pm
OUR HISTORYValor Mechanical was founded in June 2006 by Ty Bestor The dream vision and the current evolution of Valor was implemented in September 2012 Ty has over 35 years of experience in the mechanical construction industry Ty was born and raised in a small rural community in southeast Minnesota which prompted his desire to own and operate a company with the same moral values integrity and trust found in his small-town community
WHO WE AREValor Mechanical is a full-service commercial mechanical contractor based out of Harmony MN with a second location in Rochester MN Valor operates on these principle core values integrity trust and strong relationships all with a high level of customer service These values were instilled by Ty Bestor
CEO and all who work at Valor share in these values and in Tyrsquos business passion
WHAT WE DOThe experienced team at Valor Mechanical listens to the customersrsquo needs and objectives then creates a customized solution Valor creates cost-efficient solutions by allowing our team to approach every project from an engineering-first perspective Before finalizing mechanical numbers we explore every issue and concern with the project team The main constants among our technicians engineers and trained craftsmen is experience dedication and their commitment to Valorrsquos core values
Hosted By
wwwRochesterAreaBuilderscom6 | July 2014
What Green Building Expomdashan event for the
public
When Saturday September 20 2014
Where Cascade Meadow Wetlands and
Environmental Science Center
Time 9amndash 3pm
Who You If your business has anything to do with making a home more
energy efficient more sustainable sign up for a booth and we will review
Areas we are looking for
Buildings Health and Wellness Site Development Landscaping and Drain-
age
Cost $200mdashfor a measly $200 you get a 6 foot booth and countless mem-
bers of the public to talk to about your business
$50 to present The com-
topics to be presented
Signature Event Sponsors
EXHIBITORS NEEDED
C
M
Y
CM
MY
CY
CMY
K
RFP-pdf 6202014 105738 AM
WwwRochesterAreaBuilderscomJuly 2014 | 7
Business
Contact Name
Nature of Business
Payment Method (Please Circle) Check Credit Card
Credit Card Number Security Code
Yes No
Signature Event Sponsors
faxing it to Rochester Area Builders at 507-282-6351
If you would like to mail in the form please mail it to
Rochester Area Builders
108 Elton Hills Ln NW
Rochester MN 55901
Please note that Rochester Area Builders will
ability of your business to the Green Building
respond to you by August 22 2014 with the
final decision Space is limited so sign up
fast
C
M
Y
CM
MY
CY
CMY
K
RFP - Registration-pdf 6202014 105556 AM
wwwRochesterAreaBuilderscom8 | July 2014
RAB Golf OutingAssociation Scrapbook
WwwRochesterAreaBuilderscomJuly 2014 | 9
Association ScrapbookRAB Golf Outing
wwwRochesterAreaBuilderscom10 | July 2014
CBC Social EventAssociation Scrapbook
WwwRochesterAreaBuilderscomJuly 2014 | 11
Association ScrapbookCBC Social Event
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0-1 = 81 5 BEVERAGE SPONSOR N
0-1 = 81 4 EVENT SPONSORS N
0-1 = 81 2 DETAILS N
0-1 = 81 3 RSVP N
0-1 = 81 1 EVENT N
Donrsquot forget to RSVPIf you attend amp did not RSVP we may not have enough food so let us know
Deadline to RSVP is Monday April 14th at 1200 Noon
Phone 507-282-7698 Fax 507-282-6351
Email RABRochesterAreaBuilderscom
3rsquo - 9rdquo
1rsquo -
10rdquo
CBC Social EventWildwood Sports Bar amp Grill
1517 16th St SW Rochester MN 55902Wednesday May 16th 430 ndash 700 PM
Join us at Wildwood Sports Bar amp Grill for our 2nd Annual Commercial Builders Council Social Event Socialize and network with your fellow Members in a relaxed environment Enjoy a free Cajun buffet
and beer thanks to our great sponsors
wwwRochesterAreaBuilderscom12 | July 2014
RAB Golf Outing Review
Gazebo SPONSORCommercial Builders Council
PUTTING CONTEST SPONSORMinnesota Energy Resources
CLOSEST TO THE FLAGThe Builders Group
BREAK THE GLASSMarvin Windows amp Doors
CIGAR CART SPONSORTradesmen International Inc
DRINK CART SPONSORSCarpet OneKnutson Construction Services
TEE amp GREEN SPONSORSABC Supply Company IncBraun Intertec CorporationCO Brown AgencyCambriaCharter BusinessClements Chevrolet Cadillac SubaruData-Smart Computers IncDunlap amp SeegerEnergy Products amp DesignGerhardrsquosHome Federal Savings BankKreofsky Building SuppliesKruse LumberMBT BankMcGhie amp Betts A Div of WSBMcGladreyMerchants BankMinnwest BankOlmsted National BankPost-Bulletin Company LLCProBuild Company LLCPine Island LumberPompeii Painting IncPremier Bank RochesterRochester Title amp Escrow CoSmith Schafer amp AssociatesSomerby Golf CommunityWarnerrsquos Stellian ApplianceWendland UtzWerner Electric SupplyWomen Communications LLCYaggy Colby Associates
APPETIZER SPONSORSCrescent Electric Supply CompanyCRW architecture + design groupOhly Law OfficeViking Electric Supply
CART SPONSORSThe Blue Book of Building amp
ConstructionBrock White CompanyCRW architecture + design groupCustom AlarmCustom
Communications IncEastwood BankFirst Security BankPrimeLendingThompsonrsquos Garage Door and
Openers
Thank You to our wonderful SponsorsGold Tee Sponsor
WwwRochesterAreaBuilderscomJuly 2014 | 13
For this monthrsquos ldquoHey Matt Whatrsquos Up With Thatrdquo we are talking about Subcontractor Registration and sump pumps
ldquoHey Matt whatrsquos up with Subcontractor Registrationrdquo
This legislative session a pilot program by the Department of Labor and Industry (DLI) was codified into law making it binding upon all contractors in Minnesota The program aims to crack down on subcontractors not registering with DLI and claiming independent contractor status to get around some workers compensation laws
The program works like this if a subcontractor is not registered with DLI and does not fulfill the 9 factor test for being an independent contractor DLI fines the general contractor We fought this law during the legislative session and thankfully we received a one-time hall pass That means that the first time that a general contractor hires a subcontractor that is not registered with DLI they will not be fined This is something we fought for when we saw the writing on the wall that this would become law
Going forward subcontractors make sure you are registered with DLI It may affect your ability to work for certain GCs And GCs the onus is on YOU to make sure the subs you hire are registered You can check with DLI on their website using a nifty little search tool RAB will be running our membership list through DLIrsquos registered contractors list and we will be contacting those who arenrsquot registered to give them a friendly reminder
ldquoHey Matt I hear a lot of people talking about Sump Pumps all of a sudden Whatrsquos up with thatrdquo
What a wet spring so far With so much water falling from the sky and soaking the ground its no surprise that sump pumps have become a topic of discussion Recently RAB was reminded by the building safety department of Rochester that if you have a sump basket in a house there must be a discharge line installed and a pump placed in the basket This is a part of the Minnesota state building code The building safety department explained that they are running into a lot of homes with baskets installed that have no discharge line or pump in the basket
We have also heard concerns from some builders that they can put a pump in the sump basket but if it doesnrsquot run for over 6 months it will seize up and not work when needed Homeowners make sure to follow the manufacturerrsquos instructions for maintenance on these sump pumps The most common maintenance step for these pumps is to ocasionally pour water into the sump basket during the winter and let the pump run This is an important step to make sure your basement doesnrsquot become a wading pool
Thanks to the members who sent me these questions for this monthrsquos edition of ldquoHey Whatrsquos up with Thatrdquo As always if you have a question about anything you find interesting or confusing during your work day give me a call or send an email and hopefully I can find out the answer for you
Matt
Oh and one more thing
ldquoHey Matt did you put a ring on itrdquo
Yes itrsquos true Matt proposed to and more importantly was accepted by his now fiance Loryn Meloy Congratualtions to the happy couple
wwwRochesterAreaBuilderscom14 | July 2014
What Wersquore Doing For YouCWGQ Insurance
TBG Insurance
Gov Relations
Legal Action
Education
Online Forums
Action Center
Energy Payback
Visit wwwbamnorg and log-in to the Members Only site for more information on these BAM initiatives
BUILDERSASSOCIATION OF MINNESOTA
T 6516467959T 8006547783W wwwbamnorg
Executive Committee
BAM Update June 2014
The Minnesota Department of Labor and Industry (DLI) has stated they plan to start enforcing the new Minnesota Building Code in January of 2015 They have not yet released the final version of the code so we donrsquot know exactly what will be included However based on what is known the Builders Association of Minnesota (BAM) is working to provide members with code guides with a planned release date near the end of August 2014
BAM has contracted with Ed VonThoma of Building Knowledge Inc and has assembled a group of statewide members to create and vet the following code guide documentsbull Top 20 Code Changes in the Residential Building Codebull Top 20 Code Changes in the Energy Codebull Field Guide to Residential Code bull Field Guide to Energy Code bull Field Guide to Radon bull Field Guide to Foundation Wall Support bull Field Guide to Residential Fire Sprinklers
These guides are a major benefit of membership and available ONLY to members DLI issues the codes but BAM is the organization that develops guides on how to implement the new codes BAM will be providing members with access to each of these seven documents The documents will be available on the BAM website and optimized for both printing and easy viewing on your mobile devices out in the field These guides will form the basis for continuing education courses and BKI will be available to teach classes around the state to help members prepare to build to the new code
If you have industry peers that will benefit from having these guides tell them to join your local builders association and enjoy 3-in-1 membership to access BAMrsquos field guides and other value added benefits such as our home builidng industry specific construction contracts
Thank you to BAM members who are genersouly donating their time to help perfect the members-only guides Thank you to Daniel Buuck Clay Dietrich Jon Coty George Cundy Terry Hammack Chad Kompelien Keith Kylmala Kevin Maleska John McGuine Trace Mills Monte Mraz Kathe Ostrom Mike Paradise Craig Plekkenpol Joe Ranweiler David Werschay and Howie Zetah
We will keep you updated on news from DLI about the new codes timeline BAM will be releasing the field guides starting with the ldquoTop 20rdquo Residential and Energy Codes Field Guides at the end of the summer with the remainder released far in advance of the January 24 2015 code enforcement date
President Chad Kompelein
Builder VPKC Chermak
Associate VPGeorge Cundy
President ElectMike Paradise
TreasurerGerry Traut
SecretaryKurt Welker
Past PresidentKeith Kylmala
NAHB RepresentativeKathe Ostrom
WwwRochesterAreaBuilderscomJuly 2014 | 15
Committee UpdatesEDUCATION COMMITTEECHAIRPERSON VACANT
This committee is currently meeting to plan our education seminars for this winter The first round of CE classes to continue holding your Lead Certification is this year We will be offering these classes later this Fall for members renewing Lead Certification in December and again in the Winter for those renewing in April 2015 Regular CE credit classes will be held in January and February If you have any suggestions for presentations or speakers please call the office and talk to Rebekah
Committee ChairpersonsAMBASSADORSGreg Hird First Alliance Credit UnionAWARDSTBABUILDING MAINTENANCETJ Schutz Advanced Building Center IncBUILDING SAFETY ADVISORYMickey Elias Elias Construction LLCCOMMUNITY RELATIONSTony Kunz Hillerrsquos Flooring AmericaDISPUTE RESOLUTIONJohn Kuntz Kuntz Electric IncEDUCATIONVacantEXECUTIVEKevin Worden Rochester Area Habitat for HumanityFASHION SHOWKaren Blissenbach Design Studio BFINANCECarla Kilpatrick Home Federal Savings BankGOLF OUTINGLindsey Rippentrop Olmsted National BankGOVERNMENT AFFAIRSJohn Eckerman The Boldt CompanyGREEN BUILDINGKelly OrsquoMarro XRG Concepts LLCHOME SHOW ndash 2013Jeff Kalmes Hillers Flooring AmericaMARKETINGRob Easthouse Electrical Solutions amp ServiceMEMBERSHIP amp RETENTIONDan Bochman Kruse LumberNOMINATINGKerk Johnson Schwickertrsquos Tecta America LLC PERSONNELKevin Worden Rochester Area Habitat for HumanityPROGRAMDan Plizga Weis Builders IncPUBLIC WORKS ADVISORYJeff Broberg McGhie amp Betts - a Division of WSB amp Associates IncSHOWCASE OF HOMESBrandon Vagt XRG Concepts LLCSPIKE CLUBJay Burke Heartwood Homes of Rochester IncSPORTING CLAYSJames Coyle Kane amp Johnson Architects Inc
CouncilsBER EXECUTIVE COMMITTEEJJ Webster Kraus-Anderson Construction CompanyCBC EXECUTIVE COMMITTEEChris Terry Knutson Construction ServicesDEVELOPMENT COUNCILJohn Sipple Rochester Area Appraisals LLCREMODELERS EXECUTIVE COMMITTEESam Peyton Kingrsquos Flooring LLCREMODELERS TOURKaren Blissenbach Design Studio B
wwwRochesterAreaBuilderscom16 | July 2014
July Summer OutingWednesday July 16th 6 - 8 PM
Wildwood Sports Bar amp Grill1517 16th Street SW Suite C
Program
Cost is $15 per person Seating will be limited More details will be coming soon
RemodelersRemodelersRemodelers
WwwRochesterAreaBuilderscomJuly 2014 | 17
WErsquoRE HERE TO HELP Natural gas is a great energy
value Xcel Energy can help you with all of your energy-related
building needs including natural gas and electric We even off er
rebates for qualifying natural gas appliances Contact us today
and fi nd out how we can help you
Visit xcelenergycomEnergyPartners today
call 1-800-628-2121 or fax 1-800-628-2521
ENERGYVALUEBESTHO
OK UP
with the
copy 2013 Xcel Energy Inc
xcelenergycomEnergyPartners
13-XCL-00255-B_MNB_HookUp(Combo)_73125x475_4c_LOindd 1 5613 321 PM
A special offer formembers onlyRegister now and save 2 on your Lowersquos Accounts Receivable
purchases Plus get free delivery on purchases of $500 or moredagger
To register visit LowesForProscomNAHB or call 877-435-2440
Offer is not automatic See store for detailsOffer valid now through 12312014 Cannot be combined with any other statement discount To be eligible for the 2 discount you must register your NAHB membership by 12312014 and make a purchase with your Lowersquos Accounts Receivable by 12312014 Allow one to two complete billing cycles for your registration to be processed and for your discount to appear on your billing statement Offer and discount provided by Lowersquos and not GE Capital Retail Bank Excludes Lowersquos Business Account Card Lowersquos Consumer Credit Card Lowersquos Visa Accounts Lowersquos Business Rewards from American Express Card and all Lowersquos Canada Credit projects Offer not valid on purchases made prior to registering NAHB membership at LowesForProscom Call 877-435-2440 for questions about this program All purchases subject to credit approval daggerStandard delivery rules apply copy2014 Lowersquos LOWErsquoS Gable Mansard Design are registered trademarks of LF LLC
Lowes_2014 NAHB-HALFPAGEindd 1 112613 1222 PM
wwwRochesterAreaBuilderscom18 | July 2014
2014 VALUATION 2013 VALUATION
New Residential Single Family Dwelling 25 5531411 28 7133572
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 19 107504 56 286615
Room Addition 3 278763 2 82000
Porch Additions 0 0 0 0
Other Additions 0 0 2 43200
Basement Finish 29 342255 27 371975
Alterations 50 516115 47 325798
Multi-Family Addition 0 0 1 810
Multi-Family Alterations 2 113000 16 169000 New Commercial Assembly (Church) 0 0 0 0
Assembly (General) 0 0 0 0
Assembly (RestaurantBar) 1 1561000 1 700000
Business 0 0 1 225000
Education 0 0 0 0
FactoryIndustrial 0 0 0 0
Institution 0 0 0 0
Mercantile 0 0 0 0
Miscelaneous 0 0 0 0
Utility (General) 1 130000 1 3850
Residential (CareAssisted Living) 0 0 0 0
Storage (General) 1 45000 0 0
Storage (Warehouse) 0 0 1 532594 Existing CommercialAddition 8 5812413 1 15406
Alterations 34 5984762 36 34644913
Structural Shell 0 0 0 0
ldquoWhite Boxrdquo 1 15000 0 0
Interior Demolition Only 3 48500 3 16706
Other Phased Permits 0 0 0 0
Other ConstructionBusiness Signs 15 106565 6 15224
Advertising Sign 1 18000 0 0
Footings amp Foundations 2 220000 11
Demolition 3 1
Rochester Building Permits April 2014
January 33 39 27 20 3 13 3 6 19 11
February 31 31 19 13 1 8 8 20 15 14
March 59 37 30 29 16 27 24 32 29 28
April 58 58 44 27 29 25 19 29 39 25
May 77 69 50 30 33 20 14 22 27 35
TOTAL 258 234 172 119 82 93 68 109 129 113
June 81 59 43 36 36 12 26 32 33
July 58 36 60 23 21 23 8 39 39
August 69 36 43 28 26 15 18 38 21
September 65 31 33 28 33 10 19 22 23
October 71 49 34 19 31 14 16 23 34
November 40 38 23 26 30 21 20 22 26
December 60 23 11 16 15 12 16 14 22
TOTAL 702 506 417 302 274 200 191 299 326 113
Single Family Homes
Year To Date Statistics 2014 2013 NO VALUATION NO VALUATION
Building Permits Issued to Date 881 147003028 825 100011030
Single Family Dwelling 109 26968957 130 30405563
Multi-Family Buildings Total Units 39 1 3702052 0 0
Trade Permits Issued to Date 2978 30568713 2326 27697853
Electrical 1050 13657783 878 15240984
Electrical (Temp Service) 103 30950 115 29700
Mechanical 731 6606354 685 6221377
Gas Piping 198 417331 185 141995
Fireplace 163 417589 148 344814
Hydronic System 69 3689975 50 1105942
Plumbing 664 5748731 653 4613041
Total Permits YTD 3859 177571741 3151 127708883
Information and downloads available at Rochester Building Safety Departmentrsquos Website httpwwwrochestermngovdepartmentsbldgsafetyreportsbuildingindexasp
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
total may differ as permits may have been voided
WwwRochesterAreaBuilderscomJuly 2014 | 19
Rochester Real EstateMonthly Housing DataMarch 2014
Monthly Housing Data March 2014 March 2013 Change
New Listings 311 320 -28Active Listings Year to Date
1087 1195 -90
Pending Listing 173 212 -184Sold Listings 128 144 -111Sold Listings Year to Date
312 342 -88
Median Sales Price (SOLD)
158000 153150 30
SOLD Days on Market (DOM)
81 100 -1900
Avg Year to Date (DOM)
86 110 -2182
Information and downloads available at South East Minnesota Association of REALTORSrsquo
Website httpsemnrealtorsorggeneralstats_market-trendshtml
Information Provided By
MARCH 2014
New Residential NUMBER VALUATION
Single Family Detached 8 1263500
New Commercial
Commercial 1 142000
Existing Residential
Deck Addition 15 55113
Basement Finish 1 3600
Alterations 2 5800
Accessory Building 1 5000
ByronBuilding Permits
MARCH 2014
New Residential NUMBER VALUATION
Single Family 3 402000
Existing Residential
Deck Addition 3 15000
Alterations 9 49000
Reroof 10 50000
Existing Commercial
Reroof 2 10000
Pine IslandBuilding Permits
wwwRochesterAreaBuilderscom20 | July 2014
Despite GDP growth stalling in Q1 due to the Polar Vortex slower inventory accumulation and mildly lower exports the economic recovery remains intact The anemic performance of the US economy from January through March was aberrant and the incoming employment manufacturing and consumer spending data all point to an economic pickup GDP growth the rest of the year should average 3 with growth in Q2 closer to 325 as the economy rebounds from the harsh winter In addition reduced fiscal drag from DC increased hiring and spending by state and local governments and increased corporate spending on plant and equipment suggest we are finally entering a period of faster growth
That said economically all is not well Wage growth remains anemic and while the unemployment rate is 63 down from 10 the fall is largely due to a decline in the labor force participation rate The ranks of the long-term unemployed remain elevated along with the number of those working part-time because they canrsquot find full time work Add to that average overtime hours that are remarkably high and termination rates that are very low and what you have are employers very reluctant to hire This situation cannot persist and of late job creation numbers have been on the upswing Therefore net job creation will rise from 200000month where it has been for the past year to 220000 or 225000 by year end and unemployment will probably fall to 61 I expect wage growth to start picking up steam in 2015
The biggest drag on the economy is housing After a promising first half of 2013 the housing market is at best flat While rising interest rates and home prices a lack of inventory and lots shortages of materials and labor and a lack of credit and first-
time buyers play a part weak household formation is the main culprit After averaging over 12 million in the years prior to the Great Recession household formations have been averaging 500000 since the end of the recession The good news - household formation will rise now that all eight million jobs lost during the recession have been finally made up We are no longer making up lost ground Because of this new single-family construction activity in 2014 will reach 700000 with multifamily adding 350000 while existing home sales should be down slightly from last year
As for inflation itrsquos benign No matter how measured there is no inflation to speak of in the US Commodity prices will remain well-behaved given weak demand due to economic slowing in China and weak growth in Europe and the developing nations Absent some sort of geopolitical crisis energy prices will remain where they are thanks to record US oil production As a result expect tapering to end in November and for the Federal Reserve to begin raising short-term interest rates by mid-2015 However long-term rates have bottomed and 10-yr Treasuries will end the year at about 3 as the economy steadily strengthens
In short the economy is improving and Q1 was a speed bump Long term rates will rise short-term rates will remain unchanged and housing will limp into 2015 with prices rising slightly Most critically household formation will strengthen and corporate state and local government spending will rise Lastly the likelihood of a recession during the next six months is virtually zero
Economic Forecast for 2nd Half of 2014 Increasing Momentum Reduced Headwinds
Elliot Eisenberg PhD
Elliot Eisenberg PhD is President of GraphsandLaughs LLC and can be reached at Elliotgraphsandlaughsnet His daily 70 word economics
and policy blog can be seen at wwwecon70com
WwwRochesterAreaBuilderscomJuly 2014 | 21
CUSTOM HOMES BY BRADLEY INCRochester MN 55901Phone 507- 358-8681Contact Brad Goeden
Builder MemberResidential Builder
Sponsored byNone Listed
MEMBERSHIPS PENDINGNONE
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 943
As of 53114
WE WELCOME THE FOLLOWING NEW MEMBERS IN MAY
Membership Information
Membership Renewals as of 53114
One Year
Alpha Video amp Audio 2013GulfEagle Supply 2013
Two to Four Years
The Design Connection 2012Hammer Homes Inc 2011Steel Constructors Inc 2011
Five to Nine Years
Kingrsquos Flooring LLC 2009Turtle Creek Construction Inc 2009The Blue Book of Building amp Construction 2007Bruce Bucknell Construction Inc 2006McGough Construction 2006Schoeppner Inc 2006Cravath Homes LLC dba Accessibility Solutions
2005
Prime Time Painting of Rochester LLC 2005Ten to 19 Years
Elcor Realty of Rochester Inc 2004RJ Manemann Custom Homes 2004DMC Plumbing amp Heating Inc 2003Fairway Outdoor Advertising LLC 2003Innovative Surfaces Inc 2002Design Studio B 2001SL Contracting 1998
25 Years amp More
Hentges Glass Company 1991Larson Siding amp Windows 1986Merit Contracting Inc 1982Sargentrsquos Landscape Nursery Inc 1977CO Brown Agency 1970Holt Title Guaranty Company Inc 1958Palmer Soderberg Inc 1958
NEW APPLICANTS
ULTIMATE SURFACES1233 Eastgate Drive SERochester MN 55904Phone 507- 258-5439Contact Tony Heintz
Associate MemberFabricator
Sponsored bySam Peyton Kingrsquos Flooring LLC
wwwRochesterAreaBuilderscom22 | July 2014
Put your membershipto work nowMoney-saving discounts that benefit yourbusiness your employees and your family
wwwnahborgMA
National Association of Home Builders
R
wwwRochesterAreaBuilderscom2 | July 2014
copy C
AM
BR
IA 2
014
build your reputation
with Cambria
Inspire your clients with a world of interior design opportunities at the new Cambria Gallery ndash Rochester In our expertly curated showroom their imaginations will be free to wander as they take in more than 100 trend-setting designs innovative kitchen and bath installations and full slabs Wersquove got lots of room for you to meet and talk with clients so stop by any time and make our space your space
NEW CAMBRIA GALLERY - ROCHESTERDeDee Marzolf Gallery Manager 400 S Broadway | 507-206-2323
Mon-Fri 8am-6pm | Thur 8am-8pmSat-Sun 11am-4pm
2863_AD_Rochester Area Builders Ad-FINALindd 1 61314 818 AM
WwwRochesterAreaBuilderscomJuly 2014 | 3
June 12 2014 ldquoCome gather lsquoround people wherever you roam and admit that the waters around you have grownhellip for the times they are a-changingrdquo -Bob Dylan
Hello and Happy July to all
Though Bob Dylan didnrsquot have the Rochester of 2014 in mind when he wrote these lyrics decades ago he certainly could have Anyone who has picked up a Post-Bulletin walked around downtown or generally lived anywhere outside of a cave for the past 18 months knows that we are on the cusp of very substantial growth and changes in our region Through a recently- released Comprehensive
Housing Needs Assessment report conducted by Maxfield Research we now know that our region needs not just more housing but different housing options in response to a changing population
QUICK QUIZ The most rapid rate of population growth in the Rochester area between now and 2018 lies with what age segment of the population If you guessed the ldquoyoung professionalrdquo generation like I did you are not correct The age 65-74 cohort is expected to take that title Baby boomers will be looking for a wider variety of housing options in their retirement years than past generations have expected Are you ready for them
Here are a few other things I learned from reviewing the study (statements are my paraphrasing and interpretations not direct quotes unless noted)
bull Itrsquos not all about just Rochester Demand for housing will be ldquofluidrdquo throughout the county eg more senior housing projects in Stewartville would reduce the demand for the same in Rochester Note to cities area builders are your partners in ensuring your townrsquos future prosperity Letrsquos work together
bull We have a greater percentage of homes occupied by someone with a disability To no onersquos surprise in the Med City region we exceed the state average by over 60 (16 of all households vs an average of 10) Meeting the housing needs of all of our residents can benefit everyone involved
bull Affordability continues to be a concern and will require more than one solution More renters than owners are ldquocost-burdenedrdquo by their housing (paying more than 30 of their income) and this problem is likely to persist due to low vacancy rates
bull The need for a central ldquoone-stop shoprdquo in our local government for navigating housing policies and processes long advocated for by RAB is independently established in this study This valuable position could help customers to navigate housing codes and regulations and encourage partnerships between the public and private sectors
Check wwwrochesteraerabuilderscom for a summary of the full study Or if yoursquore feeling really ambitious you can find the full report (all 340 pages) on the Rochester Area Foundationrsquos web site Special thanks to them as well as to the Mayo Clinic and Olmsted County for sponsoring this important effort
Herersquos to ldquobuildingrdquo a strong future in the Rochester area Have a great month
Kevin Worden2014 RAB President
Index News from the President 3Thank Yous 3From the Directorrsquos Desk 4June Networking Night 5Green Building Expo 6-7Association Scrapbook 8-11RAB Golf Outing Review 12Hey Matt Whatrsquos up with that 13BAM Update 14Committee Updates 15Remodel It Right News 16Rochester Permits 18ByronPine Island Permits 19Real Estate Data 19Elliot Eisenberg Article 20Membership Information 21NAHB Member Discounts 22
Executive DirectorEditor 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 monthly to its members and others associated with the building industry Neither the advertisers nor RAB will be responsible or liable for misinformation misprints typographical errors etc herein contained
108 Elton Hills Lane NW Rochester MN 55901 Phone 507-282-7698 Fax 507-282-6351E-mail RABRochesterAreaBuilderscom
News from The President
May Networking Night
Thank you to Gerhards for hosting the May Networking Night Thanks to Bruce Renae and the rest of the staff They did a great job with the food and gave away lots of goodies for those in attendance
Walt Pappas Walt Pappas Construction won a Kohler Touchless flush mechanism Shockingly Jean DeWitz DeWitz home Builders was the winner of a Moen faucet Mike Paradise Bigelow Homes won a $30 gift card to Michaelrsquos courtesy of Post Bulletin
Thank You
wwwRochesterAreaBuilderscom4 | July 2014
From The Directorrsquos DeskA Hard Fought Battle
As you are now probably aware beginning in 2015 some single family homes built in Minnesota will require fire suppression systems aka fire sprinklers In a nutshell this requirement will be in homes larger than 4500 square feet including basements but excluding garages We fought hard through several legislative sessions to keep fire sprinklers a home ownerrsquos choice but in the end Governor Dayton decided that other special interests outweighed our valid and statistically proven arguments and increased the cost of housing for Minnesotans This will be an issue that we will continue to face as the Commissioner of DOLI has gone on record stating that fire sprinklers should be in ALL new homes Wersquoll keep you posted
There were a lot of people members and non-members who were heavily involved in our efforts but I want to give special recognition to one non-member that really went above and beyond That person is Senator Dave Senjem Over the past year whenever I would see Senator Senjem at community events the first thing he would say to me is ldquoGotta keep those sprinklers a choicerdquo He truly championed our issue at every opportunity and his last attempt was extremely effective (and a brilliant political move according to Remi Stone) at bringing the issue into the overall political discussion Senator Senjem has always been a great advocate for the Building Industry even before fire sprinklers came to the forefront So if you run into Senator Senjem this summer make sure to thank him for working hard for our industry
RAB Executive Director
WwwRochesterAreaBuilderscomJuly 2014 | 5
President Kevin Worden Rochester Area Habitat for HumanityVice President John Eckerman The Boldt Company
Secretary Lindsey Rippentrop Olmsted National Bank
Treasurer Carla Kilpatrick Home Federal Savings Bank
Past President Jean DeWitz DeWitz Home Builders Inc
Directors Karen Blissenbach Design Studio B Christy Buchan Energy Products amp Design Inc
Delbert Feenstra Knutson Construction Services Rob Jones Superior Mechanical Levi Kaiser Alvin E Benike Inc Bruce Laufenburger First General Services of SE MN Sam Peyton Kingrsquos Flooring LLC Brian Shehan Weis Builders Inc
Builders Exchange Council Representatives
JJ Webster Kraus-Anderson Construction Company Chair Jake Schleusner Merit Contracting Inc Vice Chair Tony Wintheiser Hentges Glass Past Chair
Commercial Builders Council Chris Terry Knutson Construction Services Chair Nick Leimer Kraus-Anderson Construction Company Vice Chair
Development Council Chair John Sipple Rochester Area Appraisals LLC
Remodelers Council Chair Sam Peyton Kingrsquos Flooring LLC
National Life Directors Joe Weis Weis Builders Inc
National Directors Steve Buss Cornerstone Builders amp Real Estate Inc Mike Coats MEC Construction Inc David Kane Kane amp Johnson Architects Inc Rep Rory Lenton Minnesota Energy Resources Corp
State Directors Jim Gander Superior Mechanical John McGuine Schoeppner Inc Rep Mike Paradise Bigelow Homes David Pederson Dunlap amp Seeger Dan Severson Dan Severson Builders Inc
Executive Director John Eischen
JEischenRochesterAreaBuilderscom
Staff Audra Bolduan
ABolduanRochesterAreaBuilderscom Marketing Builders Exchange Trustees
Matt Limoges MatthewLRochesterAreaBuilderscom Government Affairs Commercial Builders Council Development Council Building Safety Advisory Group Public Works Advisory Group Community Relations Green Building Marketing
Sharill Mueller SMuellerRochesterAreaBuilderscom Home Show Showcase Committee
Rebekah Nielsen RNielsenRochesterAreaBuilderscom Ambassadors Education Membership
Program Spike Club Remodelers Council -Executive-Home Tour-
Ryan Kling-Punt RPuntRochesterAreaBuilderscom Golf Outing Sporting Clays Directory Newsletter E-News Update
Join us at the JuneSummer Networking Night
Tuesday June 24th at the Valor Mechanical Inc
416 S Broadway(Click Address for Map)
Hours 500 pm - 700 pm
OUR HISTORYValor Mechanical was founded in June 2006 by Ty Bestor The dream vision and the current evolution of Valor was implemented in September 2012 Ty has over 35 years of experience in the mechanical construction industry Ty was born and raised in a small rural community in southeast Minnesota which prompted his desire to own and operate a company with the same moral values integrity and trust found in his small-town community
WHO WE AREValor Mechanical is a full-service commercial mechanical contractor based out of Harmony MN with a second location in Rochester MN Valor operates on these principle core values integrity trust and strong relationships all with a high level of customer service These values were instilled by Ty Bestor
CEO and all who work at Valor share in these values and in Tyrsquos business passion
WHAT WE DOThe experienced team at Valor Mechanical listens to the customersrsquo needs and objectives then creates a customized solution Valor creates cost-efficient solutions by allowing our team to approach every project from an engineering-first perspective Before finalizing mechanical numbers we explore every issue and concern with the project team The main constants among our technicians engineers and trained craftsmen is experience dedication and their commitment to Valorrsquos core values
Hosted By
wwwRochesterAreaBuilderscom6 | July 2014
What Green Building Expomdashan event for the
public
When Saturday September 20 2014
Where Cascade Meadow Wetlands and
Environmental Science Center
Time 9amndash 3pm
Who You If your business has anything to do with making a home more
energy efficient more sustainable sign up for a booth and we will review
Areas we are looking for
Buildings Health and Wellness Site Development Landscaping and Drain-
age
Cost $200mdashfor a measly $200 you get a 6 foot booth and countless mem-
bers of the public to talk to about your business
$50 to present The com-
topics to be presented
Signature Event Sponsors
EXHIBITORS NEEDED
C
M
Y
CM
MY
CY
CMY
K
RFP-pdf 6202014 105738 AM
WwwRochesterAreaBuilderscomJuly 2014 | 7
Business
Contact Name
Nature of Business
Payment Method (Please Circle) Check Credit Card
Credit Card Number Security Code
Yes No
Signature Event Sponsors
faxing it to Rochester Area Builders at 507-282-6351
If you would like to mail in the form please mail it to
Rochester Area Builders
108 Elton Hills Ln NW
Rochester MN 55901
Please note that Rochester Area Builders will
ability of your business to the Green Building
respond to you by August 22 2014 with the
final decision Space is limited so sign up
fast
C
M
Y
CM
MY
CY
CMY
K
RFP - Registration-pdf 6202014 105556 AM
wwwRochesterAreaBuilderscom8 | July 2014
RAB Golf OutingAssociation Scrapbook
WwwRochesterAreaBuilderscomJuly 2014 | 9
Association ScrapbookRAB Golf Outing
wwwRochesterAreaBuilderscom10 | July 2014
CBC Social EventAssociation Scrapbook
WwwRochesterAreaBuilderscomJuly 2014 | 11
Association ScrapbookCBC Social Event
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BCDEFGHIJ A
0-1 = 81 5 BEVERAGE SPONSOR N
0-1 = 81 4 EVENT SPONSORS N
0-1 = 81 2 DETAILS N
0-1 = 81 3 RSVP N
0-1 = 81 1 EVENT N
Donrsquot forget to RSVPIf you attend amp did not RSVP we may not have enough food so let us know
Deadline to RSVP is Monday April 14th at 1200 Noon
Phone 507-282-7698 Fax 507-282-6351
Email RABRochesterAreaBuilderscom
3rsquo - 9rdquo
1rsquo -
10rdquo
CBC Social EventWildwood Sports Bar amp Grill
1517 16th St SW Rochester MN 55902Wednesday May 16th 430 ndash 700 PM
Join us at Wildwood Sports Bar amp Grill for our 2nd Annual Commercial Builders Council Social Event Socialize and network with your fellow Members in a relaxed environment Enjoy a free Cajun buffet
and beer thanks to our great sponsors
wwwRochesterAreaBuilderscom12 | July 2014
RAB Golf Outing Review
Gazebo SPONSORCommercial Builders Council
PUTTING CONTEST SPONSORMinnesota Energy Resources
CLOSEST TO THE FLAGThe Builders Group
BREAK THE GLASSMarvin Windows amp Doors
CIGAR CART SPONSORTradesmen International Inc
DRINK CART SPONSORSCarpet OneKnutson Construction Services
TEE amp GREEN SPONSORSABC Supply Company IncBraun Intertec CorporationCO Brown AgencyCambriaCharter BusinessClements Chevrolet Cadillac SubaruData-Smart Computers IncDunlap amp SeegerEnergy Products amp DesignGerhardrsquosHome Federal Savings BankKreofsky Building SuppliesKruse LumberMBT BankMcGhie amp Betts A Div of WSBMcGladreyMerchants BankMinnwest BankOlmsted National BankPost-Bulletin Company LLCProBuild Company LLCPine Island LumberPompeii Painting IncPremier Bank RochesterRochester Title amp Escrow CoSmith Schafer amp AssociatesSomerby Golf CommunityWarnerrsquos Stellian ApplianceWendland UtzWerner Electric SupplyWomen Communications LLCYaggy Colby Associates
APPETIZER SPONSORSCrescent Electric Supply CompanyCRW architecture + design groupOhly Law OfficeViking Electric Supply
CART SPONSORSThe Blue Book of Building amp
ConstructionBrock White CompanyCRW architecture + design groupCustom AlarmCustom
Communications IncEastwood BankFirst Security BankPrimeLendingThompsonrsquos Garage Door and
Openers
Thank You to our wonderful SponsorsGold Tee Sponsor
WwwRochesterAreaBuilderscomJuly 2014 | 13
For this monthrsquos ldquoHey Matt Whatrsquos Up With Thatrdquo we are talking about Subcontractor Registration and sump pumps
ldquoHey Matt whatrsquos up with Subcontractor Registrationrdquo
This legislative session a pilot program by the Department of Labor and Industry (DLI) was codified into law making it binding upon all contractors in Minnesota The program aims to crack down on subcontractors not registering with DLI and claiming independent contractor status to get around some workers compensation laws
The program works like this if a subcontractor is not registered with DLI and does not fulfill the 9 factor test for being an independent contractor DLI fines the general contractor We fought this law during the legislative session and thankfully we received a one-time hall pass That means that the first time that a general contractor hires a subcontractor that is not registered with DLI they will not be fined This is something we fought for when we saw the writing on the wall that this would become law
Going forward subcontractors make sure you are registered with DLI It may affect your ability to work for certain GCs And GCs the onus is on YOU to make sure the subs you hire are registered You can check with DLI on their website using a nifty little search tool RAB will be running our membership list through DLIrsquos registered contractors list and we will be contacting those who arenrsquot registered to give them a friendly reminder
ldquoHey Matt I hear a lot of people talking about Sump Pumps all of a sudden Whatrsquos up with thatrdquo
What a wet spring so far With so much water falling from the sky and soaking the ground its no surprise that sump pumps have become a topic of discussion Recently RAB was reminded by the building safety department of Rochester that if you have a sump basket in a house there must be a discharge line installed and a pump placed in the basket This is a part of the Minnesota state building code The building safety department explained that they are running into a lot of homes with baskets installed that have no discharge line or pump in the basket
We have also heard concerns from some builders that they can put a pump in the sump basket but if it doesnrsquot run for over 6 months it will seize up and not work when needed Homeowners make sure to follow the manufacturerrsquos instructions for maintenance on these sump pumps The most common maintenance step for these pumps is to ocasionally pour water into the sump basket during the winter and let the pump run This is an important step to make sure your basement doesnrsquot become a wading pool
Thanks to the members who sent me these questions for this monthrsquos edition of ldquoHey Whatrsquos up with Thatrdquo As always if you have a question about anything you find interesting or confusing during your work day give me a call or send an email and hopefully I can find out the answer for you
Matt
Oh and one more thing
ldquoHey Matt did you put a ring on itrdquo
Yes itrsquos true Matt proposed to and more importantly was accepted by his now fiance Loryn Meloy Congratualtions to the happy couple
wwwRochesterAreaBuilderscom14 | July 2014
What Wersquore Doing For YouCWGQ Insurance
TBG Insurance
Gov Relations
Legal Action
Education
Online Forums
Action Center
Energy Payback
Visit wwwbamnorg and log-in to the Members Only site for more information on these BAM initiatives
BUILDERSASSOCIATION OF MINNESOTA
T 6516467959T 8006547783W wwwbamnorg
Executive Committee
BAM Update June 2014
The Minnesota Department of Labor and Industry (DLI) has stated they plan to start enforcing the new Minnesota Building Code in January of 2015 They have not yet released the final version of the code so we donrsquot know exactly what will be included However based on what is known the Builders Association of Minnesota (BAM) is working to provide members with code guides with a planned release date near the end of August 2014
BAM has contracted with Ed VonThoma of Building Knowledge Inc and has assembled a group of statewide members to create and vet the following code guide documentsbull Top 20 Code Changes in the Residential Building Codebull Top 20 Code Changes in the Energy Codebull Field Guide to Residential Code bull Field Guide to Energy Code bull Field Guide to Radon bull Field Guide to Foundation Wall Support bull Field Guide to Residential Fire Sprinklers
These guides are a major benefit of membership and available ONLY to members DLI issues the codes but BAM is the organization that develops guides on how to implement the new codes BAM will be providing members with access to each of these seven documents The documents will be available on the BAM website and optimized for both printing and easy viewing on your mobile devices out in the field These guides will form the basis for continuing education courses and BKI will be available to teach classes around the state to help members prepare to build to the new code
If you have industry peers that will benefit from having these guides tell them to join your local builders association and enjoy 3-in-1 membership to access BAMrsquos field guides and other value added benefits such as our home builidng industry specific construction contracts
Thank you to BAM members who are genersouly donating their time to help perfect the members-only guides Thank you to Daniel Buuck Clay Dietrich Jon Coty George Cundy Terry Hammack Chad Kompelien Keith Kylmala Kevin Maleska John McGuine Trace Mills Monte Mraz Kathe Ostrom Mike Paradise Craig Plekkenpol Joe Ranweiler David Werschay and Howie Zetah
We will keep you updated on news from DLI about the new codes timeline BAM will be releasing the field guides starting with the ldquoTop 20rdquo Residential and Energy Codes Field Guides at the end of the summer with the remainder released far in advance of the January 24 2015 code enforcement date
President Chad Kompelein
Builder VPKC Chermak
Associate VPGeorge Cundy
President ElectMike Paradise
TreasurerGerry Traut
SecretaryKurt Welker
Past PresidentKeith Kylmala
NAHB RepresentativeKathe Ostrom
WwwRochesterAreaBuilderscomJuly 2014 | 15
Committee UpdatesEDUCATION COMMITTEECHAIRPERSON VACANT
This committee is currently meeting to plan our education seminars for this winter The first round of CE classes to continue holding your Lead Certification is this year We will be offering these classes later this Fall for members renewing Lead Certification in December and again in the Winter for those renewing in April 2015 Regular CE credit classes will be held in January and February If you have any suggestions for presentations or speakers please call the office and talk to Rebekah
Committee ChairpersonsAMBASSADORSGreg Hird First Alliance Credit UnionAWARDSTBABUILDING MAINTENANCETJ Schutz Advanced Building Center IncBUILDING SAFETY ADVISORYMickey Elias Elias Construction LLCCOMMUNITY RELATIONSTony Kunz Hillerrsquos Flooring AmericaDISPUTE RESOLUTIONJohn Kuntz Kuntz Electric IncEDUCATIONVacantEXECUTIVEKevin Worden Rochester Area Habitat for HumanityFASHION SHOWKaren Blissenbach Design Studio BFINANCECarla Kilpatrick Home Federal Savings BankGOLF OUTINGLindsey Rippentrop Olmsted National BankGOVERNMENT AFFAIRSJohn Eckerman The Boldt CompanyGREEN BUILDINGKelly OrsquoMarro XRG Concepts LLCHOME SHOW ndash 2013Jeff Kalmes Hillers Flooring AmericaMARKETINGRob Easthouse Electrical Solutions amp ServiceMEMBERSHIP amp RETENTIONDan Bochman Kruse LumberNOMINATINGKerk Johnson Schwickertrsquos Tecta America LLC PERSONNELKevin Worden Rochester Area Habitat for HumanityPROGRAMDan Plizga Weis Builders IncPUBLIC WORKS ADVISORYJeff Broberg McGhie amp Betts - a Division of WSB amp Associates IncSHOWCASE OF HOMESBrandon Vagt XRG Concepts LLCSPIKE CLUBJay Burke Heartwood Homes of Rochester IncSPORTING CLAYSJames Coyle Kane amp Johnson Architects Inc
CouncilsBER EXECUTIVE COMMITTEEJJ Webster Kraus-Anderson Construction CompanyCBC EXECUTIVE COMMITTEEChris Terry Knutson Construction ServicesDEVELOPMENT COUNCILJohn Sipple Rochester Area Appraisals LLCREMODELERS EXECUTIVE COMMITTEESam Peyton Kingrsquos Flooring LLCREMODELERS TOURKaren Blissenbach Design Studio B
wwwRochesterAreaBuilderscom16 | July 2014
July Summer OutingWednesday July 16th 6 - 8 PM
Wildwood Sports Bar amp Grill1517 16th Street SW Suite C
Program
Cost is $15 per person Seating will be limited More details will be coming soon
RemodelersRemodelersRemodelers
WwwRochesterAreaBuilderscomJuly 2014 | 17
WErsquoRE HERE TO HELP Natural gas is a great energy
value Xcel Energy can help you with all of your energy-related
building needs including natural gas and electric We even off er
rebates for qualifying natural gas appliances Contact us today
and fi nd out how we can help you
Visit xcelenergycomEnergyPartners today
call 1-800-628-2121 or fax 1-800-628-2521
ENERGYVALUEBESTHO
OK UP
with the
copy 2013 Xcel Energy Inc
xcelenergycomEnergyPartners
13-XCL-00255-B_MNB_HookUp(Combo)_73125x475_4c_LOindd 1 5613 321 PM
A special offer formembers onlyRegister now and save 2 on your Lowersquos Accounts Receivable
purchases Plus get free delivery on purchases of $500 or moredagger
To register visit LowesForProscomNAHB or call 877-435-2440
Offer is not automatic See store for detailsOffer valid now through 12312014 Cannot be combined with any other statement discount To be eligible for the 2 discount you must register your NAHB membership by 12312014 and make a purchase with your Lowersquos Accounts Receivable by 12312014 Allow one to two complete billing cycles for your registration to be processed and for your discount to appear on your billing statement Offer and discount provided by Lowersquos and not GE Capital Retail Bank Excludes Lowersquos Business Account Card Lowersquos Consumer Credit Card Lowersquos Visa Accounts Lowersquos Business Rewards from American Express Card and all Lowersquos Canada Credit projects Offer not valid on purchases made prior to registering NAHB membership at LowesForProscom Call 877-435-2440 for questions about this program All purchases subject to credit approval daggerStandard delivery rules apply copy2014 Lowersquos LOWErsquoS Gable Mansard Design are registered trademarks of LF LLC
Lowes_2014 NAHB-HALFPAGEindd 1 112613 1222 PM
wwwRochesterAreaBuilderscom18 | July 2014
2014 VALUATION 2013 VALUATION
New Residential Single Family Dwelling 25 5531411 28 7133572
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 19 107504 56 286615
Room Addition 3 278763 2 82000
Porch Additions 0 0 0 0
Other Additions 0 0 2 43200
Basement Finish 29 342255 27 371975
Alterations 50 516115 47 325798
Multi-Family Addition 0 0 1 810
Multi-Family Alterations 2 113000 16 169000 New Commercial Assembly (Church) 0 0 0 0
Assembly (General) 0 0 0 0
Assembly (RestaurantBar) 1 1561000 1 700000
Business 0 0 1 225000
Education 0 0 0 0
FactoryIndustrial 0 0 0 0
Institution 0 0 0 0
Mercantile 0 0 0 0
Miscelaneous 0 0 0 0
Utility (General) 1 130000 1 3850
Residential (CareAssisted Living) 0 0 0 0
Storage (General) 1 45000 0 0
Storage (Warehouse) 0 0 1 532594 Existing CommercialAddition 8 5812413 1 15406
Alterations 34 5984762 36 34644913
Structural Shell 0 0 0 0
ldquoWhite Boxrdquo 1 15000 0 0
Interior Demolition Only 3 48500 3 16706
Other Phased Permits 0 0 0 0
Other ConstructionBusiness Signs 15 106565 6 15224
Advertising Sign 1 18000 0 0
Footings amp Foundations 2 220000 11
Demolition 3 1
Rochester Building Permits April 2014
January 33 39 27 20 3 13 3 6 19 11
February 31 31 19 13 1 8 8 20 15 14
March 59 37 30 29 16 27 24 32 29 28
April 58 58 44 27 29 25 19 29 39 25
May 77 69 50 30 33 20 14 22 27 35
TOTAL 258 234 172 119 82 93 68 109 129 113
June 81 59 43 36 36 12 26 32 33
July 58 36 60 23 21 23 8 39 39
August 69 36 43 28 26 15 18 38 21
September 65 31 33 28 33 10 19 22 23
October 71 49 34 19 31 14 16 23 34
November 40 38 23 26 30 21 20 22 26
December 60 23 11 16 15 12 16 14 22
TOTAL 702 506 417 302 274 200 191 299 326 113
Single Family Homes
Year To Date Statistics 2014 2013 NO VALUATION NO VALUATION
Building Permits Issued to Date 881 147003028 825 100011030
Single Family Dwelling 109 26968957 130 30405563
Multi-Family Buildings Total Units 39 1 3702052 0 0
Trade Permits Issued to Date 2978 30568713 2326 27697853
Electrical 1050 13657783 878 15240984
Electrical (Temp Service) 103 30950 115 29700
Mechanical 731 6606354 685 6221377
Gas Piping 198 417331 185 141995
Fireplace 163 417589 148 344814
Hydronic System 69 3689975 50 1105942
Plumbing 664 5748731 653 4613041
Total Permits YTD 3859 177571741 3151 127708883
Information and downloads available at Rochester Building Safety Departmentrsquos Website httpwwwrochestermngovdepartmentsbldgsafetyreportsbuildingindexasp
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
total may differ as permits may have been voided
WwwRochesterAreaBuilderscomJuly 2014 | 19
Rochester Real EstateMonthly Housing DataMarch 2014
Monthly Housing Data March 2014 March 2013 Change
New Listings 311 320 -28Active Listings Year to Date
1087 1195 -90
Pending Listing 173 212 -184Sold Listings 128 144 -111Sold Listings Year to Date
312 342 -88
Median Sales Price (SOLD)
158000 153150 30
SOLD Days on Market (DOM)
81 100 -1900
Avg Year to Date (DOM)
86 110 -2182
Information and downloads available at South East Minnesota Association of REALTORSrsquo
Website httpsemnrealtorsorggeneralstats_market-trendshtml
Information Provided By
MARCH 2014
New Residential NUMBER VALUATION
Single Family Detached 8 1263500
New Commercial
Commercial 1 142000
Existing Residential
Deck Addition 15 55113
Basement Finish 1 3600
Alterations 2 5800
Accessory Building 1 5000
ByronBuilding Permits
MARCH 2014
New Residential NUMBER VALUATION
Single Family 3 402000
Existing Residential
Deck Addition 3 15000
Alterations 9 49000
Reroof 10 50000
Existing Commercial
Reroof 2 10000
Pine IslandBuilding Permits
wwwRochesterAreaBuilderscom20 | July 2014
Despite GDP growth stalling in Q1 due to the Polar Vortex slower inventory accumulation and mildly lower exports the economic recovery remains intact The anemic performance of the US economy from January through March was aberrant and the incoming employment manufacturing and consumer spending data all point to an economic pickup GDP growth the rest of the year should average 3 with growth in Q2 closer to 325 as the economy rebounds from the harsh winter In addition reduced fiscal drag from DC increased hiring and spending by state and local governments and increased corporate spending on plant and equipment suggest we are finally entering a period of faster growth
That said economically all is not well Wage growth remains anemic and while the unemployment rate is 63 down from 10 the fall is largely due to a decline in the labor force participation rate The ranks of the long-term unemployed remain elevated along with the number of those working part-time because they canrsquot find full time work Add to that average overtime hours that are remarkably high and termination rates that are very low and what you have are employers very reluctant to hire This situation cannot persist and of late job creation numbers have been on the upswing Therefore net job creation will rise from 200000month where it has been for the past year to 220000 or 225000 by year end and unemployment will probably fall to 61 I expect wage growth to start picking up steam in 2015
The biggest drag on the economy is housing After a promising first half of 2013 the housing market is at best flat While rising interest rates and home prices a lack of inventory and lots shortages of materials and labor and a lack of credit and first-
time buyers play a part weak household formation is the main culprit After averaging over 12 million in the years prior to the Great Recession household formations have been averaging 500000 since the end of the recession The good news - household formation will rise now that all eight million jobs lost during the recession have been finally made up We are no longer making up lost ground Because of this new single-family construction activity in 2014 will reach 700000 with multifamily adding 350000 while existing home sales should be down slightly from last year
As for inflation itrsquos benign No matter how measured there is no inflation to speak of in the US Commodity prices will remain well-behaved given weak demand due to economic slowing in China and weak growth in Europe and the developing nations Absent some sort of geopolitical crisis energy prices will remain where they are thanks to record US oil production As a result expect tapering to end in November and for the Federal Reserve to begin raising short-term interest rates by mid-2015 However long-term rates have bottomed and 10-yr Treasuries will end the year at about 3 as the economy steadily strengthens
In short the economy is improving and Q1 was a speed bump Long term rates will rise short-term rates will remain unchanged and housing will limp into 2015 with prices rising slightly Most critically household formation will strengthen and corporate state and local government spending will rise Lastly the likelihood of a recession during the next six months is virtually zero
Economic Forecast for 2nd Half of 2014 Increasing Momentum Reduced Headwinds
Elliot Eisenberg PhD
Elliot Eisenberg PhD is President of GraphsandLaughs LLC and can be reached at Elliotgraphsandlaughsnet His daily 70 word economics
and policy blog can be seen at wwwecon70com
WwwRochesterAreaBuilderscomJuly 2014 | 21
CUSTOM HOMES BY BRADLEY INCRochester MN 55901Phone 507- 358-8681Contact Brad Goeden
Builder MemberResidential Builder
Sponsored byNone Listed
MEMBERSHIPS PENDINGNONE
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 943
As of 53114
WE WELCOME THE FOLLOWING NEW MEMBERS IN MAY
Membership Information
Membership Renewals as of 53114
One Year
Alpha Video amp Audio 2013GulfEagle Supply 2013
Two to Four Years
The Design Connection 2012Hammer Homes Inc 2011Steel Constructors Inc 2011
Five to Nine Years
Kingrsquos Flooring LLC 2009Turtle Creek Construction Inc 2009The Blue Book of Building amp Construction 2007Bruce Bucknell Construction Inc 2006McGough Construction 2006Schoeppner Inc 2006Cravath Homes LLC dba Accessibility Solutions
2005
Prime Time Painting of Rochester LLC 2005Ten to 19 Years
Elcor Realty of Rochester Inc 2004RJ Manemann Custom Homes 2004DMC Plumbing amp Heating Inc 2003Fairway Outdoor Advertising LLC 2003Innovative Surfaces Inc 2002Design Studio B 2001SL Contracting 1998
25 Years amp More
Hentges Glass Company 1991Larson Siding amp Windows 1986Merit Contracting Inc 1982Sargentrsquos Landscape Nursery Inc 1977CO Brown Agency 1970Holt Title Guaranty Company Inc 1958Palmer Soderberg Inc 1958
NEW APPLICANTS
ULTIMATE SURFACES1233 Eastgate Drive SERochester MN 55904Phone 507- 258-5439Contact Tony Heintz
Associate MemberFabricator
Sponsored bySam Peyton Kingrsquos Flooring LLC
wwwRochesterAreaBuilderscom22 | July 2014
Put your membershipto work nowMoney-saving discounts that benefit yourbusiness your employees and your family
wwwnahborgMA
National Association of Home Builders
R
WwwRochesterAreaBuilderscomJuly 2014 | 3
June 12 2014 ldquoCome gather lsquoround people wherever you roam and admit that the waters around you have grownhellip for the times they are a-changingrdquo -Bob Dylan
Hello and Happy July to all
Though Bob Dylan didnrsquot have the Rochester of 2014 in mind when he wrote these lyrics decades ago he certainly could have Anyone who has picked up a Post-Bulletin walked around downtown or generally lived anywhere outside of a cave for the past 18 months knows that we are on the cusp of very substantial growth and changes in our region Through a recently- released Comprehensive
Housing Needs Assessment report conducted by Maxfield Research we now know that our region needs not just more housing but different housing options in response to a changing population
QUICK QUIZ The most rapid rate of population growth in the Rochester area between now and 2018 lies with what age segment of the population If you guessed the ldquoyoung professionalrdquo generation like I did you are not correct The age 65-74 cohort is expected to take that title Baby boomers will be looking for a wider variety of housing options in their retirement years than past generations have expected Are you ready for them
Here are a few other things I learned from reviewing the study (statements are my paraphrasing and interpretations not direct quotes unless noted)
bull Itrsquos not all about just Rochester Demand for housing will be ldquofluidrdquo throughout the county eg more senior housing projects in Stewartville would reduce the demand for the same in Rochester Note to cities area builders are your partners in ensuring your townrsquos future prosperity Letrsquos work together
bull We have a greater percentage of homes occupied by someone with a disability To no onersquos surprise in the Med City region we exceed the state average by over 60 (16 of all households vs an average of 10) Meeting the housing needs of all of our residents can benefit everyone involved
bull Affordability continues to be a concern and will require more than one solution More renters than owners are ldquocost-burdenedrdquo by their housing (paying more than 30 of their income) and this problem is likely to persist due to low vacancy rates
bull The need for a central ldquoone-stop shoprdquo in our local government for navigating housing policies and processes long advocated for by RAB is independently established in this study This valuable position could help customers to navigate housing codes and regulations and encourage partnerships between the public and private sectors
Check wwwrochesteraerabuilderscom for a summary of the full study Or if yoursquore feeling really ambitious you can find the full report (all 340 pages) on the Rochester Area Foundationrsquos web site Special thanks to them as well as to the Mayo Clinic and Olmsted County for sponsoring this important effort
Herersquos to ldquobuildingrdquo a strong future in the Rochester area Have a great month
Kevin Worden2014 RAB President
Index News from the President 3Thank Yous 3From the Directorrsquos Desk 4June Networking Night 5Green Building Expo 6-7Association Scrapbook 8-11RAB Golf Outing Review 12Hey Matt Whatrsquos up with that 13BAM Update 14Committee Updates 15Remodel It Right News 16Rochester Permits 18ByronPine Island Permits 19Real Estate Data 19Elliot Eisenberg Article 20Membership Information 21NAHB Member Discounts 22
Executive DirectorEditor 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 monthly to its members and others associated with the building industry Neither the advertisers nor RAB will be responsible or liable for misinformation misprints typographical errors etc herein contained
108 Elton Hills Lane NW Rochester MN 55901 Phone 507-282-7698 Fax 507-282-6351E-mail RABRochesterAreaBuilderscom
News from The President
May Networking Night
Thank you to Gerhards for hosting the May Networking Night Thanks to Bruce Renae and the rest of the staff They did a great job with the food and gave away lots of goodies for those in attendance
Walt Pappas Walt Pappas Construction won a Kohler Touchless flush mechanism Shockingly Jean DeWitz DeWitz home Builders was the winner of a Moen faucet Mike Paradise Bigelow Homes won a $30 gift card to Michaelrsquos courtesy of Post Bulletin
Thank You
wwwRochesterAreaBuilderscom4 | July 2014
From The Directorrsquos DeskA Hard Fought Battle
As you are now probably aware beginning in 2015 some single family homes built in Minnesota will require fire suppression systems aka fire sprinklers In a nutshell this requirement will be in homes larger than 4500 square feet including basements but excluding garages We fought hard through several legislative sessions to keep fire sprinklers a home ownerrsquos choice but in the end Governor Dayton decided that other special interests outweighed our valid and statistically proven arguments and increased the cost of housing for Minnesotans This will be an issue that we will continue to face as the Commissioner of DOLI has gone on record stating that fire sprinklers should be in ALL new homes Wersquoll keep you posted
There were a lot of people members and non-members who were heavily involved in our efforts but I want to give special recognition to one non-member that really went above and beyond That person is Senator Dave Senjem Over the past year whenever I would see Senator Senjem at community events the first thing he would say to me is ldquoGotta keep those sprinklers a choicerdquo He truly championed our issue at every opportunity and his last attempt was extremely effective (and a brilliant political move according to Remi Stone) at bringing the issue into the overall political discussion Senator Senjem has always been a great advocate for the Building Industry even before fire sprinklers came to the forefront So if you run into Senator Senjem this summer make sure to thank him for working hard for our industry
RAB Executive Director
WwwRochesterAreaBuilderscomJuly 2014 | 5
President Kevin Worden Rochester Area Habitat for HumanityVice President John Eckerman The Boldt Company
Secretary Lindsey Rippentrop Olmsted National Bank
Treasurer Carla Kilpatrick Home Federal Savings Bank
Past President Jean DeWitz DeWitz Home Builders Inc
Directors Karen Blissenbach Design Studio B Christy Buchan Energy Products amp Design Inc
Delbert Feenstra Knutson Construction Services Rob Jones Superior Mechanical Levi Kaiser Alvin E Benike Inc Bruce Laufenburger First General Services of SE MN Sam Peyton Kingrsquos Flooring LLC Brian Shehan Weis Builders Inc
Builders Exchange Council Representatives
JJ Webster Kraus-Anderson Construction Company Chair Jake Schleusner Merit Contracting Inc Vice Chair Tony Wintheiser Hentges Glass Past Chair
Commercial Builders Council Chris Terry Knutson Construction Services Chair Nick Leimer Kraus-Anderson Construction Company Vice Chair
Development Council Chair John Sipple Rochester Area Appraisals LLC
Remodelers Council Chair Sam Peyton Kingrsquos Flooring LLC
National Life Directors Joe Weis Weis Builders Inc
National Directors Steve Buss Cornerstone Builders amp Real Estate Inc Mike Coats MEC Construction Inc David Kane Kane amp Johnson Architects Inc Rep Rory Lenton Minnesota Energy Resources Corp
State Directors Jim Gander Superior Mechanical John McGuine Schoeppner Inc Rep Mike Paradise Bigelow Homes David Pederson Dunlap amp Seeger Dan Severson Dan Severson Builders Inc
Executive Director John Eischen
JEischenRochesterAreaBuilderscom
Staff Audra Bolduan
ABolduanRochesterAreaBuilderscom Marketing Builders Exchange Trustees
Matt Limoges MatthewLRochesterAreaBuilderscom Government Affairs Commercial Builders Council Development Council Building Safety Advisory Group Public Works Advisory Group Community Relations Green Building Marketing
Sharill Mueller SMuellerRochesterAreaBuilderscom Home Show Showcase Committee
Rebekah Nielsen RNielsenRochesterAreaBuilderscom Ambassadors Education Membership
Program Spike Club Remodelers Council -Executive-Home Tour-
Ryan Kling-Punt RPuntRochesterAreaBuilderscom Golf Outing Sporting Clays Directory Newsletter E-News Update
Join us at the JuneSummer Networking Night
Tuesday June 24th at the Valor Mechanical Inc
416 S Broadway(Click Address for Map)
Hours 500 pm - 700 pm
OUR HISTORYValor Mechanical was founded in June 2006 by Ty Bestor The dream vision and the current evolution of Valor was implemented in September 2012 Ty has over 35 years of experience in the mechanical construction industry Ty was born and raised in a small rural community in southeast Minnesota which prompted his desire to own and operate a company with the same moral values integrity and trust found in his small-town community
WHO WE AREValor Mechanical is a full-service commercial mechanical contractor based out of Harmony MN with a second location in Rochester MN Valor operates on these principle core values integrity trust and strong relationships all with a high level of customer service These values were instilled by Ty Bestor
CEO and all who work at Valor share in these values and in Tyrsquos business passion
WHAT WE DOThe experienced team at Valor Mechanical listens to the customersrsquo needs and objectives then creates a customized solution Valor creates cost-efficient solutions by allowing our team to approach every project from an engineering-first perspective Before finalizing mechanical numbers we explore every issue and concern with the project team The main constants among our technicians engineers and trained craftsmen is experience dedication and their commitment to Valorrsquos core values
Hosted By
wwwRochesterAreaBuilderscom6 | July 2014
What Green Building Expomdashan event for the
public
When Saturday September 20 2014
Where Cascade Meadow Wetlands and
Environmental Science Center
Time 9amndash 3pm
Who You If your business has anything to do with making a home more
energy efficient more sustainable sign up for a booth and we will review
Areas we are looking for
Buildings Health and Wellness Site Development Landscaping and Drain-
age
Cost $200mdashfor a measly $200 you get a 6 foot booth and countless mem-
bers of the public to talk to about your business
$50 to present The com-
topics to be presented
Signature Event Sponsors
EXHIBITORS NEEDED
C
M
Y
CM
MY
CY
CMY
K
RFP-pdf 6202014 105738 AM
WwwRochesterAreaBuilderscomJuly 2014 | 7
Business
Contact Name
Nature of Business
Payment Method (Please Circle) Check Credit Card
Credit Card Number Security Code
Yes No
Signature Event Sponsors
faxing it to Rochester Area Builders at 507-282-6351
If you would like to mail in the form please mail it to
Rochester Area Builders
108 Elton Hills Ln NW
Rochester MN 55901
Please note that Rochester Area Builders will
ability of your business to the Green Building
respond to you by August 22 2014 with the
final decision Space is limited so sign up
fast
C
M
Y
CM
MY
CY
CMY
K
RFP - Registration-pdf 6202014 105556 AM
wwwRochesterAreaBuilderscom8 | July 2014
RAB Golf OutingAssociation Scrapbook
WwwRochesterAreaBuilderscomJuly 2014 | 9
Association ScrapbookRAB Golf Outing
wwwRochesterAreaBuilderscom10 | July 2014
CBC Social EventAssociation Scrapbook
WwwRochesterAreaBuilderscomJuly 2014 | 11
Association ScrapbookCBC Social Event
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uilderscomw
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BCDEFGHIJ A
0-1 = 81 5 BEVERAGE SPONSOR N
0-1 = 81 4 EVENT SPONSORS N
0-1 = 81 2 DETAILS N
0-1 = 81 3 RSVP N
0-1 = 81 1 EVENT N
Donrsquot forget to RSVPIf you attend amp did not RSVP we may not have enough food so let us know
Deadline to RSVP is Monday April 14th at 1200 Noon
Phone 507-282-7698 Fax 507-282-6351
Email RABRochesterAreaBuilderscom
3rsquo - 9rdquo
1rsquo -
10rdquo
CBC Social EventWildwood Sports Bar amp Grill
1517 16th St SW Rochester MN 55902Wednesday May 16th 430 ndash 700 PM
Join us at Wildwood Sports Bar amp Grill for our 2nd Annual Commercial Builders Council Social Event Socialize and network with your fellow Members in a relaxed environment Enjoy a free Cajun buffet
and beer thanks to our great sponsors
wwwRochesterAreaBuilderscom12 | July 2014
RAB Golf Outing Review
Gazebo SPONSORCommercial Builders Council
PUTTING CONTEST SPONSORMinnesota Energy Resources
CLOSEST TO THE FLAGThe Builders Group
BREAK THE GLASSMarvin Windows amp Doors
CIGAR CART SPONSORTradesmen International Inc
DRINK CART SPONSORSCarpet OneKnutson Construction Services
TEE amp GREEN SPONSORSABC Supply Company IncBraun Intertec CorporationCO Brown AgencyCambriaCharter BusinessClements Chevrolet Cadillac SubaruData-Smart Computers IncDunlap amp SeegerEnergy Products amp DesignGerhardrsquosHome Federal Savings BankKreofsky Building SuppliesKruse LumberMBT BankMcGhie amp Betts A Div of WSBMcGladreyMerchants BankMinnwest BankOlmsted National BankPost-Bulletin Company LLCProBuild Company LLCPine Island LumberPompeii Painting IncPremier Bank RochesterRochester Title amp Escrow CoSmith Schafer amp AssociatesSomerby Golf CommunityWarnerrsquos Stellian ApplianceWendland UtzWerner Electric SupplyWomen Communications LLCYaggy Colby Associates
APPETIZER SPONSORSCrescent Electric Supply CompanyCRW architecture + design groupOhly Law OfficeViking Electric Supply
CART SPONSORSThe Blue Book of Building amp
ConstructionBrock White CompanyCRW architecture + design groupCustom AlarmCustom
Communications IncEastwood BankFirst Security BankPrimeLendingThompsonrsquos Garage Door and
Openers
Thank You to our wonderful SponsorsGold Tee Sponsor
WwwRochesterAreaBuilderscomJuly 2014 | 13
For this monthrsquos ldquoHey Matt Whatrsquos Up With Thatrdquo we are talking about Subcontractor Registration and sump pumps
ldquoHey Matt whatrsquos up with Subcontractor Registrationrdquo
This legislative session a pilot program by the Department of Labor and Industry (DLI) was codified into law making it binding upon all contractors in Minnesota The program aims to crack down on subcontractors not registering with DLI and claiming independent contractor status to get around some workers compensation laws
The program works like this if a subcontractor is not registered with DLI and does not fulfill the 9 factor test for being an independent contractor DLI fines the general contractor We fought this law during the legislative session and thankfully we received a one-time hall pass That means that the first time that a general contractor hires a subcontractor that is not registered with DLI they will not be fined This is something we fought for when we saw the writing on the wall that this would become law
Going forward subcontractors make sure you are registered with DLI It may affect your ability to work for certain GCs And GCs the onus is on YOU to make sure the subs you hire are registered You can check with DLI on their website using a nifty little search tool RAB will be running our membership list through DLIrsquos registered contractors list and we will be contacting those who arenrsquot registered to give them a friendly reminder
ldquoHey Matt I hear a lot of people talking about Sump Pumps all of a sudden Whatrsquos up with thatrdquo
What a wet spring so far With so much water falling from the sky and soaking the ground its no surprise that sump pumps have become a topic of discussion Recently RAB was reminded by the building safety department of Rochester that if you have a sump basket in a house there must be a discharge line installed and a pump placed in the basket This is a part of the Minnesota state building code The building safety department explained that they are running into a lot of homes with baskets installed that have no discharge line or pump in the basket
We have also heard concerns from some builders that they can put a pump in the sump basket but if it doesnrsquot run for over 6 months it will seize up and not work when needed Homeowners make sure to follow the manufacturerrsquos instructions for maintenance on these sump pumps The most common maintenance step for these pumps is to ocasionally pour water into the sump basket during the winter and let the pump run This is an important step to make sure your basement doesnrsquot become a wading pool
Thanks to the members who sent me these questions for this monthrsquos edition of ldquoHey Whatrsquos up with Thatrdquo As always if you have a question about anything you find interesting or confusing during your work day give me a call or send an email and hopefully I can find out the answer for you
Matt
Oh and one more thing
ldquoHey Matt did you put a ring on itrdquo
Yes itrsquos true Matt proposed to and more importantly was accepted by his now fiance Loryn Meloy Congratualtions to the happy couple
wwwRochesterAreaBuilderscom14 | July 2014
What Wersquore Doing For YouCWGQ Insurance
TBG Insurance
Gov Relations
Legal Action
Education
Online Forums
Action Center
Energy Payback
Visit wwwbamnorg and log-in to the Members Only site for more information on these BAM initiatives
BUILDERSASSOCIATION OF MINNESOTA
T 6516467959T 8006547783W wwwbamnorg
Executive Committee
BAM Update June 2014
The Minnesota Department of Labor and Industry (DLI) has stated they plan to start enforcing the new Minnesota Building Code in January of 2015 They have not yet released the final version of the code so we donrsquot know exactly what will be included However based on what is known the Builders Association of Minnesota (BAM) is working to provide members with code guides with a planned release date near the end of August 2014
BAM has contracted with Ed VonThoma of Building Knowledge Inc and has assembled a group of statewide members to create and vet the following code guide documentsbull Top 20 Code Changes in the Residential Building Codebull Top 20 Code Changes in the Energy Codebull Field Guide to Residential Code bull Field Guide to Energy Code bull Field Guide to Radon bull Field Guide to Foundation Wall Support bull Field Guide to Residential Fire Sprinklers
These guides are a major benefit of membership and available ONLY to members DLI issues the codes but BAM is the organization that develops guides on how to implement the new codes BAM will be providing members with access to each of these seven documents The documents will be available on the BAM website and optimized for both printing and easy viewing on your mobile devices out in the field These guides will form the basis for continuing education courses and BKI will be available to teach classes around the state to help members prepare to build to the new code
If you have industry peers that will benefit from having these guides tell them to join your local builders association and enjoy 3-in-1 membership to access BAMrsquos field guides and other value added benefits such as our home builidng industry specific construction contracts
Thank you to BAM members who are genersouly donating their time to help perfect the members-only guides Thank you to Daniel Buuck Clay Dietrich Jon Coty George Cundy Terry Hammack Chad Kompelien Keith Kylmala Kevin Maleska John McGuine Trace Mills Monte Mraz Kathe Ostrom Mike Paradise Craig Plekkenpol Joe Ranweiler David Werschay and Howie Zetah
We will keep you updated on news from DLI about the new codes timeline BAM will be releasing the field guides starting with the ldquoTop 20rdquo Residential and Energy Codes Field Guides at the end of the summer with the remainder released far in advance of the January 24 2015 code enforcement date
President Chad Kompelein
Builder VPKC Chermak
Associate VPGeorge Cundy
President ElectMike Paradise
TreasurerGerry Traut
SecretaryKurt Welker
Past PresidentKeith Kylmala
NAHB RepresentativeKathe Ostrom
WwwRochesterAreaBuilderscomJuly 2014 | 15
Committee UpdatesEDUCATION COMMITTEECHAIRPERSON VACANT
This committee is currently meeting to plan our education seminars for this winter The first round of CE classes to continue holding your Lead Certification is this year We will be offering these classes later this Fall for members renewing Lead Certification in December and again in the Winter for those renewing in April 2015 Regular CE credit classes will be held in January and February If you have any suggestions for presentations or speakers please call the office and talk to Rebekah
Committee ChairpersonsAMBASSADORSGreg Hird First Alliance Credit UnionAWARDSTBABUILDING MAINTENANCETJ Schutz Advanced Building Center IncBUILDING SAFETY ADVISORYMickey Elias Elias Construction LLCCOMMUNITY RELATIONSTony Kunz Hillerrsquos Flooring AmericaDISPUTE RESOLUTIONJohn Kuntz Kuntz Electric IncEDUCATIONVacantEXECUTIVEKevin Worden Rochester Area Habitat for HumanityFASHION SHOWKaren Blissenbach Design Studio BFINANCECarla Kilpatrick Home Federal Savings BankGOLF OUTINGLindsey Rippentrop Olmsted National BankGOVERNMENT AFFAIRSJohn Eckerman The Boldt CompanyGREEN BUILDINGKelly OrsquoMarro XRG Concepts LLCHOME SHOW ndash 2013Jeff Kalmes Hillers Flooring AmericaMARKETINGRob Easthouse Electrical Solutions amp ServiceMEMBERSHIP amp RETENTIONDan Bochman Kruse LumberNOMINATINGKerk Johnson Schwickertrsquos Tecta America LLC PERSONNELKevin Worden Rochester Area Habitat for HumanityPROGRAMDan Plizga Weis Builders IncPUBLIC WORKS ADVISORYJeff Broberg McGhie amp Betts - a Division of WSB amp Associates IncSHOWCASE OF HOMESBrandon Vagt XRG Concepts LLCSPIKE CLUBJay Burke Heartwood Homes of Rochester IncSPORTING CLAYSJames Coyle Kane amp Johnson Architects Inc
CouncilsBER EXECUTIVE COMMITTEEJJ Webster Kraus-Anderson Construction CompanyCBC EXECUTIVE COMMITTEEChris Terry Knutson Construction ServicesDEVELOPMENT COUNCILJohn Sipple Rochester Area Appraisals LLCREMODELERS EXECUTIVE COMMITTEESam Peyton Kingrsquos Flooring LLCREMODELERS TOURKaren Blissenbach Design Studio B
wwwRochesterAreaBuilderscom16 | July 2014
July Summer OutingWednesday July 16th 6 - 8 PM
Wildwood Sports Bar amp Grill1517 16th Street SW Suite C
Program
Cost is $15 per person Seating will be limited More details will be coming soon
RemodelersRemodelersRemodelers
WwwRochesterAreaBuilderscomJuly 2014 | 17
WErsquoRE HERE TO HELP Natural gas is a great energy
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building needs including natural gas and electric We even off er
rebates for qualifying natural gas appliances Contact us today
and fi nd out how we can help you
Visit xcelenergycomEnergyPartners today
call 1-800-628-2121 or fax 1-800-628-2521
ENERGYVALUEBESTHO
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with the
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xcelenergycomEnergyPartners
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A special offer formembers onlyRegister now and save 2 on your Lowersquos Accounts Receivable
purchases Plus get free delivery on purchases of $500 or moredagger
To register visit LowesForProscomNAHB or call 877-435-2440
Offer is not automatic See store for detailsOffer valid now through 12312014 Cannot be combined with any other statement discount To be eligible for the 2 discount you must register your NAHB membership by 12312014 and make a purchase with your Lowersquos Accounts Receivable by 12312014 Allow one to two complete billing cycles for your registration to be processed and for your discount to appear on your billing statement Offer and discount provided by Lowersquos and not GE Capital Retail Bank Excludes Lowersquos Business Account Card Lowersquos Consumer Credit Card Lowersquos Visa Accounts Lowersquos Business Rewards from American Express Card and all Lowersquos Canada Credit projects Offer not valid on purchases made prior to registering NAHB membership at LowesForProscom Call 877-435-2440 for questions about this program All purchases subject to credit approval daggerStandard delivery rules apply copy2014 Lowersquos LOWErsquoS Gable Mansard Design are registered trademarks of LF LLC
Lowes_2014 NAHB-HALFPAGEindd 1 112613 1222 PM
wwwRochesterAreaBuilderscom18 | July 2014
2014 VALUATION 2013 VALUATION
New Residential Single Family Dwelling 25 5531411 28 7133572
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 19 107504 56 286615
Room Addition 3 278763 2 82000
Porch Additions 0 0 0 0
Other Additions 0 0 2 43200
Basement Finish 29 342255 27 371975
Alterations 50 516115 47 325798
Multi-Family Addition 0 0 1 810
Multi-Family Alterations 2 113000 16 169000 New Commercial Assembly (Church) 0 0 0 0
Assembly (General) 0 0 0 0
Assembly (RestaurantBar) 1 1561000 1 700000
Business 0 0 1 225000
Education 0 0 0 0
FactoryIndustrial 0 0 0 0
Institution 0 0 0 0
Mercantile 0 0 0 0
Miscelaneous 0 0 0 0
Utility (General) 1 130000 1 3850
Residential (CareAssisted Living) 0 0 0 0
Storage (General) 1 45000 0 0
Storage (Warehouse) 0 0 1 532594 Existing CommercialAddition 8 5812413 1 15406
Alterations 34 5984762 36 34644913
Structural Shell 0 0 0 0
ldquoWhite Boxrdquo 1 15000 0 0
Interior Demolition Only 3 48500 3 16706
Other Phased Permits 0 0 0 0
Other ConstructionBusiness Signs 15 106565 6 15224
Advertising Sign 1 18000 0 0
Footings amp Foundations 2 220000 11
Demolition 3 1
Rochester Building Permits April 2014
January 33 39 27 20 3 13 3 6 19 11
February 31 31 19 13 1 8 8 20 15 14
March 59 37 30 29 16 27 24 32 29 28
April 58 58 44 27 29 25 19 29 39 25
May 77 69 50 30 33 20 14 22 27 35
TOTAL 258 234 172 119 82 93 68 109 129 113
June 81 59 43 36 36 12 26 32 33
July 58 36 60 23 21 23 8 39 39
August 69 36 43 28 26 15 18 38 21
September 65 31 33 28 33 10 19 22 23
October 71 49 34 19 31 14 16 23 34
November 40 38 23 26 30 21 20 22 26
December 60 23 11 16 15 12 16 14 22
TOTAL 702 506 417 302 274 200 191 299 326 113
Single Family Homes
Year To Date Statistics 2014 2013 NO VALUATION NO VALUATION
Building Permits Issued to Date 881 147003028 825 100011030
Single Family Dwelling 109 26968957 130 30405563
Multi-Family Buildings Total Units 39 1 3702052 0 0
Trade Permits Issued to Date 2978 30568713 2326 27697853
Electrical 1050 13657783 878 15240984
Electrical (Temp Service) 103 30950 115 29700
Mechanical 731 6606354 685 6221377
Gas Piping 198 417331 185 141995
Fireplace 163 417589 148 344814
Hydronic System 69 3689975 50 1105942
Plumbing 664 5748731 653 4613041
Total Permits YTD 3859 177571741 3151 127708883
Information and downloads available at Rochester Building Safety Departmentrsquos Website httpwwwrochestermngovdepartmentsbldgsafetyreportsbuildingindexasp
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
total may differ as permits may have been voided
WwwRochesterAreaBuilderscomJuly 2014 | 19
Rochester Real EstateMonthly Housing DataMarch 2014
Monthly Housing Data March 2014 March 2013 Change
New Listings 311 320 -28Active Listings Year to Date
1087 1195 -90
Pending Listing 173 212 -184Sold Listings 128 144 -111Sold Listings Year to Date
312 342 -88
Median Sales Price (SOLD)
158000 153150 30
SOLD Days on Market (DOM)
81 100 -1900
Avg Year to Date (DOM)
86 110 -2182
Information and downloads available at South East Minnesota Association of REALTORSrsquo
Website httpsemnrealtorsorggeneralstats_market-trendshtml
Information Provided By
MARCH 2014
New Residential NUMBER VALUATION
Single Family Detached 8 1263500
New Commercial
Commercial 1 142000
Existing Residential
Deck Addition 15 55113
Basement Finish 1 3600
Alterations 2 5800
Accessory Building 1 5000
ByronBuilding Permits
MARCH 2014
New Residential NUMBER VALUATION
Single Family 3 402000
Existing Residential
Deck Addition 3 15000
Alterations 9 49000
Reroof 10 50000
Existing Commercial
Reroof 2 10000
Pine IslandBuilding Permits
wwwRochesterAreaBuilderscom20 | July 2014
Despite GDP growth stalling in Q1 due to the Polar Vortex slower inventory accumulation and mildly lower exports the economic recovery remains intact The anemic performance of the US economy from January through March was aberrant and the incoming employment manufacturing and consumer spending data all point to an economic pickup GDP growth the rest of the year should average 3 with growth in Q2 closer to 325 as the economy rebounds from the harsh winter In addition reduced fiscal drag from DC increased hiring and spending by state and local governments and increased corporate spending on plant and equipment suggest we are finally entering a period of faster growth
That said economically all is not well Wage growth remains anemic and while the unemployment rate is 63 down from 10 the fall is largely due to a decline in the labor force participation rate The ranks of the long-term unemployed remain elevated along with the number of those working part-time because they canrsquot find full time work Add to that average overtime hours that are remarkably high and termination rates that are very low and what you have are employers very reluctant to hire This situation cannot persist and of late job creation numbers have been on the upswing Therefore net job creation will rise from 200000month where it has been for the past year to 220000 or 225000 by year end and unemployment will probably fall to 61 I expect wage growth to start picking up steam in 2015
The biggest drag on the economy is housing After a promising first half of 2013 the housing market is at best flat While rising interest rates and home prices a lack of inventory and lots shortages of materials and labor and a lack of credit and first-
time buyers play a part weak household formation is the main culprit After averaging over 12 million in the years prior to the Great Recession household formations have been averaging 500000 since the end of the recession The good news - household formation will rise now that all eight million jobs lost during the recession have been finally made up We are no longer making up lost ground Because of this new single-family construction activity in 2014 will reach 700000 with multifamily adding 350000 while existing home sales should be down slightly from last year
As for inflation itrsquos benign No matter how measured there is no inflation to speak of in the US Commodity prices will remain well-behaved given weak demand due to economic slowing in China and weak growth in Europe and the developing nations Absent some sort of geopolitical crisis energy prices will remain where they are thanks to record US oil production As a result expect tapering to end in November and for the Federal Reserve to begin raising short-term interest rates by mid-2015 However long-term rates have bottomed and 10-yr Treasuries will end the year at about 3 as the economy steadily strengthens
In short the economy is improving and Q1 was a speed bump Long term rates will rise short-term rates will remain unchanged and housing will limp into 2015 with prices rising slightly Most critically household formation will strengthen and corporate state and local government spending will rise Lastly the likelihood of a recession during the next six months is virtually zero
Economic Forecast for 2nd Half of 2014 Increasing Momentum Reduced Headwinds
Elliot Eisenberg PhD
Elliot Eisenberg PhD is President of GraphsandLaughs LLC and can be reached at Elliotgraphsandlaughsnet His daily 70 word economics
and policy blog can be seen at wwwecon70com
WwwRochesterAreaBuilderscomJuly 2014 | 21
CUSTOM HOMES BY BRADLEY INCRochester MN 55901Phone 507- 358-8681Contact Brad Goeden
Builder MemberResidential Builder
Sponsored byNone Listed
MEMBERSHIPS PENDINGNONE
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 943
As of 53114
WE WELCOME THE FOLLOWING NEW MEMBERS IN MAY
Membership Information
Membership Renewals as of 53114
One Year
Alpha Video amp Audio 2013GulfEagle Supply 2013
Two to Four Years
The Design Connection 2012Hammer Homes Inc 2011Steel Constructors Inc 2011
Five to Nine Years
Kingrsquos Flooring LLC 2009Turtle Creek Construction Inc 2009The Blue Book of Building amp Construction 2007Bruce Bucknell Construction Inc 2006McGough Construction 2006Schoeppner Inc 2006Cravath Homes LLC dba Accessibility Solutions
2005
Prime Time Painting of Rochester LLC 2005Ten to 19 Years
Elcor Realty of Rochester Inc 2004RJ Manemann Custom Homes 2004DMC Plumbing amp Heating Inc 2003Fairway Outdoor Advertising LLC 2003Innovative Surfaces Inc 2002Design Studio B 2001SL Contracting 1998
25 Years amp More
Hentges Glass Company 1991Larson Siding amp Windows 1986Merit Contracting Inc 1982Sargentrsquos Landscape Nursery Inc 1977CO Brown Agency 1970Holt Title Guaranty Company Inc 1958Palmer Soderberg Inc 1958
NEW APPLICANTS
ULTIMATE SURFACES1233 Eastgate Drive SERochester MN 55904Phone 507- 258-5439Contact Tony Heintz
Associate MemberFabricator
Sponsored bySam Peyton Kingrsquos Flooring LLC
wwwRochesterAreaBuilderscom22 | July 2014
Put your membershipto work nowMoney-saving discounts that benefit yourbusiness your employees and your family
wwwnahborgMA
National Association of Home Builders
R
wwwRochesterAreaBuilderscom4 | July 2014
From The Directorrsquos DeskA Hard Fought Battle
As you are now probably aware beginning in 2015 some single family homes built in Minnesota will require fire suppression systems aka fire sprinklers In a nutshell this requirement will be in homes larger than 4500 square feet including basements but excluding garages We fought hard through several legislative sessions to keep fire sprinklers a home ownerrsquos choice but in the end Governor Dayton decided that other special interests outweighed our valid and statistically proven arguments and increased the cost of housing for Minnesotans This will be an issue that we will continue to face as the Commissioner of DOLI has gone on record stating that fire sprinklers should be in ALL new homes Wersquoll keep you posted
There were a lot of people members and non-members who were heavily involved in our efforts but I want to give special recognition to one non-member that really went above and beyond That person is Senator Dave Senjem Over the past year whenever I would see Senator Senjem at community events the first thing he would say to me is ldquoGotta keep those sprinklers a choicerdquo He truly championed our issue at every opportunity and his last attempt was extremely effective (and a brilliant political move according to Remi Stone) at bringing the issue into the overall political discussion Senator Senjem has always been a great advocate for the Building Industry even before fire sprinklers came to the forefront So if you run into Senator Senjem this summer make sure to thank him for working hard for our industry
RAB Executive Director
WwwRochesterAreaBuilderscomJuly 2014 | 5
President Kevin Worden Rochester Area Habitat for HumanityVice President John Eckerman The Boldt Company
Secretary Lindsey Rippentrop Olmsted National Bank
Treasurer Carla Kilpatrick Home Federal Savings Bank
Past President Jean DeWitz DeWitz Home Builders Inc
Directors Karen Blissenbach Design Studio B Christy Buchan Energy Products amp Design Inc
Delbert Feenstra Knutson Construction Services Rob Jones Superior Mechanical Levi Kaiser Alvin E Benike Inc Bruce Laufenburger First General Services of SE MN Sam Peyton Kingrsquos Flooring LLC Brian Shehan Weis Builders Inc
Builders Exchange Council Representatives
JJ Webster Kraus-Anderson Construction Company Chair Jake Schleusner Merit Contracting Inc Vice Chair Tony Wintheiser Hentges Glass Past Chair
Commercial Builders Council Chris Terry Knutson Construction Services Chair Nick Leimer Kraus-Anderson Construction Company Vice Chair
Development Council Chair John Sipple Rochester Area Appraisals LLC
Remodelers Council Chair Sam Peyton Kingrsquos Flooring LLC
National Life Directors Joe Weis Weis Builders Inc
National Directors Steve Buss Cornerstone Builders amp Real Estate Inc Mike Coats MEC Construction Inc David Kane Kane amp Johnson Architects Inc Rep Rory Lenton Minnesota Energy Resources Corp
State Directors Jim Gander Superior Mechanical John McGuine Schoeppner Inc Rep Mike Paradise Bigelow Homes David Pederson Dunlap amp Seeger Dan Severson Dan Severson Builders Inc
Executive Director John Eischen
JEischenRochesterAreaBuilderscom
Staff Audra Bolduan
ABolduanRochesterAreaBuilderscom Marketing Builders Exchange Trustees
Matt Limoges MatthewLRochesterAreaBuilderscom Government Affairs Commercial Builders Council Development Council Building Safety Advisory Group Public Works Advisory Group Community Relations Green Building Marketing
Sharill Mueller SMuellerRochesterAreaBuilderscom Home Show Showcase Committee
Rebekah Nielsen RNielsenRochesterAreaBuilderscom Ambassadors Education Membership
Program Spike Club Remodelers Council -Executive-Home Tour-
Ryan Kling-Punt RPuntRochesterAreaBuilderscom Golf Outing Sporting Clays Directory Newsletter E-News Update
Join us at the JuneSummer Networking Night
Tuesday June 24th at the Valor Mechanical Inc
416 S Broadway(Click Address for Map)
Hours 500 pm - 700 pm
OUR HISTORYValor Mechanical was founded in June 2006 by Ty Bestor The dream vision and the current evolution of Valor was implemented in September 2012 Ty has over 35 years of experience in the mechanical construction industry Ty was born and raised in a small rural community in southeast Minnesota which prompted his desire to own and operate a company with the same moral values integrity and trust found in his small-town community
WHO WE AREValor Mechanical is a full-service commercial mechanical contractor based out of Harmony MN with a second location in Rochester MN Valor operates on these principle core values integrity trust and strong relationships all with a high level of customer service These values were instilled by Ty Bestor
CEO and all who work at Valor share in these values and in Tyrsquos business passion
WHAT WE DOThe experienced team at Valor Mechanical listens to the customersrsquo needs and objectives then creates a customized solution Valor creates cost-efficient solutions by allowing our team to approach every project from an engineering-first perspective Before finalizing mechanical numbers we explore every issue and concern with the project team The main constants among our technicians engineers and trained craftsmen is experience dedication and their commitment to Valorrsquos core values
Hosted By
wwwRochesterAreaBuilderscom6 | July 2014
What Green Building Expomdashan event for the
public
When Saturday September 20 2014
Where Cascade Meadow Wetlands and
Environmental Science Center
Time 9amndash 3pm
Who You If your business has anything to do with making a home more
energy efficient more sustainable sign up for a booth and we will review
Areas we are looking for
Buildings Health and Wellness Site Development Landscaping and Drain-
age
Cost $200mdashfor a measly $200 you get a 6 foot booth and countless mem-
bers of the public to talk to about your business
$50 to present The com-
topics to be presented
Signature Event Sponsors
EXHIBITORS NEEDED
C
M
Y
CM
MY
CY
CMY
K
RFP-pdf 6202014 105738 AM
WwwRochesterAreaBuilderscomJuly 2014 | 7
Business
Contact Name
Nature of Business
Payment Method (Please Circle) Check Credit Card
Credit Card Number Security Code
Yes No
Signature Event Sponsors
faxing it to Rochester Area Builders at 507-282-6351
If you would like to mail in the form please mail it to
Rochester Area Builders
108 Elton Hills Ln NW
Rochester MN 55901
Please note that Rochester Area Builders will
ability of your business to the Green Building
respond to you by August 22 2014 with the
final decision Space is limited so sign up
fast
C
M
Y
CM
MY
CY
CMY
K
RFP - Registration-pdf 6202014 105556 AM
wwwRochesterAreaBuilderscom8 | July 2014
RAB Golf OutingAssociation Scrapbook
WwwRochesterAreaBuilderscomJuly 2014 | 9
Association ScrapbookRAB Golf Outing
wwwRochesterAreaBuilderscom10 | July 2014
CBC Social EventAssociation Scrapbook
WwwRochesterAreaBuilderscomJuly 2014 | 11
Association ScrapbookCBC Social Event
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BCDEFGHIJ A
0-1 = 81 5 BEVERAGE SPONSOR N
0-1 = 81 4 EVENT SPONSORS N
0-1 = 81 2 DETAILS N
0-1 = 81 3 RSVP N
0-1 = 81 1 EVENT N
Donrsquot forget to RSVPIf you attend amp did not RSVP we may not have enough food so let us know
Deadline to RSVP is Monday April 14th at 1200 Noon
Phone 507-282-7698 Fax 507-282-6351
Email RABRochesterAreaBuilderscom
3rsquo - 9rdquo
1rsquo -
10rdquo
CBC Social EventWildwood Sports Bar amp Grill
1517 16th St SW Rochester MN 55902Wednesday May 16th 430 ndash 700 PM
Join us at Wildwood Sports Bar amp Grill for our 2nd Annual Commercial Builders Council Social Event Socialize and network with your fellow Members in a relaxed environment Enjoy a free Cajun buffet
and beer thanks to our great sponsors
wwwRochesterAreaBuilderscom12 | July 2014
RAB Golf Outing Review
Gazebo SPONSORCommercial Builders Council
PUTTING CONTEST SPONSORMinnesota Energy Resources
CLOSEST TO THE FLAGThe Builders Group
BREAK THE GLASSMarvin Windows amp Doors
CIGAR CART SPONSORTradesmen International Inc
DRINK CART SPONSORSCarpet OneKnutson Construction Services
TEE amp GREEN SPONSORSABC Supply Company IncBraun Intertec CorporationCO Brown AgencyCambriaCharter BusinessClements Chevrolet Cadillac SubaruData-Smart Computers IncDunlap amp SeegerEnergy Products amp DesignGerhardrsquosHome Federal Savings BankKreofsky Building SuppliesKruse LumberMBT BankMcGhie amp Betts A Div of WSBMcGladreyMerchants BankMinnwest BankOlmsted National BankPost-Bulletin Company LLCProBuild Company LLCPine Island LumberPompeii Painting IncPremier Bank RochesterRochester Title amp Escrow CoSmith Schafer amp AssociatesSomerby Golf CommunityWarnerrsquos Stellian ApplianceWendland UtzWerner Electric SupplyWomen Communications LLCYaggy Colby Associates
APPETIZER SPONSORSCrescent Electric Supply CompanyCRW architecture + design groupOhly Law OfficeViking Electric Supply
CART SPONSORSThe Blue Book of Building amp
ConstructionBrock White CompanyCRW architecture + design groupCustom AlarmCustom
Communications IncEastwood BankFirst Security BankPrimeLendingThompsonrsquos Garage Door and
Openers
Thank You to our wonderful SponsorsGold Tee Sponsor
WwwRochesterAreaBuilderscomJuly 2014 | 13
For this monthrsquos ldquoHey Matt Whatrsquos Up With Thatrdquo we are talking about Subcontractor Registration and sump pumps
ldquoHey Matt whatrsquos up with Subcontractor Registrationrdquo
This legislative session a pilot program by the Department of Labor and Industry (DLI) was codified into law making it binding upon all contractors in Minnesota The program aims to crack down on subcontractors not registering with DLI and claiming independent contractor status to get around some workers compensation laws
The program works like this if a subcontractor is not registered with DLI and does not fulfill the 9 factor test for being an independent contractor DLI fines the general contractor We fought this law during the legislative session and thankfully we received a one-time hall pass That means that the first time that a general contractor hires a subcontractor that is not registered with DLI they will not be fined This is something we fought for when we saw the writing on the wall that this would become law
Going forward subcontractors make sure you are registered with DLI It may affect your ability to work for certain GCs And GCs the onus is on YOU to make sure the subs you hire are registered You can check with DLI on their website using a nifty little search tool RAB will be running our membership list through DLIrsquos registered contractors list and we will be contacting those who arenrsquot registered to give them a friendly reminder
ldquoHey Matt I hear a lot of people talking about Sump Pumps all of a sudden Whatrsquos up with thatrdquo
What a wet spring so far With so much water falling from the sky and soaking the ground its no surprise that sump pumps have become a topic of discussion Recently RAB was reminded by the building safety department of Rochester that if you have a sump basket in a house there must be a discharge line installed and a pump placed in the basket This is a part of the Minnesota state building code The building safety department explained that they are running into a lot of homes with baskets installed that have no discharge line or pump in the basket
We have also heard concerns from some builders that they can put a pump in the sump basket but if it doesnrsquot run for over 6 months it will seize up and not work when needed Homeowners make sure to follow the manufacturerrsquos instructions for maintenance on these sump pumps The most common maintenance step for these pumps is to ocasionally pour water into the sump basket during the winter and let the pump run This is an important step to make sure your basement doesnrsquot become a wading pool
Thanks to the members who sent me these questions for this monthrsquos edition of ldquoHey Whatrsquos up with Thatrdquo As always if you have a question about anything you find interesting or confusing during your work day give me a call or send an email and hopefully I can find out the answer for you
Matt
Oh and one more thing
ldquoHey Matt did you put a ring on itrdquo
Yes itrsquos true Matt proposed to and more importantly was accepted by his now fiance Loryn Meloy Congratualtions to the happy couple
wwwRochesterAreaBuilderscom14 | July 2014
What Wersquore Doing For YouCWGQ Insurance
TBG Insurance
Gov Relations
Legal Action
Education
Online Forums
Action Center
Energy Payback
Visit wwwbamnorg and log-in to the Members Only site for more information on these BAM initiatives
BUILDERSASSOCIATION OF MINNESOTA
T 6516467959T 8006547783W wwwbamnorg
Executive Committee
BAM Update June 2014
The Minnesota Department of Labor and Industry (DLI) has stated they plan to start enforcing the new Minnesota Building Code in January of 2015 They have not yet released the final version of the code so we donrsquot know exactly what will be included However based on what is known the Builders Association of Minnesota (BAM) is working to provide members with code guides with a planned release date near the end of August 2014
BAM has contracted with Ed VonThoma of Building Knowledge Inc and has assembled a group of statewide members to create and vet the following code guide documentsbull Top 20 Code Changes in the Residential Building Codebull Top 20 Code Changes in the Energy Codebull Field Guide to Residential Code bull Field Guide to Energy Code bull Field Guide to Radon bull Field Guide to Foundation Wall Support bull Field Guide to Residential Fire Sprinklers
These guides are a major benefit of membership and available ONLY to members DLI issues the codes but BAM is the organization that develops guides on how to implement the new codes BAM will be providing members with access to each of these seven documents The documents will be available on the BAM website and optimized for both printing and easy viewing on your mobile devices out in the field These guides will form the basis for continuing education courses and BKI will be available to teach classes around the state to help members prepare to build to the new code
If you have industry peers that will benefit from having these guides tell them to join your local builders association and enjoy 3-in-1 membership to access BAMrsquos field guides and other value added benefits such as our home builidng industry specific construction contracts
Thank you to BAM members who are genersouly donating their time to help perfect the members-only guides Thank you to Daniel Buuck Clay Dietrich Jon Coty George Cundy Terry Hammack Chad Kompelien Keith Kylmala Kevin Maleska John McGuine Trace Mills Monte Mraz Kathe Ostrom Mike Paradise Craig Plekkenpol Joe Ranweiler David Werschay and Howie Zetah
We will keep you updated on news from DLI about the new codes timeline BAM will be releasing the field guides starting with the ldquoTop 20rdquo Residential and Energy Codes Field Guides at the end of the summer with the remainder released far in advance of the January 24 2015 code enforcement date
President Chad Kompelein
Builder VPKC Chermak
Associate VPGeorge Cundy
President ElectMike Paradise
TreasurerGerry Traut
SecretaryKurt Welker
Past PresidentKeith Kylmala
NAHB RepresentativeKathe Ostrom
WwwRochesterAreaBuilderscomJuly 2014 | 15
Committee UpdatesEDUCATION COMMITTEECHAIRPERSON VACANT
This committee is currently meeting to plan our education seminars for this winter The first round of CE classes to continue holding your Lead Certification is this year We will be offering these classes later this Fall for members renewing Lead Certification in December and again in the Winter for those renewing in April 2015 Regular CE credit classes will be held in January and February If you have any suggestions for presentations or speakers please call the office and talk to Rebekah
Committee ChairpersonsAMBASSADORSGreg Hird First Alliance Credit UnionAWARDSTBABUILDING MAINTENANCETJ Schutz Advanced Building Center IncBUILDING SAFETY ADVISORYMickey Elias Elias Construction LLCCOMMUNITY RELATIONSTony Kunz Hillerrsquos Flooring AmericaDISPUTE RESOLUTIONJohn Kuntz Kuntz Electric IncEDUCATIONVacantEXECUTIVEKevin Worden Rochester Area Habitat for HumanityFASHION SHOWKaren Blissenbach Design Studio BFINANCECarla Kilpatrick Home Federal Savings BankGOLF OUTINGLindsey Rippentrop Olmsted National BankGOVERNMENT AFFAIRSJohn Eckerman The Boldt CompanyGREEN BUILDINGKelly OrsquoMarro XRG Concepts LLCHOME SHOW ndash 2013Jeff Kalmes Hillers Flooring AmericaMARKETINGRob Easthouse Electrical Solutions amp ServiceMEMBERSHIP amp RETENTIONDan Bochman Kruse LumberNOMINATINGKerk Johnson Schwickertrsquos Tecta America LLC PERSONNELKevin Worden Rochester Area Habitat for HumanityPROGRAMDan Plizga Weis Builders IncPUBLIC WORKS ADVISORYJeff Broberg McGhie amp Betts - a Division of WSB amp Associates IncSHOWCASE OF HOMESBrandon Vagt XRG Concepts LLCSPIKE CLUBJay Burke Heartwood Homes of Rochester IncSPORTING CLAYSJames Coyle Kane amp Johnson Architects Inc
CouncilsBER EXECUTIVE COMMITTEEJJ Webster Kraus-Anderson Construction CompanyCBC EXECUTIVE COMMITTEEChris Terry Knutson Construction ServicesDEVELOPMENT COUNCILJohn Sipple Rochester Area Appraisals LLCREMODELERS EXECUTIVE COMMITTEESam Peyton Kingrsquos Flooring LLCREMODELERS TOURKaren Blissenbach Design Studio B
wwwRochesterAreaBuilderscom16 | July 2014
July Summer OutingWednesday July 16th 6 - 8 PM
Wildwood Sports Bar amp Grill1517 16th Street SW Suite C
Program
Cost is $15 per person Seating will be limited More details will be coming soon
RemodelersRemodelersRemodelers
WwwRochesterAreaBuilderscomJuly 2014 | 17
WErsquoRE HERE TO HELP Natural gas is a great energy
value Xcel Energy can help you with all of your energy-related
building needs including natural gas and electric We even off er
rebates for qualifying natural gas appliances Contact us today
and fi nd out how we can help you
Visit xcelenergycomEnergyPartners today
call 1-800-628-2121 or fax 1-800-628-2521
ENERGYVALUEBESTHO
OK UP
with the
copy 2013 Xcel Energy Inc
xcelenergycomEnergyPartners
13-XCL-00255-B_MNB_HookUp(Combo)_73125x475_4c_LOindd 1 5613 321 PM
A special offer formembers onlyRegister now and save 2 on your Lowersquos Accounts Receivable
purchases Plus get free delivery on purchases of $500 or moredagger
To register visit LowesForProscomNAHB or call 877-435-2440
Offer is not automatic See store for detailsOffer valid now through 12312014 Cannot be combined with any other statement discount To be eligible for the 2 discount you must register your NAHB membership by 12312014 and make a purchase with your Lowersquos Accounts Receivable by 12312014 Allow one to two complete billing cycles for your registration to be processed and for your discount to appear on your billing statement Offer and discount provided by Lowersquos and not GE Capital Retail Bank Excludes Lowersquos Business Account Card Lowersquos Consumer Credit Card Lowersquos Visa Accounts Lowersquos Business Rewards from American Express Card and all Lowersquos Canada Credit projects Offer not valid on purchases made prior to registering NAHB membership at LowesForProscom Call 877-435-2440 for questions about this program All purchases subject to credit approval daggerStandard delivery rules apply copy2014 Lowersquos LOWErsquoS Gable Mansard Design are registered trademarks of LF LLC
Lowes_2014 NAHB-HALFPAGEindd 1 112613 1222 PM
wwwRochesterAreaBuilderscom18 | July 2014
2014 VALUATION 2013 VALUATION
New Residential Single Family Dwelling 25 5531411 28 7133572
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 19 107504 56 286615
Room Addition 3 278763 2 82000
Porch Additions 0 0 0 0
Other Additions 0 0 2 43200
Basement Finish 29 342255 27 371975
Alterations 50 516115 47 325798
Multi-Family Addition 0 0 1 810
Multi-Family Alterations 2 113000 16 169000 New Commercial Assembly (Church) 0 0 0 0
Assembly (General) 0 0 0 0
Assembly (RestaurantBar) 1 1561000 1 700000
Business 0 0 1 225000
Education 0 0 0 0
FactoryIndustrial 0 0 0 0
Institution 0 0 0 0
Mercantile 0 0 0 0
Miscelaneous 0 0 0 0
Utility (General) 1 130000 1 3850
Residential (CareAssisted Living) 0 0 0 0
Storage (General) 1 45000 0 0
Storage (Warehouse) 0 0 1 532594 Existing CommercialAddition 8 5812413 1 15406
Alterations 34 5984762 36 34644913
Structural Shell 0 0 0 0
ldquoWhite Boxrdquo 1 15000 0 0
Interior Demolition Only 3 48500 3 16706
Other Phased Permits 0 0 0 0
Other ConstructionBusiness Signs 15 106565 6 15224
Advertising Sign 1 18000 0 0
Footings amp Foundations 2 220000 11
Demolition 3 1
Rochester Building Permits April 2014
January 33 39 27 20 3 13 3 6 19 11
February 31 31 19 13 1 8 8 20 15 14
March 59 37 30 29 16 27 24 32 29 28
April 58 58 44 27 29 25 19 29 39 25
May 77 69 50 30 33 20 14 22 27 35
TOTAL 258 234 172 119 82 93 68 109 129 113
June 81 59 43 36 36 12 26 32 33
July 58 36 60 23 21 23 8 39 39
August 69 36 43 28 26 15 18 38 21
September 65 31 33 28 33 10 19 22 23
October 71 49 34 19 31 14 16 23 34
November 40 38 23 26 30 21 20 22 26
December 60 23 11 16 15 12 16 14 22
TOTAL 702 506 417 302 274 200 191 299 326 113
Single Family Homes
Year To Date Statistics 2014 2013 NO VALUATION NO VALUATION
Building Permits Issued to Date 881 147003028 825 100011030
Single Family Dwelling 109 26968957 130 30405563
Multi-Family Buildings Total Units 39 1 3702052 0 0
Trade Permits Issued to Date 2978 30568713 2326 27697853
Electrical 1050 13657783 878 15240984
Electrical (Temp Service) 103 30950 115 29700
Mechanical 731 6606354 685 6221377
Gas Piping 198 417331 185 141995
Fireplace 163 417589 148 344814
Hydronic System 69 3689975 50 1105942
Plumbing 664 5748731 653 4613041
Total Permits YTD 3859 177571741 3151 127708883
Information and downloads available at Rochester Building Safety Departmentrsquos Website httpwwwrochestermngovdepartmentsbldgsafetyreportsbuildingindexasp
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
total may differ as permits may have been voided
WwwRochesterAreaBuilderscomJuly 2014 | 19
Rochester Real EstateMonthly Housing DataMarch 2014
Monthly Housing Data March 2014 March 2013 Change
New Listings 311 320 -28Active Listings Year to Date
1087 1195 -90
Pending Listing 173 212 -184Sold Listings 128 144 -111Sold Listings Year to Date
312 342 -88
Median Sales Price (SOLD)
158000 153150 30
SOLD Days on Market (DOM)
81 100 -1900
Avg Year to Date (DOM)
86 110 -2182
Information and downloads available at South East Minnesota Association of REALTORSrsquo
Website httpsemnrealtorsorggeneralstats_market-trendshtml
Information Provided By
MARCH 2014
New Residential NUMBER VALUATION
Single Family Detached 8 1263500
New Commercial
Commercial 1 142000
Existing Residential
Deck Addition 15 55113
Basement Finish 1 3600
Alterations 2 5800
Accessory Building 1 5000
ByronBuilding Permits
MARCH 2014
New Residential NUMBER VALUATION
Single Family 3 402000
Existing Residential
Deck Addition 3 15000
Alterations 9 49000
Reroof 10 50000
Existing Commercial
Reroof 2 10000
Pine IslandBuilding Permits
wwwRochesterAreaBuilderscom20 | July 2014
Despite GDP growth stalling in Q1 due to the Polar Vortex slower inventory accumulation and mildly lower exports the economic recovery remains intact The anemic performance of the US economy from January through March was aberrant and the incoming employment manufacturing and consumer spending data all point to an economic pickup GDP growth the rest of the year should average 3 with growth in Q2 closer to 325 as the economy rebounds from the harsh winter In addition reduced fiscal drag from DC increased hiring and spending by state and local governments and increased corporate spending on plant and equipment suggest we are finally entering a period of faster growth
That said economically all is not well Wage growth remains anemic and while the unemployment rate is 63 down from 10 the fall is largely due to a decline in the labor force participation rate The ranks of the long-term unemployed remain elevated along with the number of those working part-time because they canrsquot find full time work Add to that average overtime hours that are remarkably high and termination rates that are very low and what you have are employers very reluctant to hire This situation cannot persist and of late job creation numbers have been on the upswing Therefore net job creation will rise from 200000month where it has been for the past year to 220000 or 225000 by year end and unemployment will probably fall to 61 I expect wage growth to start picking up steam in 2015
The biggest drag on the economy is housing After a promising first half of 2013 the housing market is at best flat While rising interest rates and home prices a lack of inventory and lots shortages of materials and labor and a lack of credit and first-
time buyers play a part weak household formation is the main culprit After averaging over 12 million in the years prior to the Great Recession household formations have been averaging 500000 since the end of the recession The good news - household formation will rise now that all eight million jobs lost during the recession have been finally made up We are no longer making up lost ground Because of this new single-family construction activity in 2014 will reach 700000 with multifamily adding 350000 while existing home sales should be down slightly from last year
As for inflation itrsquos benign No matter how measured there is no inflation to speak of in the US Commodity prices will remain well-behaved given weak demand due to economic slowing in China and weak growth in Europe and the developing nations Absent some sort of geopolitical crisis energy prices will remain where they are thanks to record US oil production As a result expect tapering to end in November and for the Federal Reserve to begin raising short-term interest rates by mid-2015 However long-term rates have bottomed and 10-yr Treasuries will end the year at about 3 as the economy steadily strengthens
In short the economy is improving and Q1 was a speed bump Long term rates will rise short-term rates will remain unchanged and housing will limp into 2015 with prices rising slightly Most critically household formation will strengthen and corporate state and local government spending will rise Lastly the likelihood of a recession during the next six months is virtually zero
Economic Forecast for 2nd Half of 2014 Increasing Momentum Reduced Headwinds
Elliot Eisenberg PhD
Elliot Eisenberg PhD is President of GraphsandLaughs LLC and can be reached at Elliotgraphsandlaughsnet His daily 70 word economics
and policy blog can be seen at wwwecon70com
WwwRochesterAreaBuilderscomJuly 2014 | 21
CUSTOM HOMES BY BRADLEY INCRochester MN 55901Phone 507- 358-8681Contact Brad Goeden
Builder MemberResidential Builder
Sponsored byNone Listed
MEMBERSHIPS PENDINGNONE
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 943
As of 53114
WE WELCOME THE FOLLOWING NEW MEMBERS IN MAY
Membership Information
Membership Renewals as of 53114
One Year
Alpha Video amp Audio 2013GulfEagle Supply 2013
Two to Four Years
The Design Connection 2012Hammer Homes Inc 2011Steel Constructors Inc 2011
Five to Nine Years
Kingrsquos Flooring LLC 2009Turtle Creek Construction Inc 2009The Blue Book of Building amp Construction 2007Bruce Bucknell Construction Inc 2006McGough Construction 2006Schoeppner Inc 2006Cravath Homes LLC dba Accessibility Solutions
2005
Prime Time Painting of Rochester LLC 2005Ten to 19 Years
Elcor Realty of Rochester Inc 2004RJ Manemann Custom Homes 2004DMC Plumbing amp Heating Inc 2003Fairway Outdoor Advertising LLC 2003Innovative Surfaces Inc 2002Design Studio B 2001SL Contracting 1998
25 Years amp More
Hentges Glass Company 1991Larson Siding amp Windows 1986Merit Contracting Inc 1982Sargentrsquos Landscape Nursery Inc 1977CO Brown Agency 1970Holt Title Guaranty Company Inc 1958Palmer Soderberg Inc 1958
NEW APPLICANTS
ULTIMATE SURFACES1233 Eastgate Drive SERochester MN 55904Phone 507- 258-5439Contact Tony Heintz
Associate MemberFabricator
Sponsored bySam Peyton Kingrsquos Flooring LLC
wwwRochesterAreaBuilderscom22 | July 2014
Put your membershipto work nowMoney-saving discounts that benefit yourbusiness your employees and your family
wwwnahborgMA
National Association of Home Builders
R
WwwRochesterAreaBuilderscomJuly 2014 | 5
President Kevin Worden Rochester Area Habitat for HumanityVice President John Eckerman The Boldt Company
Secretary Lindsey Rippentrop Olmsted National Bank
Treasurer Carla Kilpatrick Home Federal Savings Bank
Past President Jean DeWitz DeWitz Home Builders Inc
Directors Karen Blissenbach Design Studio B Christy Buchan Energy Products amp Design Inc
Delbert Feenstra Knutson Construction Services Rob Jones Superior Mechanical Levi Kaiser Alvin E Benike Inc Bruce Laufenburger First General Services of SE MN Sam Peyton Kingrsquos Flooring LLC Brian Shehan Weis Builders Inc
Builders Exchange Council Representatives
JJ Webster Kraus-Anderson Construction Company Chair Jake Schleusner Merit Contracting Inc Vice Chair Tony Wintheiser Hentges Glass Past Chair
Commercial Builders Council Chris Terry Knutson Construction Services Chair Nick Leimer Kraus-Anderson Construction Company Vice Chair
Development Council Chair John Sipple Rochester Area Appraisals LLC
Remodelers Council Chair Sam Peyton Kingrsquos Flooring LLC
National Life Directors Joe Weis Weis Builders Inc
National Directors Steve Buss Cornerstone Builders amp Real Estate Inc Mike Coats MEC Construction Inc David Kane Kane amp Johnson Architects Inc Rep Rory Lenton Minnesota Energy Resources Corp
State Directors Jim Gander Superior Mechanical John McGuine Schoeppner Inc Rep Mike Paradise Bigelow Homes David Pederson Dunlap amp Seeger Dan Severson Dan Severson Builders Inc
Executive Director John Eischen
JEischenRochesterAreaBuilderscom
Staff Audra Bolduan
ABolduanRochesterAreaBuilderscom Marketing Builders Exchange Trustees
Matt Limoges MatthewLRochesterAreaBuilderscom Government Affairs Commercial Builders Council Development Council Building Safety Advisory Group Public Works Advisory Group Community Relations Green Building Marketing
Sharill Mueller SMuellerRochesterAreaBuilderscom Home Show Showcase Committee
Rebekah Nielsen RNielsenRochesterAreaBuilderscom Ambassadors Education Membership
Program Spike Club Remodelers Council -Executive-Home Tour-
Ryan Kling-Punt RPuntRochesterAreaBuilderscom Golf Outing Sporting Clays Directory Newsletter E-News Update
Join us at the JuneSummer Networking Night
Tuesday June 24th at the Valor Mechanical Inc
416 S Broadway(Click Address for Map)
Hours 500 pm - 700 pm
OUR HISTORYValor Mechanical was founded in June 2006 by Ty Bestor The dream vision and the current evolution of Valor was implemented in September 2012 Ty has over 35 years of experience in the mechanical construction industry Ty was born and raised in a small rural community in southeast Minnesota which prompted his desire to own and operate a company with the same moral values integrity and trust found in his small-town community
WHO WE AREValor Mechanical is a full-service commercial mechanical contractor based out of Harmony MN with a second location in Rochester MN Valor operates on these principle core values integrity trust and strong relationships all with a high level of customer service These values were instilled by Ty Bestor
CEO and all who work at Valor share in these values and in Tyrsquos business passion
WHAT WE DOThe experienced team at Valor Mechanical listens to the customersrsquo needs and objectives then creates a customized solution Valor creates cost-efficient solutions by allowing our team to approach every project from an engineering-first perspective Before finalizing mechanical numbers we explore every issue and concern with the project team The main constants among our technicians engineers and trained craftsmen is experience dedication and their commitment to Valorrsquos core values
Hosted By
wwwRochesterAreaBuilderscom6 | July 2014
What Green Building Expomdashan event for the
public
When Saturday September 20 2014
Where Cascade Meadow Wetlands and
Environmental Science Center
Time 9amndash 3pm
Who You If your business has anything to do with making a home more
energy efficient more sustainable sign up for a booth and we will review
Areas we are looking for
Buildings Health and Wellness Site Development Landscaping and Drain-
age
Cost $200mdashfor a measly $200 you get a 6 foot booth and countless mem-
bers of the public to talk to about your business
$50 to present The com-
topics to be presented
Signature Event Sponsors
EXHIBITORS NEEDED
C
M
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CM
MY
CY
CMY
K
RFP-pdf 6202014 105738 AM
WwwRochesterAreaBuilderscomJuly 2014 | 7
Business
Contact Name
Nature of Business
Payment Method (Please Circle) Check Credit Card
Credit Card Number Security Code
Yes No
Signature Event Sponsors
faxing it to Rochester Area Builders at 507-282-6351
If you would like to mail in the form please mail it to
Rochester Area Builders
108 Elton Hills Ln NW
Rochester MN 55901
Please note that Rochester Area Builders will
ability of your business to the Green Building
respond to you by August 22 2014 with the
final decision Space is limited so sign up
fast
C
M
Y
CM
MY
CY
CMY
K
RFP - Registration-pdf 6202014 105556 AM
wwwRochesterAreaBuilderscom8 | July 2014
RAB Golf OutingAssociation Scrapbook
WwwRochesterAreaBuilderscomJuly 2014 | 9
Association ScrapbookRAB Golf Outing
wwwRochesterAreaBuilderscom10 | July 2014
CBC Social EventAssociation Scrapbook
WwwRochesterAreaBuilderscomJuly 2014 | 11
Association ScrapbookCBC Social Event
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0-1 = 81 5 BEVERAGE SPONSOR N
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0-1 = 81 3 RSVP N
0-1 = 81 1 EVENT N
Donrsquot forget to RSVPIf you attend amp did not RSVP we may not have enough food so let us know
Deadline to RSVP is Monday April 14th at 1200 Noon
Phone 507-282-7698 Fax 507-282-6351
Email RABRochesterAreaBuilderscom
3rsquo - 9rdquo
1rsquo -
10rdquo
CBC Social EventWildwood Sports Bar amp Grill
1517 16th St SW Rochester MN 55902Wednesday May 16th 430 ndash 700 PM
Join us at Wildwood Sports Bar amp Grill for our 2nd Annual Commercial Builders Council Social Event Socialize and network with your fellow Members in a relaxed environment Enjoy a free Cajun buffet
and beer thanks to our great sponsors
wwwRochesterAreaBuilderscom12 | July 2014
RAB Golf Outing Review
Gazebo SPONSORCommercial Builders Council
PUTTING CONTEST SPONSORMinnesota Energy Resources
CLOSEST TO THE FLAGThe Builders Group
BREAK THE GLASSMarvin Windows amp Doors
CIGAR CART SPONSORTradesmen International Inc
DRINK CART SPONSORSCarpet OneKnutson Construction Services
TEE amp GREEN SPONSORSABC Supply Company IncBraun Intertec CorporationCO Brown AgencyCambriaCharter BusinessClements Chevrolet Cadillac SubaruData-Smart Computers IncDunlap amp SeegerEnergy Products amp DesignGerhardrsquosHome Federal Savings BankKreofsky Building SuppliesKruse LumberMBT BankMcGhie amp Betts A Div of WSBMcGladreyMerchants BankMinnwest BankOlmsted National BankPost-Bulletin Company LLCProBuild Company LLCPine Island LumberPompeii Painting IncPremier Bank RochesterRochester Title amp Escrow CoSmith Schafer amp AssociatesSomerby Golf CommunityWarnerrsquos Stellian ApplianceWendland UtzWerner Electric SupplyWomen Communications LLCYaggy Colby Associates
APPETIZER SPONSORSCrescent Electric Supply CompanyCRW architecture + design groupOhly Law OfficeViking Electric Supply
CART SPONSORSThe Blue Book of Building amp
ConstructionBrock White CompanyCRW architecture + design groupCustom AlarmCustom
Communications IncEastwood BankFirst Security BankPrimeLendingThompsonrsquos Garage Door and
Openers
Thank You to our wonderful SponsorsGold Tee Sponsor
WwwRochesterAreaBuilderscomJuly 2014 | 13
For this monthrsquos ldquoHey Matt Whatrsquos Up With Thatrdquo we are talking about Subcontractor Registration and sump pumps
ldquoHey Matt whatrsquos up with Subcontractor Registrationrdquo
This legislative session a pilot program by the Department of Labor and Industry (DLI) was codified into law making it binding upon all contractors in Minnesota The program aims to crack down on subcontractors not registering with DLI and claiming independent contractor status to get around some workers compensation laws
The program works like this if a subcontractor is not registered with DLI and does not fulfill the 9 factor test for being an independent contractor DLI fines the general contractor We fought this law during the legislative session and thankfully we received a one-time hall pass That means that the first time that a general contractor hires a subcontractor that is not registered with DLI they will not be fined This is something we fought for when we saw the writing on the wall that this would become law
Going forward subcontractors make sure you are registered with DLI It may affect your ability to work for certain GCs And GCs the onus is on YOU to make sure the subs you hire are registered You can check with DLI on their website using a nifty little search tool RAB will be running our membership list through DLIrsquos registered contractors list and we will be contacting those who arenrsquot registered to give them a friendly reminder
ldquoHey Matt I hear a lot of people talking about Sump Pumps all of a sudden Whatrsquos up with thatrdquo
What a wet spring so far With so much water falling from the sky and soaking the ground its no surprise that sump pumps have become a topic of discussion Recently RAB was reminded by the building safety department of Rochester that if you have a sump basket in a house there must be a discharge line installed and a pump placed in the basket This is a part of the Minnesota state building code The building safety department explained that they are running into a lot of homes with baskets installed that have no discharge line or pump in the basket
We have also heard concerns from some builders that they can put a pump in the sump basket but if it doesnrsquot run for over 6 months it will seize up and not work when needed Homeowners make sure to follow the manufacturerrsquos instructions for maintenance on these sump pumps The most common maintenance step for these pumps is to ocasionally pour water into the sump basket during the winter and let the pump run This is an important step to make sure your basement doesnrsquot become a wading pool
Thanks to the members who sent me these questions for this monthrsquos edition of ldquoHey Whatrsquos up with Thatrdquo As always if you have a question about anything you find interesting or confusing during your work day give me a call or send an email and hopefully I can find out the answer for you
Matt
Oh and one more thing
ldquoHey Matt did you put a ring on itrdquo
Yes itrsquos true Matt proposed to and more importantly was accepted by his now fiance Loryn Meloy Congratualtions to the happy couple
wwwRochesterAreaBuilderscom14 | July 2014
What Wersquore Doing For YouCWGQ Insurance
TBG Insurance
Gov Relations
Legal Action
Education
Online Forums
Action Center
Energy Payback
Visit wwwbamnorg and log-in to the Members Only site for more information on these BAM initiatives
BUILDERSASSOCIATION OF MINNESOTA
T 6516467959T 8006547783W wwwbamnorg
Executive Committee
BAM Update June 2014
The Minnesota Department of Labor and Industry (DLI) has stated they plan to start enforcing the new Minnesota Building Code in January of 2015 They have not yet released the final version of the code so we donrsquot know exactly what will be included However based on what is known the Builders Association of Minnesota (BAM) is working to provide members with code guides with a planned release date near the end of August 2014
BAM has contracted with Ed VonThoma of Building Knowledge Inc and has assembled a group of statewide members to create and vet the following code guide documentsbull Top 20 Code Changes in the Residential Building Codebull Top 20 Code Changes in the Energy Codebull Field Guide to Residential Code bull Field Guide to Energy Code bull Field Guide to Radon bull Field Guide to Foundation Wall Support bull Field Guide to Residential Fire Sprinklers
These guides are a major benefit of membership and available ONLY to members DLI issues the codes but BAM is the organization that develops guides on how to implement the new codes BAM will be providing members with access to each of these seven documents The documents will be available on the BAM website and optimized for both printing and easy viewing on your mobile devices out in the field These guides will form the basis for continuing education courses and BKI will be available to teach classes around the state to help members prepare to build to the new code
If you have industry peers that will benefit from having these guides tell them to join your local builders association and enjoy 3-in-1 membership to access BAMrsquos field guides and other value added benefits such as our home builidng industry specific construction contracts
Thank you to BAM members who are genersouly donating their time to help perfect the members-only guides Thank you to Daniel Buuck Clay Dietrich Jon Coty George Cundy Terry Hammack Chad Kompelien Keith Kylmala Kevin Maleska John McGuine Trace Mills Monte Mraz Kathe Ostrom Mike Paradise Craig Plekkenpol Joe Ranweiler David Werschay and Howie Zetah
We will keep you updated on news from DLI about the new codes timeline BAM will be releasing the field guides starting with the ldquoTop 20rdquo Residential and Energy Codes Field Guides at the end of the summer with the remainder released far in advance of the January 24 2015 code enforcement date
President Chad Kompelein
Builder VPKC Chermak
Associate VPGeorge Cundy
President ElectMike Paradise
TreasurerGerry Traut
SecretaryKurt Welker
Past PresidentKeith Kylmala
NAHB RepresentativeKathe Ostrom
WwwRochesterAreaBuilderscomJuly 2014 | 15
Committee UpdatesEDUCATION COMMITTEECHAIRPERSON VACANT
This committee is currently meeting to plan our education seminars for this winter The first round of CE classes to continue holding your Lead Certification is this year We will be offering these classes later this Fall for members renewing Lead Certification in December and again in the Winter for those renewing in April 2015 Regular CE credit classes will be held in January and February If you have any suggestions for presentations or speakers please call the office and talk to Rebekah
Committee ChairpersonsAMBASSADORSGreg Hird First Alliance Credit UnionAWARDSTBABUILDING MAINTENANCETJ Schutz Advanced Building Center IncBUILDING SAFETY ADVISORYMickey Elias Elias Construction LLCCOMMUNITY RELATIONSTony Kunz Hillerrsquos Flooring AmericaDISPUTE RESOLUTIONJohn Kuntz Kuntz Electric IncEDUCATIONVacantEXECUTIVEKevin Worden Rochester Area Habitat for HumanityFASHION SHOWKaren Blissenbach Design Studio BFINANCECarla Kilpatrick Home Federal Savings BankGOLF OUTINGLindsey Rippentrop Olmsted National BankGOVERNMENT AFFAIRSJohn Eckerman The Boldt CompanyGREEN BUILDINGKelly OrsquoMarro XRG Concepts LLCHOME SHOW ndash 2013Jeff Kalmes Hillers Flooring AmericaMARKETINGRob Easthouse Electrical Solutions amp ServiceMEMBERSHIP amp RETENTIONDan Bochman Kruse LumberNOMINATINGKerk Johnson Schwickertrsquos Tecta America LLC PERSONNELKevin Worden Rochester Area Habitat for HumanityPROGRAMDan Plizga Weis Builders IncPUBLIC WORKS ADVISORYJeff Broberg McGhie amp Betts - a Division of WSB amp Associates IncSHOWCASE OF HOMESBrandon Vagt XRG Concepts LLCSPIKE CLUBJay Burke Heartwood Homes of Rochester IncSPORTING CLAYSJames Coyle Kane amp Johnson Architects Inc
CouncilsBER EXECUTIVE COMMITTEEJJ Webster Kraus-Anderson Construction CompanyCBC EXECUTIVE COMMITTEEChris Terry Knutson Construction ServicesDEVELOPMENT COUNCILJohn Sipple Rochester Area Appraisals LLCREMODELERS EXECUTIVE COMMITTEESam Peyton Kingrsquos Flooring LLCREMODELERS TOURKaren Blissenbach Design Studio B
wwwRochesterAreaBuilderscom16 | July 2014
July Summer OutingWednesday July 16th 6 - 8 PM
Wildwood Sports Bar amp Grill1517 16th Street SW Suite C
Program
Cost is $15 per person Seating will be limited More details will be coming soon
RemodelersRemodelersRemodelers
WwwRochesterAreaBuilderscomJuly 2014 | 17
WErsquoRE HERE TO HELP Natural gas is a great energy
value Xcel Energy can help you with all of your energy-related
building needs including natural gas and electric We even off er
rebates for qualifying natural gas appliances Contact us today
and fi nd out how we can help you
Visit xcelenergycomEnergyPartners today
call 1-800-628-2121 or fax 1-800-628-2521
ENERGYVALUEBESTHO
OK UP
with the
copy 2013 Xcel Energy Inc
xcelenergycomEnergyPartners
13-XCL-00255-B_MNB_HookUp(Combo)_73125x475_4c_LOindd 1 5613 321 PM
A special offer formembers onlyRegister now and save 2 on your Lowersquos Accounts Receivable
purchases Plus get free delivery on purchases of $500 or moredagger
To register visit LowesForProscomNAHB or call 877-435-2440
Offer is not automatic See store for detailsOffer valid now through 12312014 Cannot be combined with any other statement discount To be eligible for the 2 discount you must register your NAHB membership by 12312014 and make a purchase with your Lowersquos Accounts Receivable by 12312014 Allow one to two complete billing cycles for your registration to be processed and for your discount to appear on your billing statement Offer and discount provided by Lowersquos and not GE Capital Retail Bank Excludes Lowersquos Business Account Card Lowersquos Consumer Credit Card Lowersquos Visa Accounts Lowersquos Business Rewards from American Express Card and all Lowersquos Canada Credit projects Offer not valid on purchases made prior to registering NAHB membership at LowesForProscom Call 877-435-2440 for questions about this program All purchases subject to credit approval daggerStandard delivery rules apply copy2014 Lowersquos LOWErsquoS Gable Mansard Design are registered trademarks of LF LLC
Lowes_2014 NAHB-HALFPAGEindd 1 112613 1222 PM
wwwRochesterAreaBuilderscom18 | July 2014
2014 VALUATION 2013 VALUATION
New Residential Single Family Dwelling 25 5531411 28 7133572
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 19 107504 56 286615
Room Addition 3 278763 2 82000
Porch Additions 0 0 0 0
Other Additions 0 0 2 43200
Basement Finish 29 342255 27 371975
Alterations 50 516115 47 325798
Multi-Family Addition 0 0 1 810
Multi-Family Alterations 2 113000 16 169000 New Commercial Assembly (Church) 0 0 0 0
Assembly (General) 0 0 0 0
Assembly (RestaurantBar) 1 1561000 1 700000
Business 0 0 1 225000
Education 0 0 0 0
FactoryIndustrial 0 0 0 0
Institution 0 0 0 0
Mercantile 0 0 0 0
Miscelaneous 0 0 0 0
Utility (General) 1 130000 1 3850
Residential (CareAssisted Living) 0 0 0 0
Storage (General) 1 45000 0 0
Storage (Warehouse) 0 0 1 532594 Existing CommercialAddition 8 5812413 1 15406
Alterations 34 5984762 36 34644913
Structural Shell 0 0 0 0
ldquoWhite Boxrdquo 1 15000 0 0
Interior Demolition Only 3 48500 3 16706
Other Phased Permits 0 0 0 0
Other ConstructionBusiness Signs 15 106565 6 15224
Advertising Sign 1 18000 0 0
Footings amp Foundations 2 220000 11
Demolition 3 1
Rochester Building Permits April 2014
January 33 39 27 20 3 13 3 6 19 11
February 31 31 19 13 1 8 8 20 15 14
March 59 37 30 29 16 27 24 32 29 28
April 58 58 44 27 29 25 19 29 39 25
May 77 69 50 30 33 20 14 22 27 35
TOTAL 258 234 172 119 82 93 68 109 129 113
June 81 59 43 36 36 12 26 32 33
July 58 36 60 23 21 23 8 39 39
August 69 36 43 28 26 15 18 38 21
September 65 31 33 28 33 10 19 22 23
October 71 49 34 19 31 14 16 23 34
November 40 38 23 26 30 21 20 22 26
December 60 23 11 16 15 12 16 14 22
TOTAL 702 506 417 302 274 200 191 299 326 113
Single Family Homes
Year To Date Statistics 2014 2013 NO VALUATION NO VALUATION
Building Permits Issued to Date 881 147003028 825 100011030
Single Family Dwelling 109 26968957 130 30405563
Multi-Family Buildings Total Units 39 1 3702052 0 0
Trade Permits Issued to Date 2978 30568713 2326 27697853
Electrical 1050 13657783 878 15240984
Electrical (Temp Service) 103 30950 115 29700
Mechanical 731 6606354 685 6221377
Gas Piping 198 417331 185 141995
Fireplace 163 417589 148 344814
Hydronic System 69 3689975 50 1105942
Plumbing 664 5748731 653 4613041
Total Permits YTD 3859 177571741 3151 127708883
Information and downloads available at Rochester Building Safety Departmentrsquos Website httpwwwrochestermngovdepartmentsbldgsafetyreportsbuildingindexasp
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
total may differ as permits may have been voided
WwwRochesterAreaBuilderscomJuly 2014 | 19
Rochester Real EstateMonthly Housing DataMarch 2014
Monthly Housing Data March 2014 March 2013 Change
New Listings 311 320 -28Active Listings Year to Date
1087 1195 -90
Pending Listing 173 212 -184Sold Listings 128 144 -111Sold Listings Year to Date
312 342 -88
Median Sales Price (SOLD)
158000 153150 30
SOLD Days on Market (DOM)
81 100 -1900
Avg Year to Date (DOM)
86 110 -2182
Information and downloads available at South East Minnesota Association of REALTORSrsquo
Website httpsemnrealtorsorggeneralstats_market-trendshtml
Information Provided By
MARCH 2014
New Residential NUMBER VALUATION
Single Family Detached 8 1263500
New Commercial
Commercial 1 142000
Existing Residential
Deck Addition 15 55113
Basement Finish 1 3600
Alterations 2 5800
Accessory Building 1 5000
ByronBuilding Permits
MARCH 2014
New Residential NUMBER VALUATION
Single Family 3 402000
Existing Residential
Deck Addition 3 15000
Alterations 9 49000
Reroof 10 50000
Existing Commercial
Reroof 2 10000
Pine IslandBuilding Permits
wwwRochesterAreaBuilderscom20 | July 2014
Despite GDP growth stalling in Q1 due to the Polar Vortex slower inventory accumulation and mildly lower exports the economic recovery remains intact The anemic performance of the US economy from January through March was aberrant and the incoming employment manufacturing and consumer spending data all point to an economic pickup GDP growth the rest of the year should average 3 with growth in Q2 closer to 325 as the economy rebounds from the harsh winter In addition reduced fiscal drag from DC increased hiring and spending by state and local governments and increased corporate spending on plant and equipment suggest we are finally entering a period of faster growth
That said economically all is not well Wage growth remains anemic and while the unemployment rate is 63 down from 10 the fall is largely due to a decline in the labor force participation rate The ranks of the long-term unemployed remain elevated along with the number of those working part-time because they canrsquot find full time work Add to that average overtime hours that are remarkably high and termination rates that are very low and what you have are employers very reluctant to hire This situation cannot persist and of late job creation numbers have been on the upswing Therefore net job creation will rise from 200000month where it has been for the past year to 220000 or 225000 by year end and unemployment will probably fall to 61 I expect wage growth to start picking up steam in 2015
The biggest drag on the economy is housing After a promising first half of 2013 the housing market is at best flat While rising interest rates and home prices a lack of inventory and lots shortages of materials and labor and a lack of credit and first-
time buyers play a part weak household formation is the main culprit After averaging over 12 million in the years prior to the Great Recession household formations have been averaging 500000 since the end of the recession The good news - household formation will rise now that all eight million jobs lost during the recession have been finally made up We are no longer making up lost ground Because of this new single-family construction activity in 2014 will reach 700000 with multifamily adding 350000 while existing home sales should be down slightly from last year
As for inflation itrsquos benign No matter how measured there is no inflation to speak of in the US Commodity prices will remain well-behaved given weak demand due to economic slowing in China and weak growth in Europe and the developing nations Absent some sort of geopolitical crisis energy prices will remain where they are thanks to record US oil production As a result expect tapering to end in November and for the Federal Reserve to begin raising short-term interest rates by mid-2015 However long-term rates have bottomed and 10-yr Treasuries will end the year at about 3 as the economy steadily strengthens
In short the economy is improving and Q1 was a speed bump Long term rates will rise short-term rates will remain unchanged and housing will limp into 2015 with prices rising slightly Most critically household formation will strengthen and corporate state and local government spending will rise Lastly the likelihood of a recession during the next six months is virtually zero
Economic Forecast for 2nd Half of 2014 Increasing Momentum Reduced Headwinds
Elliot Eisenberg PhD
Elliot Eisenberg PhD is President of GraphsandLaughs LLC and can be reached at Elliotgraphsandlaughsnet His daily 70 word economics
and policy blog can be seen at wwwecon70com
WwwRochesterAreaBuilderscomJuly 2014 | 21
CUSTOM HOMES BY BRADLEY INCRochester MN 55901Phone 507- 358-8681Contact Brad Goeden
Builder MemberResidential Builder
Sponsored byNone Listed
MEMBERSHIPS PENDINGNONE
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 943
As of 53114
WE WELCOME THE FOLLOWING NEW MEMBERS IN MAY
Membership Information
Membership Renewals as of 53114
One Year
Alpha Video amp Audio 2013GulfEagle Supply 2013
Two to Four Years
The Design Connection 2012Hammer Homes Inc 2011Steel Constructors Inc 2011
Five to Nine Years
Kingrsquos Flooring LLC 2009Turtle Creek Construction Inc 2009The Blue Book of Building amp Construction 2007Bruce Bucknell Construction Inc 2006McGough Construction 2006Schoeppner Inc 2006Cravath Homes LLC dba Accessibility Solutions
2005
Prime Time Painting of Rochester LLC 2005Ten to 19 Years
Elcor Realty of Rochester Inc 2004RJ Manemann Custom Homes 2004DMC Plumbing amp Heating Inc 2003Fairway Outdoor Advertising LLC 2003Innovative Surfaces Inc 2002Design Studio B 2001SL Contracting 1998
25 Years amp More
Hentges Glass Company 1991Larson Siding amp Windows 1986Merit Contracting Inc 1982Sargentrsquos Landscape Nursery Inc 1977CO Brown Agency 1970Holt Title Guaranty Company Inc 1958Palmer Soderberg Inc 1958
NEW APPLICANTS
ULTIMATE SURFACES1233 Eastgate Drive SERochester MN 55904Phone 507- 258-5439Contact Tony Heintz
Associate MemberFabricator
Sponsored bySam Peyton Kingrsquos Flooring LLC
wwwRochesterAreaBuilderscom22 | July 2014
Put your membershipto work nowMoney-saving discounts that benefit yourbusiness your employees and your family
wwwnahborgMA
National Association of Home Builders
R
wwwRochesterAreaBuilderscom6 | July 2014
What Green Building Expomdashan event for the
public
When Saturday September 20 2014
Where Cascade Meadow Wetlands and
Environmental Science Center
Time 9amndash 3pm
Who You If your business has anything to do with making a home more
energy efficient more sustainable sign up for a booth and we will review
Areas we are looking for
Buildings Health and Wellness Site Development Landscaping and Drain-
age
Cost $200mdashfor a measly $200 you get a 6 foot booth and countless mem-
bers of the public to talk to about your business
$50 to present The com-
topics to be presented
Signature Event Sponsors
EXHIBITORS NEEDED
C
M
Y
CM
MY
CY
CMY
K
RFP-pdf 6202014 105738 AM
WwwRochesterAreaBuilderscomJuly 2014 | 7
Business
Contact Name
Nature of Business
Payment Method (Please Circle) Check Credit Card
Credit Card Number Security Code
Yes No
Signature Event Sponsors
faxing it to Rochester Area Builders at 507-282-6351
If you would like to mail in the form please mail it to
Rochester Area Builders
108 Elton Hills Ln NW
Rochester MN 55901
Please note that Rochester Area Builders will
ability of your business to the Green Building
respond to you by August 22 2014 with the
final decision Space is limited so sign up
fast
C
M
Y
CM
MY
CY
CMY
K
RFP - Registration-pdf 6202014 105556 AM
wwwRochesterAreaBuilderscom8 | July 2014
RAB Golf OutingAssociation Scrapbook
WwwRochesterAreaBuilderscomJuly 2014 | 9
Association ScrapbookRAB Golf Outing
wwwRochesterAreaBuilderscom10 | July 2014
CBC Social EventAssociation Scrapbook
WwwRochesterAreaBuilderscomJuly 2014 | 11
Association ScrapbookCBC Social Event
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N T
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DEN
GISE
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CEJ
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BCDEFGHIJ A
0-1 = 81 5 BEVERAGE SPONSOR N
0-1 = 81 4 EVENT SPONSORS N
0-1 = 81 2 DETAILS N
0-1 = 81 3 RSVP N
0-1 = 81 1 EVENT N
Donrsquot forget to RSVPIf you attend amp did not RSVP we may not have enough food so let us know
Deadline to RSVP is Monday April 14th at 1200 Noon
Phone 507-282-7698 Fax 507-282-6351
Email RABRochesterAreaBuilderscom
3rsquo - 9rdquo
1rsquo -
10rdquo
CBC Social EventWildwood Sports Bar amp Grill
1517 16th St SW Rochester MN 55902Wednesday May 16th 430 ndash 700 PM
Join us at Wildwood Sports Bar amp Grill for our 2nd Annual Commercial Builders Council Social Event Socialize and network with your fellow Members in a relaxed environment Enjoy a free Cajun buffet
and beer thanks to our great sponsors
wwwRochesterAreaBuilderscom12 | July 2014
RAB Golf Outing Review
Gazebo SPONSORCommercial Builders Council
PUTTING CONTEST SPONSORMinnesota Energy Resources
CLOSEST TO THE FLAGThe Builders Group
BREAK THE GLASSMarvin Windows amp Doors
CIGAR CART SPONSORTradesmen International Inc
DRINK CART SPONSORSCarpet OneKnutson Construction Services
TEE amp GREEN SPONSORSABC Supply Company IncBraun Intertec CorporationCO Brown AgencyCambriaCharter BusinessClements Chevrolet Cadillac SubaruData-Smart Computers IncDunlap amp SeegerEnergy Products amp DesignGerhardrsquosHome Federal Savings BankKreofsky Building SuppliesKruse LumberMBT BankMcGhie amp Betts A Div of WSBMcGladreyMerchants BankMinnwest BankOlmsted National BankPost-Bulletin Company LLCProBuild Company LLCPine Island LumberPompeii Painting IncPremier Bank RochesterRochester Title amp Escrow CoSmith Schafer amp AssociatesSomerby Golf CommunityWarnerrsquos Stellian ApplianceWendland UtzWerner Electric SupplyWomen Communications LLCYaggy Colby Associates
APPETIZER SPONSORSCrescent Electric Supply CompanyCRW architecture + design groupOhly Law OfficeViking Electric Supply
CART SPONSORSThe Blue Book of Building amp
ConstructionBrock White CompanyCRW architecture + design groupCustom AlarmCustom
Communications IncEastwood BankFirst Security BankPrimeLendingThompsonrsquos Garage Door and
Openers
Thank You to our wonderful SponsorsGold Tee Sponsor
WwwRochesterAreaBuilderscomJuly 2014 | 13
For this monthrsquos ldquoHey Matt Whatrsquos Up With Thatrdquo we are talking about Subcontractor Registration and sump pumps
ldquoHey Matt whatrsquos up with Subcontractor Registrationrdquo
This legislative session a pilot program by the Department of Labor and Industry (DLI) was codified into law making it binding upon all contractors in Minnesota The program aims to crack down on subcontractors not registering with DLI and claiming independent contractor status to get around some workers compensation laws
The program works like this if a subcontractor is not registered with DLI and does not fulfill the 9 factor test for being an independent contractor DLI fines the general contractor We fought this law during the legislative session and thankfully we received a one-time hall pass That means that the first time that a general contractor hires a subcontractor that is not registered with DLI they will not be fined This is something we fought for when we saw the writing on the wall that this would become law
Going forward subcontractors make sure you are registered with DLI It may affect your ability to work for certain GCs And GCs the onus is on YOU to make sure the subs you hire are registered You can check with DLI on their website using a nifty little search tool RAB will be running our membership list through DLIrsquos registered contractors list and we will be contacting those who arenrsquot registered to give them a friendly reminder
ldquoHey Matt I hear a lot of people talking about Sump Pumps all of a sudden Whatrsquos up with thatrdquo
What a wet spring so far With so much water falling from the sky and soaking the ground its no surprise that sump pumps have become a topic of discussion Recently RAB was reminded by the building safety department of Rochester that if you have a sump basket in a house there must be a discharge line installed and a pump placed in the basket This is a part of the Minnesota state building code The building safety department explained that they are running into a lot of homes with baskets installed that have no discharge line or pump in the basket
We have also heard concerns from some builders that they can put a pump in the sump basket but if it doesnrsquot run for over 6 months it will seize up and not work when needed Homeowners make sure to follow the manufacturerrsquos instructions for maintenance on these sump pumps The most common maintenance step for these pumps is to ocasionally pour water into the sump basket during the winter and let the pump run This is an important step to make sure your basement doesnrsquot become a wading pool
Thanks to the members who sent me these questions for this monthrsquos edition of ldquoHey Whatrsquos up with Thatrdquo As always if you have a question about anything you find interesting or confusing during your work day give me a call or send an email and hopefully I can find out the answer for you
Matt
Oh and one more thing
ldquoHey Matt did you put a ring on itrdquo
Yes itrsquos true Matt proposed to and more importantly was accepted by his now fiance Loryn Meloy Congratualtions to the happy couple
wwwRochesterAreaBuilderscom14 | July 2014
What Wersquore Doing For YouCWGQ Insurance
TBG Insurance
Gov Relations
Legal Action
Education
Online Forums
Action Center
Energy Payback
Visit wwwbamnorg and log-in to the Members Only site for more information on these BAM initiatives
BUILDERSASSOCIATION OF MINNESOTA
T 6516467959T 8006547783W wwwbamnorg
Executive Committee
BAM Update June 2014
The Minnesota Department of Labor and Industry (DLI) has stated they plan to start enforcing the new Minnesota Building Code in January of 2015 They have not yet released the final version of the code so we donrsquot know exactly what will be included However based on what is known the Builders Association of Minnesota (BAM) is working to provide members with code guides with a planned release date near the end of August 2014
BAM has contracted with Ed VonThoma of Building Knowledge Inc and has assembled a group of statewide members to create and vet the following code guide documentsbull Top 20 Code Changes in the Residential Building Codebull Top 20 Code Changes in the Energy Codebull Field Guide to Residential Code bull Field Guide to Energy Code bull Field Guide to Radon bull Field Guide to Foundation Wall Support bull Field Guide to Residential Fire Sprinklers
These guides are a major benefit of membership and available ONLY to members DLI issues the codes but BAM is the organization that develops guides on how to implement the new codes BAM will be providing members with access to each of these seven documents The documents will be available on the BAM website and optimized for both printing and easy viewing on your mobile devices out in the field These guides will form the basis for continuing education courses and BKI will be available to teach classes around the state to help members prepare to build to the new code
If you have industry peers that will benefit from having these guides tell them to join your local builders association and enjoy 3-in-1 membership to access BAMrsquos field guides and other value added benefits such as our home builidng industry specific construction contracts
Thank you to BAM members who are genersouly donating their time to help perfect the members-only guides Thank you to Daniel Buuck Clay Dietrich Jon Coty George Cundy Terry Hammack Chad Kompelien Keith Kylmala Kevin Maleska John McGuine Trace Mills Monte Mraz Kathe Ostrom Mike Paradise Craig Plekkenpol Joe Ranweiler David Werschay and Howie Zetah
We will keep you updated on news from DLI about the new codes timeline BAM will be releasing the field guides starting with the ldquoTop 20rdquo Residential and Energy Codes Field Guides at the end of the summer with the remainder released far in advance of the January 24 2015 code enforcement date
President Chad Kompelein
Builder VPKC Chermak
Associate VPGeorge Cundy
President ElectMike Paradise
TreasurerGerry Traut
SecretaryKurt Welker
Past PresidentKeith Kylmala
NAHB RepresentativeKathe Ostrom
WwwRochesterAreaBuilderscomJuly 2014 | 15
Committee UpdatesEDUCATION COMMITTEECHAIRPERSON VACANT
This committee is currently meeting to plan our education seminars for this winter The first round of CE classes to continue holding your Lead Certification is this year We will be offering these classes later this Fall for members renewing Lead Certification in December and again in the Winter for those renewing in April 2015 Regular CE credit classes will be held in January and February If you have any suggestions for presentations or speakers please call the office and talk to Rebekah
Committee ChairpersonsAMBASSADORSGreg Hird First Alliance Credit UnionAWARDSTBABUILDING MAINTENANCETJ Schutz Advanced Building Center IncBUILDING SAFETY ADVISORYMickey Elias Elias Construction LLCCOMMUNITY RELATIONSTony Kunz Hillerrsquos Flooring AmericaDISPUTE RESOLUTIONJohn Kuntz Kuntz Electric IncEDUCATIONVacantEXECUTIVEKevin Worden Rochester Area Habitat for HumanityFASHION SHOWKaren Blissenbach Design Studio BFINANCECarla Kilpatrick Home Federal Savings BankGOLF OUTINGLindsey Rippentrop Olmsted National BankGOVERNMENT AFFAIRSJohn Eckerman The Boldt CompanyGREEN BUILDINGKelly OrsquoMarro XRG Concepts LLCHOME SHOW ndash 2013Jeff Kalmes Hillers Flooring AmericaMARKETINGRob Easthouse Electrical Solutions amp ServiceMEMBERSHIP amp RETENTIONDan Bochman Kruse LumberNOMINATINGKerk Johnson Schwickertrsquos Tecta America LLC PERSONNELKevin Worden Rochester Area Habitat for HumanityPROGRAMDan Plizga Weis Builders IncPUBLIC WORKS ADVISORYJeff Broberg McGhie amp Betts - a Division of WSB amp Associates IncSHOWCASE OF HOMESBrandon Vagt XRG Concepts LLCSPIKE CLUBJay Burke Heartwood Homes of Rochester IncSPORTING CLAYSJames Coyle Kane amp Johnson Architects Inc
CouncilsBER EXECUTIVE COMMITTEEJJ Webster Kraus-Anderson Construction CompanyCBC EXECUTIVE COMMITTEEChris Terry Knutson Construction ServicesDEVELOPMENT COUNCILJohn Sipple Rochester Area Appraisals LLCREMODELERS EXECUTIVE COMMITTEESam Peyton Kingrsquos Flooring LLCREMODELERS TOURKaren Blissenbach Design Studio B
wwwRochesterAreaBuilderscom16 | July 2014
July Summer OutingWednesday July 16th 6 - 8 PM
Wildwood Sports Bar amp Grill1517 16th Street SW Suite C
Program
Cost is $15 per person Seating will be limited More details will be coming soon
RemodelersRemodelersRemodelers
WwwRochesterAreaBuilderscomJuly 2014 | 17
WErsquoRE HERE TO HELP Natural gas is a great energy
value Xcel Energy can help you with all of your energy-related
building needs including natural gas and electric We even off er
rebates for qualifying natural gas appliances Contact us today
and fi nd out how we can help you
Visit xcelenergycomEnergyPartners today
call 1-800-628-2121 or fax 1-800-628-2521
ENERGYVALUEBESTHO
OK UP
with the
copy 2013 Xcel Energy Inc
xcelenergycomEnergyPartners
13-XCL-00255-B_MNB_HookUp(Combo)_73125x475_4c_LOindd 1 5613 321 PM
A special offer formembers onlyRegister now and save 2 on your Lowersquos Accounts Receivable
purchases Plus get free delivery on purchases of $500 or moredagger
To register visit LowesForProscomNAHB or call 877-435-2440
Offer is not automatic See store for detailsOffer valid now through 12312014 Cannot be combined with any other statement discount To be eligible for the 2 discount you must register your NAHB membership by 12312014 and make a purchase with your Lowersquos Accounts Receivable by 12312014 Allow one to two complete billing cycles for your registration to be processed and for your discount to appear on your billing statement Offer and discount provided by Lowersquos and not GE Capital Retail Bank Excludes Lowersquos Business Account Card Lowersquos Consumer Credit Card Lowersquos Visa Accounts Lowersquos Business Rewards from American Express Card and all Lowersquos Canada Credit projects Offer not valid on purchases made prior to registering NAHB membership at LowesForProscom Call 877-435-2440 for questions about this program All purchases subject to credit approval daggerStandard delivery rules apply copy2014 Lowersquos LOWErsquoS Gable Mansard Design are registered trademarks of LF LLC
Lowes_2014 NAHB-HALFPAGEindd 1 112613 1222 PM
wwwRochesterAreaBuilderscom18 | July 2014
2014 VALUATION 2013 VALUATION
New Residential Single Family Dwelling 25 5531411 28 7133572
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 19 107504 56 286615
Room Addition 3 278763 2 82000
Porch Additions 0 0 0 0
Other Additions 0 0 2 43200
Basement Finish 29 342255 27 371975
Alterations 50 516115 47 325798
Multi-Family Addition 0 0 1 810
Multi-Family Alterations 2 113000 16 169000 New Commercial Assembly (Church) 0 0 0 0
Assembly (General) 0 0 0 0
Assembly (RestaurantBar) 1 1561000 1 700000
Business 0 0 1 225000
Education 0 0 0 0
FactoryIndustrial 0 0 0 0
Institution 0 0 0 0
Mercantile 0 0 0 0
Miscelaneous 0 0 0 0
Utility (General) 1 130000 1 3850
Residential (CareAssisted Living) 0 0 0 0
Storage (General) 1 45000 0 0
Storage (Warehouse) 0 0 1 532594 Existing CommercialAddition 8 5812413 1 15406
Alterations 34 5984762 36 34644913
Structural Shell 0 0 0 0
ldquoWhite Boxrdquo 1 15000 0 0
Interior Demolition Only 3 48500 3 16706
Other Phased Permits 0 0 0 0
Other ConstructionBusiness Signs 15 106565 6 15224
Advertising Sign 1 18000 0 0
Footings amp Foundations 2 220000 11
Demolition 3 1
Rochester Building Permits April 2014
January 33 39 27 20 3 13 3 6 19 11
February 31 31 19 13 1 8 8 20 15 14
March 59 37 30 29 16 27 24 32 29 28
April 58 58 44 27 29 25 19 29 39 25
May 77 69 50 30 33 20 14 22 27 35
TOTAL 258 234 172 119 82 93 68 109 129 113
June 81 59 43 36 36 12 26 32 33
July 58 36 60 23 21 23 8 39 39
August 69 36 43 28 26 15 18 38 21
September 65 31 33 28 33 10 19 22 23
October 71 49 34 19 31 14 16 23 34
November 40 38 23 26 30 21 20 22 26
December 60 23 11 16 15 12 16 14 22
TOTAL 702 506 417 302 274 200 191 299 326 113
Single Family Homes
Year To Date Statistics 2014 2013 NO VALUATION NO VALUATION
Building Permits Issued to Date 881 147003028 825 100011030
Single Family Dwelling 109 26968957 130 30405563
Multi-Family Buildings Total Units 39 1 3702052 0 0
Trade Permits Issued to Date 2978 30568713 2326 27697853
Electrical 1050 13657783 878 15240984
Electrical (Temp Service) 103 30950 115 29700
Mechanical 731 6606354 685 6221377
Gas Piping 198 417331 185 141995
Fireplace 163 417589 148 344814
Hydronic System 69 3689975 50 1105942
Plumbing 664 5748731 653 4613041
Total Permits YTD 3859 177571741 3151 127708883
Information and downloads available at Rochester Building Safety Departmentrsquos Website httpwwwrochestermngovdepartmentsbldgsafetyreportsbuildingindexasp
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
total may differ as permits may have been voided
WwwRochesterAreaBuilderscomJuly 2014 | 19
Rochester Real EstateMonthly Housing DataMarch 2014
Monthly Housing Data March 2014 March 2013 Change
New Listings 311 320 -28Active Listings Year to Date
1087 1195 -90
Pending Listing 173 212 -184Sold Listings 128 144 -111Sold Listings Year to Date
312 342 -88
Median Sales Price (SOLD)
158000 153150 30
SOLD Days on Market (DOM)
81 100 -1900
Avg Year to Date (DOM)
86 110 -2182
Information and downloads available at South East Minnesota Association of REALTORSrsquo
Website httpsemnrealtorsorggeneralstats_market-trendshtml
Information Provided By
MARCH 2014
New Residential NUMBER VALUATION
Single Family Detached 8 1263500
New Commercial
Commercial 1 142000
Existing Residential
Deck Addition 15 55113
Basement Finish 1 3600
Alterations 2 5800
Accessory Building 1 5000
ByronBuilding Permits
MARCH 2014
New Residential NUMBER VALUATION
Single Family 3 402000
Existing Residential
Deck Addition 3 15000
Alterations 9 49000
Reroof 10 50000
Existing Commercial
Reroof 2 10000
Pine IslandBuilding Permits
wwwRochesterAreaBuilderscom20 | July 2014
Despite GDP growth stalling in Q1 due to the Polar Vortex slower inventory accumulation and mildly lower exports the economic recovery remains intact The anemic performance of the US economy from January through March was aberrant and the incoming employment manufacturing and consumer spending data all point to an economic pickup GDP growth the rest of the year should average 3 with growth in Q2 closer to 325 as the economy rebounds from the harsh winter In addition reduced fiscal drag from DC increased hiring and spending by state and local governments and increased corporate spending on plant and equipment suggest we are finally entering a period of faster growth
That said economically all is not well Wage growth remains anemic and while the unemployment rate is 63 down from 10 the fall is largely due to a decline in the labor force participation rate The ranks of the long-term unemployed remain elevated along with the number of those working part-time because they canrsquot find full time work Add to that average overtime hours that are remarkably high and termination rates that are very low and what you have are employers very reluctant to hire This situation cannot persist and of late job creation numbers have been on the upswing Therefore net job creation will rise from 200000month where it has been for the past year to 220000 or 225000 by year end and unemployment will probably fall to 61 I expect wage growth to start picking up steam in 2015
The biggest drag on the economy is housing After a promising first half of 2013 the housing market is at best flat While rising interest rates and home prices a lack of inventory and lots shortages of materials and labor and a lack of credit and first-
time buyers play a part weak household formation is the main culprit After averaging over 12 million in the years prior to the Great Recession household formations have been averaging 500000 since the end of the recession The good news - household formation will rise now that all eight million jobs lost during the recession have been finally made up We are no longer making up lost ground Because of this new single-family construction activity in 2014 will reach 700000 with multifamily adding 350000 while existing home sales should be down slightly from last year
As for inflation itrsquos benign No matter how measured there is no inflation to speak of in the US Commodity prices will remain well-behaved given weak demand due to economic slowing in China and weak growth in Europe and the developing nations Absent some sort of geopolitical crisis energy prices will remain where they are thanks to record US oil production As a result expect tapering to end in November and for the Federal Reserve to begin raising short-term interest rates by mid-2015 However long-term rates have bottomed and 10-yr Treasuries will end the year at about 3 as the economy steadily strengthens
In short the economy is improving and Q1 was a speed bump Long term rates will rise short-term rates will remain unchanged and housing will limp into 2015 with prices rising slightly Most critically household formation will strengthen and corporate state and local government spending will rise Lastly the likelihood of a recession during the next six months is virtually zero
Economic Forecast for 2nd Half of 2014 Increasing Momentum Reduced Headwinds
Elliot Eisenberg PhD
Elliot Eisenberg PhD is President of GraphsandLaughs LLC and can be reached at Elliotgraphsandlaughsnet His daily 70 word economics
and policy blog can be seen at wwwecon70com
WwwRochesterAreaBuilderscomJuly 2014 | 21
CUSTOM HOMES BY BRADLEY INCRochester MN 55901Phone 507- 358-8681Contact Brad Goeden
Builder MemberResidential Builder
Sponsored byNone Listed
MEMBERSHIPS PENDINGNONE
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 943
As of 53114
WE WELCOME THE FOLLOWING NEW MEMBERS IN MAY
Membership Information
Membership Renewals as of 53114
One Year
Alpha Video amp Audio 2013GulfEagle Supply 2013
Two to Four Years
The Design Connection 2012Hammer Homes Inc 2011Steel Constructors Inc 2011
Five to Nine Years
Kingrsquos Flooring LLC 2009Turtle Creek Construction Inc 2009The Blue Book of Building amp Construction 2007Bruce Bucknell Construction Inc 2006McGough Construction 2006Schoeppner Inc 2006Cravath Homes LLC dba Accessibility Solutions
2005
Prime Time Painting of Rochester LLC 2005Ten to 19 Years
Elcor Realty of Rochester Inc 2004RJ Manemann Custom Homes 2004DMC Plumbing amp Heating Inc 2003Fairway Outdoor Advertising LLC 2003Innovative Surfaces Inc 2002Design Studio B 2001SL Contracting 1998
25 Years amp More
Hentges Glass Company 1991Larson Siding amp Windows 1986Merit Contracting Inc 1982Sargentrsquos Landscape Nursery Inc 1977CO Brown Agency 1970Holt Title Guaranty Company Inc 1958Palmer Soderberg Inc 1958
NEW APPLICANTS
ULTIMATE SURFACES1233 Eastgate Drive SERochester MN 55904Phone 507- 258-5439Contact Tony Heintz
Associate MemberFabricator
Sponsored bySam Peyton Kingrsquos Flooring LLC
wwwRochesterAreaBuilderscom22 | July 2014
Put your membershipto work nowMoney-saving discounts that benefit yourbusiness your employees and your family
wwwnahborgMA
National Association of Home Builders
R
WwwRochesterAreaBuilderscomJuly 2014 | 7
Business
Contact Name
Nature of Business
Payment Method (Please Circle) Check Credit Card
Credit Card Number Security Code
Yes No
Signature Event Sponsors
faxing it to Rochester Area Builders at 507-282-6351
If you would like to mail in the form please mail it to
Rochester Area Builders
108 Elton Hills Ln NW
Rochester MN 55901
Please note that Rochester Area Builders will
ability of your business to the Green Building
respond to you by August 22 2014 with the
final decision Space is limited so sign up
fast
C
M
Y
CM
MY
CY
CMY
K
RFP - Registration-pdf 6202014 105556 AM
wwwRochesterAreaBuilderscom8 | July 2014
RAB Golf OutingAssociation Scrapbook
WwwRochesterAreaBuilderscomJuly 2014 | 9
Association ScrapbookRAB Golf Outing
wwwRochesterAreaBuilderscom10 | July 2014
CBC Social EventAssociation Scrapbook
WwwRochesterAreaBuilderscomJuly 2014 | 11
Association ScrapbookCBC Social Event
O
N T
CEJ
ORP
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AN
ELIF
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507-282-7698108 E
lton Hills Ln N
W R
ochester MN
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uilderscomw
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COMMERCIALBUILDERS COUNCIL
SOCIAL EVENTROCHESTER MINNESOTA
SAW
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OISI
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SSEF
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BCDEFGHIJ A
0-1 = 81 5 BEVERAGE SPONSOR N
0-1 = 81 4 EVENT SPONSORS N
0-1 = 81 2 DETAILS N
0-1 = 81 3 RSVP N
0-1 = 81 1 EVENT N
Donrsquot forget to RSVPIf you attend amp did not RSVP we may not have enough food so let us know
Deadline to RSVP is Monday April 14th at 1200 Noon
Phone 507-282-7698 Fax 507-282-6351
Email RABRochesterAreaBuilderscom
3rsquo - 9rdquo
1rsquo -
10rdquo
CBC Social EventWildwood Sports Bar amp Grill
1517 16th St SW Rochester MN 55902Wednesday May 16th 430 ndash 700 PM
Join us at Wildwood Sports Bar amp Grill for our 2nd Annual Commercial Builders Council Social Event Socialize and network with your fellow Members in a relaxed environment Enjoy a free Cajun buffet
and beer thanks to our great sponsors
wwwRochesterAreaBuilderscom12 | July 2014
RAB Golf Outing Review
Gazebo SPONSORCommercial Builders Council
PUTTING CONTEST SPONSORMinnesota Energy Resources
CLOSEST TO THE FLAGThe Builders Group
BREAK THE GLASSMarvin Windows amp Doors
CIGAR CART SPONSORTradesmen International Inc
DRINK CART SPONSORSCarpet OneKnutson Construction Services
TEE amp GREEN SPONSORSABC Supply Company IncBraun Intertec CorporationCO Brown AgencyCambriaCharter BusinessClements Chevrolet Cadillac SubaruData-Smart Computers IncDunlap amp SeegerEnergy Products amp DesignGerhardrsquosHome Federal Savings BankKreofsky Building SuppliesKruse LumberMBT BankMcGhie amp Betts A Div of WSBMcGladreyMerchants BankMinnwest BankOlmsted National BankPost-Bulletin Company LLCProBuild Company LLCPine Island LumberPompeii Painting IncPremier Bank RochesterRochester Title amp Escrow CoSmith Schafer amp AssociatesSomerby Golf CommunityWarnerrsquos Stellian ApplianceWendland UtzWerner Electric SupplyWomen Communications LLCYaggy Colby Associates
APPETIZER SPONSORSCrescent Electric Supply CompanyCRW architecture + design groupOhly Law OfficeViking Electric Supply
CART SPONSORSThe Blue Book of Building amp
ConstructionBrock White CompanyCRW architecture + design groupCustom AlarmCustom
Communications IncEastwood BankFirst Security BankPrimeLendingThompsonrsquos Garage Door and
Openers
Thank You to our wonderful SponsorsGold Tee Sponsor
WwwRochesterAreaBuilderscomJuly 2014 | 13
For this monthrsquos ldquoHey Matt Whatrsquos Up With Thatrdquo we are talking about Subcontractor Registration and sump pumps
ldquoHey Matt whatrsquos up with Subcontractor Registrationrdquo
This legislative session a pilot program by the Department of Labor and Industry (DLI) was codified into law making it binding upon all contractors in Minnesota The program aims to crack down on subcontractors not registering with DLI and claiming independent contractor status to get around some workers compensation laws
The program works like this if a subcontractor is not registered with DLI and does not fulfill the 9 factor test for being an independent contractor DLI fines the general contractor We fought this law during the legislative session and thankfully we received a one-time hall pass That means that the first time that a general contractor hires a subcontractor that is not registered with DLI they will not be fined This is something we fought for when we saw the writing on the wall that this would become law
Going forward subcontractors make sure you are registered with DLI It may affect your ability to work for certain GCs And GCs the onus is on YOU to make sure the subs you hire are registered You can check with DLI on their website using a nifty little search tool RAB will be running our membership list through DLIrsquos registered contractors list and we will be contacting those who arenrsquot registered to give them a friendly reminder
ldquoHey Matt I hear a lot of people talking about Sump Pumps all of a sudden Whatrsquos up with thatrdquo
What a wet spring so far With so much water falling from the sky and soaking the ground its no surprise that sump pumps have become a topic of discussion Recently RAB was reminded by the building safety department of Rochester that if you have a sump basket in a house there must be a discharge line installed and a pump placed in the basket This is a part of the Minnesota state building code The building safety department explained that they are running into a lot of homes with baskets installed that have no discharge line or pump in the basket
We have also heard concerns from some builders that they can put a pump in the sump basket but if it doesnrsquot run for over 6 months it will seize up and not work when needed Homeowners make sure to follow the manufacturerrsquos instructions for maintenance on these sump pumps The most common maintenance step for these pumps is to ocasionally pour water into the sump basket during the winter and let the pump run This is an important step to make sure your basement doesnrsquot become a wading pool
Thanks to the members who sent me these questions for this monthrsquos edition of ldquoHey Whatrsquos up with Thatrdquo As always if you have a question about anything you find interesting or confusing during your work day give me a call or send an email and hopefully I can find out the answer for you
Matt
Oh and one more thing
ldquoHey Matt did you put a ring on itrdquo
Yes itrsquos true Matt proposed to and more importantly was accepted by his now fiance Loryn Meloy Congratualtions to the happy couple
wwwRochesterAreaBuilderscom14 | July 2014
What Wersquore Doing For YouCWGQ Insurance
TBG Insurance
Gov Relations
Legal Action
Education
Online Forums
Action Center
Energy Payback
Visit wwwbamnorg and log-in to the Members Only site for more information on these BAM initiatives
BUILDERSASSOCIATION OF MINNESOTA
T 6516467959T 8006547783W wwwbamnorg
Executive Committee
BAM Update June 2014
The Minnesota Department of Labor and Industry (DLI) has stated they plan to start enforcing the new Minnesota Building Code in January of 2015 They have not yet released the final version of the code so we donrsquot know exactly what will be included However based on what is known the Builders Association of Minnesota (BAM) is working to provide members with code guides with a planned release date near the end of August 2014
BAM has contracted with Ed VonThoma of Building Knowledge Inc and has assembled a group of statewide members to create and vet the following code guide documentsbull Top 20 Code Changes in the Residential Building Codebull Top 20 Code Changes in the Energy Codebull Field Guide to Residential Code bull Field Guide to Energy Code bull Field Guide to Radon bull Field Guide to Foundation Wall Support bull Field Guide to Residential Fire Sprinklers
These guides are a major benefit of membership and available ONLY to members DLI issues the codes but BAM is the organization that develops guides on how to implement the new codes BAM will be providing members with access to each of these seven documents The documents will be available on the BAM website and optimized for both printing and easy viewing on your mobile devices out in the field These guides will form the basis for continuing education courses and BKI will be available to teach classes around the state to help members prepare to build to the new code
If you have industry peers that will benefit from having these guides tell them to join your local builders association and enjoy 3-in-1 membership to access BAMrsquos field guides and other value added benefits such as our home builidng industry specific construction contracts
Thank you to BAM members who are genersouly donating their time to help perfect the members-only guides Thank you to Daniel Buuck Clay Dietrich Jon Coty George Cundy Terry Hammack Chad Kompelien Keith Kylmala Kevin Maleska John McGuine Trace Mills Monte Mraz Kathe Ostrom Mike Paradise Craig Plekkenpol Joe Ranweiler David Werschay and Howie Zetah
We will keep you updated on news from DLI about the new codes timeline BAM will be releasing the field guides starting with the ldquoTop 20rdquo Residential and Energy Codes Field Guides at the end of the summer with the remainder released far in advance of the January 24 2015 code enforcement date
President Chad Kompelein
Builder VPKC Chermak
Associate VPGeorge Cundy
President ElectMike Paradise
TreasurerGerry Traut
SecretaryKurt Welker
Past PresidentKeith Kylmala
NAHB RepresentativeKathe Ostrom
WwwRochesterAreaBuilderscomJuly 2014 | 15
Committee UpdatesEDUCATION COMMITTEECHAIRPERSON VACANT
This committee is currently meeting to plan our education seminars for this winter The first round of CE classes to continue holding your Lead Certification is this year We will be offering these classes later this Fall for members renewing Lead Certification in December and again in the Winter for those renewing in April 2015 Regular CE credit classes will be held in January and February If you have any suggestions for presentations or speakers please call the office and talk to Rebekah
Committee ChairpersonsAMBASSADORSGreg Hird First Alliance Credit UnionAWARDSTBABUILDING MAINTENANCETJ Schutz Advanced Building Center IncBUILDING SAFETY ADVISORYMickey Elias Elias Construction LLCCOMMUNITY RELATIONSTony Kunz Hillerrsquos Flooring AmericaDISPUTE RESOLUTIONJohn Kuntz Kuntz Electric IncEDUCATIONVacantEXECUTIVEKevin Worden Rochester Area Habitat for HumanityFASHION SHOWKaren Blissenbach Design Studio BFINANCECarla Kilpatrick Home Federal Savings BankGOLF OUTINGLindsey Rippentrop Olmsted National BankGOVERNMENT AFFAIRSJohn Eckerman The Boldt CompanyGREEN BUILDINGKelly OrsquoMarro XRG Concepts LLCHOME SHOW ndash 2013Jeff Kalmes Hillers Flooring AmericaMARKETINGRob Easthouse Electrical Solutions amp ServiceMEMBERSHIP amp RETENTIONDan Bochman Kruse LumberNOMINATINGKerk Johnson Schwickertrsquos Tecta America LLC PERSONNELKevin Worden Rochester Area Habitat for HumanityPROGRAMDan Plizga Weis Builders IncPUBLIC WORKS ADVISORYJeff Broberg McGhie amp Betts - a Division of WSB amp Associates IncSHOWCASE OF HOMESBrandon Vagt XRG Concepts LLCSPIKE CLUBJay Burke Heartwood Homes of Rochester IncSPORTING CLAYSJames Coyle Kane amp Johnson Architects Inc
CouncilsBER EXECUTIVE COMMITTEEJJ Webster Kraus-Anderson Construction CompanyCBC EXECUTIVE COMMITTEEChris Terry Knutson Construction ServicesDEVELOPMENT COUNCILJohn Sipple Rochester Area Appraisals LLCREMODELERS EXECUTIVE COMMITTEESam Peyton Kingrsquos Flooring LLCREMODELERS TOURKaren Blissenbach Design Studio B
wwwRochesterAreaBuilderscom16 | July 2014
July Summer OutingWednesday July 16th 6 - 8 PM
Wildwood Sports Bar amp Grill1517 16th Street SW Suite C
Program
Cost is $15 per person Seating will be limited More details will be coming soon
RemodelersRemodelersRemodelers
WwwRochesterAreaBuilderscomJuly 2014 | 17
WErsquoRE HERE TO HELP Natural gas is a great energy
value Xcel Energy can help you with all of your energy-related
building needs including natural gas and electric We even off er
rebates for qualifying natural gas appliances Contact us today
and fi nd out how we can help you
Visit xcelenergycomEnergyPartners today
call 1-800-628-2121 or fax 1-800-628-2521
ENERGYVALUEBESTHO
OK UP
with the
copy 2013 Xcel Energy Inc
xcelenergycomEnergyPartners
13-XCL-00255-B_MNB_HookUp(Combo)_73125x475_4c_LOindd 1 5613 321 PM
A special offer formembers onlyRegister now and save 2 on your Lowersquos Accounts Receivable
purchases Plus get free delivery on purchases of $500 or moredagger
To register visit LowesForProscomNAHB or call 877-435-2440
Offer is not automatic See store for detailsOffer valid now through 12312014 Cannot be combined with any other statement discount To be eligible for the 2 discount you must register your NAHB membership by 12312014 and make a purchase with your Lowersquos Accounts Receivable by 12312014 Allow one to two complete billing cycles for your registration to be processed and for your discount to appear on your billing statement Offer and discount provided by Lowersquos and not GE Capital Retail Bank Excludes Lowersquos Business Account Card Lowersquos Consumer Credit Card Lowersquos Visa Accounts Lowersquos Business Rewards from American Express Card and all Lowersquos Canada Credit projects Offer not valid on purchases made prior to registering NAHB membership at LowesForProscom Call 877-435-2440 for questions about this program All purchases subject to credit approval daggerStandard delivery rules apply copy2014 Lowersquos LOWErsquoS Gable Mansard Design are registered trademarks of LF LLC
Lowes_2014 NAHB-HALFPAGEindd 1 112613 1222 PM
wwwRochesterAreaBuilderscom18 | July 2014
2014 VALUATION 2013 VALUATION
New Residential Single Family Dwelling 25 5531411 28 7133572
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 19 107504 56 286615
Room Addition 3 278763 2 82000
Porch Additions 0 0 0 0
Other Additions 0 0 2 43200
Basement Finish 29 342255 27 371975
Alterations 50 516115 47 325798
Multi-Family Addition 0 0 1 810
Multi-Family Alterations 2 113000 16 169000 New Commercial Assembly (Church) 0 0 0 0
Assembly (General) 0 0 0 0
Assembly (RestaurantBar) 1 1561000 1 700000
Business 0 0 1 225000
Education 0 0 0 0
FactoryIndustrial 0 0 0 0
Institution 0 0 0 0
Mercantile 0 0 0 0
Miscelaneous 0 0 0 0
Utility (General) 1 130000 1 3850
Residential (CareAssisted Living) 0 0 0 0
Storage (General) 1 45000 0 0
Storage (Warehouse) 0 0 1 532594 Existing CommercialAddition 8 5812413 1 15406
Alterations 34 5984762 36 34644913
Structural Shell 0 0 0 0
ldquoWhite Boxrdquo 1 15000 0 0
Interior Demolition Only 3 48500 3 16706
Other Phased Permits 0 0 0 0
Other ConstructionBusiness Signs 15 106565 6 15224
Advertising Sign 1 18000 0 0
Footings amp Foundations 2 220000 11
Demolition 3 1
Rochester Building Permits April 2014
January 33 39 27 20 3 13 3 6 19 11
February 31 31 19 13 1 8 8 20 15 14
March 59 37 30 29 16 27 24 32 29 28
April 58 58 44 27 29 25 19 29 39 25
May 77 69 50 30 33 20 14 22 27 35
TOTAL 258 234 172 119 82 93 68 109 129 113
June 81 59 43 36 36 12 26 32 33
July 58 36 60 23 21 23 8 39 39
August 69 36 43 28 26 15 18 38 21
September 65 31 33 28 33 10 19 22 23
October 71 49 34 19 31 14 16 23 34
November 40 38 23 26 30 21 20 22 26
December 60 23 11 16 15 12 16 14 22
TOTAL 702 506 417 302 274 200 191 299 326 113
Single Family Homes
Year To Date Statistics 2014 2013 NO VALUATION NO VALUATION
Building Permits Issued to Date 881 147003028 825 100011030
Single Family Dwelling 109 26968957 130 30405563
Multi-Family Buildings Total Units 39 1 3702052 0 0
Trade Permits Issued to Date 2978 30568713 2326 27697853
Electrical 1050 13657783 878 15240984
Electrical (Temp Service) 103 30950 115 29700
Mechanical 731 6606354 685 6221377
Gas Piping 198 417331 185 141995
Fireplace 163 417589 148 344814
Hydronic System 69 3689975 50 1105942
Plumbing 664 5748731 653 4613041
Total Permits YTD 3859 177571741 3151 127708883
Information and downloads available at Rochester Building Safety Departmentrsquos Website httpwwwrochestermngovdepartmentsbldgsafetyreportsbuildingindexasp
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
total may differ as permits may have been voided
WwwRochesterAreaBuilderscomJuly 2014 | 19
Rochester Real EstateMonthly Housing DataMarch 2014
Monthly Housing Data March 2014 March 2013 Change
New Listings 311 320 -28Active Listings Year to Date
1087 1195 -90
Pending Listing 173 212 -184Sold Listings 128 144 -111Sold Listings Year to Date
312 342 -88
Median Sales Price (SOLD)
158000 153150 30
SOLD Days on Market (DOM)
81 100 -1900
Avg Year to Date (DOM)
86 110 -2182
Information and downloads available at South East Minnesota Association of REALTORSrsquo
Website httpsemnrealtorsorggeneralstats_market-trendshtml
Information Provided By
MARCH 2014
New Residential NUMBER VALUATION
Single Family Detached 8 1263500
New Commercial
Commercial 1 142000
Existing Residential
Deck Addition 15 55113
Basement Finish 1 3600
Alterations 2 5800
Accessory Building 1 5000
ByronBuilding Permits
MARCH 2014
New Residential NUMBER VALUATION
Single Family 3 402000
Existing Residential
Deck Addition 3 15000
Alterations 9 49000
Reroof 10 50000
Existing Commercial
Reroof 2 10000
Pine IslandBuilding Permits
wwwRochesterAreaBuilderscom20 | July 2014
Despite GDP growth stalling in Q1 due to the Polar Vortex slower inventory accumulation and mildly lower exports the economic recovery remains intact The anemic performance of the US economy from January through March was aberrant and the incoming employment manufacturing and consumer spending data all point to an economic pickup GDP growth the rest of the year should average 3 with growth in Q2 closer to 325 as the economy rebounds from the harsh winter In addition reduced fiscal drag from DC increased hiring and spending by state and local governments and increased corporate spending on plant and equipment suggest we are finally entering a period of faster growth
That said economically all is not well Wage growth remains anemic and while the unemployment rate is 63 down from 10 the fall is largely due to a decline in the labor force participation rate The ranks of the long-term unemployed remain elevated along with the number of those working part-time because they canrsquot find full time work Add to that average overtime hours that are remarkably high and termination rates that are very low and what you have are employers very reluctant to hire This situation cannot persist and of late job creation numbers have been on the upswing Therefore net job creation will rise from 200000month where it has been for the past year to 220000 or 225000 by year end and unemployment will probably fall to 61 I expect wage growth to start picking up steam in 2015
The biggest drag on the economy is housing After a promising first half of 2013 the housing market is at best flat While rising interest rates and home prices a lack of inventory and lots shortages of materials and labor and a lack of credit and first-
time buyers play a part weak household formation is the main culprit After averaging over 12 million in the years prior to the Great Recession household formations have been averaging 500000 since the end of the recession The good news - household formation will rise now that all eight million jobs lost during the recession have been finally made up We are no longer making up lost ground Because of this new single-family construction activity in 2014 will reach 700000 with multifamily adding 350000 while existing home sales should be down slightly from last year
As for inflation itrsquos benign No matter how measured there is no inflation to speak of in the US Commodity prices will remain well-behaved given weak demand due to economic slowing in China and weak growth in Europe and the developing nations Absent some sort of geopolitical crisis energy prices will remain where they are thanks to record US oil production As a result expect tapering to end in November and for the Federal Reserve to begin raising short-term interest rates by mid-2015 However long-term rates have bottomed and 10-yr Treasuries will end the year at about 3 as the economy steadily strengthens
In short the economy is improving and Q1 was a speed bump Long term rates will rise short-term rates will remain unchanged and housing will limp into 2015 with prices rising slightly Most critically household formation will strengthen and corporate state and local government spending will rise Lastly the likelihood of a recession during the next six months is virtually zero
Economic Forecast for 2nd Half of 2014 Increasing Momentum Reduced Headwinds
Elliot Eisenberg PhD
Elliot Eisenberg PhD is President of GraphsandLaughs LLC and can be reached at Elliotgraphsandlaughsnet His daily 70 word economics
and policy blog can be seen at wwwecon70com
WwwRochesterAreaBuilderscomJuly 2014 | 21
CUSTOM HOMES BY BRADLEY INCRochester MN 55901Phone 507- 358-8681Contact Brad Goeden
Builder MemberResidential Builder
Sponsored byNone Listed
MEMBERSHIPS PENDINGNONE
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 943
As of 53114
WE WELCOME THE FOLLOWING NEW MEMBERS IN MAY
Membership Information
Membership Renewals as of 53114
One Year
Alpha Video amp Audio 2013GulfEagle Supply 2013
Two to Four Years
The Design Connection 2012Hammer Homes Inc 2011Steel Constructors Inc 2011
Five to Nine Years
Kingrsquos Flooring LLC 2009Turtle Creek Construction Inc 2009The Blue Book of Building amp Construction 2007Bruce Bucknell Construction Inc 2006McGough Construction 2006Schoeppner Inc 2006Cravath Homes LLC dba Accessibility Solutions
2005
Prime Time Painting of Rochester LLC 2005Ten to 19 Years
Elcor Realty of Rochester Inc 2004RJ Manemann Custom Homes 2004DMC Plumbing amp Heating Inc 2003Fairway Outdoor Advertising LLC 2003Innovative Surfaces Inc 2002Design Studio B 2001SL Contracting 1998
25 Years amp More
Hentges Glass Company 1991Larson Siding amp Windows 1986Merit Contracting Inc 1982Sargentrsquos Landscape Nursery Inc 1977CO Brown Agency 1970Holt Title Guaranty Company Inc 1958Palmer Soderberg Inc 1958
NEW APPLICANTS
ULTIMATE SURFACES1233 Eastgate Drive SERochester MN 55904Phone 507- 258-5439Contact Tony Heintz
Associate MemberFabricator
Sponsored bySam Peyton Kingrsquos Flooring LLC
wwwRochesterAreaBuilderscom22 | July 2014
Put your membershipto work nowMoney-saving discounts that benefit yourbusiness your employees and your family
wwwnahborgMA
National Association of Home Builders
R
wwwRochesterAreaBuilderscom8 | July 2014
RAB Golf OutingAssociation Scrapbook
WwwRochesterAreaBuilderscomJuly 2014 | 9
Association ScrapbookRAB Golf Outing
wwwRochesterAreaBuilderscom10 | July 2014
CBC Social EventAssociation Scrapbook
WwwRochesterAreaBuilderscomJuly 2014 | 11
Association ScrapbookCBC Social Event
O
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507-282-7698108 E
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ochester MN
55901bullF 507-282-6351
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ochesterAreaB
uilderscomw
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COMMERCIALBUILDERS COUNCIL
SOCIAL EVENTROCHESTER MINNESOTA
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ETAT
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340281624
CB
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ocial Event P
osterpdfR
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ischen5-16-12
BCDEFGHIJ A
0-1 = 81 5 BEVERAGE SPONSOR N
0-1 = 81 4 EVENT SPONSORS N
0-1 = 81 2 DETAILS N
0-1 = 81 3 RSVP N
0-1 = 81 1 EVENT N
Donrsquot forget to RSVPIf you attend amp did not RSVP we may not have enough food so let us know
Deadline to RSVP is Monday April 14th at 1200 Noon
Phone 507-282-7698 Fax 507-282-6351
Email RABRochesterAreaBuilderscom
3rsquo - 9rdquo
1rsquo -
10rdquo
CBC Social EventWildwood Sports Bar amp Grill
1517 16th St SW Rochester MN 55902Wednesday May 16th 430 ndash 700 PM
Join us at Wildwood Sports Bar amp Grill for our 2nd Annual Commercial Builders Council Social Event Socialize and network with your fellow Members in a relaxed environment Enjoy a free Cajun buffet
and beer thanks to our great sponsors
wwwRochesterAreaBuilderscom12 | July 2014
RAB Golf Outing Review
Gazebo SPONSORCommercial Builders Council
PUTTING CONTEST SPONSORMinnesota Energy Resources
CLOSEST TO THE FLAGThe Builders Group
BREAK THE GLASSMarvin Windows amp Doors
CIGAR CART SPONSORTradesmen International Inc
DRINK CART SPONSORSCarpet OneKnutson Construction Services
TEE amp GREEN SPONSORSABC Supply Company IncBraun Intertec CorporationCO Brown AgencyCambriaCharter BusinessClements Chevrolet Cadillac SubaruData-Smart Computers IncDunlap amp SeegerEnergy Products amp DesignGerhardrsquosHome Federal Savings BankKreofsky Building SuppliesKruse LumberMBT BankMcGhie amp Betts A Div of WSBMcGladreyMerchants BankMinnwest BankOlmsted National BankPost-Bulletin Company LLCProBuild Company LLCPine Island LumberPompeii Painting IncPremier Bank RochesterRochester Title amp Escrow CoSmith Schafer amp AssociatesSomerby Golf CommunityWarnerrsquos Stellian ApplianceWendland UtzWerner Electric SupplyWomen Communications LLCYaggy Colby Associates
APPETIZER SPONSORSCrescent Electric Supply CompanyCRW architecture + design groupOhly Law OfficeViking Electric Supply
CART SPONSORSThe Blue Book of Building amp
ConstructionBrock White CompanyCRW architecture + design groupCustom AlarmCustom
Communications IncEastwood BankFirst Security BankPrimeLendingThompsonrsquos Garage Door and
Openers
Thank You to our wonderful SponsorsGold Tee Sponsor
WwwRochesterAreaBuilderscomJuly 2014 | 13
For this monthrsquos ldquoHey Matt Whatrsquos Up With Thatrdquo we are talking about Subcontractor Registration and sump pumps
ldquoHey Matt whatrsquos up with Subcontractor Registrationrdquo
This legislative session a pilot program by the Department of Labor and Industry (DLI) was codified into law making it binding upon all contractors in Minnesota The program aims to crack down on subcontractors not registering with DLI and claiming independent contractor status to get around some workers compensation laws
The program works like this if a subcontractor is not registered with DLI and does not fulfill the 9 factor test for being an independent contractor DLI fines the general contractor We fought this law during the legislative session and thankfully we received a one-time hall pass That means that the first time that a general contractor hires a subcontractor that is not registered with DLI they will not be fined This is something we fought for when we saw the writing on the wall that this would become law
Going forward subcontractors make sure you are registered with DLI It may affect your ability to work for certain GCs And GCs the onus is on YOU to make sure the subs you hire are registered You can check with DLI on their website using a nifty little search tool RAB will be running our membership list through DLIrsquos registered contractors list and we will be contacting those who arenrsquot registered to give them a friendly reminder
ldquoHey Matt I hear a lot of people talking about Sump Pumps all of a sudden Whatrsquos up with thatrdquo
What a wet spring so far With so much water falling from the sky and soaking the ground its no surprise that sump pumps have become a topic of discussion Recently RAB was reminded by the building safety department of Rochester that if you have a sump basket in a house there must be a discharge line installed and a pump placed in the basket This is a part of the Minnesota state building code The building safety department explained that they are running into a lot of homes with baskets installed that have no discharge line or pump in the basket
We have also heard concerns from some builders that they can put a pump in the sump basket but if it doesnrsquot run for over 6 months it will seize up and not work when needed Homeowners make sure to follow the manufacturerrsquos instructions for maintenance on these sump pumps The most common maintenance step for these pumps is to ocasionally pour water into the sump basket during the winter and let the pump run This is an important step to make sure your basement doesnrsquot become a wading pool
Thanks to the members who sent me these questions for this monthrsquos edition of ldquoHey Whatrsquos up with Thatrdquo As always if you have a question about anything you find interesting or confusing during your work day give me a call or send an email and hopefully I can find out the answer for you
Matt
Oh and one more thing
ldquoHey Matt did you put a ring on itrdquo
Yes itrsquos true Matt proposed to and more importantly was accepted by his now fiance Loryn Meloy Congratualtions to the happy couple
wwwRochesterAreaBuilderscom14 | July 2014
What Wersquore Doing For YouCWGQ Insurance
TBG Insurance
Gov Relations
Legal Action
Education
Online Forums
Action Center
Energy Payback
Visit wwwbamnorg and log-in to the Members Only site for more information on these BAM initiatives
BUILDERSASSOCIATION OF MINNESOTA
T 6516467959T 8006547783W wwwbamnorg
Executive Committee
BAM Update June 2014
The Minnesota Department of Labor and Industry (DLI) has stated they plan to start enforcing the new Minnesota Building Code in January of 2015 They have not yet released the final version of the code so we donrsquot know exactly what will be included However based on what is known the Builders Association of Minnesota (BAM) is working to provide members with code guides with a planned release date near the end of August 2014
BAM has contracted with Ed VonThoma of Building Knowledge Inc and has assembled a group of statewide members to create and vet the following code guide documentsbull Top 20 Code Changes in the Residential Building Codebull Top 20 Code Changes in the Energy Codebull Field Guide to Residential Code bull Field Guide to Energy Code bull Field Guide to Radon bull Field Guide to Foundation Wall Support bull Field Guide to Residential Fire Sprinklers
These guides are a major benefit of membership and available ONLY to members DLI issues the codes but BAM is the organization that develops guides on how to implement the new codes BAM will be providing members with access to each of these seven documents The documents will be available on the BAM website and optimized for both printing and easy viewing on your mobile devices out in the field These guides will form the basis for continuing education courses and BKI will be available to teach classes around the state to help members prepare to build to the new code
If you have industry peers that will benefit from having these guides tell them to join your local builders association and enjoy 3-in-1 membership to access BAMrsquos field guides and other value added benefits such as our home builidng industry specific construction contracts
Thank you to BAM members who are genersouly donating their time to help perfect the members-only guides Thank you to Daniel Buuck Clay Dietrich Jon Coty George Cundy Terry Hammack Chad Kompelien Keith Kylmala Kevin Maleska John McGuine Trace Mills Monte Mraz Kathe Ostrom Mike Paradise Craig Plekkenpol Joe Ranweiler David Werschay and Howie Zetah
We will keep you updated on news from DLI about the new codes timeline BAM will be releasing the field guides starting with the ldquoTop 20rdquo Residential and Energy Codes Field Guides at the end of the summer with the remainder released far in advance of the January 24 2015 code enforcement date
President Chad Kompelein
Builder VPKC Chermak
Associate VPGeorge Cundy
President ElectMike Paradise
TreasurerGerry Traut
SecretaryKurt Welker
Past PresidentKeith Kylmala
NAHB RepresentativeKathe Ostrom
WwwRochesterAreaBuilderscomJuly 2014 | 15
Committee UpdatesEDUCATION COMMITTEECHAIRPERSON VACANT
This committee is currently meeting to plan our education seminars for this winter The first round of CE classes to continue holding your Lead Certification is this year We will be offering these classes later this Fall for members renewing Lead Certification in December and again in the Winter for those renewing in April 2015 Regular CE credit classes will be held in January and February If you have any suggestions for presentations or speakers please call the office and talk to Rebekah
Committee ChairpersonsAMBASSADORSGreg Hird First Alliance Credit UnionAWARDSTBABUILDING MAINTENANCETJ Schutz Advanced Building Center IncBUILDING SAFETY ADVISORYMickey Elias Elias Construction LLCCOMMUNITY RELATIONSTony Kunz Hillerrsquos Flooring AmericaDISPUTE RESOLUTIONJohn Kuntz Kuntz Electric IncEDUCATIONVacantEXECUTIVEKevin Worden Rochester Area Habitat for HumanityFASHION SHOWKaren Blissenbach Design Studio BFINANCECarla Kilpatrick Home Federal Savings BankGOLF OUTINGLindsey Rippentrop Olmsted National BankGOVERNMENT AFFAIRSJohn Eckerman The Boldt CompanyGREEN BUILDINGKelly OrsquoMarro XRG Concepts LLCHOME SHOW ndash 2013Jeff Kalmes Hillers Flooring AmericaMARKETINGRob Easthouse Electrical Solutions amp ServiceMEMBERSHIP amp RETENTIONDan Bochman Kruse LumberNOMINATINGKerk Johnson Schwickertrsquos Tecta America LLC PERSONNELKevin Worden Rochester Area Habitat for HumanityPROGRAMDan Plizga Weis Builders IncPUBLIC WORKS ADVISORYJeff Broberg McGhie amp Betts - a Division of WSB amp Associates IncSHOWCASE OF HOMESBrandon Vagt XRG Concepts LLCSPIKE CLUBJay Burke Heartwood Homes of Rochester IncSPORTING CLAYSJames Coyle Kane amp Johnson Architects Inc
CouncilsBER EXECUTIVE COMMITTEEJJ Webster Kraus-Anderson Construction CompanyCBC EXECUTIVE COMMITTEEChris Terry Knutson Construction ServicesDEVELOPMENT COUNCILJohn Sipple Rochester Area Appraisals LLCREMODELERS EXECUTIVE COMMITTEESam Peyton Kingrsquos Flooring LLCREMODELERS TOURKaren Blissenbach Design Studio B
wwwRochesterAreaBuilderscom16 | July 2014
July Summer OutingWednesday July 16th 6 - 8 PM
Wildwood Sports Bar amp Grill1517 16th Street SW Suite C
Program
Cost is $15 per person Seating will be limited More details will be coming soon
RemodelersRemodelersRemodelers
WwwRochesterAreaBuilderscomJuly 2014 | 17
WErsquoRE HERE TO HELP Natural gas is a great energy
value Xcel Energy can help you with all of your energy-related
building needs including natural gas and electric We even off er
rebates for qualifying natural gas appliances Contact us today
and fi nd out how we can help you
Visit xcelenergycomEnergyPartners today
call 1-800-628-2121 or fax 1-800-628-2521
ENERGYVALUEBESTHO
OK UP
with the
copy 2013 Xcel Energy Inc
xcelenergycomEnergyPartners
13-XCL-00255-B_MNB_HookUp(Combo)_73125x475_4c_LOindd 1 5613 321 PM
A special offer formembers onlyRegister now and save 2 on your Lowersquos Accounts Receivable
purchases Plus get free delivery on purchases of $500 or moredagger
To register visit LowesForProscomNAHB or call 877-435-2440
Offer is not automatic See store for detailsOffer valid now through 12312014 Cannot be combined with any other statement discount To be eligible for the 2 discount you must register your NAHB membership by 12312014 and make a purchase with your Lowersquos Accounts Receivable by 12312014 Allow one to two complete billing cycles for your registration to be processed and for your discount to appear on your billing statement Offer and discount provided by Lowersquos and not GE Capital Retail Bank Excludes Lowersquos Business Account Card Lowersquos Consumer Credit Card Lowersquos Visa Accounts Lowersquos Business Rewards from American Express Card and all Lowersquos Canada Credit projects Offer not valid on purchases made prior to registering NAHB membership at LowesForProscom Call 877-435-2440 for questions about this program All purchases subject to credit approval daggerStandard delivery rules apply copy2014 Lowersquos LOWErsquoS Gable Mansard Design are registered trademarks of LF LLC
Lowes_2014 NAHB-HALFPAGEindd 1 112613 1222 PM
wwwRochesterAreaBuilderscom18 | July 2014
2014 VALUATION 2013 VALUATION
New Residential Single Family Dwelling 25 5531411 28 7133572
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 19 107504 56 286615
Room Addition 3 278763 2 82000
Porch Additions 0 0 0 0
Other Additions 0 0 2 43200
Basement Finish 29 342255 27 371975
Alterations 50 516115 47 325798
Multi-Family Addition 0 0 1 810
Multi-Family Alterations 2 113000 16 169000 New Commercial Assembly (Church) 0 0 0 0
Assembly (General) 0 0 0 0
Assembly (RestaurantBar) 1 1561000 1 700000
Business 0 0 1 225000
Education 0 0 0 0
FactoryIndustrial 0 0 0 0
Institution 0 0 0 0
Mercantile 0 0 0 0
Miscelaneous 0 0 0 0
Utility (General) 1 130000 1 3850
Residential (CareAssisted Living) 0 0 0 0
Storage (General) 1 45000 0 0
Storage (Warehouse) 0 0 1 532594 Existing CommercialAddition 8 5812413 1 15406
Alterations 34 5984762 36 34644913
Structural Shell 0 0 0 0
ldquoWhite Boxrdquo 1 15000 0 0
Interior Demolition Only 3 48500 3 16706
Other Phased Permits 0 0 0 0
Other ConstructionBusiness Signs 15 106565 6 15224
Advertising Sign 1 18000 0 0
Footings amp Foundations 2 220000 11
Demolition 3 1
Rochester Building Permits April 2014
January 33 39 27 20 3 13 3 6 19 11
February 31 31 19 13 1 8 8 20 15 14
March 59 37 30 29 16 27 24 32 29 28
April 58 58 44 27 29 25 19 29 39 25
May 77 69 50 30 33 20 14 22 27 35
TOTAL 258 234 172 119 82 93 68 109 129 113
June 81 59 43 36 36 12 26 32 33
July 58 36 60 23 21 23 8 39 39
August 69 36 43 28 26 15 18 38 21
September 65 31 33 28 33 10 19 22 23
October 71 49 34 19 31 14 16 23 34
November 40 38 23 26 30 21 20 22 26
December 60 23 11 16 15 12 16 14 22
TOTAL 702 506 417 302 274 200 191 299 326 113
Single Family Homes
Year To Date Statistics 2014 2013 NO VALUATION NO VALUATION
Building Permits Issued to Date 881 147003028 825 100011030
Single Family Dwelling 109 26968957 130 30405563
Multi-Family Buildings Total Units 39 1 3702052 0 0
Trade Permits Issued to Date 2978 30568713 2326 27697853
Electrical 1050 13657783 878 15240984
Electrical (Temp Service) 103 30950 115 29700
Mechanical 731 6606354 685 6221377
Gas Piping 198 417331 185 141995
Fireplace 163 417589 148 344814
Hydronic System 69 3689975 50 1105942
Plumbing 664 5748731 653 4613041
Total Permits YTD 3859 177571741 3151 127708883
Information and downloads available at Rochester Building Safety Departmentrsquos Website httpwwwrochestermngovdepartmentsbldgsafetyreportsbuildingindexasp
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
total may differ as permits may have been voided
WwwRochesterAreaBuilderscomJuly 2014 | 19
Rochester Real EstateMonthly Housing DataMarch 2014
Monthly Housing Data March 2014 March 2013 Change
New Listings 311 320 -28Active Listings Year to Date
1087 1195 -90
Pending Listing 173 212 -184Sold Listings 128 144 -111Sold Listings Year to Date
312 342 -88
Median Sales Price (SOLD)
158000 153150 30
SOLD Days on Market (DOM)
81 100 -1900
Avg Year to Date (DOM)
86 110 -2182
Information and downloads available at South East Minnesota Association of REALTORSrsquo
Website httpsemnrealtorsorggeneralstats_market-trendshtml
Information Provided By
MARCH 2014
New Residential NUMBER VALUATION
Single Family Detached 8 1263500
New Commercial
Commercial 1 142000
Existing Residential
Deck Addition 15 55113
Basement Finish 1 3600
Alterations 2 5800
Accessory Building 1 5000
ByronBuilding Permits
MARCH 2014
New Residential NUMBER VALUATION
Single Family 3 402000
Existing Residential
Deck Addition 3 15000
Alterations 9 49000
Reroof 10 50000
Existing Commercial
Reroof 2 10000
Pine IslandBuilding Permits
wwwRochesterAreaBuilderscom20 | July 2014
Despite GDP growth stalling in Q1 due to the Polar Vortex slower inventory accumulation and mildly lower exports the economic recovery remains intact The anemic performance of the US economy from January through March was aberrant and the incoming employment manufacturing and consumer spending data all point to an economic pickup GDP growth the rest of the year should average 3 with growth in Q2 closer to 325 as the economy rebounds from the harsh winter In addition reduced fiscal drag from DC increased hiring and spending by state and local governments and increased corporate spending on plant and equipment suggest we are finally entering a period of faster growth
That said economically all is not well Wage growth remains anemic and while the unemployment rate is 63 down from 10 the fall is largely due to a decline in the labor force participation rate The ranks of the long-term unemployed remain elevated along with the number of those working part-time because they canrsquot find full time work Add to that average overtime hours that are remarkably high and termination rates that are very low and what you have are employers very reluctant to hire This situation cannot persist and of late job creation numbers have been on the upswing Therefore net job creation will rise from 200000month where it has been for the past year to 220000 or 225000 by year end and unemployment will probably fall to 61 I expect wage growth to start picking up steam in 2015
The biggest drag on the economy is housing After a promising first half of 2013 the housing market is at best flat While rising interest rates and home prices a lack of inventory and lots shortages of materials and labor and a lack of credit and first-
time buyers play a part weak household formation is the main culprit After averaging over 12 million in the years prior to the Great Recession household formations have been averaging 500000 since the end of the recession The good news - household formation will rise now that all eight million jobs lost during the recession have been finally made up We are no longer making up lost ground Because of this new single-family construction activity in 2014 will reach 700000 with multifamily adding 350000 while existing home sales should be down slightly from last year
As for inflation itrsquos benign No matter how measured there is no inflation to speak of in the US Commodity prices will remain well-behaved given weak demand due to economic slowing in China and weak growth in Europe and the developing nations Absent some sort of geopolitical crisis energy prices will remain where they are thanks to record US oil production As a result expect tapering to end in November and for the Federal Reserve to begin raising short-term interest rates by mid-2015 However long-term rates have bottomed and 10-yr Treasuries will end the year at about 3 as the economy steadily strengthens
In short the economy is improving and Q1 was a speed bump Long term rates will rise short-term rates will remain unchanged and housing will limp into 2015 with prices rising slightly Most critically household formation will strengthen and corporate state and local government spending will rise Lastly the likelihood of a recession during the next six months is virtually zero
Economic Forecast for 2nd Half of 2014 Increasing Momentum Reduced Headwinds
Elliot Eisenberg PhD
Elliot Eisenberg PhD is President of GraphsandLaughs LLC and can be reached at Elliotgraphsandlaughsnet His daily 70 word economics
and policy blog can be seen at wwwecon70com
WwwRochesterAreaBuilderscomJuly 2014 | 21
CUSTOM HOMES BY BRADLEY INCRochester MN 55901Phone 507- 358-8681Contact Brad Goeden
Builder MemberResidential Builder
Sponsored byNone Listed
MEMBERSHIPS PENDINGNONE
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 943
As of 53114
WE WELCOME THE FOLLOWING NEW MEMBERS IN MAY
Membership Information
Membership Renewals as of 53114
One Year
Alpha Video amp Audio 2013GulfEagle Supply 2013
Two to Four Years
The Design Connection 2012Hammer Homes Inc 2011Steel Constructors Inc 2011
Five to Nine Years
Kingrsquos Flooring LLC 2009Turtle Creek Construction Inc 2009The Blue Book of Building amp Construction 2007Bruce Bucknell Construction Inc 2006McGough Construction 2006Schoeppner Inc 2006Cravath Homes LLC dba Accessibility Solutions
2005
Prime Time Painting of Rochester LLC 2005Ten to 19 Years
Elcor Realty of Rochester Inc 2004RJ Manemann Custom Homes 2004DMC Plumbing amp Heating Inc 2003Fairway Outdoor Advertising LLC 2003Innovative Surfaces Inc 2002Design Studio B 2001SL Contracting 1998
25 Years amp More
Hentges Glass Company 1991Larson Siding amp Windows 1986Merit Contracting Inc 1982Sargentrsquos Landscape Nursery Inc 1977CO Brown Agency 1970Holt Title Guaranty Company Inc 1958Palmer Soderberg Inc 1958
NEW APPLICANTS
ULTIMATE SURFACES1233 Eastgate Drive SERochester MN 55904Phone 507- 258-5439Contact Tony Heintz
Associate MemberFabricator
Sponsored bySam Peyton Kingrsquos Flooring LLC
wwwRochesterAreaBuilderscom22 | July 2014
Put your membershipto work nowMoney-saving discounts that benefit yourbusiness your employees and your family
wwwnahborgMA
National Association of Home Builders
R
WwwRochesterAreaBuilderscomJuly 2014 | 9
Association ScrapbookRAB Golf Outing
wwwRochesterAreaBuilderscom10 | July 2014
CBC Social EventAssociation Scrapbook
WwwRochesterAreaBuilderscomJuly 2014 | 11
Association ScrapbookCBC Social Event
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ochester MN
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uilderscomw
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BCDEFGHIJ A
0-1 = 81 5 BEVERAGE SPONSOR N
0-1 = 81 4 EVENT SPONSORS N
0-1 = 81 2 DETAILS N
0-1 = 81 3 RSVP N
0-1 = 81 1 EVENT N
Donrsquot forget to RSVPIf you attend amp did not RSVP we may not have enough food so let us know
Deadline to RSVP is Monday April 14th at 1200 Noon
Phone 507-282-7698 Fax 507-282-6351
Email RABRochesterAreaBuilderscom
3rsquo - 9rdquo
1rsquo -
10rdquo
CBC Social EventWildwood Sports Bar amp Grill
1517 16th St SW Rochester MN 55902Wednesday May 16th 430 ndash 700 PM
Join us at Wildwood Sports Bar amp Grill for our 2nd Annual Commercial Builders Council Social Event Socialize and network with your fellow Members in a relaxed environment Enjoy a free Cajun buffet
and beer thanks to our great sponsors
wwwRochesterAreaBuilderscom12 | July 2014
RAB Golf Outing Review
Gazebo SPONSORCommercial Builders Council
PUTTING CONTEST SPONSORMinnesota Energy Resources
CLOSEST TO THE FLAGThe Builders Group
BREAK THE GLASSMarvin Windows amp Doors
CIGAR CART SPONSORTradesmen International Inc
DRINK CART SPONSORSCarpet OneKnutson Construction Services
TEE amp GREEN SPONSORSABC Supply Company IncBraun Intertec CorporationCO Brown AgencyCambriaCharter BusinessClements Chevrolet Cadillac SubaruData-Smart Computers IncDunlap amp SeegerEnergy Products amp DesignGerhardrsquosHome Federal Savings BankKreofsky Building SuppliesKruse LumberMBT BankMcGhie amp Betts A Div of WSBMcGladreyMerchants BankMinnwest BankOlmsted National BankPost-Bulletin Company LLCProBuild Company LLCPine Island LumberPompeii Painting IncPremier Bank RochesterRochester Title amp Escrow CoSmith Schafer amp AssociatesSomerby Golf CommunityWarnerrsquos Stellian ApplianceWendland UtzWerner Electric SupplyWomen Communications LLCYaggy Colby Associates
APPETIZER SPONSORSCrescent Electric Supply CompanyCRW architecture + design groupOhly Law OfficeViking Electric Supply
CART SPONSORSThe Blue Book of Building amp
ConstructionBrock White CompanyCRW architecture + design groupCustom AlarmCustom
Communications IncEastwood BankFirst Security BankPrimeLendingThompsonrsquos Garage Door and
Openers
Thank You to our wonderful SponsorsGold Tee Sponsor
WwwRochesterAreaBuilderscomJuly 2014 | 13
For this monthrsquos ldquoHey Matt Whatrsquos Up With Thatrdquo we are talking about Subcontractor Registration and sump pumps
ldquoHey Matt whatrsquos up with Subcontractor Registrationrdquo
This legislative session a pilot program by the Department of Labor and Industry (DLI) was codified into law making it binding upon all contractors in Minnesota The program aims to crack down on subcontractors not registering with DLI and claiming independent contractor status to get around some workers compensation laws
The program works like this if a subcontractor is not registered with DLI and does not fulfill the 9 factor test for being an independent contractor DLI fines the general contractor We fought this law during the legislative session and thankfully we received a one-time hall pass That means that the first time that a general contractor hires a subcontractor that is not registered with DLI they will not be fined This is something we fought for when we saw the writing on the wall that this would become law
Going forward subcontractors make sure you are registered with DLI It may affect your ability to work for certain GCs And GCs the onus is on YOU to make sure the subs you hire are registered You can check with DLI on their website using a nifty little search tool RAB will be running our membership list through DLIrsquos registered contractors list and we will be contacting those who arenrsquot registered to give them a friendly reminder
ldquoHey Matt I hear a lot of people talking about Sump Pumps all of a sudden Whatrsquos up with thatrdquo
What a wet spring so far With so much water falling from the sky and soaking the ground its no surprise that sump pumps have become a topic of discussion Recently RAB was reminded by the building safety department of Rochester that if you have a sump basket in a house there must be a discharge line installed and a pump placed in the basket This is a part of the Minnesota state building code The building safety department explained that they are running into a lot of homes with baskets installed that have no discharge line or pump in the basket
We have also heard concerns from some builders that they can put a pump in the sump basket but if it doesnrsquot run for over 6 months it will seize up and not work when needed Homeowners make sure to follow the manufacturerrsquos instructions for maintenance on these sump pumps The most common maintenance step for these pumps is to ocasionally pour water into the sump basket during the winter and let the pump run This is an important step to make sure your basement doesnrsquot become a wading pool
Thanks to the members who sent me these questions for this monthrsquos edition of ldquoHey Whatrsquos up with Thatrdquo As always if you have a question about anything you find interesting or confusing during your work day give me a call or send an email and hopefully I can find out the answer for you
Matt
Oh and one more thing
ldquoHey Matt did you put a ring on itrdquo
Yes itrsquos true Matt proposed to and more importantly was accepted by his now fiance Loryn Meloy Congratualtions to the happy couple
wwwRochesterAreaBuilderscom14 | July 2014
What Wersquore Doing For YouCWGQ Insurance
TBG Insurance
Gov Relations
Legal Action
Education
Online Forums
Action Center
Energy Payback
Visit wwwbamnorg and log-in to the Members Only site for more information on these BAM initiatives
BUILDERSASSOCIATION OF MINNESOTA
T 6516467959T 8006547783W wwwbamnorg
Executive Committee
BAM Update June 2014
The Minnesota Department of Labor and Industry (DLI) has stated they plan to start enforcing the new Minnesota Building Code in January of 2015 They have not yet released the final version of the code so we donrsquot know exactly what will be included However based on what is known the Builders Association of Minnesota (BAM) is working to provide members with code guides with a planned release date near the end of August 2014
BAM has contracted with Ed VonThoma of Building Knowledge Inc and has assembled a group of statewide members to create and vet the following code guide documentsbull Top 20 Code Changes in the Residential Building Codebull Top 20 Code Changes in the Energy Codebull Field Guide to Residential Code bull Field Guide to Energy Code bull Field Guide to Radon bull Field Guide to Foundation Wall Support bull Field Guide to Residential Fire Sprinklers
These guides are a major benefit of membership and available ONLY to members DLI issues the codes but BAM is the organization that develops guides on how to implement the new codes BAM will be providing members with access to each of these seven documents The documents will be available on the BAM website and optimized for both printing and easy viewing on your mobile devices out in the field These guides will form the basis for continuing education courses and BKI will be available to teach classes around the state to help members prepare to build to the new code
If you have industry peers that will benefit from having these guides tell them to join your local builders association and enjoy 3-in-1 membership to access BAMrsquos field guides and other value added benefits such as our home builidng industry specific construction contracts
Thank you to BAM members who are genersouly donating their time to help perfect the members-only guides Thank you to Daniel Buuck Clay Dietrich Jon Coty George Cundy Terry Hammack Chad Kompelien Keith Kylmala Kevin Maleska John McGuine Trace Mills Monte Mraz Kathe Ostrom Mike Paradise Craig Plekkenpol Joe Ranweiler David Werschay and Howie Zetah
We will keep you updated on news from DLI about the new codes timeline BAM will be releasing the field guides starting with the ldquoTop 20rdquo Residential and Energy Codes Field Guides at the end of the summer with the remainder released far in advance of the January 24 2015 code enforcement date
President Chad Kompelein
Builder VPKC Chermak
Associate VPGeorge Cundy
President ElectMike Paradise
TreasurerGerry Traut
SecretaryKurt Welker
Past PresidentKeith Kylmala
NAHB RepresentativeKathe Ostrom
WwwRochesterAreaBuilderscomJuly 2014 | 15
Committee UpdatesEDUCATION COMMITTEECHAIRPERSON VACANT
This committee is currently meeting to plan our education seminars for this winter The first round of CE classes to continue holding your Lead Certification is this year We will be offering these classes later this Fall for members renewing Lead Certification in December and again in the Winter for those renewing in April 2015 Regular CE credit classes will be held in January and February If you have any suggestions for presentations or speakers please call the office and talk to Rebekah
Committee ChairpersonsAMBASSADORSGreg Hird First Alliance Credit UnionAWARDSTBABUILDING MAINTENANCETJ Schutz Advanced Building Center IncBUILDING SAFETY ADVISORYMickey Elias Elias Construction LLCCOMMUNITY RELATIONSTony Kunz Hillerrsquos Flooring AmericaDISPUTE RESOLUTIONJohn Kuntz Kuntz Electric IncEDUCATIONVacantEXECUTIVEKevin Worden Rochester Area Habitat for HumanityFASHION SHOWKaren Blissenbach Design Studio BFINANCECarla Kilpatrick Home Federal Savings BankGOLF OUTINGLindsey Rippentrop Olmsted National BankGOVERNMENT AFFAIRSJohn Eckerman The Boldt CompanyGREEN BUILDINGKelly OrsquoMarro XRG Concepts LLCHOME SHOW ndash 2013Jeff Kalmes Hillers Flooring AmericaMARKETINGRob Easthouse Electrical Solutions amp ServiceMEMBERSHIP amp RETENTIONDan Bochman Kruse LumberNOMINATINGKerk Johnson Schwickertrsquos Tecta America LLC PERSONNELKevin Worden Rochester Area Habitat for HumanityPROGRAMDan Plizga Weis Builders IncPUBLIC WORKS ADVISORYJeff Broberg McGhie amp Betts - a Division of WSB amp Associates IncSHOWCASE OF HOMESBrandon Vagt XRG Concepts LLCSPIKE CLUBJay Burke Heartwood Homes of Rochester IncSPORTING CLAYSJames Coyle Kane amp Johnson Architects Inc
CouncilsBER EXECUTIVE COMMITTEEJJ Webster Kraus-Anderson Construction CompanyCBC EXECUTIVE COMMITTEEChris Terry Knutson Construction ServicesDEVELOPMENT COUNCILJohn Sipple Rochester Area Appraisals LLCREMODELERS EXECUTIVE COMMITTEESam Peyton Kingrsquos Flooring LLCREMODELERS TOURKaren Blissenbach Design Studio B
wwwRochesterAreaBuilderscom16 | July 2014
July Summer OutingWednesday July 16th 6 - 8 PM
Wildwood Sports Bar amp Grill1517 16th Street SW Suite C
Program
Cost is $15 per person Seating will be limited More details will be coming soon
RemodelersRemodelersRemodelers
WwwRochesterAreaBuilderscomJuly 2014 | 17
WErsquoRE HERE TO HELP Natural gas is a great energy
value Xcel Energy can help you with all of your energy-related
building needs including natural gas and electric We even off er
rebates for qualifying natural gas appliances Contact us today
and fi nd out how we can help you
Visit xcelenergycomEnergyPartners today
call 1-800-628-2121 or fax 1-800-628-2521
ENERGYVALUEBESTHO
OK UP
with the
copy 2013 Xcel Energy Inc
xcelenergycomEnergyPartners
13-XCL-00255-B_MNB_HookUp(Combo)_73125x475_4c_LOindd 1 5613 321 PM
A special offer formembers onlyRegister now and save 2 on your Lowersquos Accounts Receivable
purchases Plus get free delivery on purchases of $500 or moredagger
To register visit LowesForProscomNAHB or call 877-435-2440
Offer is not automatic See store for detailsOffer valid now through 12312014 Cannot be combined with any other statement discount To be eligible for the 2 discount you must register your NAHB membership by 12312014 and make a purchase with your Lowersquos Accounts Receivable by 12312014 Allow one to two complete billing cycles for your registration to be processed and for your discount to appear on your billing statement Offer and discount provided by Lowersquos and not GE Capital Retail Bank Excludes Lowersquos Business Account Card Lowersquos Consumer Credit Card Lowersquos Visa Accounts Lowersquos Business Rewards from American Express Card and all Lowersquos Canada Credit projects Offer not valid on purchases made prior to registering NAHB membership at LowesForProscom Call 877-435-2440 for questions about this program All purchases subject to credit approval daggerStandard delivery rules apply copy2014 Lowersquos LOWErsquoS Gable Mansard Design are registered trademarks of LF LLC
Lowes_2014 NAHB-HALFPAGEindd 1 112613 1222 PM
wwwRochesterAreaBuilderscom18 | July 2014
2014 VALUATION 2013 VALUATION
New Residential Single Family Dwelling 25 5531411 28 7133572
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 19 107504 56 286615
Room Addition 3 278763 2 82000
Porch Additions 0 0 0 0
Other Additions 0 0 2 43200
Basement Finish 29 342255 27 371975
Alterations 50 516115 47 325798
Multi-Family Addition 0 0 1 810
Multi-Family Alterations 2 113000 16 169000 New Commercial Assembly (Church) 0 0 0 0
Assembly (General) 0 0 0 0
Assembly (RestaurantBar) 1 1561000 1 700000
Business 0 0 1 225000
Education 0 0 0 0
FactoryIndustrial 0 0 0 0
Institution 0 0 0 0
Mercantile 0 0 0 0
Miscelaneous 0 0 0 0
Utility (General) 1 130000 1 3850
Residential (CareAssisted Living) 0 0 0 0
Storage (General) 1 45000 0 0
Storage (Warehouse) 0 0 1 532594 Existing CommercialAddition 8 5812413 1 15406
Alterations 34 5984762 36 34644913
Structural Shell 0 0 0 0
ldquoWhite Boxrdquo 1 15000 0 0
Interior Demolition Only 3 48500 3 16706
Other Phased Permits 0 0 0 0
Other ConstructionBusiness Signs 15 106565 6 15224
Advertising Sign 1 18000 0 0
Footings amp Foundations 2 220000 11
Demolition 3 1
Rochester Building Permits April 2014
January 33 39 27 20 3 13 3 6 19 11
February 31 31 19 13 1 8 8 20 15 14
March 59 37 30 29 16 27 24 32 29 28
April 58 58 44 27 29 25 19 29 39 25
May 77 69 50 30 33 20 14 22 27 35
TOTAL 258 234 172 119 82 93 68 109 129 113
June 81 59 43 36 36 12 26 32 33
July 58 36 60 23 21 23 8 39 39
August 69 36 43 28 26 15 18 38 21
September 65 31 33 28 33 10 19 22 23
October 71 49 34 19 31 14 16 23 34
November 40 38 23 26 30 21 20 22 26
December 60 23 11 16 15 12 16 14 22
TOTAL 702 506 417 302 274 200 191 299 326 113
Single Family Homes
Year To Date Statistics 2014 2013 NO VALUATION NO VALUATION
Building Permits Issued to Date 881 147003028 825 100011030
Single Family Dwelling 109 26968957 130 30405563
Multi-Family Buildings Total Units 39 1 3702052 0 0
Trade Permits Issued to Date 2978 30568713 2326 27697853
Electrical 1050 13657783 878 15240984
Electrical (Temp Service) 103 30950 115 29700
Mechanical 731 6606354 685 6221377
Gas Piping 198 417331 185 141995
Fireplace 163 417589 148 344814
Hydronic System 69 3689975 50 1105942
Plumbing 664 5748731 653 4613041
Total Permits YTD 3859 177571741 3151 127708883
Information and downloads available at Rochester Building Safety Departmentrsquos Website httpwwwrochestermngovdepartmentsbldgsafetyreportsbuildingindexasp
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
total may differ as permits may have been voided
WwwRochesterAreaBuilderscomJuly 2014 | 19
Rochester Real EstateMonthly Housing DataMarch 2014
Monthly Housing Data March 2014 March 2013 Change
New Listings 311 320 -28Active Listings Year to Date
1087 1195 -90
Pending Listing 173 212 -184Sold Listings 128 144 -111Sold Listings Year to Date
312 342 -88
Median Sales Price (SOLD)
158000 153150 30
SOLD Days on Market (DOM)
81 100 -1900
Avg Year to Date (DOM)
86 110 -2182
Information and downloads available at South East Minnesota Association of REALTORSrsquo
Website httpsemnrealtorsorggeneralstats_market-trendshtml
Information Provided By
MARCH 2014
New Residential NUMBER VALUATION
Single Family Detached 8 1263500
New Commercial
Commercial 1 142000
Existing Residential
Deck Addition 15 55113
Basement Finish 1 3600
Alterations 2 5800
Accessory Building 1 5000
ByronBuilding Permits
MARCH 2014
New Residential NUMBER VALUATION
Single Family 3 402000
Existing Residential
Deck Addition 3 15000
Alterations 9 49000
Reroof 10 50000
Existing Commercial
Reroof 2 10000
Pine IslandBuilding Permits
wwwRochesterAreaBuilderscom20 | July 2014
Despite GDP growth stalling in Q1 due to the Polar Vortex slower inventory accumulation and mildly lower exports the economic recovery remains intact The anemic performance of the US economy from January through March was aberrant and the incoming employment manufacturing and consumer spending data all point to an economic pickup GDP growth the rest of the year should average 3 with growth in Q2 closer to 325 as the economy rebounds from the harsh winter In addition reduced fiscal drag from DC increased hiring and spending by state and local governments and increased corporate spending on plant and equipment suggest we are finally entering a period of faster growth
That said economically all is not well Wage growth remains anemic and while the unemployment rate is 63 down from 10 the fall is largely due to a decline in the labor force participation rate The ranks of the long-term unemployed remain elevated along with the number of those working part-time because they canrsquot find full time work Add to that average overtime hours that are remarkably high and termination rates that are very low and what you have are employers very reluctant to hire This situation cannot persist and of late job creation numbers have been on the upswing Therefore net job creation will rise from 200000month where it has been for the past year to 220000 or 225000 by year end and unemployment will probably fall to 61 I expect wage growth to start picking up steam in 2015
The biggest drag on the economy is housing After a promising first half of 2013 the housing market is at best flat While rising interest rates and home prices a lack of inventory and lots shortages of materials and labor and a lack of credit and first-
time buyers play a part weak household formation is the main culprit After averaging over 12 million in the years prior to the Great Recession household formations have been averaging 500000 since the end of the recession The good news - household formation will rise now that all eight million jobs lost during the recession have been finally made up We are no longer making up lost ground Because of this new single-family construction activity in 2014 will reach 700000 with multifamily adding 350000 while existing home sales should be down slightly from last year
As for inflation itrsquos benign No matter how measured there is no inflation to speak of in the US Commodity prices will remain well-behaved given weak demand due to economic slowing in China and weak growth in Europe and the developing nations Absent some sort of geopolitical crisis energy prices will remain where they are thanks to record US oil production As a result expect tapering to end in November and for the Federal Reserve to begin raising short-term interest rates by mid-2015 However long-term rates have bottomed and 10-yr Treasuries will end the year at about 3 as the economy steadily strengthens
In short the economy is improving and Q1 was a speed bump Long term rates will rise short-term rates will remain unchanged and housing will limp into 2015 with prices rising slightly Most critically household formation will strengthen and corporate state and local government spending will rise Lastly the likelihood of a recession during the next six months is virtually zero
Economic Forecast for 2nd Half of 2014 Increasing Momentum Reduced Headwinds
Elliot Eisenberg PhD
Elliot Eisenberg PhD is President of GraphsandLaughs LLC and can be reached at Elliotgraphsandlaughsnet His daily 70 word economics
and policy blog can be seen at wwwecon70com
WwwRochesterAreaBuilderscomJuly 2014 | 21
CUSTOM HOMES BY BRADLEY INCRochester MN 55901Phone 507- 358-8681Contact Brad Goeden
Builder MemberResidential Builder
Sponsored byNone Listed
MEMBERSHIPS PENDINGNONE
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 943
As of 53114
WE WELCOME THE FOLLOWING NEW MEMBERS IN MAY
Membership Information
Membership Renewals as of 53114
One Year
Alpha Video amp Audio 2013GulfEagle Supply 2013
Two to Four Years
The Design Connection 2012Hammer Homes Inc 2011Steel Constructors Inc 2011
Five to Nine Years
Kingrsquos Flooring LLC 2009Turtle Creek Construction Inc 2009The Blue Book of Building amp Construction 2007Bruce Bucknell Construction Inc 2006McGough Construction 2006Schoeppner Inc 2006Cravath Homes LLC dba Accessibility Solutions
2005
Prime Time Painting of Rochester LLC 2005Ten to 19 Years
Elcor Realty of Rochester Inc 2004RJ Manemann Custom Homes 2004DMC Plumbing amp Heating Inc 2003Fairway Outdoor Advertising LLC 2003Innovative Surfaces Inc 2002Design Studio B 2001SL Contracting 1998
25 Years amp More
Hentges Glass Company 1991Larson Siding amp Windows 1986Merit Contracting Inc 1982Sargentrsquos Landscape Nursery Inc 1977CO Brown Agency 1970Holt Title Guaranty Company Inc 1958Palmer Soderberg Inc 1958
NEW APPLICANTS
ULTIMATE SURFACES1233 Eastgate Drive SERochester MN 55904Phone 507- 258-5439Contact Tony Heintz
Associate MemberFabricator
Sponsored bySam Peyton Kingrsquos Flooring LLC
wwwRochesterAreaBuilderscom22 | July 2014
Put your membershipto work nowMoney-saving discounts that benefit yourbusiness your employees and your family
wwwnahborgMA
National Association of Home Builders
R
wwwRochesterAreaBuilderscom10 | July 2014
CBC Social EventAssociation Scrapbook
WwwRochesterAreaBuilderscomJuly 2014 | 11
Association ScrapbookCBC Social Event
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lton Hills Ln N
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BCDEFGHIJ A
0-1 = 81 5 BEVERAGE SPONSOR N
0-1 = 81 4 EVENT SPONSORS N
0-1 = 81 2 DETAILS N
0-1 = 81 3 RSVP N
0-1 = 81 1 EVENT N
Donrsquot forget to RSVPIf you attend amp did not RSVP we may not have enough food so let us know
Deadline to RSVP is Monday April 14th at 1200 Noon
Phone 507-282-7698 Fax 507-282-6351
Email RABRochesterAreaBuilderscom
3rsquo - 9rdquo
1rsquo -
10rdquo
CBC Social EventWildwood Sports Bar amp Grill
1517 16th St SW Rochester MN 55902Wednesday May 16th 430 ndash 700 PM
Join us at Wildwood Sports Bar amp Grill for our 2nd Annual Commercial Builders Council Social Event Socialize and network with your fellow Members in a relaxed environment Enjoy a free Cajun buffet
and beer thanks to our great sponsors
wwwRochesterAreaBuilderscom12 | July 2014
RAB Golf Outing Review
Gazebo SPONSORCommercial Builders Council
PUTTING CONTEST SPONSORMinnesota Energy Resources
CLOSEST TO THE FLAGThe Builders Group
BREAK THE GLASSMarvin Windows amp Doors
CIGAR CART SPONSORTradesmen International Inc
DRINK CART SPONSORSCarpet OneKnutson Construction Services
TEE amp GREEN SPONSORSABC Supply Company IncBraun Intertec CorporationCO Brown AgencyCambriaCharter BusinessClements Chevrolet Cadillac SubaruData-Smart Computers IncDunlap amp SeegerEnergy Products amp DesignGerhardrsquosHome Federal Savings BankKreofsky Building SuppliesKruse LumberMBT BankMcGhie amp Betts A Div of WSBMcGladreyMerchants BankMinnwest BankOlmsted National BankPost-Bulletin Company LLCProBuild Company LLCPine Island LumberPompeii Painting IncPremier Bank RochesterRochester Title amp Escrow CoSmith Schafer amp AssociatesSomerby Golf CommunityWarnerrsquos Stellian ApplianceWendland UtzWerner Electric SupplyWomen Communications LLCYaggy Colby Associates
APPETIZER SPONSORSCrescent Electric Supply CompanyCRW architecture + design groupOhly Law OfficeViking Electric Supply
CART SPONSORSThe Blue Book of Building amp
ConstructionBrock White CompanyCRW architecture + design groupCustom AlarmCustom
Communications IncEastwood BankFirst Security BankPrimeLendingThompsonrsquos Garage Door and
Openers
Thank You to our wonderful SponsorsGold Tee Sponsor
WwwRochesterAreaBuilderscomJuly 2014 | 13
For this monthrsquos ldquoHey Matt Whatrsquos Up With Thatrdquo we are talking about Subcontractor Registration and sump pumps
ldquoHey Matt whatrsquos up with Subcontractor Registrationrdquo
This legislative session a pilot program by the Department of Labor and Industry (DLI) was codified into law making it binding upon all contractors in Minnesota The program aims to crack down on subcontractors not registering with DLI and claiming independent contractor status to get around some workers compensation laws
The program works like this if a subcontractor is not registered with DLI and does not fulfill the 9 factor test for being an independent contractor DLI fines the general contractor We fought this law during the legislative session and thankfully we received a one-time hall pass That means that the first time that a general contractor hires a subcontractor that is not registered with DLI they will not be fined This is something we fought for when we saw the writing on the wall that this would become law
Going forward subcontractors make sure you are registered with DLI It may affect your ability to work for certain GCs And GCs the onus is on YOU to make sure the subs you hire are registered You can check with DLI on their website using a nifty little search tool RAB will be running our membership list through DLIrsquos registered contractors list and we will be contacting those who arenrsquot registered to give them a friendly reminder
ldquoHey Matt I hear a lot of people talking about Sump Pumps all of a sudden Whatrsquos up with thatrdquo
What a wet spring so far With so much water falling from the sky and soaking the ground its no surprise that sump pumps have become a topic of discussion Recently RAB was reminded by the building safety department of Rochester that if you have a sump basket in a house there must be a discharge line installed and a pump placed in the basket This is a part of the Minnesota state building code The building safety department explained that they are running into a lot of homes with baskets installed that have no discharge line or pump in the basket
We have also heard concerns from some builders that they can put a pump in the sump basket but if it doesnrsquot run for over 6 months it will seize up and not work when needed Homeowners make sure to follow the manufacturerrsquos instructions for maintenance on these sump pumps The most common maintenance step for these pumps is to ocasionally pour water into the sump basket during the winter and let the pump run This is an important step to make sure your basement doesnrsquot become a wading pool
Thanks to the members who sent me these questions for this monthrsquos edition of ldquoHey Whatrsquos up with Thatrdquo As always if you have a question about anything you find interesting or confusing during your work day give me a call or send an email and hopefully I can find out the answer for you
Matt
Oh and one more thing
ldquoHey Matt did you put a ring on itrdquo
Yes itrsquos true Matt proposed to and more importantly was accepted by his now fiance Loryn Meloy Congratualtions to the happy couple
wwwRochesterAreaBuilderscom14 | July 2014
What Wersquore Doing For YouCWGQ Insurance
TBG Insurance
Gov Relations
Legal Action
Education
Online Forums
Action Center
Energy Payback
Visit wwwbamnorg and log-in to the Members Only site for more information on these BAM initiatives
BUILDERSASSOCIATION OF MINNESOTA
T 6516467959T 8006547783W wwwbamnorg
Executive Committee
BAM Update June 2014
The Minnesota Department of Labor and Industry (DLI) has stated they plan to start enforcing the new Minnesota Building Code in January of 2015 They have not yet released the final version of the code so we donrsquot know exactly what will be included However based on what is known the Builders Association of Minnesota (BAM) is working to provide members with code guides with a planned release date near the end of August 2014
BAM has contracted with Ed VonThoma of Building Knowledge Inc and has assembled a group of statewide members to create and vet the following code guide documentsbull Top 20 Code Changes in the Residential Building Codebull Top 20 Code Changes in the Energy Codebull Field Guide to Residential Code bull Field Guide to Energy Code bull Field Guide to Radon bull Field Guide to Foundation Wall Support bull Field Guide to Residential Fire Sprinklers
These guides are a major benefit of membership and available ONLY to members DLI issues the codes but BAM is the organization that develops guides on how to implement the new codes BAM will be providing members with access to each of these seven documents The documents will be available on the BAM website and optimized for both printing and easy viewing on your mobile devices out in the field These guides will form the basis for continuing education courses and BKI will be available to teach classes around the state to help members prepare to build to the new code
If you have industry peers that will benefit from having these guides tell them to join your local builders association and enjoy 3-in-1 membership to access BAMrsquos field guides and other value added benefits such as our home builidng industry specific construction contracts
Thank you to BAM members who are genersouly donating their time to help perfect the members-only guides Thank you to Daniel Buuck Clay Dietrich Jon Coty George Cundy Terry Hammack Chad Kompelien Keith Kylmala Kevin Maleska John McGuine Trace Mills Monte Mraz Kathe Ostrom Mike Paradise Craig Plekkenpol Joe Ranweiler David Werschay and Howie Zetah
We will keep you updated on news from DLI about the new codes timeline BAM will be releasing the field guides starting with the ldquoTop 20rdquo Residential and Energy Codes Field Guides at the end of the summer with the remainder released far in advance of the January 24 2015 code enforcement date
President Chad Kompelein
Builder VPKC Chermak
Associate VPGeorge Cundy
President ElectMike Paradise
TreasurerGerry Traut
SecretaryKurt Welker
Past PresidentKeith Kylmala
NAHB RepresentativeKathe Ostrom
WwwRochesterAreaBuilderscomJuly 2014 | 15
Committee UpdatesEDUCATION COMMITTEECHAIRPERSON VACANT
This committee is currently meeting to plan our education seminars for this winter The first round of CE classes to continue holding your Lead Certification is this year We will be offering these classes later this Fall for members renewing Lead Certification in December and again in the Winter for those renewing in April 2015 Regular CE credit classes will be held in January and February If you have any suggestions for presentations or speakers please call the office and talk to Rebekah
Committee ChairpersonsAMBASSADORSGreg Hird First Alliance Credit UnionAWARDSTBABUILDING MAINTENANCETJ Schutz Advanced Building Center IncBUILDING SAFETY ADVISORYMickey Elias Elias Construction LLCCOMMUNITY RELATIONSTony Kunz Hillerrsquos Flooring AmericaDISPUTE RESOLUTIONJohn Kuntz Kuntz Electric IncEDUCATIONVacantEXECUTIVEKevin Worden Rochester Area Habitat for HumanityFASHION SHOWKaren Blissenbach Design Studio BFINANCECarla Kilpatrick Home Federal Savings BankGOLF OUTINGLindsey Rippentrop Olmsted National BankGOVERNMENT AFFAIRSJohn Eckerman The Boldt CompanyGREEN BUILDINGKelly OrsquoMarro XRG Concepts LLCHOME SHOW ndash 2013Jeff Kalmes Hillers Flooring AmericaMARKETINGRob Easthouse Electrical Solutions amp ServiceMEMBERSHIP amp RETENTIONDan Bochman Kruse LumberNOMINATINGKerk Johnson Schwickertrsquos Tecta America LLC PERSONNELKevin Worden Rochester Area Habitat for HumanityPROGRAMDan Plizga Weis Builders IncPUBLIC WORKS ADVISORYJeff Broberg McGhie amp Betts - a Division of WSB amp Associates IncSHOWCASE OF HOMESBrandon Vagt XRG Concepts LLCSPIKE CLUBJay Burke Heartwood Homes of Rochester IncSPORTING CLAYSJames Coyle Kane amp Johnson Architects Inc
CouncilsBER EXECUTIVE COMMITTEEJJ Webster Kraus-Anderson Construction CompanyCBC EXECUTIVE COMMITTEEChris Terry Knutson Construction ServicesDEVELOPMENT COUNCILJohn Sipple Rochester Area Appraisals LLCREMODELERS EXECUTIVE COMMITTEESam Peyton Kingrsquos Flooring LLCREMODELERS TOURKaren Blissenbach Design Studio B
wwwRochesterAreaBuilderscom16 | July 2014
July Summer OutingWednesday July 16th 6 - 8 PM
Wildwood Sports Bar amp Grill1517 16th Street SW Suite C
Program
Cost is $15 per person Seating will be limited More details will be coming soon
RemodelersRemodelersRemodelers
WwwRochesterAreaBuilderscomJuly 2014 | 17
WErsquoRE HERE TO HELP Natural gas is a great energy
value Xcel Energy can help you with all of your energy-related
building needs including natural gas and electric We even off er
rebates for qualifying natural gas appliances Contact us today
and fi nd out how we can help you
Visit xcelenergycomEnergyPartners today
call 1-800-628-2121 or fax 1-800-628-2521
ENERGYVALUEBESTHO
OK UP
with the
copy 2013 Xcel Energy Inc
xcelenergycomEnergyPartners
13-XCL-00255-B_MNB_HookUp(Combo)_73125x475_4c_LOindd 1 5613 321 PM
A special offer formembers onlyRegister now and save 2 on your Lowersquos Accounts Receivable
purchases Plus get free delivery on purchases of $500 or moredagger
To register visit LowesForProscomNAHB or call 877-435-2440
Offer is not automatic See store for detailsOffer valid now through 12312014 Cannot be combined with any other statement discount To be eligible for the 2 discount you must register your NAHB membership by 12312014 and make a purchase with your Lowersquos Accounts Receivable by 12312014 Allow one to two complete billing cycles for your registration to be processed and for your discount to appear on your billing statement Offer and discount provided by Lowersquos and not GE Capital Retail Bank Excludes Lowersquos Business Account Card Lowersquos Consumer Credit Card Lowersquos Visa Accounts Lowersquos Business Rewards from American Express Card and all Lowersquos Canada Credit projects Offer not valid on purchases made prior to registering NAHB membership at LowesForProscom Call 877-435-2440 for questions about this program All purchases subject to credit approval daggerStandard delivery rules apply copy2014 Lowersquos LOWErsquoS Gable Mansard Design are registered trademarks of LF LLC
Lowes_2014 NAHB-HALFPAGEindd 1 112613 1222 PM
wwwRochesterAreaBuilderscom18 | July 2014
2014 VALUATION 2013 VALUATION
New Residential Single Family Dwelling 25 5531411 28 7133572
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 19 107504 56 286615
Room Addition 3 278763 2 82000
Porch Additions 0 0 0 0
Other Additions 0 0 2 43200
Basement Finish 29 342255 27 371975
Alterations 50 516115 47 325798
Multi-Family Addition 0 0 1 810
Multi-Family Alterations 2 113000 16 169000 New Commercial Assembly (Church) 0 0 0 0
Assembly (General) 0 0 0 0
Assembly (RestaurantBar) 1 1561000 1 700000
Business 0 0 1 225000
Education 0 0 0 0
FactoryIndustrial 0 0 0 0
Institution 0 0 0 0
Mercantile 0 0 0 0
Miscelaneous 0 0 0 0
Utility (General) 1 130000 1 3850
Residential (CareAssisted Living) 0 0 0 0
Storage (General) 1 45000 0 0
Storage (Warehouse) 0 0 1 532594 Existing CommercialAddition 8 5812413 1 15406
Alterations 34 5984762 36 34644913
Structural Shell 0 0 0 0
ldquoWhite Boxrdquo 1 15000 0 0
Interior Demolition Only 3 48500 3 16706
Other Phased Permits 0 0 0 0
Other ConstructionBusiness Signs 15 106565 6 15224
Advertising Sign 1 18000 0 0
Footings amp Foundations 2 220000 11
Demolition 3 1
Rochester Building Permits April 2014
January 33 39 27 20 3 13 3 6 19 11
February 31 31 19 13 1 8 8 20 15 14
March 59 37 30 29 16 27 24 32 29 28
April 58 58 44 27 29 25 19 29 39 25
May 77 69 50 30 33 20 14 22 27 35
TOTAL 258 234 172 119 82 93 68 109 129 113
June 81 59 43 36 36 12 26 32 33
July 58 36 60 23 21 23 8 39 39
August 69 36 43 28 26 15 18 38 21
September 65 31 33 28 33 10 19 22 23
October 71 49 34 19 31 14 16 23 34
November 40 38 23 26 30 21 20 22 26
December 60 23 11 16 15 12 16 14 22
TOTAL 702 506 417 302 274 200 191 299 326 113
Single Family Homes
Year To Date Statistics 2014 2013 NO VALUATION NO VALUATION
Building Permits Issued to Date 881 147003028 825 100011030
Single Family Dwelling 109 26968957 130 30405563
Multi-Family Buildings Total Units 39 1 3702052 0 0
Trade Permits Issued to Date 2978 30568713 2326 27697853
Electrical 1050 13657783 878 15240984
Electrical (Temp Service) 103 30950 115 29700
Mechanical 731 6606354 685 6221377
Gas Piping 198 417331 185 141995
Fireplace 163 417589 148 344814
Hydronic System 69 3689975 50 1105942
Plumbing 664 5748731 653 4613041
Total Permits YTD 3859 177571741 3151 127708883
Information and downloads available at Rochester Building Safety Departmentrsquos Website httpwwwrochestermngovdepartmentsbldgsafetyreportsbuildingindexasp
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
total may differ as permits may have been voided
WwwRochesterAreaBuilderscomJuly 2014 | 19
Rochester Real EstateMonthly Housing DataMarch 2014
Monthly Housing Data March 2014 March 2013 Change
New Listings 311 320 -28Active Listings Year to Date
1087 1195 -90
Pending Listing 173 212 -184Sold Listings 128 144 -111Sold Listings Year to Date
312 342 -88
Median Sales Price (SOLD)
158000 153150 30
SOLD Days on Market (DOM)
81 100 -1900
Avg Year to Date (DOM)
86 110 -2182
Information and downloads available at South East Minnesota Association of REALTORSrsquo
Website httpsemnrealtorsorggeneralstats_market-trendshtml
Information Provided By
MARCH 2014
New Residential NUMBER VALUATION
Single Family Detached 8 1263500
New Commercial
Commercial 1 142000
Existing Residential
Deck Addition 15 55113
Basement Finish 1 3600
Alterations 2 5800
Accessory Building 1 5000
ByronBuilding Permits
MARCH 2014
New Residential NUMBER VALUATION
Single Family 3 402000
Existing Residential
Deck Addition 3 15000
Alterations 9 49000
Reroof 10 50000
Existing Commercial
Reroof 2 10000
Pine IslandBuilding Permits
wwwRochesterAreaBuilderscom20 | July 2014
Despite GDP growth stalling in Q1 due to the Polar Vortex slower inventory accumulation and mildly lower exports the economic recovery remains intact The anemic performance of the US economy from January through March was aberrant and the incoming employment manufacturing and consumer spending data all point to an economic pickup GDP growth the rest of the year should average 3 with growth in Q2 closer to 325 as the economy rebounds from the harsh winter In addition reduced fiscal drag from DC increased hiring and spending by state and local governments and increased corporate spending on plant and equipment suggest we are finally entering a period of faster growth
That said economically all is not well Wage growth remains anemic and while the unemployment rate is 63 down from 10 the fall is largely due to a decline in the labor force participation rate The ranks of the long-term unemployed remain elevated along with the number of those working part-time because they canrsquot find full time work Add to that average overtime hours that are remarkably high and termination rates that are very low and what you have are employers very reluctant to hire This situation cannot persist and of late job creation numbers have been on the upswing Therefore net job creation will rise from 200000month where it has been for the past year to 220000 or 225000 by year end and unemployment will probably fall to 61 I expect wage growth to start picking up steam in 2015
The biggest drag on the economy is housing After a promising first half of 2013 the housing market is at best flat While rising interest rates and home prices a lack of inventory and lots shortages of materials and labor and a lack of credit and first-
time buyers play a part weak household formation is the main culprit After averaging over 12 million in the years prior to the Great Recession household formations have been averaging 500000 since the end of the recession The good news - household formation will rise now that all eight million jobs lost during the recession have been finally made up We are no longer making up lost ground Because of this new single-family construction activity in 2014 will reach 700000 with multifamily adding 350000 while existing home sales should be down slightly from last year
As for inflation itrsquos benign No matter how measured there is no inflation to speak of in the US Commodity prices will remain well-behaved given weak demand due to economic slowing in China and weak growth in Europe and the developing nations Absent some sort of geopolitical crisis energy prices will remain where they are thanks to record US oil production As a result expect tapering to end in November and for the Federal Reserve to begin raising short-term interest rates by mid-2015 However long-term rates have bottomed and 10-yr Treasuries will end the year at about 3 as the economy steadily strengthens
In short the economy is improving and Q1 was a speed bump Long term rates will rise short-term rates will remain unchanged and housing will limp into 2015 with prices rising slightly Most critically household formation will strengthen and corporate state and local government spending will rise Lastly the likelihood of a recession during the next six months is virtually zero
Economic Forecast for 2nd Half of 2014 Increasing Momentum Reduced Headwinds
Elliot Eisenberg PhD
Elliot Eisenberg PhD is President of GraphsandLaughs LLC and can be reached at Elliotgraphsandlaughsnet His daily 70 word economics
and policy blog can be seen at wwwecon70com
WwwRochesterAreaBuilderscomJuly 2014 | 21
CUSTOM HOMES BY BRADLEY INCRochester MN 55901Phone 507- 358-8681Contact Brad Goeden
Builder MemberResidential Builder
Sponsored byNone Listed
MEMBERSHIPS PENDINGNONE
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 943
As of 53114
WE WELCOME THE FOLLOWING NEW MEMBERS IN MAY
Membership Information
Membership Renewals as of 53114
One Year
Alpha Video amp Audio 2013GulfEagle Supply 2013
Two to Four Years
The Design Connection 2012Hammer Homes Inc 2011Steel Constructors Inc 2011
Five to Nine Years
Kingrsquos Flooring LLC 2009Turtle Creek Construction Inc 2009The Blue Book of Building amp Construction 2007Bruce Bucknell Construction Inc 2006McGough Construction 2006Schoeppner Inc 2006Cravath Homes LLC dba Accessibility Solutions
2005
Prime Time Painting of Rochester LLC 2005Ten to 19 Years
Elcor Realty of Rochester Inc 2004RJ Manemann Custom Homes 2004DMC Plumbing amp Heating Inc 2003Fairway Outdoor Advertising LLC 2003Innovative Surfaces Inc 2002Design Studio B 2001SL Contracting 1998
25 Years amp More
Hentges Glass Company 1991Larson Siding amp Windows 1986Merit Contracting Inc 1982Sargentrsquos Landscape Nursery Inc 1977CO Brown Agency 1970Holt Title Guaranty Company Inc 1958Palmer Soderberg Inc 1958
NEW APPLICANTS
ULTIMATE SURFACES1233 Eastgate Drive SERochester MN 55904Phone 507- 258-5439Contact Tony Heintz
Associate MemberFabricator
Sponsored bySam Peyton Kingrsquos Flooring LLC
wwwRochesterAreaBuilderscom22 | July 2014
Put your membershipto work nowMoney-saving discounts that benefit yourbusiness your employees and your family
wwwnahborgMA
National Association of Home Builders
R
WwwRochesterAreaBuilderscomJuly 2014 | 11
Association ScrapbookCBC Social Event
O
N T
CEJ
ORP
EM
AN
ELIF
YB
NWA
RD
Y B
DEN
GISE
D
ETA
D E
USSI
O
N T
CEJ
ORP
TNE
ILC
ELTI
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HS
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507-282-7698108 E
lton Hills Ln N
W R
ochester MN
55901bullF 507-282-6351
wR
ochesterAreaB
uilderscomw
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DEWE
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2449
3
COMMERCIALBUILDERS COUNCIL
SOCIAL EVENTROCHESTER MINNESOTA
SAW
TNE
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CO
D SI
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YFI
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OISI
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P DE
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elud
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340281624
CB
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yan Kling-P
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yan Kling-P
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BCDEFGHIJ A
0-1 = 81 5 BEVERAGE SPONSOR N
0-1 = 81 4 EVENT SPONSORS N
0-1 = 81 2 DETAILS N
0-1 = 81 3 RSVP N
0-1 = 81 1 EVENT N
Donrsquot forget to RSVPIf you attend amp did not RSVP we may not have enough food so let us know
Deadline to RSVP is Monday April 14th at 1200 Noon
Phone 507-282-7698 Fax 507-282-6351
Email RABRochesterAreaBuilderscom
3rsquo - 9rdquo
1rsquo -
10rdquo
CBC Social EventWildwood Sports Bar amp Grill
1517 16th St SW Rochester MN 55902Wednesday May 16th 430 ndash 700 PM
Join us at Wildwood Sports Bar amp Grill for our 2nd Annual Commercial Builders Council Social Event Socialize and network with your fellow Members in a relaxed environment Enjoy a free Cajun buffet
and beer thanks to our great sponsors
wwwRochesterAreaBuilderscom12 | July 2014
RAB Golf Outing Review
Gazebo SPONSORCommercial Builders Council
PUTTING CONTEST SPONSORMinnesota Energy Resources
CLOSEST TO THE FLAGThe Builders Group
BREAK THE GLASSMarvin Windows amp Doors
CIGAR CART SPONSORTradesmen International Inc
DRINK CART SPONSORSCarpet OneKnutson Construction Services
TEE amp GREEN SPONSORSABC Supply Company IncBraun Intertec CorporationCO Brown AgencyCambriaCharter BusinessClements Chevrolet Cadillac SubaruData-Smart Computers IncDunlap amp SeegerEnergy Products amp DesignGerhardrsquosHome Federal Savings BankKreofsky Building SuppliesKruse LumberMBT BankMcGhie amp Betts A Div of WSBMcGladreyMerchants BankMinnwest BankOlmsted National BankPost-Bulletin Company LLCProBuild Company LLCPine Island LumberPompeii Painting IncPremier Bank RochesterRochester Title amp Escrow CoSmith Schafer amp AssociatesSomerby Golf CommunityWarnerrsquos Stellian ApplianceWendland UtzWerner Electric SupplyWomen Communications LLCYaggy Colby Associates
APPETIZER SPONSORSCrescent Electric Supply CompanyCRW architecture + design groupOhly Law OfficeViking Electric Supply
CART SPONSORSThe Blue Book of Building amp
ConstructionBrock White CompanyCRW architecture + design groupCustom AlarmCustom
Communications IncEastwood BankFirst Security BankPrimeLendingThompsonrsquos Garage Door and
Openers
Thank You to our wonderful SponsorsGold Tee Sponsor
WwwRochesterAreaBuilderscomJuly 2014 | 13
For this monthrsquos ldquoHey Matt Whatrsquos Up With Thatrdquo we are talking about Subcontractor Registration and sump pumps
ldquoHey Matt whatrsquos up with Subcontractor Registrationrdquo
This legislative session a pilot program by the Department of Labor and Industry (DLI) was codified into law making it binding upon all contractors in Minnesota The program aims to crack down on subcontractors not registering with DLI and claiming independent contractor status to get around some workers compensation laws
The program works like this if a subcontractor is not registered with DLI and does not fulfill the 9 factor test for being an independent contractor DLI fines the general contractor We fought this law during the legislative session and thankfully we received a one-time hall pass That means that the first time that a general contractor hires a subcontractor that is not registered with DLI they will not be fined This is something we fought for when we saw the writing on the wall that this would become law
Going forward subcontractors make sure you are registered with DLI It may affect your ability to work for certain GCs And GCs the onus is on YOU to make sure the subs you hire are registered You can check with DLI on their website using a nifty little search tool RAB will be running our membership list through DLIrsquos registered contractors list and we will be contacting those who arenrsquot registered to give them a friendly reminder
ldquoHey Matt I hear a lot of people talking about Sump Pumps all of a sudden Whatrsquos up with thatrdquo
What a wet spring so far With so much water falling from the sky and soaking the ground its no surprise that sump pumps have become a topic of discussion Recently RAB was reminded by the building safety department of Rochester that if you have a sump basket in a house there must be a discharge line installed and a pump placed in the basket This is a part of the Minnesota state building code The building safety department explained that they are running into a lot of homes with baskets installed that have no discharge line or pump in the basket
We have also heard concerns from some builders that they can put a pump in the sump basket but if it doesnrsquot run for over 6 months it will seize up and not work when needed Homeowners make sure to follow the manufacturerrsquos instructions for maintenance on these sump pumps The most common maintenance step for these pumps is to ocasionally pour water into the sump basket during the winter and let the pump run This is an important step to make sure your basement doesnrsquot become a wading pool
Thanks to the members who sent me these questions for this monthrsquos edition of ldquoHey Whatrsquos up with Thatrdquo As always if you have a question about anything you find interesting or confusing during your work day give me a call or send an email and hopefully I can find out the answer for you
Matt
Oh and one more thing
ldquoHey Matt did you put a ring on itrdquo
Yes itrsquos true Matt proposed to and more importantly was accepted by his now fiance Loryn Meloy Congratualtions to the happy couple
wwwRochesterAreaBuilderscom14 | July 2014
What Wersquore Doing For YouCWGQ Insurance
TBG Insurance
Gov Relations
Legal Action
Education
Online Forums
Action Center
Energy Payback
Visit wwwbamnorg and log-in to the Members Only site for more information on these BAM initiatives
BUILDERSASSOCIATION OF MINNESOTA
T 6516467959T 8006547783W wwwbamnorg
Executive Committee
BAM Update June 2014
The Minnesota Department of Labor and Industry (DLI) has stated they plan to start enforcing the new Minnesota Building Code in January of 2015 They have not yet released the final version of the code so we donrsquot know exactly what will be included However based on what is known the Builders Association of Minnesota (BAM) is working to provide members with code guides with a planned release date near the end of August 2014
BAM has contracted with Ed VonThoma of Building Knowledge Inc and has assembled a group of statewide members to create and vet the following code guide documentsbull Top 20 Code Changes in the Residential Building Codebull Top 20 Code Changes in the Energy Codebull Field Guide to Residential Code bull Field Guide to Energy Code bull Field Guide to Radon bull Field Guide to Foundation Wall Support bull Field Guide to Residential Fire Sprinklers
These guides are a major benefit of membership and available ONLY to members DLI issues the codes but BAM is the organization that develops guides on how to implement the new codes BAM will be providing members with access to each of these seven documents The documents will be available on the BAM website and optimized for both printing and easy viewing on your mobile devices out in the field These guides will form the basis for continuing education courses and BKI will be available to teach classes around the state to help members prepare to build to the new code
If you have industry peers that will benefit from having these guides tell them to join your local builders association and enjoy 3-in-1 membership to access BAMrsquos field guides and other value added benefits such as our home builidng industry specific construction contracts
Thank you to BAM members who are genersouly donating their time to help perfect the members-only guides Thank you to Daniel Buuck Clay Dietrich Jon Coty George Cundy Terry Hammack Chad Kompelien Keith Kylmala Kevin Maleska John McGuine Trace Mills Monte Mraz Kathe Ostrom Mike Paradise Craig Plekkenpol Joe Ranweiler David Werschay and Howie Zetah
We will keep you updated on news from DLI about the new codes timeline BAM will be releasing the field guides starting with the ldquoTop 20rdquo Residential and Energy Codes Field Guides at the end of the summer with the remainder released far in advance of the January 24 2015 code enforcement date
President Chad Kompelein
Builder VPKC Chermak
Associate VPGeorge Cundy
President ElectMike Paradise
TreasurerGerry Traut
SecretaryKurt Welker
Past PresidentKeith Kylmala
NAHB RepresentativeKathe Ostrom
WwwRochesterAreaBuilderscomJuly 2014 | 15
Committee UpdatesEDUCATION COMMITTEECHAIRPERSON VACANT
This committee is currently meeting to plan our education seminars for this winter The first round of CE classes to continue holding your Lead Certification is this year We will be offering these classes later this Fall for members renewing Lead Certification in December and again in the Winter for those renewing in April 2015 Regular CE credit classes will be held in January and February If you have any suggestions for presentations or speakers please call the office and talk to Rebekah
Committee ChairpersonsAMBASSADORSGreg Hird First Alliance Credit UnionAWARDSTBABUILDING MAINTENANCETJ Schutz Advanced Building Center IncBUILDING SAFETY ADVISORYMickey Elias Elias Construction LLCCOMMUNITY RELATIONSTony Kunz Hillerrsquos Flooring AmericaDISPUTE RESOLUTIONJohn Kuntz Kuntz Electric IncEDUCATIONVacantEXECUTIVEKevin Worden Rochester Area Habitat for HumanityFASHION SHOWKaren Blissenbach Design Studio BFINANCECarla Kilpatrick Home Federal Savings BankGOLF OUTINGLindsey Rippentrop Olmsted National BankGOVERNMENT AFFAIRSJohn Eckerman The Boldt CompanyGREEN BUILDINGKelly OrsquoMarro XRG Concepts LLCHOME SHOW ndash 2013Jeff Kalmes Hillers Flooring AmericaMARKETINGRob Easthouse Electrical Solutions amp ServiceMEMBERSHIP amp RETENTIONDan Bochman Kruse LumberNOMINATINGKerk Johnson Schwickertrsquos Tecta America LLC PERSONNELKevin Worden Rochester Area Habitat for HumanityPROGRAMDan Plizga Weis Builders IncPUBLIC WORKS ADVISORYJeff Broberg McGhie amp Betts - a Division of WSB amp Associates IncSHOWCASE OF HOMESBrandon Vagt XRG Concepts LLCSPIKE CLUBJay Burke Heartwood Homes of Rochester IncSPORTING CLAYSJames Coyle Kane amp Johnson Architects Inc
CouncilsBER EXECUTIVE COMMITTEEJJ Webster Kraus-Anderson Construction CompanyCBC EXECUTIVE COMMITTEEChris Terry Knutson Construction ServicesDEVELOPMENT COUNCILJohn Sipple Rochester Area Appraisals LLCREMODELERS EXECUTIVE COMMITTEESam Peyton Kingrsquos Flooring LLCREMODELERS TOURKaren Blissenbach Design Studio B
wwwRochesterAreaBuilderscom16 | July 2014
July Summer OutingWednesday July 16th 6 - 8 PM
Wildwood Sports Bar amp Grill1517 16th Street SW Suite C
Program
Cost is $15 per person Seating will be limited More details will be coming soon
RemodelersRemodelersRemodelers
WwwRochesterAreaBuilderscomJuly 2014 | 17
WErsquoRE HERE TO HELP Natural gas is a great energy
value Xcel Energy can help you with all of your energy-related
building needs including natural gas and electric We even off er
rebates for qualifying natural gas appliances Contact us today
and fi nd out how we can help you
Visit xcelenergycomEnergyPartners today
call 1-800-628-2121 or fax 1-800-628-2521
ENERGYVALUEBESTHO
OK UP
with the
copy 2013 Xcel Energy Inc
xcelenergycomEnergyPartners
13-XCL-00255-B_MNB_HookUp(Combo)_73125x475_4c_LOindd 1 5613 321 PM
A special offer formembers onlyRegister now and save 2 on your Lowersquos Accounts Receivable
purchases Plus get free delivery on purchases of $500 or moredagger
To register visit LowesForProscomNAHB or call 877-435-2440
Offer is not automatic See store for detailsOffer valid now through 12312014 Cannot be combined with any other statement discount To be eligible for the 2 discount you must register your NAHB membership by 12312014 and make a purchase with your Lowersquos Accounts Receivable by 12312014 Allow one to two complete billing cycles for your registration to be processed and for your discount to appear on your billing statement Offer and discount provided by Lowersquos and not GE Capital Retail Bank Excludes Lowersquos Business Account Card Lowersquos Consumer Credit Card Lowersquos Visa Accounts Lowersquos Business Rewards from American Express Card and all Lowersquos Canada Credit projects Offer not valid on purchases made prior to registering NAHB membership at LowesForProscom Call 877-435-2440 for questions about this program All purchases subject to credit approval daggerStandard delivery rules apply copy2014 Lowersquos LOWErsquoS Gable Mansard Design are registered trademarks of LF LLC
Lowes_2014 NAHB-HALFPAGEindd 1 112613 1222 PM
wwwRochesterAreaBuilderscom18 | July 2014
2014 VALUATION 2013 VALUATION
New Residential Single Family Dwelling 25 5531411 28 7133572
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 19 107504 56 286615
Room Addition 3 278763 2 82000
Porch Additions 0 0 0 0
Other Additions 0 0 2 43200
Basement Finish 29 342255 27 371975
Alterations 50 516115 47 325798
Multi-Family Addition 0 0 1 810
Multi-Family Alterations 2 113000 16 169000 New Commercial Assembly (Church) 0 0 0 0
Assembly (General) 0 0 0 0
Assembly (RestaurantBar) 1 1561000 1 700000
Business 0 0 1 225000
Education 0 0 0 0
FactoryIndustrial 0 0 0 0
Institution 0 0 0 0
Mercantile 0 0 0 0
Miscelaneous 0 0 0 0
Utility (General) 1 130000 1 3850
Residential (CareAssisted Living) 0 0 0 0
Storage (General) 1 45000 0 0
Storage (Warehouse) 0 0 1 532594 Existing CommercialAddition 8 5812413 1 15406
Alterations 34 5984762 36 34644913
Structural Shell 0 0 0 0
ldquoWhite Boxrdquo 1 15000 0 0
Interior Demolition Only 3 48500 3 16706
Other Phased Permits 0 0 0 0
Other ConstructionBusiness Signs 15 106565 6 15224
Advertising Sign 1 18000 0 0
Footings amp Foundations 2 220000 11
Demolition 3 1
Rochester Building Permits April 2014
January 33 39 27 20 3 13 3 6 19 11
February 31 31 19 13 1 8 8 20 15 14
March 59 37 30 29 16 27 24 32 29 28
April 58 58 44 27 29 25 19 29 39 25
May 77 69 50 30 33 20 14 22 27 35
TOTAL 258 234 172 119 82 93 68 109 129 113
June 81 59 43 36 36 12 26 32 33
July 58 36 60 23 21 23 8 39 39
August 69 36 43 28 26 15 18 38 21
September 65 31 33 28 33 10 19 22 23
October 71 49 34 19 31 14 16 23 34
November 40 38 23 26 30 21 20 22 26
December 60 23 11 16 15 12 16 14 22
TOTAL 702 506 417 302 274 200 191 299 326 113
Single Family Homes
Year To Date Statistics 2014 2013 NO VALUATION NO VALUATION
Building Permits Issued to Date 881 147003028 825 100011030
Single Family Dwelling 109 26968957 130 30405563
Multi-Family Buildings Total Units 39 1 3702052 0 0
Trade Permits Issued to Date 2978 30568713 2326 27697853
Electrical 1050 13657783 878 15240984
Electrical (Temp Service) 103 30950 115 29700
Mechanical 731 6606354 685 6221377
Gas Piping 198 417331 185 141995
Fireplace 163 417589 148 344814
Hydronic System 69 3689975 50 1105942
Plumbing 664 5748731 653 4613041
Total Permits YTD 3859 177571741 3151 127708883
Information and downloads available at Rochester Building Safety Departmentrsquos Website httpwwwrochestermngovdepartmentsbldgsafetyreportsbuildingindexasp
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
total may differ as permits may have been voided
WwwRochesterAreaBuilderscomJuly 2014 | 19
Rochester Real EstateMonthly Housing DataMarch 2014
Monthly Housing Data March 2014 March 2013 Change
New Listings 311 320 -28Active Listings Year to Date
1087 1195 -90
Pending Listing 173 212 -184Sold Listings 128 144 -111Sold Listings Year to Date
312 342 -88
Median Sales Price (SOLD)
158000 153150 30
SOLD Days on Market (DOM)
81 100 -1900
Avg Year to Date (DOM)
86 110 -2182
Information and downloads available at South East Minnesota Association of REALTORSrsquo
Website httpsemnrealtorsorggeneralstats_market-trendshtml
Information Provided By
MARCH 2014
New Residential NUMBER VALUATION
Single Family Detached 8 1263500
New Commercial
Commercial 1 142000
Existing Residential
Deck Addition 15 55113
Basement Finish 1 3600
Alterations 2 5800
Accessory Building 1 5000
ByronBuilding Permits
MARCH 2014
New Residential NUMBER VALUATION
Single Family 3 402000
Existing Residential
Deck Addition 3 15000
Alterations 9 49000
Reroof 10 50000
Existing Commercial
Reroof 2 10000
Pine IslandBuilding Permits
wwwRochesterAreaBuilderscom20 | July 2014
Despite GDP growth stalling in Q1 due to the Polar Vortex slower inventory accumulation and mildly lower exports the economic recovery remains intact The anemic performance of the US economy from January through March was aberrant and the incoming employment manufacturing and consumer spending data all point to an economic pickup GDP growth the rest of the year should average 3 with growth in Q2 closer to 325 as the economy rebounds from the harsh winter In addition reduced fiscal drag from DC increased hiring and spending by state and local governments and increased corporate spending on plant and equipment suggest we are finally entering a period of faster growth
That said economically all is not well Wage growth remains anemic and while the unemployment rate is 63 down from 10 the fall is largely due to a decline in the labor force participation rate The ranks of the long-term unemployed remain elevated along with the number of those working part-time because they canrsquot find full time work Add to that average overtime hours that are remarkably high and termination rates that are very low and what you have are employers very reluctant to hire This situation cannot persist and of late job creation numbers have been on the upswing Therefore net job creation will rise from 200000month where it has been for the past year to 220000 or 225000 by year end and unemployment will probably fall to 61 I expect wage growth to start picking up steam in 2015
The biggest drag on the economy is housing After a promising first half of 2013 the housing market is at best flat While rising interest rates and home prices a lack of inventory and lots shortages of materials and labor and a lack of credit and first-
time buyers play a part weak household formation is the main culprit After averaging over 12 million in the years prior to the Great Recession household formations have been averaging 500000 since the end of the recession The good news - household formation will rise now that all eight million jobs lost during the recession have been finally made up We are no longer making up lost ground Because of this new single-family construction activity in 2014 will reach 700000 with multifamily adding 350000 while existing home sales should be down slightly from last year
As for inflation itrsquos benign No matter how measured there is no inflation to speak of in the US Commodity prices will remain well-behaved given weak demand due to economic slowing in China and weak growth in Europe and the developing nations Absent some sort of geopolitical crisis energy prices will remain where they are thanks to record US oil production As a result expect tapering to end in November and for the Federal Reserve to begin raising short-term interest rates by mid-2015 However long-term rates have bottomed and 10-yr Treasuries will end the year at about 3 as the economy steadily strengthens
In short the economy is improving and Q1 was a speed bump Long term rates will rise short-term rates will remain unchanged and housing will limp into 2015 with prices rising slightly Most critically household formation will strengthen and corporate state and local government spending will rise Lastly the likelihood of a recession during the next six months is virtually zero
Economic Forecast for 2nd Half of 2014 Increasing Momentum Reduced Headwinds
Elliot Eisenberg PhD
Elliot Eisenberg PhD is President of GraphsandLaughs LLC and can be reached at Elliotgraphsandlaughsnet His daily 70 word economics
and policy blog can be seen at wwwecon70com
WwwRochesterAreaBuilderscomJuly 2014 | 21
CUSTOM HOMES BY BRADLEY INCRochester MN 55901Phone 507- 358-8681Contact Brad Goeden
Builder MemberResidential Builder
Sponsored byNone Listed
MEMBERSHIPS PENDINGNONE
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 943
As of 53114
WE WELCOME THE FOLLOWING NEW MEMBERS IN MAY
Membership Information
Membership Renewals as of 53114
One Year
Alpha Video amp Audio 2013GulfEagle Supply 2013
Two to Four Years
The Design Connection 2012Hammer Homes Inc 2011Steel Constructors Inc 2011
Five to Nine Years
Kingrsquos Flooring LLC 2009Turtle Creek Construction Inc 2009The Blue Book of Building amp Construction 2007Bruce Bucknell Construction Inc 2006McGough Construction 2006Schoeppner Inc 2006Cravath Homes LLC dba Accessibility Solutions
2005
Prime Time Painting of Rochester LLC 2005Ten to 19 Years
Elcor Realty of Rochester Inc 2004RJ Manemann Custom Homes 2004DMC Plumbing amp Heating Inc 2003Fairway Outdoor Advertising LLC 2003Innovative Surfaces Inc 2002Design Studio B 2001SL Contracting 1998
25 Years amp More
Hentges Glass Company 1991Larson Siding amp Windows 1986Merit Contracting Inc 1982Sargentrsquos Landscape Nursery Inc 1977CO Brown Agency 1970Holt Title Guaranty Company Inc 1958Palmer Soderberg Inc 1958
NEW APPLICANTS
ULTIMATE SURFACES1233 Eastgate Drive SERochester MN 55904Phone 507- 258-5439Contact Tony Heintz
Associate MemberFabricator
Sponsored bySam Peyton Kingrsquos Flooring LLC
wwwRochesterAreaBuilderscom22 | July 2014
Put your membershipto work nowMoney-saving discounts that benefit yourbusiness your employees and your family
wwwnahborgMA
National Association of Home Builders
R
wwwRochesterAreaBuilderscom12 | July 2014
RAB Golf Outing Review
Gazebo SPONSORCommercial Builders Council
PUTTING CONTEST SPONSORMinnesota Energy Resources
CLOSEST TO THE FLAGThe Builders Group
BREAK THE GLASSMarvin Windows amp Doors
CIGAR CART SPONSORTradesmen International Inc
DRINK CART SPONSORSCarpet OneKnutson Construction Services
TEE amp GREEN SPONSORSABC Supply Company IncBraun Intertec CorporationCO Brown AgencyCambriaCharter BusinessClements Chevrolet Cadillac SubaruData-Smart Computers IncDunlap amp SeegerEnergy Products amp DesignGerhardrsquosHome Federal Savings BankKreofsky Building SuppliesKruse LumberMBT BankMcGhie amp Betts A Div of WSBMcGladreyMerchants BankMinnwest BankOlmsted National BankPost-Bulletin Company LLCProBuild Company LLCPine Island LumberPompeii Painting IncPremier Bank RochesterRochester Title amp Escrow CoSmith Schafer amp AssociatesSomerby Golf CommunityWarnerrsquos Stellian ApplianceWendland UtzWerner Electric SupplyWomen Communications LLCYaggy Colby Associates
APPETIZER SPONSORSCrescent Electric Supply CompanyCRW architecture + design groupOhly Law OfficeViking Electric Supply
CART SPONSORSThe Blue Book of Building amp
ConstructionBrock White CompanyCRW architecture + design groupCustom AlarmCustom
Communications IncEastwood BankFirst Security BankPrimeLendingThompsonrsquos Garage Door and
Openers
Thank You to our wonderful SponsorsGold Tee Sponsor
WwwRochesterAreaBuilderscomJuly 2014 | 13
For this monthrsquos ldquoHey Matt Whatrsquos Up With Thatrdquo we are talking about Subcontractor Registration and sump pumps
ldquoHey Matt whatrsquos up with Subcontractor Registrationrdquo
This legislative session a pilot program by the Department of Labor and Industry (DLI) was codified into law making it binding upon all contractors in Minnesota The program aims to crack down on subcontractors not registering with DLI and claiming independent contractor status to get around some workers compensation laws
The program works like this if a subcontractor is not registered with DLI and does not fulfill the 9 factor test for being an independent contractor DLI fines the general contractor We fought this law during the legislative session and thankfully we received a one-time hall pass That means that the first time that a general contractor hires a subcontractor that is not registered with DLI they will not be fined This is something we fought for when we saw the writing on the wall that this would become law
Going forward subcontractors make sure you are registered with DLI It may affect your ability to work for certain GCs And GCs the onus is on YOU to make sure the subs you hire are registered You can check with DLI on their website using a nifty little search tool RAB will be running our membership list through DLIrsquos registered contractors list and we will be contacting those who arenrsquot registered to give them a friendly reminder
ldquoHey Matt I hear a lot of people talking about Sump Pumps all of a sudden Whatrsquos up with thatrdquo
What a wet spring so far With so much water falling from the sky and soaking the ground its no surprise that sump pumps have become a topic of discussion Recently RAB was reminded by the building safety department of Rochester that if you have a sump basket in a house there must be a discharge line installed and a pump placed in the basket This is a part of the Minnesota state building code The building safety department explained that they are running into a lot of homes with baskets installed that have no discharge line or pump in the basket
We have also heard concerns from some builders that they can put a pump in the sump basket but if it doesnrsquot run for over 6 months it will seize up and not work when needed Homeowners make sure to follow the manufacturerrsquos instructions for maintenance on these sump pumps The most common maintenance step for these pumps is to ocasionally pour water into the sump basket during the winter and let the pump run This is an important step to make sure your basement doesnrsquot become a wading pool
Thanks to the members who sent me these questions for this monthrsquos edition of ldquoHey Whatrsquos up with Thatrdquo As always if you have a question about anything you find interesting or confusing during your work day give me a call or send an email and hopefully I can find out the answer for you
Matt
Oh and one more thing
ldquoHey Matt did you put a ring on itrdquo
Yes itrsquos true Matt proposed to and more importantly was accepted by his now fiance Loryn Meloy Congratualtions to the happy couple
wwwRochesterAreaBuilderscom14 | July 2014
What Wersquore Doing For YouCWGQ Insurance
TBG Insurance
Gov Relations
Legal Action
Education
Online Forums
Action Center
Energy Payback
Visit wwwbamnorg and log-in to the Members Only site for more information on these BAM initiatives
BUILDERSASSOCIATION OF MINNESOTA
T 6516467959T 8006547783W wwwbamnorg
Executive Committee
BAM Update June 2014
The Minnesota Department of Labor and Industry (DLI) has stated they plan to start enforcing the new Minnesota Building Code in January of 2015 They have not yet released the final version of the code so we donrsquot know exactly what will be included However based on what is known the Builders Association of Minnesota (BAM) is working to provide members with code guides with a planned release date near the end of August 2014
BAM has contracted with Ed VonThoma of Building Knowledge Inc and has assembled a group of statewide members to create and vet the following code guide documentsbull Top 20 Code Changes in the Residential Building Codebull Top 20 Code Changes in the Energy Codebull Field Guide to Residential Code bull Field Guide to Energy Code bull Field Guide to Radon bull Field Guide to Foundation Wall Support bull Field Guide to Residential Fire Sprinklers
These guides are a major benefit of membership and available ONLY to members DLI issues the codes but BAM is the organization that develops guides on how to implement the new codes BAM will be providing members with access to each of these seven documents The documents will be available on the BAM website and optimized for both printing and easy viewing on your mobile devices out in the field These guides will form the basis for continuing education courses and BKI will be available to teach classes around the state to help members prepare to build to the new code
If you have industry peers that will benefit from having these guides tell them to join your local builders association and enjoy 3-in-1 membership to access BAMrsquos field guides and other value added benefits such as our home builidng industry specific construction contracts
Thank you to BAM members who are genersouly donating their time to help perfect the members-only guides Thank you to Daniel Buuck Clay Dietrich Jon Coty George Cundy Terry Hammack Chad Kompelien Keith Kylmala Kevin Maleska John McGuine Trace Mills Monte Mraz Kathe Ostrom Mike Paradise Craig Plekkenpol Joe Ranweiler David Werschay and Howie Zetah
We will keep you updated on news from DLI about the new codes timeline BAM will be releasing the field guides starting with the ldquoTop 20rdquo Residential and Energy Codes Field Guides at the end of the summer with the remainder released far in advance of the January 24 2015 code enforcement date
President Chad Kompelein
Builder VPKC Chermak
Associate VPGeorge Cundy
President ElectMike Paradise
TreasurerGerry Traut
SecretaryKurt Welker
Past PresidentKeith Kylmala
NAHB RepresentativeKathe Ostrom
WwwRochesterAreaBuilderscomJuly 2014 | 15
Committee UpdatesEDUCATION COMMITTEECHAIRPERSON VACANT
This committee is currently meeting to plan our education seminars for this winter The first round of CE classes to continue holding your Lead Certification is this year We will be offering these classes later this Fall for members renewing Lead Certification in December and again in the Winter for those renewing in April 2015 Regular CE credit classes will be held in January and February If you have any suggestions for presentations or speakers please call the office and talk to Rebekah
Committee ChairpersonsAMBASSADORSGreg Hird First Alliance Credit UnionAWARDSTBABUILDING MAINTENANCETJ Schutz Advanced Building Center IncBUILDING SAFETY ADVISORYMickey Elias Elias Construction LLCCOMMUNITY RELATIONSTony Kunz Hillerrsquos Flooring AmericaDISPUTE RESOLUTIONJohn Kuntz Kuntz Electric IncEDUCATIONVacantEXECUTIVEKevin Worden Rochester Area Habitat for HumanityFASHION SHOWKaren Blissenbach Design Studio BFINANCECarla Kilpatrick Home Federal Savings BankGOLF OUTINGLindsey Rippentrop Olmsted National BankGOVERNMENT AFFAIRSJohn Eckerman The Boldt CompanyGREEN BUILDINGKelly OrsquoMarro XRG Concepts LLCHOME SHOW ndash 2013Jeff Kalmes Hillers Flooring AmericaMARKETINGRob Easthouse Electrical Solutions amp ServiceMEMBERSHIP amp RETENTIONDan Bochman Kruse LumberNOMINATINGKerk Johnson Schwickertrsquos Tecta America LLC PERSONNELKevin Worden Rochester Area Habitat for HumanityPROGRAMDan Plizga Weis Builders IncPUBLIC WORKS ADVISORYJeff Broberg McGhie amp Betts - a Division of WSB amp Associates IncSHOWCASE OF HOMESBrandon Vagt XRG Concepts LLCSPIKE CLUBJay Burke Heartwood Homes of Rochester IncSPORTING CLAYSJames Coyle Kane amp Johnson Architects Inc
CouncilsBER EXECUTIVE COMMITTEEJJ Webster Kraus-Anderson Construction CompanyCBC EXECUTIVE COMMITTEEChris Terry Knutson Construction ServicesDEVELOPMENT COUNCILJohn Sipple Rochester Area Appraisals LLCREMODELERS EXECUTIVE COMMITTEESam Peyton Kingrsquos Flooring LLCREMODELERS TOURKaren Blissenbach Design Studio B
wwwRochesterAreaBuilderscom16 | July 2014
July Summer OutingWednesday July 16th 6 - 8 PM
Wildwood Sports Bar amp Grill1517 16th Street SW Suite C
Program
Cost is $15 per person Seating will be limited More details will be coming soon
RemodelersRemodelersRemodelers
WwwRochesterAreaBuilderscomJuly 2014 | 17
WErsquoRE HERE TO HELP Natural gas is a great energy
value Xcel Energy can help you with all of your energy-related
building needs including natural gas and electric We even off er
rebates for qualifying natural gas appliances Contact us today
and fi nd out how we can help you
Visit xcelenergycomEnergyPartners today
call 1-800-628-2121 or fax 1-800-628-2521
ENERGYVALUEBESTHO
OK UP
with the
copy 2013 Xcel Energy Inc
xcelenergycomEnergyPartners
13-XCL-00255-B_MNB_HookUp(Combo)_73125x475_4c_LOindd 1 5613 321 PM
A special offer formembers onlyRegister now and save 2 on your Lowersquos Accounts Receivable
purchases Plus get free delivery on purchases of $500 or moredagger
To register visit LowesForProscomNAHB or call 877-435-2440
Offer is not automatic See store for detailsOffer valid now through 12312014 Cannot be combined with any other statement discount To be eligible for the 2 discount you must register your NAHB membership by 12312014 and make a purchase with your Lowersquos Accounts Receivable by 12312014 Allow one to two complete billing cycles for your registration to be processed and for your discount to appear on your billing statement Offer and discount provided by Lowersquos and not GE Capital Retail Bank Excludes Lowersquos Business Account Card Lowersquos Consumer Credit Card Lowersquos Visa Accounts Lowersquos Business Rewards from American Express Card and all Lowersquos Canada Credit projects Offer not valid on purchases made prior to registering NAHB membership at LowesForProscom Call 877-435-2440 for questions about this program All purchases subject to credit approval daggerStandard delivery rules apply copy2014 Lowersquos LOWErsquoS Gable Mansard Design are registered trademarks of LF LLC
Lowes_2014 NAHB-HALFPAGEindd 1 112613 1222 PM
wwwRochesterAreaBuilderscom18 | July 2014
2014 VALUATION 2013 VALUATION
New Residential Single Family Dwelling 25 5531411 28 7133572
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 19 107504 56 286615
Room Addition 3 278763 2 82000
Porch Additions 0 0 0 0
Other Additions 0 0 2 43200
Basement Finish 29 342255 27 371975
Alterations 50 516115 47 325798
Multi-Family Addition 0 0 1 810
Multi-Family Alterations 2 113000 16 169000 New Commercial Assembly (Church) 0 0 0 0
Assembly (General) 0 0 0 0
Assembly (RestaurantBar) 1 1561000 1 700000
Business 0 0 1 225000
Education 0 0 0 0
FactoryIndustrial 0 0 0 0
Institution 0 0 0 0
Mercantile 0 0 0 0
Miscelaneous 0 0 0 0
Utility (General) 1 130000 1 3850
Residential (CareAssisted Living) 0 0 0 0
Storage (General) 1 45000 0 0
Storage (Warehouse) 0 0 1 532594 Existing CommercialAddition 8 5812413 1 15406
Alterations 34 5984762 36 34644913
Structural Shell 0 0 0 0
ldquoWhite Boxrdquo 1 15000 0 0
Interior Demolition Only 3 48500 3 16706
Other Phased Permits 0 0 0 0
Other ConstructionBusiness Signs 15 106565 6 15224
Advertising Sign 1 18000 0 0
Footings amp Foundations 2 220000 11
Demolition 3 1
Rochester Building Permits April 2014
January 33 39 27 20 3 13 3 6 19 11
February 31 31 19 13 1 8 8 20 15 14
March 59 37 30 29 16 27 24 32 29 28
April 58 58 44 27 29 25 19 29 39 25
May 77 69 50 30 33 20 14 22 27 35
TOTAL 258 234 172 119 82 93 68 109 129 113
June 81 59 43 36 36 12 26 32 33
July 58 36 60 23 21 23 8 39 39
August 69 36 43 28 26 15 18 38 21
September 65 31 33 28 33 10 19 22 23
October 71 49 34 19 31 14 16 23 34
November 40 38 23 26 30 21 20 22 26
December 60 23 11 16 15 12 16 14 22
TOTAL 702 506 417 302 274 200 191 299 326 113
Single Family Homes
Year To Date Statistics 2014 2013 NO VALUATION NO VALUATION
Building Permits Issued to Date 881 147003028 825 100011030
Single Family Dwelling 109 26968957 130 30405563
Multi-Family Buildings Total Units 39 1 3702052 0 0
Trade Permits Issued to Date 2978 30568713 2326 27697853
Electrical 1050 13657783 878 15240984
Electrical (Temp Service) 103 30950 115 29700
Mechanical 731 6606354 685 6221377
Gas Piping 198 417331 185 141995
Fireplace 163 417589 148 344814
Hydronic System 69 3689975 50 1105942
Plumbing 664 5748731 653 4613041
Total Permits YTD 3859 177571741 3151 127708883
Information and downloads available at Rochester Building Safety Departmentrsquos Website httpwwwrochestermngovdepartmentsbldgsafetyreportsbuildingindexasp
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
total may differ as permits may have been voided
WwwRochesterAreaBuilderscomJuly 2014 | 19
Rochester Real EstateMonthly Housing DataMarch 2014
Monthly Housing Data March 2014 March 2013 Change
New Listings 311 320 -28Active Listings Year to Date
1087 1195 -90
Pending Listing 173 212 -184Sold Listings 128 144 -111Sold Listings Year to Date
312 342 -88
Median Sales Price (SOLD)
158000 153150 30
SOLD Days on Market (DOM)
81 100 -1900
Avg Year to Date (DOM)
86 110 -2182
Information and downloads available at South East Minnesota Association of REALTORSrsquo
Website httpsemnrealtorsorggeneralstats_market-trendshtml
Information Provided By
MARCH 2014
New Residential NUMBER VALUATION
Single Family Detached 8 1263500
New Commercial
Commercial 1 142000
Existing Residential
Deck Addition 15 55113
Basement Finish 1 3600
Alterations 2 5800
Accessory Building 1 5000
ByronBuilding Permits
MARCH 2014
New Residential NUMBER VALUATION
Single Family 3 402000
Existing Residential
Deck Addition 3 15000
Alterations 9 49000
Reroof 10 50000
Existing Commercial
Reroof 2 10000
Pine IslandBuilding Permits
wwwRochesterAreaBuilderscom20 | July 2014
Despite GDP growth stalling in Q1 due to the Polar Vortex slower inventory accumulation and mildly lower exports the economic recovery remains intact The anemic performance of the US economy from January through March was aberrant and the incoming employment manufacturing and consumer spending data all point to an economic pickup GDP growth the rest of the year should average 3 with growth in Q2 closer to 325 as the economy rebounds from the harsh winter In addition reduced fiscal drag from DC increased hiring and spending by state and local governments and increased corporate spending on plant and equipment suggest we are finally entering a period of faster growth
That said economically all is not well Wage growth remains anemic and while the unemployment rate is 63 down from 10 the fall is largely due to a decline in the labor force participation rate The ranks of the long-term unemployed remain elevated along with the number of those working part-time because they canrsquot find full time work Add to that average overtime hours that are remarkably high and termination rates that are very low and what you have are employers very reluctant to hire This situation cannot persist and of late job creation numbers have been on the upswing Therefore net job creation will rise from 200000month where it has been for the past year to 220000 or 225000 by year end and unemployment will probably fall to 61 I expect wage growth to start picking up steam in 2015
The biggest drag on the economy is housing After a promising first half of 2013 the housing market is at best flat While rising interest rates and home prices a lack of inventory and lots shortages of materials and labor and a lack of credit and first-
time buyers play a part weak household formation is the main culprit After averaging over 12 million in the years prior to the Great Recession household formations have been averaging 500000 since the end of the recession The good news - household formation will rise now that all eight million jobs lost during the recession have been finally made up We are no longer making up lost ground Because of this new single-family construction activity in 2014 will reach 700000 with multifamily adding 350000 while existing home sales should be down slightly from last year
As for inflation itrsquos benign No matter how measured there is no inflation to speak of in the US Commodity prices will remain well-behaved given weak demand due to economic slowing in China and weak growth in Europe and the developing nations Absent some sort of geopolitical crisis energy prices will remain where they are thanks to record US oil production As a result expect tapering to end in November and for the Federal Reserve to begin raising short-term interest rates by mid-2015 However long-term rates have bottomed and 10-yr Treasuries will end the year at about 3 as the economy steadily strengthens
In short the economy is improving and Q1 was a speed bump Long term rates will rise short-term rates will remain unchanged and housing will limp into 2015 with prices rising slightly Most critically household formation will strengthen and corporate state and local government spending will rise Lastly the likelihood of a recession during the next six months is virtually zero
Economic Forecast for 2nd Half of 2014 Increasing Momentum Reduced Headwinds
Elliot Eisenberg PhD
Elliot Eisenberg PhD is President of GraphsandLaughs LLC and can be reached at Elliotgraphsandlaughsnet His daily 70 word economics
and policy blog can be seen at wwwecon70com
WwwRochesterAreaBuilderscomJuly 2014 | 21
CUSTOM HOMES BY BRADLEY INCRochester MN 55901Phone 507- 358-8681Contact Brad Goeden
Builder MemberResidential Builder
Sponsored byNone Listed
MEMBERSHIPS PENDINGNONE
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 943
As of 53114
WE WELCOME THE FOLLOWING NEW MEMBERS IN MAY
Membership Information
Membership Renewals as of 53114
One Year
Alpha Video amp Audio 2013GulfEagle Supply 2013
Two to Four Years
The Design Connection 2012Hammer Homes Inc 2011Steel Constructors Inc 2011
Five to Nine Years
Kingrsquos Flooring LLC 2009Turtle Creek Construction Inc 2009The Blue Book of Building amp Construction 2007Bruce Bucknell Construction Inc 2006McGough Construction 2006Schoeppner Inc 2006Cravath Homes LLC dba Accessibility Solutions
2005
Prime Time Painting of Rochester LLC 2005Ten to 19 Years
Elcor Realty of Rochester Inc 2004RJ Manemann Custom Homes 2004DMC Plumbing amp Heating Inc 2003Fairway Outdoor Advertising LLC 2003Innovative Surfaces Inc 2002Design Studio B 2001SL Contracting 1998
25 Years amp More
Hentges Glass Company 1991Larson Siding amp Windows 1986Merit Contracting Inc 1982Sargentrsquos Landscape Nursery Inc 1977CO Brown Agency 1970Holt Title Guaranty Company Inc 1958Palmer Soderberg Inc 1958
NEW APPLICANTS
ULTIMATE SURFACES1233 Eastgate Drive SERochester MN 55904Phone 507- 258-5439Contact Tony Heintz
Associate MemberFabricator
Sponsored bySam Peyton Kingrsquos Flooring LLC
wwwRochesterAreaBuilderscom22 | July 2014
Put your membershipto work nowMoney-saving discounts that benefit yourbusiness your employees and your family
wwwnahborgMA
National Association of Home Builders
R
WwwRochesterAreaBuilderscomJuly 2014 | 13
For this monthrsquos ldquoHey Matt Whatrsquos Up With Thatrdquo we are talking about Subcontractor Registration and sump pumps
ldquoHey Matt whatrsquos up with Subcontractor Registrationrdquo
This legislative session a pilot program by the Department of Labor and Industry (DLI) was codified into law making it binding upon all contractors in Minnesota The program aims to crack down on subcontractors not registering with DLI and claiming independent contractor status to get around some workers compensation laws
The program works like this if a subcontractor is not registered with DLI and does not fulfill the 9 factor test for being an independent contractor DLI fines the general contractor We fought this law during the legislative session and thankfully we received a one-time hall pass That means that the first time that a general contractor hires a subcontractor that is not registered with DLI they will not be fined This is something we fought for when we saw the writing on the wall that this would become law
Going forward subcontractors make sure you are registered with DLI It may affect your ability to work for certain GCs And GCs the onus is on YOU to make sure the subs you hire are registered You can check with DLI on their website using a nifty little search tool RAB will be running our membership list through DLIrsquos registered contractors list and we will be contacting those who arenrsquot registered to give them a friendly reminder
ldquoHey Matt I hear a lot of people talking about Sump Pumps all of a sudden Whatrsquos up with thatrdquo
What a wet spring so far With so much water falling from the sky and soaking the ground its no surprise that sump pumps have become a topic of discussion Recently RAB was reminded by the building safety department of Rochester that if you have a sump basket in a house there must be a discharge line installed and a pump placed in the basket This is a part of the Minnesota state building code The building safety department explained that they are running into a lot of homes with baskets installed that have no discharge line or pump in the basket
We have also heard concerns from some builders that they can put a pump in the sump basket but if it doesnrsquot run for over 6 months it will seize up and not work when needed Homeowners make sure to follow the manufacturerrsquos instructions for maintenance on these sump pumps The most common maintenance step for these pumps is to ocasionally pour water into the sump basket during the winter and let the pump run This is an important step to make sure your basement doesnrsquot become a wading pool
Thanks to the members who sent me these questions for this monthrsquos edition of ldquoHey Whatrsquos up with Thatrdquo As always if you have a question about anything you find interesting or confusing during your work day give me a call or send an email and hopefully I can find out the answer for you
Matt
Oh and one more thing
ldquoHey Matt did you put a ring on itrdquo
Yes itrsquos true Matt proposed to and more importantly was accepted by his now fiance Loryn Meloy Congratualtions to the happy couple
wwwRochesterAreaBuilderscom14 | July 2014
What Wersquore Doing For YouCWGQ Insurance
TBG Insurance
Gov Relations
Legal Action
Education
Online Forums
Action Center
Energy Payback
Visit wwwbamnorg and log-in to the Members Only site for more information on these BAM initiatives
BUILDERSASSOCIATION OF MINNESOTA
T 6516467959T 8006547783W wwwbamnorg
Executive Committee
BAM Update June 2014
The Minnesota Department of Labor and Industry (DLI) has stated they plan to start enforcing the new Minnesota Building Code in January of 2015 They have not yet released the final version of the code so we donrsquot know exactly what will be included However based on what is known the Builders Association of Minnesota (BAM) is working to provide members with code guides with a planned release date near the end of August 2014
BAM has contracted with Ed VonThoma of Building Knowledge Inc and has assembled a group of statewide members to create and vet the following code guide documentsbull Top 20 Code Changes in the Residential Building Codebull Top 20 Code Changes in the Energy Codebull Field Guide to Residential Code bull Field Guide to Energy Code bull Field Guide to Radon bull Field Guide to Foundation Wall Support bull Field Guide to Residential Fire Sprinklers
These guides are a major benefit of membership and available ONLY to members DLI issues the codes but BAM is the organization that develops guides on how to implement the new codes BAM will be providing members with access to each of these seven documents The documents will be available on the BAM website and optimized for both printing and easy viewing on your mobile devices out in the field These guides will form the basis for continuing education courses and BKI will be available to teach classes around the state to help members prepare to build to the new code
If you have industry peers that will benefit from having these guides tell them to join your local builders association and enjoy 3-in-1 membership to access BAMrsquos field guides and other value added benefits such as our home builidng industry specific construction contracts
Thank you to BAM members who are genersouly donating their time to help perfect the members-only guides Thank you to Daniel Buuck Clay Dietrich Jon Coty George Cundy Terry Hammack Chad Kompelien Keith Kylmala Kevin Maleska John McGuine Trace Mills Monte Mraz Kathe Ostrom Mike Paradise Craig Plekkenpol Joe Ranweiler David Werschay and Howie Zetah
We will keep you updated on news from DLI about the new codes timeline BAM will be releasing the field guides starting with the ldquoTop 20rdquo Residential and Energy Codes Field Guides at the end of the summer with the remainder released far in advance of the January 24 2015 code enforcement date
President Chad Kompelein
Builder VPKC Chermak
Associate VPGeorge Cundy
President ElectMike Paradise
TreasurerGerry Traut
SecretaryKurt Welker
Past PresidentKeith Kylmala
NAHB RepresentativeKathe Ostrom
WwwRochesterAreaBuilderscomJuly 2014 | 15
Committee UpdatesEDUCATION COMMITTEECHAIRPERSON VACANT
This committee is currently meeting to plan our education seminars for this winter The first round of CE classes to continue holding your Lead Certification is this year We will be offering these classes later this Fall for members renewing Lead Certification in December and again in the Winter for those renewing in April 2015 Regular CE credit classes will be held in January and February If you have any suggestions for presentations or speakers please call the office and talk to Rebekah
Committee ChairpersonsAMBASSADORSGreg Hird First Alliance Credit UnionAWARDSTBABUILDING MAINTENANCETJ Schutz Advanced Building Center IncBUILDING SAFETY ADVISORYMickey Elias Elias Construction LLCCOMMUNITY RELATIONSTony Kunz Hillerrsquos Flooring AmericaDISPUTE RESOLUTIONJohn Kuntz Kuntz Electric IncEDUCATIONVacantEXECUTIVEKevin Worden Rochester Area Habitat for HumanityFASHION SHOWKaren Blissenbach Design Studio BFINANCECarla Kilpatrick Home Federal Savings BankGOLF OUTINGLindsey Rippentrop Olmsted National BankGOVERNMENT AFFAIRSJohn Eckerman The Boldt CompanyGREEN BUILDINGKelly OrsquoMarro XRG Concepts LLCHOME SHOW ndash 2013Jeff Kalmes Hillers Flooring AmericaMARKETINGRob Easthouse Electrical Solutions amp ServiceMEMBERSHIP amp RETENTIONDan Bochman Kruse LumberNOMINATINGKerk Johnson Schwickertrsquos Tecta America LLC PERSONNELKevin Worden Rochester Area Habitat for HumanityPROGRAMDan Plizga Weis Builders IncPUBLIC WORKS ADVISORYJeff Broberg McGhie amp Betts - a Division of WSB amp Associates IncSHOWCASE OF HOMESBrandon Vagt XRG Concepts LLCSPIKE CLUBJay Burke Heartwood Homes of Rochester IncSPORTING CLAYSJames Coyle Kane amp Johnson Architects Inc
CouncilsBER EXECUTIVE COMMITTEEJJ Webster Kraus-Anderson Construction CompanyCBC EXECUTIVE COMMITTEEChris Terry Knutson Construction ServicesDEVELOPMENT COUNCILJohn Sipple Rochester Area Appraisals LLCREMODELERS EXECUTIVE COMMITTEESam Peyton Kingrsquos Flooring LLCREMODELERS TOURKaren Blissenbach Design Studio B
wwwRochesterAreaBuilderscom16 | July 2014
July Summer OutingWednesday July 16th 6 - 8 PM
Wildwood Sports Bar amp Grill1517 16th Street SW Suite C
Program
Cost is $15 per person Seating will be limited More details will be coming soon
RemodelersRemodelersRemodelers
WwwRochesterAreaBuilderscomJuly 2014 | 17
WErsquoRE HERE TO HELP Natural gas is a great energy
value Xcel Energy can help you with all of your energy-related
building needs including natural gas and electric We even off er
rebates for qualifying natural gas appliances Contact us today
and fi nd out how we can help you
Visit xcelenergycomEnergyPartners today
call 1-800-628-2121 or fax 1-800-628-2521
ENERGYVALUEBESTHO
OK UP
with the
copy 2013 Xcel Energy Inc
xcelenergycomEnergyPartners
13-XCL-00255-B_MNB_HookUp(Combo)_73125x475_4c_LOindd 1 5613 321 PM
A special offer formembers onlyRegister now and save 2 on your Lowersquos Accounts Receivable
purchases Plus get free delivery on purchases of $500 or moredagger
To register visit LowesForProscomNAHB or call 877-435-2440
Offer is not automatic See store for detailsOffer valid now through 12312014 Cannot be combined with any other statement discount To be eligible for the 2 discount you must register your NAHB membership by 12312014 and make a purchase with your Lowersquos Accounts Receivable by 12312014 Allow one to two complete billing cycles for your registration to be processed and for your discount to appear on your billing statement Offer and discount provided by Lowersquos and not GE Capital Retail Bank Excludes Lowersquos Business Account Card Lowersquos Consumer Credit Card Lowersquos Visa Accounts Lowersquos Business Rewards from American Express Card and all Lowersquos Canada Credit projects Offer not valid on purchases made prior to registering NAHB membership at LowesForProscom Call 877-435-2440 for questions about this program All purchases subject to credit approval daggerStandard delivery rules apply copy2014 Lowersquos LOWErsquoS Gable Mansard Design are registered trademarks of LF LLC
Lowes_2014 NAHB-HALFPAGEindd 1 112613 1222 PM
wwwRochesterAreaBuilderscom18 | July 2014
2014 VALUATION 2013 VALUATION
New Residential Single Family Dwelling 25 5531411 28 7133572
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 19 107504 56 286615
Room Addition 3 278763 2 82000
Porch Additions 0 0 0 0
Other Additions 0 0 2 43200
Basement Finish 29 342255 27 371975
Alterations 50 516115 47 325798
Multi-Family Addition 0 0 1 810
Multi-Family Alterations 2 113000 16 169000 New Commercial Assembly (Church) 0 0 0 0
Assembly (General) 0 0 0 0
Assembly (RestaurantBar) 1 1561000 1 700000
Business 0 0 1 225000
Education 0 0 0 0
FactoryIndustrial 0 0 0 0
Institution 0 0 0 0
Mercantile 0 0 0 0
Miscelaneous 0 0 0 0
Utility (General) 1 130000 1 3850
Residential (CareAssisted Living) 0 0 0 0
Storage (General) 1 45000 0 0
Storage (Warehouse) 0 0 1 532594 Existing CommercialAddition 8 5812413 1 15406
Alterations 34 5984762 36 34644913
Structural Shell 0 0 0 0
ldquoWhite Boxrdquo 1 15000 0 0
Interior Demolition Only 3 48500 3 16706
Other Phased Permits 0 0 0 0
Other ConstructionBusiness Signs 15 106565 6 15224
Advertising Sign 1 18000 0 0
Footings amp Foundations 2 220000 11
Demolition 3 1
Rochester Building Permits April 2014
January 33 39 27 20 3 13 3 6 19 11
February 31 31 19 13 1 8 8 20 15 14
March 59 37 30 29 16 27 24 32 29 28
April 58 58 44 27 29 25 19 29 39 25
May 77 69 50 30 33 20 14 22 27 35
TOTAL 258 234 172 119 82 93 68 109 129 113
June 81 59 43 36 36 12 26 32 33
July 58 36 60 23 21 23 8 39 39
August 69 36 43 28 26 15 18 38 21
September 65 31 33 28 33 10 19 22 23
October 71 49 34 19 31 14 16 23 34
November 40 38 23 26 30 21 20 22 26
December 60 23 11 16 15 12 16 14 22
TOTAL 702 506 417 302 274 200 191 299 326 113
Single Family Homes
Year To Date Statistics 2014 2013 NO VALUATION NO VALUATION
Building Permits Issued to Date 881 147003028 825 100011030
Single Family Dwelling 109 26968957 130 30405563
Multi-Family Buildings Total Units 39 1 3702052 0 0
Trade Permits Issued to Date 2978 30568713 2326 27697853
Electrical 1050 13657783 878 15240984
Electrical (Temp Service) 103 30950 115 29700
Mechanical 731 6606354 685 6221377
Gas Piping 198 417331 185 141995
Fireplace 163 417589 148 344814
Hydronic System 69 3689975 50 1105942
Plumbing 664 5748731 653 4613041
Total Permits YTD 3859 177571741 3151 127708883
Information and downloads available at Rochester Building Safety Departmentrsquos Website httpwwwrochestermngovdepartmentsbldgsafetyreportsbuildingindexasp
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
total may differ as permits may have been voided
WwwRochesterAreaBuilderscomJuly 2014 | 19
Rochester Real EstateMonthly Housing DataMarch 2014
Monthly Housing Data March 2014 March 2013 Change
New Listings 311 320 -28Active Listings Year to Date
1087 1195 -90
Pending Listing 173 212 -184Sold Listings 128 144 -111Sold Listings Year to Date
312 342 -88
Median Sales Price (SOLD)
158000 153150 30
SOLD Days on Market (DOM)
81 100 -1900
Avg Year to Date (DOM)
86 110 -2182
Information and downloads available at South East Minnesota Association of REALTORSrsquo
Website httpsemnrealtorsorggeneralstats_market-trendshtml
Information Provided By
MARCH 2014
New Residential NUMBER VALUATION
Single Family Detached 8 1263500
New Commercial
Commercial 1 142000
Existing Residential
Deck Addition 15 55113
Basement Finish 1 3600
Alterations 2 5800
Accessory Building 1 5000
ByronBuilding Permits
MARCH 2014
New Residential NUMBER VALUATION
Single Family 3 402000
Existing Residential
Deck Addition 3 15000
Alterations 9 49000
Reroof 10 50000
Existing Commercial
Reroof 2 10000
Pine IslandBuilding Permits
wwwRochesterAreaBuilderscom20 | July 2014
Despite GDP growth stalling in Q1 due to the Polar Vortex slower inventory accumulation and mildly lower exports the economic recovery remains intact The anemic performance of the US economy from January through March was aberrant and the incoming employment manufacturing and consumer spending data all point to an economic pickup GDP growth the rest of the year should average 3 with growth in Q2 closer to 325 as the economy rebounds from the harsh winter In addition reduced fiscal drag from DC increased hiring and spending by state and local governments and increased corporate spending on plant and equipment suggest we are finally entering a period of faster growth
That said economically all is not well Wage growth remains anemic and while the unemployment rate is 63 down from 10 the fall is largely due to a decline in the labor force participation rate The ranks of the long-term unemployed remain elevated along with the number of those working part-time because they canrsquot find full time work Add to that average overtime hours that are remarkably high and termination rates that are very low and what you have are employers very reluctant to hire This situation cannot persist and of late job creation numbers have been on the upswing Therefore net job creation will rise from 200000month where it has been for the past year to 220000 or 225000 by year end and unemployment will probably fall to 61 I expect wage growth to start picking up steam in 2015
The biggest drag on the economy is housing After a promising first half of 2013 the housing market is at best flat While rising interest rates and home prices a lack of inventory and lots shortages of materials and labor and a lack of credit and first-
time buyers play a part weak household formation is the main culprit After averaging over 12 million in the years prior to the Great Recession household formations have been averaging 500000 since the end of the recession The good news - household formation will rise now that all eight million jobs lost during the recession have been finally made up We are no longer making up lost ground Because of this new single-family construction activity in 2014 will reach 700000 with multifamily adding 350000 while existing home sales should be down slightly from last year
As for inflation itrsquos benign No matter how measured there is no inflation to speak of in the US Commodity prices will remain well-behaved given weak demand due to economic slowing in China and weak growth in Europe and the developing nations Absent some sort of geopolitical crisis energy prices will remain where they are thanks to record US oil production As a result expect tapering to end in November and for the Federal Reserve to begin raising short-term interest rates by mid-2015 However long-term rates have bottomed and 10-yr Treasuries will end the year at about 3 as the economy steadily strengthens
In short the economy is improving and Q1 was a speed bump Long term rates will rise short-term rates will remain unchanged and housing will limp into 2015 with prices rising slightly Most critically household formation will strengthen and corporate state and local government spending will rise Lastly the likelihood of a recession during the next six months is virtually zero
Economic Forecast for 2nd Half of 2014 Increasing Momentum Reduced Headwinds
Elliot Eisenberg PhD
Elliot Eisenberg PhD is President of GraphsandLaughs LLC and can be reached at Elliotgraphsandlaughsnet His daily 70 word economics
and policy blog can be seen at wwwecon70com
WwwRochesterAreaBuilderscomJuly 2014 | 21
CUSTOM HOMES BY BRADLEY INCRochester MN 55901Phone 507- 358-8681Contact Brad Goeden
Builder MemberResidential Builder
Sponsored byNone Listed
MEMBERSHIPS PENDINGNONE
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 943
As of 53114
WE WELCOME THE FOLLOWING NEW MEMBERS IN MAY
Membership Information
Membership Renewals as of 53114
One Year
Alpha Video amp Audio 2013GulfEagle Supply 2013
Two to Four Years
The Design Connection 2012Hammer Homes Inc 2011Steel Constructors Inc 2011
Five to Nine Years
Kingrsquos Flooring LLC 2009Turtle Creek Construction Inc 2009The Blue Book of Building amp Construction 2007Bruce Bucknell Construction Inc 2006McGough Construction 2006Schoeppner Inc 2006Cravath Homes LLC dba Accessibility Solutions
2005
Prime Time Painting of Rochester LLC 2005Ten to 19 Years
Elcor Realty of Rochester Inc 2004RJ Manemann Custom Homes 2004DMC Plumbing amp Heating Inc 2003Fairway Outdoor Advertising LLC 2003Innovative Surfaces Inc 2002Design Studio B 2001SL Contracting 1998
25 Years amp More
Hentges Glass Company 1991Larson Siding amp Windows 1986Merit Contracting Inc 1982Sargentrsquos Landscape Nursery Inc 1977CO Brown Agency 1970Holt Title Guaranty Company Inc 1958Palmer Soderberg Inc 1958
NEW APPLICANTS
ULTIMATE SURFACES1233 Eastgate Drive SERochester MN 55904Phone 507- 258-5439Contact Tony Heintz
Associate MemberFabricator
Sponsored bySam Peyton Kingrsquos Flooring LLC
wwwRochesterAreaBuilderscom22 | July 2014
Put your membershipto work nowMoney-saving discounts that benefit yourbusiness your employees and your family
wwwnahborgMA
National Association of Home Builders
R
wwwRochesterAreaBuilderscom14 | July 2014
What Wersquore Doing For YouCWGQ Insurance
TBG Insurance
Gov Relations
Legal Action
Education
Online Forums
Action Center
Energy Payback
Visit wwwbamnorg and log-in to the Members Only site for more information on these BAM initiatives
BUILDERSASSOCIATION OF MINNESOTA
T 6516467959T 8006547783W wwwbamnorg
Executive Committee
BAM Update June 2014
The Minnesota Department of Labor and Industry (DLI) has stated they plan to start enforcing the new Minnesota Building Code in January of 2015 They have not yet released the final version of the code so we donrsquot know exactly what will be included However based on what is known the Builders Association of Minnesota (BAM) is working to provide members with code guides with a planned release date near the end of August 2014
BAM has contracted with Ed VonThoma of Building Knowledge Inc and has assembled a group of statewide members to create and vet the following code guide documentsbull Top 20 Code Changes in the Residential Building Codebull Top 20 Code Changes in the Energy Codebull Field Guide to Residential Code bull Field Guide to Energy Code bull Field Guide to Radon bull Field Guide to Foundation Wall Support bull Field Guide to Residential Fire Sprinklers
These guides are a major benefit of membership and available ONLY to members DLI issues the codes but BAM is the organization that develops guides on how to implement the new codes BAM will be providing members with access to each of these seven documents The documents will be available on the BAM website and optimized for both printing and easy viewing on your mobile devices out in the field These guides will form the basis for continuing education courses and BKI will be available to teach classes around the state to help members prepare to build to the new code
If you have industry peers that will benefit from having these guides tell them to join your local builders association and enjoy 3-in-1 membership to access BAMrsquos field guides and other value added benefits such as our home builidng industry specific construction contracts
Thank you to BAM members who are genersouly donating their time to help perfect the members-only guides Thank you to Daniel Buuck Clay Dietrich Jon Coty George Cundy Terry Hammack Chad Kompelien Keith Kylmala Kevin Maleska John McGuine Trace Mills Monte Mraz Kathe Ostrom Mike Paradise Craig Plekkenpol Joe Ranweiler David Werschay and Howie Zetah
We will keep you updated on news from DLI about the new codes timeline BAM will be releasing the field guides starting with the ldquoTop 20rdquo Residential and Energy Codes Field Guides at the end of the summer with the remainder released far in advance of the January 24 2015 code enforcement date
President Chad Kompelein
Builder VPKC Chermak
Associate VPGeorge Cundy
President ElectMike Paradise
TreasurerGerry Traut
SecretaryKurt Welker
Past PresidentKeith Kylmala
NAHB RepresentativeKathe Ostrom
WwwRochesterAreaBuilderscomJuly 2014 | 15
Committee UpdatesEDUCATION COMMITTEECHAIRPERSON VACANT
This committee is currently meeting to plan our education seminars for this winter The first round of CE classes to continue holding your Lead Certification is this year We will be offering these classes later this Fall for members renewing Lead Certification in December and again in the Winter for those renewing in April 2015 Regular CE credit classes will be held in January and February If you have any suggestions for presentations or speakers please call the office and talk to Rebekah
Committee ChairpersonsAMBASSADORSGreg Hird First Alliance Credit UnionAWARDSTBABUILDING MAINTENANCETJ Schutz Advanced Building Center IncBUILDING SAFETY ADVISORYMickey Elias Elias Construction LLCCOMMUNITY RELATIONSTony Kunz Hillerrsquos Flooring AmericaDISPUTE RESOLUTIONJohn Kuntz Kuntz Electric IncEDUCATIONVacantEXECUTIVEKevin Worden Rochester Area Habitat for HumanityFASHION SHOWKaren Blissenbach Design Studio BFINANCECarla Kilpatrick Home Federal Savings BankGOLF OUTINGLindsey Rippentrop Olmsted National BankGOVERNMENT AFFAIRSJohn Eckerman The Boldt CompanyGREEN BUILDINGKelly OrsquoMarro XRG Concepts LLCHOME SHOW ndash 2013Jeff Kalmes Hillers Flooring AmericaMARKETINGRob Easthouse Electrical Solutions amp ServiceMEMBERSHIP amp RETENTIONDan Bochman Kruse LumberNOMINATINGKerk Johnson Schwickertrsquos Tecta America LLC PERSONNELKevin Worden Rochester Area Habitat for HumanityPROGRAMDan Plizga Weis Builders IncPUBLIC WORKS ADVISORYJeff Broberg McGhie amp Betts - a Division of WSB amp Associates IncSHOWCASE OF HOMESBrandon Vagt XRG Concepts LLCSPIKE CLUBJay Burke Heartwood Homes of Rochester IncSPORTING CLAYSJames Coyle Kane amp Johnson Architects Inc
CouncilsBER EXECUTIVE COMMITTEEJJ Webster Kraus-Anderson Construction CompanyCBC EXECUTIVE COMMITTEEChris Terry Knutson Construction ServicesDEVELOPMENT COUNCILJohn Sipple Rochester Area Appraisals LLCREMODELERS EXECUTIVE COMMITTEESam Peyton Kingrsquos Flooring LLCREMODELERS TOURKaren Blissenbach Design Studio B
wwwRochesterAreaBuilderscom16 | July 2014
July Summer OutingWednesday July 16th 6 - 8 PM
Wildwood Sports Bar amp Grill1517 16th Street SW Suite C
Program
Cost is $15 per person Seating will be limited More details will be coming soon
RemodelersRemodelersRemodelers
WwwRochesterAreaBuilderscomJuly 2014 | 17
WErsquoRE HERE TO HELP Natural gas is a great energy
value Xcel Energy can help you with all of your energy-related
building needs including natural gas and electric We even off er
rebates for qualifying natural gas appliances Contact us today
and fi nd out how we can help you
Visit xcelenergycomEnergyPartners today
call 1-800-628-2121 or fax 1-800-628-2521
ENERGYVALUEBESTHO
OK UP
with the
copy 2013 Xcel Energy Inc
xcelenergycomEnergyPartners
13-XCL-00255-B_MNB_HookUp(Combo)_73125x475_4c_LOindd 1 5613 321 PM
A special offer formembers onlyRegister now and save 2 on your Lowersquos Accounts Receivable
purchases Plus get free delivery on purchases of $500 or moredagger
To register visit LowesForProscomNAHB or call 877-435-2440
Offer is not automatic See store for detailsOffer valid now through 12312014 Cannot be combined with any other statement discount To be eligible for the 2 discount you must register your NAHB membership by 12312014 and make a purchase with your Lowersquos Accounts Receivable by 12312014 Allow one to two complete billing cycles for your registration to be processed and for your discount to appear on your billing statement Offer and discount provided by Lowersquos and not GE Capital Retail Bank Excludes Lowersquos Business Account Card Lowersquos Consumer Credit Card Lowersquos Visa Accounts Lowersquos Business Rewards from American Express Card and all Lowersquos Canada Credit projects Offer not valid on purchases made prior to registering NAHB membership at LowesForProscom Call 877-435-2440 for questions about this program All purchases subject to credit approval daggerStandard delivery rules apply copy2014 Lowersquos LOWErsquoS Gable Mansard Design are registered trademarks of LF LLC
Lowes_2014 NAHB-HALFPAGEindd 1 112613 1222 PM
wwwRochesterAreaBuilderscom18 | July 2014
2014 VALUATION 2013 VALUATION
New Residential Single Family Dwelling 25 5531411 28 7133572
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 19 107504 56 286615
Room Addition 3 278763 2 82000
Porch Additions 0 0 0 0
Other Additions 0 0 2 43200
Basement Finish 29 342255 27 371975
Alterations 50 516115 47 325798
Multi-Family Addition 0 0 1 810
Multi-Family Alterations 2 113000 16 169000 New Commercial Assembly (Church) 0 0 0 0
Assembly (General) 0 0 0 0
Assembly (RestaurantBar) 1 1561000 1 700000
Business 0 0 1 225000
Education 0 0 0 0
FactoryIndustrial 0 0 0 0
Institution 0 0 0 0
Mercantile 0 0 0 0
Miscelaneous 0 0 0 0
Utility (General) 1 130000 1 3850
Residential (CareAssisted Living) 0 0 0 0
Storage (General) 1 45000 0 0
Storage (Warehouse) 0 0 1 532594 Existing CommercialAddition 8 5812413 1 15406
Alterations 34 5984762 36 34644913
Structural Shell 0 0 0 0
ldquoWhite Boxrdquo 1 15000 0 0
Interior Demolition Only 3 48500 3 16706
Other Phased Permits 0 0 0 0
Other ConstructionBusiness Signs 15 106565 6 15224
Advertising Sign 1 18000 0 0
Footings amp Foundations 2 220000 11
Demolition 3 1
Rochester Building Permits April 2014
January 33 39 27 20 3 13 3 6 19 11
February 31 31 19 13 1 8 8 20 15 14
March 59 37 30 29 16 27 24 32 29 28
April 58 58 44 27 29 25 19 29 39 25
May 77 69 50 30 33 20 14 22 27 35
TOTAL 258 234 172 119 82 93 68 109 129 113
June 81 59 43 36 36 12 26 32 33
July 58 36 60 23 21 23 8 39 39
August 69 36 43 28 26 15 18 38 21
September 65 31 33 28 33 10 19 22 23
October 71 49 34 19 31 14 16 23 34
November 40 38 23 26 30 21 20 22 26
December 60 23 11 16 15 12 16 14 22
TOTAL 702 506 417 302 274 200 191 299 326 113
Single Family Homes
Year To Date Statistics 2014 2013 NO VALUATION NO VALUATION
Building Permits Issued to Date 881 147003028 825 100011030
Single Family Dwelling 109 26968957 130 30405563
Multi-Family Buildings Total Units 39 1 3702052 0 0
Trade Permits Issued to Date 2978 30568713 2326 27697853
Electrical 1050 13657783 878 15240984
Electrical (Temp Service) 103 30950 115 29700
Mechanical 731 6606354 685 6221377
Gas Piping 198 417331 185 141995
Fireplace 163 417589 148 344814
Hydronic System 69 3689975 50 1105942
Plumbing 664 5748731 653 4613041
Total Permits YTD 3859 177571741 3151 127708883
Information and downloads available at Rochester Building Safety Departmentrsquos Website httpwwwrochestermngovdepartmentsbldgsafetyreportsbuildingindexasp
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
total may differ as permits may have been voided
WwwRochesterAreaBuilderscomJuly 2014 | 19
Rochester Real EstateMonthly Housing DataMarch 2014
Monthly Housing Data March 2014 March 2013 Change
New Listings 311 320 -28Active Listings Year to Date
1087 1195 -90
Pending Listing 173 212 -184Sold Listings 128 144 -111Sold Listings Year to Date
312 342 -88
Median Sales Price (SOLD)
158000 153150 30
SOLD Days on Market (DOM)
81 100 -1900
Avg Year to Date (DOM)
86 110 -2182
Information and downloads available at South East Minnesota Association of REALTORSrsquo
Website httpsemnrealtorsorggeneralstats_market-trendshtml
Information Provided By
MARCH 2014
New Residential NUMBER VALUATION
Single Family Detached 8 1263500
New Commercial
Commercial 1 142000
Existing Residential
Deck Addition 15 55113
Basement Finish 1 3600
Alterations 2 5800
Accessory Building 1 5000
ByronBuilding Permits
MARCH 2014
New Residential NUMBER VALUATION
Single Family 3 402000
Existing Residential
Deck Addition 3 15000
Alterations 9 49000
Reroof 10 50000
Existing Commercial
Reroof 2 10000
Pine IslandBuilding Permits
wwwRochesterAreaBuilderscom20 | July 2014
Despite GDP growth stalling in Q1 due to the Polar Vortex slower inventory accumulation and mildly lower exports the economic recovery remains intact The anemic performance of the US economy from January through March was aberrant and the incoming employment manufacturing and consumer spending data all point to an economic pickup GDP growth the rest of the year should average 3 with growth in Q2 closer to 325 as the economy rebounds from the harsh winter In addition reduced fiscal drag from DC increased hiring and spending by state and local governments and increased corporate spending on plant and equipment suggest we are finally entering a period of faster growth
That said economically all is not well Wage growth remains anemic and while the unemployment rate is 63 down from 10 the fall is largely due to a decline in the labor force participation rate The ranks of the long-term unemployed remain elevated along with the number of those working part-time because they canrsquot find full time work Add to that average overtime hours that are remarkably high and termination rates that are very low and what you have are employers very reluctant to hire This situation cannot persist and of late job creation numbers have been on the upswing Therefore net job creation will rise from 200000month where it has been for the past year to 220000 or 225000 by year end and unemployment will probably fall to 61 I expect wage growth to start picking up steam in 2015
The biggest drag on the economy is housing After a promising first half of 2013 the housing market is at best flat While rising interest rates and home prices a lack of inventory and lots shortages of materials and labor and a lack of credit and first-
time buyers play a part weak household formation is the main culprit After averaging over 12 million in the years prior to the Great Recession household formations have been averaging 500000 since the end of the recession The good news - household formation will rise now that all eight million jobs lost during the recession have been finally made up We are no longer making up lost ground Because of this new single-family construction activity in 2014 will reach 700000 with multifamily adding 350000 while existing home sales should be down slightly from last year
As for inflation itrsquos benign No matter how measured there is no inflation to speak of in the US Commodity prices will remain well-behaved given weak demand due to economic slowing in China and weak growth in Europe and the developing nations Absent some sort of geopolitical crisis energy prices will remain where they are thanks to record US oil production As a result expect tapering to end in November and for the Federal Reserve to begin raising short-term interest rates by mid-2015 However long-term rates have bottomed and 10-yr Treasuries will end the year at about 3 as the economy steadily strengthens
In short the economy is improving and Q1 was a speed bump Long term rates will rise short-term rates will remain unchanged and housing will limp into 2015 with prices rising slightly Most critically household formation will strengthen and corporate state and local government spending will rise Lastly the likelihood of a recession during the next six months is virtually zero
Economic Forecast for 2nd Half of 2014 Increasing Momentum Reduced Headwinds
Elliot Eisenberg PhD
Elliot Eisenberg PhD is President of GraphsandLaughs LLC and can be reached at Elliotgraphsandlaughsnet His daily 70 word economics
and policy blog can be seen at wwwecon70com
WwwRochesterAreaBuilderscomJuly 2014 | 21
CUSTOM HOMES BY BRADLEY INCRochester MN 55901Phone 507- 358-8681Contact Brad Goeden
Builder MemberResidential Builder
Sponsored byNone Listed
MEMBERSHIPS PENDINGNONE
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 943
As of 53114
WE WELCOME THE FOLLOWING NEW MEMBERS IN MAY
Membership Information
Membership Renewals as of 53114
One Year
Alpha Video amp Audio 2013GulfEagle Supply 2013
Two to Four Years
The Design Connection 2012Hammer Homes Inc 2011Steel Constructors Inc 2011
Five to Nine Years
Kingrsquos Flooring LLC 2009Turtle Creek Construction Inc 2009The Blue Book of Building amp Construction 2007Bruce Bucknell Construction Inc 2006McGough Construction 2006Schoeppner Inc 2006Cravath Homes LLC dba Accessibility Solutions
2005
Prime Time Painting of Rochester LLC 2005Ten to 19 Years
Elcor Realty of Rochester Inc 2004RJ Manemann Custom Homes 2004DMC Plumbing amp Heating Inc 2003Fairway Outdoor Advertising LLC 2003Innovative Surfaces Inc 2002Design Studio B 2001SL Contracting 1998
25 Years amp More
Hentges Glass Company 1991Larson Siding amp Windows 1986Merit Contracting Inc 1982Sargentrsquos Landscape Nursery Inc 1977CO Brown Agency 1970Holt Title Guaranty Company Inc 1958Palmer Soderberg Inc 1958
NEW APPLICANTS
ULTIMATE SURFACES1233 Eastgate Drive SERochester MN 55904Phone 507- 258-5439Contact Tony Heintz
Associate MemberFabricator
Sponsored bySam Peyton Kingrsquos Flooring LLC
wwwRochesterAreaBuilderscom22 | July 2014
Put your membershipto work nowMoney-saving discounts that benefit yourbusiness your employees and your family
wwwnahborgMA
National Association of Home Builders
R
WwwRochesterAreaBuilderscomJuly 2014 | 15
Committee UpdatesEDUCATION COMMITTEECHAIRPERSON VACANT
This committee is currently meeting to plan our education seminars for this winter The first round of CE classes to continue holding your Lead Certification is this year We will be offering these classes later this Fall for members renewing Lead Certification in December and again in the Winter for those renewing in April 2015 Regular CE credit classes will be held in January and February If you have any suggestions for presentations or speakers please call the office and talk to Rebekah
Committee ChairpersonsAMBASSADORSGreg Hird First Alliance Credit UnionAWARDSTBABUILDING MAINTENANCETJ Schutz Advanced Building Center IncBUILDING SAFETY ADVISORYMickey Elias Elias Construction LLCCOMMUNITY RELATIONSTony Kunz Hillerrsquos Flooring AmericaDISPUTE RESOLUTIONJohn Kuntz Kuntz Electric IncEDUCATIONVacantEXECUTIVEKevin Worden Rochester Area Habitat for HumanityFASHION SHOWKaren Blissenbach Design Studio BFINANCECarla Kilpatrick Home Federal Savings BankGOLF OUTINGLindsey Rippentrop Olmsted National BankGOVERNMENT AFFAIRSJohn Eckerman The Boldt CompanyGREEN BUILDINGKelly OrsquoMarro XRG Concepts LLCHOME SHOW ndash 2013Jeff Kalmes Hillers Flooring AmericaMARKETINGRob Easthouse Electrical Solutions amp ServiceMEMBERSHIP amp RETENTIONDan Bochman Kruse LumberNOMINATINGKerk Johnson Schwickertrsquos Tecta America LLC PERSONNELKevin Worden Rochester Area Habitat for HumanityPROGRAMDan Plizga Weis Builders IncPUBLIC WORKS ADVISORYJeff Broberg McGhie amp Betts - a Division of WSB amp Associates IncSHOWCASE OF HOMESBrandon Vagt XRG Concepts LLCSPIKE CLUBJay Burke Heartwood Homes of Rochester IncSPORTING CLAYSJames Coyle Kane amp Johnson Architects Inc
CouncilsBER EXECUTIVE COMMITTEEJJ Webster Kraus-Anderson Construction CompanyCBC EXECUTIVE COMMITTEEChris Terry Knutson Construction ServicesDEVELOPMENT COUNCILJohn Sipple Rochester Area Appraisals LLCREMODELERS EXECUTIVE COMMITTEESam Peyton Kingrsquos Flooring LLCREMODELERS TOURKaren Blissenbach Design Studio B
wwwRochesterAreaBuilderscom16 | July 2014
July Summer OutingWednesday July 16th 6 - 8 PM
Wildwood Sports Bar amp Grill1517 16th Street SW Suite C
Program
Cost is $15 per person Seating will be limited More details will be coming soon
RemodelersRemodelersRemodelers
WwwRochesterAreaBuilderscomJuly 2014 | 17
WErsquoRE HERE TO HELP Natural gas is a great energy
value Xcel Energy can help you with all of your energy-related
building needs including natural gas and electric We even off er
rebates for qualifying natural gas appliances Contact us today
and fi nd out how we can help you
Visit xcelenergycomEnergyPartners today
call 1-800-628-2121 or fax 1-800-628-2521
ENERGYVALUEBESTHO
OK UP
with the
copy 2013 Xcel Energy Inc
xcelenergycomEnergyPartners
13-XCL-00255-B_MNB_HookUp(Combo)_73125x475_4c_LOindd 1 5613 321 PM
A special offer formembers onlyRegister now and save 2 on your Lowersquos Accounts Receivable
purchases Plus get free delivery on purchases of $500 or moredagger
To register visit LowesForProscomNAHB or call 877-435-2440
Offer is not automatic See store for detailsOffer valid now through 12312014 Cannot be combined with any other statement discount To be eligible for the 2 discount you must register your NAHB membership by 12312014 and make a purchase with your Lowersquos Accounts Receivable by 12312014 Allow one to two complete billing cycles for your registration to be processed and for your discount to appear on your billing statement Offer and discount provided by Lowersquos and not GE Capital Retail Bank Excludes Lowersquos Business Account Card Lowersquos Consumer Credit Card Lowersquos Visa Accounts Lowersquos Business Rewards from American Express Card and all Lowersquos Canada Credit projects Offer not valid on purchases made prior to registering NAHB membership at LowesForProscom Call 877-435-2440 for questions about this program All purchases subject to credit approval daggerStandard delivery rules apply copy2014 Lowersquos LOWErsquoS Gable Mansard Design are registered trademarks of LF LLC
Lowes_2014 NAHB-HALFPAGEindd 1 112613 1222 PM
wwwRochesterAreaBuilderscom18 | July 2014
2014 VALUATION 2013 VALUATION
New Residential Single Family Dwelling 25 5531411 28 7133572
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 19 107504 56 286615
Room Addition 3 278763 2 82000
Porch Additions 0 0 0 0
Other Additions 0 0 2 43200
Basement Finish 29 342255 27 371975
Alterations 50 516115 47 325798
Multi-Family Addition 0 0 1 810
Multi-Family Alterations 2 113000 16 169000 New Commercial Assembly (Church) 0 0 0 0
Assembly (General) 0 0 0 0
Assembly (RestaurantBar) 1 1561000 1 700000
Business 0 0 1 225000
Education 0 0 0 0
FactoryIndustrial 0 0 0 0
Institution 0 0 0 0
Mercantile 0 0 0 0
Miscelaneous 0 0 0 0
Utility (General) 1 130000 1 3850
Residential (CareAssisted Living) 0 0 0 0
Storage (General) 1 45000 0 0
Storage (Warehouse) 0 0 1 532594 Existing CommercialAddition 8 5812413 1 15406
Alterations 34 5984762 36 34644913
Structural Shell 0 0 0 0
ldquoWhite Boxrdquo 1 15000 0 0
Interior Demolition Only 3 48500 3 16706
Other Phased Permits 0 0 0 0
Other ConstructionBusiness Signs 15 106565 6 15224
Advertising Sign 1 18000 0 0
Footings amp Foundations 2 220000 11
Demolition 3 1
Rochester Building Permits April 2014
January 33 39 27 20 3 13 3 6 19 11
February 31 31 19 13 1 8 8 20 15 14
March 59 37 30 29 16 27 24 32 29 28
April 58 58 44 27 29 25 19 29 39 25
May 77 69 50 30 33 20 14 22 27 35
TOTAL 258 234 172 119 82 93 68 109 129 113
June 81 59 43 36 36 12 26 32 33
July 58 36 60 23 21 23 8 39 39
August 69 36 43 28 26 15 18 38 21
September 65 31 33 28 33 10 19 22 23
October 71 49 34 19 31 14 16 23 34
November 40 38 23 26 30 21 20 22 26
December 60 23 11 16 15 12 16 14 22
TOTAL 702 506 417 302 274 200 191 299 326 113
Single Family Homes
Year To Date Statistics 2014 2013 NO VALUATION NO VALUATION
Building Permits Issued to Date 881 147003028 825 100011030
Single Family Dwelling 109 26968957 130 30405563
Multi-Family Buildings Total Units 39 1 3702052 0 0
Trade Permits Issued to Date 2978 30568713 2326 27697853
Electrical 1050 13657783 878 15240984
Electrical (Temp Service) 103 30950 115 29700
Mechanical 731 6606354 685 6221377
Gas Piping 198 417331 185 141995
Fireplace 163 417589 148 344814
Hydronic System 69 3689975 50 1105942
Plumbing 664 5748731 653 4613041
Total Permits YTD 3859 177571741 3151 127708883
Information and downloads available at Rochester Building Safety Departmentrsquos Website httpwwwrochestermngovdepartmentsbldgsafetyreportsbuildingindexasp
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
total may differ as permits may have been voided
WwwRochesterAreaBuilderscomJuly 2014 | 19
Rochester Real EstateMonthly Housing DataMarch 2014
Monthly Housing Data March 2014 March 2013 Change
New Listings 311 320 -28Active Listings Year to Date
1087 1195 -90
Pending Listing 173 212 -184Sold Listings 128 144 -111Sold Listings Year to Date
312 342 -88
Median Sales Price (SOLD)
158000 153150 30
SOLD Days on Market (DOM)
81 100 -1900
Avg Year to Date (DOM)
86 110 -2182
Information and downloads available at South East Minnesota Association of REALTORSrsquo
Website httpsemnrealtorsorggeneralstats_market-trendshtml
Information Provided By
MARCH 2014
New Residential NUMBER VALUATION
Single Family Detached 8 1263500
New Commercial
Commercial 1 142000
Existing Residential
Deck Addition 15 55113
Basement Finish 1 3600
Alterations 2 5800
Accessory Building 1 5000
ByronBuilding Permits
MARCH 2014
New Residential NUMBER VALUATION
Single Family 3 402000
Existing Residential
Deck Addition 3 15000
Alterations 9 49000
Reroof 10 50000
Existing Commercial
Reroof 2 10000
Pine IslandBuilding Permits
wwwRochesterAreaBuilderscom20 | July 2014
Despite GDP growth stalling in Q1 due to the Polar Vortex slower inventory accumulation and mildly lower exports the economic recovery remains intact The anemic performance of the US economy from January through March was aberrant and the incoming employment manufacturing and consumer spending data all point to an economic pickup GDP growth the rest of the year should average 3 with growth in Q2 closer to 325 as the economy rebounds from the harsh winter In addition reduced fiscal drag from DC increased hiring and spending by state and local governments and increased corporate spending on plant and equipment suggest we are finally entering a period of faster growth
That said economically all is not well Wage growth remains anemic and while the unemployment rate is 63 down from 10 the fall is largely due to a decline in the labor force participation rate The ranks of the long-term unemployed remain elevated along with the number of those working part-time because they canrsquot find full time work Add to that average overtime hours that are remarkably high and termination rates that are very low and what you have are employers very reluctant to hire This situation cannot persist and of late job creation numbers have been on the upswing Therefore net job creation will rise from 200000month where it has been for the past year to 220000 or 225000 by year end and unemployment will probably fall to 61 I expect wage growth to start picking up steam in 2015
The biggest drag on the economy is housing After a promising first half of 2013 the housing market is at best flat While rising interest rates and home prices a lack of inventory and lots shortages of materials and labor and a lack of credit and first-
time buyers play a part weak household formation is the main culprit After averaging over 12 million in the years prior to the Great Recession household formations have been averaging 500000 since the end of the recession The good news - household formation will rise now that all eight million jobs lost during the recession have been finally made up We are no longer making up lost ground Because of this new single-family construction activity in 2014 will reach 700000 with multifamily adding 350000 while existing home sales should be down slightly from last year
As for inflation itrsquos benign No matter how measured there is no inflation to speak of in the US Commodity prices will remain well-behaved given weak demand due to economic slowing in China and weak growth in Europe and the developing nations Absent some sort of geopolitical crisis energy prices will remain where they are thanks to record US oil production As a result expect tapering to end in November and for the Federal Reserve to begin raising short-term interest rates by mid-2015 However long-term rates have bottomed and 10-yr Treasuries will end the year at about 3 as the economy steadily strengthens
In short the economy is improving and Q1 was a speed bump Long term rates will rise short-term rates will remain unchanged and housing will limp into 2015 with prices rising slightly Most critically household formation will strengthen and corporate state and local government spending will rise Lastly the likelihood of a recession during the next six months is virtually zero
Economic Forecast for 2nd Half of 2014 Increasing Momentum Reduced Headwinds
Elliot Eisenberg PhD
Elliot Eisenberg PhD is President of GraphsandLaughs LLC and can be reached at Elliotgraphsandlaughsnet His daily 70 word economics
and policy blog can be seen at wwwecon70com
WwwRochesterAreaBuilderscomJuly 2014 | 21
CUSTOM HOMES BY BRADLEY INCRochester MN 55901Phone 507- 358-8681Contact Brad Goeden
Builder MemberResidential Builder
Sponsored byNone Listed
MEMBERSHIPS PENDINGNONE
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 943
As of 53114
WE WELCOME THE FOLLOWING NEW MEMBERS IN MAY
Membership Information
Membership Renewals as of 53114
One Year
Alpha Video amp Audio 2013GulfEagle Supply 2013
Two to Four Years
The Design Connection 2012Hammer Homes Inc 2011Steel Constructors Inc 2011
Five to Nine Years
Kingrsquos Flooring LLC 2009Turtle Creek Construction Inc 2009The Blue Book of Building amp Construction 2007Bruce Bucknell Construction Inc 2006McGough Construction 2006Schoeppner Inc 2006Cravath Homes LLC dba Accessibility Solutions
2005
Prime Time Painting of Rochester LLC 2005Ten to 19 Years
Elcor Realty of Rochester Inc 2004RJ Manemann Custom Homes 2004DMC Plumbing amp Heating Inc 2003Fairway Outdoor Advertising LLC 2003Innovative Surfaces Inc 2002Design Studio B 2001SL Contracting 1998
25 Years amp More
Hentges Glass Company 1991Larson Siding amp Windows 1986Merit Contracting Inc 1982Sargentrsquos Landscape Nursery Inc 1977CO Brown Agency 1970Holt Title Guaranty Company Inc 1958Palmer Soderberg Inc 1958
NEW APPLICANTS
ULTIMATE SURFACES1233 Eastgate Drive SERochester MN 55904Phone 507- 258-5439Contact Tony Heintz
Associate MemberFabricator
Sponsored bySam Peyton Kingrsquos Flooring LLC
wwwRochesterAreaBuilderscom22 | July 2014
Put your membershipto work nowMoney-saving discounts that benefit yourbusiness your employees and your family
wwwnahborgMA
National Association of Home Builders
R
wwwRochesterAreaBuilderscom16 | July 2014
July Summer OutingWednesday July 16th 6 - 8 PM
Wildwood Sports Bar amp Grill1517 16th Street SW Suite C
Program
Cost is $15 per person Seating will be limited More details will be coming soon
RemodelersRemodelersRemodelers
WwwRochesterAreaBuilderscomJuly 2014 | 17
WErsquoRE HERE TO HELP Natural gas is a great energy
value Xcel Energy can help you with all of your energy-related
building needs including natural gas and electric We even off er
rebates for qualifying natural gas appliances Contact us today
and fi nd out how we can help you
Visit xcelenergycomEnergyPartners today
call 1-800-628-2121 or fax 1-800-628-2521
ENERGYVALUEBESTHO
OK UP
with the
copy 2013 Xcel Energy Inc
xcelenergycomEnergyPartners
13-XCL-00255-B_MNB_HookUp(Combo)_73125x475_4c_LOindd 1 5613 321 PM
A special offer formembers onlyRegister now and save 2 on your Lowersquos Accounts Receivable
purchases Plus get free delivery on purchases of $500 or moredagger
To register visit LowesForProscomNAHB or call 877-435-2440
Offer is not automatic See store for detailsOffer valid now through 12312014 Cannot be combined with any other statement discount To be eligible for the 2 discount you must register your NAHB membership by 12312014 and make a purchase with your Lowersquos Accounts Receivable by 12312014 Allow one to two complete billing cycles for your registration to be processed and for your discount to appear on your billing statement Offer and discount provided by Lowersquos and not GE Capital Retail Bank Excludes Lowersquos Business Account Card Lowersquos Consumer Credit Card Lowersquos Visa Accounts Lowersquos Business Rewards from American Express Card and all Lowersquos Canada Credit projects Offer not valid on purchases made prior to registering NAHB membership at LowesForProscom Call 877-435-2440 for questions about this program All purchases subject to credit approval daggerStandard delivery rules apply copy2014 Lowersquos LOWErsquoS Gable Mansard Design are registered trademarks of LF LLC
Lowes_2014 NAHB-HALFPAGEindd 1 112613 1222 PM
wwwRochesterAreaBuilderscom18 | July 2014
2014 VALUATION 2013 VALUATION
New Residential Single Family Dwelling 25 5531411 28 7133572
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 19 107504 56 286615
Room Addition 3 278763 2 82000
Porch Additions 0 0 0 0
Other Additions 0 0 2 43200
Basement Finish 29 342255 27 371975
Alterations 50 516115 47 325798
Multi-Family Addition 0 0 1 810
Multi-Family Alterations 2 113000 16 169000 New Commercial Assembly (Church) 0 0 0 0
Assembly (General) 0 0 0 0
Assembly (RestaurantBar) 1 1561000 1 700000
Business 0 0 1 225000
Education 0 0 0 0
FactoryIndustrial 0 0 0 0
Institution 0 0 0 0
Mercantile 0 0 0 0
Miscelaneous 0 0 0 0
Utility (General) 1 130000 1 3850
Residential (CareAssisted Living) 0 0 0 0
Storage (General) 1 45000 0 0
Storage (Warehouse) 0 0 1 532594 Existing CommercialAddition 8 5812413 1 15406
Alterations 34 5984762 36 34644913
Structural Shell 0 0 0 0
ldquoWhite Boxrdquo 1 15000 0 0
Interior Demolition Only 3 48500 3 16706
Other Phased Permits 0 0 0 0
Other ConstructionBusiness Signs 15 106565 6 15224
Advertising Sign 1 18000 0 0
Footings amp Foundations 2 220000 11
Demolition 3 1
Rochester Building Permits April 2014
January 33 39 27 20 3 13 3 6 19 11
February 31 31 19 13 1 8 8 20 15 14
March 59 37 30 29 16 27 24 32 29 28
April 58 58 44 27 29 25 19 29 39 25
May 77 69 50 30 33 20 14 22 27 35
TOTAL 258 234 172 119 82 93 68 109 129 113
June 81 59 43 36 36 12 26 32 33
July 58 36 60 23 21 23 8 39 39
August 69 36 43 28 26 15 18 38 21
September 65 31 33 28 33 10 19 22 23
October 71 49 34 19 31 14 16 23 34
November 40 38 23 26 30 21 20 22 26
December 60 23 11 16 15 12 16 14 22
TOTAL 702 506 417 302 274 200 191 299 326 113
Single Family Homes
Year To Date Statistics 2014 2013 NO VALUATION NO VALUATION
Building Permits Issued to Date 881 147003028 825 100011030
Single Family Dwelling 109 26968957 130 30405563
Multi-Family Buildings Total Units 39 1 3702052 0 0
Trade Permits Issued to Date 2978 30568713 2326 27697853
Electrical 1050 13657783 878 15240984
Electrical (Temp Service) 103 30950 115 29700
Mechanical 731 6606354 685 6221377
Gas Piping 198 417331 185 141995
Fireplace 163 417589 148 344814
Hydronic System 69 3689975 50 1105942
Plumbing 664 5748731 653 4613041
Total Permits YTD 3859 177571741 3151 127708883
Information and downloads available at Rochester Building Safety Departmentrsquos Website httpwwwrochestermngovdepartmentsbldgsafetyreportsbuildingindexasp
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
total may differ as permits may have been voided
WwwRochesterAreaBuilderscomJuly 2014 | 19
Rochester Real EstateMonthly Housing DataMarch 2014
Monthly Housing Data March 2014 March 2013 Change
New Listings 311 320 -28Active Listings Year to Date
1087 1195 -90
Pending Listing 173 212 -184Sold Listings 128 144 -111Sold Listings Year to Date
312 342 -88
Median Sales Price (SOLD)
158000 153150 30
SOLD Days on Market (DOM)
81 100 -1900
Avg Year to Date (DOM)
86 110 -2182
Information and downloads available at South East Minnesota Association of REALTORSrsquo
Website httpsemnrealtorsorggeneralstats_market-trendshtml
Information Provided By
MARCH 2014
New Residential NUMBER VALUATION
Single Family Detached 8 1263500
New Commercial
Commercial 1 142000
Existing Residential
Deck Addition 15 55113
Basement Finish 1 3600
Alterations 2 5800
Accessory Building 1 5000
ByronBuilding Permits
MARCH 2014
New Residential NUMBER VALUATION
Single Family 3 402000
Existing Residential
Deck Addition 3 15000
Alterations 9 49000
Reroof 10 50000
Existing Commercial
Reroof 2 10000
Pine IslandBuilding Permits
wwwRochesterAreaBuilderscom20 | July 2014
Despite GDP growth stalling in Q1 due to the Polar Vortex slower inventory accumulation and mildly lower exports the economic recovery remains intact The anemic performance of the US economy from January through March was aberrant and the incoming employment manufacturing and consumer spending data all point to an economic pickup GDP growth the rest of the year should average 3 with growth in Q2 closer to 325 as the economy rebounds from the harsh winter In addition reduced fiscal drag from DC increased hiring and spending by state and local governments and increased corporate spending on plant and equipment suggest we are finally entering a period of faster growth
That said economically all is not well Wage growth remains anemic and while the unemployment rate is 63 down from 10 the fall is largely due to a decline in the labor force participation rate The ranks of the long-term unemployed remain elevated along with the number of those working part-time because they canrsquot find full time work Add to that average overtime hours that are remarkably high and termination rates that are very low and what you have are employers very reluctant to hire This situation cannot persist and of late job creation numbers have been on the upswing Therefore net job creation will rise from 200000month where it has been for the past year to 220000 or 225000 by year end and unemployment will probably fall to 61 I expect wage growth to start picking up steam in 2015
The biggest drag on the economy is housing After a promising first half of 2013 the housing market is at best flat While rising interest rates and home prices a lack of inventory and lots shortages of materials and labor and a lack of credit and first-
time buyers play a part weak household formation is the main culprit After averaging over 12 million in the years prior to the Great Recession household formations have been averaging 500000 since the end of the recession The good news - household formation will rise now that all eight million jobs lost during the recession have been finally made up We are no longer making up lost ground Because of this new single-family construction activity in 2014 will reach 700000 with multifamily adding 350000 while existing home sales should be down slightly from last year
As for inflation itrsquos benign No matter how measured there is no inflation to speak of in the US Commodity prices will remain well-behaved given weak demand due to economic slowing in China and weak growth in Europe and the developing nations Absent some sort of geopolitical crisis energy prices will remain where they are thanks to record US oil production As a result expect tapering to end in November and for the Federal Reserve to begin raising short-term interest rates by mid-2015 However long-term rates have bottomed and 10-yr Treasuries will end the year at about 3 as the economy steadily strengthens
In short the economy is improving and Q1 was a speed bump Long term rates will rise short-term rates will remain unchanged and housing will limp into 2015 with prices rising slightly Most critically household formation will strengthen and corporate state and local government spending will rise Lastly the likelihood of a recession during the next six months is virtually zero
Economic Forecast for 2nd Half of 2014 Increasing Momentum Reduced Headwinds
Elliot Eisenberg PhD
Elliot Eisenberg PhD is President of GraphsandLaughs LLC and can be reached at Elliotgraphsandlaughsnet His daily 70 word economics
and policy blog can be seen at wwwecon70com
WwwRochesterAreaBuilderscomJuly 2014 | 21
CUSTOM HOMES BY BRADLEY INCRochester MN 55901Phone 507- 358-8681Contact Brad Goeden
Builder MemberResidential Builder
Sponsored byNone Listed
MEMBERSHIPS PENDINGNONE
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 943
As of 53114
WE WELCOME THE FOLLOWING NEW MEMBERS IN MAY
Membership Information
Membership Renewals as of 53114
One Year
Alpha Video amp Audio 2013GulfEagle Supply 2013
Two to Four Years
The Design Connection 2012Hammer Homes Inc 2011Steel Constructors Inc 2011
Five to Nine Years
Kingrsquos Flooring LLC 2009Turtle Creek Construction Inc 2009The Blue Book of Building amp Construction 2007Bruce Bucknell Construction Inc 2006McGough Construction 2006Schoeppner Inc 2006Cravath Homes LLC dba Accessibility Solutions
2005
Prime Time Painting of Rochester LLC 2005Ten to 19 Years
Elcor Realty of Rochester Inc 2004RJ Manemann Custom Homes 2004DMC Plumbing amp Heating Inc 2003Fairway Outdoor Advertising LLC 2003Innovative Surfaces Inc 2002Design Studio B 2001SL Contracting 1998
25 Years amp More
Hentges Glass Company 1991Larson Siding amp Windows 1986Merit Contracting Inc 1982Sargentrsquos Landscape Nursery Inc 1977CO Brown Agency 1970Holt Title Guaranty Company Inc 1958Palmer Soderberg Inc 1958
NEW APPLICANTS
ULTIMATE SURFACES1233 Eastgate Drive SERochester MN 55904Phone 507- 258-5439Contact Tony Heintz
Associate MemberFabricator
Sponsored bySam Peyton Kingrsquos Flooring LLC
wwwRochesterAreaBuilderscom22 | July 2014
Put your membershipto work nowMoney-saving discounts that benefit yourbusiness your employees and your family
wwwnahborgMA
National Association of Home Builders
R
WwwRochesterAreaBuilderscomJuly 2014 | 17
WErsquoRE HERE TO HELP Natural gas is a great energy
value Xcel Energy can help you with all of your energy-related
building needs including natural gas and electric We even off er
rebates for qualifying natural gas appliances Contact us today
and fi nd out how we can help you
Visit xcelenergycomEnergyPartners today
call 1-800-628-2121 or fax 1-800-628-2521
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xcelenergycomEnergyPartners
13-XCL-00255-B_MNB_HookUp(Combo)_73125x475_4c_LOindd 1 5613 321 PM
A special offer formembers onlyRegister now and save 2 on your Lowersquos Accounts Receivable
purchases Plus get free delivery on purchases of $500 or moredagger
To register visit LowesForProscomNAHB or call 877-435-2440
Offer is not automatic See store for detailsOffer valid now through 12312014 Cannot be combined with any other statement discount To be eligible for the 2 discount you must register your NAHB membership by 12312014 and make a purchase with your Lowersquos Accounts Receivable by 12312014 Allow one to two complete billing cycles for your registration to be processed and for your discount to appear on your billing statement Offer and discount provided by Lowersquos and not GE Capital Retail Bank Excludes Lowersquos Business Account Card Lowersquos Consumer Credit Card Lowersquos Visa Accounts Lowersquos Business Rewards from American Express Card and all Lowersquos Canada Credit projects Offer not valid on purchases made prior to registering NAHB membership at LowesForProscom Call 877-435-2440 for questions about this program All purchases subject to credit approval daggerStandard delivery rules apply copy2014 Lowersquos LOWErsquoS Gable Mansard Design are registered trademarks of LF LLC
Lowes_2014 NAHB-HALFPAGEindd 1 112613 1222 PM
wwwRochesterAreaBuilderscom18 | July 2014
2014 VALUATION 2013 VALUATION
New Residential Single Family Dwelling 25 5531411 28 7133572
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 19 107504 56 286615
Room Addition 3 278763 2 82000
Porch Additions 0 0 0 0
Other Additions 0 0 2 43200
Basement Finish 29 342255 27 371975
Alterations 50 516115 47 325798
Multi-Family Addition 0 0 1 810
Multi-Family Alterations 2 113000 16 169000 New Commercial Assembly (Church) 0 0 0 0
Assembly (General) 0 0 0 0
Assembly (RestaurantBar) 1 1561000 1 700000
Business 0 0 1 225000
Education 0 0 0 0
FactoryIndustrial 0 0 0 0
Institution 0 0 0 0
Mercantile 0 0 0 0
Miscelaneous 0 0 0 0
Utility (General) 1 130000 1 3850
Residential (CareAssisted Living) 0 0 0 0
Storage (General) 1 45000 0 0
Storage (Warehouse) 0 0 1 532594 Existing CommercialAddition 8 5812413 1 15406
Alterations 34 5984762 36 34644913
Structural Shell 0 0 0 0
ldquoWhite Boxrdquo 1 15000 0 0
Interior Demolition Only 3 48500 3 16706
Other Phased Permits 0 0 0 0
Other ConstructionBusiness Signs 15 106565 6 15224
Advertising Sign 1 18000 0 0
Footings amp Foundations 2 220000 11
Demolition 3 1
Rochester Building Permits April 2014
January 33 39 27 20 3 13 3 6 19 11
February 31 31 19 13 1 8 8 20 15 14
March 59 37 30 29 16 27 24 32 29 28
April 58 58 44 27 29 25 19 29 39 25
May 77 69 50 30 33 20 14 22 27 35
TOTAL 258 234 172 119 82 93 68 109 129 113
June 81 59 43 36 36 12 26 32 33
July 58 36 60 23 21 23 8 39 39
August 69 36 43 28 26 15 18 38 21
September 65 31 33 28 33 10 19 22 23
October 71 49 34 19 31 14 16 23 34
November 40 38 23 26 30 21 20 22 26
December 60 23 11 16 15 12 16 14 22
TOTAL 702 506 417 302 274 200 191 299 326 113
Single Family Homes
Year To Date Statistics 2014 2013 NO VALUATION NO VALUATION
Building Permits Issued to Date 881 147003028 825 100011030
Single Family Dwelling 109 26968957 130 30405563
Multi-Family Buildings Total Units 39 1 3702052 0 0
Trade Permits Issued to Date 2978 30568713 2326 27697853
Electrical 1050 13657783 878 15240984
Electrical (Temp Service) 103 30950 115 29700
Mechanical 731 6606354 685 6221377
Gas Piping 198 417331 185 141995
Fireplace 163 417589 148 344814
Hydronic System 69 3689975 50 1105942
Plumbing 664 5748731 653 4613041
Total Permits YTD 3859 177571741 3151 127708883
Information and downloads available at Rochester Building Safety Departmentrsquos Website httpwwwrochestermngovdepartmentsbldgsafetyreportsbuildingindexasp
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
total may differ as permits may have been voided
WwwRochesterAreaBuilderscomJuly 2014 | 19
Rochester Real EstateMonthly Housing DataMarch 2014
Monthly Housing Data March 2014 March 2013 Change
New Listings 311 320 -28Active Listings Year to Date
1087 1195 -90
Pending Listing 173 212 -184Sold Listings 128 144 -111Sold Listings Year to Date
312 342 -88
Median Sales Price (SOLD)
158000 153150 30
SOLD Days on Market (DOM)
81 100 -1900
Avg Year to Date (DOM)
86 110 -2182
Information and downloads available at South East Minnesota Association of REALTORSrsquo
Website httpsemnrealtorsorggeneralstats_market-trendshtml
Information Provided By
MARCH 2014
New Residential NUMBER VALUATION
Single Family Detached 8 1263500
New Commercial
Commercial 1 142000
Existing Residential
Deck Addition 15 55113
Basement Finish 1 3600
Alterations 2 5800
Accessory Building 1 5000
ByronBuilding Permits
MARCH 2014
New Residential NUMBER VALUATION
Single Family 3 402000
Existing Residential
Deck Addition 3 15000
Alterations 9 49000
Reroof 10 50000
Existing Commercial
Reroof 2 10000
Pine IslandBuilding Permits
wwwRochesterAreaBuilderscom20 | July 2014
Despite GDP growth stalling in Q1 due to the Polar Vortex slower inventory accumulation and mildly lower exports the economic recovery remains intact The anemic performance of the US economy from January through March was aberrant and the incoming employment manufacturing and consumer spending data all point to an economic pickup GDP growth the rest of the year should average 3 with growth in Q2 closer to 325 as the economy rebounds from the harsh winter In addition reduced fiscal drag from DC increased hiring and spending by state and local governments and increased corporate spending on plant and equipment suggest we are finally entering a period of faster growth
That said economically all is not well Wage growth remains anemic and while the unemployment rate is 63 down from 10 the fall is largely due to a decline in the labor force participation rate The ranks of the long-term unemployed remain elevated along with the number of those working part-time because they canrsquot find full time work Add to that average overtime hours that are remarkably high and termination rates that are very low and what you have are employers very reluctant to hire This situation cannot persist and of late job creation numbers have been on the upswing Therefore net job creation will rise from 200000month where it has been for the past year to 220000 or 225000 by year end and unemployment will probably fall to 61 I expect wage growth to start picking up steam in 2015
The biggest drag on the economy is housing After a promising first half of 2013 the housing market is at best flat While rising interest rates and home prices a lack of inventory and lots shortages of materials and labor and a lack of credit and first-
time buyers play a part weak household formation is the main culprit After averaging over 12 million in the years prior to the Great Recession household formations have been averaging 500000 since the end of the recession The good news - household formation will rise now that all eight million jobs lost during the recession have been finally made up We are no longer making up lost ground Because of this new single-family construction activity in 2014 will reach 700000 with multifamily adding 350000 while existing home sales should be down slightly from last year
As for inflation itrsquos benign No matter how measured there is no inflation to speak of in the US Commodity prices will remain well-behaved given weak demand due to economic slowing in China and weak growth in Europe and the developing nations Absent some sort of geopolitical crisis energy prices will remain where they are thanks to record US oil production As a result expect tapering to end in November and for the Federal Reserve to begin raising short-term interest rates by mid-2015 However long-term rates have bottomed and 10-yr Treasuries will end the year at about 3 as the economy steadily strengthens
In short the economy is improving and Q1 was a speed bump Long term rates will rise short-term rates will remain unchanged and housing will limp into 2015 with prices rising slightly Most critically household formation will strengthen and corporate state and local government spending will rise Lastly the likelihood of a recession during the next six months is virtually zero
Economic Forecast for 2nd Half of 2014 Increasing Momentum Reduced Headwinds
Elliot Eisenberg PhD
Elliot Eisenberg PhD is President of GraphsandLaughs LLC and can be reached at Elliotgraphsandlaughsnet His daily 70 word economics
and policy blog can be seen at wwwecon70com
WwwRochesterAreaBuilderscomJuly 2014 | 21
CUSTOM HOMES BY BRADLEY INCRochester MN 55901Phone 507- 358-8681Contact Brad Goeden
Builder MemberResidential Builder
Sponsored byNone Listed
MEMBERSHIPS PENDINGNONE
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 943
As of 53114
WE WELCOME THE FOLLOWING NEW MEMBERS IN MAY
Membership Information
Membership Renewals as of 53114
One Year
Alpha Video amp Audio 2013GulfEagle Supply 2013
Two to Four Years
The Design Connection 2012Hammer Homes Inc 2011Steel Constructors Inc 2011
Five to Nine Years
Kingrsquos Flooring LLC 2009Turtle Creek Construction Inc 2009The Blue Book of Building amp Construction 2007Bruce Bucknell Construction Inc 2006McGough Construction 2006Schoeppner Inc 2006Cravath Homes LLC dba Accessibility Solutions
2005
Prime Time Painting of Rochester LLC 2005Ten to 19 Years
Elcor Realty of Rochester Inc 2004RJ Manemann Custom Homes 2004DMC Plumbing amp Heating Inc 2003Fairway Outdoor Advertising LLC 2003Innovative Surfaces Inc 2002Design Studio B 2001SL Contracting 1998
25 Years amp More
Hentges Glass Company 1991Larson Siding amp Windows 1986Merit Contracting Inc 1982Sargentrsquos Landscape Nursery Inc 1977CO Brown Agency 1970Holt Title Guaranty Company Inc 1958Palmer Soderberg Inc 1958
NEW APPLICANTS
ULTIMATE SURFACES1233 Eastgate Drive SERochester MN 55904Phone 507- 258-5439Contact Tony Heintz
Associate MemberFabricator
Sponsored bySam Peyton Kingrsquos Flooring LLC
wwwRochesterAreaBuilderscom22 | July 2014
Put your membershipto work nowMoney-saving discounts that benefit yourbusiness your employees and your family
wwwnahborgMA
National Association of Home Builders
R
wwwRochesterAreaBuilderscom18 | July 2014
2014 VALUATION 2013 VALUATION
New Residential Single Family Dwelling 25 5531411 28 7133572
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 19 107504 56 286615
Room Addition 3 278763 2 82000
Porch Additions 0 0 0 0
Other Additions 0 0 2 43200
Basement Finish 29 342255 27 371975
Alterations 50 516115 47 325798
Multi-Family Addition 0 0 1 810
Multi-Family Alterations 2 113000 16 169000 New Commercial Assembly (Church) 0 0 0 0
Assembly (General) 0 0 0 0
Assembly (RestaurantBar) 1 1561000 1 700000
Business 0 0 1 225000
Education 0 0 0 0
FactoryIndustrial 0 0 0 0
Institution 0 0 0 0
Mercantile 0 0 0 0
Miscelaneous 0 0 0 0
Utility (General) 1 130000 1 3850
Residential (CareAssisted Living) 0 0 0 0
Storage (General) 1 45000 0 0
Storage (Warehouse) 0 0 1 532594 Existing CommercialAddition 8 5812413 1 15406
Alterations 34 5984762 36 34644913
Structural Shell 0 0 0 0
ldquoWhite Boxrdquo 1 15000 0 0
Interior Demolition Only 3 48500 3 16706
Other Phased Permits 0 0 0 0
Other ConstructionBusiness Signs 15 106565 6 15224
Advertising Sign 1 18000 0 0
Footings amp Foundations 2 220000 11
Demolition 3 1
Rochester Building Permits April 2014
January 33 39 27 20 3 13 3 6 19 11
February 31 31 19 13 1 8 8 20 15 14
March 59 37 30 29 16 27 24 32 29 28
April 58 58 44 27 29 25 19 29 39 25
May 77 69 50 30 33 20 14 22 27 35
TOTAL 258 234 172 119 82 93 68 109 129 113
June 81 59 43 36 36 12 26 32 33
July 58 36 60 23 21 23 8 39 39
August 69 36 43 28 26 15 18 38 21
September 65 31 33 28 33 10 19 22 23
October 71 49 34 19 31 14 16 23 34
November 40 38 23 26 30 21 20 22 26
December 60 23 11 16 15 12 16 14 22
TOTAL 702 506 417 302 274 200 191 299 326 113
Single Family Homes
Year To Date Statistics 2014 2013 NO VALUATION NO VALUATION
Building Permits Issued to Date 881 147003028 825 100011030
Single Family Dwelling 109 26968957 130 30405563
Multi-Family Buildings Total Units 39 1 3702052 0 0
Trade Permits Issued to Date 2978 30568713 2326 27697853
Electrical 1050 13657783 878 15240984
Electrical (Temp Service) 103 30950 115 29700
Mechanical 731 6606354 685 6221377
Gas Piping 198 417331 185 141995
Fireplace 163 417589 148 344814
Hydronic System 69 3689975 50 1105942
Plumbing 664 5748731 653 4613041
Total Permits YTD 3859 177571741 3151 127708883
Information and downloads available at Rochester Building Safety Departmentrsquos Website httpwwwrochestermngovdepartmentsbldgsafetyreportsbuildingindexasp
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
total may differ as permits may have been voided
WwwRochesterAreaBuilderscomJuly 2014 | 19
Rochester Real EstateMonthly Housing DataMarch 2014
Monthly Housing Data March 2014 March 2013 Change
New Listings 311 320 -28Active Listings Year to Date
1087 1195 -90
Pending Listing 173 212 -184Sold Listings 128 144 -111Sold Listings Year to Date
312 342 -88
Median Sales Price (SOLD)
158000 153150 30
SOLD Days on Market (DOM)
81 100 -1900
Avg Year to Date (DOM)
86 110 -2182
Information and downloads available at South East Minnesota Association of REALTORSrsquo
Website httpsemnrealtorsorggeneralstats_market-trendshtml
Information Provided By
MARCH 2014
New Residential NUMBER VALUATION
Single Family Detached 8 1263500
New Commercial
Commercial 1 142000
Existing Residential
Deck Addition 15 55113
Basement Finish 1 3600
Alterations 2 5800
Accessory Building 1 5000
ByronBuilding Permits
MARCH 2014
New Residential NUMBER VALUATION
Single Family 3 402000
Existing Residential
Deck Addition 3 15000
Alterations 9 49000
Reroof 10 50000
Existing Commercial
Reroof 2 10000
Pine IslandBuilding Permits
wwwRochesterAreaBuilderscom20 | July 2014
Despite GDP growth stalling in Q1 due to the Polar Vortex slower inventory accumulation and mildly lower exports the economic recovery remains intact The anemic performance of the US economy from January through March was aberrant and the incoming employment manufacturing and consumer spending data all point to an economic pickup GDP growth the rest of the year should average 3 with growth in Q2 closer to 325 as the economy rebounds from the harsh winter In addition reduced fiscal drag from DC increased hiring and spending by state and local governments and increased corporate spending on plant and equipment suggest we are finally entering a period of faster growth
That said economically all is not well Wage growth remains anemic and while the unemployment rate is 63 down from 10 the fall is largely due to a decline in the labor force participation rate The ranks of the long-term unemployed remain elevated along with the number of those working part-time because they canrsquot find full time work Add to that average overtime hours that are remarkably high and termination rates that are very low and what you have are employers very reluctant to hire This situation cannot persist and of late job creation numbers have been on the upswing Therefore net job creation will rise from 200000month where it has been for the past year to 220000 or 225000 by year end and unemployment will probably fall to 61 I expect wage growth to start picking up steam in 2015
The biggest drag on the economy is housing After a promising first half of 2013 the housing market is at best flat While rising interest rates and home prices a lack of inventory and lots shortages of materials and labor and a lack of credit and first-
time buyers play a part weak household formation is the main culprit After averaging over 12 million in the years prior to the Great Recession household formations have been averaging 500000 since the end of the recession The good news - household formation will rise now that all eight million jobs lost during the recession have been finally made up We are no longer making up lost ground Because of this new single-family construction activity in 2014 will reach 700000 with multifamily adding 350000 while existing home sales should be down slightly from last year
As for inflation itrsquos benign No matter how measured there is no inflation to speak of in the US Commodity prices will remain well-behaved given weak demand due to economic slowing in China and weak growth in Europe and the developing nations Absent some sort of geopolitical crisis energy prices will remain where they are thanks to record US oil production As a result expect tapering to end in November and for the Federal Reserve to begin raising short-term interest rates by mid-2015 However long-term rates have bottomed and 10-yr Treasuries will end the year at about 3 as the economy steadily strengthens
In short the economy is improving and Q1 was a speed bump Long term rates will rise short-term rates will remain unchanged and housing will limp into 2015 with prices rising slightly Most critically household formation will strengthen and corporate state and local government spending will rise Lastly the likelihood of a recession during the next six months is virtually zero
Economic Forecast for 2nd Half of 2014 Increasing Momentum Reduced Headwinds
Elliot Eisenberg PhD
Elliot Eisenberg PhD is President of GraphsandLaughs LLC and can be reached at Elliotgraphsandlaughsnet His daily 70 word economics
and policy blog can be seen at wwwecon70com
WwwRochesterAreaBuilderscomJuly 2014 | 21
CUSTOM HOMES BY BRADLEY INCRochester MN 55901Phone 507- 358-8681Contact Brad Goeden
Builder MemberResidential Builder
Sponsored byNone Listed
MEMBERSHIPS PENDINGNONE
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 943
As of 53114
WE WELCOME THE FOLLOWING NEW MEMBERS IN MAY
Membership Information
Membership Renewals as of 53114
One Year
Alpha Video amp Audio 2013GulfEagle Supply 2013
Two to Four Years
The Design Connection 2012Hammer Homes Inc 2011Steel Constructors Inc 2011
Five to Nine Years
Kingrsquos Flooring LLC 2009Turtle Creek Construction Inc 2009The Blue Book of Building amp Construction 2007Bruce Bucknell Construction Inc 2006McGough Construction 2006Schoeppner Inc 2006Cravath Homes LLC dba Accessibility Solutions
2005
Prime Time Painting of Rochester LLC 2005Ten to 19 Years
Elcor Realty of Rochester Inc 2004RJ Manemann Custom Homes 2004DMC Plumbing amp Heating Inc 2003Fairway Outdoor Advertising LLC 2003Innovative Surfaces Inc 2002Design Studio B 2001SL Contracting 1998
25 Years amp More
Hentges Glass Company 1991Larson Siding amp Windows 1986Merit Contracting Inc 1982Sargentrsquos Landscape Nursery Inc 1977CO Brown Agency 1970Holt Title Guaranty Company Inc 1958Palmer Soderberg Inc 1958
NEW APPLICANTS
ULTIMATE SURFACES1233 Eastgate Drive SERochester MN 55904Phone 507- 258-5439Contact Tony Heintz
Associate MemberFabricator
Sponsored bySam Peyton Kingrsquos Flooring LLC
wwwRochesterAreaBuilderscom22 | July 2014
Put your membershipto work nowMoney-saving discounts that benefit yourbusiness your employees and your family
wwwnahborgMA
National Association of Home Builders
R
WwwRochesterAreaBuilderscomJuly 2014 | 19
Rochester Real EstateMonthly Housing DataMarch 2014
Monthly Housing Data March 2014 March 2013 Change
New Listings 311 320 -28Active Listings Year to Date
1087 1195 -90
Pending Listing 173 212 -184Sold Listings 128 144 -111Sold Listings Year to Date
312 342 -88
Median Sales Price (SOLD)
158000 153150 30
SOLD Days on Market (DOM)
81 100 -1900
Avg Year to Date (DOM)
86 110 -2182
Information and downloads available at South East Minnesota Association of REALTORSrsquo
Website httpsemnrealtorsorggeneralstats_market-trendshtml
Information Provided By
MARCH 2014
New Residential NUMBER VALUATION
Single Family Detached 8 1263500
New Commercial
Commercial 1 142000
Existing Residential
Deck Addition 15 55113
Basement Finish 1 3600
Alterations 2 5800
Accessory Building 1 5000
ByronBuilding Permits
MARCH 2014
New Residential NUMBER VALUATION
Single Family 3 402000
Existing Residential
Deck Addition 3 15000
Alterations 9 49000
Reroof 10 50000
Existing Commercial
Reroof 2 10000
Pine IslandBuilding Permits
wwwRochesterAreaBuilderscom20 | July 2014
Despite GDP growth stalling in Q1 due to the Polar Vortex slower inventory accumulation and mildly lower exports the economic recovery remains intact The anemic performance of the US economy from January through March was aberrant and the incoming employment manufacturing and consumer spending data all point to an economic pickup GDP growth the rest of the year should average 3 with growth in Q2 closer to 325 as the economy rebounds from the harsh winter In addition reduced fiscal drag from DC increased hiring and spending by state and local governments and increased corporate spending on plant and equipment suggest we are finally entering a period of faster growth
That said economically all is not well Wage growth remains anemic and while the unemployment rate is 63 down from 10 the fall is largely due to a decline in the labor force participation rate The ranks of the long-term unemployed remain elevated along with the number of those working part-time because they canrsquot find full time work Add to that average overtime hours that are remarkably high and termination rates that are very low and what you have are employers very reluctant to hire This situation cannot persist and of late job creation numbers have been on the upswing Therefore net job creation will rise from 200000month where it has been for the past year to 220000 or 225000 by year end and unemployment will probably fall to 61 I expect wage growth to start picking up steam in 2015
The biggest drag on the economy is housing After a promising first half of 2013 the housing market is at best flat While rising interest rates and home prices a lack of inventory and lots shortages of materials and labor and a lack of credit and first-
time buyers play a part weak household formation is the main culprit After averaging over 12 million in the years prior to the Great Recession household formations have been averaging 500000 since the end of the recession The good news - household formation will rise now that all eight million jobs lost during the recession have been finally made up We are no longer making up lost ground Because of this new single-family construction activity in 2014 will reach 700000 with multifamily adding 350000 while existing home sales should be down slightly from last year
As for inflation itrsquos benign No matter how measured there is no inflation to speak of in the US Commodity prices will remain well-behaved given weak demand due to economic slowing in China and weak growth in Europe and the developing nations Absent some sort of geopolitical crisis energy prices will remain where they are thanks to record US oil production As a result expect tapering to end in November and for the Federal Reserve to begin raising short-term interest rates by mid-2015 However long-term rates have bottomed and 10-yr Treasuries will end the year at about 3 as the economy steadily strengthens
In short the economy is improving and Q1 was a speed bump Long term rates will rise short-term rates will remain unchanged and housing will limp into 2015 with prices rising slightly Most critically household formation will strengthen and corporate state and local government spending will rise Lastly the likelihood of a recession during the next six months is virtually zero
Economic Forecast for 2nd Half of 2014 Increasing Momentum Reduced Headwinds
Elliot Eisenberg PhD
Elliot Eisenberg PhD is President of GraphsandLaughs LLC and can be reached at Elliotgraphsandlaughsnet His daily 70 word economics
and policy blog can be seen at wwwecon70com
WwwRochesterAreaBuilderscomJuly 2014 | 21
CUSTOM HOMES BY BRADLEY INCRochester MN 55901Phone 507- 358-8681Contact Brad Goeden
Builder MemberResidential Builder
Sponsored byNone Listed
MEMBERSHIPS PENDINGNONE
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 943
As of 53114
WE WELCOME THE FOLLOWING NEW MEMBERS IN MAY
Membership Information
Membership Renewals as of 53114
One Year
Alpha Video amp Audio 2013GulfEagle Supply 2013
Two to Four Years
The Design Connection 2012Hammer Homes Inc 2011Steel Constructors Inc 2011
Five to Nine Years
Kingrsquos Flooring LLC 2009Turtle Creek Construction Inc 2009The Blue Book of Building amp Construction 2007Bruce Bucknell Construction Inc 2006McGough Construction 2006Schoeppner Inc 2006Cravath Homes LLC dba Accessibility Solutions
2005
Prime Time Painting of Rochester LLC 2005Ten to 19 Years
Elcor Realty of Rochester Inc 2004RJ Manemann Custom Homes 2004DMC Plumbing amp Heating Inc 2003Fairway Outdoor Advertising LLC 2003Innovative Surfaces Inc 2002Design Studio B 2001SL Contracting 1998
25 Years amp More
Hentges Glass Company 1991Larson Siding amp Windows 1986Merit Contracting Inc 1982Sargentrsquos Landscape Nursery Inc 1977CO Brown Agency 1970Holt Title Guaranty Company Inc 1958Palmer Soderberg Inc 1958
NEW APPLICANTS
ULTIMATE SURFACES1233 Eastgate Drive SERochester MN 55904Phone 507- 258-5439Contact Tony Heintz
Associate MemberFabricator
Sponsored bySam Peyton Kingrsquos Flooring LLC
wwwRochesterAreaBuilderscom22 | July 2014
Put your membershipto work nowMoney-saving discounts that benefit yourbusiness your employees and your family
wwwnahborgMA
National Association of Home Builders
R
wwwRochesterAreaBuilderscom20 | July 2014
Despite GDP growth stalling in Q1 due to the Polar Vortex slower inventory accumulation and mildly lower exports the economic recovery remains intact The anemic performance of the US economy from January through March was aberrant and the incoming employment manufacturing and consumer spending data all point to an economic pickup GDP growth the rest of the year should average 3 with growth in Q2 closer to 325 as the economy rebounds from the harsh winter In addition reduced fiscal drag from DC increased hiring and spending by state and local governments and increased corporate spending on plant and equipment suggest we are finally entering a period of faster growth
That said economically all is not well Wage growth remains anemic and while the unemployment rate is 63 down from 10 the fall is largely due to a decline in the labor force participation rate The ranks of the long-term unemployed remain elevated along with the number of those working part-time because they canrsquot find full time work Add to that average overtime hours that are remarkably high and termination rates that are very low and what you have are employers very reluctant to hire This situation cannot persist and of late job creation numbers have been on the upswing Therefore net job creation will rise from 200000month where it has been for the past year to 220000 or 225000 by year end and unemployment will probably fall to 61 I expect wage growth to start picking up steam in 2015
The biggest drag on the economy is housing After a promising first half of 2013 the housing market is at best flat While rising interest rates and home prices a lack of inventory and lots shortages of materials and labor and a lack of credit and first-
time buyers play a part weak household formation is the main culprit After averaging over 12 million in the years prior to the Great Recession household formations have been averaging 500000 since the end of the recession The good news - household formation will rise now that all eight million jobs lost during the recession have been finally made up We are no longer making up lost ground Because of this new single-family construction activity in 2014 will reach 700000 with multifamily adding 350000 while existing home sales should be down slightly from last year
As for inflation itrsquos benign No matter how measured there is no inflation to speak of in the US Commodity prices will remain well-behaved given weak demand due to economic slowing in China and weak growth in Europe and the developing nations Absent some sort of geopolitical crisis energy prices will remain where they are thanks to record US oil production As a result expect tapering to end in November and for the Federal Reserve to begin raising short-term interest rates by mid-2015 However long-term rates have bottomed and 10-yr Treasuries will end the year at about 3 as the economy steadily strengthens
In short the economy is improving and Q1 was a speed bump Long term rates will rise short-term rates will remain unchanged and housing will limp into 2015 with prices rising slightly Most critically household formation will strengthen and corporate state and local government spending will rise Lastly the likelihood of a recession during the next six months is virtually zero
Economic Forecast for 2nd Half of 2014 Increasing Momentum Reduced Headwinds
Elliot Eisenberg PhD
Elliot Eisenberg PhD is President of GraphsandLaughs LLC and can be reached at Elliotgraphsandlaughsnet His daily 70 word economics
and policy blog can be seen at wwwecon70com
WwwRochesterAreaBuilderscomJuly 2014 | 21
CUSTOM HOMES BY BRADLEY INCRochester MN 55901Phone 507- 358-8681Contact Brad Goeden
Builder MemberResidential Builder
Sponsored byNone Listed
MEMBERSHIPS PENDINGNONE
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 943
As of 53114
WE WELCOME THE FOLLOWING NEW MEMBERS IN MAY
Membership Information
Membership Renewals as of 53114
One Year
Alpha Video amp Audio 2013GulfEagle Supply 2013
Two to Four Years
The Design Connection 2012Hammer Homes Inc 2011Steel Constructors Inc 2011
Five to Nine Years
Kingrsquos Flooring LLC 2009Turtle Creek Construction Inc 2009The Blue Book of Building amp Construction 2007Bruce Bucknell Construction Inc 2006McGough Construction 2006Schoeppner Inc 2006Cravath Homes LLC dba Accessibility Solutions
2005
Prime Time Painting of Rochester LLC 2005Ten to 19 Years
Elcor Realty of Rochester Inc 2004RJ Manemann Custom Homes 2004DMC Plumbing amp Heating Inc 2003Fairway Outdoor Advertising LLC 2003Innovative Surfaces Inc 2002Design Studio B 2001SL Contracting 1998
25 Years amp More
Hentges Glass Company 1991Larson Siding amp Windows 1986Merit Contracting Inc 1982Sargentrsquos Landscape Nursery Inc 1977CO Brown Agency 1970Holt Title Guaranty Company Inc 1958Palmer Soderberg Inc 1958
NEW APPLICANTS
ULTIMATE SURFACES1233 Eastgate Drive SERochester MN 55904Phone 507- 258-5439Contact Tony Heintz
Associate MemberFabricator
Sponsored bySam Peyton Kingrsquos Flooring LLC
wwwRochesterAreaBuilderscom22 | July 2014
Put your membershipto work nowMoney-saving discounts that benefit yourbusiness your employees and your family
wwwnahborgMA
National Association of Home Builders
R
WwwRochesterAreaBuilderscomJuly 2014 | 21
CUSTOM HOMES BY BRADLEY INCRochester MN 55901Phone 507- 358-8681Contact Brad Goeden
Builder MemberResidential Builder
Sponsored byNone Listed
MEMBERSHIPS PENDINGNONE
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 943
As of 53114
WE WELCOME THE FOLLOWING NEW MEMBERS IN MAY
Membership Information
Membership Renewals as of 53114
One Year
Alpha Video amp Audio 2013GulfEagle Supply 2013
Two to Four Years
The Design Connection 2012Hammer Homes Inc 2011Steel Constructors Inc 2011
Five to Nine Years
Kingrsquos Flooring LLC 2009Turtle Creek Construction Inc 2009The Blue Book of Building amp Construction 2007Bruce Bucknell Construction Inc 2006McGough Construction 2006Schoeppner Inc 2006Cravath Homes LLC dba Accessibility Solutions
2005
Prime Time Painting of Rochester LLC 2005Ten to 19 Years
Elcor Realty of Rochester Inc 2004RJ Manemann Custom Homes 2004DMC Plumbing amp Heating Inc 2003Fairway Outdoor Advertising LLC 2003Innovative Surfaces Inc 2002Design Studio B 2001SL Contracting 1998
25 Years amp More
Hentges Glass Company 1991Larson Siding amp Windows 1986Merit Contracting Inc 1982Sargentrsquos Landscape Nursery Inc 1977CO Brown Agency 1970Holt Title Guaranty Company Inc 1958Palmer Soderberg Inc 1958
NEW APPLICANTS
ULTIMATE SURFACES1233 Eastgate Drive SERochester MN 55904Phone 507- 258-5439Contact Tony Heintz
Associate MemberFabricator
Sponsored bySam Peyton Kingrsquos Flooring LLC
wwwRochesterAreaBuilderscom22 | July 2014
Put your membershipto work nowMoney-saving discounts that benefit yourbusiness your employees and your family
wwwnahborgMA
National Association of Home Builders
R
wwwRochesterAreaBuilderscom22 | July 2014
Put your membershipto work nowMoney-saving discounts that benefit yourbusiness your employees and your family
wwwnahborgMA
National Association of Home Builders
R
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