Foundations - September 2014
24
SEPTEMBER 2014 Rochester Area Builders, Inc. a publication of FOUNDATIONS A&A Electric & Underground, Inc. + AB Systems, Inc. + Abbco Company + 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 + Andersen Windows, Inc. + Anderson Construction + Appliance Village Company + Arcon Development, Inc. + Arrow Building Center + Associated Bank + Athelon Enterprises, LLC + B&C Plumbing & Heating, Inc. + Al Barker Custom Homes, Inc. + Barrier Free Access, Inc. + Basement Water Control + Batzel Builders, Inc. + Beckley's Office Products + Beetles Bar & Grill, Inc. + Alvin E. Benike, Inc. + Scott Berberich Construction, LLC + Scott Berg Construction, LLC + Bessler Management + Beyond Kitchens, LLC + Bigelow & Lennon Construction, LLC + Bigelow Homes + K.W. Billman, Inc. + The Blue Book of Building & Construction + Bobcat of Rochester + Bob's Construction, Inc. + The Boldt Company + Bouquet Builders, Inc. + Bowman's Door Solutions + Brandrup Builders + 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. + Byrne Electric, Inc. + Cachiaras Building & Remodeling + Cambria + Carpet One + CarpetsPlus of Rochester + Castlewood Homes, Inc. + Centurion Ridge, LLC + 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 + CliftonLarsonAllen, LLP + 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 Homes by Bradley, 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 + Distinguished Homes by Mitch Hagen, LLC + 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 + JE Dunn Construction + Dura-Oak Kitchen Make Overs + E&M Consulting, Inc. + Eastwood Bank + eci, llc + Eckert Construction, Inc. + Edel Construction, LLC + Edge Homes & Construction, Inc. + Edina Realty Home Services + Todd Eidem Construction, Inc. + Elcor Construction, Inc. + Elcor Realty of Rochester, Inc. + Electrical Solutions & Service + Elias Construction, LLC + Energy Panel Structures + Energy Products & Design, Inc. + Enventis + Excel Homes + The Excelsior Group, LLC + 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. + Godwin Law Office + Goodin Company + Great River Overhead Door + Green Lawncare Irrigation & Service Co. + Gregor Builders, Inc. + GulfEagle Supply + Habitat for Humanity - Rochester Area + 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 Improve- ment 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 Construction Company + Kreof- sky Building Supplies + Kruger Electric, Inc. + Kruse Lumber + KTTC/KXLT-TV + Kuehn Motor Company, Inc. + Kuntz Electric, Inc. + Kwik Trip, Inc. + Lacina Siding & Windows, Inc. + Laitala Tile Company + Larsen Industries, Inc. + Larson Siding & Windows + Legends Concrete, Inc. + Leitzen Concrete Products, Inc. + Leyendecker Homebuilders, LLC + Lodermeier's, Inc. + Low Voltage Contractors + Lowe's Home Improvement + Luxury Bath Remodeling + Maas Companies, Inc. + Maier Tree & Lawn + Majes- tic Homes, Inc. + R.J. Manemann Custom Homes + Manufacturer's Bank & Trust + Maplewood 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 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 + On Site Companies + Otis Custom Homes, LLC + Overhead Door Co. of Olmsted County + Owner's Plumbing, Inc. + Oxi-Fresh Carpet Cleaning + Paape Energy Services + Pace International + Pahl & Kaye, Inc. + Palmer Soderberg, Inc. + Walt Pappas Construc- tion + Paramark Corporation + Payne Company + PC Applica- tions 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 Pro- motions & Apparel + ProBuild Company, LLC + Quality Overhead Door Company, Inc. + Quality Siding & Window, Inc. + Michael Quinn Law Office + R&M Development 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 + Rochester Area Econ. Development, Inc. + Rochester Area Foundation + Rochester Asphalt, Inc. + Rochester Building Safety Department + Rochester Concrete Products, LLC + Rochester International Event Center + Rochester Plumbing & Heating/Roto Rooter + Rochester Public Utilities + Rochester Public Works + Roches- ter Ready Mix Concrete Co + Rochester Sign Service, Inc. + Roches- ter Title & Escrow Company, Inc. + Rock Solid Retain- ing 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. + Shanahan Building & Remodeling, LLC + Sherwin Williams Company + Shingobee Builders, Inc. + Sign Here, Inc. + Simonson Builders, LLC + SL Contracting + Smart Home Innovations & Engineering, Inc. + Smith Schafer & Associates, Ltd. + Solar Connection, Inc. + Somerby Golf Community + Space Concepts, Inc. + Spahn & Rose Lumber Company + Greg Speedling Contracting, Inc. + Spring Valley Overhead Door, Inc. + Stadsvold's Lawn & Landscape + Stantec + Steel Constructors, Inc. + Sterling State Bank + Stevens Heating, Inc. + 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 + Tonna Mechanical, Inc. + Top Shop of Rochester, Inc. + Total Electric of Roches- ter, 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 + Vector Windows + Veit Companies + Vennehjem Building Corporation + Vertical Limit Construction + Viking Automatic Sprinkler Company + Viking Electric Supply + Vision Homes & Remodeling, LLC + WA Insurance + Warners' Stellian Appliance Co., Inc. + Waste Management + Weis Builders, Inc. + Greg Wellik Construction + Wells Fargo Bank Minnesota NA + Wells Fargo Home Mortgage + 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 September 2014
Transcript of Foundations - September 2014
SEPTEMBER2014 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 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 + Andersen Windows Inc + 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 + Byrne Electric Inc + Cachiaras Building amp Remodeling + Cambria + Carpet One + CarpetsPlus of Rochester + Castlewood Homes Inc + Centurion Ridge LLC + 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 + CliftonLarsonAllen LLP + 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 Homes by Bradley 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 + Distinguished Homes by Mitch Hagen LLC + 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 + 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 + Excel Homes + 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 + Godwin Law Office + Goodin Company + Great River Overhead Door + Green Lawncare Irrigation amp Service Co + Gregor Builders Inc + GulfEagle Supply + Habitat for Humanity - Rochester Area + 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 Improve-ment 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 Construction Company + Kreof-sky Building Supplies + Kruger Electric Inc + Kruse Lumber + KTTCKXLT-TV + Kuehn Motor Company Inc + Kuntz Electric Inc + Kwik Trip Inc + Lacina Siding amp Windows Inc + Laitala Tile Company + Larsen Industries Inc + Larson Siding amp Windows + Legends Concrete Inc + Leitzen Concrete Products Inc + Leyendecker Homebuilders LLC + Lodermeiers Inc + Low Voltage Contractors + Lowes Home Improvement + Luxury Bath Remodeling + Maas Companies Inc + Maier Tree amp Lawn + Majes-tic Homes Inc + RJ Manemann Custom Homes + Manufacturers Bank amp Trust + Maplewood 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 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 + On Site Companies + Otis Custom Homes LLC + Overhead Door Co of Olmsted County + Owners Plumbing Inc + Oxi-Fresh Carpet Cleaning + Paape Energy Services + Pace International + Pahl amp Kaye Inc + Palmer Soderberg Inc + Walt Pappas Construc-t i o n + Paramark Corporation + Payne Company + PC Applica-
tions 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
P r o - motions amp Apparel + ProBuild Company LLC + Quality Overhead Door Company Inc + Quality Siding amp Window Inc + Michael Quinn Law Office + RampM Development 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 + Rochester Area Econ Development Inc + Rochester Area Foundation + Rochester Asphalt Inc + Rochester Building Safety Department + Rochester Concrete Products LLC + Rochester International Event Center + Rochester Plumbing amp HeatingRoto Rooter + Rochester Public Utilities + Rochester Public Works + Roches-ter Ready Mix Concrete Co + Rochester Sign Service Inc + Roches- ter Title amp Escrow Company Inc + Rock Solid Retain-ing 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 + Shanahan Building amp Remodeling LLC + Sherwin Williams Company + Shingobee Builders Inc + Sign Here Inc + Simonson Builders LLC + SL Contracting + Smart Home Innovations amp Engineering 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 + Tonna Mechanical Inc + Top Shop of Rochester Inc + Total Electric of Roches-ter 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 + Vector Windows + Veit Companies + Vennehjem Building Corporation + Vertical Limit Construction + Viking Automatic Sprinkler Company + Viking Electric Supply + Vision Homes amp Remodeling LLC + WA Insurance + Warners Stellian Appliance Co Inc + Waste Management + Weis Builders Inc + Greg Wellik Construction + Wells Fargo Bank Minnesota NA + Wells Fargo Home Mortgage + 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
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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
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WwwRochesterAreaBuilderscomSeptember 2014 | 3
August 12 2014 Election season is now in full swing The August primaries narrowed down the field of candidates and with the end of summer upon us more voters are now paying attention to the choices theyrsquoll be making in November RAB does not endorse candidates for any office We do however ask questions of all our elected and aspiring elected officials to ensure that we know where they stand on issues important to the building industry More importantly though wersquoll make sure that they know where we stand on the issues too Your RAB staff Board and Government Affairs Committee work constantly to
make sure that our elected officials understand the actual real-world ldquodownstreamrdquo consequences of development plans taxes fees and regulations that they may be proposing that all too often get swept under the rug We will be ever-vigilant about looking out for the interests of RAB members and hope that you will get engaged this fall to join us Someone once said that ldquothe world is run by those who show uprdquo and nowhere is that more true than in the election of public officials who will be shaping building industry policy for years to come Interesting in finding out more or in getting involved
bull Come to our September 30th Legislative Forum We will be inviting all candidates for city county and state offices to this RAB members-only event This is your chance to hear first-hand from the candidates themselves about their positions and to share your opinions with them
bull Write a letter to the editor Donrsquot be afraid to let public officials know that you helped build this cityhellipand you vote
bull Contribute financially either directly to the candidate of your choice or through the Builderrsquos Association of Minnesota Political Action Committee (BAM-PAC) It doesnrsquot matter if you donate $5 or $500 find out where a candidate stands and make a gift thatrsquos meaningful to you
bull If you are really motivated consider running for office yourself All candidates regardless of position or party affiliation deserve our respect for being willing to put themselves on the line It may be too late for 2014 but our area always needs dedicated willing public servants who understand this industry and care about our community
Historical preservationhellipmandatory fire sprinklershellipDMChellipupdated development planshellipsingle and multi-family homeshellipwith so much going on none of us can afford not to be involved Rochester Area Builders will be working campaigning and fighting every single day to make sure we have a community where you and your employees can grow thrive and succeed None of us is as strong as all of us and we hope that you will join us to make sure we have a community where everyone can enjoy the excellent standard of living job base and vibrant community that a strong local building industry can provide Election Day will be here before you know it
Have a great month
Kevin Worden2014 RAB President
Index News from the President 3Sporting Clay Shoot 4August Networking Night 5Green Building Expo 6-7Association Scrapbook 8-9Fall Showcase Entries 10-11Remodelers Tour Entries 11On The Job 12-14Hey Matt Whatrsquos up with that 15BAM Update 16Committee Updates 17Remodel It Right News 18Commercial Builders Council 19Rochester Permits 20ByronPine Island Permits 21Real Estate Data 21Elliot Eisenberg Article 22Membership Information 23NAHB Member Discounts 24
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
wwwRochesterAreaBuilderscom4 | September 2014
Join us at the RAB Sporting Clay ShootThursday September 4 2014
Calling all Hunters Shooters Outdoorsmen or anyone looking to have a fun time with LIVE AMMUNITION RAB is hosting our annual SPORTING CLAY SHOOT Wersquoll have 20 stations and each one is different Teams will rotate through the stations trying to rack up the highest score possible Donrsquot miss out sign up soon
Click Here to Register Onlineor download the registration form here
GAMEHAVEN COUNCIL SCOUT CAMP 5015 Simpson Rd SE
Hours100 PM - 130 PMRegistration and Mandatory Safety Talks200 PM Shooting Starts 500 PM BBQ Dinner amp Beer600 PM Check Presentation to Boy Scouts Prizes and Raffle Drawing
SCOUTING OF SOUTHEASTERN MINNESOTA
Presented By
WwwRochesterAreaBuilderscomSeptember 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 Jeremy Bigelow Bigelow Homes 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 Sheehan 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 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
Donrsquot forget to mark you calendar for the August Networking Night
Tuesday August 26th at Premier Bank Rochester
3145 Wellner Dr NEHours 500 pm - 700 pm
WHY PREMIER
Premier is large enough to offer state of the art financial products and services yet small enough to give clients the personal attention they deserve Premierrsquos stable lending team take the time to understand clientrsquos needs so they are better served Established and continuing as independent community-oriented banks Premier Banks continue to meet the financial need of our clients and supply the credit necessary for local businesses and industries to grow
OUR MISSION
To be the premier community bank in the region and the bank of choice in each of the communities we serve
To foster long-term commercial relationships built on trust by observing the highest standards of corporate and social
responsibility
To create value for our customers employees and shareholders through excellent performance state of the
art technology and a relentless commitment to service
PREMIER BANK IS HAPPY TO BE CELEBRATING THEIR 40TH ANNIVERSARY
Hosted By
PremierBanksMEMBER
wwwRochesterAreaBuilderscom6 | September 2014
What Green Building Expomdashan event for the
public
When Saturday Oct 25th -or- Nov 1st
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
Please reply with your registraon and payment by October 3rd
Signature Event Sponsors
NEW DATE DEADLINE EXTENDEDEXHIBITORS NEEDEDNEW DATE DEADLINE EXTENDEDEXHIBITORS NEEDED
C
M
Y
CM
MY
CY
CMY
K
RFPpdf 8212014 112647 AM
WwwRochesterAreaBuilderscomSeptember 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
Green Building Expo Registraon Form
Register by October 3rd 2014 by emailing a
scanned version of this form to
MahewLRochesterAreaBuilderscom
or by faxing it to Rochester Area Builders at
507-280-6351 If you would like to mail in the
form please mail it to
Rochester Area Builders Inc
108 Elton Hills Ln NW
Rochester MN 55901
C
M
Y
CM
MY
CY
CMY
K
RFP - Registrationpdf 8212014 114006 AM
wwwRochesterAreaBuilderscom8 | September 2014
July Networking NightAssociation Scrapbook
Thank you to all who attended Membership Appreciation Night at the Rochester Area Buildersrsquo office on July 29 Thank you Home Federal for sponsoring the
beverages and Home Improvement Professionals for the tents We would like to thank everybody for supporting BAM-PAC by participating in the wine amp beer tasting We raised over $300 for PAC If you would like to purchase a wine glass or beer flight glass (with the RAB logo) there are a few left at $5 each Sorry at this point the glasses are empty
GIVE AWAYSCharlie Brown PC Applications won a gift card to the Hubble House from RAB and the proverbial bad penny Rick Dold Godwin Law Office won ldquoDinner on Usrdquo from the Post Bulletin
Thank You
WwwRochesterAreaBuilderscomSeptember 2014 | 9
Association ScrapbookMember Appreciation Night
APPRECIATION
wwwRochesterAreaBuilderscom10 | September 2014
DATES AND TIMES FOR THE 2014 FALL SHOWCASE OF HOMESFriday Sept 12 Signs to be Picked Up 800 AM ndash 400 PMSaturday Sept 13 Entries Open to Public 1100 AM ndash 500 PMSunday Sept 14 Entries Open to Public 1100 AM ndash 500 PMSaturday Sept 20 Entries Open to Public 1100 AM ndash 500 PMSunday Sept 21 Entries Open to Public 1100 AM ndash 500 PMMonday Sept 22 Signs to be Returned 800 AM ndash 500 PM
1 Med City Builders of Rochester LLC60766 254th Avenue MantorvilleHome
2 Somerby Golf Community943 Somerby Parkway NE ByronDevelopment
3 Summit Custom Homes LLC943 Somerby Parkway NE ByronHome
4 Bigelow Homes LLC488 15th Ave NE ByronHome
5 Countryside Builders LLC1548 Wickford Place NE ByronHome
6 Derby Construction LLC6341 Oak Meadow Lane NWHome
7 Wright Homes Inc5897 Dogwood CourtTownhome
8 Thimijan Custom Homes LLC2326 Granite Circle NWHome
9 JNS Builders2583 Flagstone Lane NWHome
10 Cravath Homes LLC6878 Larkspur ParkwayHome
11 Bigelow amp Lennon Construction6320 Mallard Drive NWHome
12 Bigelow Homes LLC5542 Harvest Lake Drive NWHome
13 DeWitz Home Builders6221 51st Street NWHome
14 Majestic Homes Inc4818 Bishop Lane NWHome
15 Exclusive Home Builders amp Remodelers3609 46th Avenue NWHome
16 MDH Inc ndash Orchard Hills Builders626 Gates Lane SWHome
17 MDH Inc ndash Fox Hill Builders1031 Fox Valley Place SWHome
18 Meadow Lakes Builders3890 Berkshire Road SWHome
19 High Definition Homes LLC1291 Boulder Creek Lane SWHome
20 Craig Swanson Builders Inc2710 Headland Court SWHome
21 Distinguished Homes by Mitch Hagen 3550 Woodstone Drive SWHome
22 Penz Custom Homes Inc3622 Triton Lane SWHome
23 Chris Fritsch Custom Homes LLC3915 Creek View Lane SWHome
24 Thimijan Custom Homes LLC5380 Scenic View Drive SWHome
25 RJ Manemann Custom Homes5406 Scenic View Drive SWHome
26 R amp M Development5448 Scenic View Drive SWHome
ShowcaseofFallFall
SHOWCASE ENTRIES
Sponsored By
WwwRochesterAreaBuilderscomSeptember 2014 | 11
DATES AND TIMES FOR THE 2014 REMODELERS TOURFriday Sept 12 Signs to be Picked Up 800 AM ndash 400 PMSaturday Sept 13 Entries Open to Public 1100 AM ndash 500 PMSunday Sept 14 Entries Open to Public 1100 AM ndash 500 PMMonday Sept 15 Signs to be Returned 800 AM ndash 500 PM
27 Stonebridge Builders5393 Scenic View Drive SWHome
28 Bigelow Homes LLC5530 Leslie Lane SWHome
29 Bigelow Homes LLC2811 Talon Place SETownhome Community
30 R Fleming Construction Inc2529 Tee Time Road SEHome
31 Centurion Ridge LLCCenturion Court NETownhome Community
32 Maplewood Homes LLC1819 Shannon Oaks Blvd NEHome
33 Countryside Builders LLC2348 Coral Ridge Place NETownhome Community
34 Countryside Builders LLC3669 Cameo LaneHome
35 Countryside Builders LLC3519 Jasper Court NEHome
36 Penz Custom Homes Inc3897 Cameo Place NEHome
37 Otis Custom Homes LLC1716 Stone Crest Dr NEHome
38 Majestic Homes Inc3950 Cedarwood Road NEHome
39 Custom Homes by Bradley Inc4053 Stone Point Drive NEHome
40 Chris Fritsch Custom Homes LLC844 Zumbro Woods Lane NW OronocoHome
1 Reynolds Design amp Construction
4905 Oaklawn Lane NWKitchen
2 Master Builders Inc4242 Arboretum Drive NW
Four Season Addition
3 Elias Construction LLC913 3rd Street NW Byron
Whole House Remodel
4 Design Studio B835 Fox Pointe Lane SW
Kitchen
5 Beyond Kitchens LLC923 10th Street SW
Kitchen
6 Chladek
Construction LLC245 1st Street NW Elgin
Exterior Remodel amp Addition
SHOWCASE ENTRIES
Sponsored By
RemodelersRemodelers
TOUR ENTRIES
ADMISSION IS FREE
wwwRochesterAreaBuilderscom12 | September 2014
PROJECT KITCHEN AND BATHROOM REMODEL CONTRACTOR BEYOND KITCHENS LLCHOST KATIE DARVAL PROJECT COORDINATORDESIGNER
REMODELING A HOME IS A UNIQUE AND MULTIFACETED CHALLENGE IT TAKES A SPECIAL KIND OF VISION TO LOOK PAST WHAT A ROOM HAS BEEN AND SEE WHAT IT COULD BE IT TAKES A SPECIAL KIND OF DETERMINATION TO OVERCOME THE OBSTACLES THAT ALWAYS COME WHEN YOUrsquoRE TRYING TO FIT SOMETHING NEW INTO A SPACE THAT WAS NOT ORIGINALLY DESIGNED FOR IT AND IT TAKES A SPECIAL KIND OF PERSONALITY TO MAKE A HOMEOWNER FEEL COMFORTABLE WITH YOU ESSENTIALLY MOVING IN AND TURNING THEIR LIVING SPACE INTO YOUR WORK PLACE
Beyond Kitchens LLC has been making those challenges their business for almost 20 years This talented team of women is composed of owner Diane Quinn CKD Christina Jorgensen AKBD and Katie Darval their project coordinator who was kind enough to give me access to the project and answer my questions about it The project inside a lovely home in Southwest Rochester with a striking red door that demands attention and welcomes you inside was about more than just a new look
for the homeowners Work responsibilities for one of the couple mean clocking in from home at all hours of the night to make calls to overseas contacts making storage for a home office very important But the clients also wanted an uncluttered look and for the overall feel of refinement and elegance to remain unspoiled So these workday necessities were given space in cabinetry adjoining the dining room complete with in-drawer outlets and USB ports so that all of their phones tablets and laptops can be tucked away out of site while not in use
To further the goal of uninterrupted elegance Beyond Kitchens went the extra mile by acquiring custom outlet and switch covers made of real stone As Katie
WwwRochesterAreaBuilderscomSeptember 2014 | 13
says ldquothe backsplash and lighting are the jewelry to the roomrdquo Using these stone covers means that the outlets and switches wonrsquot be the first thing you notice when you enter the room While they are beautifully made their real purpose is not to stand out but to blend in and to let the overall beauty of the room shine without distraction Itrsquos their attention to small details like this that truly show Beyond Kitchensrsquo ability to create a room that not only wows you on first sight but also ensures the homeowners will be happy with the project years down the road
Of course working with the homeowners and what they bring to the table is crucial When you are building a new home you can design a kitchen pick the cabinets you like best and then choose the flooring and appliances that best accent it Remodeling is rarely that simple In this case the kitchen already had beautiful hardwood floors that only needed to be restored The homeowners had also recently purchased black appliances so those needed to be allowed for in the design as well Katie says they decided to use off white cabinets in most of the kitchen to create a more spacious feel while incorporating the
black appliances with a wall of dark wood cabinetry They also enhanced the feeling of spaciousness by extending the tile backsplash all the way up to the ceiling above the range Creating space whether through i l lus ion or through creative hidden storage is often a necessity in older homes
Another necessity in older homes is dealing with those unpredictable obstacles you encounter I say unpredictable because you never know what theyrsquore going to be but you can always predict that yoursquoll run into some And the most common time for obstacles to show up is during demolition Exhibit A the Soffits As Katie notes sometimes soffits are included purely as a cosmetic feature Other times they are utilized to as a space for plumbing or electrical runs The vision for this project included removing the soffits and having the upper cabinets extend all the way to the ceiling (yet another trick to add a feeling of spacious grandeur
to the room) So of course f o l l o w i n g Murphyrsquos law these soffits c o n t a i n e d p i p i n g a n d drains from
an upstairs bathroom meaning some significant reworking of those pipes and drains had to be done to achieve their goal In the end though it was wort the trouble Oh the joys of remodeling
wwwRochesterAreaBuilderscom14 | September 2014
With all of the difficulty inherent in a remodeling project it might seem like a miracle that the contractor and the homeowner are still on speaking terms by the end of it Even if everything goes smoothly you are still interrupting the daily routine of someone for weeks or months on end But having had a chance to chat with the homeowner on my last visit after the project was complete I can report that miracles can indeed happen She had nothing but praise for Katie the team at Beyond Kitchens and all their subcontractors I too think the project was beautifully done and Irsquom happy to have been invited into their home
If yoursquod like to see more of Beyond Kitchens LLCrsquos work you can check out their website at wwwbeyondkitchenscom and make plans to visit their Remodelers Tour project located at 923 10th St SW on September 13th and 14th
Other RAB members who worked on this project include
bull Brandrup Builders
bull Bright Ideas
bull Creative Hardwood Floors
bull DeGeus Tile amp Granite
bull Ferguson Enterprises
bull Innovative Surfaces
bull Larry Newman Drywall
bull Kuntz Electric Inc
bull Top Shop of Rochester Inc
WwwRochesterAreaBuilderscomSeptember 2014 | 15
ldquoHey Matt what can you tell me about the current crop of local candidatesrdquo
Itrsquos August That means that summer is coming to a close department stores have had their ldquoback-to-schoolrdquo sections of their stores open for 6 weeks and election season is just ramping up This year we have a variety of elections taking place in Rochester Mayor City Council School Board Senator Governor US House of Representatives and State Auditor just to name a few In this monthrsquos edition of HMWUWT I will attempt to give you a little background on each of these races
MAYOR
This race was a little more crowded just a couple days ago There were three candidates Mayor Brede Cindy Maves and Stephanie Kilen On August 12 during the primary election Mayor Brede and Cindy Maves were the top two vote getters and will proceed to the General Election in November Brede received 4757 votes Maves 2473 and Kilen 1926 Look for the big issue in this election to be governmental spending since Maves used to head the Tea Party Patriots in Rochester
CITY COUNCIL WARD 3
This was another race that whittled down to two candidates during the primary Incumbent Bruce Snyder received 375 votes Vickie Anderson 188 and Nick Campion 564 Campion and Snyder both advance to the general election Ward 3 is generally considered to be NW Rochester so make sure to check which ward you live in
SCHOOL BOARD SEAT 5
Jean Marvin advanced out of the primary with 40 of the vote Terry Throndson received 33 of the vote to also advance Nora Dooley with 20 and Matthew Halleck with 7 both failed to advance to the general election
SENATOR
Senator Al Franken won his primary not surprisingly to advance as the Democratic candidate in the general election Also not surprisingly Mike McFadden won the Republican ticket and will challenge Franken in November
GOVERNOR
Jeff Johnson won the Republican primary to challenge Governor Mark Dayton in November Both candidates have ties to Rochester Jeff Johnsonrsquos running mate is former Rochester law-maker Bill Kuisle Mark Daytonrsquos running mate Tina Flint Smith is currently the chair of the Destination Medical Center Corporation
US House of Representatives District 1
Blue Earth businessman Jim Hagedorn pulled off the upset of the primary when he defeated the Republican party-endorsed candidate Aaron Miller Hagedorn will challenge the incumbent Democrat Tim Walz in November
STATE AUDITOR
I know what you are thinking why do we care about the State Auditor race and what does the State Auditor do Well the State Auditor is charged with overseeing more than $20 billion spent annually by local governments in Minnesota The State Auditor does this by performing audits of local government financial statements and by reviewing documents data reports and complaints reported to the Office The reason this race is interesting to me is because of the politicking that took place before the primary Democrat Matt Entenza bypassed the DFL convention and filed to run after the incumbent Rebecca Otto received support from the DFL party Otto defeated Entenza by a 80-20 margin Otto will face Republican Randy Gilbert in November amongst a slate of other candidates
LEARN MORE
As always Rochester Area Builders will be holding our candidate social on September 30 Make sure to come on down to mingle with the candidates and pick their brains about issues that important to you If you have any questions about the upcoming elections or anything at all feel free to email me or give me a call at the office Thanks
Matt
wwwRochesterAreaBuilderscom16 | September 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 August 2014
President Chad Kompelein
Builder VPKC Chermak
Associate VPGeorge Cundy
President ElectMike Paradise
TreasurerGerry Traut
SecretaryKurt Welker
Past PresidentKeith Kylmala
NAHB RepresentativeKathe Ostrom
Theyrsquore HereThe new codes are (finally) out Following a mutli-year process to promulgate the 2012 International Building Code the Minnesota Department of Labor and Industry (DLI) has officially published the final language for the Minnesota Building Code With the final language in hand the Builders Association of Minnesota (BAM) is adjusting and completing seven code guide documents that will be provided to members-only in September The code is slated to be enforced starting January 24 2015
Membership with the builders association is the only way to obtain a copy of these documents and as such BAM will be promoting the code guides ndash and membership ndash to all 13000 licensed contractors If interested in promoting your company statewide these code guides still have sponsorships available More at wwwbamnorgsponsorship-opps Contact Remi Stone at remibamnorg or Katherine Nielsen at katherinenbamnorg with any questions
Creating the code documents is codes expert Ed VonThoma his company Building Knowledge Inc (BKI) and a committee including 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 Thank you to these members for generously donating their time to help perfect the members-only guides
The seven code guide documents are
bull Top 20 Code Changes in the Residential Building Code
bull Top 20 Code Changes in the Energy Code
bull 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
A major benefit of membership these guides are available ONLY to members DLI issues the codes but BAM develops guides on how to implement the new codes The documents will be sent to members and made available on the BAM website optimized for both printing and easy viewing on your mobile devices out in the field
Continuing education courses based on these code guides have been assembled by BKI who is available to teach classes around the state to help members prepare to build to the new code Let your local association know if yoursquod like BKI to teach in your community
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 building industry specific construction contracts More benefits of BAM membership can be found online at wwwbamnorgmembership
WwwRochesterAreaBuilderscomSeptember 2014 | 17
Committee UpdatesAWARDS COMMITTEECHAIRPERSON Les Radcliffe Radcliffe Homes amp Remodeling
This committee is currently meeting to look for ldquospecialrdquo members to recognize for their achievements to the Association in 2014 They will choose a Rising Star - a member who has been very active in their first three years of membership as well as nominating builders and associates to receive the Builder amp Associate of the Year Award and for the company who has supported the association The Cornerstone Award In this monthrsquos newsletter you have the opportunity to nominate someone whom you have noticed working extra hard for RAB Please download the Form fill it out and return it to the RAB office
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 2014Jennifer Maass GerhardsMARKETINGRob 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
ROCHESTER AREA BUILDERS INCASKS YOU TO MAKE NOMINATIONS FOR THE
THESE MEMBERS MUST BE DEDICATED TO THE BUILDING INDUSTRY ACTIVE PARTICIPANTS OF THE ASSOCIATION
ENTHUSIASTIC
The recipients of these three awards will be chosen by the Board of Directors at their December meeting and will be awarded at the January General Membership Meeting
Previous Winners - Builders1992 Robert Gill and Richard Hanson and Joe Weis 1993 Frank Kottschade 1994 Roger Lubahn 1995 Jay Burke 1996 Dan Severson 1997 Les Radcliffe 1998 Bob DeWitz and Mark Stinson 1999 David Higgins 2000 Jackie Hanson 2001 Aaron Benike 2002 Gary Zander 2003 John McGuine 2004 Mike Coats 2005 Steve Buss 2006 Mike Hortop 2007 Jodi Hruska 2008 Jay Burke 2009 Kevin Reckinger 2010 Paul Gregor 2011 Mike Larson 2012 Kathy Einck 2013 Les Radcliffe
Previous Winners - Associates1985 Don Soderberg 1987 Robert Suk 1988 Jim Buchan 1989 Mary Moylan 1990 Craig Wendland 1991 Ron Bailey 1992 Bill Tointon 1993 Wayne Lewis 1994 Donna Scott Herriot 1995 Julie Timmerman 1996 John Arnold 1997 Steve Christopherson 1998 Brent Buchan 1999 Kim Zimmer 2000 Julie Praus 2001 Karin Buechler 2002 Dennis Hanson 2003 Carla Kilpatrick 2004 Brent Buchan 2005 Jim Gander 2006 Brian Carlson 2007 John Eischen 2008 Wayne Eisen 2009 Jennifer Maass 2010 Tony Joseph 2011 Patty Hanson 2012 David Kane 2013 Jennifer Maass
Previous Winners - Company 2009 Energy Products amp Design 2010 Knutson Construction 2011 Minnesota Energy Resources 2012 Wendland Utz 2013 Home Federal Savings Bank
Current President and Vice-President are not eligible for selection
I Nominate
Reasons for Nomination
I Nominate
Reasons for Nomination
I Nominate
CLICK HERETO DOWNLOAD
wwwRochesterAreaBuilderscom18 | September 2014
construction fashion expose
c o n s t r u c t i o n f a s h i o n e x p o s e
WwwRochesterAreaBuilderscomSeptember 2014 | 19
Members2014 Commercial Builders Council116 Members as of 63014AB Systems IncAccord Electric IncAdvanced DisposalAlpha Video amp AudioAlvin E Benike IncBEVCOMMThe Blue Book
of Building amp Construction
The Boldt CompanyBraun Intertec
CorporationBriese Iron Works IncBrock White CompanyCO Brown AgencyCambriaCarpet OneCharter
CommunicationsMedia
Chosen Valley Testing Inc
Clayton Thomas Blinds of Rochester
Construction Partnership
CRW architecture + design group inc
Custom AlarmCustom Communications Inc
D2E LLCDonlar Construction
CompanyDoyle Conner CompanyDunham Associates
IncDunlap amp SeegerJE Dunn ConstructionEastwood Bankeci llcElcor Construction IncEnergy Products amp
Design IncEnventisExpert Insulation IncFat Willyrsquos Bar amp GrillFerguson EnterprisesGerhardsGoodin CompanyHaley Comfort Systems
(Authorized FireSide Dealer)
WL Hall CompanyHDR ArchitectureHeartman InsuranceHGA Architects and
EngineersHillerrsquos Flooring AmericaHiMEC at HomeHome Federal Savings
BankHome Improvement
Professionals IncHunt Electric
CorporationInstitute for
Environmental Assessment
PA Johnson Construction LLC
KampM Glass CompanyKane amp Johnson
Architects IncKey Builders IncKnutson Construction
ServicesKomitt Concrete IncKraus-Anderson
Construction CompanyKreofsky Building
SuppliesKruse LumberKuntz Electric Inc
Kwik Trip IncLeitzen Concrete
Products IncMarvin Windows amp
DoorsMavo Systems IncMcGhie amp Betts - a
Division of WSB amp Associates Inc
McGough ConstructionMEC Construction IncMEP AssociatesMerchants BankMerit Contracting IncMidwest Walls LLCMinnesota Energy
Resources CorporationMinnwest BankNickelson Painting IncNorth Star Stone amp
MasonryOlmsted National BankOn Site CompaniesPalmer Soderberg IncPella Windows amp DoorsPeoplersquos Energy
CooperativePompeii Painting IncPrehn Building Sales
IncPremier Bank RochesterProBuild Company LLCReliable Contractors
IncRochester Area
Appraisals LLCRochester Area Econ
Development IncRochester Public
UtilitiesRochester Ready Mix
Concrete CoRochester Sign Service
IncRochester Title amp
Escrow Company IncRSP ArchitectsRyan Electric IncSchoeppner IncSchwab LLCSchwickertrsquos Tecta
America LLCSEH YaggyStantecSterling State BankStructural Design
Group IncSuperior MechanicalTamarack Materials of
Rochester IncThink Mutual BankTonna Mechanical IncTSP Architects amp
EngineersUnited RentalsThe Urban Studio LLCValor Mechanical IncVeit CompaniesVertical Limit
ConstructionViking Automatic
Sprinkler CompanyViking Electric SupplyWeis Builders IncWells Fargo Bank
Minnesota NAWendland UtzWest BankWHKS amp CompanyWHV IncWidseth Smith Nolting
BUILDERS COUNCILCOMMERCIAL
a d i v i s i o n o f R o c h e s t e r A r e a B u i l d e r s I n c
EXECUTIVE COMMITTEEChairperson Chris Terry Knutson Construction ServicesVice Chairperson Nick Leimer Kraus-Anderson Construction CompanyPast Chairperson Sue Hanson Rochester Title amp Escrow Company IncMembers-at-LargeJohn Hill Schwab LLCShaun Knode AB Systems IncJohn Kuntz Kuntz Electric IncLevi Kaiser AE Benike IncMatt Mohs WHKS amp CompanyMike Nordstrom Superior Mechanical
August Meeting Photos
New Member
Clayton Thomas Blinds of RochesterDarlene Drew
2400 Country Club Rd SWRochester MN 55902
507-258-4457
August MEETINGDATE Wednesday August 6th 2014TIME Registration amp Networking at 700 AM Program at 730 AMPLACE Ramada Hotel amp Conference CenterPROGRAM World Fair 2023SPEAKERS Mark Ritchie Minnesota Secretary of State
wwwRochesterAreaBuilderscom20 | September 2014
2014 VALUATION 2013 VALUATION
New Residential Single Family Dwelling 30 7389265 39 9441463
Townhome Dwelling 8 1224172 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 45 283519 33 160271
Room Addition 3 85012 4 177306
Porch Additions 1 8000 2 39494
Other Additions 4 38500 2 23940
Basement Finish 18 240045 24 323650
Alterations 41 234327 45 281947
Multi-Family Addition 0 0 4 31620
Multi-Family Alterations 14 151160 6 4615400 New Commercial Assembly (Church) 0 0 0 0
Assembly (General) 0 0 1 2720000
Assembly (RestaurantBar) 0 0 0 0
Business 0 0 0 0
Education 0 0 0 0
FactoryIndustrial 0 0 0 0
Institution 0 0 0 0
Mercantile 0 0 1 580000
Miscelaneous 0 0 0 0
Utility (General) 0 0 1 90000
Residential (CareAssisted Living) 0 0 0 0
Storage (General) 0 0 0 0
Storage (Warehouse) 0 0 0 0 Existing CommercialAddition 3 4313000 2 1214050
Alterations 25 4451261 40 6158997
Structural Shell 0 0 0 0
ldquoWhite Boxrdquo 0 0 0 0
Interior Demolition Only 2 2017000 3 54800
Other Phased Permits 1 6700 0 0
Other ConstructionBusiness Signs 4 10630 12 87202
Advertising Sign 0 0 0 0
Footings amp Foundations 1 76000 1 1100000
Demolition 0 1
Rochester Building Permits July 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
June 81 59 43 36 36 12 26 32 33 41
July 58 36 60 23 21 23 8 39 39 38
TOTAL 397 329 275 178 139 128 102 180 201 192
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 702 506 417 302 274 200 191 299 326 192
Single Family Homes
Year To Date Statistics 2014 2013 NO VALUATION NO VALUATION
Building Permits Issued to Date 1377 199056393 1280 149430856
Single Family Dwelling 186 45041027 201 47362534
Multi-Family Buildings Total Units 39 1 3702052 0 0
Trade Permits Issued to Date 4558 46616612 4145 40187782
Electrical 1573 20801155 1355 18804490
Electrical (Temp Service) 159 46875 188 39500
Mechanical 1187 12309661 1078 10781042
Gas Piping 317 546576 286 263280
Fireplace 237 629268 215 506084
Hydronic System 94 4005425 69 3097653
Plumbing 991 8277652 954 6695793
Total Permits YTD 5935 245673005 5425 189618638
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
WwwRochesterAreaBuilderscomSeptember 2014 | 21
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
JUNE 2014
New Residential NUMBER VALUATION
Single Family 9 1991399
Commercial
Addition 1 89470
Existing Residential
Deck Addition 7 41847
Basement Finish 1 12000
Garage 1 2267
Accessory Building 2 11500
ByronBuilding Permits
JULY 2014
Existing Residential NUMBER VALUATION
Sprinkler System 1 5000
Residing 1 5000
Reroof 5 25000
Deck 2 6000
Mechanical 1 1000
Garage 1 20000
Pine IslandBuilding Permits
wwwRochesterAreaBuilderscom22 | September 2014
In early 2000 the SampP 500 hit 1553 and the tech-heavy NASDAQ surpassed 5000 Two years later the SampP was at 768 and the NASDAQ was at 800 In the process $6 trillion in household wealth was wiped out We now call that period the dot-com bubble About half a decade later we experienced the housing market bubble Interestingly the value of residential real estate destroyed during that crisis was also about $6 trillion Yet the dot-com bubble resulted in a mild recession while the housing bust lead to the Great Recession What was different It turns a major culprit was which households suffered the destruction of wealth
To set the table ponder this During the housing bust retail spending fell 8 from 2007 to 2009 one the largest drops ever By contrast retail spending increased by 5 between 2000 and 2002 Clearly the losses sustained during the dot-com bust had minimal impacts on household spending decisions and thus on the overall economy Here is why
The decline in home prices that began in 2007 was highly concentrated among households with very limited financial resources As a result these now much-poorer households dramatically pulled back on spending and in the process unwittingly helped usher in the Great Recession Remember retail spending is about a quarter of GDP so a decline of 8 over two years reduces GDP by 2 -- a huge amount It is as if these poorer households were the transmission mechanism through which the Great Recession got its energy
Exacerbating and reinforcing this downward spiral was the role of debt or leverage Remember by 2004 or 2005 a large percentage of first-time home buyers had low FICO scores sketchy employment histories
and limited assets To compensate these Alt-A and subprime buyers borrowed heavily with their now highly levered house being their major financial asset For example among the poorest quintile of the population 80 of their net worth is in their house Even among the middle quintile home equity is still 60 of their net worth By borrowing so much just a small decline in house prices could put these buyers upside down and wipe them out Which is exactly what happened and is what turned a recession into the Great Recession Between 2007 and 2010 the bottom 20 of the population saw their net worth fall from about $30000 to zero
By contrast the financial losses sustained during the dot-com bubble were essentially walled off and had relatively little effect on the overall economy This is because stock ownership is concentrated among the wealthy As the wealthy have less debt and more assets they could essentially shrug off the much larger financial losses they sustained yet not have them alter their day-to-day spending decisions Among the wealthiest 20 of the population home equity represents just 25 of their net worth Moreover depression-era federal laws make it hard to borrow more than 50 of the cost of stock purchases thereby limiting the potentially negative role of leverage
In short the home buyers who bought in 2004 and 2005 had limited wealth and had more of it at risk than earlier home buyers When the music stopped they were highly levered and wholly unable to protect themselves That quickly resulted in (among other things) reduced spending which shrank GDP and quickly cascaded into the Great Recession
+++++++++++++++++
All Bubbles Are Not ++++++++++Created Equal + + + + + + + + + + + + + + + + +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
WwwRochesterAreaBuilderscomSeptember 2014 | 23
NONE
MEMBERSHIPS PENDINGNONE
The firms listed below have applied for membership in Rochester Area Builders Inc
MEMBERSHIP TOTAL 451RETENTION RATE 929
As of 63014
WE WELCOME THE FOLLOWING NEW MEMBERS IN AUGUST
Membership InformationMembership Renewals as of 73114
Two to Four Years
Kraus-Anderson Construction Company 2012Electrical Solutions amp Service 2011Energy Panel Structures 2011Lowersquos Home Improvement 2011Minnwest Bank 2011RCTC Carpentry Program 2011Reynolds Design and Construction 2010
Five to Nine Years
Great River Overhead Door 2007Meadow Lakes Builders 2007Rochester International Event Center 2007The Urban Studio LLC 2007Hunt Electric Corporation 2006Otis Custom Homes LLC 2006Larry Newman Drywall 2005Pahl amp Kaye Inc 2005Synergy Products 2005Tradesmen International Inc 2005
Ten to 19 Years
Greg Wellik Construction 2004Morris Concrete Inc 2004AampA Electric amp Underground Inc 2003Advanced Disposal 2002Knutson Construction Services 2002Tagrsquos Drywall Inc 2001Ronningen Roofing Inc 2000Ferguson Enterprises 1998
20 to 24 Years
Bright Ideas 1993Hirshfieldrsquos Decorating Center 1993Brock White Company 1991Dan Severson Builders Inc 1991
25 Years amp More
Gerhards 1988Express Employment Professionals 1985Townsquare Media Rochester 1983Smith Schafer amp Associates Ltd 1982Hayfield Window amp Door Company 1981Quality Overhead Door Company Inc 1981Energy Products amp Design Inc 1980Tom Brogan Heating amp Air Conditioning 1980Alvin E Benike Inc 1979Pella Windows amp Doors 1978Northern Lights amp Furnishings 1976Wells Fargo Home Mortgage 1964Alexander amp Sons Builders 1962
NEW APPLICANTS
CLIFTONLARSONALLEN LLP7389 Airport View Drive SW Suite 100
Rochester MN 55902Phone 507-280-2300Contact Paul Alberts
Associate MemberAccountingConsulting
Sponsored by Joel Alberts AampA Electric amp Underground Inc
DISTINGUISHED HOMES BY MITCH HAGEN LLC3015 18th Avenue SWRochester MN 55902Phone 507- 951-1962Contact Mitch Hagen
Builder MemberResidential Builder amp Remodeler
Sponsored by Brandon Vagt XRG Concepts LLC
LOW VOLTAGE CONTRACTORS
4200 West 76th StreetMinneapolis MN 55435
Phone 952-835-4600Contact Cathy Trast
Associate MemberFire amp Life Safety Integrated Systems Service Provider
Sponsored by John Eckerman The Boldt Company
PACE INTERNATIONAL 3582 Technology Drive NW
Rochester MN 55901Phone 507-424-4900Contact Jim WestraAssociate Member
Commercial Satellite amp Cable Television ProductsSponsored by Jay Burke Heartwood Homes of Rochester Inc
wwwRochesterAreaBuilderscom24 | September 2014
Put your membershipto work nowMoney-saving discounts that benefit yourbusiness your employees and your family
wwwnahborgMA
National Association of Home Builders
R
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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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
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WwwRochesterAreaBuilderscomSeptember 2014 | 3
August 12 2014 Election season is now in full swing The August primaries narrowed down the field of candidates and with the end of summer upon us more voters are now paying attention to the choices theyrsquoll be making in November RAB does not endorse candidates for any office We do however ask questions of all our elected and aspiring elected officials to ensure that we know where they stand on issues important to the building industry More importantly though wersquoll make sure that they know where we stand on the issues too Your RAB staff Board and Government Affairs Committee work constantly to
make sure that our elected officials understand the actual real-world ldquodownstreamrdquo consequences of development plans taxes fees and regulations that they may be proposing that all too often get swept under the rug We will be ever-vigilant about looking out for the interests of RAB members and hope that you will get engaged this fall to join us Someone once said that ldquothe world is run by those who show uprdquo and nowhere is that more true than in the election of public officials who will be shaping building industry policy for years to come Interesting in finding out more or in getting involved
bull Come to our September 30th Legislative Forum We will be inviting all candidates for city county and state offices to this RAB members-only event This is your chance to hear first-hand from the candidates themselves about their positions and to share your opinions with them
bull Write a letter to the editor Donrsquot be afraid to let public officials know that you helped build this cityhellipand you vote
bull Contribute financially either directly to the candidate of your choice or through the Builderrsquos Association of Minnesota Political Action Committee (BAM-PAC) It doesnrsquot matter if you donate $5 or $500 find out where a candidate stands and make a gift thatrsquos meaningful to you
bull If you are really motivated consider running for office yourself All candidates regardless of position or party affiliation deserve our respect for being willing to put themselves on the line It may be too late for 2014 but our area always needs dedicated willing public servants who understand this industry and care about our community
Historical preservationhellipmandatory fire sprinklershellipDMChellipupdated development planshellipsingle and multi-family homeshellipwith so much going on none of us can afford not to be involved Rochester Area Builders will be working campaigning and fighting every single day to make sure we have a community where you and your employees can grow thrive and succeed None of us is as strong as all of us and we hope that you will join us to make sure we have a community where everyone can enjoy the excellent standard of living job base and vibrant community that a strong local building industry can provide Election Day will be here before you know it
Have a great month
Kevin Worden2014 RAB President
Index News from the President 3Sporting Clay Shoot 4August Networking Night 5Green Building Expo 6-7Association Scrapbook 8-9Fall Showcase Entries 10-11Remodelers Tour Entries 11On The Job 12-14Hey Matt Whatrsquos up with that 15BAM Update 16Committee Updates 17Remodel It Right News 18Commercial Builders Council 19Rochester Permits 20ByronPine Island Permits 21Real Estate Data 21Elliot Eisenberg Article 22Membership Information 23NAHB Member Discounts 24
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
wwwRochesterAreaBuilderscom4 | September 2014
Join us at the RAB Sporting Clay ShootThursday September 4 2014
Calling all Hunters Shooters Outdoorsmen or anyone looking to have a fun time with LIVE AMMUNITION RAB is hosting our annual SPORTING CLAY SHOOT Wersquoll have 20 stations and each one is different Teams will rotate through the stations trying to rack up the highest score possible Donrsquot miss out sign up soon
Click Here to Register Onlineor download the registration form here
GAMEHAVEN COUNCIL SCOUT CAMP 5015 Simpson Rd SE
Hours100 PM - 130 PMRegistration and Mandatory Safety Talks200 PM Shooting Starts 500 PM BBQ Dinner amp Beer600 PM Check Presentation to Boy Scouts Prizes and Raffle Drawing
SCOUTING OF SOUTHEASTERN MINNESOTA
Presented By
WwwRochesterAreaBuilderscomSeptember 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 Jeremy Bigelow Bigelow Homes 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 Sheehan 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 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
Donrsquot forget to mark you calendar for the August Networking Night
Tuesday August 26th at Premier Bank Rochester
3145 Wellner Dr NEHours 500 pm - 700 pm
WHY PREMIER
Premier is large enough to offer state of the art financial products and services yet small enough to give clients the personal attention they deserve Premierrsquos stable lending team take the time to understand clientrsquos needs so they are better served Established and continuing as independent community-oriented banks Premier Banks continue to meet the financial need of our clients and supply the credit necessary for local businesses and industries to grow
OUR MISSION
To be the premier community bank in the region and the bank of choice in each of the communities we serve
To foster long-term commercial relationships built on trust by observing the highest standards of corporate and social
responsibility
To create value for our customers employees and shareholders through excellent performance state of the
art technology and a relentless commitment to service
PREMIER BANK IS HAPPY TO BE CELEBRATING THEIR 40TH ANNIVERSARY
Hosted By
PremierBanksMEMBER
wwwRochesterAreaBuilderscom6 | September 2014
What Green Building Expomdashan event for the
public
When Saturday Oct 25th -or- Nov 1st
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
Please reply with your registraon and payment by October 3rd
Signature Event Sponsors
NEW DATE DEADLINE EXTENDEDEXHIBITORS NEEDEDNEW DATE DEADLINE EXTENDEDEXHIBITORS NEEDED
C
M
Y
CM
MY
CY
CMY
K
RFPpdf 8212014 112647 AM
WwwRochesterAreaBuilderscomSeptember 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
Green Building Expo Registraon Form
Register by October 3rd 2014 by emailing a
scanned version of this form to
MahewLRochesterAreaBuilderscom
or by faxing it to Rochester Area Builders at
507-280-6351 If you would like to mail in the
form please mail it to
Rochester Area Builders Inc
108 Elton Hills Ln NW
Rochester MN 55901
C
M
Y
CM
MY
CY
CMY
K
RFP - Registrationpdf 8212014 114006 AM
wwwRochesterAreaBuilderscom8 | September 2014
July Networking NightAssociation Scrapbook
Thank you to all who attended Membership Appreciation Night at the Rochester Area Buildersrsquo office on July 29 Thank you Home Federal for sponsoring the
beverages and Home Improvement Professionals for the tents We would like to thank everybody for supporting BAM-PAC by participating in the wine amp beer tasting We raised over $300 for PAC If you would like to purchase a wine glass or beer flight glass (with the RAB logo) there are a few left at $5 each Sorry at this point the glasses are empty
GIVE AWAYSCharlie Brown PC Applications won a gift card to the Hubble House from RAB and the proverbial bad penny Rick Dold Godwin Law Office won ldquoDinner on Usrdquo from the Post Bulletin
Thank You
WwwRochesterAreaBuilderscomSeptember 2014 | 9
Association ScrapbookMember Appreciation Night
APPRECIATION
wwwRochesterAreaBuilderscom10 | September 2014
DATES AND TIMES FOR THE 2014 FALL SHOWCASE OF HOMESFriday Sept 12 Signs to be Picked Up 800 AM ndash 400 PMSaturday Sept 13 Entries Open to Public 1100 AM ndash 500 PMSunday Sept 14 Entries Open to Public 1100 AM ndash 500 PMSaturday Sept 20 Entries Open to Public 1100 AM ndash 500 PMSunday Sept 21 Entries Open to Public 1100 AM ndash 500 PMMonday Sept 22 Signs to be Returned 800 AM ndash 500 PM
1 Med City Builders of Rochester LLC60766 254th Avenue MantorvilleHome
2 Somerby Golf Community943 Somerby Parkway NE ByronDevelopment
3 Summit Custom Homes LLC943 Somerby Parkway NE ByronHome
4 Bigelow Homes LLC488 15th Ave NE ByronHome
5 Countryside Builders LLC1548 Wickford Place NE ByronHome
6 Derby Construction LLC6341 Oak Meadow Lane NWHome
7 Wright Homes Inc5897 Dogwood CourtTownhome
8 Thimijan Custom Homes LLC2326 Granite Circle NWHome
9 JNS Builders2583 Flagstone Lane NWHome
10 Cravath Homes LLC6878 Larkspur ParkwayHome
11 Bigelow amp Lennon Construction6320 Mallard Drive NWHome
12 Bigelow Homes LLC5542 Harvest Lake Drive NWHome
13 DeWitz Home Builders6221 51st Street NWHome
14 Majestic Homes Inc4818 Bishop Lane NWHome
15 Exclusive Home Builders amp Remodelers3609 46th Avenue NWHome
16 MDH Inc ndash Orchard Hills Builders626 Gates Lane SWHome
17 MDH Inc ndash Fox Hill Builders1031 Fox Valley Place SWHome
18 Meadow Lakes Builders3890 Berkshire Road SWHome
19 High Definition Homes LLC1291 Boulder Creek Lane SWHome
20 Craig Swanson Builders Inc2710 Headland Court SWHome
21 Distinguished Homes by Mitch Hagen 3550 Woodstone Drive SWHome
22 Penz Custom Homes Inc3622 Triton Lane SWHome
23 Chris Fritsch Custom Homes LLC3915 Creek View Lane SWHome
24 Thimijan Custom Homes LLC5380 Scenic View Drive SWHome
25 RJ Manemann Custom Homes5406 Scenic View Drive SWHome
26 R amp M Development5448 Scenic View Drive SWHome
ShowcaseofFallFall
SHOWCASE ENTRIES
Sponsored By
WwwRochesterAreaBuilderscomSeptember 2014 | 11
DATES AND TIMES FOR THE 2014 REMODELERS TOURFriday Sept 12 Signs to be Picked Up 800 AM ndash 400 PMSaturday Sept 13 Entries Open to Public 1100 AM ndash 500 PMSunday Sept 14 Entries Open to Public 1100 AM ndash 500 PMMonday Sept 15 Signs to be Returned 800 AM ndash 500 PM
27 Stonebridge Builders5393 Scenic View Drive SWHome
28 Bigelow Homes LLC5530 Leslie Lane SWHome
29 Bigelow Homes LLC2811 Talon Place SETownhome Community
30 R Fleming Construction Inc2529 Tee Time Road SEHome
31 Centurion Ridge LLCCenturion Court NETownhome Community
32 Maplewood Homes LLC1819 Shannon Oaks Blvd NEHome
33 Countryside Builders LLC2348 Coral Ridge Place NETownhome Community
34 Countryside Builders LLC3669 Cameo LaneHome
35 Countryside Builders LLC3519 Jasper Court NEHome
36 Penz Custom Homes Inc3897 Cameo Place NEHome
37 Otis Custom Homes LLC1716 Stone Crest Dr NEHome
38 Majestic Homes Inc3950 Cedarwood Road NEHome
39 Custom Homes by Bradley Inc4053 Stone Point Drive NEHome
40 Chris Fritsch Custom Homes LLC844 Zumbro Woods Lane NW OronocoHome
1 Reynolds Design amp Construction
4905 Oaklawn Lane NWKitchen
2 Master Builders Inc4242 Arboretum Drive NW
Four Season Addition
3 Elias Construction LLC913 3rd Street NW Byron
Whole House Remodel
4 Design Studio B835 Fox Pointe Lane SW
Kitchen
5 Beyond Kitchens LLC923 10th Street SW
Kitchen
6 Chladek
Construction LLC245 1st Street NW Elgin
Exterior Remodel amp Addition
SHOWCASE ENTRIES
Sponsored By
RemodelersRemodelers
TOUR ENTRIES
ADMISSION IS FREE
wwwRochesterAreaBuilderscom12 | September 2014
PROJECT KITCHEN AND BATHROOM REMODEL CONTRACTOR BEYOND KITCHENS LLCHOST KATIE DARVAL PROJECT COORDINATORDESIGNER
REMODELING A HOME IS A UNIQUE AND MULTIFACETED CHALLENGE IT TAKES A SPECIAL KIND OF VISION TO LOOK PAST WHAT A ROOM HAS BEEN AND SEE WHAT IT COULD BE IT TAKES A SPECIAL KIND OF DETERMINATION TO OVERCOME THE OBSTACLES THAT ALWAYS COME WHEN YOUrsquoRE TRYING TO FIT SOMETHING NEW INTO A SPACE THAT WAS NOT ORIGINALLY DESIGNED FOR IT AND IT TAKES A SPECIAL KIND OF PERSONALITY TO MAKE A HOMEOWNER FEEL COMFORTABLE WITH YOU ESSENTIALLY MOVING IN AND TURNING THEIR LIVING SPACE INTO YOUR WORK PLACE
Beyond Kitchens LLC has been making those challenges their business for almost 20 years This talented team of women is composed of owner Diane Quinn CKD Christina Jorgensen AKBD and Katie Darval their project coordinator who was kind enough to give me access to the project and answer my questions about it The project inside a lovely home in Southwest Rochester with a striking red door that demands attention and welcomes you inside was about more than just a new look
for the homeowners Work responsibilities for one of the couple mean clocking in from home at all hours of the night to make calls to overseas contacts making storage for a home office very important But the clients also wanted an uncluttered look and for the overall feel of refinement and elegance to remain unspoiled So these workday necessities were given space in cabinetry adjoining the dining room complete with in-drawer outlets and USB ports so that all of their phones tablets and laptops can be tucked away out of site while not in use
To further the goal of uninterrupted elegance Beyond Kitchens went the extra mile by acquiring custom outlet and switch covers made of real stone As Katie
WwwRochesterAreaBuilderscomSeptember 2014 | 13
says ldquothe backsplash and lighting are the jewelry to the roomrdquo Using these stone covers means that the outlets and switches wonrsquot be the first thing you notice when you enter the room While they are beautifully made their real purpose is not to stand out but to blend in and to let the overall beauty of the room shine without distraction Itrsquos their attention to small details like this that truly show Beyond Kitchensrsquo ability to create a room that not only wows you on first sight but also ensures the homeowners will be happy with the project years down the road
Of course working with the homeowners and what they bring to the table is crucial When you are building a new home you can design a kitchen pick the cabinets you like best and then choose the flooring and appliances that best accent it Remodeling is rarely that simple In this case the kitchen already had beautiful hardwood floors that only needed to be restored The homeowners had also recently purchased black appliances so those needed to be allowed for in the design as well Katie says they decided to use off white cabinets in most of the kitchen to create a more spacious feel while incorporating the
black appliances with a wall of dark wood cabinetry They also enhanced the feeling of spaciousness by extending the tile backsplash all the way up to the ceiling above the range Creating space whether through i l lus ion or through creative hidden storage is often a necessity in older homes
Another necessity in older homes is dealing with those unpredictable obstacles you encounter I say unpredictable because you never know what theyrsquore going to be but you can always predict that yoursquoll run into some And the most common time for obstacles to show up is during demolition Exhibit A the Soffits As Katie notes sometimes soffits are included purely as a cosmetic feature Other times they are utilized to as a space for plumbing or electrical runs The vision for this project included removing the soffits and having the upper cabinets extend all the way to the ceiling (yet another trick to add a feeling of spacious grandeur
to the room) So of course f o l l o w i n g Murphyrsquos law these soffits c o n t a i n e d p i p i n g a n d drains from
an upstairs bathroom meaning some significant reworking of those pipes and drains had to be done to achieve their goal In the end though it was wort the trouble Oh the joys of remodeling
wwwRochesterAreaBuilderscom14 | September 2014
With all of the difficulty inherent in a remodeling project it might seem like a miracle that the contractor and the homeowner are still on speaking terms by the end of it Even if everything goes smoothly you are still interrupting the daily routine of someone for weeks or months on end But having had a chance to chat with the homeowner on my last visit after the project was complete I can report that miracles can indeed happen She had nothing but praise for Katie the team at Beyond Kitchens and all their subcontractors I too think the project was beautifully done and Irsquom happy to have been invited into their home
If yoursquod like to see more of Beyond Kitchens LLCrsquos work you can check out their website at wwwbeyondkitchenscom and make plans to visit their Remodelers Tour project located at 923 10th St SW on September 13th and 14th
Other RAB members who worked on this project include
bull Brandrup Builders
bull Bright Ideas
bull Creative Hardwood Floors
bull DeGeus Tile amp Granite
bull Ferguson Enterprises
bull Innovative Surfaces
bull Larry Newman Drywall
bull Kuntz Electric Inc
bull Top Shop of Rochester Inc
WwwRochesterAreaBuilderscomSeptember 2014 | 15
ldquoHey Matt what can you tell me about the current crop of local candidatesrdquo
Itrsquos August That means that summer is coming to a close department stores have had their ldquoback-to-schoolrdquo sections of their stores open for 6 weeks and election season is just ramping up This year we have a variety of elections taking place in Rochester Mayor City Council School Board Senator Governor US House of Representatives and State Auditor just to name a few In this monthrsquos edition of HMWUWT I will attempt to give you a little background on each of these races
MAYOR
This race was a little more crowded just a couple days ago There were three candidates Mayor Brede Cindy Maves and Stephanie Kilen On August 12 during the primary election Mayor Brede and Cindy Maves were the top two vote getters and will proceed to the General Election in November Brede received 4757 votes Maves 2473 and Kilen 1926 Look for the big issue in this election to be governmental spending since Maves used to head the Tea Party Patriots in Rochester
CITY COUNCIL WARD 3
This was another race that whittled down to two candidates during the primary Incumbent Bruce Snyder received 375 votes Vickie Anderson 188 and Nick Campion 564 Campion and Snyder both advance to the general election Ward 3 is generally considered to be NW Rochester so make sure to check which ward you live in
SCHOOL BOARD SEAT 5
Jean Marvin advanced out of the primary with 40 of the vote Terry Throndson received 33 of the vote to also advance Nora Dooley with 20 and Matthew Halleck with 7 both failed to advance to the general election
SENATOR
Senator Al Franken won his primary not surprisingly to advance as the Democratic candidate in the general election Also not surprisingly Mike McFadden won the Republican ticket and will challenge Franken in November
GOVERNOR
Jeff Johnson won the Republican primary to challenge Governor Mark Dayton in November Both candidates have ties to Rochester Jeff Johnsonrsquos running mate is former Rochester law-maker Bill Kuisle Mark Daytonrsquos running mate Tina Flint Smith is currently the chair of the Destination Medical Center Corporation
US House of Representatives District 1
Blue Earth businessman Jim Hagedorn pulled off the upset of the primary when he defeated the Republican party-endorsed candidate Aaron Miller Hagedorn will challenge the incumbent Democrat Tim Walz in November
STATE AUDITOR
I know what you are thinking why do we care about the State Auditor race and what does the State Auditor do Well the State Auditor is charged with overseeing more than $20 billion spent annually by local governments in Minnesota The State Auditor does this by performing audits of local government financial statements and by reviewing documents data reports and complaints reported to the Office The reason this race is interesting to me is because of the politicking that took place before the primary Democrat Matt Entenza bypassed the DFL convention and filed to run after the incumbent Rebecca Otto received support from the DFL party Otto defeated Entenza by a 80-20 margin Otto will face Republican Randy Gilbert in November amongst a slate of other candidates
LEARN MORE
As always Rochester Area Builders will be holding our candidate social on September 30 Make sure to come on down to mingle with the candidates and pick their brains about issues that important to you If you have any questions about the upcoming elections or anything at all feel free to email me or give me a call at the office Thanks
Matt
wwwRochesterAreaBuilderscom16 | September 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 August 2014
President Chad Kompelein
Builder VPKC Chermak
Associate VPGeorge Cundy
President ElectMike Paradise
TreasurerGerry Traut
SecretaryKurt Welker
Past PresidentKeith Kylmala
NAHB RepresentativeKathe Ostrom
Theyrsquore HereThe new codes are (finally) out Following a mutli-year process to promulgate the 2012 International Building Code the Minnesota Department of Labor and Industry (DLI) has officially published the final language for the Minnesota Building Code With the final language in hand the Builders Association of Minnesota (BAM) is adjusting and completing seven code guide documents that will be provided to members-only in September The code is slated to be enforced starting January 24 2015
Membership with the builders association is the only way to obtain a copy of these documents and as such BAM will be promoting the code guides ndash and membership ndash to all 13000 licensed contractors If interested in promoting your company statewide these code guides still have sponsorships available More at wwwbamnorgsponsorship-opps Contact Remi Stone at remibamnorg or Katherine Nielsen at katherinenbamnorg with any questions
Creating the code documents is codes expert Ed VonThoma his company Building Knowledge Inc (BKI) and a committee including 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 Thank you to these members for generously donating their time to help perfect the members-only guides
The seven code guide documents are
bull Top 20 Code Changes in the Residential Building Code
bull Top 20 Code Changes in the Energy Code
bull 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
A major benefit of membership these guides are available ONLY to members DLI issues the codes but BAM develops guides on how to implement the new codes The documents will be sent to members and made available on the BAM website optimized for both printing and easy viewing on your mobile devices out in the field
Continuing education courses based on these code guides have been assembled by BKI who is available to teach classes around the state to help members prepare to build to the new code Let your local association know if yoursquod like BKI to teach in your community
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 building industry specific construction contracts More benefits of BAM membership can be found online at wwwbamnorgmembership
WwwRochesterAreaBuilderscomSeptember 2014 | 17
Committee UpdatesAWARDS COMMITTEECHAIRPERSON Les Radcliffe Radcliffe Homes amp Remodeling
This committee is currently meeting to look for ldquospecialrdquo members to recognize for their achievements to the Association in 2014 They will choose a Rising Star - a member who has been very active in their first three years of membership as well as nominating builders and associates to receive the Builder amp Associate of the Year Award and for the company who has supported the association The Cornerstone Award In this monthrsquos newsletter you have the opportunity to nominate someone whom you have noticed working extra hard for RAB Please download the Form fill it out and return it to the RAB office
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 2014Jennifer Maass GerhardsMARKETINGRob 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
ROCHESTER AREA BUILDERS INCASKS YOU TO MAKE NOMINATIONS FOR THE
THESE MEMBERS MUST BE DEDICATED TO THE BUILDING INDUSTRY ACTIVE PARTICIPANTS OF THE ASSOCIATION
ENTHUSIASTIC
The recipients of these three awards will be chosen by the Board of Directors at their December meeting and will be awarded at the January General Membership Meeting
Previous Winners - Builders1992 Robert Gill and Richard Hanson and Joe Weis 1993 Frank Kottschade 1994 Roger Lubahn 1995 Jay Burke 1996 Dan Severson 1997 Les Radcliffe 1998 Bob DeWitz and Mark Stinson 1999 David Higgins 2000 Jackie Hanson 2001 Aaron Benike 2002 Gary Zander 2003 John McGuine 2004 Mike Coats 2005 Steve Buss 2006 Mike Hortop 2007 Jodi Hruska 2008 Jay Burke 2009 Kevin Reckinger 2010 Paul Gregor 2011 Mike Larson 2012 Kathy Einck 2013 Les Radcliffe
Previous Winners - Associates1985 Don Soderberg 1987 Robert Suk 1988 Jim Buchan 1989 Mary Moylan 1990 Craig Wendland 1991 Ron Bailey 1992 Bill Tointon 1993 Wayne Lewis 1994 Donna Scott Herriot 1995 Julie Timmerman 1996 John Arnold 1997 Steve Christopherson 1998 Brent Buchan 1999 Kim Zimmer 2000 Julie Praus 2001 Karin Buechler 2002 Dennis Hanson 2003 Carla Kilpatrick 2004 Brent Buchan 2005 Jim Gander 2006 Brian Carlson 2007 John Eischen 2008 Wayne Eisen 2009 Jennifer Maass 2010 Tony Joseph 2011 Patty Hanson 2012 David Kane 2013 Jennifer Maass
Previous Winners - Company 2009 Energy Products amp Design 2010 Knutson Construction 2011 Minnesota Energy Resources 2012 Wendland Utz 2013 Home Federal Savings Bank
Current President and Vice-President are not eligible for selection
I Nominate
Reasons for Nomination
I Nominate
Reasons for Nomination
I Nominate
CLICK HERETO DOWNLOAD
wwwRochesterAreaBuilderscom18 | September 2014
construction fashion expose
c o n s t r u c t i o n f a s h i o n e x p o s e
WwwRochesterAreaBuilderscomSeptember 2014 | 19
Members2014 Commercial Builders Council116 Members as of 63014AB Systems IncAccord Electric IncAdvanced DisposalAlpha Video amp AudioAlvin E Benike IncBEVCOMMThe Blue Book
of Building amp Construction
The Boldt CompanyBraun Intertec
CorporationBriese Iron Works IncBrock White CompanyCO Brown AgencyCambriaCarpet OneCharter
CommunicationsMedia
Chosen Valley Testing Inc
Clayton Thomas Blinds of Rochester
Construction Partnership
CRW architecture + design group inc
Custom AlarmCustom Communications Inc
D2E LLCDonlar Construction
CompanyDoyle Conner CompanyDunham Associates
IncDunlap amp SeegerJE Dunn ConstructionEastwood Bankeci llcElcor Construction IncEnergy Products amp
Design IncEnventisExpert Insulation IncFat Willyrsquos Bar amp GrillFerguson EnterprisesGerhardsGoodin CompanyHaley Comfort Systems
(Authorized FireSide Dealer)
WL Hall CompanyHDR ArchitectureHeartman InsuranceHGA Architects and
EngineersHillerrsquos Flooring AmericaHiMEC at HomeHome Federal Savings
BankHome Improvement
Professionals IncHunt Electric
CorporationInstitute for
Environmental Assessment
PA Johnson Construction LLC
KampM Glass CompanyKane amp Johnson
Architects IncKey Builders IncKnutson Construction
ServicesKomitt Concrete IncKraus-Anderson
Construction CompanyKreofsky Building
SuppliesKruse LumberKuntz Electric Inc
Kwik Trip IncLeitzen Concrete
Products IncMarvin Windows amp
DoorsMavo Systems IncMcGhie amp Betts - a
Division of WSB amp Associates Inc
McGough ConstructionMEC Construction IncMEP AssociatesMerchants BankMerit Contracting IncMidwest Walls LLCMinnesota Energy
Resources CorporationMinnwest BankNickelson Painting IncNorth Star Stone amp
MasonryOlmsted National BankOn Site CompaniesPalmer Soderberg IncPella Windows amp DoorsPeoplersquos Energy
CooperativePompeii Painting IncPrehn Building Sales
IncPremier Bank RochesterProBuild Company LLCReliable Contractors
IncRochester Area
Appraisals LLCRochester Area Econ
Development IncRochester Public
UtilitiesRochester Ready Mix
Concrete CoRochester Sign Service
IncRochester Title amp
Escrow Company IncRSP ArchitectsRyan Electric IncSchoeppner IncSchwab LLCSchwickertrsquos Tecta
America LLCSEH YaggyStantecSterling State BankStructural Design
Group IncSuperior MechanicalTamarack Materials of
Rochester IncThink Mutual BankTonna Mechanical IncTSP Architects amp
EngineersUnited RentalsThe Urban Studio LLCValor Mechanical IncVeit CompaniesVertical Limit
ConstructionViking Automatic
Sprinkler CompanyViking Electric SupplyWeis Builders IncWells Fargo Bank
Minnesota NAWendland UtzWest BankWHKS amp CompanyWHV IncWidseth Smith Nolting
BUILDERS COUNCILCOMMERCIAL
a d i v i s i o n o f R o c h e s t e r A r e a B u i l d e r s I n c
EXECUTIVE COMMITTEEChairperson Chris Terry Knutson Construction ServicesVice Chairperson Nick Leimer Kraus-Anderson Construction CompanyPast Chairperson Sue Hanson Rochester Title amp Escrow Company IncMembers-at-LargeJohn Hill Schwab LLCShaun Knode AB Systems IncJohn Kuntz Kuntz Electric IncLevi Kaiser AE Benike IncMatt Mohs WHKS amp CompanyMike Nordstrom Superior Mechanical
August Meeting Photos
New Member
Clayton Thomas Blinds of RochesterDarlene Drew
2400 Country Club Rd SWRochester MN 55902
507-258-4457
August MEETINGDATE Wednesday August 6th 2014TIME Registration amp Networking at 700 AM Program at 730 AMPLACE Ramada Hotel amp Conference CenterPROGRAM World Fair 2023SPEAKERS Mark Ritchie Minnesota Secretary of State
wwwRochesterAreaBuilderscom20 | September 2014
2014 VALUATION 2013 VALUATION
New Residential Single Family Dwelling 30 7389265 39 9441463
Townhome Dwelling 8 1224172 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 45 283519 33 160271
Room Addition 3 85012 4 177306
Porch Additions 1 8000 2 39494
Other Additions 4 38500 2 23940
Basement Finish 18 240045 24 323650
Alterations 41 234327 45 281947
Multi-Family Addition 0 0 4 31620
Multi-Family Alterations 14 151160 6 4615400 New Commercial Assembly (Church) 0 0 0 0
Assembly (General) 0 0 1 2720000
Assembly (RestaurantBar) 0 0 0 0
Business 0 0 0 0
Education 0 0 0 0
FactoryIndustrial 0 0 0 0
Institution 0 0 0 0
Mercantile 0 0 1 580000
Miscelaneous 0 0 0 0
Utility (General) 0 0 1 90000
Residential (CareAssisted Living) 0 0 0 0
Storage (General) 0 0 0 0
Storage (Warehouse) 0 0 0 0 Existing CommercialAddition 3 4313000 2 1214050
Alterations 25 4451261 40 6158997
Structural Shell 0 0 0 0
ldquoWhite Boxrdquo 0 0 0 0
Interior Demolition Only 2 2017000 3 54800
Other Phased Permits 1 6700 0 0
Other ConstructionBusiness Signs 4 10630 12 87202
Advertising Sign 0 0 0 0
Footings amp Foundations 1 76000 1 1100000
Demolition 0 1
Rochester Building Permits July 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
June 81 59 43 36 36 12 26 32 33 41
July 58 36 60 23 21 23 8 39 39 38
TOTAL 397 329 275 178 139 128 102 180 201 192
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 702 506 417 302 274 200 191 299 326 192
Single Family Homes
Year To Date Statistics 2014 2013 NO VALUATION NO VALUATION
Building Permits Issued to Date 1377 199056393 1280 149430856
Single Family Dwelling 186 45041027 201 47362534
Multi-Family Buildings Total Units 39 1 3702052 0 0
Trade Permits Issued to Date 4558 46616612 4145 40187782
Electrical 1573 20801155 1355 18804490
Electrical (Temp Service) 159 46875 188 39500
Mechanical 1187 12309661 1078 10781042
Gas Piping 317 546576 286 263280
Fireplace 237 629268 215 506084
Hydronic System 94 4005425 69 3097653
Plumbing 991 8277652 954 6695793
Total Permits YTD 5935 245673005 5425 189618638
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
WwwRochesterAreaBuilderscomSeptember 2014 | 21
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
JUNE 2014
New Residential NUMBER VALUATION
Single Family 9 1991399
Commercial
Addition 1 89470
Existing Residential
Deck Addition 7 41847
Basement Finish 1 12000
Garage 1 2267
Accessory Building 2 11500
ByronBuilding Permits
JULY 2014
Existing Residential NUMBER VALUATION
Sprinkler System 1 5000
Residing 1 5000
Reroof 5 25000
Deck 2 6000
Mechanical 1 1000
Garage 1 20000
Pine IslandBuilding Permits
wwwRochesterAreaBuilderscom22 | September 2014
In early 2000 the SampP 500 hit 1553 and the tech-heavy NASDAQ surpassed 5000 Two years later the SampP was at 768 and the NASDAQ was at 800 In the process $6 trillion in household wealth was wiped out We now call that period the dot-com bubble About half a decade later we experienced the housing market bubble Interestingly the value of residential real estate destroyed during that crisis was also about $6 trillion Yet the dot-com bubble resulted in a mild recession while the housing bust lead to the Great Recession What was different It turns a major culprit was which households suffered the destruction of wealth
To set the table ponder this During the housing bust retail spending fell 8 from 2007 to 2009 one the largest drops ever By contrast retail spending increased by 5 between 2000 and 2002 Clearly the losses sustained during the dot-com bust had minimal impacts on household spending decisions and thus on the overall economy Here is why
The decline in home prices that began in 2007 was highly concentrated among households with very limited financial resources As a result these now much-poorer households dramatically pulled back on spending and in the process unwittingly helped usher in the Great Recession Remember retail spending is about a quarter of GDP so a decline of 8 over two years reduces GDP by 2 -- a huge amount It is as if these poorer households were the transmission mechanism through which the Great Recession got its energy
Exacerbating and reinforcing this downward spiral was the role of debt or leverage Remember by 2004 or 2005 a large percentage of first-time home buyers had low FICO scores sketchy employment histories
and limited assets To compensate these Alt-A and subprime buyers borrowed heavily with their now highly levered house being their major financial asset For example among the poorest quintile of the population 80 of their net worth is in their house Even among the middle quintile home equity is still 60 of their net worth By borrowing so much just a small decline in house prices could put these buyers upside down and wipe them out Which is exactly what happened and is what turned a recession into the Great Recession Between 2007 and 2010 the bottom 20 of the population saw their net worth fall from about $30000 to zero
By contrast the financial losses sustained during the dot-com bubble were essentially walled off and had relatively little effect on the overall economy This is because stock ownership is concentrated among the wealthy As the wealthy have less debt and more assets they could essentially shrug off the much larger financial losses they sustained yet not have them alter their day-to-day spending decisions Among the wealthiest 20 of the population home equity represents just 25 of their net worth Moreover depression-era federal laws make it hard to borrow more than 50 of the cost of stock purchases thereby limiting the potentially negative role of leverage
In short the home buyers who bought in 2004 and 2005 had limited wealth and had more of it at risk than earlier home buyers When the music stopped they were highly levered and wholly unable to protect themselves That quickly resulted in (among other things) reduced spending which shrank GDP and quickly cascaded into the Great Recession
+++++++++++++++++
All Bubbles Are Not ++++++++++Created Equal + + + + + + + + + + + + + + + + +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
WwwRochesterAreaBuilderscomSeptember 2014 | 23
NONE
MEMBERSHIPS PENDINGNONE
The firms listed below have applied for membership in Rochester Area Builders Inc
MEMBERSHIP TOTAL 451RETENTION RATE 929
As of 63014
WE WELCOME THE FOLLOWING NEW MEMBERS IN AUGUST
Membership InformationMembership Renewals as of 73114
Two to Four Years
Kraus-Anderson Construction Company 2012Electrical Solutions amp Service 2011Energy Panel Structures 2011Lowersquos Home Improvement 2011Minnwest Bank 2011RCTC Carpentry Program 2011Reynolds Design and Construction 2010
Five to Nine Years
Great River Overhead Door 2007Meadow Lakes Builders 2007Rochester International Event Center 2007The Urban Studio LLC 2007Hunt Electric Corporation 2006Otis Custom Homes LLC 2006Larry Newman Drywall 2005Pahl amp Kaye Inc 2005Synergy Products 2005Tradesmen International Inc 2005
Ten to 19 Years
Greg Wellik Construction 2004Morris Concrete Inc 2004AampA Electric amp Underground Inc 2003Advanced Disposal 2002Knutson Construction Services 2002Tagrsquos Drywall Inc 2001Ronningen Roofing Inc 2000Ferguson Enterprises 1998
20 to 24 Years
Bright Ideas 1993Hirshfieldrsquos Decorating Center 1993Brock White Company 1991Dan Severson Builders Inc 1991
25 Years amp More
Gerhards 1988Express Employment Professionals 1985Townsquare Media Rochester 1983Smith Schafer amp Associates Ltd 1982Hayfield Window amp Door Company 1981Quality Overhead Door Company Inc 1981Energy Products amp Design Inc 1980Tom Brogan Heating amp Air Conditioning 1980Alvin E Benike Inc 1979Pella Windows amp Doors 1978Northern Lights amp Furnishings 1976Wells Fargo Home Mortgage 1964Alexander amp Sons Builders 1962
NEW APPLICANTS
CLIFTONLARSONALLEN LLP7389 Airport View Drive SW Suite 100
Rochester MN 55902Phone 507-280-2300Contact Paul Alberts
Associate MemberAccountingConsulting
Sponsored by Joel Alberts AampA Electric amp Underground Inc
DISTINGUISHED HOMES BY MITCH HAGEN LLC3015 18th Avenue SWRochester MN 55902Phone 507- 951-1962Contact Mitch Hagen
Builder MemberResidential Builder amp Remodeler
Sponsored by Brandon Vagt XRG Concepts LLC
LOW VOLTAGE CONTRACTORS
4200 West 76th StreetMinneapolis MN 55435
Phone 952-835-4600Contact Cathy Trast
Associate MemberFire amp Life Safety Integrated Systems Service Provider
Sponsored by John Eckerman The Boldt Company
PACE INTERNATIONAL 3582 Technology Drive NW
Rochester MN 55901Phone 507-424-4900Contact Jim WestraAssociate Member
Commercial Satellite amp Cable Television ProductsSponsored by Jay Burke Heartwood Homes of Rochester Inc
wwwRochesterAreaBuilderscom24 | September 2014
Put your membershipto work nowMoney-saving discounts that benefit yourbusiness your employees and your family
wwwnahborgMA
National Association of Home Builders
R
WwwRochesterAreaBuilderscomSeptember 2014 | 3
August 12 2014 Election season is now in full swing The August primaries narrowed down the field of candidates and with the end of summer upon us more voters are now paying attention to the choices theyrsquoll be making in November RAB does not endorse candidates for any office We do however ask questions of all our elected and aspiring elected officials to ensure that we know where they stand on issues important to the building industry More importantly though wersquoll make sure that they know where we stand on the issues too Your RAB staff Board and Government Affairs Committee work constantly to
make sure that our elected officials understand the actual real-world ldquodownstreamrdquo consequences of development plans taxes fees and regulations that they may be proposing that all too often get swept under the rug We will be ever-vigilant about looking out for the interests of RAB members and hope that you will get engaged this fall to join us Someone once said that ldquothe world is run by those who show uprdquo and nowhere is that more true than in the election of public officials who will be shaping building industry policy for years to come Interesting in finding out more or in getting involved
bull Come to our September 30th Legislative Forum We will be inviting all candidates for city county and state offices to this RAB members-only event This is your chance to hear first-hand from the candidates themselves about their positions and to share your opinions with them
bull Write a letter to the editor Donrsquot be afraid to let public officials know that you helped build this cityhellipand you vote
bull Contribute financially either directly to the candidate of your choice or through the Builderrsquos Association of Minnesota Political Action Committee (BAM-PAC) It doesnrsquot matter if you donate $5 or $500 find out where a candidate stands and make a gift thatrsquos meaningful to you
bull If you are really motivated consider running for office yourself All candidates regardless of position or party affiliation deserve our respect for being willing to put themselves on the line It may be too late for 2014 but our area always needs dedicated willing public servants who understand this industry and care about our community
Historical preservationhellipmandatory fire sprinklershellipDMChellipupdated development planshellipsingle and multi-family homeshellipwith so much going on none of us can afford not to be involved Rochester Area Builders will be working campaigning and fighting every single day to make sure we have a community where you and your employees can grow thrive and succeed None of us is as strong as all of us and we hope that you will join us to make sure we have a community where everyone can enjoy the excellent standard of living job base and vibrant community that a strong local building industry can provide Election Day will be here before you know it
Have a great month
Kevin Worden2014 RAB President
Index News from the President 3Sporting Clay Shoot 4August Networking Night 5Green Building Expo 6-7Association Scrapbook 8-9Fall Showcase Entries 10-11Remodelers Tour Entries 11On The Job 12-14Hey Matt Whatrsquos up with that 15BAM Update 16Committee Updates 17Remodel It Right News 18Commercial Builders Council 19Rochester Permits 20ByronPine Island Permits 21Real Estate Data 21Elliot Eisenberg Article 22Membership Information 23NAHB Member Discounts 24
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
wwwRochesterAreaBuilderscom4 | September 2014
Join us at the RAB Sporting Clay ShootThursday September 4 2014
Calling all Hunters Shooters Outdoorsmen or anyone looking to have a fun time with LIVE AMMUNITION RAB is hosting our annual SPORTING CLAY SHOOT Wersquoll have 20 stations and each one is different Teams will rotate through the stations trying to rack up the highest score possible Donrsquot miss out sign up soon
Click Here to Register Onlineor download the registration form here
GAMEHAVEN COUNCIL SCOUT CAMP 5015 Simpson Rd SE
Hours100 PM - 130 PMRegistration and Mandatory Safety Talks200 PM Shooting Starts 500 PM BBQ Dinner amp Beer600 PM Check Presentation to Boy Scouts Prizes and Raffle Drawing
SCOUTING OF SOUTHEASTERN MINNESOTA
Presented By
WwwRochesterAreaBuilderscomSeptember 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 Jeremy Bigelow Bigelow Homes 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 Sheehan 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 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
Donrsquot forget to mark you calendar for the August Networking Night
Tuesday August 26th at Premier Bank Rochester
3145 Wellner Dr NEHours 500 pm - 700 pm
WHY PREMIER
Premier is large enough to offer state of the art financial products and services yet small enough to give clients the personal attention they deserve Premierrsquos stable lending team take the time to understand clientrsquos needs so they are better served Established and continuing as independent community-oriented banks Premier Banks continue to meet the financial need of our clients and supply the credit necessary for local businesses and industries to grow
OUR MISSION
To be the premier community bank in the region and the bank of choice in each of the communities we serve
To foster long-term commercial relationships built on trust by observing the highest standards of corporate and social
responsibility
To create value for our customers employees and shareholders through excellent performance state of the
art technology and a relentless commitment to service
PREMIER BANK IS HAPPY TO BE CELEBRATING THEIR 40TH ANNIVERSARY
Hosted By
PremierBanksMEMBER
wwwRochesterAreaBuilderscom6 | September 2014
What Green Building Expomdashan event for the
public
When Saturday Oct 25th -or- Nov 1st
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
Please reply with your registraon and payment by October 3rd
Signature Event Sponsors
NEW DATE DEADLINE EXTENDEDEXHIBITORS NEEDEDNEW DATE DEADLINE EXTENDEDEXHIBITORS NEEDED
C
M
Y
CM
MY
CY
CMY
K
RFPpdf 8212014 112647 AM
WwwRochesterAreaBuilderscomSeptember 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
Green Building Expo Registraon Form
Register by October 3rd 2014 by emailing a
scanned version of this form to
MahewLRochesterAreaBuilderscom
or by faxing it to Rochester Area Builders at
507-280-6351 If you would like to mail in the
form please mail it to
Rochester Area Builders Inc
108 Elton Hills Ln NW
Rochester MN 55901
C
M
Y
CM
MY
CY
CMY
K
RFP - Registrationpdf 8212014 114006 AM
wwwRochesterAreaBuilderscom8 | September 2014
July Networking NightAssociation Scrapbook
Thank you to all who attended Membership Appreciation Night at the Rochester Area Buildersrsquo office on July 29 Thank you Home Federal for sponsoring the
beverages and Home Improvement Professionals for the tents We would like to thank everybody for supporting BAM-PAC by participating in the wine amp beer tasting We raised over $300 for PAC If you would like to purchase a wine glass or beer flight glass (with the RAB logo) there are a few left at $5 each Sorry at this point the glasses are empty
GIVE AWAYSCharlie Brown PC Applications won a gift card to the Hubble House from RAB and the proverbial bad penny Rick Dold Godwin Law Office won ldquoDinner on Usrdquo from the Post Bulletin
Thank You
WwwRochesterAreaBuilderscomSeptember 2014 | 9
Association ScrapbookMember Appreciation Night
APPRECIATION
wwwRochesterAreaBuilderscom10 | September 2014
DATES AND TIMES FOR THE 2014 FALL SHOWCASE OF HOMESFriday Sept 12 Signs to be Picked Up 800 AM ndash 400 PMSaturday Sept 13 Entries Open to Public 1100 AM ndash 500 PMSunday Sept 14 Entries Open to Public 1100 AM ndash 500 PMSaturday Sept 20 Entries Open to Public 1100 AM ndash 500 PMSunday Sept 21 Entries Open to Public 1100 AM ndash 500 PMMonday Sept 22 Signs to be Returned 800 AM ndash 500 PM
1 Med City Builders of Rochester LLC60766 254th Avenue MantorvilleHome
2 Somerby Golf Community943 Somerby Parkway NE ByronDevelopment
3 Summit Custom Homes LLC943 Somerby Parkway NE ByronHome
4 Bigelow Homes LLC488 15th Ave NE ByronHome
5 Countryside Builders LLC1548 Wickford Place NE ByronHome
6 Derby Construction LLC6341 Oak Meadow Lane NWHome
7 Wright Homes Inc5897 Dogwood CourtTownhome
8 Thimijan Custom Homes LLC2326 Granite Circle NWHome
9 JNS Builders2583 Flagstone Lane NWHome
10 Cravath Homes LLC6878 Larkspur ParkwayHome
11 Bigelow amp Lennon Construction6320 Mallard Drive NWHome
12 Bigelow Homes LLC5542 Harvest Lake Drive NWHome
13 DeWitz Home Builders6221 51st Street NWHome
14 Majestic Homes Inc4818 Bishop Lane NWHome
15 Exclusive Home Builders amp Remodelers3609 46th Avenue NWHome
16 MDH Inc ndash Orchard Hills Builders626 Gates Lane SWHome
17 MDH Inc ndash Fox Hill Builders1031 Fox Valley Place SWHome
18 Meadow Lakes Builders3890 Berkshire Road SWHome
19 High Definition Homes LLC1291 Boulder Creek Lane SWHome
20 Craig Swanson Builders Inc2710 Headland Court SWHome
21 Distinguished Homes by Mitch Hagen 3550 Woodstone Drive SWHome
22 Penz Custom Homes Inc3622 Triton Lane SWHome
23 Chris Fritsch Custom Homes LLC3915 Creek View Lane SWHome
24 Thimijan Custom Homes LLC5380 Scenic View Drive SWHome
25 RJ Manemann Custom Homes5406 Scenic View Drive SWHome
26 R amp M Development5448 Scenic View Drive SWHome
ShowcaseofFallFall
SHOWCASE ENTRIES
Sponsored By
WwwRochesterAreaBuilderscomSeptember 2014 | 11
DATES AND TIMES FOR THE 2014 REMODELERS TOURFriday Sept 12 Signs to be Picked Up 800 AM ndash 400 PMSaturday Sept 13 Entries Open to Public 1100 AM ndash 500 PMSunday Sept 14 Entries Open to Public 1100 AM ndash 500 PMMonday Sept 15 Signs to be Returned 800 AM ndash 500 PM
27 Stonebridge Builders5393 Scenic View Drive SWHome
28 Bigelow Homes LLC5530 Leslie Lane SWHome
29 Bigelow Homes LLC2811 Talon Place SETownhome Community
30 R Fleming Construction Inc2529 Tee Time Road SEHome
31 Centurion Ridge LLCCenturion Court NETownhome Community
32 Maplewood Homes LLC1819 Shannon Oaks Blvd NEHome
33 Countryside Builders LLC2348 Coral Ridge Place NETownhome Community
34 Countryside Builders LLC3669 Cameo LaneHome
35 Countryside Builders LLC3519 Jasper Court NEHome
36 Penz Custom Homes Inc3897 Cameo Place NEHome
37 Otis Custom Homes LLC1716 Stone Crest Dr NEHome
38 Majestic Homes Inc3950 Cedarwood Road NEHome
39 Custom Homes by Bradley Inc4053 Stone Point Drive NEHome
40 Chris Fritsch Custom Homes LLC844 Zumbro Woods Lane NW OronocoHome
1 Reynolds Design amp Construction
4905 Oaklawn Lane NWKitchen
2 Master Builders Inc4242 Arboretum Drive NW
Four Season Addition
3 Elias Construction LLC913 3rd Street NW Byron
Whole House Remodel
4 Design Studio B835 Fox Pointe Lane SW
Kitchen
5 Beyond Kitchens LLC923 10th Street SW
Kitchen
6 Chladek
Construction LLC245 1st Street NW Elgin
Exterior Remodel amp Addition
SHOWCASE ENTRIES
Sponsored By
RemodelersRemodelers
TOUR ENTRIES
ADMISSION IS FREE
wwwRochesterAreaBuilderscom12 | September 2014
PROJECT KITCHEN AND BATHROOM REMODEL CONTRACTOR BEYOND KITCHENS LLCHOST KATIE DARVAL PROJECT COORDINATORDESIGNER
REMODELING A HOME IS A UNIQUE AND MULTIFACETED CHALLENGE IT TAKES A SPECIAL KIND OF VISION TO LOOK PAST WHAT A ROOM HAS BEEN AND SEE WHAT IT COULD BE IT TAKES A SPECIAL KIND OF DETERMINATION TO OVERCOME THE OBSTACLES THAT ALWAYS COME WHEN YOUrsquoRE TRYING TO FIT SOMETHING NEW INTO A SPACE THAT WAS NOT ORIGINALLY DESIGNED FOR IT AND IT TAKES A SPECIAL KIND OF PERSONALITY TO MAKE A HOMEOWNER FEEL COMFORTABLE WITH YOU ESSENTIALLY MOVING IN AND TURNING THEIR LIVING SPACE INTO YOUR WORK PLACE
Beyond Kitchens LLC has been making those challenges their business for almost 20 years This talented team of women is composed of owner Diane Quinn CKD Christina Jorgensen AKBD and Katie Darval their project coordinator who was kind enough to give me access to the project and answer my questions about it The project inside a lovely home in Southwest Rochester with a striking red door that demands attention and welcomes you inside was about more than just a new look
for the homeowners Work responsibilities for one of the couple mean clocking in from home at all hours of the night to make calls to overseas contacts making storage for a home office very important But the clients also wanted an uncluttered look and for the overall feel of refinement and elegance to remain unspoiled So these workday necessities were given space in cabinetry adjoining the dining room complete with in-drawer outlets and USB ports so that all of their phones tablets and laptops can be tucked away out of site while not in use
To further the goal of uninterrupted elegance Beyond Kitchens went the extra mile by acquiring custom outlet and switch covers made of real stone As Katie
WwwRochesterAreaBuilderscomSeptember 2014 | 13
says ldquothe backsplash and lighting are the jewelry to the roomrdquo Using these stone covers means that the outlets and switches wonrsquot be the first thing you notice when you enter the room While they are beautifully made their real purpose is not to stand out but to blend in and to let the overall beauty of the room shine without distraction Itrsquos their attention to small details like this that truly show Beyond Kitchensrsquo ability to create a room that not only wows you on first sight but also ensures the homeowners will be happy with the project years down the road
Of course working with the homeowners and what they bring to the table is crucial When you are building a new home you can design a kitchen pick the cabinets you like best and then choose the flooring and appliances that best accent it Remodeling is rarely that simple In this case the kitchen already had beautiful hardwood floors that only needed to be restored The homeowners had also recently purchased black appliances so those needed to be allowed for in the design as well Katie says they decided to use off white cabinets in most of the kitchen to create a more spacious feel while incorporating the
black appliances with a wall of dark wood cabinetry They also enhanced the feeling of spaciousness by extending the tile backsplash all the way up to the ceiling above the range Creating space whether through i l lus ion or through creative hidden storage is often a necessity in older homes
Another necessity in older homes is dealing with those unpredictable obstacles you encounter I say unpredictable because you never know what theyrsquore going to be but you can always predict that yoursquoll run into some And the most common time for obstacles to show up is during demolition Exhibit A the Soffits As Katie notes sometimes soffits are included purely as a cosmetic feature Other times they are utilized to as a space for plumbing or electrical runs The vision for this project included removing the soffits and having the upper cabinets extend all the way to the ceiling (yet another trick to add a feeling of spacious grandeur
to the room) So of course f o l l o w i n g Murphyrsquos law these soffits c o n t a i n e d p i p i n g a n d drains from
an upstairs bathroom meaning some significant reworking of those pipes and drains had to be done to achieve their goal In the end though it was wort the trouble Oh the joys of remodeling
wwwRochesterAreaBuilderscom14 | September 2014
With all of the difficulty inherent in a remodeling project it might seem like a miracle that the contractor and the homeowner are still on speaking terms by the end of it Even if everything goes smoothly you are still interrupting the daily routine of someone for weeks or months on end But having had a chance to chat with the homeowner on my last visit after the project was complete I can report that miracles can indeed happen She had nothing but praise for Katie the team at Beyond Kitchens and all their subcontractors I too think the project was beautifully done and Irsquom happy to have been invited into their home
If yoursquod like to see more of Beyond Kitchens LLCrsquos work you can check out their website at wwwbeyondkitchenscom and make plans to visit their Remodelers Tour project located at 923 10th St SW on September 13th and 14th
Other RAB members who worked on this project include
bull Brandrup Builders
bull Bright Ideas
bull Creative Hardwood Floors
bull DeGeus Tile amp Granite
bull Ferguson Enterprises
bull Innovative Surfaces
bull Larry Newman Drywall
bull Kuntz Electric Inc
bull Top Shop of Rochester Inc
WwwRochesterAreaBuilderscomSeptember 2014 | 15
ldquoHey Matt what can you tell me about the current crop of local candidatesrdquo
Itrsquos August That means that summer is coming to a close department stores have had their ldquoback-to-schoolrdquo sections of their stores open for 6 weeks and election season is just ramping up This year we have a variety of elections taking place in Rochester Mayor City Council School Board Senator Governor US House of Representatives and State Auditor just to name a few In this monthrsquos edition of HMWUWT I will attempt to give you a little background on each of these races
MAYOR
This race was a little more crowded just a couple days ago There were three candidates Mayor Brede Cindy Maves and Stephanie Kilen On August 12 during the primary election Mayor Brede and Cindy Maves were the top two vote getters and will proceed to the General Election in November Brede received 4757 votes Maves 2473 and Kilen 1926 Look for the big issue in this election to be governmental spending since Maves used to head the Tea Party Patriots in Rochester
CITY COUNCIL WARD 3
This was another race that whittled down to two candidates during the primary Incumbent Bruce Snyder received 375 votes Vickie Anderson 188 and Nick Campion 564 Campion and Snyder both advance to the general election Ward 3 is generally considered to be NW Rochester so make sure to check which ward you live in
SCHOOL BOARD SEAT 5
Jean Marvin advanced out of the primary with 40 of the vote Terry Throndson received 33 of the vote to also advance Nora Dooley with 20 and Matthew Halleck with 7 both failed to advance to the general election
SENATOR
Senator Al Franken won his primary not surprisingly to advance as the Democratic candidate in the general election Also not surprisingly Mike McFadden won the Republican ticket and will challenge Franken in November
GOVERNOR
Jeff Johnson won the Republican primary to challenge Governor Mark Dayton in November Both candidates have ties to Rochester Jeff Johnsonrsquos running mate is former Rochester law-maker Bill Kuisle Mark Daytonrsquos running mate Tina Flint Smith is currently the chair of the Destination Medical Center Corporation
US House of Representatives District 1
Blue Earth businessman Jim Hagedorn pulled off the upset of the primary when he defeated the Republican party-endorsed candidate Aaron Miller Hagedorn will challenge the incumbent Democrat Tim Walz in November
STATE AUDITOR
I know what you are thinking why do we care about the State Auditor race and what does the State Auditor do Well the State Auditor is charged with overseeing more than $20 billion spent annually by local governments in Minnesota The State Auditor does this by performing audits of local government financial statements and by reviewing documents data reports and complaints reported to the Office The reason this race is interesting to me is because of the politicking that took place before the primary Democrat Matt Entenza bypassed the DFL convention and filed to run after the incumbent Rebecca Otto received support from the DFL party Otto defeated Entenza by a 80-20 margin Otto will face Republican Randy Gilbert in November amongst a slate of other candidates
LEARN MORE
As always Rochester Area Builders will be holding our candidate social on September 30 Make sure to come on down to mingle with the candidates and pick their brains about issues that important to you If you have any questions about the upcoming elections or anything at all feel free to email me or give me a call at the office Thanks
Matt
wwwRochesterAreaBuilderscom16 | September 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 August 2014
President Chad Kompelein
Builder VPKC Chermak
Associate VPGeorge Cundy
President ElectMike Paradise
TreasurerGerry Traut
SecretaryKurt Welker
Past PresidentKeith Kylmala
NAHB RepresentativeKathe Ostrom
Theyrsquore HereThe new codes are (finally) out Following a mutli-year process to promulgate the 2012 International Building Code the Minnesota Department of Labor and Industry (DLI) has officially published the final language for the Minnesota Building Code With the final language in hand the Builders Association of Minnesota (BAM) is adjusting and completing seven code guide documents that will be provided to members-only in September The code is slated to be enforced starting January 24 2015
Membership with the builders association is the only way to obtain a copy of these documents and as such BAM will be promoting the code guides ndash and membership ndash to all 13000 licensed contractors If interested in promoting your company statewide these code guides still have sponsorships available More at wwwbamnorgsponsorship-opps Contact Remi Stone at remibamnorg or Katherine Nielsen at katherinenbamnorg with any questions
Creating the code documents is codes expert Ed VonThoma his company Building Knowledge Inc (BKI) and a committee including 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 Thank you to these members for generously donating their time to help perfect the members-only guides
The seven code guide documents are
bull Top 20 Code Changes in the Residential Building Code
bull Top 20 Code Changes in the Energy Code
bull 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
A major benefit of membership these guides are available ONLY to members DLI issues the codes but BAM develops guides on how to implement the new codes The documents will be sent to members and made available on the BAM website optimized for both printing and easy viewing on your mobile devices out in the field
Continuing education courses based on these code guides have been assembled by BKI who is available to teach classes around the state to help members prepare to build to the new code Let your local association know if yoursquod like BKI to teach in your community
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 building industry specific construction contracts More benefits of BAM membership can be found online at wwwbamnorgmembership
WwwRochesterAreaBuilderscomSeptember 2014 | 17
Committee UpdatesAWARDS COMMITTEECHAIRPERSON Les Radcliffe Radcliffe Homes amp Remodeling
This committee is currently meeting to look for ldquospecialrdquo members to recognize for their achievements to the Association in 2014 They will choose a Rising Star - a member who has been very active in their first three years of membership as well as nominating builders and associates to receive the Builder amp Associate of the Year Award and for the company who has supported the association The Cornerstone Award In this monthrsquos newsletter you have the opportunity to nominate someone whom you have noticed working extra hard for RAB Please download the Form fill it out and return it to the RAB office
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 2014Jennifer Maass GerhardsMARKETINGRob 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
ROCHESTER AREA BUILDERS INCASKS YOU TO MAKE NOMINATIONS FOR THE
THESE MEMBERS MUST BE DEDICATED TO THE BUILDING INDUSTRY ACTIVE PARTICIPANTS OF THE ASSOCIATION
ENTHUSIASTIC
The recipients of these three awards will be chosen by the Board of Directors at their December meeting and will be awarded at the January General Membership Meeting
Previous Winners - Builders1992 Robert Gill and Richard Hanson and Joe Weis 1993 Frank Kottschade 1994 Roger Lubahn 1995 Jay Burke 1996 Dan Severson 1997 Les Radcliffe 1998 Bob DeWitz and Mark Stinson 1999 David Higgins 2000 Jackie Hanson 2001 Aaron Benike 2002 Gary Zander 2003 John McGuine 2004 Mike Coats 2005 Steve Buss 2006 Mike Hortop 2007 Jodi Hruska 2008 Jay Burke 2009 Kevin Reckinger 2010 Paul Gregor 2011 Mike Larson 2012 Kathy Einck 2013 Les Radcliffe
Previous Winners - Associates1985 Don Soderberg 1987 Robert Suk 1988 Jim Buchan 1989 Mary Moylan 1990 Craig Wendland 1991 Ron Bailey 1992 Bill Tointon 1993 Wayne Lewis 1994 Donna Scott Herriot 1995 Julie Timmerman 1996 John Arnold 1997 Steve Christopherson 1998 Brent Buchan 1999 Kim Zimmer 2000 Julie Praus 2001 Karin Buechler 2002 Dennis Hanson 2003 Carla Kilpatrick 2004 Brent Buchan 2005 Jim Gander 2006 Brian Carlson 2007 John Eischen 2008 Wayne Eisen 2009 Jennifer Maass 2010 Tony Joseph 2011 Patty Hanson 2012 David Kane 2013 Jennifer Maass
Previous Winners - Company 2009 Energy Products amp Design 2010 Knutson Construction 2011 Minnesota Energy Resources 2012 Wendland Utz 2013 Home Federal Savings Bank
Current President and Vice-President are not eligible for selection
I Nominate
Reasons for Nomination
I Nominate
Reasons for Nomination
I Nominate
CLICK HERETO DOWNLOAD
wwwRochesterAreaBuilderscom18 | September 2014
construction fashion expose
c o n s t r u c t i o n f a s h i o n e x p o s e
WwwRochesterAreaBuilderscomSeptember 2014 | 19
Members2014 Commercial Builders Council116 Members as of 63014AB Systems IncAccord Electric IncAdvanced DisposalAlpha Video amp AudioAlvin E Benike IncBEVCOMMThe Blue Book
of Building amp Construction
The Boldt CompanyBraun Intertec
CorporationBriese Iron Works IncBrock White CompanyCO Brown AgencyCambriaCarpet OneCharter
CommunicationsMedia
Chosen Valley Testing Inc
Clayton Thomas Blinds of Rochester
Construction Partnership
CRW architecture + design group inc
Custom AlarmCustom Communications Inc
D2E LLCDonlar Construction
CompanyDoyle Conner CompanyDunham Associates
IncDunlap amp SeegerJE Dunn ConstructionEastwood Bankeci llcElcor Construction IncEnergy Products amp
Design IncEnventisExpert Insulation IncFat Willyrsquos Bar amp GrillFerguson EnterprisesGerhardsGoodin CompanyHaley Comfort Systems
(Authorized FireSide Dealer)
WL Hall CompanyHDR ArchitectureHeartman InsuranceHGA Architects and
EngineersHillerrsquos Flooring AmericaHiMEC at HomeHome Federal Savings
BankHome Improvement
Professionals IncHunt Electric
CorporationInstitute for
Environmental Assessment
PA Johnson Construction LLC
KampM Glass CompanyKane amp Johnson
Architects IncKey Builders IncKnutson Construction
ServicesKomitt Concrete IncKraus-Anderson
Construction CompanyKreofsky Building
SuppliesKruse LumberKuntz Electric Inc
Kwik Trip IncLeitzen Concrete
Products IncMarvin Windows amp
DoorsMavo Systems IncMcGhie amp Betts - a
Division of WSB amp Associates Inc
McGough ConstructionMEC Construction IncMEP AssociatesMerchants BankMerit Contracting IncMidwest Walls LLCMinnesota Energy
Resources CorporationMinnwest BankNickelson Painting IncNorth Star Stone amp
MasonryOlmsted National BankOn Site CompaniesPalmer Soderberg IncPella Windows amp DoorsPeoplersquos Energy
CooperativePompeii Painting IncPrehn Building Sales
IncPremier Bank RochesterProBuild Company LLCReliable Contractors
IncRochester Area
Appraisals LLCRochester Area Econ
Development IncRochester Public
UtilitiesRochester Ready Mix
Concrete CoRochester Sign Service
IncRochester Title amp
Escrow Company IncRSP ArchitectsRyan Electric IncSchoeppner IncSchwab LLCSchwickertrsquos Tecta
America LLCSEH YaggyStantecSterling State BankStructural Design
Group IncSuperior MechanicalTamarack Materials of
Rochester IncThink Mutual BankTonna Mechanical IncTSP Architects amp
EngineersUnited RentalsThe Urban Studio LLCValor Mechanical IncVeit CompaniesVertical Limit
ConstructionViking Automatic
Sprinkler CompanyViking Electric SupplyWeis Builders IncWells Fargo Bank
Minnesota NAWendland UtzWest BankWHKS amp CompanyWHV IncWidseth Smith Nolting
BUILDERS COUNCILCOMMERCIAL
a d i v i s i o n o f R o c h e s t e r A r e a B u i l d e r s I n c
EXECUTIVE COMMITTEEChairperson Chris Terry Knutson Construction ServicesVice Chairperson Nick Leimer Kraus-Anderson Construction CompanyPast Chairperson Sue Hanson Rochester Title amp Escrow Company IncMembers-at-LargeJohn Hill Schwab LLCShaun Knode AB Systems IncJohn Kuntz Kuntz Electric IncLevi Kaiser AE Benike IncMatt Mohs WHKS amp CompanyMike Nordstrom Superior Mechanical
August Meeting Photos
New Member
Clayton Thomas Blinds of RochesterDarlene Drew
2400 Country Club Rd SWRochester MN 55902
507-258-4457
August MEETINGDATE Wednesday August 6th 2014TIME Registration amp Networking at 700 AM Program at 730 AMPLACE Ramada Hotel amp Conference CenterPROGRAM World Fair 2023SPEAKERS Mark Ritchie Minnesota Secretary of State
wwwRochesterAreaBuilderscom20 | September 2014
2014 VALUATION 2013 VALUATION
New Residential Single Family Dwelling 30 7389265 39 9441463
Townhome Dwelling 8 1224172 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 45 283519 33 160271
Room Addition 3 85012 4 177306
Porch Additions 1 8000 2 39494
Other Additions 4 38500 2 23940
Basement Finish 18 240045 24 323650
Alterations 41 234327 45 281947
Multi-Family Addition 0 0 4 31620
Multi-Family Alterations 14 151160 6 4615400 New Commercial Assembly (Church) 0 0 0 0
Assembly (General) 0 0 1 2720000
Assembly (RestaurantBar) 0 0 0 0
Business 0 0 0 0
Education 0 0 0 0
FactoryIndustrial 0 0 0 0
Institution 0 0 0 0
Mercantile 0 0 1 580000
Miscelaneous 0 0 0 0
Utility (General) 0 0 1 90000
Residential (CareAssisted Living) 0 0 0 0
Storage (General) 0 0 0 0
Storage (Warehouse) 0 0 0 0 Existing CommercialAddition 3 4313000 2 1214050
Alterations 25 4451261 40 6158997
Structural Shell 0 0 0 0
ldquoWhite Boxrdquo 0 0 0 0
Interior Demolition Only 2 2017000 3 54800
Other Phased Permits 1 6700 0 0
Other ConstructionBusiness Signs 4 10630 12 87202
Advertising Sign 0 0 0 0
Footings amp Foundations 1 76000 1 1100000
Demolition 0 1
Rochester Building Permits July 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
June 81 59 43 36 36 12 26 32 33 41
July 58 36 60 23 21 23 8 39 39 38
TOTAL 397 329 275 178 139 128 102 180 201 192
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 702 506 417 302 274 200 191 299 326 192
Single Family Homes
Year To Date Statistics 2014 2013 NO VALUATION NO VALUATION
Building Permits Issued to Date 1377 199056393 1280 149430856
Single Family Dwelling 186 45041027 201 47362534
Multi-Family Buildings Total Units 39 1 3702052 0 0
Trade Permits Issued to Date 4558 46616612 4145 40187782
Electrical 1573 20801155 1355 18804490
Electrical (Temp Service) 159 46875 188 39500
Mechanical 1187 12309661 1078 10781042
Gas Piping 317 546576 286 263280
Fireplace 237 629268 215 506084
Hydronic System 94 4005425 69 3097653
Plumbing 991 8277652 954 6695793
Total Permits YTD 5935 245673005 5425 189618638
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
WwwRochesterAreaBuilderscomSeptember 2014 | 21
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
JUNE 2014
New Residential NUMBER VALUATION
Single Family 9 1991399
Commercial
Addition 1 89470
Existing Residential
Deck Addition 7 41847
Basement Finish 1 12000
Garage 1 2267
Accessory Building 2 11500
ByronBuilding Permits
JULY 2014
Existing Residential NUMBER VALUATION
Sprinkler System 1 5000
Residing 1 5000
Reroof 5 25000
Deck 2 6000
Mechanical 1 1000
Garage 1 20000
Pine IslandBuilding Permits
wwwRochesterAreaBuilderscom22 | September 2014
In early 2000 the SampP 500 hit 1553 and the tech-heavy NASDAQ surpassed 5000 Two years later the SampP was at 768 and the NASDAQ was at 800 In the process $6 trillion in household wealth was wiped out We now call that period the dot-com bubble About half a decade later we experienced the housing market bubble Interestingly the value of residential real estate destroyed during that crisis was also about $6 trillion Yet the dot-com bubble resulted in a mild recession while the housing bust lead to the Great Recession What was different It turns a major culprit was which households suffered the destruction of wealth
To set the table ponder this During the housing bust retail spending fell 8 from 2007 to 2009 one the largest drops ever By contrast retail spending increased by 5 between 2000 and 2002 Clearly the losses sustained during the dot-com bust had minimal impacts on household spending decisions and thus on the overall economy Here is why
The decline in home prices that began in 2007 was highly concentrated among households with very limited financial resources As a result these now much-poorer households dramatically pulled back on spending and in the process unwittingly helped usher in the Great Recession Remember retail spending is about a quarter of GDP so a decline of 8 over two years reduces GDP by 2 -- a huge amount It is as if these poorer households were the transmission mechanism through which the Great Recession got its energy
Exacerbating and reinforcing this downward spiral was the role of debt or leverage Remember by 2004 or 2005 a large percentage of first-time home buyers had low FICO scores sketchy employment histories
and limited assets To compensate these Alt-A and subprime buyers borrowed heavily with their now highly levered house being their major financial asset For example among the poorest quintile of the population 80 of their net worth is in their house Even among the middle quintile home equity is still 60 of their net worth By borrowing so much just a small decline in house prices could put these buyers upside down and wipe them out Which is exactly what happened and is what turned a recession into the Great Recession Between 2007 and 2010 the bottom 20 of the population saw their net worth fall from about $30000 to zero
By contrast the financial losses sustained during the dot-com bubble were essentially walled off and had relatively little effect on the overall economy This is because stock ownership is concentrated among the wealthy As the wealthy have less debt and more assets they could essentially shrug off the much larger financial losses they sustained yet not have them alter their day-to-day spending decisions Among the wealthiest 20 of the population home equity represents just 25 of their net worth Moreover depression-era federal laws make it hard to borrow more than 50 of the cost of stock purchases thereby limiting the potentially negative role of leverage
In short the home buyers who bought in 2004 and 2005 had limited wealth and had more of it at risk than earlier home buyers When the music stopped they were highly levered and wholly unable to protect themselves That quickly resulted in (among other things) reduced spending which shrank GDP and quickly cascaded into the Great Recession
+++++++++++++++++
All Bubbles Are Not ++++++++++Created Equal + + + + + + + + + + + + + + + + +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
WwwRochesterAreaBuilderscomSeptember 2014 | 23
NONE
MEMBERSHIPS PENDINGNONE
The firms listed below have applied for membership in Rochester Area Builders Inc
MEMBERSHIP TOTAL 451RETENTION RATE 929
As of 63014
WE WELCOME THE FOLLOWING NEW MEMBERS IN AUGUST
Membership InformationMembership Renewals as of 73114
Two to Four Years
Kraus-Anderson Construction Company 2012Electrical Solutions amp Service 2011Energy Panel Structures 2011Lowersquos Home Improvement 2011Minnwest Bank 2011RCTC Carpentry Program 2011Reynolds Design and Construction 2010
Five to Nine Years
Great River Overhead Door 2007Meadow Lakes Builders 2007Rochester International Event Center 2007The Urban Studio LLC 2007Hunt Electric Corporation 2006Otis Custom Homes LLC 2006Larry Newman Drywall 2005Pahl amp Kaye Inc 2005Synergy Products 2005Tradesmen International Inc 2005
Ten to 19 Years
Greg Wellik Construction 2004Morris Concrete Inc 2004AampA Electric amp Underground Inc 2003Advanced Disposal 2002Knutson Construction Services 2002Tagrsquos Drywall Inc 2001Ronningen Roofing Inc 2000Ferguson Enterprises 1998
20 to 24 Years
Bright Ideas 1993Hirshfieldrsquos Decorating Center 1993Brock White Company 1991Dan Severson Builders Inc 1991
25 Years amp More
Gerhards 1988Express Employment Professionals 1985Townsquare Media Rochester 1983Smith Schafer amp Associates Ltd 1982Hayfield Window amp Door Company 1981Quality Overhead Door Company Inc 1981Energy Products amp Design Inc 1980Tom Brogan Heating amp Air Conditioning 1980Alvin E Benike Inc 1979Pella Windows amp Doors 1978Northern Lights amp Furnishings 1976Wells Fargo Home Mortgage 1964Alexander amp Sons Builders 1962
NEW APPLICANTS
CLIFTONLARSONALLEN LLP7389 Airport View Drive SW Suite 100
Rochester MN 55902Phone 507-280-2300Contact Paul Alberts
Associate MemberAccountingConsulting
Sponsored by Joel Alberts AampA Electric amp Underground Inc
DISTINGUISHED HOMES BY MITCH HAGEN LLC3015 18th Avenue SWRochester MN 55902Phone 507- 951-1962Contact Mitch Hagen
Builder MemberResidential Builder amp Remodeler
Sponsored by Brandon Vagt XRG Concepts LLC
LOW VOLTAGE CONTRACTORS
4200 West 76th StreetMinneapolis MN 55435
Phone 952-835-4600Contact Cathy Trast
Associate MemberFire amp Life Safety Integrated Systems Service Provider
Sponsored by John Eckerman The Boldt Company
PACE INTERNATIONAL 3582 Technology Drive NW
Rochester MN 55901Phone 507-424-4900Contact Jim WestraAssociate Member
Commercial Satellite amp Cable Television ProductsSponsored by Jay Burke Heartwood Homes of Rochester Inc
wwwRochesterAreaBuilderscom24 | September 2014
Put your membershipto work nowMoney-saving discounts that benefit yourbusiness your employees and your family
wwwnahborgMA
National Association of Home Builders
R
wwwRochesterAreaBuilderscom4 | September 2014
Join us at the RAB Sporting Clay ShootThursday September 4 2014
Calling all Hunters Shooters Outdoorsmen or anyone looking to have a fun time with LIVE AMMUNITION RAB is hosting our annual SPORTING CLAY SHOOT Wersquoll have 20 stations and each one is different Teams will rotate through the stations trying to rack up the highest score possible Donrsquot miss out sign up soon
Click Here to Register Onlineor download the registration form here
GAMEHAVEN COUNCIL SCOUT CAMP 5015 Simpson Rd SE
Hours100 PM - 130 PMRegistration and Mandatory Safety Talks200 PM Shooting Starts 500 PM BBQ Dinner amp Beer600 PM Check Presentation to Boy Scouts Prizes and Raffle Drawing
SCOUTING OF SOUTHEASTERN MINNESOTA
Presented By
WwwRochesterAreaBuilderscomSeptember 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 Jeremy Bigelow Bigelow Homes 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 Sheehan 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 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
Donrsquot forget to mark you calendar for the August Networking Night
Tuesday August 26th at Premier Bank Rochester
3145 Wellner Dr NEHours 500 pm - 700 pm
WHY PREMIER
Premier is large enough to offer state of the art financial products and services yet small enough to give clients the personal attention they deserve Premierrsquos stable lending team take the time to understand clientrsquos needs so they are better served Established and continuing as independent community-oriented banks Premier Banks continue to meet the financial need of our clients and supply the credit necessary for local businesses and industries to grow
OUR MISSION
To be the premier community bank in the region and the bank of choice in each of the communities we serve
To foster long-term commercial relationships built on trust by observing the highest standards of corporate and social
responsibility
To create value for our customers employees and shareholders through excellent performance state of the
art technology and a relentless commitment to service
PREMIER BANK IS HAPPY TO BE CELEBRATING THEIR 40TH ANNIVERSARY
Hosted By
PremierBanksMEMBER
wwwRochesterAreaBuilderscom6 | September 2014
What Green Building Expomdashan event for the
public
When Saturday Oct 25th -or- Nov 1st
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
Please reply with your registraon and payment by October 3rd
Signature Event Sponsors
NEW DATE DEADLINE EXTENDEDEXHIBITORS NEEDEDNEW DATE DEADLINE EXTENDEDEXHIBITORS NEEDED
C
M
Y
CM
MY
CY
CMY
K
RFPpdf 8212014 112647 AM
WwwRochesterAreaBuilderscomSeptember 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
Green Building Expo Registraon Form
Register by October 3rd 2014 by emailing a
scanned version of this form to
MahewLRochesterAreaBuilderscom
or by faxing it to Rochester Area Builders at
507-280-6351 If you would like to mail in the
form please mail it to
Rochester Area Builders Inc
108 Elton Hills Ln NW
Rochester MN 55901
C
M
Y
CM
MY
CY
CMY
K
RFP - Registrationpdf 8212014 114006 AM
wwwRochesterAreaBuilderscom8 | September 2014
July Networking NightAssociation Scrapbook
Thank you to all who attended Membership Appreciation Night at the Rochester Area Buildersrsquo office on July 29 Thank you Home Federal for sponsoring the
beverages and Home Improvement Professionals for the tents We would like to thank everybody for supporting BAM-PAC by participating in the wine amp beer tasting We raised over $300 for PAC If you would like to purchase a wine glass or beer flight glass (with the RAB logo) there are a few left at $5 each Sorry at this point the glasses are empty
GIVE AWAYSCharlie Brown PC Applications won a gift card to the Hubble House from RAB and the proverbial bad penny Rick Dold Godwin Law Office won ldquoDinner on Usrdquo from the Post Bulletin
Thank You
WwwRochesterAreaBuilderscomSeptember 2014 | 9
Association ScrapbookMember Appreciation Night
APPRECIATION
wwwRochesterAreaBuilderscom10 | September 2014
DATES AND TIMES FOR THE 2014 FALL SHOWCASE OF HOMESFriday Sept 12 Signs to be Picked Up 800 AM ndash 400 PMSaturday Sept 13 Entries Open to Public 1100 AM ndash 500 PMSunday Sept 14 Entries Open to Public 1100 AM ndash 500 PMSaturday Sept 20 Entries Open to Public 1100 AM ndash 500 PMSunday Sept 21 Entries Open to Public 1100 AM ndash 500 PMMonday Sept 22 Signs to be Returned 800 AM ndash 500 PM
1 Med City Builders of Rochester LLC60766 254th Avenue MantorvilleHome
2 Somerby Golf Community943 Somerby Parkway NE ByronDevelopment
3 Summit Custom Homes LLC943 Somerby Parkway NE ByronHome
4 Bigelow Homes LLC488 15th Ave NE ByronHome
5 Countryside Builders LLC1548 Wickford Place NE ByronHome
6 Derby Construction LLC6341 Oak Meadow Lane NWHome
7 Wright Homes Inc5897 Dogwood CourtTownhome
8 Thimijan Custom Homes LLC2326 Granite Circle NWHome
9 JNS Builders2583 Flagstone Lane NWHome
10 Cravath Homes LLC6878 Larkspur ParkwayHome
11 Bigelow amp Lennon Construction6320 Mallard Drive NWHome
12 Bigelow Homes LLC5542 Harvest Lake Drive NWHome
13 DeWitz Home Builders6221 51st Street NWHome
14 Majestic Homes Inc4818 Bishop Lane NWHome
15 Exclusive Home Builders amp Remodelers3609 46th Avenue NWHome
16 MDH Inc ndash Orchard Hills Builders626 Gates Lane SWHome
17 MDH Inc ndash Fox Hill Builders1031 Fox Valley Place SWHome
18 Meadow Lakes Builders3890 Berkshire Road SWHome
19 High Definition Homes LLC1291 Boulder Creek Lane SWHome
20 Craig Swanson Builders Inc2710 Headland Court SWHome
21 Distinguished Homes by Mitch Hagen 3550 Woodstone Drive SWHome
22 Penz Custom Homes Inc3622 Triton Lane SWHome
23 Chris Fritsch Custom Homes LLC3915 Creek View Lane SWHome
24 Thimijan Custom Homes LLC5380 Scenic View Drive SWHome
25 RJ Manemann Custom Homes5406 Scenic View Drive SWHome
26 R amp M Development5448 Scenic View Drive SWHome
ShowcaseofFallFall
SHOWCASE ENTRIES
Sponsored By
WwwRochesterAreaBuilderscomSeptember 2014 | 11
DATES AND TIMES FOR THE 2014 REMODELERS TOURFriday Sept 12 Signs to be Picked Up 800 AM ndash 400 PMSaturday Sept 13 Entries Open to Public 1100 AM ndash 500 PMSunday Sept 14 Entries Open to Public 1100 AM ndash 500 PMMonday Sept 15 Signs to be Returned 800 AM ndash 500 PM
27 Stonebridge Builders5393 Scenic View Drive SWHome
28 Bigelow Homes LLC5530 Leslie Lane SWHome
29 Bigelow Homes LLC2811 Talon Place SETownhome Community
30 R Fleming Construction Inc2529 Tee Time Road SEHome
31 Centurion Ridge LLCCenturion Court NETownhome Community
32 Maplewood Homes LLC1819 Shannon Oaks Blvd NEHome
33 Countryside Builders LLC2348 Coral Ridge Place NETownhome Community
34 Countryside Builders LLC3669 Cameo LaneHome
35 Countryside Builders LLC3519 Jasper Court NEHome
36 Penz Custom Homes Inc3897 Cameo Place NEHome
37 Otis Custom Homes LLC1716 Stone Crest Dr NEHome
38 Majestic Homes Inc3950 Cedarwood Road NEHome
39 Custom Homes by Bradley Inc4053 Stone Point Drive NEHome
40 Chris Fritsch Custom Homes LLC844 Zumbro Woods Lane NW OronocoHome
1 Reynolds Design amp Construction
4905 Oaklawn Lane NWKitchen
2 Master Builders Inc4242 Arboretum Drive NW
Four Season Addition
3 Elias Construction LLC913 3rd Street NW Byron
Whole House Remodel
4 Design Studio B835 Fox Pointe Lane SW
Kitchen
5 Beyond Kitchens LLC923 10th Street SW
Kitchen
6 Chladek
Construction LLC245 1st Street NW Elgin
Exterior Remodel amp Addition
SHOWCASE ENTRIES
Sponsored By
RemodelersRemodelers
TOUR ENTRIES
ADMISSION IS FREE
wwwRochesterAreaBuilderscom12 | September 2014
PROJECT KITCHEN AND BATHROOM REMODEL CONTRACTOR BEYOND KITCHENS LLCHOST KATIE DARVAL PROJECT COORDINATORDESIGNER
REMODELING A HOME IS A UNIQUE AND MULTIFACETED CHALLENGE IT TAKES A SPECIAL KIND OF VISION TO LOOK PAST WHAT A ROOM HAS BEEN AND SEE WHAT IT COULD BE IT TAKES A SPECIAL KIND OF DETERMINATION TO OVERCOME THE OBSTACLES THAT ALWAYS COME WHEN YOUrsquoRE TRYING TO FIT SOMETHING NEW INTO A SPACE THAT WAS NOT ORIGINALLY DESIGNED FOR IT AND IT TAKES A SPECIAL KIND OF PERSONALITY TO MAKE A HOMEOWNER FEEL COMFORTABLE WITH YOU ESSENTIALLY MOVING IN AND TURNING THEIR LIVING SPACE INTO YOUR WORK PLACE
Beyond Kitchens LLC has been making those challenges their business for almost 20 years This talented team of women is composed of owner Diane Quinn CKD Christina Jorgensen AKBD and Katie Darval their project coordinator who was kind enough to give me access to the project and answer my questions about it The project inside a lovely home in Southwest Rochester with a striking red door that demands attention and welcomes you inside was about more than just a new look
for the homeowners Work responsibilities for one of the couple mean clocking in from home at all hours of the night to make calls to overseas contacts making storage for a home office very important But the clients also wanted an uncluttered look and for the overall feel of refinement and elegance to remain unspoiled So these workday necessities were given space in cabinetry adjoining the dining room complete with in-drawer outlets and USB ports so that all of their phones tablets and laptops can be tucked away out of site while not in use
To further the goal of uninterrupted elegance Beyond Kitchens went the extra mile by acquiring custom outlet and switch covers made of real stone As Katie
WwwRochesterAreaBuilderscomSeptember 2014 | 13
says ldquothe backsplash and lighting are the jewelry to the roomrdquo Using these stone covers means that the outlets and switches wonrsquot be the first thing you notice when you enter the room While they are beautifully made their real purpose is not to stand out but to blend in and to let the overall beauty of the room shine without distraction Itrsquos their attention to small details like this that truly show Beyond Kitchensrsquo ability to create a room that not only wows you on first sight but also ensures the homeowners will be happy with the project years down the road
Of course working with the homeowners and what they bring to the table is crucial When you are building a new home you can design a kitchen pick the cabinets you like best and then choose the flooring and appliances that best accent it Remodeling is rarely that simple In this case the kitchen already had beautiful hardwood floors that only needed to be restored The homeowners had also recently purchased black appliances so those needed to be allowed for in the design as well Katie says they decided to use off white cabinets in most of the kitchen to create a more spacious feel while incorporating the
black appliances with a wall of dark wood cabinetry They also enhanced the feeling of spaciousness by extending the tile backsplash all the way up to the ceiling above the range Creating space whether through i l lus ion or through creative hidden storage is often a necessity in older homes
Another necessity in older homes is dealing with those unpredictable obstacles you encounter I say unpredictable because you never know what theyrsquore going to be but you can always predict that yoursquoll run into some And the most common time for obstacles to show up is during demolition Exhibit A the Soffits As Katie notes sometimes soffits are included purely as a cosmetic feature Other times they are utilized to as a space for plumbing or electrical runs The vision for this project included removing the soffits and having the upper cabinets extend all the way to the ceiling (yet another trick to add a feeling of spacious grandeur
to the room) So of course f o l l o w i n g Murphyrsquos law these soffits c o n t a i n e d p i p i n g a n d drains from
an upstairs bathroom meaning some significant reworking of those pipes and drains had to be done to achieve their goal In the end though it was wort the trouble Oh the joys of remodeling
wwwRochesterAreaBuilderscom14 | September 2014
With all of the difficulty inherent in a remodeling project it might seem like a miracle that the contractor and the homeowner are still on speaking terms by the end of it Even if everything goes smoothly you are still interrupting the daily routine of someone for weeks or months on end But having had a chance to chat with the homeowner on my last visit after the project was complete I can report that miracles can indeed happen She had nothing but praise for Katie the team at Beyond Kitchens and all their subcontractors I too think the project was beautifully done and Irsquom happy to have been invited into their home
If yoursquod like to see more of Beyond Kitchens LLCrsquos work you can check out their website at wwwbeyondkitchenscom and make plans to visit their Remodelers Tour project located at 923 10th St SW on September 13th and 14th
Other RAB members who worked on this project include
bull Brandrup Builders
bull Bright Ideas
bull Creative Hardwood Floors
bull DeGeus Tile amp Granite
bull Ferguson Enterprises
bull Innovative Surfaces
bull Larry Newman Drywall
bull Kuntz Electric Inc
bull Top Shop of Rochester Inc
WwwRochesterAreaBuilderscomSeptember 2014 | 15
ldquoHey Matt what can you tell me about the current crop of local candidatesrdquo
Itrsquos August That means that summer is coming to a close department stores have had their ldquoback-to-schoolrdquo sections of their stores open for 6 weeks and election season is just ramping up This year we have a variety of elections taking place in Rochester Mayor City Council School Board Senator Governor US House of Representatives and State Auditor just to name a few In this monthrsquos edition of HMWUWT I will attempt to give you a little background on each of these races
MAYOR
This race was a little more crowded just a couple days ago There were three candidates Mayor Brede Cindy Maves and Stephanie Kilen On August 12 during the primary election Mayor Brede and Cindy Maves were the top two vote getters and will proceed to the General Election in November Brede received 4757 votes Maves 2473 and Kilen 1926 Look for the big issue in this election to be governmental spending since Maves used to head the Tea Party Patriots in Rochester
CITY COUNCIL WARD 3
This was another race that whittled down to two candidates during the primary Incumbent Bruce Snyder received 375 votes Vickie Anderson 188 and Nick Campion 564 Campion and Snyder both advance to the general election Ward 3 is generally considered to be NW Rochester so make sure to check which ward you live in
SCHOOL BOARD SEAT 5
Jean Marvin advanced out of the primary with 40 of the vote Terry Throndson received 33 of the vote to also advance Nora Dooley with 20 and Matthew Halleck with 7 both failed to advance to the general election
SENATOR
Senator Al Franken won his primary not surprisingly to advance as the Democratic candidate in the general election Also not surprisingly Mike McFadden won the Republican ticket and will challenge Franken in November
GOVERNOR
Jeff Johnson won the Republican primary to challenge Governor Mark Dayton in November Both candidates have ties to Rochester Jeff Johnsonrsquos running mate is former Rochester law-maker Bill Kuisle Mark Daytonrsquos running mate Tina Flint Smith is currently the chair of the Destination Medical Center Corporation
US House of Representatives District 1
Blue Earth businessman Jim Hagedorn pulled off the upset of the primary when he defeated the Republican party-endorsed candidate Aaron Miller Hagedorn will challenge the incumbent Democrat Tim Walz in November
STATE AUDITOR
I know what you are thinking why do we care about the State Auditor race and what does the State Auditor do Well the State Auditor is charged with overseeing more than $20 billion spent annually by local governments in Minnesota The State Auditor does this by performing audits of local government financial statements and by reviewing documents data reports and complaints reported to the Office The reason this race is interesting to me is because of the politicking that took place before the primary Democrat Matt Entenza bypassed the DFL convention and filed to run after the incumbent Rebecca Otto received support from the DFL party Otto defeated Entenza by a 80-20 margin Otto will face Republican Randy Gilbert in November amongst a slate of other candidates
LEARN MORE
As always Rochester Area Builders will be holding our candidate social on September 30 Make sure to come on down to mingle with the candidates and pick their brains about issues that important to you If you have any questions about the upcoming elections or anything at all feel free to email me or give me a call at the office Thanks
Matt
wwwRochesterAreaBuilderscom16 | September 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 August 2014
President Chad Kompelein
Builder VPKC Chermak
Associate VPGeorge Cundy
President ElectMike Paradise
TreasurerGerry Traut
SecretaryKurt Welker
Past PresidentKeith Kylmala
NAHB RepresentativeKathe Ostrom
Theyrsquore HereThe new codes are (finally) out Following a mutli-year process to promulgate the 2012 International Building Code the Minnesota Department of Labor and Industry (DLI) has officially published the final language for the Minnesota Building Code With the final language in hand the Builders Association of Minnesota (BAM) is adjusting and completing seven code guide documents that will be provided to members-only in September The code is slated to be enforced starting January 24 2015
Membership with the builders association is the only way to obtain a copy of these documents and as such BAM will be promoting the code guides ndash and membership ndash to all 13000 licensed contractors If interested in promoting your company statewide these code guides still have sponsorships available More at wwwbamnorgsponsorship-opps Contact Remi Stone at remibamnorg or Katherine Nielsen at katherinenbamnorg with any questions
Creating the code documents is codes expert Ed VonThoma his company Building Knowledge Inc (BKI) and a committee including 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 Thank you to these members for generously donating their time to help perfect the members-only guides
The seven code guide documents are
bull Top 20 Code Changes in the Residential Building Code
bull Top 20 Code Changes in the Energy Code
bull 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
A major benefit of membership these guides are available ONLY to members DLI issues the codes but BAM develops guides on how to implement the new codes The documents will be sent to members and made available on the BAM website optimized for both printing and easy viewing on your mobile devices out in the field
Continuing education courses based on these code guides have been assembled by BKI who is available to teach classes around the state to help members prepare to build to the new code Let your local association know if yoursquod like BKI to teach in your community
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 building industry specific construction contracts More benefits of BAM membership can be found online at wwwbamnorgmembership
WwwRochesterAreaBuilderscomSeptember 2014 | 17
Committee UpdatesAWARDS COMMITTEECHAIRPERSON Les Radcliffe Radcliffe Homes amp Remodeling
This committee is currently meeting to look for ldquospecialrdquo members to recognize for their achievements to the Association in 2014 They will choose a Rising Star - a member who has been very active in their first three years of membership as well as nominating builders and associates to receive the Builder amp Associate of the Year Award and for the company who has supported the association The Cornerstone Award In this monthrsquos newsletter you have the opportunity to nominate someone whom you have noticed working extra hard for RAB Please download the Form fill it out and return it to the RAB office
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 2014Jennifer Maass GerhardsMARKETINGRob 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
ROCHESTER AREA BUILDERS INCASKS YOU TO MAKE NOMINATIONS FOR THE
THESE MEMBERS MUST BE DEDICATED TO THE BUILDING INDUSTRY ACTIVE PARTICIPANTS OF THE ASSOCIATION
ENTHUSIASTIC
The recipients of these three awards will be chosen by the Board of Directors at their December meeting and will be awarded at the January General Membership Meeting
Previous Winners - Builders1992 Robert Gill and Richard Hanson and Joe Weis 1993 Frank Kottschade 1994 Roger Lubahn 1995 Jay Burke 1996 Dan Severson 1997 Les Radcliffe 1998 Bob DeWitz and Mark Stinson 1999 David Higgins 2000 Jackie Hanson 2001 Aaron Benike 2002 Gary Zander 2003 John McGuine 2004 Mike Coats 2005 Steve Buss 2006 Mike Hortop 2007 Jodi Hruska 2008 Jay Burke 2009 Kevin Reckinger 2010 Paul Gregor 2011 Mike Larson 2012 Kathy Einck 2013 Les Radcliffe
Previous Winners - Associates1985 Don Soderberg 1987 Robert Suk 1988 Jim Buchan 1989 Mary Moylan 1990 Craig Wendland 1991 Ron Bailey 1992 Bill Tointon 1993 Wayne Lewis 1994 Donna Scott Herriot 1995 Julie Timmerman 1996 John Arnold 1997 Steve Christopherson 1998 Brent Buchan 1999 Kim Zimmer 2000 Julie Praus 2001 Karin Buechler 2002 Dennis Hanson 2003 Carla Kilpatrick 2004 Brent Buchan 2005 Jim Gander 2006 Brian Carlson 2007 John Eischen 2008 Wayne Eisen 2009 Jennifer Maass 2010 Tony Joseph 2011 Patty Hanson 2012 David Kane 2013 Jennifer Maass
Previous Winners - Company 2009 Energy Products amp Design 2010 Knutson Construction 2011 Minnesota Energy Resources 2012 Wendland Utz 2013 Home Federal Savings Bank
Current President and Vice-President are not eligible for selection
I Nominate
Reasons for Nomination
I Nominate
Reasons for Nomination
I Nominate
CLICK HERETO DOWNLOAD
wwwRochesterAreaBuilderscom18 | September 2014
construction fashion expose
c o n s t r u c t i o n f a s h i o n e x p o s e
WwwRochesterAreaBuilderscomSeptember 2014 | 19
Members2014 Commercial Builders Council116 Members as of 63014AB Systems IncAccord Electric IncAdvanced DisposalAlpha Video amp AudioAlvin E Benike IncBEVCOMMThe Blue Book
of Building amp Construction
The Boldt CompanyBraun Intertec
CorporationBriese Iron Works IncBrock White CompanyCO Brown AgencyCambriaCarpet OneCharter
CommunicationsMedia
Chosen Valley Testing Inc
Clayton Thomas Blinds of Rochester
Construction Partnership
CRW architecture + design group inc
Custom AlarmCustom Communications Inc
D2E LLCDonlar Construction
CompanyDoyle Conner CompanyDunham Associates
IncDunlap amp SeegerJE Dunn ConstructionEastwood Bankeci llcElcor Construction IncEnergy Products amp
Design IncEnventisExpert Insulation IncFat Willyrsquos Bar amp GrillFerguson EnterprisesGerhardsGoodin CompanyHaley Comfort Systems
(Authorized FireSide Dealer)
WL Hall CompanyHDR ArchitectureHeartman InsuranceHGA Architects and
EngineersHillerrsquos Flooring AmericaHiMEC at HomeHome Federal Savings
BankHome Improvement
Professionals IncHunt Electric
CorporationInstitute for
Environmental Assessment
PA Johnson Construction LLC
KampM Glass CompanyKane amp Johnson
Architects IncKey Builders IncKnutson Construction
ServicesKomitt Concrete IncKraus-Anderson
Construction CompanyKreofsky Building
SuppliesKruse LumberKuntz Electric Inc
Kwik Trip IncLeitzen Concrete
Products IncMarvin Windows amp
DoorsMavo Systems IncMcGhie amp Betts - a
Division of WSB amp Associates Inc
McGough ConstructionMEC Construction IncMEP AssociatesMerchants BankMerit Contracting IncMidwest Walls LLCMinnesota Energy
Resources CorporationMinnwest BankNickelson Painting IncNorth Star Stone amp
MasonryOlmsted National BankOn Site CompaniesPalmer Soderberg IncPella Windows amp DoorsPeoplersquos Energy
CooperativePompeii Painting IncPrehn Building Sales
IncPremier Bank RochesterProBuild Company LLCReliable Contractors
IncRochester Area
Appraisals LLCRochester Area Econ
Development IncRochester Public
UtilitiesRochester Ready Mix
Concrete CoRochester Sign Service
IncRochester Title amp
Escrow Company IncRSP ArchitectsRyan Electric IncSchoeppner IncSchwab LLCSchwickertrsquos Tecta
America LLCSEH YaggyStantecSterling State BankStructural Design
Group IncSuperior MechanicalTamarack Materials of
Rochester IncThink Mutual BankTonna Mechanical IncTSP Architects amp
EngineersUnited RentalsThe Urban Studio LLCValor Mechanical IncVeit CompaniesVertical Limit
ConstructionViking Automatic
Sprinkler CompanyViking Electric SupplyWeis Builders IncWells Fargo Bank
Minnesota NAWendland UtzWest BankWHKS amp CompanyWHV IncWidseth Smith Nolting
BUILDERS COUNCILCOMMERCIAL
a d i v i s i o n o f R o c h e s t e r A r e a B u i l d e r s I n c
EXECUTIVE COMMITTEEChairperson Chris Terry Knutson Construction ServicesVice Chairperson Nick Leimer Kraus-Anderson Construction CompanyPast Chairperson Sue Hanson Rochester Title amp Escrow Company IncMembers-at-LargeJohn Hill Schwab LLCShaun Knode AB Systems IncJohn Kuntz Kuntz Electric IncLevi Kaiser AE Benike IncMatt Mohs WHKS amp CompanyMike Nordstrom Superior Mechanical
August Meeting Photos
New Member
Clayton Thomas Blinds of RochesterDarlene Drew
2400 Country Club Rd SWRochester MN 55902
507-258-4457
August MEETINGDATE Wednesday August 6th 2014TIME Registration amp Networking at 700 AM Program at 730 AMPLACE Ramada Hotel amp Conference CenterPROGRAM World Fair 2023SPEAKERS Mark Ritchie Minnesota Secretary of State
wwwRochesterAreaBuilderscom20 | September 2014
2014 VALUATION 2013 VALUATION
New Residential Single Family Dwelling 30 7389265 39 9441463
Townhome Dwelling 8 1224172 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 45 283519 33 160271
Room Addition 3 85012 4 177306
Porch Additions 1 8000 2 39494
Other Additions 4 38500 2 23940
Basement Finish 18 240045 24 323650
Alterations 41 234327 45 281947
Multi-Family Addition 0 0 4 31620
Multi-Family Alterations 14 151160 6 4615400 New Commercial Assembly (Church) 0 0 0 0
Assembly (General) 0 0 1 2720000
Assembly (RestaurantBar) 0 0 0 0
Business 0 0 0 0
Education 0 0 0 0
FactoryIndustrial 0 0 0 0
Institution 0 0 0 0
Mercantile 0 0 1 580000
Miscelaneous 0 0 0 0
Utility (General) 0 0 1 90000
Residential (CareAssisted Living) 0 0 0 0
Storage (General) 0 0 0 0
Storage (Warehouse) 0 0 0 0 Existing CommercialAddition 3 4313000 2 1214050
Alterations 25 4451261 40 6158997
Structural Shell 0 0 0 0
ldquoWhite Boxrdquo 0 0 0 0
Interior Demolition Only 2 2017000 3 54800
Other Phased Permits 1 6700 0 0
Other ConstructionBusiness Signs 4 10630 12 87202
Advertising Sign 0 0 0 0
Footings amp Foundations 1 76000 1 1100000
Demolition 0 1
Rochester Building Permits July 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
June 81 59 43 36 36 12 26 32 33 41
July 58 36 60 23 21 23 8 39 39 38
TOTAL 397 329 275 178 139 128 102 180 201 192
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 702 506 417 302 274 200 191 299 326 192
Single Family Homes
Year To Date Statistics 2014 2013 NO VALUATION NO VALUATION
Building Permits Issued to Date 1377 199056393 1280 149430856
Single Family Dwelling 186 45041027 201 47362534
Multi-Family Buildings Total Units 39 1 3702052 0 0
Trade Permits Issued to Date 4558 46616612 4145 40187782
Electrical 1573 20801155 1355 18804490
Electrical (Temp Service) 159 46875 188 39500
Mechanical 1187 12309661 1078 10781042
Gas Piping 317 546576 286 263280
Fireplace 237 629268 215 506084
Hydronic System 94 4005425 69 3097653
Plumbing 991 8277652 954 6695793
Total Permits YTD 5935 245673005 5425 189618638
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
WwwRochesterAreaBuilderscomSeptember 2014 | 21
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
JUNE 2014
New Residential NUMBER VALUATION
Single Family 9 1991399
Commercial
Addition 1 89470
Existing Residential
Deck Addition 7 41847
Basement Finish 1 12000
Garage 1 2267
Accessory Building 2 11500
ByronBuilding Permits
JULY 2014
Existing Residential NUMBER VALUATION
Sprinkler System 1 5000
Residing 1 5000
Reroof 5 25000
Deck 2 6000
Mechanical 1 1000
Garage 1 20000
Pine IslandBuilding Permits
wwwRochesterAreaBuilderscom22 | September 2014
In early 2000 the SampP 500 hit 1553 and the tech-heavy NASDAQ surpassed 5000 Two years later the SampP was at 768 and the NASDAQ was at 800 In the process $6 trillion in household wealth was wiped out We now call that period the dot-com bubble About half a decade later we experienced the housing market bubble Interestingly the value of residential real estate destroyed during that crisis was also about $6 trillion Yet the dot-com bubble resulted in a mild recession while the housing bust lead to the Great Recession What was different It turns a major culprit was which households suffered the destruction of wealth
To set the table ponder this During the housing bust retail spending fell 8 from 2007 to 2009 one the largest drops ever By contrast retail spending increased by 5 between 2000 and 2002 Clearly the losses sustained during the dot-com bust had minimal impacts on household spending decisions and thus on the overall economy Here is why
The decline in home prices that began in 2007 was highly concentrated among households with very limited financial resources As a result these now much-poorer households dramatically pulled back on spending and in the process unwittingly helped usher in the Great Recession Remember retail spending is about a quarter of GDP so a decline of 8 over two years reduces GDP by 2 -- a huge amount It is as if these poorer households were the transmission mechanism through which the Great Recession got its energy
Exacerbating and reinforcing this downward spiral was the role of debt or leverage Remember by 2004 or 2005 a large percentage of first-time home buyers had low FICO scores sketchy employment histories
and limited assets To compensate these Alt-A and subprime buyers borrowed heavily with their now highly levered house being their major financial asset For example among the poorest quintile of the population 80 of their net worth is in their house Even among the middle quintile home equity is still 60 of their net worth By borrowing so much just a small decline in house prices could put these buyers upside down and wipe them out Which is exactly what happened and is what turned a recession into the Great Recession Between 2007 and 2010 the bottom 20 of the population saw their net worth fall from about $30000 to zero
By contrast the financial losses sustained during the dot-com bubble were essentially walled off and had relatively little effect on the overall economy This is because stock ownership is concentrated among the wealthy As the wealthy have less debt and more assets they could essentially shrug off the much larger financial losses they sustained yet not have them alter their day-to-day spending decisions Among the wealthiest 20 of the population home equity represents just 25 of their net worth Moreover depression-era federal laws make it hard to borrow more than 50 of the cost of stock purchases thereby limiting the potentially negative role of leverage
In short the home buyers who bought in 2004 and 2005 had limited wealth and had more of it at risk than earlier home buyers When the music stopped they were highly levered and wholly unable to protect themselves That quickly resulted in (among other things) reduced spending which shrank GDP and quickly cascaded into the Great Recession
+++++++++++++++++
All Bubbles Are Not ++++++++++Created Equal + + + + + + + + + + + + + + + + +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
WwwRochesterAreaBuilderscomSeptember 2014 | 23
NONE
MEMBERSHIPS PENDINGNONE
The firms listed below have applied for membership in Rochester Area Builders Inc
MEMBERSHIP TOTAL 451RETENTION RATE 929
As of 63014
WE WELCOME THE FOLLOWING NEW MEMBERS IN AUGUST
Membership InformationMembership Renewals as of 73114
Two to Four Years
Kraus-Anderson Construction Company 2012Electrical Solutions amp Service 2011Energy Panel Structures 2011Lowersquos Home Improvement 2011Minnwest Bank 2011RCTC Carpentry Program 2011Reynolds Design and Construction 2010
Five to Nine Years
Great River Overhead Door 2007Meadow Lakes Builders 2007Rochester International Event Center 2007The Urban Studio LLC 2007Hunt Electric Corporation 2006Otis Custom Homes LLC 2006Larry Newman Drywall 2005Pahl amp Kaye Inc 2005Synergy Products 2005Tradesmen International Inc 2005
Ten to 19 Years
Greg Wellik Construction 2004Morris Concrete Inc 2004AampA Electric amp Underground Inc 2003Advanced Disposal 2002Knutson Construction Services 2002Tagrsquos Drywall Inc 2001Ronningen Roofing Inc 2000Ferguson Enterprises 1998
20 to 24 Years
Bright Ideas 1993Hirshfieldrsquos Decorating Center 1993Brock White Company 1991Dan Severson Builders Inc 1991
25 Years amp More
Gerhards 1988Express Employment Professionals 1985Townsquare Media Rochester 1983Smith Schafer amp Associates Ltd 1982Hayfield Window amp Door Company 1981Quality Overhead Door Company Inc 1981Energy Products amp Design Inc 1980Tom Brogan Heating amp Air Conditioning 1980Alvin E Benike Inc 1979Pella Windows amp Doors 1978Northern Lights amp Furnishings 1976Wells Fargo Home Mortgage 1964Alexander amp Sons Builders 1962
NEW APPLICANTS
CLIFTONLARSONALLEN LLP7389 Airport View Drive SW Suite 100
Rochester MN 55902Phone 507-280-2300Contact Paul Alberts
Associate MemberAccountingConsulting
Sponsored by Joel Alberts AampA Electric amp Underground Inc
DISTINGUISHED HOMES BY MITCH HAGEN LLC3015 18th Avenue SWRochester MN 55902Phone 507- 951-1962Contact Mitch Hagen
Builder MemberResidential Builder amp Remodeler
Sponsored by Brandon Vagt XRG Concepts LLC
LOW VOLTAGE CONTRACTORS
4200 West 76th StreetMinneapolis MN 55435
Phone 952-835-4600Contact Cathy Trast
Associate MemberFire amp Life Safety Integrated Systems Service Provider
Sponsored by John Eckerman The Boldt Company
PACE INTERNATIONAL 3582 Technology Drive NW
Rochester MN 55901Phone 507-424-4900Contact Jim WestraAssociate Member
Commercial Satellite amp Cable Television ProductsSponsored by Jay Burke Heartwood Homes of Rochester Inc
wwwRochesterAreaBuilderscom24 | September 2014
Put your membershipto work nowMoney-saving discounts that benefit yourbusiness your employees and your family
wwwnahborgMA
National Association of Home Builders
R
WwwRochesterAreaBuilderscomSeptember 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 Jeremy Bigelow Bigelow Homes 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 Sheehan 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 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
Donrsquot forget to mark you calendar for the August Networking Night
Tuesday August 26th at Premier Bank Rochester
3145 Wellner Dr NEHours 500 pm - 700 pm
WHY PREMIER
Premier is large enough to offer state of the art financial products and services yet small enough to give clients the personal attention they deserve Premierrsquos stable lending team take the time to understand clientrsquos needs so they are better served Established and continuing as independent community-oriented banks Premier Banks continue to meet the financial need of our clients and supply the credit necessary for local businesses and industries to grow
OUR MISSION
To be the premier community bank in the region and the bank of choice in each of the communities we serve
To foster long-term commercial relationships built on trust by observing the highest standards of corporate and social
responsibility
To create value for our customers employees and shareholders through excellent performance state of the
art technology and a relentless commitment to service
PREMIER BANK IS HAPPY TO BE CELEBRATING THEIR 40TH ANNIVERSARY
Hosted By
PremierBanksMEMBER
wwwRochesterAreaBuilderscom6 | September 2014
What Green Building Expomdashan event for the
public
When Saturday Oct 25th -or- Nov 1st
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
Please reply with your registraon and payment by October 3rd
Signature Event Sponsors
NEW DATE DEADLINE EXTENDEDEXHIBITORS NEEDEDNEW DATE DEADLINE EXTENDEDEXHIBITORS NEEDED
C
M
Y
CM
MY
CY
CMY
K
RFPpdf 8212014 112647 AM
WwwRochesterAreaBuilderscomSeptember 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
Green Building Expo Registraon Form
Register by October 3rd 2014 by emailing a
scanned version of this form to
MahewLRochesterAreaBuilderscom
or by faxing it to Rochester Area Builders at
507-280-6351 If you would like to mail in the
form please mail it to
Rochester Area Builders Inc
108 Elton Hills Ln NW
Rochester MN 55901
C
M
Y
CM
MY
CY
CMY
K
RFP - Registrationpdf 8212014 114006 AM
wwwRochesterAreaBuilderscom8 | September 2014
July Networking NightAssociation Scrapbook
Thank you to all who attended Membership Appreciation Night at the Rochester Area Buildersrsquo office on July 29 Thank you Home Federal for sponsoring the
beverages and Home Improvement Professionals for the tents We would like to thank everybody for supporting BAM-PAC by participating in the wine amp beer tasting We raised over $300 for PAC If you would like to purchase a wine glass or beer flight glass (with the RAB logo) there are a few left at $5 each Sorry at this point the glasses are empty
GIVE AWAYSCharlie Brown PC Applications won a gift card to the Hubble House from RAB and the proverbial bad penny Rick Dold Godwin Law Office won ldquoDinner on Usrdquo from the Post Bulletin
Thank You
WwwRochesterAreaBuilderscomSeptember 2014 | 9
Association ScrapbookMember Appreciation Night
APPRECIATION
wwwRochesterAreaBuilderscom10 | September 2014
DATES AND TIMES FOR THE 2014 FALL SHOWCASE OF HOMESFriday Sept 12 Signs to be Picked Up 800 AM ndash 400 PMSaturday Sept 13 Entries Open to Public 1100 AM ndash 500 PMSunday Sept 14 Entries Open to Public 1100 AM ndash 500 PMSaturday Sept 20 Entries Open to Public 1100 AM ndash 500 PMSunday Sept 21 Entries Open to Public 1100 AM ndash 500 PMMonday Sept 22 Signs to be Returned 800 AM ndash 500 PM
1 Med City Builders of Rochester LLC60766 254th Avenue MantorvilleHome
2 Somerby Golf Community943 Somerby Parkway NE ByronDevelopment
3 Summit Custom Homes LLC943 Somerby Parkway NE ByronHome
4 Bigelow Homes LLC488 15th Ave NE ByronHome
5 Countryside Builders LLC1548 Wickford Place NE ByronHome
6 Derby Construction LLC6341 Oak Meadow Lane NWHome
7 Wright Homes Inc5897 Dogwood CourtTownhome
8 Thimijan Custom Homes LLC2326 Granite Circle NWHome
9 JNS Builders2583 Flagstone Lane NWHome
10 Cravath Homes LLC6878 Larkspur ParkwayHome
11 Bigelow amp Lennon Construction6320 Mallard Drive NWHome
12 Bigelow Homes LLC5542 Harvest Lake Drive NWHome
13 DeWitz Home Builders6221 51st Street NWHome
14 Majestic Homes Inc4818 Bishop Lane NWHome
15 Exclusive Home Builders amp Remodelers3609 46th Avenue NWHome
16 MDH Inc ndash Orchard Hills Builders626 Gates Lane SWHome
17 MDH Inc ndash Fox Hill Builders1031 Fox Valley Place SWHome
18 Meadow Lakes Builders3890 Berkshire Road SWHome
19 High Definition Homes LLC1291 Boulder Creek Lane SWHome
20 Craig Swanson Builders Inc2710 Headland Court SWHome
21 Distinguished Homes by Mitch Hagen 3550 Woodstone Drive SWHome
22 Penz Custom Homes Inc3622 Triton Lane SWHome
23 Chris Fritsch Custom Homes LLC3915 Creek View Lane SWHome
24 Thimijan Custom Homes LLC5380 Scenic View Drive SWHome
25 RJ Manemann Custom Homes5406 Scenic View Drive SWHome
26 R amp M Development5448 Scenic View Drive SWHome
ShowcaseofFallFall
SHOWCASE ENTRIES
Sponsored By
WwwRochesterAreaBuilderscomSeptember 2014 | 11
DATES AND TIMES FOR THE 2014 REMODELERS TOURFriday Sept 12 Signs to be Picked Up 800 AM ndash 400 PMSaturday Sept 13 Entries Open to Public 1100 AM ndash 500 PMSunday Sept 14 Entries Open to Public 1100 AM ndash 500 PMMonday Sept 15 Signs to be Returned 800 AM ndash 500 PM
27 Stonebridge Builders5393 Scenic View Drive SWHome
28 Bigelow Homes LLC5530 Leslie Lane SWHome
29 Bigelow Homes LLC2811 Talon Place SETownhome Community
30 R Fleming Construction Inc2529 Tee Time Road SEHome
31 Centurion Ridge LLCCenturion Court NETownhome Community
32 Maplewood Homes LLC1819 Shannon Oaks Blvd NEHome
33 Countryside Builders LLC2348 Coral Ridge Place NETownhome Community
34 Countryside Builders LLC3669 Cameo LaneHome
35 Countryside Builders LLC3519 Jasper Court NEHome
36 Penz Custom Homes Inc3897 Cameo Place NEHome
37 Otis Custom Homes LLC1716 Stone Crest Dr NEHome
38 Majestic Homes Inc3950 Cedarwood Road NEHome
39 Custom Homes by Bradley Inc4053 Stone Point Drive NEHome
40 Chris Fritsch Custom Homes LLC844 Zumbro Woods Lane NW OronocoHome
1 Reynolds Design amp Construction
4905 Oaklawn Lane NWKitchen
2 Master Builders Inc4242 Arboretum Drive NW
Four Season Addition
3 Elias Construction LLC913 3rd Street NW Byron
Whole House Remodel
4 Design Studio B835 Fox Pointe Lane SW
Kitchen
5 Beyond Kitchens LLC923 10th Street SW
Kitchen
6 Chladek
Construction LLC245 1st Street NW Elgin
Exterior Remodel amp Addition
SHOWCASE ENTRIES
Sponsored By
RemodelersRemodelers
TOUR ENTRIES
ADMISSION IS FREE
wwwRochesterAreaBuilderscom12 | September 2014
PROJECT KITCHEN AND BATHROOM REMODEL CONTRACTOR BEYOND KITCHENS LLCHOST KATIE DARVAL PROJECT COORDINATORDESIGNER
REMODELING A HOME IS A UNIQUE AND MULTIFACETED CHALLENGE IT TAKES A SPECIAL KIND OF VISION TO LOOK PAST WHAT A ROOM HAS BEEN AND SEE WHAT IT COULD BE IT TAKES A SPECIAL KIND OF DETERMINATION TO OVERCOME THE OBSTACLES THAT ALWAYS COME WHEN YOUrsquoRE TRYING TO FIT SOMETHING NEW INTO A SPACE THAT WAS NOT ORIGINALLY DESIGNED FOR IT AND IT TAKES A SPECIAL KIND OF PERSONALITY TO MAKE A HOMEOWNER FEEL COMFORTABLE WITH YOU ESSENTIALLY MOVING IN AND TURNING THEIR LIVING SPACE INTO YOUR WORK PLACE
Beyond Kitchens LLC has been making those challenges their business for almost 20 years This talented team of women is composed of owner Diane Quinn CKD Christina Jorgensen AKBD and Katie Darval their project coordinator who was kind enough to give me access to the project and answer my questions about it The project inside a lovely home in Southwest Rochester with a striking red door that demands attention and welcomes you inside was about more than just a new look
for the homeowners Work responsibilities for one of the couple mean clocking in from home at all hours of the night to make calls to overseas contacts making storage for a home office very important But the clients also wanted an uncluttered look and for the overall feel of refinement and elegance to remain unspoiled So these workday necessities were given space in cabinetry adjoining the dining room complete with in-drawer outlets and USB ports so that all of their phones tablets and laptops can be tucked away out of site while not in use
To further the goal of uninterrupted elegance Beyond Kitchens went the extra mile by acquiring custom outlet and switch covers made of real stone As Katie
WwwRochesterAreaBuilderscomSeptember 2014 | 13
says ldquothe backsplash and lighting are the jewelry to the roomrdquo Using these stone covers means that the outlets and switches wonrsquot be the first thing you notice when you enter the room While they are beautifully made their real purpose is not to stand out but to blend in and to let the overall beauty of the room shine without distraction Itrsquos their attention to small details like this that truly show Beyond Kitchensrsquo ability to create a room that not only wows you on first sight but also ensures the homeowners will be happy with the project years down the road
Of course working with the homeowners and what they bring to the table is crucial When you are building a new home you can design a kitchen pick the cabinets you like best and then choose the flooring and appliances that best accent it Remodeling is rarely that simple In this case the kitchen already had beautiful hardwood floors that only needed to be restored The homeowners had also recently purchased black appliances so those needed to be allowed for in the design as well Katie says they decided to use off white cabinets in most of the kitchen to create a more spacious feel while incorporating the
black appliances with a wall of dark wood cabinetry They also enhanced the feeling of spaciousness by extending the tile backsplash all the way up to the ceiling above the range Creating space whether through i l lus ion or through creative hidden storage is often a necessity in older homes
Another necessity in older homes is dealing with those unpredictable obstacles you encounter I say unpredictable because you never know what theyrsquore going to be but you can always predict that yoursquoll run into some And the most common time for obstacles to show up is during demolition Exhibit A the Soffits As Katie notes sometimes soffits are included purely as a cosmetic feature Other times they are utilized to as a space for plumbing or electrical runs The vision for this project included removing the soffits and having the upper cabinets extend all the way to the ceiling (yet another trick to add a feeling of spacious grandeur
to the room) So of course f o l l o w i n g Murphyrsquos law these soffits c o n t a i n e d p i p i n g a n d drains from
an upstairs bathroom meaning some significant reworking of those pipes and drains had to be done to achieve their goal In the end though it was wort the trouble Oh the joys of remodeling
wwwRochesterAreaBuilderscom14 | September 2014
With all of the difficulty inherent in a remodeling project it might seem like a miracle that the contractor and the homeowner are still on speaking terms by the end of it Even if everything goes smoothly you are still interrupting the daily routine of someone for weeks or months on end But having had a chance to chat with the homeowner on my last visit after the project was complete I can report that miracles can indeed happen She had nothing but praise for Katie the team at Beyond Kitchens and all their subcontractors I too think the project was beautifully done and Irsquom happy to have been invited into their home
If yoursquod like to see more of Beyond Kitchens LLCrsquos work you can check out their website at wwwbeyondkitchenscom and make plans to visit their Remodelers Tour project located at 923 10th St SW on September 13th and 14th
Other RAB members who worked on this project include
bull Brandrup Builders
bull Bright Ideas
bull Creative Hardwood Floors
bull DeGeus Tile amp Granite
bull Ferguson Enterprises
bull Innovative Surfaces
bull Larry Newman Drywall
bull Kuntz Electric Inc
bull Top Shop of Rochester Inc
WwwRochesterAreaBuilderscomSeptember 2014 | 15
ldquoHey Matt what can you tell me about the current crop of local candidatesrdquo
Itrsquos August That means that summer is coming to a close department stores have had their ldquoback-to-schoolrdquo sections of their stores open for 6 weeks and election season is just ramping up This year we have a variety of elections taking place in Rochester Mayor City Council School Board Senator Governor US House of Representatives and State Auditor just to name a few In this monthrsquos edition of HMWUWT I will attempt to give you a little background on each of these races
MAYOR
This race was a little more crowded just a couple days ago There were three candidates Mayor Brede Cindy Maves and Stephanie Kilen On August 12 during the primary election Mayor Brede and Cindy Maves were the top two vote getters and will proceed to the General Election in November Brede received 4757 votes Maves 2473 and Kilen 1926 Look for the big issue in this election to be governmental spending since Maves used to head the Tea Party Patriots in Rochester
CITY COUNCIL WARD 3
This was another race that whittled down to two candidates during the primary Incumbent Bruce Snyder received 375 votes Vickie Anderson 188 and Nick Campion 564 Campion and Snyder both advance to the general election Ward 3 is generally considered to be NW Rochester so make sure to check which ward you live in
SCHOOL BOARD SEAT 5
Jean Marvin advanced out of the primary with 40 of the vote Terry Throndson received 33 of the vote to also advance Nora Dooley with 20 and Matthew Halleck with 7 both failed to advance to the general election
SENATOR
Senator Al Franken won his primary not surprisingly to advance as the Democratic candidate in the general election Also not surprisingly Mike McFadden won the Republican ticket and will challenge Franken in November
GOVERNOR
Jeff Johnson won the Republican primary to challenge Governor Mark Dayton in November Both candidates have ties to Rochester Jeff Johnsonrsquos running mate is former Rochester law-maker Bill Kuisle Mark Daytonrsquos running mate Tina Flint Smith is currently the chair of the Destination Medical Center Corporation
US House of Representatives District 1
Blue Earth businessman Jim Hagedorn pulled off the upset of the primary when he defeated the Republican party-endorsed candidate Aaron Miller Hagedorn will challenge the incumbent Democrat Tim Walz in November
STATE AUDITOR
I know what you are thinking why do we care about the State Auditor race and what does the State Auditor do Well the State Auditor is charged with overseeing more than $20 billion spent annually by local governments in Minnesota The State Auditor does this by performing audits of local government financial statements and by reviewing documents data reports and complaints reported to the Office The reason this race is interesting to me is because of the politicking that took place before the primary Democrat Matt Entenza bypassed the DFL convention and filed to run after the incumbent Rebecca Otto received support from the DFL party Otto defeated Entenza by a 80-20 margin Otto will face Republican Randy Gilbert in November amongst a slate of other candidates
LEARN MORE
As always Rochester Area Builders will be holding our candidate social on September 30 Make sure to come on down to mingle with the candidates and pick their brains about issues that important to you If you have any questions about the upcoming elections or anything at all feel free to email me or give me a call at the office Thanks
Matt
wwwRochesterAreaBuilderscom16 | September 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 August 2014
President Chad Kompelein
Builder VPKC Chermak
Associate VPGeorge Cundy
President ElectMike Paradise
TreasurerGerry Traut
SecretaryKurt Welker
Past PresidentKeith Kylmala
NAHB RepresentativeKathe Ostrom
Theyrsquore HereThe new codes are (finally) out Following a mutli-year process to promulgate the 2012 International Building Code the Minnesota Department of Labor and Industry (DLI) has officially published the final language for the Minnesota Building Code With the final language in hand the Builders Association of Minnesota (BAM) is adjusting and completing seven code guide documents that will be provided to members-only in September The code is slated to be enforced starting January 24 2015
Membership with the builders association is the only way to obtain a copy of these documents and as such BAM will be promoting the code guides ndash and membership ndash to all 13000 licensed contractors If interested in promoting your company statewide these code guides still have sponsorships available More at wwwbamnorgsponsorship-opps Contact Remi Stone at remibamnorg or Katherine Nielsen at katherinenbamnorg with any questions
Creating the code documents is codes expert Ed VonThoma his company Building Knowledge Inc (BKI) and a committee including 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 Thank you to these members for generously donating their time to help perfect the members-only guides
The seven code guide documents are
bull Top 20 Code Changes in the Residential Building Code
bull Top 20 Code Changes in the Energy Code
bull 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
A major benefit of membership these guides are available ONLY to members DLI issues the codes but BAM develops guides on how to implement the new codes The documents will be sent to members and made available on the BAM website optimized for both printing and easy viewing on your mobile devices out in the field
Continuing education courses based on these code guides have been assembled by BKI who is available to teach classes around the state to help members prepare to build to the new code Let your local association know if yoursquod like BKI to teach in your community
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 building industry specific construction contracts More benefits of BAM membership can be found online at wwwbamnorgmembership
WwwRochesterAreaBuilderscomSeptember 2014 | 17
Committee UpdatesAWARDS COMMITTEECHAIRPERSON Les Radcliffe Radcliffe Homes amp Remodeling
This committee is currently meeting to look for ldquospecialrdquo members to recognize for their achievements to the Association in 2014 They will choose a Rising Star - a member who has been very active in their first three years of membership as well as nominating builders and associates to receive the Builder amp Associate of the Year Award and for the company who has supported the association The Cornerstone Award In this monthrsquos newsletter you have the opportunity to nominate someone whom you have noticed working extra hard for RAB Please download the Form fill it out and return it to the RAB office
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 2014Jennifer Maass GerhardsMARKETINGRob 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
ROCHESTER AREA BUILDERS INCASKS YOU TO MAKE NOMINATIONS FOR THE
THESE MEMBERS MUST BE DEDICATED TO THE BUILDING INDUSTRY ACTIVE PARTICIPANTS OF THE ASSOCIATION
ENTHUSIASTIC
The recipients of these three awards will be chosen by the Board of Directors at their December meeting and will be awarded at the January General Membership Meeting
Previous Winners - Builders1992 Robert Gill and Richard Hanson and Joe Weis 1993 Frank Kottschade 1994 Roger Lubahn 1995 Jay Burke 1996 Dan Severson 1997 Les Radcliffe 1998 Bob DeWitz and Mark Stinson 1999 David Higgins 2000 Jackie Hanson 2001 Aaron Benike 2002 Gary Zander 2003 John McGuine 2004 Mike Coats 2005 Steve Buss 2006 Mike Hortop 2007 Jodi Hruska 2008 Jay Burke 2009 Kevin Reckinger 2010 Paul Gregor 2011 Mike Larson 2012 Kathy Einck 2013 Les Radcliffe
Previous Winners - Associates1985 Don Soderberg 1987 Robert Suk 1988 Jim Buchan 1989 Mary Moylan 1990 Craig Wendland 1991 Ron Bailey 1992 Bill Tointon 1993 Wayne Lewis 1994 Donna Scott Herriot 1995 Julie Timmerman 1996 John Arnold 1997 Steve Christopherson 1998 Brent Buchan 1999 Kim Zimmer 2000 Julie Praus 2001 Karin Buechler 2002 Dennis Hanson 2003 Carla Kilpatrick 2004 Brent Buchan 2005 Jim Gander 2006 Brian Carlson 2007 John Eischen 2008 Wayne Eisen 2009 Jennifer Maass 2010 Tony Joseph 2011 Patty Hanson 2012 David Kane 2013 Jennifer Maass
Previous Winners - Company 2009 Energy Products amp Design 2010 Knutson Construction 2011 Minnesota Energy Resources 2012 Wendland Utz 2013 Home Federal Savings Bank
Current President and Vice-President are not eligible for selection
I Nominate
Reasons for Nomination
I Nominate
Reasons for Nomination
I Nominate
CLICK HERETO DOWNLOAD
wwwRochesterAreaBuilderscom18 | September 2014
construction fashion expose
c o n s t r u c t i o n f a s h i o n e x p o s e
WwwRochesterAreaBuilderscomSeptember 2014 | 19
Members2014 Commercial Builders Council116 Members as of 63014AB Systems IncAccord Electric IncAdvanced DisposalAlpha Video amp AudioAlvin E Benike IncBEVCOMMThe Blue Book
of Building amp Construction
The Boldt CompanyBraun Intertec
CorporationBriese Iron Works IncBrock White CompanyCO Brown AgencyCambriaCarpet OneCharter
CommunicationsMedia
Chosen Valley Testing Inc
Clayton Thomas Blinds of Rochester
Construction Partnership
CRW architecture + design group inc
Custom AlarmCustom Communications Inc
D2E LLCDonlar Construction
CompanyDoyle Conner CompanyDunham Associates
IncDunlap amp SeegerJE Dunn ConstructionEastwood Bankeci llcElcor Construction IncEnergy Products amp
Design IncEnventisExpert Insulation IncFat Willyrsquos Bar amp GrillFerguson EnterprisesGerhardsGoodin CompanyHaley Comfort Systems
(Authorized FireSide Dealer)
WL Hall CompanyHDR ArchitectureHeartman InsuranceHGA Architects and
EngineersHillerrsquos Flooring AmericaHiMEC at HomeHome Federal Savings
BankHome Improvement
Professionals IncHunt Electric
CorporationInstitute for
Environmental Assessment
PA Johnson Construction LLC
KampM Glass CompanyKane amp Johnson
Architects IncKey Builders IncKnutson Construction
ServicesKomitt Concrete IncKraus-Anderson
Construction CompanyKreofsky Building
SuppliesKruse LumberKuntz Electric Inc
Kwik Trip IncLeitzen Concrete
Products IncMarvin Windows amp
DoorsMavo Systems IncMcGhie amp Betts - a
Division of WSB amp Associates Inc
McGough ConstructionMEC Construction IncMEP AssociatesMerchants BankMerit Contracting IncMidwest Walls LLCMinnesota Energy
Resources CorporationMinnwest BankNickelson Painting IncNorth Star Stone amp
MasonryOlmsted National BankOn Site CompaniesPalmer Soderberg IncPella Windows amp DoorsPeoplersquos Energy
CooperativePompeii Painting IncPrehn Building Sales
IncPremier Bank RochesterProBuild Company LLCReliable Contractors
IncRochester Area
Appraisals LLCRochester Area Econ
Development IncRochester Public
UtilitiesRochester Ready Mix
Concrete CoRochester Sign Service
IncRochester Title amp
Escrow Company IncRSP ArchitectsRyan Electric IncSchoeppner IncSchwab LLCSchwickertrsquos Tecta
America LLCSEH YaggyStantecSterling State BankStructural Design
Group IncSuperior MechanicalTamarack Materials of
Rochester IncThink Mutual BankTonna Mechanical IncTSP Architects amp
EngineersUnited RentalsThe Urban Studio LLCValor Mechanical IncVeit CompaniesVertical Limit
ConstructionViking Automatic
Sprinkler CompanyViking Electric SupplyWeis Builders IncWells Fargo Bank
Minnesota NAWendland UtzWest BankWHKS amp CompanyWHV IncWidseth Smith Nolting
BUILDERS COUNCILCOMMERCIAL
a d i v i s i o n o f R o c h e s t e r A r e a B u i l d e r s I n c
EXECUTIVE COMMITTEEChairperson Chris Terry Knutson Construction ServicesVice Chairperson Nick Leimer Kraus-Anderson Construction CompanyPast Chairperson Sue Hanson Rochester Title amp Escrow Company IncMembers-at-LargeJohn Hill Schwab LLCShaun Knode AB Systems IncJohn Kuntz Kuntz Electric IncLevi Kaiser AE Benike IncMatt Mohs WHKS amp CompanyMike Nordstrom Superior Mechanical
August Meeting Photos
New Member
Clayton Thomas Blinds of RochesterDarlene Drew
2400 Country Club Rd SWRochester MN 55902
507-258-4457
August MEETINGDATE Wednesday August 6th 2014TIME Registration amp Networking at 700 AM Program at 730 AMPLACE Ramada Hotel amp Conference CenterPROGRAM World Fair 2023SPEAKERS Mark Ritchie Minnesota Secretary of State
wwwRochesterAreaBuilderscom20 | September 2014
2014 VALUATION 2013 VALUATION
New Residential Single Family Dwelling 30 7389265 39 9441463
Townhome Dwelling 8 1224172 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 45 283519 33 160271
Room Addition 3 85012 4 177306
Porch Additions 1 8000 2 39494
Other Additions 4 38500 2 23940
Basement Finish 18 240045 24 323650
Alterations 41 234327 45 281947
Multi-Family Addition 0 0 4 31620
Multi-Family Alterations 14 151160 6 4615400 New Commercial Assembly (Church) 0 0 0 0
Assembly (General) 0 0 1 2720000
Assembly (RestaurantBar) 0 0 0 0
Business 0 0 0 0
Education 0 0 0 0
FactoryIndustrial 0 0 0 0
Institution 0 0 0 0
Mercantile 0 0 1 580000
Miscelaneous 0 0 0 0
Utility (General) 0 0 1 90000
Residential (CareAssisted Living) 0 0 0 0
Storage (General) 0 0 0 0
Storage (Warehouse) 0 0 0 0 Existing CommercialAddition 3 4313000 2 1214050
Alterations 25 4451261 40 6158997
Structural Shell 0 0 0 0
ldquoWhite Boxrdquo 0 0 0 0
Interior Demolition Only 2 2017000 3 54800
Other Phased Permits 1 6700 0 0
Other ConstructionBusiness Signs 4 10630 12 87202
Advertising Sign 0 0 0 0
Footings amp Foundations 1 76000 1 1100000
Demolition 0 1
Rochester Building Permits July 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
June 81 59 43 36 36 12 26 32 33 41
July 58 36 60 23 21 23 8 39 39 38
TOTAL 397 329 275 178 139 128 102 180 201 192
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 702 506 417 302 274 200 191 299 326 192
Single Family Homes
Year To Date Statistics 2014 2013 NO VALUATION NO VALUATION
Building Permits Issued to Date 1377 199056393 1280 149430856
Single Family Dwelling 186 45041027 201 47362534
Multi-Family Buildings Total Units 39 1 3702052 0 0
Trade Permits Issued to Date 4558 46616612 4145 40187782
Electrical 1573 20801155 1355 18804490
Electrical (Temp Service) 159 46875 188 39500
Mechanical 1187 12309661 1078 10781042
Gas Piping 317 546576 286 263280
Fireplace 237 629268 215 506084
Hydronic System 94 4005425 69 3097653
Plumbing 991 8277652 954 6695793
Total Permits YTD 5935 245673005 5425 189618638
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
WwwRochesterAreaBuilderscomSeptember 2014 | 21
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
JUNE 2014
New Residential NUMBER VALUATION
Single Family 9 1991399
Commercial
Addition 1 89470
Existing Residential
Deck Addition 7 41847
Basement Finish 1 12000
Garage 1 2267
Accessory Building 2 11500
ByronBuilding Permits
JULY 2014
Existing Residential NUMBER VALUATION
Sprinkler System 1 5000
Residing 1 5000
Reroof 5 25000
Deck 2 6000
Mechanical 1 1000
Garage 1 20000
Pine IslandBuilding Permits
wwwRochesterAreaBuilderscom22 | September 2014
In early 2000 the SampP 500 hit 1553 and the tech-heavy NASDAQ surpassed 5000 Two years later the SampP was at 768 and the NASDAQ was at 800 In the process $6 trillion in household wealth was wiped out We now call that period the dot-com bubble About half a decade later we experienced the housing market bubble Interestingly the value of residential real estate destroyed during that crisis was also about $6 trillion Yet the dot-com bubble resulted in a mild recession while the housing bust lead to the Great Recession What was different It turns a major culprit was which households suffered the destruction of wealth
To set the table ponder this During the housing bust retail spending fell 8 from 2007 to 2009 one the largest drops ever By contrast retail spending increased by 5 between 2000 and 2002 Clearly the losses sustained during the dot-com bust had minimal impacts on household spending decisions and thus on the overall economy Here is why
The decline in home prices that began in 2007 was highly concentrated among households with very limited financial resources As a result these now much-poorer households dramatically pulled back on spending and in the process unwittingly helped usher in the Great Recession Remember retail spending is about a quarter of GDP so a decline of 8 over two years reduces GDP by 2 -- a huge amount It is as if these poorer households were the transmission mechanism through which the Great Recession got its energy
Exacerbating and reinforcing this downward spiral was the role of debt or leverage Remember by 2004 or 2005 a large percentage of first-time home buyers had low FICO scores sketchy employment histories
and limited assets To compensate these Alt-A and subprime buyers borrowed heavily with their now highly levered house being their major financial asset For example among the poorest quintile of the population 80 of their net worth is in their house Even among the middle quintile home equity is still 60 of their net worth By borrowing so much just a small decline in house prices could put these buyers upside down and wipe them out Which is exactly what happened and is what turned a recession into the Great Recession Between 2007 and 2010 the bottom 20 of the population saw their net worth fall from about $30000 to zero
By contrast the financial losses sustained during the dot-com bubble were essentially walled off and had relatively little effect on the overall economy This is because stock ownership is concentrated among the wealthy As the wealthy have less debt and more assets they could essentially shrug off the much larger financial losses they sustained yet not have them alter their day-to-day spending decisions Among the wealthiest 20 of the population home equity represents just 25 of their net worth Moreover depression-era federal laws make it hard to borrow more than 50 of the cost of stock purchases thereby limiting the potentially negative role of leverage
In short the home buyers who bought in 2004 and 2005 had limited wealth and had more of it at risk than earlier home buyers When the music stopped they were highly levered and wholly unable to protect themselves That quickly resulted in (among other things) reduced spending which shrank GDP and quickly cascaded into the Great Recession
+++++++++++++++++
All Bubbles Are Not ++++++++++Created Equal + + + + + + + + + + + + + + + + +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
WwwRochesterAreaBuilderscomSeptember 2014 | 23
NONE
MEMBERSHIPS PENDINGNONE
The firms listed below have applied for membership in Rochester Area Builders Inc
MEMBERSHIP TOTAL 451RETENTION RATE 929
As of 63014
WE WELCOME THE FOLLOWING NEW MEMBERS IN AUGUST
Membership InformationMembership Renewals as of 73114
Two to Four Years
Kraus-Anderson Construction Company 2012Electrical Solutions amp Service 2011Energy Panel Structures 2011Lowersquos Home Improvement 2011Minnwest Bank 2011RCTC Carpentry Program 2011Reynolds Design and Construction 2010
Five to Nine Years
Great River Overhead Door 2007Meadow Lakes Builders 2007Rochester International Event Center 2007The Urban Studio LLC 2007Hunt Electric Corporation 2006Otis Custom Homes LLC 2006Larry Newman Drywall 2005Pahl amp Kaye Inc 2005Synergy Products 2005Tradesmen International Inc 2005
Ten to 19 Years
Greg Wellik Construction 2004Morris Concrete Inc 2004AampA Electric amp Underground Inc 2003Advanced Disposal 2002Knutson Construction Services 2002Tagrsquos Drywall Inc 2001Ronningen Roofing Inc 2000Ferguson Enterprises 1998
20 to 24 Years
Bright Ideas 1993Hirshfieldrsquos Decorating Center 1993Brock White Company 1991Dan Severson Builders Inc 1991
25 Years amp More
Gerhards 1988Express Employment Professionals 1985Townsquare Media Rochester 1983Smith Schafer amp Associates Ltd 1982Hayfield Window amp Door Company 1981Quality Overhead Door Company Inc 1981Energy Products amp Design Inc 1980Tom Brogan Heating amp Air Conditioning 1980Alvin E Benike Inc 1979Pella Windows amp Doors 1978Northern Lights amp Furnishings 1976Wells Fargo Home Mortgage 1964Alexander amp Sons Builders 1962
NEW APPLICANTS
CLIFTONLARSONALLEN LLP7389 Airport View Drive SW Suite 100
Rochester MN 55902Phone 507-280-2300Contact Paul Alberts
Associate MemberAccountingConsulting
Sponsored by Joel Alberts AampA Electric amp Underground Inc
DISTINGUISHED HOMES BY MITCH HAGEN LLC3015 18th Avenue SWRochester MN 55902Phone 507- 951-1962Contact Mitch Hagen
Builder MemberResidential Builder amp Remodeler
Sponsored by Brandon Vagt XRG Concepts LLC
LOW VOLTAGE CONTRACTORS
4200 West 76th StreetMinneapolis MN 55435
Phone 952-835-4600Contact Cathy Trast
Associate MemberFire amp Life Safety Integrated Systems Service Provider
Sponsored by John Eckerman The Boldt Company
PACE INTERNATIONAL 3582 Technology Drive NW
Rochester MN 55901Phone 507-424-4900Contact Jim WestraAssociate Member
Commercial Satellite amp Cable Television ProductsSponsored by Jay Burke Heartwood Homes of Rochester Inc
wwwRochesterAreaBuilderscom24 | September 2014
Put your membershipto work nowMoney-saving discounts that benefit yourbusiness your employees and your family
wwwnahborgMA
National Association of Home Builders
R
wwwRochesterAreaBuilderscom6 | September 2014
What Green Building Expomdashan event for the
public
When Saturday Oct 25th -or- Nov 1st
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
Please reply with your registraon and payment by October 3rd
Signature Event Sponsors
NEW DATE DEADLINE EXTENDEDEXHIBITORS NEEDEDNEW DATE DEADLINE EXTENDEDEXHIBITORS NEEDED
C
M
Y
CM
MY
CY
CMY
K
RFPpdf 8212014 112647 AM
WwwRochesterAreaBuilderscomSeptember 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
Green Building Expo Registraon Form
Register by October 3rd 2014 by emailing a
scanned version of this form to
MahewLRochesterAreaBuilderscom
or by faxing it to Rochester Area Builders at
507-280-6351 If you would like to mail in the
form please mail it to
Rochester Area Builders Inc
108 Elton Hills Ln NW
Rochester MN 55901
C
M
Y
CM
MY
CY
CMY
K
RFP - Registrationpdf 8212014 114006 AM
wwwRochesterAreaBuilderscom8 | September 2014
July Networking NightAssociation Scrapbook
Thank you to all who attended Membership Appreciation Night at the Rochester Area Buildersrsquo office on July 29 Thank you Home Federal for sponsoring the
beverages and Home Improvement Professionals for the tents We would like to thank everybody for supporting BAM-PAC by participating in the wine amp beer tasting We raised over $300 for PAC If you would like to purchase a wine glass or beer flight glass (with the RAB logo) there are a few left at $5 each Sorry at this point the glasses are empty
GIVE AWAYSCharlie Brown PC Applications won a gift card to the Hubble House from RAB and the proverbial bad penny Rick Dold Godwin Law Office won ldquoDinner on Usrdquo from the Post Bulletin
Thank You
WwwRochesterAreaBuilderscomSeptember 2014 | 9
Association ScrapbookMember Appreciation Night
APPRECIATION
wwwRochesterAreaBuilderscom10 | September 2014
DATES AND TIMES FOR THE 2014 FALL SHOWCASE OF HOMESFriday Sept 12 Signs to be Picked Up 800 AM ndash 400 PMSaturday Sept 13 Entries Open to Public 1100 AM ndash 500 PMSunday Sept 14 Entries Open to Public 1100 AM ndash 500 PMSaturday Sept 20 Entries Open to Public 1100 AM ndash 500 PMSunday Sept 21 Entries Open to Public 1100 AM ndash 500 PMMonday Sept 22 Signs to be Returned 800 AM ndash 500 PM
1 Med City Builders of Rochester LLC60766 254th Avenue MantorvilleHome
2 Somerby Golf Community943 Somerby Parkway NE ByronDevelopment
3 Summit Custom Homes LLC943 Somerby Parkway NE ByronHome
4 Bigelow Homes LLC488 15th Ave NE ByronHome
5 Countryside Builders LLC1548 Wickford Place NE ByronHome
6 Derby Construction LLC6341 Oak Meadow Lane NWHome
7 Wright Homes Inc5897 Dogwood CourtTownhome
8 Thimijan Custom Homes LLC2326 Granite Circle NWHome
9 JNS Builders2583 Flagstone Lane NWHome
10 Cravath Homes LLC6878 Larkspur ParkwayHome
11 Bigelow amp Lennon Construction6320 Mallard Drive NWHome
12 Bigelow Homes LLC5542 Harvest Lake Drive NWHome
13 DeWitz Home Builders6221 51st Street NWHome
14 Majestic Homes Inc4818 Bishop Lane NWHome
15 Exclusive Home Builders amp Remodelers3609 46th Avenue NWHome
16 MDH Inc ndash Orchard Hills Builders626 Gates Lane SWHome
17 MDH Inc ndash Fox Hill Builders1031 Fox Valley Place SWHome
18 Meadow Lakes Builders3890 Berkshire Road SWHome
19 High Definition Homes LLC1291 Boulder Creek Lane SWHome
20 Craig Swanson Builders Inc2710 Headland Court SWHome
21 Distinguished Homes by Mitch Hagen 3550 Woodstone Drive SWHome
22 Penz Custom Homes Inc3622 Triton Lane SWHome
23 Chris Fritsch Custom Homes LLC3915 Creek View Lane SWHome
24 Thimijan Custom Homes LLC5380 Scenic View Drive SWHome
25 RJ Manemann Custom Homes5406 Scenic View Drive SWHome
26 R amp M Development5448 Scenic View Drive SWHome
ShowcaseofFallFall
SHOWCASE ENTRIES
Sponsored By
WwwRochesterAreaBuilderscomSeptember 2014 | 11
DATES AND TIMES FOR THE 2014 REMODELERS TOURFriday Sept 12 Signs to be Picked Up 800 AM ndash 400 PMSaturday Sept 13 Entries Open to Public 1100 AM ndash 500 PMSunday Sept 14 Entries Open to Public 1100 AM ndash 500 PMMonday Sept 15 Signs to be Returned 800 AM ndash 500 PM
27 Stonebridge Builders5393 Scenic View Drive SWHome
28 Bigelow Homes LLC5530 Leslie Lane SWHome
29 Bigelow Homes LLC2811 Talon Place SETownhome Community
30 R Fleming Construction Inc2529 Tee Time Road SEHome
31 Centurion Ridge LLCCenturion Court NETownhome Community
32 Maplewood Homes LLC1819 Shannon Oaks Blvd NEHome
33 Countryside Builders LLC2348 Coral Ridge Place NETownhome Community
34 Countryside Builders LLC3669 Cameo LaneHome
35 Countryside Builders LLC3519 Jasper Court NEHome
36 Penz Custom Homes Inc3897 Cameo Place NEHome
37 Otis Custom Homes LLC1716 Stone Crest Dr NEHome
38 Majestic Homes Inc3950 Cedarwood Road NEHome
39 Custom Homes by Bradley Inc4053 Stone Point Drive NEHome
40 Chris Fritsch Custom Homes LLC844 Zumbro Woods Lane NW OronocoHome
1 Reynolds Design amp Construction
4905 Oaklawn Lane NWKitchen
2 Master Builders Inc4242 Arboretum Drive NW
Four Season Addition
3 Elias Construction LLC913 3rd Street NW Byron
Whole House Remodel
4 Design Studio B835 Fox Pointe Lane SW
Kitchen
5 Beyond Kitchens LLC923 10th Street SW
Kitchen
6 Chladek
Construction LLC245 1st Street NW Elgin
Exterior Remodel amp Addition
SHOWCASE ENTRIES
Sponsored By
RemodelersRemodelers
TOUR ENTRIES
ADMISSION IS FREE
wwwRochesterAreaBuilderscom12 | September 2014
PROJECT KITCHEN AND BATHROOM REMODEL CONTRACTOR BEYOND KITCHENS LLCHOST KATIE DARVAL PROJECT COORDINATORDESIGNER
REMODELING A HOME IS A UNIQUE AND MULTIFACETED CHALLENGE IT TAKES A SPECIAL KIND OF VISION TO LOOK PAST WHAT A ROOM HAS BEEN AND SEE WHAT IT COULD BE IT TAKES A SPECIAL KIND OF DETERMINATION TO OVERCOME THE OBSTACLES THAT ALWAYS COME WHEN YOUrsquoRE TRYING TO FIT SOMETHING NEW INTO A SPACE THAT WAS NOT ORIGINALLY DESIGNED FOR IT AND IT TAKES A SPECIAL KIND OF PERSONALITY TO MAKE A HOMEOWNER FEEL COMFORTABLE WITH YOU ESSENTIALLY MOVING IN AND TURNING THEIR LIVING SPACE INTO YOUR WORK PLACE
Beyond Kitchens LLC has been making those challenges their business for almost 20 years This talented team of women is composed of owner Diane Quinn CKD Christina Jorgensen AKBD and Katie Darval their project coordinator who was kind enough to give me access to the project and answer my questions about it The project inside a lovely home in Southwest Rochester with a striking red door that demands attention and welcomes you inside was about more than just a new look
for the homeowners Work responsibilities for one of the couple mean clocking in from home at all hours of the night to make calls to overseas contacts making storage for a home office very important But the clients also wanted an uncluttered look and for the overall feel of refinement and elegance to remain unspoiled So these workday necessities were given space in cabinetry adjoining the dining room complete with in-drawer outlets and USB ports so that all of their phones tablets and laptops can be tucked away out of site while not in use
To further the goal of uninterrupted elegance Beyond Kitchens went the extra mile by acquiring custom outlet and switch covers made of real stone As Katie
WwwRochesterAreaBuilderscomSeptember 2014 | 13
says ldquothe backsplash and lighting are the jewelry to the roomrdquo Using these stone covers means that the outlets and switches wonrsquot be the first thing you notice when you enter the room While they are beautifully made their real purpose is not to stand out but to blend in and to let the overall beauty of the room shine without distraction Itrsquos their attention to small details like this that truly show Beyond Kitchensrsquo ability to create a room that not only wows you on first sight but also ensures the homeowners will be happy with the project years down the road
Of course working with the homeowners and what they bring to the table is crucial When you are building a new home you can design a kitchen pick the cabinets you like best and then choose the flooring and appliances that best accent it Remodeling is rarely that simple In this case the kitchen already had beautiful hardwood floors that only needed to be restored The homeowners had also recently purchased black appliances so those needed to be allowed for in the design as well Katie says they decided to use off white cabinets in most of the kitchen to create a more spacious feel while incorporating the
black appliances with a wall of dark wood cabinetry They also enhanced the feeling of spaciousness by extending the tile backsplash all the way up to the ceiling above the range Creating space whether through i l lus ion or through creative hidden storage is often a necessity in older homes
Another necessity in older homes is dealing with those unpredictable obstacles you encounter I say unpredictable because you never know what theyrsquore going to be but you can always predict that yoursquoll run into some And the most common time for obstacles to show up is during demolition Exhibit A the Soffits As Katie notes sometimes soffits are included purely as a cosmetic feature Other times they are utilized to as a space for plumbing or electrical runs The vision for this project included removing the soffits and having the upper cabinets extend all the way to the ceiling (yet another trick to add a feeling of spacious grandeur
to the room) So of course f o l l o w i n g Murphyrsquos law these soffits c o n t a i n e d p i p i n g a n d drains from
an upstairs bathroom meaning some significant reworking of those pipes and drains had to be done to achieve their goal In the end though it was wort the trouble Oh the joys of remodeling
wwwRochesterAreaBuilderscom14 | September 2014
With all of the difficulty inherent in a remodeling project it might seem like a miracle that the contractor and the homeowner are still on speaking terms by the end of it Even if everything goes smoothly you are still interrupting the daily routine of someone for weeks or months on end But having had a chance to chat with the homeowner on my last visit after the project was complete I can report that miracles can indeed happen She had nothing but praise for Katie the team at Beyond Kitchens and all their subcontractors I too think the project was beautifully done and Irsquom happy to have been invited into their home
If yoursquod like to see more of Beyond Kitchens LLCrsquos work you can check out their website at wwwbeyondkitchenscom and make plans to visit their Remodelers Tour project located at 923 10th St SW on September 13th and 14th
Other RAB members who worked on this project include
bull Brandrup Builders
bull Bright Ideas
bull Creative Hardwood Floors
bull DeGeus Tile amp Granite
bull Ferguson Enterprises
bull Innovative Surfaces
bull Larry Newman Drywall
bull Kuntz Electric Inc
bull Top Shop of Rochester Inc
WwwRochesterAreaBuilderscomSeptember 2014 | 15
ldquoHey Matt what can you tell me about the current crop of local candidatesrdquo
Itrsquos August That means that summer is coming to a close department stores have had their ldquoback-to-schoolrdquo sections of their stores open for 6 weeks and election season is just ramping up This year we have a variety of elections taking place in Rochester Mayor City Council School Board Senator Governor US House of Representatives and State Auditor just to name a few In this monthrsquos edition of HMWUWT I will attempt to give you a little background on each of these races
MAYOR
This race was a little more crowded just a couple days ago There were three candidates Mayor Brede Cindy Maves and Stephanie Kilen On August 12 during the primary election Mayor Brede and Cindy Maves were the top two vote getters and will proceed to the General Election in November Brede received 4757 votes Maves 2473 and Kilen 1926 Look for the big issue in this election to be governmental spending since Maves used to head the Tea Party Patriots in Rochester
CITY COUNCIL WARD 3
This was another race that whittled down to two candidates during the primary Incumbent Bruce Snyder received 375 votes Vickie Anderson 188 and Nick Campion 564 Campion and Snyder both advance to the general election Ward 3 is generally considered to be NW Rochester so make sure to check which ward you live in
SCHOOL BOARD SEAT 5
Jean Marvin advanced out of the primary with 40 of the vote Terry Throndson received 33 of the vote to also advance Nora Dooley with 20 and Matthew Halleck with 7 both failed to advance to the general election
SENATOR
Senator Al Franken won his primary not surprisingly to advance as the Democratic candidate in the general election Also not surprisingly Mike McFadden won the Republican ticket and will challenge Franken in November
GOVERNOR
Jeff Johnson won the Republican primary to challenge Governor Mark Dayton in November Both candidates have ties to Rochester Jeff Johnsonrsquos running mate is former Rochester law-maker Bill Kuisle Mark Daytonrsquos running mate Tina Flint Smith is currently the chair of the Destination Medical Center Corporation
US House of Representatives District 1
Blue Earth businessman Jim Hagedorn pulled off the upset of the primary when he defeated the Republican party-endorsed candidate Aaron Miller Hagedorn will challenge the incumbent Democrat Tim Walz in November
STATE AUDITOR
I know what you are thinking why do we care about the State Auditor race and what does the State Auditor do Well the State Auditor is charged with overseeing more than $20 billion spent annually by local governments in Minnesota The State Auditor does this by performing audits of local government financial statements and by reviewing documents data reports and complaints reported to the Office The reason this race is interesting to me is because of the politicking that took place before the primary Democrat Matt Entenza bypassed the DFL convention and filed to run after the incumbent Rebecca Otto received support from the DFL party Otto defeated Entenza by a 80-20 margin Otto will face Republican Randy Gilbert in November amongst a slate of other candidates
LEARN MORE
As always Rochester Area Builders will be holding our candidate social on September 30 Make sure to come on down to mingle with the candidates and pick their brains about issues that important to you If you have any questions about the upcoming elections or anything at all feel free to email me or give me a call at the office Thanks
Matt
wwwRochesterAreaBuilderscom16 | September 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 August 2014
President Chad Kompelein
Builder VPKC Chermak
Associate VPGeorge Cundy
President ElectMike Paradise
TreasurerGerry Traut
SecretaryKurt Welker
Past PresidentKeith Kylmala
NAHB RepresentativeKathe Ostrom
Theyrsquore HereThe new codes are (finally) out Following a mutli-year process to promulgate the 2012 International Building Code the Minnesota Department of Labor and Industry (DLI) has officially published the final language for the Minnesota Building Code With the final language in hand the Builders Association of Minnesota (BAM) is adjusting and completing seven code guide documents that will be provided to members-only in September The code is slated to be enforced starting January 24 2015
Membership with the builders association is the only way to obtain a copy of these documents and as such BAM will be promoting the code guides ndash and membership ndash to all 13000 licensed contractors If interested in promoting your company statewide these code guides still have sponsorships available More at wwwbamnorgsponsorship-opps Contact Remi Stone at remibamnorg or Katherine Nielsen at katherinenbamnorg with any questions
Creating the code documents is codes expert Ed VonThoma his company Building Knowledge Inc (BKI) and a committee including 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 Thank you to these members for generously donating their time to help perfect the members-only guides
The seven code guide documents are
bull Top 20 Code Changes in the Residential Building Code
bull Top 20 Code Changes in the Energy Code
bull 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
A major benefit of membership these guides are available ONLY to members DLI issues the codes but BAM develops guides on how to implement the new codes The documents will be sent to members and made available on the BAM website optimized for both printing and easy viewing on your mobile devices out in the field
Continuing education courses based on these code guides have been assembled by BKI who is available to teach classes around the state to help members prepare to build to the new code Let your local association know if yoursquod like BKI to teach in your community
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 building industry specific construction contracts More benefits of BAM membership can be found online at wwwbamnorgmembership
WwwRochesterAreaBuilderscomSeptember 2014 | 17
Committee UpdatesAWARDS COMMITTEECHAIRPERSON Les Radcliffe Radcliffe Homes amp Remodeling
This committee is currently meeting to look for ldquospecialrdquo members to recognize for their achievements to the Association in 2014 They will choose a Rising Star - a member who has been very active in their first three years of membership as well as nominating builders and associates to receive the Builder amp Associate of the Year Award and for the company who has supported the association The Cornerstone Award In this monthrsquos newsletter you have the opportunity to nominate someone whom you have noticed working extra hard for RAB Please download the Form fill it out and return it to the RAB office
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 2014Jennifer Maass GerhardsMARKETINGRob 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
ROCHESTER AREA BUILDERS INCASKS YOU TO MAKE NOMINATIONS FOR THE
THESE MEMBERS MUST BE DEDICATED TO THE BUILDING INDUSTRY ACTIVE PARTICIPANTS OF THE ASSOCIATION
ENTHUSIASTIC
The recipients of these three awards will be chosen by the Board of Directors at their December meeting and will be awarded at the January General Membership Meeting
Previous Winners - Builders1992 Robert Gill and Richard Hanson and Joe Weis 1993 Frank Kottschade 1994 Roger Lubahn 1995 Jay Burke 1996 Dan Severson 1997 Les Radcliffe 1998 Bob DeWitz and Mark Stinson 1999 David Higgins 2000 Jackie Hanson 2001 Aaron Benike 2002 Gary Zander 2003 John McGuine 2004 Mike Coats 2005 Steve Buss 2006 Mike Hortop 2007 Jodi Hruska 2008 Jay Burke 2009 Kevin Reckinger 2010 Paul Gregor 2011 Mike Larson 2012 Kathy Einck 2013 Les Radcliffe
Previous Winners - Associates1985 Don Soderberg 1987 Robert Suk 1988 Jim Buchan 1989 Mary Moylan 1990 Craig Wendland 1991 Ron Bailey 1992 Bill Tointon 1993 Wayne Lewis 1994 Donna Scott Herriot 1995 Julie Timmerman 1996 John Arnold 1997 Steve Christopherson 1998 Brent Buchan 1999 Kim Zimmer 2000 Julie Praus 2001 Karin Buechler 2002 Dennis Hanson 2003 Carla Kilpatrick 2004 Brent Buchan 2005 Jim Gander 2006 Brian Carlson 2007 John Eischen 2008 Wayne Eisen 2009 Jennifer Maass 2010 Tony Joseph 2011 Patty Hanson 2012 David Kane 2013 Jennifer Maass
Previous Winners - Company 2009 Energy Products amp Design 2010 Knutson Construction 2011 Minnesota Energy Resources 2012 Wendland Utz 2013 Home Federal Savings Bank
Current President and Vice-President are not eligible for selection
I Nominate
Reasons for Nomination
I Nominate
Reasons for Nomination
I Nominate
CLICK HERETO DOWNLOAD
wwwRochesterAreaBuilderscom18 | September 2014
construction fashion expose
c o n s t r u c t i o n f a s h i o n e x p o s e
WwwRochesterAreaBuilderscomSeptember 2014 | 19
Members2014 Commercial Builders Council116 Members as of 63014AB Systems IncAccord Electric IncAdvanced DisposalAlpha Video amp AudioAlvin E Benike IncBEVCOMMThe Blue Book
of Building amp Construction
The Boldt CompanyBraun Intertec
CorporationBriese Iron Works IncBrock White CompanyCO Brown AgencyCambriaCarpet OneCharter
CommunicationsMedia
Chosen Valley Testing Inc
Clayton Thomas Blinds of Rochester
Construction Partnership
CRW architecture + design group inc
Custom AlarmCustom Communications Inc
D2E LLCDonlar Construction
CompanyDoyle Conner CompanyDunham Associates
IncDunlap amp SeegerJE Dunn ConstructionEastwood Bankeci llcElcor Construction IncEnergy Products amp
Design IncEnventisExpert Insulation IncFat Willyrsquos Bar amp GrillFerguson EnterprisesGerhardsGoodin CompanyHaley Comfort Systems
(Authorized FireSide Dealer)
WL Hall CompanyHDR ArchitectureHeartman InsuranceHGA Architects and
EngineersHillerrsquos Flooring AmericaHiMEC at HomeHome Federal Savings
BankHome Improvement
Professionals IncHunt Electric
CorporationInstitute for
Environmental Assessment
PA Johnson Construction LLC
KampM Glass CompanyKane amp Johnson
Architects IncKey Builders IncKnutson Construction
ServicesKomitt Concrete IncKraus-Anderson
Construction CompanyKreofsky Building
SuppliesKruse LumberKuntz Electric Inc
Kwik Trip IncLeitzen Concrete
Products IncMarvin Windows amp
DoorsMavo Systems IncMcGhie amp Betts - a
Division of WSB amp Associates Inc
McGough ConstructionMEC Construction IncMEP AssociatesMerchants BankMerit Contracting IncMidwest Walls LLCMinnesota Energy
Resources CorporationMinnwest BankNickelson Painting IncNorth Star Stone amp
MasonryOlmsted National BankOn Site CompaniesPalmer Soderberg IncPella Windows amp DoorsPeoplersquos Energy
CooperativePompeii Painting IncPrehn Building Sales
IncPremier Bank RochesterProBuild Company LLCReliable Contractors
IncRochester Area
Appraisals LLCRochester Area Econ
Development IncRochester Public
UtilitiesRochester Ready Mix
Concrete CoRochester Sign Service
IncRochester Title amp
Escrow Company IncRSP ArchitectsRyan Electric IncSchoeppner IncSchwab LLCSchwickertrsquos Tecta
America LLCSEH YaggyStantecSterling State BankStructural Design
Group IncSuperior MechanicalTamarack Materials of
Rochester IncThink Mutual BankTonna Mechanical IncTSP Architects amp
EngineersUnited RentalsThe Urban Studio LLCValor Mechanical IncVeit CompaniesVertical Limit
ConstructionViking Automatic
Sprinkler CompanyViking Electric SupplyWeis Builders IncWells Fargo Bank
Minnesota NAWendland UtzWest BankWHKS amp CompanyWHV IncWidseth Smith Nolting
BUILDERS COUNCILCOMMERCIAL
a d i v i s i o n o f R o c h e s t e r A r e a B u i l d e r s I n c
EXECUTIVE COMMITTEEChairperson Chris Terry Knutson Construction ServicesVice Chairperson Nick Leimer Kraus-Anderson Construction CompanyPast Chairperson Sue Hanson Rochester Title amp Escrow Company IncMembers-at-LargeJohn Hill Schwab LLCShaun Knode AB Systems IncJohn Kuntz Kuntz Electric IncLevi Kaiser AE Benike IncMatt Mohs WHKS amp CompanyMike Nordstrom Superior Mechanical
August Meeting Photos
New Member
Clayton Thomas Blinds of RochesterDarlene Drew
2400 Country Club Rd SWRochester MN 55902
507-258-4457
August MEETINGDATE Wednesday August 6th 2014TIME Registration amp Networking at 700 AM Program at 730 AMPLACE Ramada Hotel amp Conference CenterPROGRAM World Fair 2023SPEAKERS Mark Ritchie Minnesota Secretary of State
wwwRochesterAreaBuilderscom20 | September 2014
2014 VALUATION 2013 VALUATION
New Residential Single Family Dwelling 30 7389265 39 9441463
Townhome Dwelling 8 1224172 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 45 283519 33 160271
Room Addition 3 85012 4 177306
Porch Additions 1 8000 2 39494
Other Additions 4 38500 2 23940
Basement Finish 18 240045 24 323650
Alterations 41 234327 45 281947
Multi-Family Addition 0 0 4 31620
Multi-Family Alterations 14 151160 6 4615400 New Commercial Assembly (Church) 0 0 0 0
Assembly (General) 0 0 1 2720000
Assembly (RestaurantBar) 0 0 0 0
Business 0 0 0 0
Education 0 0 0 0
FactoryIndustrial 0 0 0 0
Institution 0 0 0 0
Mercantile 0 0 1 580000
Miscelaneous 0 0 0 0
Utility (General) 0 0 1 90000
Residential (CareAssisted Living) 0 0 0 0
Storage (General) 0 0 0 0
Storage (Warehouse) 0 0 0 0 Existing CommercialAddition 3 4313000 2 1214050
Alterations 25 4451261 40 6158997
Structural Shell 0 0 0 0
ldquoWhite Boxrdquo 0 0 0 0
Interior Demolition Only 2 2017000 3 54800
Other Phased Permits 1 6700 0 0
Other ConstructionBusiness Signs 4 10630 12 87202
Advertising Sign 0 0 0 0
Footings amp Foundations 1 76000 1 1100000
Demolition 0 1
Rochester Building Permits July 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
June 81 59 43 36 36 12 26 32 33 41
July 58 36 60 23 21 23 8 39 39 38
TOTAL 397 329 275 178 139 128 102 180 201 192
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 702 506 417 302 274 200 191 299 326 192
Single Family Homes
Year To Date Statistics 2014 2013 NO VALUATION NO VALUATION
Building Permits Issued to Date 1377 199056393 1280 149430856
Single Family Dwelling 186 45041027 201 47362534
Multi-Family Buildings Total Units 39 1 3702052 0 0
Trade Permits Issued to Date 4558 46616612 4145 40187782
Electrical 1573 20801155 1355 18804490
Electrical (Temp Service) 159 46875 188 39500
Mechanical 1187 12309661 1078 10781042
Gas Piping 317 546576 286 263280
Fireplace 237 629268 215 506084
Hydronic System 94 4005425 69 3097653
Plumbing 991 8277652 954 6695793
Total Permits YTD 5935 245673005 5425 189618638
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
WwwRochesterAreaBuilderscomSeptember 2014 | 21
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
JUNE 2014
New Residential NUMBER VALUATION
Single Family 9 1991399
Commercial
Addition 1 89470
Existing Residential
Deck Addition 7 41847
Basement Finish 1 12000
Garage 1 2267
Accessory Building 2 11500
ByronBuilding Permits
JULY 2014
Existing Residential NUMBER VALUATION
Sprinkler System 1 5000
Residing 1 5000
Reroof 5 25000
Deck 2 6000
Mechanical 1 1000
Garage 1 20000
Pine IslandBuilding Permits
wwwRochesterAreaBuilderscom22 | September 2014
In early 2000 the SampP 500 hit 1553 and the tech-heavy NASDAQ surpassed 5000 Two years later the SampP was at 768 and the NASDAQ was at 800 In the process $6 trillion in household wealth was wiped out We now call that period the dot-com bubble About half a decade later we experienced the housing market bubble Interestingly the value of residential real estate destroyed during that crisis was also about $6 trillion Yet the dot-com bubble resulted in a mild recession while the housing bust lead to the Great Recession What was different It turns a major culprit was which households suffered the destruction of wealth
To set the table ponder this During the housing bust retail spending fell 8 from 2007 to 2009 one the largest drops ever By contrast retail spending increased by 5 between 2000 and 2002 Clearly the losses sustained during the dot-com bust had minimal impacts on household spending decisions and thus on the overall economy Here is why
The decline in home prices that began in 2007 was highly concentrated among households with very limited financial resources As a result these now much-poorer households dramatically pulled back on spending and in the process unwittingly helped usher in the Great Recession Remember retail spending is about a quarter of GDP so a decline of 8 over two years reduces GDP by 2 -- a huge amount It is as if these poorer households were the transmission mechanism through which the Great Recession got its energy
Exacerbating and reinforcing this downward spiral was the role of debt or leverage Remember by 2004 or 2005 a large percentage of first-time home buyers had low FICO scores sketchy employment histories
and limited assets To compensate these Alt-A and subprime buyers borrowed heavily with their now highly levered house being their major financial asset For example among the poorest quintile of the population 80 of their net worth is in their house Even among the middle quintile home equity is still 60 of their net worth By borrowing so much just a small decline in house prices could put these buyers upside down and wipe them out Which is exactly what happened and is what turned a recession into the Great Recession Between 2007 and 2010 the bottom 20 of the population saw their net worth fall from about $30000 to zero
By contrast the financial losses sustained during the dot-com bubble were essentially walled off and had relatively little effect on the overall economy This is because stock ownership is concentrated among the wealthy As the wealthy have less debt and more assets they could essentially shrug off the much larger financial losses they sustained yet not have them alter their day-to-day spending decisions Among the wealthiest 20 of the population home equity represents just 25 of their net worth Moreover depression-era federal laws make it hard to borrow more than 50 of the cost of stock purchases thereby limiting the potentially negative role of leverage
In short the home buyers who bought in 2004 and 2005 had limited wealth and had more of it at risk than earlier home buyers When the music stopped they were highly levered and wholly unable to protect themselves That quickly resulted in (among other things) reduced spending which shrank GDP and quickly cascaded into the Great Recession
+++++++++++++++++
All Bubbles Are Not ++++++++++Created Equal + + + + + + + + + + + + + + + + +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
WwwRochesterAreaBuilderscomSeptember 2014 | 23
NONE
MEMBERSHIPS PENDINGNONE
The firms listed below have applied for membership in Rochester Area Builders Inc
MEMBERSHIP TOTAL 451RETENTION RATE 929
As of 63014
WE WELCOME THE FOLLOWING NEW MEMBERS IN AUGUST
Membership InformationMembership Renewals as of 73114
Two to Four Years
Kraus-Anderson Construction Company 2012Electrical Solutions amp Service 2011Energy Panel Structures 2011Lowersquos Home Improvement 2011Minnwest Bank 2011RCTC Carpentry Program 2011Reynolds Design and Construction 2010
Five to Nine Years
Great River Overhead Door 2007Meadow Lakes Builders 2007Rochester International Event Center 2007The Urban Studio LLC 2007Hunt Electric Corporation 2006Otis Custom Homes LLC 2006Larry Newman Drywall 2005Pahl amp Kaye Inc 2005Synergy Products 2005Tradesmen International Inc 2005
Ten to 19 Years
Greg Wellik Construction 2004Morris Concrete Inc 2004AampA Electric amp Underground Inc 2003Advanced Disposal 2002Knutson Construction Services 2002Tagrsquos Drywall Inc 2001Ronningen Roofing Inc 2000Ferguson Enterprises 1998
20 to 24 Years
Bright Ideas 1993Hirshfieldrsquos Decorating Center 1993Brock White Company 1991Dan Severson Builders Inc 1991
25 Years amp More
Gerhards 1988Express Employment Professionals 1985Townsquare Media Rochester 1983Smith Schafer amp Associates Ltd 1982Hayfield Window amp Door Company 1981Quality Overhead Door Company Inc 1981Energy Products amp Design Inc 1980Tom Brogan Heating amp Air Conditioning 1980Alvin E Benike Inc 1979Pella Windows amp Doors 1978Northern Lights amp Furnishings 1976Wells Fargo Home Mortgage 1964Alexander amp Sons Builders 1962
NEW APPLICANTS
CLIFTONLARSONALLEN LLP7389 Airport View Drive SW Suite 100
Rochester MN 55902Phone 507-280-2300Contact Paul Alberts
Associate MemberAccountingConsulting
Sponsored by Joel Alberts AampA Electric amp Underground Inc
DISTINGUISHED HOMES BY MITCH HAGEN LLC3015 18th Avenue SWRochester MN 55902Phone 507- 951-1962Contact Mitch Hagen
Builder MemberResidential Builder amp Remodeler
Sponsored by Brandon Vagt XRG Concepts LLC
LOW VOLTAGE CONTRACTORS
4200 West 76th StreetMinneapolis MN 55435
Phone 952-835-4600Contact Cathy Trast
Associate MemberFire amp Life Safety Integrated Systems Service Provider
Sponsored by John Eckerman The Boldt Company
PACE INTERNATIONAL 3582 Technology Drive NW
Rochester MN 55901Phone 507-424-4900Contact Jim WestraAssociate Member
Commercial Satellite amp Cable Television ProductsSponsored by Jay Burke Heartwood Homes of Rochester Inc
wwwRochesterAreaBuilderscom24 | September 2014
Put your membershipto work nowMoney-saving discounts that benefit yourbusiness your employees and your family
wwwnahborgMA
National Association of Home Builders
R
WwwRochesterAreaBuilderscomSeptember 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
Green Building Expo Registraon Form
Register by October 3rd 2014 by emailing a
scanned version of this form to
MahewLRochesterAreaBuilderscom
or by faxing it to Rochester Area Builders at
507-280-6351 If you would like to mail in the
form please mail it to
Rochester Area Builders Inc
108 Elton Hills Ln NW
Rochester MN 55901
C
M
Y
CM
MY
CY
CMY
K
RFP - Registrationpdf 8212014 114006 AM
wwwRochesterAreaBuilderscom8 | September 2014
July Networking NightAssociation Scrapbook
Thank you to all who attended Membership Appreciation Night at the Rochester Area Buildersrsquo office on July 29 Thank you Home Federal for sponsoring the
beverages and Home Improvement Professionals for the tents We would like to thank everybody for supporting BAM-PAC by participating in the wine amp beer tasting We raised over $300 for PAC If you would like to purchase a wine glass or beer flight glass (with the RAB logo) there are a few left at $5 each Sorry at this point the glasses are empty
GIVE AWAYSCharlie Brown PC Applications won a gift card to the Hubble House from RAB and the proverbial bad penny Rick Dold Godwin Law Office won ldquoDinner on Usrdquo from the Post Bulletin
Thank You
WwwRochesterAreaBuilderscomSeptember 2014 | 9
Association ScrapbookMember Appreciation Night
APPRECIATION
wwwRochesterAreaBuilderscom10 | September 2014
DATES AND TIMES FOR THE 2014 FALL SHOWCASE OF HOMESFriday Sept 12 Signs to be Picked Up 800 AM ndash 400 PMSaturday Sept 13 Entries Open to Public 1100 AM ndash 500 PMSunday Sept 14 Entries Open to Public 1100 AM ndash 500 PMSaturday Sept 20 Entries Open to Public 1100 AM ndash 500 PMSunday Sept 21 Entries Open to Public 1100 AM ndash 500 PMMonday Sept 22 Signs to be Returned 800 AM ndash 500 PM
1 Med City Builders of Rochester LLC60766 254th Avenue MantorvilleHome
2 Somerby Golf Community943 Somerby Parkway NE ByronDevelopment
3 Summit Custom Homes LLC943 Somerby Parkway NE ByronHome
4 Bigelow Homes LLC488 15th Ave NE ByronHome
5 Countryside Builders LLC1548 Wickford Place NE ByronHome
6 Derby Construction LLC6341 Oak Meadow Lane NWHome
7 Wright Homes Inc5897 Dogwood CourtTownhome
8 Thimijan Custom Homes LLC2326 Granite Circle NWHome
9 JNS Builders2583 Flagstone Lane NWHome
10 Cravath Homes LLC6878 Larkspur ParkwayHome
11 Bigelow amp Lennon Construction6320 Mallard Drive NWHome
12 Bigelow Homes LLC5542 Harvest Lake Drive NWHome
13 DeWitz Home Builders6221 51st Street NWHome
14 Majestic Homes Inc4818 Bishop Lane NWHome
15 Exclusive Home Builders amp Remodelers3609 46th Avenue NWHome
16 MDH Inc ndash Orchard Hills Builders626 Gates Lane SWHome
17 MDH Inc ndash Fox Hill Builders1031 Fox Valley Place SWHome
18 Meadow Lakes Builders3890 Berkshire Road SWHome
19 High Definition Homes LLC1291 Boulder Creek Lane SWHome
20 Craig Swanson Builders Inc2710 Headland Court SWHome
21 Distinguished Homes by Mitch Hagen 3550 Woodstone Drive SWHome
22 Penz Custom Homes Inc3622 Triton Lane SWHome
23 Chris Fritsch Custom Homes LLC3915 Creek View Lane SWHome
24 Thimijan Custom Homes LLC5380 Scenic View Drive SWHome
25 RJ Manemann Custom Homes5406 Scenic View Drive SWHome
26 R amp M Development5448 Scenic View Drive SWHome
ShowcaseofFallFall
SHOWCASE ENTRIES
Sponsored By
WwwRochesterAreaBuilderscomSeptember 2014 | 11
DATES AND TIMES FOR THE 2014 REMODELERS TOURFriday Sept 12 Signs to be Picked Up 800 AM ndash 400 PMSaturday Sept 13 Entries Open to Public 1100 AM ndash 500 PMSunday Sept 14 Entries Open to Public 1100 AM ndash 500 PMMonday Sept 15 Signs to be Returned 800 AM ndash 500 PM
27 Stonebridge Builders5393 Scenic View Drive SWHome
28 Bigelow Homes LLC5530 Leslie Lane SWHome
29 Bigelow Homes LLC2811 Talon Place SETownhome Community
30 R Fleming Construction Inc2529 Tee Time Road SEHome
31 Centurion Ridge LLCCenturion Court NETownhome Community
32 Maplewood Homes LLC1819 Shannon Oaks Blvd NEHome
33 Countryside Builders LLC2348 Coral Ridge Place NETownhome Community
34 Countryside Builders LLC3669 Cameo LaneHome
35 Countryside Builders LLC3519 Jasper Court NEHome
36 Penz Custom Homes Inc3897 Cameo Place NEHome
37 Otis Custom Homes LLC1716 Stone Crest Dr NEHome
38 Majestic Homes Inc3950 Cedarwood Road NEHome
39 Custom Homes by Bradley Inc4053 Stone Point Drive NEHome
40 Chris Fritsch Custom Homes LLC844 Zumbro Woods Lane NW OronocoHome
1 Reynolds Design amp Construction
4905 Oaklawn Lane NWKitchen
2 Master Builders Inc4242 Arboretum Drive NW
Four Season Addition
3 Elias Construction LLC913 3rd Street NW Byron
Whole House Remodel
4 Design Studio B835 Fox Pointe Lane SW
Kitchen
5 Beyond Kitchens LLC923 10th Street SW
Kitchen
6 Chladek
Construction LLC245 1st Street NW Elgin
Exterior Remodel amp Addition
SHOWCASE ENTRIES
Sponsored By
RemodelersRemodelers
TOUR ENTRIES
ADMISSION IS FREE
wwwRochesterAreaBuilderscom12 | September 2014
PROJECT KITCHEN AND BATHROOM REMODEL CONTRACTOR BEYOND KITCHENS LLCHOST KATIE DARVAL PROJECT COORDINATORDESIGNER
REMODELING A HOME IS A UNIQUE AND MULTIFACETED CHALLENGE IT TAKES A SPECIAL KIND OF VISION TO LOOK PAST WHAT A ROOM HAS BEEN AND SEE WHAT IT COULD BE IT TAKES A SPECIAL KIND OF DETERMINATION TO OVERCOME THE OBSTACLES THAT ALWAYS COME WHEN YOUrsquoRE TRYING TO FIT SOMETHING NEW INTO A SPACE THAT WAS NOT ORIGINALLY DESIGNED FOR IT AND IT TAKES A SPECIAL KIND OF PERSONALITY TO MAKE A HOMEOWNER FEEL COMFORTABLE WITH YOU ESSENTIALLY MOVING IN AND TURNING THEIR LIVING SPACE INTO YOUR WORK PLACE
Beyond Kitchens LLC has been making those challenges their business for almost 20 years This talented team of women is composed of owner Diane Quinn CKD Christina Jorgensen AKBD and Katie Darval their project coordinator who was kind enough to give me access to the project and answer my questions about it The project inside a lovely home in Southwest Rochester with a striking red door that demands attention and welcomes you inside was about more than just a new look
for the homeowners Work responsibilities for one of the couple mean clocking in from home at all hours of the night to make calls to overseas contacts making storage for a home office very important But the clients also wanted an uncluttered look and for the overall feel of refinement and elegance to remain unspoiled So these workday necessities were given space in cabinetry adjoining the dining room complete with in-drawer outlets and USB ports so that all of their phones tablets and laptops can be tucked away out of site while not in use
To further the goal of uninterrupted elegance Beyond Kitchens went the extra mile by acquiring custom outlet and switch covers made of real stone As Katie
WwwRochesterAreaBuilderscomSeptember 2014 | 13
says ldquothe backsplash and lighting are the jewelry to the roomrdquo Using these stone covers means that the outlets and switches wonrsquot be the first thing you notice when you enter the room While they are beautifully made their real purpose is not to stand out but to blend in and to let the overall beauty of the room shine without distraction Itrsquos their attention to small details like this that truly show Beyond Kitchensrsquo ability to create a room that not only wows you on first sight but also ensures the homeowners will be happy with the project years down the road
Of course working with the homeowners and what they bring to the table is crucial When you are building a new home you can design a kitchen pick the cabinets you like best and then choose the flooring and appliances that best accent it Remodeling is rarely that simple In this case the kitchen already had beautiful hardwood floors that only needed to be restored The homeowners had also recently purchased black appliances so those needed to be allowed for in the design as well Katie says they decided to use off white cabinets in most of the kitchen to create a more spacious feel while incorporating the
black appliances with a wall of dark wood cabinetry They also enhanced the feeling of spaciousness by extending the tile backsplash all the way up to the ceiling above the range Creating space whether through i l lus ion or through creative hidden storage is often a necessity in older homes
Another necessity in older homes is dealing with those unpredictable obstacles you encounter I say unpredictable because you never know what theyrsquore going to be but you can always predict that yoursquoll run into some And the most common time for obstacles to show up is during demolition Exhibit A the Soffits As Katie notes sometimes soffits are included purely as a cosmetic feature Other times they are utilized to as a space for plumbing or electrical runs The vision for this project included removing the soffits and having the upper cabinets extend all the way to the ceiling (yet another trick to add a feeling of spacious grandeur
to the room) So of course f o l l o w i n g Murphyrsquos law these soffits c o n t a i n e d p i p i n g a n d drains from
an upstairs bathroom meaning some significant reworking of those pipes and drains had to be done to achieve their goal In the end though it was wort the trouble Oh the joys of remodeling
wwwRochesterAreaBuilderscom14 | September 2014
With all of the difficulty inherent in a remodeling project it might seem like a miracle that the contractor and the homeowner are still on speaking terms by the end of it Even if everything goes smoothly you are still interrupting the daily routine of someone for weeks or months on end But having had a chance to chat with the homeowner on my last visit after the project was complete I can report that miracles can indeed happen She had nothing but praise for Katie the team at Beyond Kitchens and all their subcontractors I too think the project was beautifully done and Irsquom happy to have been invited into their home
If yoursquod like to see more of Beyond Kitchens LLCrsquos work you can check out their website at wwwbeyondkitchenscom and make plans to visit their Remodelers Tour project located at 923 10th St SW on September 13th and 14th
Other RAB members who worked on this project include
bull Brandrup Builders
bull Bright Ideas
bull Creative Hardwood Floors
bull DeGeus Tile amp Granite
bull Ferguson Enterprises
bull Innovative Surfaces
bull Larry Newman Drywall
bull Kuntz Electric Inc
bull Top Shop of Rochester Inc
WwwRochesterAreaBuilderscomSeptember 2014 | 15
ldquoHey Matt what can you tell me about the current crop of local candidatesrdquo
Itrsquos August That means that summer is coming to a close department stores have had their ldquoback-to-schoolrdquo sections of their stores open for 6 weeks and election season is just ramping up This year we have a variety of elections taking place in Rochester Mayor City Council School Board Senator Governor US House of Representatives and State Auditor just to name a few In this monthrsquos edition of HMWUWT I will attempt to give you a little background on each of these races
MAYOR
This race was a little more crowded just a couple days ago There were three candidates Mayor Brede Cindy Maves and Stephanie Kilen On August 12 during the primary election Mayor Brede and Cindy Maves were the top two vote getters and will proceed to the General Election in November Brede received 4757 votes Maves 2473 and Kilen 1926 Look for the big issue in this election to be governmental spending since Maves used to head the Tea Party Patriots in Rochester
CITY COUNCIL WARD 3
This was another race that whittled down to two candidates during the primary Incumbent Bruce Snyder received 375 votes Vickie Anderson 188 and Nick Campion 564 Campion and Snyder both advance to the general election Ward 3 is generally considered to be NW Rochester so make sure to check which ward you live in
SCHOOL BOARD SEAT 5
Jean Marvin advanced out of the primary with 40 of the vote Terry Throndson received 33 of the vote to also advance Nora Dooley with 20 and Matthew Halleck with 7 both failed to advance to the general election
SENATOR
Senator Al Franken won his primary not surprisingly to advance as the Democratic candidate in the general election Also not surprisingly Mike McFadden won the Republican ticket and will challenge Franken in November
GOVERNOR
Jeff Johnson won the Republican primary to challenge Governor Mark Dayton in November Both candidates have ties to Rochester Jeff Johnsonrsquos running mate is former Rochester law-maker Bill Kuisle Mark Daytonrsquos running mate Tina Flint Smith is currently the chair of the Destination Medical Center Corporation
US House of Representatives District 1
Blue Earth businessman Jim Hagedorn pulled off the upset of the primary when he defeated the Republican party-endorsed candidate Aaron Miller Hagedorn will challenge the incumbent Democrat Tim Walz in November
STATE AUDITOR
I know what you are thinking why do we care about the State Auditor race and what does the State Auditor do Well the State Auditor is charged with overseeing more than $20 billion spent annually by local governments in Minnesota The State Auditor does this by performing audits of local government financial statements and by reviewing documents data reports and complaints reported to the Office The reason this race is interesting to me is because of the politicking that took place before the primary Democrat Matt Entenza bypassed the DFL convention and filed to run after the incumbent Rebecca Otto received support from the DFL party Otto defeated Entenza by a 80-20 margin Otto will face Republican Randy Gilbert in November amongst a slate of other candidates
LEARN MORE
As always Rochester Area Builders will be holding our candidate social on September 30 Make sure to come on down to mingle with the candidates and pick their brains about issues that important to you If you have any questions about the upcoming elections or anything at all feel free to email me or give me a call at the office Thanks
Matt
wwwRochesterAreaBuilderscom16 | September 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 August 2014
President Chad Kompelein
Builder VPKC Chermak
Associate VPGeorge Cundy
President ElectMike Paradise
TreasurerGerry Traut
SecretaryKurt Welker
Past PresidentKeith Kylmala
NAHB RepresentativeKathe Ostrom
Theyrsquore HereThe new codes are (finally) out Following a mutli-year process to promulgate the 2012 International Building Code the Minnesota Department of Labor and Industry (DLI) has officially published the final language for the Minnesota Building Code With the final language in hand the Builders Association of Minnesota (BAM) is adjusting and completing seven code guide documents that will be provided to members-only in September The code is slated to be enforced starting January 24 2015
Membership with the builders association is the only way to obtain a copy of these documents and as such BAM will be promoting the code guides ndash and membership ndash to all 13000 licensed contractors If interested in promoting your company statewide these code guides still have sponsorships available More at wwwbamnorgsponsorship-opps Contact Remi Stone at remibamnorg or Katherine Nielsen at katherinenbamnorg with any questions
Creating the code documents is codes expert Ed VonThoma his company Building Knowledge Inc (BKI) and a committee including 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 Thank you to these members for generously donating their time to help perfect the members-only guides
The seven code guide documents are
bull Top 20 Code Changes in the Residential Building Code
bull Top 20 Code Changes in the Energy Code
bull 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
A major benefit of membership these guides are available ONLY to members DLI issues the codes but BAM develops guides on how to implement the new codes The documents will be sent to members and made available on the BAM website optimized for both printing and easy viewing on your mobile devices out in the field
Continuing education courses based on these code guides have been assembled by BKI who is available to teach classes around the state to help members prepare to build to the new code Let your local association know if yoursquod like BKI to teach in your community
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 building industry specific construction contracts More benefits of BAM membership can be found online at wwwbamnorgmembership
WwwRochesterAreaBuilderscomSeptember 2014 | 17
Committee UpdatesAWARDS COMMITTEECHAIRPERSON Les Radcliffe Radcliffe Homes amp Remodeling
This committee is currently meeting to look for ldquospecialrdquo members to recognize for their achievements to the Association in 2014 They will choose a Rising Star - a member who has been very active in their first three years of membership as well as nominating builders and associates to receive the Builder amp Associate of the Year Award and for the company who has supported the association The Cornerstone Award In this monthrsquos newsletter you have the opportunity to nominate someone whom you have noticed working extra hard for RAB Please download the Form fill it out and return it to the RAB office
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 2014Jennifer Maass GerhardsMARKETINGRob 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
ROCHESTER AREA BUILDERS INCASKS YOU TO MAKE NOMINATIONS FOR THE
THESE MEMBERS MUST BE DEDICATED TO THE BUILDING INDUSTRY ACTIVE PARTICIPANTS OF THE ASSOCIATION
ENTHUSIASTIC
The recipients of these three awards will be chosen by the Board of Directors at their December meeting and will be awarded at the January General Membership Meeting
Previous Winners - Builders1992 Robert Gill and Richard Hanson and Joe Weis 1993 Frank Kottschade 1994 Roger Lubahn 1995 Jay Burke 1996 Dan Severson 1997 Les Radcliffe 1998 Bob DeWitz and Mark Stinson 1999 David Higgins 2000 Jackie Hanson 2001 Aaron Benike 2002 Gary Zander 2003 John McGuine 2004 Mike Coats 2005 Steve Buss 2006 Mike Hortop 2007 Jodi Hruska 2008 Jay Burke 2009 Kevin Reckinger 2010 Paul Gregor 2011 Mike Larson 2012 Kathy Einck 2013 Les Radcliffe
Previous Winners - Associates1985 Don Soderberg 1987 Robert Suk 1988 Jim Buchan 1989 Mary Moylan 1990 Craig Wendland 1991 Ron Bailey 1992 Bill Tointon 1993 Wayne Lewis 1994 Donna Scott Herriot 1995 Julie Timmerman 1996 John Arnold 1997 Steve Christopherson 1998 Brent Buchan 1999 Kim Zimmer 2000 Julie Praus 2001 Karin Buechler 2002 Dennis Hanson 2003 Carla Kilpatrick 2004 Brent Buchan 2005 Jim Gander 2006 Brian Carlson 2007 John Eischen 2008 Wayne Eisen 2009 Jennifer Maass 2010 Tony Joseph 2011 Patty Hanson 2012 David Kane 2013 Jennifer Maass
Previous Winners - Company 2009 Energy Products amp Design 2010 Knutson Construction 2011 Minnesota Energy Resources 2012 Wendland Utz 2013 Home Federal Savings Bank
Current President and Vice-President are not eligible for selection
I Nominate
Reasons for Nomination
I Nominate
Reasons for Nomination
I Nominate
CLICK HERETO DOWNLOAD
wwwRochesterAreaBuilderscom18 | September 2014
construction fashion expose
c o n s t r u c t i o n f a s h i o n e x p o s e
WwwRochesterAreaBuilderscomSeptember 2014 | 19
Members2014 Commercial Builders Council116 Members as of 63014AB Systems IncAccord Electric IncAdvanced DisposalAlpha Video amp AudioAlvin E Benike IncBEVCOMMThe Blue Book
of Building amp Construction
The Boldt CompanyBraun Intertec
CorporationBriese Iron Works IncBrock White CompanyCO Brown AgencyCambriaCarpet OneCharter
CommunicationsMedia
Chosen Valley Testing Inc
Clayton Thomas Blinds of Rochester
Construction Partnership
CRW architecture + design group inc
Custom AlarmCustom Communications Inc
D2E LLCDonlar Construction
CompanyDoyle Conner CompanyDunham Associates
IncDunlap amp SeegerJE Dunn ConstructionEastwood Bankeci llcElcor Construction IncEnergy Products amp
Design IncEnventisExpert Insulation IncFat Willyrsquos Bar amp GrillFerguson EnterprisesGerhardsGoodin CompanyHaley Comfort Systems
(Authorized FireSide Dealer)
WL Hall CompanyHDR ArchitectureHeartman InsuranceHGA Architects and
EngineersHillerrsquos Flooring AmericaHiMEC at HomeHome Federal Savings
BankHome Improvement
Professionals IncHunt Electric
CorporationInstitute for
Environmental Assessment
PA Johnson Construction LLC
KampM Glass CompanyKane amp Johnson
Architects IncKey Builders IncKnutson Construction
ServicesKomitt Concrete IncKraus-Anderson
Construction CompanyKreofsky Building
SuppliesKruse LumberKuntz Electric Inc
Kwik Trip IncLeitzen Concrete
Products IncMarvin Windows amp
DoorsMavo Systems IncMcGhie amp Betts - a
Division of WSB amp Associates Inc
McGough ConstructionMEC Construction IncMEP AssociatesMerchants BankMerit Contracting IncMidwest Walls LLCMinnesota Energy
Resources CorporationMinnwest BankNickelson Painting IncNorth Star Stone amp
MasonryOlmsted National BankOn Site CompaniesPalmer Soderberg IncPella Windows amp DoorsPeoplersquos Energy
CooperativePompeii Painting IncPrehn Building Sales
IncPremier Bank RochesterProBuild Company LLCReliable Contractors
IncRochester Area
Appraisals LLCRochester Area Econ
Development IncRochester Public
UtilitiesRochester Ready Mix
Concrete CoRochester Sign Service
IncRochester Title amp
Escrow Company IncRSP ArchitectsRyan Electric IncSchoeppner IncSchwab LLCSchwickertrsquos Tecta
America LLCSEH YaggyStantecSterling State BankStructural Design
Group IncSuperior MechanicalTamarack Materials of
Rochester IncThink Mutual BankTonna Mechanical IncTSP Architects amp
EngineersUnited RentalsThe Urban Studio LLCValor Mechanical IncVeit CompaniesVertical Limit
ConstructionViking Automatic
Sprinkler CompanyViking Electric SupplyWeis Builders IncWells Fargo Bank
Minnesota NAWendland UtzWest BankWHKS amp CompanyWHV IncWidseth Smith Nolting
BUILDERS COUNCILCOMMERCIAL
a d i v i s i o n o f R o c h e s t e r A r e a B u i l d e r s I n c
EXECUTIVE COMMITTEEChairperson Chris Terry Knutson Construction ServicesVice Chairperson Nick Leimer Kraus-Anderson Construction CompanyPast Chairperson Sue Hanson Rochester Title amp Escrow Company IncMembers-at-LargeJohn Hill Schwab LLCShaun Knode AB Systems IncJohn Kuntz Kuntz Electric IncLevi Kaiser AE Benike IncMatt Mohs WHKS amp CompanyMike Nordstrom Superior Mechanical
August Meeting Photos
New Member
Clayton Thomas Blinds of RochesterDarlene Drew
2400 Country Club Rd SWRochester MN 55902
507-258-4457
August MEETINGDATE Wednesday August 6th 2014TIME Registration amp Networking at 700 AM Program at 730 AMPLACE Ramada Hotel amp Conference CenterPROGRAM World Fair 2023SPEAKERS Mark Ritchie Minnesota Secretary of State
wwwRochesterAreaBuilderscom20 | September 2014
2014 VALUATION 2013 VALUATION
New Residential Single Family Dwelling 30 7389265 39 9441463
Townhome Dwelling 8 1224172 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 45 283519 33 160271
Room Addition 3 85012 4 177306
Porch Additions 1 8000 2 39494
Other Additions 4 38500 2 23940
Basement Finish 18 240045 24 323650
Alterations 41 234327 45 281947
Multi-Family Addition 0 0 4 31620
Multi-Family Alterations 14 151160 6 4615400 New Commercial Assembly (Church) 0 0 0 0
Assembly (General) 0 0 1 2720000
Assembly (RestaurantBar) 0 0 0 0
Business 0 0 0 0
Education 0 0 0 0
FactoryIndustrial 0 0 0 0
Institution 0 0 0 0
Mercantile 0 0 1 580000
Miscelaneous 0 0 0 0
Utility (General) 0 0 1 90000
Residential (CareAssisted Living) 0 0 0 0
Storage (General) 0 0 0 0
Storage (Warehouse) 0 0 0 0 Existing CommercialAddition 3 4313000 2 1214050
Alterations 25 4451261 40 6158997
Structural Shell 0 0 0 0
ldquoWhite Boxrdquo 0 0 0 0
Interior Demolition Only 2 2017000 3 54800
Other Phased Permits 1 6700 0 0
Other ConstructionBusiness Signs 4 10630 12 87202
Advertising Sign 0 0 0 0
Footings amp Foundations 1 76000 1 1100000
Demolition 0 1
Rochester Building Permits July 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
June 81 59 43 36 36 12 26 32 33 41
July 58 36 60 23 21 23 8 39 39 38
TOTAL 397 329 275 178 139 128 102 180 201 192
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 702 506 417 302 274 200 191 299 326 192
Single Family Homes
Year To Date Statistics 2014 2013 NO VALUATION NO VALUATION
Building Permits Issued to Date 1377 199056393 1280 149430856
Single Family Dwelling 186 45041027 201 47362534
Multi-Family Buildings Total Units 39 1 3702052 0 0
Trade Permits Issued to Date 4558 46616612 4145 40187782
Electrical 1573 20801155 1355 18804490
Electrical (Temp Service) 159 46875 188 39500
Mechanical 1187 12309661 1078 10781042
Gas Piping 317 546576 286 263280
Fireplace 237 629268 215 506084
Hydronic System 94 4005425 69 3097653
Plumbing 991 8277652 954 6695793
Total Permits YTD 5935 245673005 5425 189618638
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
WwwRochesterAreaBuilderscomSeptember 2014 | 21
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
JUNE 2014
New Residential NUMBER VALUATION
Single Family 9 1991399
Commercial
Addition 1 89470
Existing Residential
Deck Addition 7 41847
Basement Finish 1 12000
Garage 1 2267
Accessory Building 2 11500
ByronBuilding Permits
JULY 2014
Existing Residential NUMBER VALUATION
Sprinkler System 1 5000
Residing 1 5000
Reroof 5 25000
Deck 2 6000
Mechanical 1 1000
Garage 1 20000
Pine IslandBuilding Permits
wwwRochesterAreaBuilderscom22 | September 2014
In early 2000 the SampP 500 hit 1553 and the tech-heavy NASDAQ surpassed 5000 Two years later the SampP was at 768 and the NASDAQ was at 800 In the process $6 trillion in household wealth was wiped out We now call that period the dot-com bubble About half a decade later we experienced the housing market bubble Interestingly the value of residential real estate destroyed during that crisis was also about $6 trillion Yet the dot-com bubble resulted in a mild recession while the housing bust lead to the Great Recession What was different It turns a major culprit was which households suffered the destruction of wealth
To set the table ponder this During the housing bust retail spending fell 8 from 2007 to 2009 one the largest drops ever By contrast retail spending increased by 5 between 2000 and 2002 Clearly the losses sustained during the dot-com bust had minimal impacts on household spending decisions and thus on the overall economy Here is why
The decline in home prices that began in 2007 was highly concentrated among households with very limited financial resources As a result these now much-poorer households dramatically pulled back on spending and in the process unwittingly helped usher in the Great Recession Remember retail spending is about a quarter of GDP so a decline of 8 over two years reduces GDP by 2 -- a huge amount It is as if these poorer households were the transmission mechanism through which the Great Recession got its energy
Exacerbating and reinforcing this downward spiral was the role of debt or leverage Remember by 2004 or 2005 a large percentage of first-time home buyers had low FICO scores sketchy employment histories
and limited assets To compensate these Alt-A and subprime buyers borrowed heavily with their now highly levered house being their major financial asset For example among the poorest quintile of the population 80 of their net worth is in their house Even among the middle quintile home equity is still 60 of their net worth By borrowing so much just a small decline in house prices could put these buyers upside down and wipe them out Which is exactly what happened and is what turned a recession into the Great Recession Between 2007 and 2010 the bottom 20 of the population saw their net worth fall from about $30000 to zero
By contrast the financial losses sustained during the dot-com bubble were essentially walled off and had relatively little effect on the overall economy This is because stock ownership is concentrated among the wealthy As the wealthy have less debt and more assets they could essentially shrug off the much larger financial losses they sustained yet not have them alter their day-to-day spending decisions Among the wealthiest 20 of the population home equity represents just 25 of their net worth Moreover depression-era federal laws make it hard to borrow more than 50 of the cost of stock purchases thereby limiting the potentially negative role of leverage
In short the home buyers who bought in 2004 and 2005 had limited wealth and had more of it at risk than earlier home buyers When the music stopped they were highly levered and wholly unable to protect themselves That quickly resulted in (among other things) reduced spending which shrank GDP and quickly cascaded into the Great Recession
+++++++++++++++++
All Bubbles Are Not ++++++++++Created Equal + + + + + + + + + + + + + + + + +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
WwwRochesterAreaBuilderscomSeptember 2014 | 23
NONE
MEMBERSHIPS PENDINGNONE
The firms listed below have applied for membership in Rochester Area Builders Inc
MEMBERSHIP TOTAL 451RETENTION RATE 929
As of 63014
WE WELCOME THE FOLLOWING NEW MEMBERS IN AUGUST
Membership InformationMembership Renewals as of 73114
Two to Four Years
Kraus-Anderson Construction Company 2012Electrical Solutions amp Service 2011Energy Panel Structures 2011Lowersquos Home Improvement 2011Minnwest Bank 2011RCTC Carpentry Program 2011Reynolds Design and Construction 2010
Five to Nine Years
Great River Overhead Door 2007Meadow Lakes Builders 2007Rochester International Event Center 2007The Urban Studio LLC 2007Hunt Electric Corporation 2006Otis Custom Homes LLC 2006Larry Newman Drywall 2005Pahl amp Kaye Inc 2005Synergy Products 2005Tradesmen International Inc 2005
Ten to 19 Years
Greg Wellik Construction 2004Morris Concrete Inc 2004AampA Electric amp Underground Inc 2003Advanced Disposal 2002Knutson Construction Services 2002Tagrsquos Drywall Inc 2001Ronningen Roofing Inc 2000Ferguson Enterprises 1998
20 to 24 Years
Bright Ideas 1993Hirshfieldrsquos Decorating Center 1993Brock White Company 1991Dan Severson Builders Inc 1991
25 Years amp More
Gerhards 1988Express Employment Professionals 1985Townsquare Media Rochester 1983Smith Schafer amp Associates Ltd 1982Hayfield Window amp Door Company 1981Quality Overhead Door Company Inc 1981Energy Products amp Design Inc 1980Tom Brogan Heating amp Air Conditioning 1980Alvin E Benike Inc 1979Pella Windows amp Doors 1978Northern Lights amp Furnishings 1976Wells Fargo Home Mortgage 1964Alexander amp Sons Builders 1962
NEW APPLICANTS
CLIFTONLARSONALLEN LLP7389 Airport View Drive SW Suite 100
Rochester MN 55902Phone 507-280-2300Contact Paul Alberts
Associate MemberAccountingConsulting
Sponsored by Joel Alberts AampA Electric amp Underground Inc
DISTINGUISHED HOMES BY MITCH HAGEN LLC3015 18th Avenue SWRochester MN 55902Phone 507- 951-1962Contact Mitch Hagen
Builder MemberResidential Builder amp Remodeler
Sponsored by Brandon Vagt XRG Concepts LLC
LOW VOLTAGE CONTRACTORS
4200 West 76th StreetMinneapolis MN 55435
Phone 952-835-4600Contact Cathy Trast
Associate MemberFire amp Life Safety Integrated Systems Service Provider
Sponsored by John Eckerman The Boldt Company
PACE INTERNATIONAL 3582 Technology Drive NW
Rochester MN 55901Phone 507-424-4900Contact Jim WestraAssociate Member
Commercial Satellite amp Cable Television ProductsSponsored by Jay Burke Heartwood Homes of Rochester Inc
wwwRochesterAreaBuilderscom24 | September 2014
Put your membershipto work nowMoney-saving discounts that benefit yourbusiness your employees and your family
wwwnahborgMA
National Association of Home Builders
R
wwwRochesterAreaBuilderscom8 | September 2014
July Networking NightAssociation Scrapbook
Thank you to all who attended Membership Appreciation Night at the Rochester Area Buildersrsquo office on July 29 Thank you Home Federal for sponsoring the
beverages and Home Improvement Professionals for the tents We would like to thank everybody for supporting BAM-PAC by participating in the wine amp beer tasting We raised over $300 for PAC If you would like to purchase a wine glass or beer flight glass (with the RAB logo) there are a few left at $5 each Sorry at this point the glasses are empty
GIVE AWAYSCharlie Brown PC Applications won a gift card to the Hubble House from RAB and the proverbial bad penny Rick Dold Godwin Law Office won ldquoDinner on Usrdquo from the Post Bulletin
Thank You
WwwRochesterAreaBuilderscomSeptember 2014 | 9
Association ScrapbookMember Appreciation Night
APPRECIATION
wwwRochesterAreaBuilderscom10 | September 2014
DATES AND TIMES FOR THE 2014 FALL SHOWCASE OF HOMESFriday Sept 12 Signs to be Picked Up 800 AM ndash 400 PMSaturday Sept 13 Entries Open to Public 1100 AM ndash 500 PMSunday Sept 14 Entries Open to Public 1100 AM ndash 500 PMSaturday Sept 20 Entries Open to Public 1100 AM ndash 500 PMSunday Sept 21 Entries Open to Public 1100 AM ndash 500 PMMonday Sept 22 Signs to be Returned 800 AM ndash 500 PM
1 Med City Builders of Rochester LLC60766 254th Avenue MantorvilleHome
2 Somerby Golf Community943 Somerby Parkway NE ByronDevelopment
3 Summit Custom Homes LLC943 Somerby Parkway NE ByronHome
4 Bigelow Homes LLC488 15th Ave NE ByronHome
5 Countryside Builders LLC1548 Wickford Place NE ByronHome
6 Derby Construction LLC6341 Oak Meadow Lane NWHome
7 Wright Homes Inc5897 Dogwood CourtTownhome
8 Thimijan Custom Homes LLC2326 Granite Circle NWHome
9 JNS Builders2583 Flagstone Lane NWHome
10 Cravath Homes LLC6878 Larkspur ParkwayHome
11 Bigelow amp Lennon Construction6320 Mallard Drive NWHome
12 Bigelow Homes LLC5542 Harvest Lake Drive NWHome
13 DeWitz Home Builders6221 51st Street NWHome
14 Majestic Homes Inc4818 Bishop Lane NWHome
15 Exclusive Home Builders amp Remodelers3609 46th Avenue NWHome
16 MDH Inc ndash Orchard Hills Builders626 Gates Lane SWHome
17 MDH Inc ndash Fox Hill Builders1031 Fox Valley Place SWHome
18 Meadow Lakes Builders3890 Berkshire Road SWHome
19 High Definition Homes LLC1291 Boulder Creek Lane SWHome
20 Craig Swanson Builders Inc2710 Headland Court SWHome
21 Distinguished Homes by Mitch Hagen 3550 Woodstone Drive SWHome
22 Penz Custom Homes Inc3622 Triton Lane SWHome
23 Chris Fritsch Custom Homes LLC3915 Creek View Lane SWHome
24 Thimijan Custom Homes LLC5380 Scenic View Drive SWHome
25 RJ Manemann Custom Homes5406 Scenic View Drive SWHome
26 R amp M Development5448 Scenic View Drive SWHome
ShowcaseofFallFall
SHOWCASE ENTRIES
Sponsored By
WwwRochesterAreaBuilderscomSeptember 2014 | 11
DATES AND TIMES FOR THE 2014 REMODELERS TOURFriday Sept 12 Signs to be Picked Up 800 AM ndash 400 PMSaturday Sept 13 Entries Open to Public 1100 AM ndash 500 PMSunday Sept 14 Entries Open to Public 1100 AM ndash 500 PMMonday Sept 15 Signs to be Returned 800 AM ndash 500 PM
27 Stonebridge Builders5393 Scenic View Drive SWHome
28 Bigelow Homes LLC5530 Leslie Lane SWHome
29 Bigelow Homes LLC2811 Talon Place SETownhome Community
30 R Fleming Construction Inc2529 Tee Time Road SEHome
31 Centurion Ridge LLCCenturion Court NETownhome Community
32 Maplewood Homes LLC1819 Shannon Oaks Blvd NEHome
33 Countryside Builders LLC2348 Coral Ridge Place NETownhome Community
34 Countryside Builders LLC3669 Cameo LaneHome
35 Countryside Builders LLC3519 Jasper Court NEHome
36 Penz Custom Homes Inc3897 Cameo Place NEHome
37 Otis Custom Homes LLC1716 Stone Crest Dr NEHome
38 Majestic Homes Inc3950 Cedarwood Road NEHome
39 Custom Homes by Bradley Inc4053 Stone Point Drive NEHome
40 Chris Fritsch Custom Homes LLC844 Zumbro Woods Lane NW OronocoHome
1 Reynolds Design amp Construction
4905 Oaklawn Lane NWKitchen
2 Master Builders Inc4242 Arboretum Drive NW
Four Season Addition
3 Elias Construction LLC913 3rd Street NW Byron
Whole House Remodel
4 Design Studio B835 Fox Pointe Lane SW
Kitchen
5 Beyond Kitchens LLC923 10th Street SW
Kitchen
6 Chladek
Construction LLC245 1st Street NW Elgin
Exterior Remodel amp Addition
SHOWCASE ENTRIES
Sponsored By
RemodelersRemodelers
TOUR ENTRIES
ADMISSION IS FREE
wwwRochesterAreaBuilderscom12 | September 2014
PROJECT KITCHEN AND BATHROOM REMODEL CONTRACTOR BEYOND KITCHENS LLCHOST KATIE DARVAL PROJECT COORDINATORDESIGNER
REMODELING A HOME IS A UNIQUE AND MULTIFACETED CHALLENGE IT TAKES A SPECIAL KIND OF VISION TO LOOK PAST WHAT A ROOM HAS BEEN AND SEE WHAT IT COULD BE IT TAKES A SPECIAL KIND OF DETERMINATION TO OVERCOME THE OBSTACLES THAT ALWAYS COME WHEN YOUrsquoRE TRYING TO FIT SOMETHING NEW INTO A SPACE THAT WAS NOT ORIGINALLY DESIGNED FOR IT AND IT TAKES A SPECIAL KIND OF PERSONALITY TO MAKE A HOMEOWNER FEEL COMFORTABLE WITH YOU ESSENTIALLY MOVING IN AND TURNING THEIR LIVING SPACE INTO YOUR WORK PLACE
Beyond Kitchens LLC has been making those challenges their business for almost 20 years This talented team of women is composed of owner Diane Quinn CKD Christina Jorgensen AKBD and Katie Darval their project coordinator who was kind enough to give me access to the project and answer my questions about it The project inside a lovely home in Southwest Rochester with a striking red door that demands attention and welcomes you inside was about more than just a new look
for the homeowners Work responsibilities for one of the couple mean clocking in from home at all hours of the night to make calls to overseas contacts making storage for a home office very important But the clients also wanted an uncluttered look and for the overall feel of refinement and elegance to remain unspoiled So these workday necessities were given space in cabinetry adjoining the dining room complete with in-drawer outlets and USB ports so that all of their phones tablets and laptops can be tucked away out of site while not in use
To further the goal of uninterrupted elegance Beyond Kitchens went the extra mile by acquiring custom outlet and switch covers made of real stone As Katie
WwwRochesterAreaBuilderscomSeptember 2014 | 13
says ldquothe backsplash and lighting are the jewelry to the roomrdquo Using these stone covers means that the outlets and switches wonrsquot be the first thing you notice when you enter the room While they are beautifully made their real purpose is not to stand out but to blend in and to let the overall beauty of the room shine without distraction Itrsquos their attention to small details like this that truly show Beyond Kitchensrsquo ability to create a room that not only wows you on first sight but also ensures the homeowners will be happy with the project years down the road
Of course working with the homeowners and what they bring to the table is crucial When you are building a new home you can design a kitchen pick the cabinets you like best and then choose the flooring and appliances that best accent it Remodeling is rarely that simple In this case the kitchen already had beautiful hardwood floors that only needed to be restored The homeowners had also recently purchased black appliances so those needed to be allowed for in the design as well Katie says they decided to use off white cabinets in most of the kitchen to create a more spacious feel while incorporating the
black appliances with a wall of dark wood cabinetry They also enhanced the feeling of spaciousness by extending the tile backsplash all the way up to the ceiling above the range Creating space whether through i l lus ion or through creative hidden storage is often a necessity in older homes
Another necessity in older homes is dealing with those unpredictable obstacles you encounter I say unpredictable because you never know what theyrsquore going to be but you can always predict that yoursquoll run into some And the most common time for obstacles to show up is during demolition Exhibit A the Soffits As Katie notes sometimes soffits are included purely as a cosmetic feature Other times they are utilized to as a space for plumbing or electrical runs The vision for this project included removing the soffits and having the upper cabinets extend all the way to the ceiling (yet another trick to add a feeling of spacious grandeur
to the room) So of course f o l l o w i n g Murphyrsquos law these soffits c o n t a i n e d p i p i n g a n d drains from
an upstairs bathroom meaning some significant reworking of those pipes and drains had to be done to achieve their goal In the end though it was wort the trouble Oh the joys of remodeling
wwwRochesterAreaBuilderscom14 | September 2014
With all of the difficulty inherent in a remodeling project it might seem like a miracle that the contractor and the homeowner are still on speaking terms by the end of it Even if everything goes smoothly you are still interrupting the daily routine of someone for weeks or months on end But having had a chance to chat with the homeowner on my last visit after the project was complete I can report that miracles can indeed happen She had nothing but praise for Katie the team at Beyond Kitchens and all their subcontractors I too think the project was beautifully done and Irsquom happy to have been invited into their home
If yoursquod like to see more of Beyond Kitchens LLCrsquos work you can check out their website at wwwbeyondkitchenscom and make plans to visit their Remodelers Tour project located at 923 10th St SW on September 13th and 14th
Other RAB members who worked on this project include
bull Brandrup Builders
bull Bright Ideas
bull Creative Hardwood Floors
bull DeGeus Tile amp Granite
bull Ferguson Enterprises
bull Innovative Surfaces
bull Larry Newman Drywall
bull Kuntz Electric Inc
bull Top Shop of Rochester Inc
WwwRochesterAreaBuilderscomSeptember 2014 | 15
ldquoHey Matt what can you tell me about the current crop of local candidatesrdquo
Itrsquos August That means that summer is coming to a close department stores have had their ldquoback-to-schoolrdquo sections of their stores open for 6 weeks and election season is just ramping up This year we have a variety of elections taking place in Rochester Mayor City Council School Board Senator Governor US House of Representatives and State Auditor just to name a few In this monthrsquos edition of HMWUWT I will attempt to give you a little background on each of these races
MAYOR
This race was a little more crowded just a couple days ago There were three candidates Mayor Brede Cindy Maves and Stephanie Kilen On August 12 during the primary election Mayor Brede and Cindy Maves were the top two vote getters and will proceed to the General Election in November Brede received 4757 votes Maves 2473 and Kilen 1926 Look for the big issue in this election to be governmental spending since Maves used to head the Tea Party Patriots in Rochester
CITY COUNCIL WARD 3
This was another race that whittled down to two candidates during the primary Incumbent Bruce Snyder received 375 votes Vickie Anderson 188 and Nick Campion 564 Campion and Snyder both advance to the general election Ward 3 is generally considered to be NW Rochester so make sure to check which ward you live in
SCHOOL BOARD SEAT 5
Jean Marvin advanced out of the primary with 40 of the vote Terry Throndson received 33 of the vote to also advance Nora Dooley with 20 and Matthew Halleck with 7 both failed to advance to the general election
SENATOR
Senator Al Franken won his primary not surprisingly to advance as the Democratic candidate in the general election Also not surprisingly Mike McFadden won the Republican ticket and will challenge Franken in November
GOVERNOR
Jeff Johnson won the Republican primary to challenge Governor Mark Dayton in November Both candidates have ties to Rochester Jeff Johnsonrsquos running mate is former Rochester law-maker Bill Kuisle Mark Daytonrsquos running mate Tina Flint Smith is currently the chair of the Destination Medical Center Corporation
US House of Representatives District 1
Blue Earth businessman Jim Hagedorn pulled off the upset of the primary when he defeated the Republican party-endorsed candidate Aaron Miller Hagedorn will challenge the incumbent Democrat Tim Walz in November
STATE AUDITOR
I know what you are thinking why do we care about the State Auditor race and what does the State Auditor do Well the State Auditor is charged with overseeing more than $20 billion spent annually by local governments in Minnesota The State Auditor does this by performing audits of local government financial statements and by reviewing documents data reports and complaints reported to the Office The reason this race is interesting to me is because of the politicking that took place before the primary Democrat Matt Entenza bypassed the DFL convention and filed to run after the incumbent Rebecca Otto received support from the DFL party Otto defeated Entenza by a 80-20 margin Otto will face Republican Randy Gilbert in November amongst a slate of other candidates
LEARN MORE
As always Rochester Area Builders will be holding our candidate social on September 30 Make sure to come on down to mingle with the candidates and pick their brains about issues that important to you If you have any questions about the upcoming elections or anything at all feel free to email me or give me a call at the office Thanks
Matt
wwwRochesterAreaBuilderscom16 | September 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 August 2014
President Chad Kompelein
Builder VPKC Chermak
Associate VPGeorge Cundy
President ElectMike Paradise
TreasurerGerry Traut
SecretaryKurt Welker
Past PresidentKeith Kylmala
NAHB RepresentativeKathe Ostrom
Theyrsquore HereThe new codes are (finally) out Following a mutli-year process to promulgate the 2012 International Building Code the Minnesota Department of Labor and Industry (DLI) has officially published the final language for the Minnesota Building Code With the final language in hand the Builders Association of Minnesota (BAM) is adjusting and completing seven code guide documents that will be provided to members-only in September The code is slated to be enforced starting January 24 2015
Membership with the builders association is the only way to obtain a copy of these documents and as such BAM will be promoting the code guides ndash and membership ndash to all 13000 licensed contractors If interested in promoting your company statewide these code guides still have sponsorships available More at wwwbamnorgsponsorship-opps Contact Remi Stone at remibamnorg or Katherine Nielsen at katherinenbamnorg with any questions
Creating the code documents is codes expert Ed VonThoma his company Building Knowledge Inc (BKI) and a committee including 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 Thank you to these members for generously donating their time to help perfect the members-only guides
The seven code guide documents are
bull Top 20 Code Changes in the Residential Building Code
bull Top 20 Code Changes in the Energy Code
bull 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
A major benefit of membership these guides are available ONLY to members DLI issues the codes but BAM develops guides on how to implement the new codes The documents will be sent to members and made available on the BAM website optimized for both printing and easy viewing on your mobile devices out in the field
Continuing education courses based on these code guides have been assembled by BKI who is available to teach classes around the state to help members prepare to build to the new code Let your local association know if yoursquod like BKI to teach in your community
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 building industry specific construction contracts More benefits of BAM membership can be found online at wwwbamnorgmembership
WwwRochesterAreaBuilderscomSeptember 2014 | 17
Committee UpdatesAWARDS COMMITTEECHAIRPERSON Les Radcliffe Radcliffe Homes amp Remodeling
This committee is currently meeting to look for ldquospecialrdquo members to recognize for their achievements to the Association in 2014 They will choose a Rising Star - a member who has been very active in their first three years of membership as well as nominating builders and associates to receive the Builder amp Associate of the Year Award and for the company who has supported the association The Cornerstone Award In this monthrsquos newsletter you have the opportunity to nominate someone whom you have noticed working extra hard for RAB Please download the Form fill it out and return it to the RAB office
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 2014Jennifer Maass GerhardsMARKETINGRob 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
ROCHESTER AREA BUILDERS INCASKS YOU TO MAKE NOMINATIONS FOR THE
THESE MEMBERS MUST BE DEDICATED TO THE BUILDING INDUSTRY ACTIVE PARTICIPANTS OF THE ASSOCIATION
ENTHUSIASTIC
The recipients of these three awards will be chosen by the Board of Directors at their December meeting and will be awarded at the January General Membership Meeting
Previous Winners - Builders1992 Robert Gill and Richard Hanson and Joe Weis 1993 Frank Kottschade 1994 Roger Lubahn 1995 Jay Burke 1996 Dan Severson 1997 Les Radcliffe 1998 Bob DeWitz and Mark Stinson 1999 David Higgins 2000 Jackie Hanson 2001 Aaron Benike 2002 Gary Zander 2003 John McGuine 2004 Mike Coats 2005 Steve Buss 2006 Mike Hortop 2007 Jodi Hruska 2008 Jay Burke 2009 Kevin Reckinger 2010 Paul Gregor 2011 Mike Larson 2012 Kathy Einck 2013 Les Radcliffe
Previous Winners - Associates1985 Don Soderberg 1987 Robert Suk 1988 Jim Buchan 1989 Mary Moylan 1990 Craig Wendland 1991 Ron Bailey 1992 Bill Tointon 1993 Wayne Lewis 1994 Donna Scott Herriot 1995 Julie Timmerman 1996 John Arnold 1997 Steve Christopherson 1998 Brent Buchan 1999 Kim Zimmer 2000 Julie Praus 2001 Karin Buechler 2002 Dennis Hanson 2003 Carla Kilpatrick 2004 Brent Buchan 2005 Jim Gander 2006 Brian Carlson 2007 John Eischen 2008 Wayne Eisen 2009 Jennifer Maass 2010 Tony Joseph 2011 Patty Hanson 2012 David Kane 2013 Jennifer Maass
Previous Winners - Company 2009 Energy Products amp Design 2010 Knutson Construction 2011 Minnesota Energy Resources 2012 Wendland Utz 2013 Home Federal Savings Bank
Current President and Vice-President are not eligible for selection
I Nominate
Reasons for Nomination
I Nominate
Reasons for Nomination
I Nominate
CLICK HERETO DOWNLOAD
wwwRochesterAreaBuilderscom18 | September 2014
construction fashion expose
c o n s t r u c t i o n f a s h i o n e x p o s e
WwwRochesterAreaBuilderscomSeptember 2014 | 19
Members2014 Commercial Builders Council116 Members as of 63014AB Systems IncAccord Electric IncAdvanced DisposalAlpha Video amp AudioAlvin E Benike IncBEVCOMMThe Blue Book
of Building amp Construction
The Boldt CompanyBraun Intertec
CorporationBriese Iron Works IncBrock White CompanyCO Brown AgencyCambriaCarpet OneCharter
CommunicationsMedia
Chosen Valley Testing Inc
Clayton Thomas Blinds of Rochester
Construction Partnership
CRW architecture + design group inc
Custom AlarmCustom Communications Inc
D2E LLCDonlar Construction
CompanyDoyle Conner CompanyDunham Associates
IncDunlap amp SeegerJE Dunn ConstructionEastwood Bankeci llcElcor Construction IncEnergy Products amp
Design IncEnventisExpert Insulation IncFat Willyrsquos Bar amp GrillFerguson EnterprisesGerhardsGoodin CompanyHaley Comfort Systems
(Authorized FireSide Dealer)
WL Hall CompanyHDR ArchitectureHeartman InsuranceHGA Architects and
EngineersHillerrsquos Flooring AmericaHiMEC at HomeHome Federal Savings
BankHome Improvement
Professionals IncHunt Electric
CorporationInstitute for
Environmental Assessment
PA Johnson Construction LLC
KampM Glass CompanyKane amp Johnson
Architects IncKey Builders IncKnutson Construction
ServicesKomitt Concrete IncKraus-Anderson
Construction CompanyKreofsky Building
SuppliesKruse LumberKuntz Electric Inc
Kwik Trip IncLeitzen Concrete
Products IncMarvin Windows amp
DoorsMavo Systems IncMcGhie amp Betts - a
Division of WSB amp Associates Inc
McGough ConstructionMEC Construction IncMEP AssociatesMerchants BankMerit Contracting IncMidwest Walls LLCMinnesota Energy
Resources CorporationMinnwest BankNickelson Painting IncNorth Star Stone amp
MasonryOlmsted National BankOn Site CompaniesPalmer Soderberg IncPella Windows amp DoorsPeoplersquos Energy
CooperativePompeii Painting IncPrehn Building Sales
IncPremier Bank RochesterProBuild Company LLCReliable Contractors
IncRochester Area
Appraisals LLCRochester Area Econ
Development IncRochester Public
UtilitiesRochester Ready Mix
Concrete CoRochester Sign Service
IncRochester Title amp
Escrow Company IncRSP ArchitectsRyan Electric IncSchoeppner IncSchwab LLCSchwickertrsquos Tecta
America LLCSEH YaggyStantecSterling State BankStructural Design
Group IncSuperior MechanicalTamarack Materials of
Rochester IncThink Mutual BankTonna Mechanical IncTSP Architects amp
EngineersUnited RentalsThe Urban Studio LLCValor Mechanical IncVeit CompaniesVertical Limit
ConstructionViking Automatic
Sprinkler CompanyViking Electric SupplyWeis Builders IncWells Fargo Bank
Minnesota NAWendland UtzWest BankWHKS amp CompanyWHV IncWidseth Smith Nolting
BUILDERS COUNCILCOMMERCIAL
a d i v i s i o n o f R o c h e s t e r A r e a B u i l d e r s I n c
EXECUTIVE COMMITTEEChairperson Chris Terry Knutson Construction ServicesVice Chairperson Nick Leimer Kraus-Anderson Construction CompanyPast Chairperson Sue Hanson Rochester Title amp Escrow Company IncMembers-at-LargeJohn Hill Schwab LLCShaun Knode AB Systems IncJohn Kuntz Kuntz Electric IncLevi Kaiser AE Benike IncMatt Mohs WHKS amp CompanyMike Nordstrom Superior Mechanical
August Meeting Photos
New Member
Clayton Thomas Blinds of RochesterDarlene Drew
2400 Country Club Rd SWRochester MN 55902
507-258-4457
August MEETINGDATE Wednesday August 6th 2014TIME Registration amp Networking at 700 AM Program at 730 AMPLACE Ramada Hotel amp Conference CenterPROGRAM World Fair 2023SPEAKERS Mark Ritchie Minnesota Secretary of State
wwwRochesterAreaBuilderscom20 | September 2014
2014 VALUATION 2013 VALUATION
New Residential Single Family Dwelling 30 7389265 39 9441463
Townhome Dwelling 8 1224172 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 45 283519 33 160271
Room Addition 3 85012 4 177306
Porch Additions 1 8000 2 39494
Other Additions 4 38500 2 23940
Basement Finish 18 240045 24 323650
Alterations 41 234327 45 281947
Multi-Family Addition 0 0 4 31620
Multi-Family Alterations 14 151160 6 4615400 New Commercial Assembly (Church) 0 0 0 0
Assembly (General) 0 0 1 2720000
Assembly (RestaurantBar) 0 0 0 0
Business 0 0 0 0
Education 0 0 0 0
FactoryIndustrial 0 0 0 0
Institution 0 0 0 0
Mercantile 0 0 1 580000
Miscelaneous 0 0 0 0
Utility (General) 0 0 1 90000
Residential (CareAssisted Living) 0 0 0 0
Storage (General) 0 0 0 0
Storage (Warehouse) 0 0 0 0 Existing CommercialAddition 3 4313000 2 1214050
Alterations 25 4451261 40 6158997
Structural Shell 0 0 0 0
ldquoWhite Boxrdquo 0 0 0 0
Interior Demolition Only 2 2017000 3 54800
Other Phased Permits 1 6700 0 0
Other ConstructionBusiness Signs 4 10630 12 87202
Advertising Sign 0 0 0 0
Footings amp Foundations 1 76000 1 1100000
Demolition 0 1
Rochester Building Permits July 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
June 81 59 43 36 36 12 26 32 33 41
July 58 36 60 23 21 23 8 39 39 38
TOTAL 397 329 275 178 139 128 102 180 201 192
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 702 506 417 302 274 200 191 299 326 192
Single Family Homes
Year To Date Statistics 2014 2013 NO VALUATION NO VALUATION
Building Permits Issued to Date 1377 199056393 1280 149430856
Single Family Dwelling 186 45041027 201 47362534
Multi-Family Buildings Total Units 39 1 3702052 0 0
Trade Permits Issued to Date 4558 46616612 4145 40187782
Electrical 1573 20801155 1355 18804490
Electrical (Temp Service) 159 46875 188 39500
Mechanical 1187 12309661 1078 10781042
Gas Piping 317 546576 286 263280
Fireplace 237 629268 215 506084
Hydronic System 94 4005425 69 3097653
Plumbing 991 8277652 954 6695793
Total Permits YTD 5935 245673005 5425 189618638
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
WwwRochesterAreaBuilderscomSeptember 2014 | 21
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
JUNE 2014
New Residential NUMBER VALUATION
Single Family 9 1991399
Commercial
Addition 1 89470
Existing Residential
Deck Addition 7 41847
Basement Finish 1 12000
Garage 1 2267
Accessory Building 2 11500
ByronBuilding Permits
JULY 2014
Existing Residential NUMBER VALUATION
Sprinkler System 1 5000
Residing 1 5000
Reroof 5 25000
Deck 2 6000
Mechanical 1 1000
Garage 1 20000
Pine IslandBuilding Permits
wwwRochesterAreaBuilderscom22 | September 2014
In early 2000 the SampP 500 hit 1553 and the tech-heavy NASDAQ surpassed 5000 Two years later the SampP was at 768 and the NASDAQ was at 800 In the process $6 trillion in household wealth was wiped out We now call that period the dot-com bubble About half a decade later we experienced the housing market bubble Interestingly the value of residential real estate destroyed during that crisis was also about $6 trillion Yet the dot-com bubble resulted in a mild recession while the housing bust lead to the Great Recession What was different It turns a major culprit was which households suffered the destruction of wealth
To set the table ponder this During the housing bust retail spending fell 8 from 2007 to 2009 one the largest drops ever By contrast retail spending increased by 5 between 2000 and 2002 Clearly the losses sustained during the dot-com bust had minimal impacts on household spending decisions and thus on the overall economy Here is why
The decline in home prices that began in 2007 was highly concentrated among households with very limited financial resources As a result these now much-poorer households dramatically pulled back on spending and in the process unwittingly helped usher in the Great Recession Remember retail spending is about a quarter of GDP so a decline of 8 over two years reduces GDP by 2 -- a huge amount It is as if these poorer households were the transmission mechanism through which the Great Recession got its energy
Exacerbating and reinforcing this downward spiral was the role of debt or leverage Remember by 2004 or 2005 a large percentage of first-time home buyers had low FICO scores sketchy employment histories
and limited assets To compensate these Alt-A and subprime buyers borrowed heavily with their now highly levered house being their major financial asset For example among the poorest quintile of the population 80 of their net worth is in their house Even among the middle quintile home equity is still 60 of their net worth By borrowing so much just a small decline in house prices could put these buyers upside down and wipe them out Which is exactly what happened and is what turned a recession into the Great Recession Between 2007 and 2010 the bottom 20 of the population saw their net worth fall from about $30000 to zero
By contrast the financial losses sustained during the dot-com bubble were essentially walled off and had relatively little effect on the overall economy This is because stock ownership is concentrated among the wealthy As the wealthy have less debt and more assets they could essentially shrug off the much larger financial losses they sustained yet not have them alter their day-to-day spending decisions Among the wealthiest 20 of the population home equity represents just 25 of their net worth Moreover depression-era federal laws make it hard to borrow more than 50 of the cost of stock purchases thereby limiting the potentially negative role of leverage
In short the home buyers who bought in 2004 and 2005 had limited wealth and had more of it at risk than earlier home buyers When the music stopped they were highly levered and wholly unable to protect themselves That quickly resulted in (among other things) reduced spending which shrank GDP and quickly cascaded into the Great Recession
+++++++++++++++++
All Bubbles Are Not ++++++++++Created Equal + + + + + + + + + + + + + + + + +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
WwwRochesterAreaBuilderscomSeptember 2014 | 23
NONE
MEMBERSHIPS PENDINGNONE
The firms listed below have applied for membership in Rochester Area Builders Inc
MEMBERSHIP TOTAL 451RETENTION RATE 929
As of 63014
WE WELCOME THE FOLLOWING NEW MEMBERS IN AUGUST
Membership InformationMembership Renewals as of 73114
Two to Four Years
Kraus-Anderson Construction Company 2012Electrical Solutions amp Service 2011Energy Panel Structures 2011Lowersquos Home Improvement 2011Minnwest Bank 2011RCTC Carpentry Program 2011Reynolds Design and Construction 2010
Five to Nine Years
Great River Overhead Door 2007Meadow Lakes Builders 2007Rochester International Event Center 2007The Urban Studio LLC 2007Hunt Electric Corporation 2006Otis Custom Homes LLC 2006Larry Newman Drywall 2005Pahl amp Kaye Inc 2005Synergy Products 2005Tradesmen International Inc 2005
Ten to 19 Years
Greg Wellik Construction 2004Morris Concrete Inc 2004AampA Electric amp Underground Inc 2003Advanced Disposal 2002Knutson Construction Services 2002Tagrsquos Drywall Inc 2001Ronningen Roofing Inc 2000Ferguson Enterprises 1998
20 to 24 Years
Bright Ideas 1993Hirshfieldrsquos Decorating Center 1993Brock White Company 1991Dan Severson Builders Inc 1991
25 Years amp More
Gerhards 1988Express Employment Professionals 1985Townsquare Media Rochester 1983Smith Schafer amp Associates Ltd 1982Hayfield Window amp Door Company 1981Quality Overhead Door Company Inc 1981Energy Products amp Design Inc 1980Tom Brogan Heating amp Air Conditioning 1980Alvin E Benike Inc 1979Pella Windows amp Doors 1978Northern Lights amp Furnishings 1976Wells Fargo Home Mortgage 1964Alexander amp Sons Builders 1962
NEW APPLICANTS
CLIFTONLARSONALLEN LLP7389 Airport View Drive SW Suite 100
Rochester MN 55902Phone 507-280-2300Contact Paul Alberts
Associate MemberAccountingConsulting
Sponsored by Joel Alberts AampA Electric amp Underground Inc
DISTINGUISHED HOMES BY MITCH HAGEN LLC3015 18th Avenue SWRochester MN 55902Phone 507- 951-1962Contact Mitch Hagen
Builder MemberResidential Builder amp Remodeler
Sponsored by Brandon Vagt XRG Concepts LLC
LOW VOLTAGE CONTRACTORS
4200 West 76th StreetMinneapolis MN 55435
Phone 952-835-4600Contact Cathy Trast
Associate MemberFire amp Life Safety Integrated Systems Service Provider
Sponsored by John Eckerman The Boldt Company
PACE INTERNATIONAL 3582 Technology Drive NW
Rochester MN 55901Phone 507-424-4900Contact Jim WestraAssociate Member
Commercial Satellite amp Cable Television ProductsSponsored by Jay Burke Heartwood Homes of Rochester Inc
wwwRochesterAreaBuilderscom24 | September 2014
Put your membershipto work nowMoney-saving discounts that benefit yourbusiness your employees and your family
wwwnahborgMA
National Association of Home Builders
R
WwwRochesterAreaBuilderscomSeptember 2014 | 9
Association ScrapbookMember Appreciation Night
APPRECIATION
wwwRochesterAreaBuilderscom10 | September 2014
DATES AND TIMES FOR THE 2014 FALL SHOWCASE OF HOMESFriday Sept 12 Signs to be Picked Up 800 AM ndash 400 PMSaturday Sept 13 Entries Open to Public 1100 AM ndash 500 PMSunday Sept 14 Entries Open to Public 1100 AM ndash 500 PMSaturday Sept 20 Entries Open to Public 1100 AM ndash 500 PMSunday Sept 21 Entries Open to Public 1100 AM ndash 500 PMMonday Sept 22 Signs to be Returned 800 AM ndash 500 PM
1 Med City Builders of Rochester LLC60766 254th Avenue MantorvilleHome
2 Somerby Golf Community943 Somerby Parkway NE ByronDevelopment
3 Summit Custom Homes LLC943 Somerby Parkway NE ByronHome
4 Bigelow Homes LLC488 15th Ave NE ByronHome
5 Countryside Builders LLC1548 Wickford Place NE ByronHome
6 Derby Construction LLC6341 Oak Meadow Lane NWHome
7 Wright Homes Inc5897 Dogwood CourtTownhome
8 Thimijan Custom Homes LLC2326 Granite Circle NWHome
9 JNS Builders2583 Flagstone Lane NWHome
10 Cravath Homes LLC6878 Larkspur ParkwayHome
11 Bigelow amp Lennon Construction6320 Mallard Drive NWHome
12 Bigelow Homes LLC5542 Harvest Lake Drive NWHome
13 DeWitz Home Builders6221 51st Street NWHome
14 Majestic Homes Inc4818 Bishop Lane NWHome
15 Exclusive Home Builders amp Remodelers3609 46th Avenue NWHome
16 MDH Inc ndash Orchard Hills Builders626 Gates Lane SWHome
17 MDH Inc ndash Fox Hill Builders1031 Fox Valley Place SWHome
18 Meadow Lakes Builders3890 Berkshire Road SWHome
19 High Definition Homes LLC1291 Boulder Creek Lane SWHome
20 Craig Swanson Builders Inc2710 Headland Court SWHome
21 Distinguished Homes by Mitch Hagen 3550 Woodstone Drive SWHome
22 Penz Custom Homes Inc3622 Triton Lane SWHome
23 Chris Fritsch Custom Homes LLC3915 Creek View Lane SWHome
24 Thimijan Custom Homes LLC5380 Scenic View Drive SWHome
25 RJ Manemann Custom Homes5406 Scenic View Drive SWHome
26 R amp M Development5448 Scenic View Drive SWHome
ShowcaseofFallFall
SHOWCASE ENTRIES
Sponsored By
WwwRochesterAreaBuilderscomSeptember 2014 | 11
DATES AND TIMES FOR THE 2014 REMODELERS TOURFriday Sept 12 Signs to be Picked Up 800 AM ndash 400 PMSaturday Sept 13 Entries Open to Public 1100 AM ndash 500 PMSunday Sept 14 Entries Open to Public 1100 AM ndash 500 PMMonday Sept 15 Signs to be Returned 800 AM ndash 500 PM
27 Stonebridge Builders5393 Scenic View Drive SWHome
28 Bigelow Homes LLC5530 Leslie Lane SWHome
29 Bigelow Homes LLC2811 Talon Place SETownhome Community
30 R Fleming Construction Inc2529 Tee Time Road SEHome
31 Centurion Ridge LLCCenturion Court NETownhome Community
32 Maplewood Homes LLC1819 Shannon Oaks Blvd NEHome
33 Countryside Builders LLC2348 Coral Ridge Place NETownhome Community
34 Countryside Builders LLC3669 Cameo LaneHome
35 Countryside Builders LLC3519 Jasper Court NEHome
36 Penz Custom Homes Inc3897 Cameo Place NEHome
37 Otis Custom Homes LLC1716 Stone Crest Dr NEHome
38 Majestic Homes Inc3950 Cedarwood Road NEHome
39 Custom Homes by Bradley Inc4053 Stone Point Drive NEHome
40 Chris Fritsch Custom Homes LLC844 Zumbro Woods Lane NW OronocoHome
1 Reynolds Design amp Construction
4905 Oaklawn Lane NWKitchen
2 Master Builders Inc4242 Arboretum Drive NW
Four Season Addition
3 Elias Construction LLC913 3rd Street NW Byron
Whole House Remodel
4 Design Studio B835 Fox Pointe Lane SW
Kitchen
5 Beyond Kitchens LLC923 10th Street SW
Kitchen
6 Chladek
Construction LLC245 1st Street NW Elgin
Exterior Remodel amp Addition
SHOWCASE ENTRIES
Sponsored By
RemodelersRemodelers
TOUR ENTRIES
ADMISSION IS FREE
wwwRochesterAreaBuilderscom12 | September 2014
PROJECT KITCHEN AND BATHROOM REMODEL CONTRACTOR BEYOND KITCHENS LLCHOST KATIE DARVAL PROJECT COORDINATORDESIGNER
REMODELING A HOME IS A UNIQUE AND MULTIFACETED CHALLENGE IT TAKES A SPECIAL KIND OF VISION TO LOOK PAST WHAT A ROOM HAS BEEN AND SEE WHAT IT COULD BE IT TAKES A SPECIAL KIND OF DETERMINATION TO OVERCOME THE OBSTACLES THAT ALWAYS COME WHEN YOUrsquoRE TRYING TO FIT SOMETHING NEW INTO A SPACE THAT WAS NOT ORIGINALLY DESIGNED FOR IT AND IT TAKES A SPECIAL KIND OF PERSONALITY TO MAKE A HOMEOWNER FEEL COMFORTABLE WITH YOU ESSENTIALLY MOVING IN AND TURNING THEIR LIVING SPACE INTO YOUR WORK PLACE
Beyond Kitchens LLC has been making those challenges their business for almost 20 years This talented team of women is composed of owner Diane Quinn CKD Christina Jorgensen AKBD and Katie Darval their project coordinator who was kind enough to give me access to the project and answer my questions about it The project inside a lovely home in Southwest Rochester with a striking red door that demands attention and welcomes you inside was about more than just a new look
for the homeowners Work responsibilities for one of the couple mean clocking in from home at all hours of the night to make calls to overseas contacts making storage for a home office very important But the clients also wanted an uncluttered look and for the overall feel of refinement and elegance to remain unspoiled So these workday necessities were given space in cabinetry adjoining the dining room complete with in-drawer outlets and USB ports so that all of their phones tablets and laptops can be tucked away out of site while not in use
To further the goal of uninterrupted elegance Beyond Kitchens went the extra mile by acquiring custom outlet and switch covers made of real stone As Katie
WwwRochesterAreaBuilderscomSeptember 2014 | 13
says ldquothe backsplash and lighting are the jewelry to the roomrdquo Using these stone covers means that the outlets and switches wonrsquot be the first thing you notice when you enter the room While they are beautifully made their real purpose is not to stand out but to blend in and to let the overall beauty of the room shine without distraction Itrsquos their attention to small details like this that truly show Beyond Kitchensrsquo ability to create a room that not only wows you on first sight but also ensures the homeowners will be happy with the project years down the road
Of course working with the homeowners and what they bring to the table is crucial When you are building a new home you can design a kitchen pick the cabinets you like best and then choose the flooring and appliances that best accent it Remodeling is rarely that simple In this case the kitchen already had beautiful hardwood floors that only needed to be restored The homeowners had also recently purchased black appliances so those needed to be allowed for in the design as well Katie says they decided to use off white cabinets in most of the kitchen to create a more spacious feel while incorporating the
black appliances with a wall of dark wood cabinetry They also enhanced the feeling of spaciousness by extending the tile backsplash all the way up to the ceiling above the range Creating space whether through i l lus ion or through creative hidden storage is often a necessity in older homes
Another necessity in older homes is dealing with those unpredictable obstacles you encounter I say unpredictable because you never know what theyrsquore going to be but you can always predict that yoursquoll run into some And the most common time for obstacles to show up is during demolition Exhibit A the Soffits As Katie notes sometimes soffits are included purely as a cosmetic feature Other times they are utilized to as a space for plumbing or electrical runs The vision for this project included removing the soffits and having the upper cabinets extend all the way to the ceiling (yet another trick to add a feeling of spacious grandeur
to the room) So of course f o l l o w i n g Murphyrsquos law these soffits c o n t a i n e d p i p i n g a n d drains from
an upstairs bathroom meaning some significant reworking of those pipes and drains had to be done to achieve their goal In the end though it was wort the trouble Oh the joys of remodeling
wwwRochesterAreaBuilderscom14 | September 2014
With all of the difficulty inherent in a remodeling project it might seem like a miracle that the contractor and the homeowner are still on speaking terms by the end of it Even if everything goes smoothly you are still interrupting the daily routine of someone for weeks or months on end But having had a chance to chat with the homeowner on my last visit after the project was complete I can report that miracles can indeed happen She had nothing but praise for Katie the team at Beyond Kitchens and all their subcontractors I too think the project was beautifully done and Irsquom happy to have been invited into their home
If yoursquod like to see more of Beyond Kitchens LLCrsquos work you can check out their website at wwwbeyondkitchenscom and make plans to visit their Remodelers Tour project located at 923 10th St SW on September 13th and 14th
Other RAB members who worked on this project include
bull Brandrup Builders
bull Bright Ideas
bull Creative Hardwood Floors
bull DeGeus Tile amp Granite
bull Ferguson Enterprises
bull Innovative Surfaces
bull Larry Newman Drywall
bull Kuntz Electric Inc
bull Top Shop of Rochester Inc
WwwRochesterAreaBuilderscomSeptember 2014 | 15
ldquoHey Matt what can you tell me about the current crop of local candidatesrdquo
Itrsquos August That means that summer is coming to a close department stores have had their ldquoback-to-schoolrdquo sections of their stores open for 6 weeks and election season is just ramping up This year we have a variety of elections taking place in Rochester Mayor City Council School Board Senator Governor US House of Representatives and State Auditor just to name a few In this monthrsquos edition of HMWUWT I will attempt to give you a little background on each of these races
MAYOR
This race was a little more crowded just a couple days ago There were three candidates Mayor Brede Cindy Maves and Stephanie Kilen On August 12 during the primary election Mayor Brede and Cindy Maves were the top two vote getters and will proceed to the General Election in November Brede received 4757 votes Maves 2473 and Kilen 1926 Look for the big issue in this election to be governmental spending since Maves used to head the Tea Party Patriots in Rochester
CITY COUNCIL WARD 3
This was another race that whittled down to two candidates during the primary Incumbent Bruce Snyder received 375 votes Vickie Anderson 188 and Nick Campion 564 Campion and Snyder both advance to the general election Ward 3 is generally considered to be NW Rochester so make sure to check which ward you live in
SCHOOL BOARD SEAT 5
Jean Marvin advanced out of the primary with 40 of the vote Terry Throndson received 33 of the vote to also advance Nora Dooley with 20 and Matthew Halleck with 7 both failed to advance to the general election
SENATOR
Senator Al Franken won his primary not surprisingly to advance as the Democratic candidate in the general election Also not surprisingly Mike McFadden won the Republican ticket and will challenge Franken in November
GOVERNOR
Jeff Johnson won the Republican primary to challenge Governor Mark Dayton in November Both candidates have ties to Rochester Jeff Johnsonrsquos running mate is former Rochester law-maker Bill Kuisle Mark Daytonrsquos running mate Tina Flint Smith is currently the chair of the Destination Medical Center Corporation
US House of Representatives District 1
Blue Earth businessman Jim Hagedorn pulled off the upset of the primary when he defeated the Republican party-endorsed candidate Aaron Miller Hagedorn will challenge the incumbent Democrat Tim Walz in November
STATE AUDITOR
I know what you are thinking why do we care about the State Auditor race and what does the State Auditor do Well the State Auditor is charged with overseeing more than $20 billion spent annually by local governments in Minnesota The State Auditor does this by performing audits of local government financial statements and by reviewing documents data reports and complaints reported to the Office The reason this race is interesting to me is because of the politicking that took place before the primary Democrat Matt Entenza bypassed the DFL convention and filed to run after the incumbent Rebecca Otto received support from the DFL party Otto defeated Entenza by a 80-20 margin Otto will face Republican Randy Gilbert in November amongst a slate of other candidates
LEARN MORE
As always Rochester Area Builders will be holding our candidate social on September 30 Make sure to come on down to mingle with the candidates and pick their brains about issues that important to you If you have any questions about the upcoming elections or anything at all feel free to email me or give me a call at the office Thanks
Matt
wwwRochesterAreaBuilderscom16 | September 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 August 2014
President Chad Kompelein
Builder VPKC Chermak
Associate VPGeorge Cundy
President ElectMike Paradise
TreasurerGerry Traut
SecretaryKurt Welker
Past PresidentKeith Kylmala
NAHB RepresentativeKathe Ostrom
Theyrsquore HereThe new codes are (finally) out Following a mutli-year process to promulgate the 2012 International Building Code the Minnesota Department of Labor and Industry (DLI) has officially published the final language for the Minnesota Building Code With the final language in hand the Builders Association of Minnesota (BAM) is adjusting and completing seven code guide documents that will be provided to members-only in September The code is slated to be enforced starting January 24 2015
Membership with the builders association is the only way to obtain a copy of these documents and as such BAM will be promoting the code guides ndash and membership ndash to all 13000 licensed contractors If interested in promoting your company statewide these code guides still have sponsorships available More at wwwbamnorgsponsorship-opps Contact Remi Stone at remibamnorg or Katherine Nielsen at katherinenbamnorg with any questions
Creating the code documents is codes expert Ed VonThoma his company Building Knowledge Inc (BKI) and a committee including 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 Thank you to these members for generously donating their time to help perfect the members-only guides
The seven code guide documents are
bull Top 20 Code Changes in the Residential Building Code
bull Top 20 Code Changes in the Energy Code
bull 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
A major benefit of membership these guides are available ONLY to members DLI issues the codes but BAM develops guides on how to implement the new codes The documents will be sent to members and made available on the BAM website optimized for both printing and easy viewing on your mobile devices out in the field
Continuing education courses based on these code guides have been assembled by BKI who is available to teach classes around the state to help members prepare to build to the new code Let your local association know if yoursquod like BKI to teach in your community
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 building industry specific construction contracts More benefits of BAM membership can be found online at wwwbamnorgmembership
WwwRochesterAreaBuilderscomSeptember 2014 | 17
Committee UpdatesAWARDS COMMITTEECHAIRPERSON Les Radcliffe Radcliffe Homes amp Remodeling
This committee is currently meeting to look for ldquospecialrdquo members to recognize for their achievements to the Association in 2014 They will choose a Rising Star - a member who has been very active in their first three years of membership as well as nominating builders and associates to receive the Builder amp Associate of the Year Award and for the company who has supported the association The Cornerstone Award In this monthrsquos newsletter you have the opportunity to nominate someone whom you have noticed working extra hard for RAB Please download the Form fill it out and return it to the RAB office
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 2014Jennifer Maass GerhardsMARKETINGRob 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
ROCHESTER AREA BUILDERS INCASKS YOU TO MAKE NOMINATIONS FOR THE
THESE MEMBERS MUST BE DEDICATED TO THE BUILDING INDUSTRY ACTIVE PARTICIPANTS OF THE ASSOCIATION
ENTHUSIASTIC
The recipients of these three awards will be chosen by the Board of Directors at their December meeting and will be awarded at the January General Membership Meeting
Previous Winners - Builders1992 Robert Gill and Richard Hanson and Joe Weis 1993 Frank Kottschade 1994 Roger Lubahn 1995 Jay Burke 1996 Dan Severson 1997 Les Radcliffe 1998 Bob DeWitz and Mark Stinson 1999 David Higgins 2000 Jackie Hanson 2001 Aaron Benike 2002 Gary Zander 2003 John McGuine 2004 Mike Coats 2005 Steve Buss 2006 Mike Hortop 2007 Jodi Hruska 2008 Jay Burke 2009 Kevin Reckinger 2010 Paul Gregor 2011 Mike Larson 2012 Kathy Einck 2013 Les Radcliffe
Previous Winners - Associates1985 Don Soderberg 1987 Robert Suk 1988 Jim Buchan 1989 Mary Moylan 1990 Craig Wendland 1991 Ron Bailey 1992 Bill Tointon 1993 Wayne Lewis 1994 Donna Scott Herriot 1995 Julie Timmerman 1996 John Arnold 1997 Steve Christopherson 1998 Brent Buchan 1999 Kim Zimmer 2000 Julie Praus 2001 Karin Buechler 2002 Dennis Hanson 2003 Carla Kilpatrick 2004 Brent Buchan 2005 Jim Gander 2006 Brian Carlson 2007 John Eischen 2008 Wayne Eisen 2009 Jennifer Maass 2010 Tony Joseph 2011 Patty Hanson 2012 David Kane 2013 Jennifer Maass
Previous Winners - Company 2009 Energy Products amp Design 2010 Knutson Construction 2011 Minnesota Energy Resources 2012 Wendland Utz 2013 Home Federal Savings Bank
Current President and Vice-President are not eligible for selection
I Nominate
Reasons for Nomination
I Nominate
Reasons for Nomination
I Nominate
CLICK HERETO DOWNLOAD
wwwRochesterAreaBuilderscom18 | September 2014
construction fashion expose
c o n s t r u c t i o n f a s h i o n e x p o s e
WwwRochesterAreaBuilderscomSeptember 2014 | 19
Members2014 Commercial Builders Council116 Members as of 63014AB Systems IncAccord Electric IncAdvanced DisposalAlpha Video amp AudioAlvin E Benike IncBEVCOMMThe Blue Book
of Building amp Construction
The Boldt CompanyBraun Intertec
CorporationBriese Iron Works IncBrock White CompanyCO Brown AgencyCambriaCarpet OneCharter
CommunicationsMedia
Chosen Valley Testing Inc
Clayton Thomas Blinds of Rochester
Construction Partnership
CRW architecture + design group inc
Custom AlarmCustom Communications Inc
D2E LLCDonlar Construction
CompanyDoyle Conner CompanyDunham Associates
IncDunlap amp SeegerJE Dunn ConstructionEastwood Bankeci llcElcor Construction IncEnergy Products amp
Design IncEnventisExpert Insulation IncFat Willyrsquos Bar amp GrillFerguson EnterprisesGerhardsGoodin CompanyHaley Comfort Systems
(Authorized FireSide Dealer)
WL Hall CompanyHDR ArchitectureHeartman InsuranceHGA Architects and
EngineersHillerrsquos Flooring AmericaHiMEC at HomeHome Federal Savings
BankHome Improvement
Professionals IncHunt Electric
CorporationInstitute for
Environmental Assessment
PA Johnson Construction LLC
KampM Glass CompanyKane amp Johnson
Architects IncKey Builders IncKnutson Construction
ServicesKomitt Concrete IncKraus-Anderson
Construction CompanyKreofsky Building
SuppliesKruse LumberKuntz Electric Inc
Kwik Trip IncLeitzen Concrete
Products IncMarvin Windows amp
DoorsMavo Systems IncMcGhie amp Betts - a
Division of WSB amp Associates Inc
McGough ConstructionMEC Construction IncMEP AssociatesMerchants BankMerit Contracting IncMidwest Walls LLCMinnesota Energy
Resources CorporationMinnwest BankNickelson Painting IncNorth Star Stone amp
MasonryOlmsted National BankOn Site CompaniesPalmer Soderberg IncPella Windows amp DoorsPeoplersquos Energy
CooperativePompeii Painting IncPrehn Building Sales
IncPremier Bank RochesterProBuild Company LLCReliable Contractors
IncRochester Area
Appraisals LLCRochester Area Econ
Development IncRochester Public
UtilitiesRochester Ready Mix
Concrete CoRochester Sign Service
IncRochester Title amp
Escrow Company IncRSP ArchitectsRyan Electric IncSchoeppner IncSchwab LLCSchwickertrsquos Tecta
America LLCSEH YaggyStantecSterling State BankStructural Design
Group IncSuperior MechanicalTamarack Materials of
Rochester IncThink Mutual BankTonna Mechanical IncTSP Architects amp
EngineersUnited RentalsThe Urban Studio LLCValor Mechanical IncVeit CompaniesVertical Limit
ConstructionViking Automatic
Sprinkler CompanyViking Electric SupplyWeis Builders IncWells Fargo Bank
Minnesota NAWendland UtzWest BankWHKS amp CompanyWHV IncWidseth Smith Nolting
BUILDERS COUNCILCOMMERCIAL
a d i v i s i o n o f R o c h e s t e r A r e a B u i l d e r s I n c
EXECUTIVE COMMITTEEChairperson Chris Terry Knutson Construction ServicesVice Chairperson Nick Leimer Kraus-Anderson Construction CompanyPast Chairperson Sue Hanson Rochester Title amp Escrow Company IncMembers-at-LargeJohn Hill Schwab LLCShaun Knode AB Systems IncJohn Kuntz Kuntz Electric IncLevi Kaiser AE Benike IncMatt Mohs WHKS amp CompanyMike Nordstrom Superior Mechanical
August Meeting Photos
New Member
Clayton Thomas Blinds of RochesterDarlene Drew
2400 Country Club Rd SWRochester MN 55902
507-258-4457
August MEETINGDATE Wednesday August 6th 2014TIME Registration amp Networking at 700 AM Program at 730 AMPLACE Ramada Hotel amp Conference CenterPROGRAM World Fair 2023SPEAKERS Mark Ritchie Minnesota Secretary of State
wwwRochesterAreaBuilderscom20 | September 2014
2014 VALUATION 2013 VALUATION
New Residential Single Family Dwelling 30 7389265 39 9441463
Townhome Dwelling 8 1224172 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 45 283519 33 160271
Room Addition 3 85012 4 177306
Porch Additions 1 8000 2 39494
Other Additions 4 38500 2 23940
Basement Finish 18 240045 24 323650
Alterations 41 234327 45 281947
Multi-Family Addition 0 0 4 31620
Multi-Family Alterations 14 151160 6 4615400 New Commercial Assembly (Church) 0 0 0 0
Assembly (General) 0 0 1 2720000
Assembly (RestaurantBar) 0 0 0 0
Business 0 0 0 0
Education 0 0 0 0
FactoryIndustrial 0 0 0 0
Institution 0 0 0 0
Mercantile 0 0 1 580000
Miscelaneous 0 0 0 0
Utility (General) 0 0 1 90000
Residential (CareAssisted Living) 0 0 0 0
Storage (General) 0 0 0 0
Storage (Warehouse) 0 0 0 0 Existing CommercialAddition 3 4313000 2 1214050
Alterations 25 4451261 40 6158997
Structural Shell 0 0 0 0
ldquoWhite Boxrdquo 0 0 0 0
Interior Demolition Only 2 2017000 3 54800
Other Phased Permits 1 6700 0 0
Other ConstructionBusiness Signs 4 10630 12 87202
Advertising Sign 0 0 0 0
Footings amp Foundations 1 76000 1 1100000
Demolition 0 1
Rochester Building Permits July 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
June 81 59 43 36 36 12 26 32 33 41
July 58 36 60 23 21 23 8 39 39 38
TOTAL 397 329 275 178 139 128 102 180 201 192
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 702 506 417 302 274 200 191 299 326 192
Single Family Homes
Year To Date Statistics 2014 2013 NO VALUATION NO VALUATION
Building Permits Issued to Date 1377 199056393 1280 149430856
Single Family Dwelling 186 45041027 201 47362534
Multi-Family Buildings Total Units 39 1 3702052 0 0
Trade Permits Issued to Date 4558 46616612 4145 40187782
Electrical 1573 20801155 1355 18804490
Electrical (Temp Service) 159 46875 188 39500
Mechanical 1187 12309661 1078 10781042
Gas Piping 317 546576 286 263280
Fireplace 237 629268 215 506084
Hydronic System 94 4005425 69 3097653
Plumbing 991 8277652 954 6695793
Total Permits YTD 5935 245673005 5425 189618638
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
WwwRochesterAreaBuilderscomSeptember 2014 | 21
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
JUNE 2014
New Residential NUMBER VALUATION
Single Family 9 1991399
Commercial
Addition 1 89470
Existing Residential
Deck Addition 7 41847
Basement Finish 1 12000
Garage 1 2267
Accessory Building 2 11500
ByronBuilding Permits
JULY 2014
Existing Residential NUMBER VALUATION
Sprinkler System 1 5000
Residing 1 5000
Reroof 5 25000
Deck 2 6000
Mechanical 1 1000
Garage 1 20000
Pine IslandBuilding Permits
wwwRochesterAreaBuilderscom22 | September 2014
In early 2000 the SampP 500 hit 1553 and the tech-heavy NASDAQ surpassed 5000 Two years later the SampP was at 768 and the NASDAQ was at 800 In the process $6 trillion in household wealth was wiped out We now call that period the dot-com bubble About half a decade later we experienced the housing market bubble Interestingly the value of residential real estate destroyed during that crisis was also about $6 trillion Yet the dot-com bubble resulted in a mild recession while the housing bust lead to the Great Recession What was different It turns a major culprit was which households suffered the destruction of wealth
To set the table ponder this During the housing bust retail spending fell 8 from 2007 to 2009 one the largest drops ever By contrast retail spending increased by 5 between 2000 and 2002 Clearly the losses sustained during the dot-com bust had minimal impacts on household spending decisions and thus on the overall economy Here is why
The decline in home prices that began in 2007 was highly concentrated among households with very limited financial resources As a result these now much-poorer households dramatically pulled back on spending and in the process unwittingly helped usher in the Great Recession Remember retail spending is about a quarter of GDP so a decline of 8 over two years reduces GDP by 2 -- a huge amount It is as if these poorer households were the transmission mechanism through which the Great Recession got its energy
Exacerbating and reinforcing this downward spiral was the role of debt or leverage Remember by 2004 or 2005 a large percentage of first-time home buyers had low FICO scores sketchy employment histories
and limited assets To compensate these Alt-A and subprime buyers borrowed heavily with their now highly levered house being their major financial asset For example among the poorest quintile of the population 80 of their net worth is in their house Even among the middle quintile home equity is still 60 of their net worth By borrowing so much just a small decline in house prices could put these buyers upside down and wipe them out Which is exactly what happened and is what turned a recession into the Great Recession Between 2007 and 2010 the bottom 20 of the population saw their net worth fall from about $30000 to zero
By contrast the financial losses sustained during the dot-com bubble were essentially walled off and had relatively little effect on the overall economy This is because stock ownership is concentrated among the wealthy As the wealthy have less debt and more assets they could essentially shrug off the much larger financial losses they sustained yet not have them alter their day-to-day spending decisions Among the wealthiest 20 of the population home equity represents just 25 of their net worth Moreover depression-era federal laws make it hard to borrow more than 50 of the cost of stock purchases thereby limiting the potentially negative role of leverage
In short the home buyers who bought in 2004 and 2005 had limited wealth and had more of it at risk than earlier home buyers When the music stopped they were highly levered and wholly unable to protect themselves That quickly resulted in (among other things) reduced spending which shrank GDP and quickly cascaded into the Great Recession
+++++++++++++++++
All Bubbles Are Not ++++++++++Created Equal + + + + + + + + + + + + + + + + +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
WwwRochesterAreaBuilderscomSeptember 2014 | 23
NONE
MEMBERSHIPS PENDINGNONE
The firms listed below have applied for membership in Rochester Area Builders Inc
MEMBERSHIP TOTAL 451RETENTION RATE 929
As of 63014
WE WELCOME THE FOLLOWING NEW MEMBERS IN AUGUST
Membership InformationMembership Renewals as of 73114
Two to Four Years
Kraus-Anderson Construction Company 2012Electrical Solutions amp Service 2011Energy Panel Structures 2011Lowersquos Home Improvement 2011Minnwest Bank 2011RCTC Carpentry Program 2011Reynolds Design and Construction 2010
Five to Nine Years
Great River Overhead Door 2007Meadow Lakes Builders 2007Rochester International Event Center 2007The Urban Studio LLC 2007Hunt Electric Corporation 2006Otis Custom Homes LLC 2006Larry Newman Drywall 2005Pahl amp Kaye Inc 2005Synergy Products 2005Tradesmen International Inc 2005
Ten to 19 Years
Greg Wellik Construction 2004Morris Concrete Inc 2004AampA Electric amp Underground Inc 2003Advanced Disposal 2002Knutson Construction Services 2002Tagrsquos Drywall Inc 2001Ronningen Roofing Inc 2000Ferguson Enterprises 1998
20 to 24 Years
Bright Ideas 1993Hirshfieldrsquos Decorating Center 1993Brock White Company 1991Dan Severson Builders Inc 1991
25 Years amp More
Gerhards 1988Express Employment Professionals 1985Townsquare Media Rochester 1983Smith Schafer amp Associates Ltd 1982Hayfield Window amp Door Company 1981Quality Overhead Door Company Inc 1981Energy Products amp Design Inc 1980Tom Brogan Heating amp Air Conditioning 1980Alvin E Benike Inc 1979Pella Windows amp Doors 1978Northern Lights amp Furnishings 1976Wells Fargo Home Mortgage 1964Alexander amp Sons Builders 1962
NEW APPLICANTS
CLIFTONLARSONALLEN LLP7389 Airport View Drive SW Suite 100
Rochester MN 55902Phone 507-280-2300Contact Paul Alberts
Associate MemberAccountingConsulting
Sponsored by Joel Alberts AampA Electric amp Underground Inc
DISTINGUISHED HOMES BY MITCH HAGEN LLC3015 18th Avenue SWRochester MN 55902Phone 507- 951-1962Contact Mitch Hagen
Builder MemberResidential Builder amp Remodeler
Sponsored by Brandon Vagt XRG Concepts LLC
LOW VOLTAGE CONTRACTORS
4200 West 76th StreetMinneapolis MN 55435
Phone 952-835-4600Contact Cathy Trast
Associate MemberFire amp Life Safety Integrated Systems Service Provider
Sponsored by John Eckerman The Boldt Company
PACE INTERNATIONAL 3582 Technology Drive NW
Rochester MN 55901Phone 507-424-4900Contact Jim WestraAssociate Member
Commercial Satellite amp Cable Television ProductsSponsored by Jay Burke Heartwood Homes of Rochester Inc
wwwRochesterAreaBuilderscom24 | September 2014
Put your membershipto work nowMoney-saving discounts that benefit yourbusiness your employees and your family
wwwnahborgMA
National Association of Home Builders
R
wwwRochesterAreaBuilderscom10 | September 2014
DATES AND TIMES FOR THE 2014 FALL SHOWCASE OF HOMESFriday Sept 12 Signs to be Picked Up 800 AM ndash 400 PMSaturday Sept 13 Entries Open to Public 1100 AM ndash 500 PMSunday Sept 14 Entries Open to Public 1100 AM ndash 500 PMSaturday Sept 20 Entries Open to Public 1100 AM ndash 500 PMSunday Sept 21 Entries Open to Public 1100 AM ndash 500 PMMonday Sept 22 Signs to be Returned 800 AM ndash 500 PM
1 Med City Builders of Rochester LLC60766 254th Avenue MantorvilleHome
2 Somerby Golf Community943 Somerby Parkway NE ByronDevelopment
3 Summit Custom Homes LLC943 Somerby Parkway NE ByronHome
4 Bigelow Homes LLC488 15th Ave NE ByronHome
5 Countryside Builders LLC1548 Wickford Place NE ByronHome
6 Derby Construction LLC6341 Oak Meadow Lane NWHome
7 Wright Homes Inc5897 Dogwood CourtTownhome
8 Thimijan Custom Homes LLC2326 Granite Circle NWHome
9 JNS Builders2583 Flagstone Lane NWHome
10 Cravath Homes LLC6878 Larkspur ParkwayHome
11 Bigelow amp Lennon Construction6320 Mallard Drive NWHome
12 Bigelow Homes LLC5542 Harvest Lake Drive NWHome
13 DeWitz Home Builders6221 51st Street NWHome
14 Majestic Homes Inc4818 Bishop Lane NWHome
15 Exclusive Home Builders amp Remodelers3609 46th Avenue NWHome
16 MDH Inc ndash Orchard Hills Builders626 Gates Lane SWHome
17 MDH Inc ndash Fox Hill Builders1031 Fox Valley Place SWHome
18 Meadow Lakes Builders3890 Berkshire Road SWHome
19 High Definition Homes LLC1291 Boulder Creek Lane SWHome
20 Craig Swanson Builders Inc2710 Headland Court SWHome
21 Distinguished Homes by Mitch Hagen 3550 Woodstone Drive SWHome
22 Penz Custom Homes Inc3622 Triton Lane SWHome
23 Chris Fritsch Custom Homes LLC3915 Creek View Lane SWHome
24 Thimijan Custom Homes LLC5380 Scenic View Drive SWHome
25 RJ Manemann Custom Homes5406 Scenic View Drive SWHome
26 R amp M Development5448 Scenic View Drive SWHome
ShowcaseofFallFall
SHOWCASE ENTRIES
Sponsored By
WwwRochesterAreaBuilderscomSeptember 2014 | 11
DATES AND TIMES FOR THE 2014 REMODELERS TOURFriday Sept 12 Signs to be Picked Up 800 AM ndash 400 PMSaturday Sept 13 Entries Open to Public 1100 AM ndash 500 PMSunday Sept 14 Entries Open to Public 1100 AM ndash 500 PMMonday Sept 15 Signs to be Returned 800 AM ndash 500 PM
27 Stonebridge Builders5393 Scenic View Drive SWHome
28 Bigelow Homes LLC5530 Leslie Lane SWHome
29 Bigelow Homes LLC2811 Talon Place SETownhome Community
30 R Fleming Construction Inc2529 Tee Time Road SEHome
31 Centurion Ridge LLCCenturion Court NETownhome Community
32 Maplewood Homes LLC1819 Shannon Oaks Blvd NEHome
33 Countryside Builders LLC2348 Coral Ridge Place NETownhome Community
34 Countryside Builders LLC3669 Cameo LaneHome
35 Countryside Builders LLC3519 Jasper Court NEHome
36 Penz Custom Homes Inc3897 Cameo Place NEHome
37 Otis Custom Homes LLC1716 Stone Crest Dr NEHome
38 Majestic Homes Inc3950 Cedarwood Road NEHome
39 Custom Homes by Bradley Inc4053 Stone Point Drive NEHome
40 Chris Fritsch Custom Homes LLC844 Zumbro Woods Lane NW OronocoHome
1 Reynolds Design amp Construction
4905 Oaklawn Lane NWKitchen
2 Master Builders Inc4242 Arboretum Drive NW
Four Season Addition
3 Elias Construction LLC913 3rd Street NW Byron
Whole House Remodel
4 Design Studio B835 Fox Pointe Lane SW
Kitchen
5 Beyond Kitchens LLC923 10th Street SW
Kitchen
6 Chladek
Construction LLC245 1st Street NW Elgin
Exterior Remodel amp Addition
SHOWCASE ENTRIES
Sponsored By
RemodelersRemodelers
TOUR ENTRIES
ADMISSION IS FREE
wwwRochesterAreaBuilderscom12 | September 2014
PROJECT KITCHEN AND BATHROOM REMODEL CONTRACTOR BEYOND KITCHENS LLCHOST KATIE DARVAL PROJECT COORDINATORDESIGNER
REMODELING A HOME IS A UNIQUE AND MULTIFACETED CHALLENGE IT TAKES A SPECIAL KIND OF VISION TO LOOK PAST WHAT A ROOM HAS BEEN AND SEE WHAT IT COULD BE IT TAKES A SPECIAL KIND OF DETERMINATION TO OVERCOME THE OBSTACLES THAT ALWAYS COME WHEN YOUrsquoRE TRYING TO FIT SOMETHING NEW INTO A SPACE THAT WAS NOT ORIGINALLY DESIGNED FOR IT AND IT TAKES A SPECIAL KIND OF PERSONALITY TO MAKE A HOMEOWNER FEEL COMFORTABLE WITH YOU ESSENTIALLY MOVING IN AND TURNING THEIR LIVING SPACE INTO YOUR WORK PLACE
Beyond Kitchens LLC has been making those challenges their business for almost 20 years This talented team of women is composed of owner Diane Quinn CKD Christina Jorgensen AKBD and Katie Darval their project coordinator who was kind enough to give me access to the project and answer my questions about it The project inside a lovely home in Southwest Rochester with a striking red door that demands attention and welcomes you inside was about more than just a new look
for the homeowners Work responsibilities for one of the couple mean clocking in from home at all hours of the night to make calls to overseas contacts making storage for a home office very important But the clients also wanted an uncluttered look and for the overall feel of refinement and elegance to remain unspoiled So these workday necessities were given space in cabinetry adjoining the dining room complete with in-drawer outlets and USB ports so that all of their phones tablets and laptops can be tucked away out of site while not in use
To further the goal of uninterrupted elegance Beyond Kitchens went the extra mile by acquiring custom outlet and switch covers made of real stone As Katie
WwwRochesterAreaBuilderscomSeptember 2014 | 13
says ldquothe backsplash and lighting are the jewelry to the roomrdquo Using these stone covers means that the outlets and switches wonrsquot be the first thing you notice when you enter the room While they are beautifully made their real purpose is not to stand out but to blend in and to let the overall beauty of the room shine without distraction Itrsquos their attention to small details like this that truly show Beyond Kitchensrsquo ability to create a room that not only wows you on first sight but also ensures the homeowners will be happy with the project years down the road
Of course working with the homeowners and what they bring to the table is crucial When you are building a new home you can design a kitchen pick the cabinets you like best and then choose the flooring and appliances that best accent it Remodeling is rarely that simple In this case the kitchen already had beautiful hardwood floors that only needed to be restored The homeowners had also recently purchased black appliances so those needed to be allowed for in the design as well Katie says they decided to use off white cabinets in most of the kitchen to create a more spacious feel while incorporating the
black appliances with a wall of dark wood cabinetry They also enhanced the feeling of spaciousness by extending the tile backsplash all the way up to the ceiling above the range Creating space whether through i l lus ion or through creative hidden storage is often a necessity in older homes
Another necessity in older homes is dealing with those unpredictable obstacles you encounter I say unpredictable because you never know what theyrsquore going to be but you can always predict that yoursquoll run into some And the most common time for obstacles to show up is during demolition Exhibit A the Soffits As Katie notes sometimes soffits are included purely as a cosmetic feature Other times they are utilized to as a space for plumbing or electrical runs The vision for this project included removing the soffits and having the upper cabinets extend all the way to the ceiling (yet another trick to add a feeling of spacious grandeur
to the room) So of course f o l l o w i n g Murphyrsquos law these soffits c o n t a i n e d p i p i n g a n d drains from
an upstairs bathroom meaning some significant reworking of those pipes and drains had to be done to achieve their goal In the end though it was wort the trouble Oh the joys of remodeling
wwwRochesterAreaBuilderscom14 | September 2014
With all of the difficulty inherent in a remodeling project it might seem like a miracle that the contractor and the homeowner are still on speaking terms by the end of it Even if everything goes smoothly you are still interrupting the daily routine of someone for weeks or months on end But having had a chance to chat with the homeowner on my last visit after the project was complete I can report that miracles can indeed happen She had nothing but praise for Katie the team at Beyond Kitchens and all their subcontractors I too think the project was beautifully done and Irsquom happy to have been invited into their home
If yoursquod like to see more of Beyond Kitchens LLCrsquos work you can check out their website at wwwbeyondkitchenscom and make plans to visit their Remodelers Tour project located at 923 10th St SW on September 13th and 14th
Other RAB members who worked on this project include
bull Brandrup Builders
bull Bright Ideas
bull Creative Hardwood Floors
bull DeGeus Tile amp Granite
bull Ferguson Enterprises
bull Innovative Surfaces
bull Larry Newman Drywall
bull Kuntz Electric Inc
bull Top Shop of Rochester Inc
WwwRochesterAreaBuilderscomSeptember 2014 | 15
ldquoHey Matt what can you tell me about the current crop of local candidatesrdquo
Itrsquos August That means that summer is coming to a close department stores have had their ldquoback-to-schoolrdquo sections of their stores open for 6 weeks and election season is just ramping up This year we have a variety of elections taking place in Rochester Mayor City Council School Board Senator Governor US House of Representatives and State Auditor just to name a few In this monthrsquos edition of HMWUWT I will attempt to give you a little background on each of these races
MAYOR
This race was a little more crowded just a couple days ago There were three candidates Mayor Brede Cindy Maves and Stephanie Kilen On August 12 during the primary election Mayor Brede and Cindy Maves were the top two vote getters and will proceed to the General Election in November Brede received 4757 votes Maves 2473 and Kilen 1926 Look for the big issue in this election to be governmental spending since Maves used to head the Tea Party Patriots in Rochester
CITY COUNCIL WARD 3
This was another race that whittled down to two candidates during the primary Incumbent Bruce Snyder received 375 votes Vickie Anderson 188 and Nick Campion 564 Campion and Snyder both advance to the general election Ward 3 is generally considered to be NW Rochester so make sure to check which ward you live in
SCHOOL BOARD SEAT 5
Jean Marvin advanced out of the primary with 40 of the vote Terry Throndson received 33 of the vote to also advance Nora Dooley with 20 and Matthew Halleck with 7 both failed to advance to the general election
SENATOR
Senator Al Franken won his primary not surprisingly to advance as the Democratic candidate in the general election Also not surprisingly Mike McFadden won the Republican ticket and will challenge Franken in November
GOVERNOR
Jeff Johnson won the Republican primary to challenge Governor Mark Dayton in November Both candidates have ties to Rochester Jeff Johnsonrsquos running mate is former Rochester law-maker Bill Kuisle Mark Daytonrsquos running mate Tina Flint Smith is currently the chair of the Destination Medical Center Corporation
US House of Representatives District 1
Blue Earth businessman Jim Hagedorn pulled off the upset of the primary when he defeated the Republican party-endorsed candidate Aaron Miller Hagedorn will challenge the incumbent Democrat Tim Walz in November
STATE AUDITOR
I know what you are thinking why do we care about the State Auditor race and what does the State Auditor do Well the State Auditor is charged with overseeing more than $20 billion spent annually by local governments in Minnesota The State Auditor does this by performing audits of local government financial statements and by reviewing documents data reports and complaints reported to the Office The reason this race is interesting to me is because of the politicking that took place before the primary Democrat Matt Entenza bypassed the DFL convention and filed to run after the incumbent Rebecca Otto received support from the DFL party Otto defeated Entenza by a 80-20 margin Otto will face Republican Randy Gilbert in November amongst a slate of other candidates
LEARN MORE
As always Rochester Area Builders will be holding our candidate social on September 30 Make sure to come on down to mingle with the candidates and pick their brains about issues that important to you If you have any questions about the upcoming elections or anything at all feel free to email me or give me a call at the office Thanks
Matt
wwwRochesterAreaBuilderscom16 | September 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 August 2014
President Chad Kompelein
Builder VPKC Chermak
Associate VPGeorge Cundy
President ElectMike Paradise
TreasurerGerry Traut
SecretaryKurt Welker
Past PresidentKeith Kylmala
NAHB RepresentativeKathe Ostrom
Theyrsquore HereThe new codes are (finally) out Following a mutli-year process to promulgate the 2012 International Building Code the Minnesota Department of Labor and Industry (DLI) has officially published the final language for the Minnesota Building Code With the final language in hand the Builders Association of Minnesota (BAM) is adjusting and completing seven code guide documents that will be provided to members-only in September The code is slated to be enforced starting January 24 2015
Membership with the builders association is the only way to obtain a copy of these documents and as such BAM will be promoting the code guides ndash and membership ndash to all 13000 licensed contractors If interested in promoting your company statewide these code guides still have sponsorships available More at wwwbamnorgsponsorship-opps Contact Remi Stone at remibamnorg or Katherine Nielsen at katherinenbamnorg with any questions
Creating the code documents is codes expert Ed VonThoma his company Building Knowledge Inc (BKI) and a committee including 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 Thank you to these members for generously donating their time to help perfect the members-only guides
The seven code guide documents are
bull Top 20 Code Changes in the Residential Building Code
bull Top 20 Code Changes in the Energy Code
bull 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
A major benefit of membership these guides are available ONLY to members DLI issues the codes but BAM develops guides on how to implement the new codes The documents will be sent to members and made available on the BAM website optimized for both printing and easy viewing on your mobile devices out in the field
Continuing education courses based on these code guides have been assembled by BKI who is available to teach classes around the state to help members prepare to build to the new code Let your local association know if yoursquod like BKI to teach in your community
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 building industry specific construction contracts More benefits of BAM membership can be found online at wwwbamnorgmembership
WwwRochesterAreaBuilderscomSeptember 2014 | 17
Committee UpdatesAWARDS COMMITTEECHAIRPERSON Les Radcliffe Radcliffe Homes amp Remodeling
This committee is currently meeting to look for ldquospecialrdquo members to recognize for their achievements to the Association in 2014 They will choose a Rising Star - a member who has been very active in their first three years of membership as well as nominating builders and associates to receive the Builder amp Associate of the Year Award and for the company who has supported the association The Cornerstone Award In this monthrsquos newsletter you have the opportunity to nominate someone whom you have noticed working extra hard for RAB Please download the Form fill it out and return it to the RAB office
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 2014Jennifer Maass GerhardsMARKETINGRob 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
ROCHESTER AREA BUILDERS INCASKS YOU TO MAKE NOMINATIONS FOR THE
THESE MEMBERS MUST BE DEDICATED TO THE BUILDING INDUSTRY ACTIVE PARTICIPANTS OF THE ASSOCIATION
ENTHUSIASTIC
The recipients of these three awards will be chosen by the Board of Directors at their December meeting and will be awarded at the January General Membership Meeting
Previous Winners - Builders1992 Robert Gill and Richard Hanson and Joe Weis 1993 Frank Kottschade 1994 Roger Lubahn 1995 Jay Burke 1996 Dan Severson 1997 Les Radcliffe 1998 Bob DeWitz and Mark Stinson 1999 David Higgins 2000 Jackie Hanson 2001 Aaron Benike 2002 Gary Zander 2003 John McGuine 2004 Mike Coats 2005 Steve Buss 2006 Mike Hortop 2007 Jodi Hruska 2008 Jay Burke 2009 Kevin Reckinger 2010 Paul Gregor 2011 Mike Larson 2012 Kathy Einck 2013 Les Radcliffe
Previous Winners - Associates1985 Don Soderberg 1987 Robert Suk 1988 Jim Buchan 1989 Mary Moylan 1990 Craig Wendland 1991 Ron Bailey 1992 Bill Tointon 1993 Wayne Lewis 1994 Donna Scott Herriot 1995 Julie Timmerman 1996 John Arnold 1997 Steve Christopherson 1998 Brent Buchan 1999 Kim Zimmer 2000 Julie Praus 2001 Karin Buechler 2002 Dennis Hanson 2003 Carla Kilpatrick 2004 Brent Buchan 2005 Jim Gander 2006 Brian Carlson 2007 John Eischen 2008 Wayne Eisen 2009 Jennifer Maass 2010 Tony Joseph 2011 Patty Hanson 2012 David Kane 2013 Jennifer Maass
Previous Winners - Company 2009 Energy Products amp Design 2010 Knutson Construction 2011 Minnesota Energy Resources 2012 Wendland Utz 2013 Home Federal Savings Bank
Current President and Vice-President are not eligible for selection
I Nominate
Reasons for Nomination
I Nominate
Reasons for Nomination
I Nominate
CLICK HERETO DOWNLOAD
wwwRochesterAreaBuilderscom18 | September 2014
construction fashion expose
c o n s t r u c t i o n f a s h i o n e x p o s e
WwwRochesterAreaBuilderscomSeptember 2014 | 19
Members2014 Commercial Builders Council116 Members as of 63014AB Systems IncAccord Electric IncAdvanced DisposalAlpha Video amp AudioAlvin E Benike IncBEVCOMMThe Blue Book
of Building amp Construction
The Boldt CompanyBraun Intertec
CorporationBriese Iron Works IncBrock White CompanyCO Brown AgencyCambriaCarpet OneCharter
CommunicationsMedia
Chosen Valley Testing Inc
Clayton Thomas Blinds of Rochester
Construction Partnership
CRW architecture + design group inc
Custom AlarmCustom Communications Inc
D2E LLCDonlar Construction
CompanyDoyle Conner CompanyDunham Associates
IncDunlap amp SeegerJE Dunn ConstructionEastwood Bankeci llcElcor Construction IncEnergy Products amp
Design IncEnventisExpert Insulation IncFat Willyrsquos Bar amp GrillFerguson EnterprisesGerhardsGoodin CompanyHaley Comfort Systems
(Authorized FireSide Dealer)
WL Hall CompanyHDR ArchitectureHeartman InsuranceHGA Architects and
EngineersHillerrsquos Flooring AmericaHiMEC at HomeHome Federal Savings
BankHome Improvement
Professionals IncHunt Electric
CorporationInstitute for
Environmental Assessment
PA Johnson Construction LLC
KampM Glass CompanyKane amp Johnson
Architects IncKey Builders IncKnutson Construction
ServicesKomitt Concrete IncKraus-Anderson
Construction CompanyKreofsky Building
SuppliesKruse LumberKuntz Electric Inc
Kwik Trip IncLeitzen Concrete
Products IncMarvin Windows amp
DoorsMavo Systems IncMcGhie amp Betts - a
Division of WSB amp Associates Inc
McGough ConstructionMEC Construction IncMEP AssociatesMerchants BankMerit Contracting IncMidwest Walls LLCMinnesota Energy
Resources CorporationMinnwest BankNickelson Painting IncNorth Star Stone amp
MasonryOlmsted National BankOn Site CompaniesPalmer Soderberg IncPella Windows amp DoorsPeoplersquos Energy
CooperativePompeii Painting IncPrehn Building Sales
IncPremier Bank RochesterProBuild Company LLCReliable Contractors
IncRochester Area
Appraisals LLCRochester Area Econ
Development IncRochester Public
UtilitiesRochester Ready Mix
Concrete CoRochester Sign Service
IncRochester Title amp
Escrow Company IncRSP ArchitectsRyan Electric IncSchoeppner IncSchwab LLCSchwickertrsquos Tecta
America LLCSEH YaggyStantecSterling State BankStructural Design
Group IncSuperior MechanicalTamarack Materials of
Rochester IncThink Mutual BankTonna Mechanical IncTSP Architects amp
EngineersUnited RentalsThe Urban Studio LLCValor Mechanical IncVeit CompaniesVertical Limit
ConstructionViking Automatic
Sprinkler CompanyViking Electric SupplyWeis Builders IncWells Fargo Bank
Minnesota NAWendland UtzWest BankWHKS amp CompanyWHV IncWidseth Smith Nolting
BUILDERS COUNCILCOMMERCIAL
a d i v i s i o n o f R o c h e s t e r A r e a B u i l d e r s I n c
EXECUTIVE COMMITTEEChairperson Chris Terry Knutson Construction ServicesVice Chairperson Nick Leimer Kraus-Anderson Construction CompanyPast Chairperson Sue Hanson Rochester Title amp Escrow Company IncMembers-at-LargeJohn Hill Schwab LLCShaun Knode AB Systems IncJohn Kuntz Kuntz Electric IncLevi Kaiser AE Benike IncMatt Mohs WHKS amp CompanyMike Nordstrom Superior Mechanical
August Meeting Photos
New Member
Clayton Thomas Blinds of RochesterDarlene Drew
2400 Country Club Rd SWRochester MN 55902
507-258-4457
August MEETINGDATE Wednesday August 6th 2014TIME Registration amp Networking at 700 AM Program at 730 AMPLACE Ramada Hotel amp Conference CenterPROGRAM World Fair 2023SPEAKERS Mark Ritchie Minnesota Secretary of State
wwwRochesterAreaBuilderscom20 | September 2014
2014 VALUATION 2013 VALUATION
New Residential Single Family Dwelling 30 7389265 39 9441463
Townhome Dwelling 8 1224172 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 45 283519 33 160271
Room Addition 3 85012 4 177306
Porch Additions 1 8000 2 39494
Other Additions 4 38500 2 23940
Basement Finish 18 240045 24 323650
Alterations 41 234327 45 281947
Multi-Family Addition 0 0 4 31620
Multi-Family Alterations 14 151160 6 4615400 New Commercial Assembly (Church) 0 0 0 0
Assembly (General) 0 0 1 2720000
Assembly (RestaurantBar) 0 0 0 0
Business 0 0 0 0
Education 0 0 0 0
FactoryIndustrial 0 0 0 0
Institution 0 0 0 0
Mercantile 0 0 1 580000
Miscelaneous 0 0 0 0
Utility (General) 0 0 1 90000
Residential (CareAssisted Living) 0 0 0 0
Storage (General) 0 0 0 0
Storage (Warehouse) 0 0 0 0 Existing CommercialAddition 3 4313000 2 1214050
Alterations 25 4451261 40 6158997
Structural Shell 0 0 0 0
ldquoWhite Boxrdquo 0 0 0 0
Interior Demolition Only 2 2017000 3 54800
Other Phased Permits 1 6700 0 0
Other ConstructionBusiness Signs 4 10630 12 87202
Advertising Sign 0 0 0 0
Footings amp Foundations 1 76000 1 1100000
Demolition 0 1
Rochester Building Permits July 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
June 81 59 43 36 36 12 26 32 33 41
July 58 36 60 23 21 23 8 39 39 38
TOTAL 397 329 275 178 139 128 102 180 201 192
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 702 506 417 302 274 200 191 299 326 192
Single Family Homes
Year To Date Statistics 2014 2013 NO VALUATION NO VALUATION
Building Permits Issued to Date 1377 199056393 1280 149430856
Single Family Dwelling 186 45041027 201 47362534
Multi-Family Buildings Total Units 39 1 3702052 0 0
Trade Permits Issued to Date 4558 46616612 4145 40187782
Electrical 1573 20801155 1355 18804490
Electrical (Temp Service) 159 46875 188 39500
Mechanical 1187 12309661 1078 10781042
Gas Piping 317 546576 286 263280
Fireplace 237 629268 215 506084
Hydronic System 94 4005425 69 3097653
Plumbing 991 8277652 954 6695793
Total Permits YTD 5935 245673005 5425 189618638
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
WwwRochesterAreaBuilderscomSeptember 2014 | 21
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
JUNE 2014
New Residential NUMBER VALUATION
Single Family 9 1991399
Commercial
Addition 1 89470
Existing Residential
Deck Addition 7 41847
Basement Finish 1 12000
Garage 1 2267
Accessory Building 2 11500
ByronBuilding Permits
JULY 2014
Existing Residential NUMBER VALUATION
Sprinkler System 1 5000
Residing 1 5000
Reroof 5 25000
Deck 2 6000
Mechanical 1 1000
Garage 1 20000
Pine IslandBuilding Permits
wwwRochesterAreaBuilderscom22 | September 2014
In early 2000 the SampP 500 hit 1553 and the tech-heavy NASDAQ surpassed 5000 Two years later the SampP was at 768 and the NASDAQ was at 800 In the process $6 trillion in household wealth was wiped out We now call that period the dot-com bubble About half a decade later we experienced the housing market bubble Interestingly the value of residential real estate destroyed during that crisis was also about $6 trillion Yet the dot-com bubble resulted in a mild recession while the housing bust lead to the Great Recession What was different It turns a major culprit was which households suffered the destruction of wealth
To set the table ponder this During the housing bust retail spending fell 8 from 2007 to 2009 one the largest drops ever By contrast retail spending increased by 5 between 2000 and 2002 Clearly the losses sustained during the dot-com bust had minimal impacts on household spending decisions and thus on the overall economy Here is why
The decline in home prices that began in 2007 was highly concentrated among households with very limited financial resources As a result these now much-poorer households dramatically pulled back on spending and in the process unwittingly helped usher in the Great Recession Remember retail spending is about a quarter of GDP so a decline of 8 over two years reduces GDP by 2 -- a huge amount It is as if these poorer households were the transmission mechanism through which the Great Recession got its energy
Exacerbating and reinforcing this downward spiral was the role of debt or leverage Remember by 2004 or 2005 a large percentage of first-time home buyers had low FICO scores sketchy employment histories
and limited assets To compensate these Alt-A and subprime buyers borrowed heavily with their now highly levered house being their major financial asset For example among the poorest quintile of the population 80 of their net worth is in their house Even among the middle quintile home equity is still 60 of their net worth By borrowing so much just a small decline in house prices could put these buyers upside down and wipe them out Which is exactly what happened and is what turned a recession into the Great Recession Between 2007 and 2010 the bottom 20 of the population saw their net worth fall from about $30000 to zero
By contrast the financial losses sustained during the dot-com bubble were essentially walled off and had relatively little effect on the overall economy This is because stock ownership is concentrated among the wealthy As the wealthy have less debt and more assets they could essentially shrug off the much larger financial losses they sustained yet not have them alter their day-to-day spending decisions Among the wealthiest 20 of the population home equity represents just 25 of their net worth Moreover depression-era federal laws make it hard to borrow more than 50 of the cost of stock purchases thereby limiting the potentially negative role of leverage
In short the home buyers who bought in 2004 and 2005 had limited wealth and had more of it at risk than earlier home buyers When the music stopped they were highly levered and wholly unable to protect themselves That quickly resulted in (among other things) reduced spending which shrank GDP and quickly cascaded into the Great Recession
+++++++++++++++++
All Bubbles Are Not ++++++++++Created Equal + + + + + + + + + + + + + + + + +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
WwwRochesterAreaBuilderscomSeptember 2014 | 23
NONE
MEMBERSHIPS PENDINGNONE
The firms listed below have applied for membership in Rochester Area Builders Inc
MEMBERSHIP TOTAL 451RETENTION RATE 929
As of 63014
WE WELCOME THE FOLLOWING NEW MEMBERS IN AUGUST
Membership InformationMembership Renewals as of 73114
Two to Four Years
Kraus-Anderson Construction Company 2012Electrical Solutions amp Service 2011Energy Panel Structures 2011Lowersquos Home Improvement 2011Minnwest Bank 2011RCTC Carpentry Program 2011Reynolds Design and Construction 2010
Five to Nine Years
Great River Overhead Door 2007Meadow Lakes Builders 2007Rochester International Event Center 2007The Urban Studio LLC 2007Hunt Electric Corporation 2006Otis Custom Homes LLC 2006Larry Newman Drywall 2005Pahl amp Kaye Inc 2005Synergy Products 2005Tradesmen International Inc 2005
Ten to 19 Years
Greg Wellik Construction 2004Morris Concrete Inc 2004AampA Electric amp Underground Inc 2003Advanced Disposal 2002Knutson Construction Services 2002Tagrsquos Drywall Inc 2001Ronningen Roofing Inc 2000Ferguson Enterprises 1998
20 to 24 Years
Bright Ideas 1993Hirshfieldrsquos Decorating Center 1993Brock White Company 1991Dan Severson Builders Inc 1991
25 Years amp More
Gerhards 1988Express Employment Professionals 1985Townsquare Media Rochester 1983Smith Schafer amp Associates Ltd 1982Hayfield Window amp Door Company 1981Quality Overhead Door Company Inc 1981Energy Products amp Design Inc 1980Tom Brogan Heating amp Air Conditioning 1980Alvin E Benike Inc 1979Pella Windows amp Doors 1978Northern Lights amp Furnishings 1976Wells Fargo Home Mortgage 1964Alexander amp Sons Builders 1962
NEW APPLICANTS
CLIFTONLARSONALLEN LLP7389 Airport View Drive SW Suite 100
Rochester MN 55902Phone 507-280-2300Contact Paul Alberts
Associate MemberAccountingConsulting
Sponsored by Joel Alberts AampA Electric amp Underground Inc
DISTINGUISHED HOMES BY MITCH HAGEN LLC3015 18th Avenue SWRochester MN 55902Phone 507- 951-1962Contact Mitch Hagen
Builder MemberResidential Builder amp Remodeler
Sponsored by Brandon Vagt XRG Concepts LLC
LOW VOLTAGE CONTRACTORS
4200 West 76th StreetMinneapolis MN 55435
Phone 952-835-4600Contact Cathy Trast
Associate MemberFire amp Life Safety Integrated Systems Service Provider
Sponsored by John Eckerman The Boldt Company
PACE INTERNATIONAL 3582 Technology Drive NW
Rochester MN 55901Phone 507-424-4900Contact Jim WestraAssociate Member
Commercial Satellite amp Cable Television ProductsSponsored by Jay Burke Heartwood Homes of Rochester Inc
wwwRochesterAreaBuilderscom24 | September 2014
Put your membershipto work nowMoney-saving discounts that benefit yourbusiness your employees and your family
wwwnahborgMA
National Association of Home Builders
R
WwwRochesterAreaBuilderscomSeptember 2014 | 11
DATES AND TIMES FOR THE 2014 REMODELERS TOURFriday Sept 12 Signs to be Picked Up 800 AM ndash 400 PMSaturday Sept 13 Entries Open to Public 1100 AM ndash 500 PMSunday Sept 14 Entries Open to Public 1100 AM ndash 500 PMMonday Sept 15 Signs to be Returned 800 AM ndash 500 PM
27 Stonebridge Builders5393 Scenic View Drive SWHome
28 Bigelow Homes LLC5530 Leslie Lane SWHome
29 Bigelow Homes LLC2811 Talon Place SETownhome Community
30 R Fleming Construction Inc2529 Tee Time Road SEHome
31 Centurion Ridge LLCCenturion Court NETownhome Community
32 Maplewood Homes LLC1819 Shannon Oaks Blvd NEHome
33 Countryside Builders LLC2348 Coral Ridge Place NETownhome Community
34 Countryside Builders LLC3669 Cameo LaneHome
35 Countryside Builders LLC3519 Jasper Court NEHome
36 Penz Custom Homes Inc3897 Cameo Place NEHome
37 Otis Custom Homes LLC1716 Stone Crest Dr NEHome
38 Majestic Homes Inc3950 Cedarwood Road NEHome
39 Custom Homes by Bradley Inc4053 Stone Point Drive NEHome
40 Chris Fritsch Custom Homes LLC844 Zumbro Woods Lane NW OronocoHome
1 Reynolds Design amp Construction
4905 Oaklawn Lane NWKitchen
2 Master Builders Inc4242 Arboretum Drive NW
Four Season Addition
3 Elias Construction LLC913 3rd Street NW Byron
Whole House Remodel
4 Design Studio B835 Fox Pointe Lane SW
Kitchen
5 Beyond Kitchens LLC923 10th Street SW
Kitchen
6 Chladek
Construction LLC245 1st Street NW Elgin
Exterior Remodel amp Addition
SHOWCASE ENTRIES
Sponsored By
RemodelersRemodelers
TOUR ENTRIES
ADMISSION IS FREE
wwwRochesterAreaBuilderscom12 | September 2014
PROJECT KITCHEN AND BATHROOM REMODEL CONTRACTOR BEYOND KITCHENS LLCHOST KATIE DARVAL PROJECT COORDINATORDESIGNER
REMODELING A HOME IS A UNIQUE AND MULTIFACETED CHALLENGE IT TAKES A SPECIAL KIND OF VISION TO LOOK PAST WHAT A ROOM HAS BEEN AND SEE WHAT IT COULD BE IT TAKES A SPECIAL KIND OF DETERMINATION TO OVERCOME THE OBSTACLES THAT ALWAYS COME WHEN YOUrsquoRE TRYING TO FIT SOMETHING NEW INTO A SPACE THAT WAS NOT ORIGINALLY DESIGNED FOR IT AND IT TAKES A SPECIAL KIND OF PERSONALITY TO MAKE A HOMEOWNER FEEL COMFORTABLE WITH YOU ESSENTIALLY MOVING IN AND TURNING THEIR LIVING SPACE INTO YOUR WORK PLACE
Beyond Kitchens LLC has been making those challenges their business for almost 20 years This talented team of women is composed of owner Diane Quinn CKD Christina Jorgensen AKBD and Katie Darval their project coordinator who was kind enough to give me access to the project and answer my questions about it The project inside a lovely home in Southwest Rochester with a striking red door that demands attention and welcomes you inside was about more than just a new look
for the homeowners Work responsibilities for one of the couple mean clocking in from home at all hours of the night to make calls to overseas contacts making storage for a home office very important But the clients also wanted an uncluttered look and for the overall feel of refinement and elegance to remain unspoiled So these workday necessities were given space in cabinetry adjoining the dining room complete with in-drawer outlets and USB ports so that all of their phones tablets and laptops can be tucked away out of site while not in use
To further the goal of uninterrupted elegance Beyond Kitchens went the extra mile by acquiring custom outlet and switch covers made of real stone As Katie
WwwRochesterAreaBuilderscomSeptember 2014 | 13
says ldquothe backsplash and lighting are the jewelry to the roomrdquo Using these stone covers means that the outlets and switches wonrsquot be the first thing you notice when you enter the room While they are beautifully made their real purpose is not to stand out but to blend in and to let the overall beauty of the room shine without distraction Itrsquos their attention to small details like this that truly show Beyond Kitchensrsquo ability to create a room that not only wows you on first sight but also ensures the homeowners will be happy with the project years down the road
Of course working with the homeowners and what they bring to the table is crucial When you are building a new home you can design a kitchen pick the cabinets you like best and then choose the flooring and appliances that best accent it Remodeling is rarely that simple In this case the kitchen already had beautiful hardwood floors that only needed to be restored The homeowners had also recently purchased black appliances so those needed to be allowed for in the design as well Katie says they decided to use off white cabinets in most of the kitchen to create a more spacious feel while incorporating the
black appliances with a wall of dark wood cabinetry They also enhanced the feeling of spaciousness by extending the tile backsplash all the way up to the ceiling above the range Creating space whether through i l lus ion or through creative hidden storage is often a necessity in older homes
Another necessity in older homes is dealing with those unpredictable obstacles you encounter I say unpredictable because you never know what theyrsquore going to be but you can always predict that yoursquoll run into some And the most common time for obstacles to show up is during demolition Exhibit A the Soffits As Katie notes sometimes soffits are included purely as a cosmetic feature Other times they are utilized to as a space for plumbing or electrical runs The vision for this project included removing the soffits and having the upper cabinets extend all the way to the ceiling (yet another trick to add a feeling of spacious grandeur
to the room) So of course f o l l o w i n g Murphyrsquos law these soffits c o n t a i n e d p i p i n g a n d drains from
an upstairs bathroom meaning some significant reworking of those pipes and drains had to be done to achieve their goal In the end though it was wort the trouble Oh the joys of remodeling
wwwRochesterAreaBuilderscom14 | September 2014
With all of the difficulty inherent in a remodeling project it might seem like a miracle that the contractor and the homeowner are still on speaking terms by the end of it Even if everything goes smoothly you are still interrupting the daily routine of someone for weeks or months on end But having had a chance to chat with the homeowner on my last visit after the project was complete I can report that miracles can indeed happen She had nothing but praise for Katie the team at Beyond Kitchens and all their subcontractors I too think the project was beautifully done and Irsquom happy to have been invited into their home
If yoursquod like to see more of Beyond Kitchens LLCrsquos work you can check out their website at wwwbeyondkitchenscom and make plans to visit their Remodelers Tour project located at 923 10th St SW on September 13th and 14th
Other RAB members who worked on this project include
bull Brandrup Builders
bull Bright Ideas
bull Creative Hardwood Floors
bull DeGeus Tile amp Granite
bull Ferguson Enterprises
bull Innovative Surfaces
bull Larry Newman Drywall
bull Kuntz Electric Inc
bull Top Shop of Rochester Inc
WwwRochesterAreaBuilderscomSeptember 2014 | 15
ldquoHey Matt what can you tell me about the current crop of local candidatesrdquo
Itrsquos August That means that summer is coming to a close department stores have had their ldquoback-to-schoolrdquo sections of their stores open for 6 weeks and election season is just ramping up This year we have a variety of elections taking place in Rochester Mayor City Council School Board Senator Governor US House of Representatives and State Auditor just to name a few In this monthrsquos edition of HMWUWT I will attempt to give you a little background on each of these races
MAYOR
This race was a little more crowded just a couple days ago There were three candidates Mayor Brede Cindy Maves and Stephanie Kilen On August 12 during the primary election Mayor Brede and Cindy Maves were the top two vote getters and will proceed to the General Election in November Brede received 4757 votes Maves 2473 and Kilen 1926 Look for the big issue in this election to be governmental spending since Maves used to head the Tea Party Patriots in Rochester
CITY COUNCIL WARD 3
This was another race that whittled down to two candidates during the primary Incumbent Bruce Snyder received 375 votes Vickie Anderson 188 and Nick Campion 564 Campion and Snyder both advance to the general election Ward 3 is generally considered to be NW Rochester so make sure to check which ward you live in
SCHOOL BOARD SEAT 5
Jean Marvin advanced out of the primary with 40 of the vote Terry Throndson received 33 of the vote to also advance Nora Dooley with 20 and Matthew Halleck with 7 both failed to advance to the general election
SENATOR
Senator Al Franken won his primary not surprisingly to advance as the Democratic candidate in the general election Also not surprisingly Mike McFadden won the Republican ticket and will challenge Franken in November
GOVERNOR
Jeff Johnson won the Republican primary to challenge Governor Mark Dayton in November Both candidates have ties to Rochester Jeff Johnsonrsquos running mate is former Rochester law-maker Bill Kuisle Mark Daytonrsquos running mate Tina Flint Smith is currently the chair of the Destination Medical Center Corporation
US House of Representatives District 1
Blue Earth businessman Jim Hagedorn pulled off the upset of the primary when he defeated the Republican party-endorsed candidate Aaron Miller Hagedorn will challenge the incumbent Democrat Tim Walz in November
STATE AUDITOR
I know what you are thinking why do we care about the State Auditor race and what does the State Auditor do Well the State Auditor is charged with overseeing more than $20 billion spent annually by local governments in Minnesota The State Auditor does this by performing audits of local government financial statements and by reviewing documents data reports and complaints reported to the Office The reason this race is interesting to me is because of the politicking that took place before the primary Democrat Matt Entenza bypassed the DFL convention and filed to run after the incumbent Rebecca Otto received support from the DFL party Otto defeated Entenza by a 80-20 margin Otto will face Republican Randy Gilbert in November amongst a slate of other candidates
LEARN MORE
As always Rochester Area Builders will be holding our candidate social on September 30 Make sure to come on down to mingle with the candidates and pick their brains about issues that important to you If you have any questions about the upcoming elections or anything at all feel free to email me or give me a call at the office Thanks
Matt
wwwRochesterAreaBuilderscom16 | September 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 August 2014
President Chad Kompelein
Builder VPKC Chermak
Associate VPGeorge Cundy
President ElectMike Paradise
TreasurerGerry Traut
SecretaryKurt Welker
Past PresidentKeith Kylmala
NAHB RepresentativeKathe Ostrom
Theyrsquore HereThe new codes are (finally) out Following a mutli-year process to promulgate the 2012 International Building Code the Minnesota Department of Labor and Industry (DLI) has officially published the final language for the Minnesota Building Code With the final language in hand the Builders Association of Minnesota (BAM) is adjusting and completing seven code guide documents that will be provided to members-only in September The code is slated to be enforced starting January 24 2015
Membership with the builders association is the only way to obtain a copy of these documents and as such BAM will be promoting the code guides ndash and membership ndash to all 13000 licensed contractors If interested in promoting your company statewide these code guides still have sponsorships available More at wwwbamnorgsponsorship-opps Contact Remi Stone at remibamnorg or Katherine Nielsen at katherinenbamnorg with any questions
Creating the code documents is codes expert Ed VonThoma his company Building Knowledge Inc (BKI) and a committee including 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 Thank you to these members for generously donating their time to help perfect the members-only guides
The seven code guide documents are
bull Top 20 Code Changes in the Residential Building Code
bull Top 20 Code Changes in the Energy Code
bull 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
A major benefit of membership these guides are available ONLY to members DLI issues the codes but BAM develops guides on how to implement the new codes The documents will be sent to members and made available on the BAM website optimized for both printing and easy viewing on your mobile devices out in the field
Continuing education courses based on these code guides have been assembled by BKI who is available to teach classes around the state to help members prepare to build to the new code Let your local association know if yoursquod like BKI to teach in your community
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 building industry specific construction contracts More benefits of BAM membership can be found online at wwwbamnorgmembership
WwwRochesterAreaBuilderscomSeptember 2014 | 17
Committee UpdatesAWARDS COMMITTEECHAIRPERSON Les Radcliffe Radcliffe Homes amp Remodeling
This committee is currently meeting to look for ldquospecialrdquo members to recognize for their achievements to the Association in 2014 They will choose a Rising Star - a member who has been very active in their first three years of membership as well as nominating builders and associates to receive the Builder amp Associate of the Year Award and for the company who has supported the association The Cornerstone Award In this monthrsquos newsletter you have the opportunity to nominate someone whom you have noticed working extra hard for RAB Please download the Form fill it out and return it to the RAB office
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 2014Jennifer Maass GerhardsMARKETINGRob 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
ROCHESTER AREA BUILDERS INCASKS YOU TO MAKE NOMINATIONS FOR THE
THESE MEMBERS MUST BE DEDICATED TO THE BUILDING INDUSTRY ACTIVE PARTICIPANTS OF THE ASSOCIATION
ENTHUSIASTIC
The recipients of these three awards will be chosen by the Board of Directors at their December meeting and will be awarded at the January General Membership Meeting
Previous Winners - Builders1992 Robert Gill and Richard Hanson and Joe Weis 1993 Frank Kottschade 1994 Roger Lubahn 1995 Jay Burke 1996 Dan Severson 1997 Les Radcliffe 1998 Bob DeWitz and Mark Stinson 1999 David Higgins 2000 Jackie Hanson 2001 Aaron Benike 2002 Gary Zander 2003 John McGuine 2004 Mike Coats 2005 Steve Buss 2006 Mike Hortop 2007 Jodi Hruska 2008 Jay Burke 2009 Kevin Reckinger 2010 Paul Gregor 2011 Mike Larson 2012 Kathy Einck 2013 Les Radcliffe
Previous Winners - Associates1985 Don Soderberg 1987 Robert Suk 1988 Jim Buchan 1989 Mary Moylan 1990 Craig Wendland 1991 Ron Bailey 1992 Bill Tointon 1993 Wayne Lewis 1994 Donna Scott Herriot 1995 Julie Timmerman 1996 John Arnold 1997 Steve Christopherson 1998 Brent Buchan 1999 Kim Zimmer 2000 Julie Praus 2001 Karin Buechler 2002 Dennis Hanson 2003 Carla Kilpatrick 2004 Brent Buchan 2005 Jim Gander 2006 Brian Carlson 2007 John Eischen 2008 Wayne Eisen 2009 Jennifer Maass 2010 Tony Joseph 2011 Patty Hanson 2012 David Kane 2013 Jennifer Maass
Previous Winners - Company 2009 Energy Products amp Design 2010 Knutson Construction 2011 Minnesota Energy Resources 2012 Wendland Utz 2013 Home Federal Savings Bank
Current President and Vice-President are not eligible for selection
I Nominate
Reasons for Nomination
I Nominate
Reasons for Nomination
I Nominate
CLICK HERETO DOWNLOAD
wwwRochesterAreaBuilderscom18 | September 2014
construction fashion expose
c o n s t r u c t i o n f a s h i o n e x p o s e
WwwRochesterAreaBuilderscomSeptember 2014 | 19
Members2014 Commercial Builders Council116 Members as of 63014AB Systems IncAccord Electric IncAdvanced DisposalAlpha Video amp AudioAlvin E Benike IncBEVCOMMThe Blue Book
of Building amp Construction
The Boldt CompanyBraun Intertec
CorporationBriese Iron Works IncBrock White CompanyCO Brown AgencyCambriaCarpet OneCharter
CommunicationsMedia
Chosen Valley Testing Inc
Clayton Thomas Blinds of Rochester
Construction Partnership
CRW architecture + design group inc
Custom AlarmCustom Communications Inc
D2E LLCDonlar Construction
CompanyDoyle Conner CompanyDunham Associates
IncDunlap amp SeegerJE Dunn ConstructionEastwood Bankeci llcElcor Construction IncEnergy Products amp
Design IncEnventisExpert Insulation IncFat Willyrsquos Bar amp GrillFerguson EnterprisesGerhardsGoodin CompanyHaley Comfort Systems
(Authorized FireSide Dealer)
WL Hall CompanyHDR ArchitectureHeartman InsuranceHGA Architects and
EngineersHillerrsquos Flooring AmericaHiMEC at HomeHome Federal Savings
BankHome Improvement
Professionals IncHunt Electric
CorporationInstitute for
Environmental Assessment
PA Johnson Construction LLC
KampM Glass CompanyKane amp Johnson
Architects IncKey Builders IncKnutson Construction
ServicesKomitt Concrete IncKraus-Anderson
Construction CompanyKreofsky Building
SuppliesKruse LumberKuntz Electric Inc
Kwik Trip IncLeitzen Concrete
Products IncMarvin Windows amp
DoorsMavo Systems IncMcGhie amp Betts - a
Division of WSB amp Associates Inc
McGough ConstructionMEC Construction IncMEP AssociatesMerchants BankMerit Contracting IncMidwest Walls LLCMinnesota Energy
Resources CorporationMinnwest BankNickelson Painting IncNorth Star Stone amp
MasonryOlmsted National BankOn Site CompaniesPalmer Soderberg IncPella Windows amp DoorsPeoplersquos Energy
CooperativePompeii Painting IncPrehn Building Sales
IncPremier Bank RochesterProBuild Company LLCReliable Contractors
IncRochester Area
Appraisals LLCRochester Area Econ
Development IncRochester Public
UtilitiesRochester Ready Mix
Concrete CoRochester Sign Service
IncRochester Title amp
Escrow Company IncRSP ArchitectsRyan Electric IncSchoeppner IncSchwab LLCSchwickertrsquos Tecta
America LLCSEH YaggyStantecSterling State BankStructural Design
Group IncSuperior MechanicalTamarack Materials of
Rochester IncThink Mutual BankTonna Mechanical IncTSP Architects amp
EngineersUnited RentalsThe Urban Studio LLCValor Mechanical IncVeit CompaniesVertical Limit
ConstructionViking Automatic
Sprinkler CompanyViking Electric SupplyWeis Builders IncWells Fargo Bank
Minnesota NAWendland UtzWest BankWHKS amp CompanyWHV IncWidseth Smith Nolting
BUILDERS COUNCILCOMMERCIAL
a d i v i s i o n o f R o c h e s t e r A r e a B u i l d e r s I n c
EXECUTIVE COMMITTEEChairperson Chris Terry Knutson Construction ServicesVice Chairperson Nick Leimer Kraus-Anderson Construction CompanyPast Chairperson Sue Hanson Rochester Title amp Escrow Company IncMembers-at-LargeJohn Hill Schwab LLCShaun Knode AB Systems IncJohn Kuntz Kuntz Electric IncLevi Kaiser AE Benike IncMatt Mohs WHKS amp CompanyMike Nordstrom Superior Mechanical
August Meeting Photos
New Member
Clayton Thomas Blinds of RochesterDarlene Drew
2400 Country Club Rd SWRochester MN 55902
507-258-4457
August MEETINGDATE Wednesday August 6th 2014TIME Registration amp Networking at 700 AM Program at 730 AMPLACE Ramada Hotel amp Conference CenterPROGRAM World Fair 2023SPEAKERS Mark Ritchie Minnesota Secretary of State
wwwRochesterAreaBuilderscom20 | September 2014
2014 VALUATION 2013 VALUATION
New Residential Single Family Dwelling 30 7389265 39 9441463
Townhome Dwelling 8 1224172 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 45 283519 33 160271
Room Addition 3 85012 4 177306
Porch Additions 1 8000 2 39494
Other Additions 4 38500 2 23940
Basement Finish 18 240045 24 323650
Alterations 41 234327 45 281947
Multi-Family Addition 0 0 4 31620
Multi-Family Alterations 14 151160 6 4615400 New Commercial Assembly (Church) 0 0 0 0
Assembly (General) 0 0 1 2720000
Assembly (RestaurantBar) 0 0 0 0
Business 0 0 0 0
Education 0 0 0 0
FactoryIndustrial 0 0 0 0
Institution 0 0 0 0
Mercantile 0 0 1 580000
Miscelaneous 0 0 0 0
Utility (General) 0 0 1 90000
Residential (CareAssisted Living) 0 0 0 0
Storage (General) 0 0 0 0
Storage (Warehouse) 0 0 0 0 Existing CommercialAddition 3 4313000 2 1214050
Alterations 25 4451261 40 6158997
Structural Shell 0 0 0 0
ldquoWhite Boxrdquo 0 0 0 0
Interior Demolition Only 2 2017000 3 54800
Other Phased Permits 1 6700 0 0
Other ConstructionBusiness Signs 4 10630 12 87202
Advertising Sign 0 0 0 0
Footings amp Foundations 1 76000 1 1100000
Demolition 0 1
Rochester Building Permits July 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
June 81 59 43 36 36 12 26 32 33 41
July 58 36 60 23 21 23 8 39 39 38
TOTAL 397 329 275 178 139 128 102 180 201 192
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 702 506 417 302 274 200 191 299 326 192
Single Family Homes
Year To Date Statistics 2014 2013 NO VALUATION NO VALUATION
Building Permits Issued to Date 1377 199056393 1280 149430856
Single Family Dwelling 186 45041027 201 47362534
Multi-Family Buildings Total Units 39 1 3702052 0 0
Trade Permits Issued to Date 4558 46616612 4145 40187782
Electrical 1573 20801155 1355 18804490
Electrical (Temp Service) 159 46875 188 39500
Mechanical 1187 12309661 1078 10781042
Gas Piping 317 546576 286 263280
Fireplace 237 629268 215 506084
Hydronic System 94 4005425 69 3097653
Plumbing 991 8277652 954 6695793
Total Permits YTD 5935 245673005 5425 189618638
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
WwwRochesterAreaBuilderscomSeptember 2014 | 21
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
JUNE 2014
New Residential NUMBER VALUATION
Single Family 9 1991399
Commercial
Addition 1 89470
Existing Residential
Deck Addition 7 41847
Basement Finish 1 12000
Garage 1 2267
Accessory Building 2 11500
ByronBuilding Permits
JULY 2014
Existing Residential NUMBER VALUATION
Sprinkler System 1 5000
Residing 1 5000
Reroof 5 25000
Deck 2 6000
Mechanical 1 1000
Garage 1 20000
Pine IslandBuilding Permits
wwwRochesterAreaBuilderscom22 | September 2014
In early 2000 the SampP 500 hit 1553 and the tech-heavy NASDAQ surpassed 5000 Two years later the SampP was at 768 and the NASDAQ was at 800 In the process $6 trillion in household wealth was wiped out We now call that period the dot-com bubble About half a decade later we experienced the housing market bubble Interestingly the value of residential real estate destroyed during that crisis was also about $6 trillion Yet the dot-com bubble resulted in a mild recession while the housing bust lead to the Great Recession What was different It turns a major culprit was which households suffered the destruction of wealth
To set the table ponder this During the housing bust retail spending fell 8 from 2007 to 2009 one the largest drops ever By contrast retail spending increased by 5 between 2000 and 2002 Clearly the losses sustained during the dot-com bust had minimal impacts on household spending decisions and thus on the overall economy Here is why
The decline in home prices that began in 2007 was highly concentrated among households with very limited financial resources As a result these now much-poorer households dramatically pulled back on spending and in the process unwittingly helped usher in the Great Recession Remember retail spending is about a quarter of GDP so a decline of 8 over two years reduces GDP by 2 -- a huge amount It is as if these poorer households were the transmission mechanism through which the Great Recession got its energy
Exacerbating and reinforcing this downward spiral was the role of debt or leverage Remember by 2004 or 2005 a large percentage of first-time home buyers had low FICO scores sketchy employment histories
and limited assets To compensate these Alt-A and subprime buyers borrowed heavily with their now highly levered house being their major financial asset For example among the poorest quintile of the population 80 of their net worth is in their house Even among the middle quintile home equity is still 60 of their net worth By borrowing so much just a small decline in house prices could put these buyers upside down and wipe them out Which is exactly what happened and is what turned a recession into the Great Recession Between 2007 and 2010 the bottom 20 of the population saw their net worth fall from about $30000 to zero
By contrast the financial losses sustained during the dot-com bubble were essentially walled off and had relatively little effect on the overall economy This is because stock ownership is concentrated among the wealthy As the wealthy have less debt and more assets they could essentially shrug off the much larger financial losses they sustained yet not have them alter their day-to-day spending decisions Among the wealthiest 20 of the population home equity represents just 25 of their net worth Moreover depression-era federal laws make it hard to borrow more than 50 of the cost of stock purchases thereby limiting the potentially negative role of leverage
In short the home buyers who bought in 2004 and 2005 had limited wealth and had more of it at risk than earlier home buyers When the music stopped they were highly levered and wholly unable to protect themselves That quickly resulted in (among other things) reduced spending which shrank GDP and quickly cascaded into the Great Recession
+++++++++++++++++
All Bubbles Are Not ++++++++++Created Equal + + + + + + + + + + + + + + + + +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
WwwRochesterAreaBuilderscomSeptember 2014 | 23
NONE
MEMBERSHIPS PENDINGNONE
The firms listed below have applied for membership in Rochester Area Builders Inc
MEMBERSHIP TOTAL 451RETENTION RATE 929
As of 63014
WE WELCOME THE FOLLOWING NEW MEMBERS IN AUGUST
Membership InformationMembership Renewals as of 73114
Two to Four Years
Kraus-Anderson Construction Company 2012Electrical Solutions amp Service 2011Energy Panel Structures 2011Lowersquos Home Improvement 2011Minnwest Bank 2011RCTC Carpentry Program 2011Reynolds Design and Construction 2010
Five to Nine Years
Great River Overhead Door 2007Meadow Lakes Builders 2007Rochester International Event Center 2007The Urban Studio LLC 2007Hunt Electric Corporation 2006Otis Custom Homes LLC 2006Larry Newman Drywall 2005Pahl amp Kaye Inc 2005Synergy Products 2005Tradesmen International Inc 2005
Ten to 19 Years
Greg Wellik Construction 2004Morris Concrete Inc 2004AampA Electric amp Underground Inc 2003Advanced Disposal 2002Knutson Construction Services 2002Tagrsquos Drywall Inc 2001Ronningen Roofing Inc 2000Ferguson Enterprises 1998
20 to 24 Years
Bright Ideas 1993Hirshfieldrsquos Decorating Center 1993Brock White Company 1991Dan Severson Builders Inc 1991
25 Years amp More
Gerhards 1988Express Employment Professionals 1985Townsquare Media Rochester 1983Smith Schafer amp Associates Ltd 1982Hayfield Window amp Door Company 1981Quality Overhead Door Company Inc 1981Energy Products amp Design Inc 1980Tom Brogan Heating amp Air Conditioning 1980Alvin E Benike Inc 1979Pella Windows amp Doors 1978Northern Lights amp Furnishings 1976Wells Fargo Home Mortgage 1964Alexander amp Sons Builders 1962
NEW APPLICANTS
CLIFTONLARSONALLEN LLP7389 Airport View Drive SW Suite 100
Rochester MN 55902Phone 507-280-2300Contact Paul Alberts
Associate MemberAccountingConsulting
Sponsored by Joel Alberts AampA Electric amp Underground Inc
DISTINGUISHED HOMES BY MITCH HAGEN LLC3015 18th Avenue SWRochester MN 55902Phone 507- 951-1962Contact Mitch Hagen
Builder MemberResidential Builder amp Remodeler
Sponsored by Brandon Vagt XRG Concepts LLC
LOW VOLTAGE CONTRACTORS
4200 West 76th StreetMinneapolis MN 55435
Phone 952-835-4600Contact Cathy Trast
Associate MemberFire amp Life Safety Integrated Systems Service Provider
Sponsored by John Eckerman The Boldt Company
PACE INTERNATIONAL 3582 Technology Drive NW
Rochester MN 55901Phone 507-424-4900Contact Jim WestraAssociate Member
Commercial Satellite amp Cable Television ProductsSponsored by Jay Burke Heartwood Homes of Rochester Inc
wwwRochesterAreaBuilderscom24 | September 2014
Put your membershipto work nowMoney-saving discounts that benefit yourbusiness your employees and your family
wwwnahborgMA
National Association of Home Builders
R
wwwRochesterAreaBuilderscom12 | September 2014
PROJECT KITCHEN AND BATHROOM REMODEL CONTRACTOR BEYOND KITCHENS LLCHOST KATIE DARVAL PROJECT COORDINATORDESIGNER
REMODELING A HOME IS A UNIQUE AND MULTIFACETED CHALLENGE IT TAKES A SPECIAL KIND OF VISION TO LOOK PAST WHAT A ROOM HAS BEEN AND SEE WHAT IT COULD BE IT TAKES A SPECIAL KIND OF DETERMINATION TO OVERCOME THE OBSTACLES THAT ALWAYS COME WHEN YOUrsquoRE TRYING TO FIT SOMETHING NEW INTO A SPACE THAT WAS NOT ORIGINALLY DESIGNED FOR IT AND IT TAKES A SPECIAL KIND OF PERSONALITY TO MAKE A HOMEOWNER FEEL COMFORTABLE WITH YOU ESSENTIALLY MOVING IN AND TURNING THEIR LIVING SPACE INTO YOUR WORK PLACE
Beyond Kitchens LLC has been making those challenges their business for almost 20 years This talented team of women is composed of owner Diane Quinn CKD Christina Jorgensen AKBD and Katie Darval their project coordinator who was kind enough to give me access to the project and answer my questions about it The project inside a lovely home in Southwest Rochester with a striking red door that demands attention and welcomes you inside was about more than just a new look
for the homeowners Work responsibilities for one of the couple mean clocking in from home at all hours of the night to make calls to overseas contacts making storage for a home office very important But the clients also wanted an uncluttered look and for the overall feel of refinement and elegance to remain unspoiled So these workday necessities were given space in cabinetry adjoining the dining room complete with in-drawer outlets and USB ports so that all of their phones tablets and laptops can be tucked away out of site while not in use
To further the goal of uninterrupted elegance Beyond Kitchens went the extra mile by acquiring custom outlet and switch covers made of real stone As Katie
WwwRochesterAreaBuilderscomSeptember 2014 | 13
says ldquothe backsplash and lighting are the jewelry to the roomrdquo Using these stone covers means that the outlets and switches wonrsquot be the first thing you notice when you enter the room While they are beautifully made their real purpose is not to stand out but to blend in and to let the overall beauty of the room shine without distraction Itrsquos their attention to small details like this that truly show Beyond Kitchensrsquo ability to create a room that not only wows you on first sight but also ensures the homeowners will be happy with the project years down the road
Of course working with the homeowners and what they bring to the table is crucial When you are building a new home you can design a kitchen pick the cabinets you like best and then choose the flooring and appliances that best accent it Remodeling is rarely that simple In this case the kitchen already had beautiful hardwood floors that only needed to be restored The homeowners had also recently purchased black appliances so those needed to be allowed for in the design as well Katie says they decided to use off white cabinets in most of the kitchen to create a more spacious feel while incorporating the
black appliances with a wall of dark wood cabinetry They also enhanced the feeling of spaciousness by extending the tile backsplash all the way up to the ceiling above the range Creating space whether through i l lus ion or through creative hidden storage is often a necessity in older homes
Another necessity in older homes is dealing with those unpredictable obstacles you encounter I say unpredictable because you never know what theyrsquore going to be but you can always predict that yoursquoll run into some And the most common time for obstacles to show up is during demolition Exhibit A the Soffits As Katie notes sometimes soffits are included purely as a cosmetic feature Other times they are utilized to as a space for plumbing or electrical runs The vision for this project included removing the soffits and having the upper cabinets extend all the way to the ceiling (yet another trick to add a feeling of spacious grandeur
to the room) So of course f o l l o w i n g Murphyrsquos law these soffits c o n t a i n e d p i p i n g a n d drains from
an upstairs bathroom meaning some significant reworking of those pipes and drains had to be done to achieve their goal In the end though it was wort the trouble Oh the joys of remodeling
wwwRochesterAreaBuilderscom14 | September 2014
With all of the difficulty inherent in a remodeling project it might seem like a miracle that the contractor and the homeowner are still on speaking terms by the end of it Even if everything goes smoothly you are still interrupting the daily routine of someone for weeks or months on end But having had a chance to chat with the homeowner on my last visit after the project was complete I can report that miracles can indeed happen She had nothing but praise for Katie the team at Beyond Kitchens and all their subcontractors I too think the project was beautifully done and Irsquom happy to have been invited into their home
If yoursquod like to see more of Beyond Kitchens LLCrsquos work you can check out their website at wwwbeyondkitchenscom and make plans to visit their Remodelers Tour project located at 923 10th St SW on September 13th and 14th
Other RAB members who worked on this project include
bull Brandrup Builders
bull Bright Ideas
bull Creative Hardwood Floors
bull DeGeus Tile amp Granite
bull Ferguson Enterprises
bull Innovative Surfaces
bull Larry Newman Drywall
bull Kuntz Electric Inc
bull Top Shop of Rochester Inc
WwwRochesterAreaBuilderscomSeptember 2014 | 15
ldquoHey Matt what can you tell me about the current crop of local candidatesrdquo
Itrsquos August That means that summer is coming to a close department stores have had their ldquoback-to-schoolrdquo sections of their stores open for 6 weeks and election season is just ramping up This year we have a variety of elections taking place in Rochester Mayor City Council School Board Senator Governor US House of Representatives and State Auditor just to name a few In this monthrsquos edition of HMWUWT I will attempt to give you a little background on each of these races
MAYOR
This race was a little more crowded just a couple days ago There were three candidates Mayor Brede Cindy Maves and Stephanie Kilen On August 12 during the primary election Mayor Brede and Cindy Maves were the top two vote getters and will proceed to the General Election in November Brede received 4757 votes Maves 2473 and Kilen 1926 Look for the big issue in this election to be governmental spending since Maves used to head the Tea Party Patriots in Rochester
CITY COUNCIL WARD 3
This was another race that whittled down to two candidates during the primary Incumbent Bruce Snyder received 375 votes Vickie Anderson 188 and Nick Campion 564 Campion and Snyder both advance to the general election Ward 3 is generally considered to be NW Rochester so make sure to check which ward you live in
SCHOOL BOARD SEAT 5
Jean Marvin advanced out of the primary with 40 of the vote Terry Throndson received 33 of the vote to also advance Nora Dooley with 20 and Matthew Halleck with 7 both failed to advance to the general election
SENATOR
Senator Al Franken won his primary not surprisingly to advance as the Democratic candidate in the general election Also not surprisingly Mike McFadden won the Republican ticket and will challenge Franken in November
GOVERNOR
Jeff Johnson won the Republican primary to challenge Governor Mark Dayton in November Both candidates have ties to Rochester Jeff Johnsonrsquos running mate is former Rochester law-maker Bill Kuisle Mark Daytonrsquos running mate Tina Flint Smith is currently the chair of the Destination Medical Center Corporation
US House of Representatives District 1
Blue Earth businessman Jim Hagedorn pulled off the upset of the primary when he defeated the Republican party-endorsed candidate Aaron Miller Hagedorn will challenge the incumbent Democrat Tim Walz in November
STATE AUDITOR
I know what you are thinking why do we care about the State Auditor race and what does the State Auditor do Well the State Auditor is charged with overseeing more than $20 billion spent annually by local governments in Minnesota The State Auditor does this by performing audits of local government financial statements and by reviewing documents data reports and complaints reported to the Office The reason this race is interesting to me is because of the politicking that took place before the primary Democrat Matt Entenza bypassed the DFL convention and filed to run after the incumbent Rebecca Otto received support from the DFL party Otto defeated Entenza by a 80-20 margin Otto will face Republican Randy Gilbert in November amongst a slate of other candidates
LEARN MORE
As always Rochester Area Builders will be holding our candidate social on September 30 Make sure to come on down to mingle with the candidates and pick their brains about issues that important to you If you have any questions about the upcoming elections or anything at all feel free to email me or give me a call at the office Thanks
Matt
wwwRochesterAreaBuilderscom16 | September 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 August 2014
President Chad Kompelein
Builder VPKC Chermak
Associate VPGeorge Cundy
President ElectMike Paradise
TreasurerGerry Traut
SecretaryKurt Welker
Past PresidentKeith Kylmala
NAHB RepresentativeKathe Ostrom
Theyrsquore HereThe new codes are (finally) out Following a mutli-year process to promulgate the 2012 International Building Code the Minnesota Department of Labor and Industry (DLI) has officially published the final language for the Minnesota Building Code With the final language in hand the Builders Association of Minnesota (BAM) is adjusting and completing seven code guide documents that will be provided to members-only in September The code is slated to be enforced starting January 24 2015
Membership with the builders association is the only way to obtain a copy of these documents and as such BAM will be promoting the code guides ndash and membership ndash to all 13000 licensed contractors If interested in promoting your company statewide these code guides still have sponsorships available More at wwwbamnorgsponsorship-opps Contact Remi Stone at remibamnorg or Katherine Nielsen at katherinenbamnorg with any questions
Creating the code documents is codes expert Ed VonThoma his company Building Knowledge Inc (BKI) and a committee including 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 Thank you to these members for generously donating their time to help perfect the members-only guides
The seven code guide documents are
bull Top 20 Code Changes in the Residential Building Code
bull Top 20 Code Changes in the Energy Code
bull 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
A major benefit of membership these guides are available ONLY to members DLI issues the codes but BAM develops guides on how to implement the new codes The documents will be sent to members and made available on the BAM website optimized for both printing and easy viewing on your mobile devices out in the field
Continuing education courses based on these code guides have been assembled by BKI who is available to teach classes around the state to help members prepare to build to the new code Let your local association know if yoursquod like BKI to teach in your community
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 building industry specific construction contracts More benefits of BAM membership can be found online at wwwbamnorgmembership
WwwRochesterAreaBuilderscomSeptember 2014 | 17
Committee UpdatesAWARDS COMMITTEECHAIRPERSON Les Radcliffe Radcliffe Homes amp Remodeling
This committee is currently meeting to look for ldquospecialrdquo members to recognize for their achievements to the Association in 2014 They will choose a Rising Star - a member who has been very active in their first three years of membership as well as nominating builders and associates to receive the Builder amp Associate of the Year Award and for the company who has supported the association The Cornerstone Award In this monthrsquos newsletter you have the opportunity to nominate someone whom you have noticed working extra hard for RAB Please download the Form fill it out and return it to the RAB office
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 2014Jennifer Maass GerhardsMARKETINGRob 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
ROCHESTER AREA BUILDERS INCASKS YOU TO MAKE NOMINATIONS FOR THE
THESE MEMBERS MUST BE DEDICATED TO THE BUILDING INDUSTRY ACTIVE PARTICIPANTS OF THE ASSOCIATION
ENTHUSIASTIC
The recipients of these three awards will be chosen by the Board of Directors at their December meeting and will be awarded at the January General Membership Meeting
Previous Winners - Builders1992 Robert Gill and Richard Hanson and Joe Weis 1993 Frank Kottschade 1994 Roger Lubahn 1995 Jay Burke 1996 Dan Severson 1997 Les Radcliffe 1998 Bob DeWitz and Mark Stinson 1999 David Higgins 2000 Jackie Hanson 2001 Aaron Benike 2002 Gary Zander 2003 John McGuine 2004 Mike Coats 2005 Steve Buss 2006 Mike Hortop 2007 Jodi Hruska 2008 Jay Burke 2009 Kevin Reckinger 2010 Paul Gregor 2011 Mike Larson 2012 Kathy Einck 2013 Les Radcliffe
Previous Winners - Associates1985 Don Soderberg 1987 Robert Suk 1988 Jim Buchan 1989 Mary Moylan 1990 Craig Wendland 1991 Ron Bailey 1992 Bill Tointon 1993 Wayne Lewis 1994 Donna Scott Herriot 1995 Julie Timmerman 1996 John Arnold 1997 Steve Christopherson 1998 Brent Buchan 1999 Kim Zimmer 2000 Julie Praus 2001 Karin Buechler 2002 Dennis Hanson 2003 Carla Kilpatrick 2004 Brent Buchan 2005 Jim Gander 2006 Brian Carlson 2007 John Eischen 2008 Wayne Eisen 2009 Jennifer Maass 2010 Tony Joseph 2011 Patty Hanson 2012 David Kane 2013 Jennifer Maass
Previous Winners - Company 2009 Energy Products amp Design 2010 Knutson Construction 2011 Minnesota Energy Resources 2012 Wendland Utz 2013 Home Federal Savings Bank
Current President and Vice-President are not eligible for selection
I Nominate
Reasons for Nomination
I Nominate
Reasons for Nomination
I Nominate
CLICK HERETO DOWNLOAD
wwwRochesterAreaBuilderscom18 | September 2014
construction fashion expose
c o n s t r u c t i o n f a s h i o n e x p o s e
WwwRochesterAreaBuilderscomSeptember 2014 | 19
Members2014 Commercial Builders Council116 Members as of 63014AB Systems IncAccord Electric IncAdvanced DisposalAlpha Video amp AudioAlvin E Benike IncBEVCOMMThe Blue Book
of Building amp Construction
The Boldt CompanyBraun Intertec
CorporationBriese Iron Works IncBrock White CompanyCO Brown AgencyCambriaCarpet OneCharter
CommunicationsMedia
Chosen Valley Testing Inc
Clayton Thomas Blinds of Rochester
Construction Partnership
CRW architecture + design group inc
Custom AlarmCustom Communications Inc
D2E LLCDonlar Construction
CompanyDoyle Conner CompanyDunham Associates
IncDunlap amp SeegerJE Dunn ConstructionEastwood Bankeci llcElcor Construction IncEnergy Products amp
Design IncEnventisExpert Insulation IncFat Willyrsquos Bar amp GrillFerguson EnterprisesGerhardsGoodin CompanyHaley Comfort Systems
(Authorized FireSide Dealer)
WL Hall CompanyHDR ArchitectureHeartman InsuranceHGA Architects and
EngineersHillerrsquos Flooring AmericaHiMEC at HomeHome Federal Savings
BankHome Improvement
Professionals IncHunt Electric
CorporationInstitute for
Environmental Assessment
PA Johnson Construction LLC
KampM Glass CompanyKane amp Johnson
Architects IncKey Builders IncKnutson Construction
ServicesKomitt Concrete IncKraus-Anderson
Construction CompanyKreofsky Building
SuppliesKruse LumberKuntz Electric Inc
Kwik Trip IncLeitzen Concrete
Products IncMarvin Windows amp
DoorsMavo Systems IncMcGhie amp Betts - a
Division of WSB amp Associates Inc
McGough ConstructionMEC Construction IncMEP AssociatesMerchants BankMerit Contracting IncMidwest Walls LLCMinnesota Energy
Resources CorporationMinnwest BankNickelson Painting IncNorth Star Stone amp
MasonryOlmsted National BankOn Site CompaniesPalmer Soderberg IncPella Windows amp DoorsPeoplersquos Energy
CooperativePompeii Painting IncPrehn Building Sales
IncPremier Bank RochesterProBuild Company LLCReliable Contractors
IncRochester Area
Appraisals LLCRochester Area Econ
Development IncRochester Public
UtilitiesRochester Ready Mix
Concrete CoRochester Sign Service
IncRochester Title amp
Escrow Company IncRSP ArchitectsRyan Electric IncSchoeppner IncSchwab LLCSchwickertrsquos Tecta
America LLCSEH YaggyStantecSterling State BankStructural Design
Group IncSuperior MechanicalTamarack Materials of
Rochester IncThink Mutual BankTonna Mechanical IncTSP Architects amp
EngineersUnited RentalsThe Urban Studio LLCValor Mechanical IncVeit CompaniesVertical Limit
ConstructionViking Automatic
Sprinkler CompanyViking Electric SupplyWeis Builders IncWells Fargo Bank
Minnesota NAWendland UtzWest BankWHKS amp CompanyWHV IncWidseth Smith Nolting
BUILDERS COUNCILCOMMERCIAL
a d i v i s i o n o f R o c h e s t e r A r e a B u i l d e r s I n c
EXECUTIVE COMMITTEEChairperson Chris Terry Knutson Construction ServicesVice Chairperson Nick Leimer Kraus-Anderson Construction CompanyPast Chairperson Sue Hanson Rochester Title amp Escrow Company IncMembers-at-LargeJohn Hill Schwab LLCShaun Knode AB Systems IncJohn Kuntz Kuntz Electric IncLevi Kaiser AE Benike IncMatt Mohs WHKS amp CompanyMike Nordstrom Superior Mechanical
August Meeting Photos
New Member
Clayton Thomas Blinds of RochesterDarlene Drew
2400 Country Club Rd SWRochester MN 55902
507-258-4457
August MEETINGDATE Wednesday August 6th 2014TIME Registration amp Networking at 700 AM Program at 730 AMPLACE Ramada Hotel amp Conference CenterPROGRAM World Fair 2023SPEAKERS Mark Ritchie Minnesota Secretary of State
wwwRochesterAreaBuilderscom20 | September 2014
2014 VALUATION 2013 VALUATION
New Residential Single Family Dwelling 30 7389265 39 9441463
Townhome Dwelling 8 1224172 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 45 283519 33 160271
Room Addition 3 85012 4 177306
Porch Additions 1 8000 2 39494
Other Additions 4 38500 2 23940
Basement Finish 18 240045 24 323650
Alterations 41 234327 45 281947
Multi-Family Addition 0 0 4 31620
Multi-Family Alterations 14 151160 6 4615400 New Commercial Assembly (Church) 0 0 0 0
Assembly (General) 0 0 1 2720000
Assembly (RestaurantBar) 0 0 0 0
Business 0 0 0 0
Education 0 0 0 0
FactoryIndustrial 0 0 0 0
Institution 0 0 0 0
Mercantile 0 0 1 580000
Miscelaneous 0 0 0 0
Utility (General) 0 0 1 90000
Residential (CareAssisted Living) 0 0 0 0
Storage (General) 0 0 0 0
Storage (Warehouse) 0 0 0 0 Existing CommercialAddition 3 4313000 2 1214050
Alterations 25 4451261 40 6158997
Structural Shell 0 0 0 0
ldquoWhite Boxrdquo 0 0 0 0
Interior Demolition Only 2 2017000 3 54800
Other Phased Permits 1 6700 0 0
Other ConstructionBusiness Signs 4 10630 12 87202
Advertising Sign 0 0 0 0
Footings amp Foundations 1 76000 1 1100000
Demolition 0 1
Rochester Building Permits July 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
June 81 59 43 36 36 12 26 32 33 41
July 58 36 60 23 21 23 8 39 39 38
TOTAL 397 329 275 178 139 128 102 180 201 192
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 702 506 417 302 274 200 191 299 326 192
Single Family Homes
Year To Date Statistics 2014 2013 NO VALUATION NO VALUATION
Building Permits Issued to Date 1377 199056393 1280 149430856
Single Family Dwelling 186 45041027 201 47362534
Multi-Family Buildings Total Units 39 1 3702052 0 0
Trade Permits Issued to Date 4558 46616612 4145 40187782
Electrical 1573 20801155 1355 18804490
Electrical (Temp Service) 159 46875 188 39500
Mechanical 1187 12309661 1078 10781042
Gas Piping 317 546576 286 263280
Fireplace 237 629268 215 506084
Hydronic System 94 4005425 69 3097653
Plumbing 991 8277652 954 6695793
Total Permits YTD 5935 245673005 5425 189618638
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
WwwRochesterAreaBuilderscomSeptember 2014 | 21
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
JUNE 2014
New Residential NUMBER VALUATION
Single Family 9 1991399
Commercial
Addition 1 89470
Existing Residential
Deck Addition 7 41847
Basement Finish 1 12000
Garage 1 2267
Accessory Building 2 11500
ByronBuilding Permits
JULY 2014
Existing Residential NUMBER VALUATION
Sprinkler System 1 5000
Residing 1 5000
Reroof 5 25000
Deck 2 6000
Mechanical 1 1000
Garage 1 20000
Pine IslandBuilding Permits
wwwRochesterAreaBuilderscom22 | September 2014
In early 2000 the SampP 500 hit 1553 and the tech-heavy NASDAQ surpassed 5000 Two years later the SampP was at 768 and the NASDAQ was at 800 In the process $6 trillion in household wealth was wiped out We now call that period the dot-com bubble About half a decade later we experienced the housing market bubble Interestingly the value of residential real estate destroyed during that crisis was also about $6 trillion Yet the dot-com bubble resulted in a mild recession while the housing bust lead to the Great Recession What was different It turns a major culprit was which households suffered the destruction of wealth
To set the table ponder this During the housing bust retail spending fell 8 from 2007 to 2009 one the largest drops ever By contrast retail spending increased by 5 between 2000 and 2002 Clearly the losses sustained during the dot-com bust had minimal impacts on household spending decisions and thus on the overall economy Here is why
The decline in home prices that began in 2007 was highly concentrated among households with very limited financial resources As a result these now much-poorer households dramatically pulled back on spending and in the process unwittingly helped usher in the Great Recession Remember retail spending is about a quarter of GDP so a decline of 8 over two years reduces GDP by 2 -- a huge amount It is as if these poorer households were the transmission mechanism through which the Great Recession got its energy
Exacerbating and reinforcing this downward spiral was the role of debt or leverage Remember by 2004 or 2005 a large percentage of first-time home buyers had low FICO scores sketchy employment histories
and limited assets To compensate these Alt-A and subprime buyers borrowed heavily with their now highly levered house being their major financial asset For example among the poorest quintile of the population 80 of their net worth is in their house Even among the middle quintile home equity is still 60 of their net worth By borrowing so much just a small decline in house prices could put these buyers upside down and wipe them out Which is exactly what happened and is what turned a recession into the Great Recession Between 2007 and 2010 the bottom 20 of the population saw their net worth fall from about $30000 to zero
By contrast the financial losses sustained during the dot-com bubble were essentially walled off and had relatively little effect on the overall economy This is because stock ownership is concentrated among the wealthy As the wealthy have less debt and more assets they could essentially shrug off the much larger financial losses they sustained yet not have them alter their day-to-day spending decisions Among the wealthiest 20 of the population home equity represents just 25 of their net worth Moreover depression-era federal laws make it hard to borrow more than 50 of the cost of stock purchases thereby limiting the potentially negative role of leverage
In short the home buyers who bought in 2004 and 2005 had limited wealth and had more of it at risk than earlier home buyers When the music stopped they were highly levered and wholly unable to protect themselves That quickly resulted in (among other things) reduced spending which shrank GDP and quickly cascaded into the Great Recession
+++++++++++++++++
All Bubbles Are Not ++++++++++Created Equal + + + + + + + + + + + + + + + + +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
WwwRochesterAreaBuilderscomSeptember 2014 | 23
NONE
MEMBERSHIPS PENDINGNONE
The firms listed below have applied for membership in Rochester Area Builders Inc
MEMBERSHIP TOTAL 451RETENTION RATE 929
As of 63014
WE WELCOME THE FOLLOWING NEW MEMBERS IN AUGUST
Membership InformationMembership Renewals as of 73114
Two to Four Years
Kraus-Anderson Construction Company 2012Electrical Solutions amp Service 2011Energy Panel Structures 2011Lowersquos Home Improvement 2011Minnwest Bank 2011RCTC Carpentry Program 2011Reynolds Design and Construction 2010
Five to Nine Years
Great River Overhead Door 2007Meadow Lakes Builders 2007Rochester International Event Center 2007The Urban Studio LLC 2007Hunt Electric Corporation 2006Otis Custom Homes LLC 2006Larry Newman Drywall 2005Pahl amp Kaye Inc 2005Synergy Products 2005Tradesmen International Inc 2005
Ten to 19 Years
Greg Wellik Construction 2004Morris Concrete Inc 2004AampA Electric amp Underground Inc 2003Advanced Disposal 2002Knutson Construction Services 2002Tagrsquos Drywall Inc 2001Ronningen Roofing Inc 2000Ferguson Enterprises 1998
20 to 24 Years
Bright Ideas 1993Hirshfieldrsquos Decorating Center 1993Brock White Company 1991Dan Severson Builders Inc 1991
25 Years amp More
Gerhards 1988Express Employment Professionals 1985Townsquare Media Rochester 1983Smith Schafer amp Associates Ltd 1982Hayfield Window amp Door Company 1981Quality Overhead Door Company Inc 1981Energy Products amp Design Inc 1980Tom Brogan Heating amp Air Conditioning 1980Alvin E Benike Inc 1979Pella Windows amp Doors 1978Northern Lights amp Furnishings 1976Wells Fargo Home Mortgage 1964Alexander amp Sons Builders 1962
NEW APPLICANTS
CLIFTONLARSONALLEN LLP7389 Airport View Drive SW Suite 100
Rochester MN 55902Phone 507-280-2300Contact Paul Alberts
Associate MemberAccountingConsulting
Sponsored by Joel Alberts AampA Electric amp Underground Inc
DISTINGUISHED HOMES BY MITCH HAGEN LLC3015 18th Avenue SWRochester MN 55902Phone 507- 951-1962Contact Mitch Hagen
Builder MemberResidential Builder amp Remodeler
Sponsored by Brandon Vagt XRG Concepts LLC
LOW VOLTAGE CONTRACTORS
4200 West 76th StreetMinneapolis MN 55435
Phone 952-835-4600Contact Cathy Trast
Associate MemberFire amp Life Safety Integrated Systems Service Provider
Sponsored by John Eckerman The Boldt Company
PACE INTERNATIONAL 3582 Technology Drive NW
Rochester MN 55901Phone 507-424-4900Contact Jim WestraAssociate Member
Commercial Satellite amp Cable Television ProductsSponsored by Jay Burke Heartwood Homes of Rochester Inc
wwwRochesterAreaBuilderscom24 | September 2014
Put your membershipto work nowMoney-saving discounts that benefit yourbusiness your employees and your family
wwwnahborgMA
National Association of Home Builders
R
WwwRochesterAreaBuilderscomSeptember 2014 | 13
says ldquothe backsplash and lighting are the jewelry to the roomrdquo Using these stone covers means that the outlets and switches wonrsquot be the first thing you notice when you enter the room While they are beautifully made their real purpose is not to stand out but to blend in and to let the overall beauty of the room shine without distraction Itrsquos their attention to small details like this that truly show Beyond Kitchensrsquo ability to create a room that not only wows you on first sight but also ensures the homeowners will be happy with the project years down the road
Of course working with the homeowners and what they bring to the table is crucial When you are building a new home you can design a kitchen pick the cabinets you like best and then choose the flooring and appliances that best accent it Remodeling is rarely that simple In this case the kitchen already had beautiful hardwood floors that only needed to be restored The homeowners had also recently purchased black appliances so those needed to be allowed for in the design as well Katie says they decided to use off white cabinets in most of the kitchen to create a more spacious feel while incorporating the
black appliances with a wall of dark wood cabinetry They also enhanced the feeling of spaciousness by extending the tile backsplash all the way up to the ceiling above the range Creating space whether through i l lus ion or through creative hidden storage is often a necessity in older homes
Another necessity in older homes is dealing with those unpredictable obstacles you encounter I say unpredictable because you never know what theyrsquore going to be but you can always predict that yoursquoll run into some And the most common time for obstacles to show up is during demolition Exhibit A the Soffits As Katie notes sometimes soffits are included purely as a cosmetic feature Other times they are utilized to as a space for plumbing or electrical runs The vision for this project included removing the soffits and having the upper cabinets extend all the way to the ceiling (yet another trick to add a feeling of spacious grandeur
to the room) So of course f o l l o w i n g Murphyrsquos law these soffits c o n t a i n e d p i p i n g a n d drains from
an upstairs bathroom meaning some significant reworking of those pipes and drains had to be done to achieve their goal In the end though it was wort the trouble Oh the joys of remodeling
wwwRochesterAreaBuilderscom14 | September 2014
With all of the difficulty inherent in a remodeling project it might seem like a miracle that the contractor and the homeowner are still on speaking terms by the end of it Even if everything goes smoothly you are still interrupting the daily routine of someone for weeks or months on end But having had a chance to chat with the homeowner on my last visit after the project was complete I can report that miracles can indeed happen She had nothing but praise for Katie the team at Beyond Kitchens and all their subcontractors I too think the project was beautifully done and Irsquom happy to have been invited into their home
If yoursquod like to see more of Beyond Kitchens LLCrsquos work you can check out their website at wwwbeyondkitchenscom and make plans to visit their Remodelers Tour project located at 923 10th St SW on September 13th and 14th
Other RAB members who worked on this project include
bull Brandrup Builders
bull Bright Ideas
bull Creative Hardwood Floors
bull DeGeus Tile amp Granite
bull Ferguson Enterprises
bull Innovative Surfaces
bull Larry Newman Drywall
bull Kuntz Electric Inc
bull Top Shop of Rochester Inc
WwwRochesterAreaBuilderscomSeptember 2014 | 15
ldquoHey Matt what can you tell me about the current crop of local candidatesrdquo
Itrsquos August That means that summer is coming to a close department stores have had their ldquoback-to-schoolrdquo sections of their stores open for 6 weeks and election season is just ramping up This year we have a variety of elections taking place in Rochester Mayor City Council School Board Senator Governor US House of Representatives and State Auditor just to name a few In this monthrsquos edition of HMWUWT I will attempt to give you a little background on each of these races
MAYOR
This race was a little more crowded just a couple days ago There were three candidates Mayor Brede Cindy Maves and Stephanie Kilen On August 12 during the primary election Mayor Brede and Cindy Maves were the top two vote getters and will proceed to the General Election in November Brede received 4757 votes Maves 2473 and Kilen 1926 Look for the big issue in this election to be governmental spending since Maves used to head the Tea Party Patriots in Rochester
CITY COUNCIL WARD 3
This was another race that whittled down to two candidates during the primary Incumbent Bruce Snyder received 375 votes Vickie Anderson 188 and Nick Campion 564 Campion and Snyder both advance to the general election Ward 3 is generally considered to be NW Rochester so make sure to check which ward you live in
SCHOOL BOARD SEAT 5
Jean Marvin advanced out of the primary with 40 of the vote Terry Throndson received 33 of the vote to also advance Nora Dooley with 20 and Matthew Halleck with 7 both failed to advance to the general election
SENATOR
Senator Al Franken won his primary not surprisingly to advance as the Democratic candidate in the general election Also not surprisingly Mike McFadden won the Republican ticket and will challenge Franken in November
GOVERNOR
Jeff Johnson won the Republican primary to challenge Governor Mark Dayton in November Both candidates have ties to Rochester Jeff Johnsonrsquos running mate is former Rochester law-maker Bill Kuisle Mark Daytonrsquos running mate Tina Flint Smith is currently the chair of the Destination Medical Center Corporation
US House of Representatives District 1
Blue Earth businessman Jim Hagedorn pulled off the upset of the primary when he defeated the Republican party-endorsed candidate Aaron Miller Hagedorn will challenge the incumbent Democrat Tim Walz in November
STATE AUDITOR
I know what you are thinking why do we care about the State Auditor race and what does the State Auditor do Well the State Auditor is charged with overseeing more than $20 billion spent annually by local governments in Minnesota The State Auditor does this by performing audits of local government financial statements and by reviewing documents data reports and complaints reported to the Office The reason this race is interesting to me is because of the politicking that took place before the primary Democrat Matt Entenza bypassed the DFL convention and filed to run after the incumbent Rebecca Otto received support from the DFL party Otto defeated Entenza by a 80-20 margin Otto will face Republican Randy Gilbert in November amongst a slate of other candidates
LEARN MORE
As always Rochester Area Builders will be holding our candidate social on September 30 Make sure to come on down to mingle with the candidates and pick their brains about issues that important to you If you have any questions about the upcoming elections or anything at all feel free to email me or give me a call at the office Thanks
Matt
wwwRochesterAreaBuilderscom16 | September 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 August 2014
President Chad Kompelein
Builder VPKC Chermak
Associate VPGeorge Cundy
President ElectMike Paradise
TreasurerGerry Traut
SecretaryKurt Welker
Past PresidentKeith Kylmala
NAHB RepresentativeKathe Ostrom
Theyrsquore HereThe new codes are (finally) out Following a mutli-year process to promulgate the 2012 International Building Code the Minnesota Department of Labor and Industry (DLI) has officially published the final language for the Minnesota Building Code With the final language in hand the Builders Association of Minnesota (BAM) is adjusting and completing seven code guide documents that will be provided to members-only in September The code is slated to be enforced starting January 24 2015
Membership with the builders association is the only way to obtain a copy of these documents and as such BAM will be promoting the code guides ndash and membership ndash to all 13000 licensed contractors If interested in promoting your company statewide these code guides still have sponsorships available More at wwwbamnorgsponsorship-opps Contact Remi Stone at remibamnorg or Katherine Nielsen at katherinenbamnorg with any questions
Creating the code documents is codes expert Ed VonThoma his company Building Knowledge Inc (BKI) and a committee including 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 Thank you to these members for generously donating their time to help perfect the members-only guides
The seven code guide documents are
bull Top 20 Code Changes in the Residential Building Code
bull Top 20 Code Changes in the Energy Code
bull 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
A major benefit of membership these guides are available ONLY to members DLI issues the codes but BAM develops guides on how to implement the new codes The documents will be sent to members and made available on the BAM website optimized for both printing and easy viewing on your mobile devices out in the field
Continuing education courses based on these code guides have been assembled by BKI who is available to teach classes around the state to help members prepare to build to the new code Let your local association know if yoursquod like BKI to teach in your community
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 building industry specific construction contracts More benefits of BAM membership can be found online at wwwbamnorgmembership
WwwRochesterAreaBuilderscomSeptember 2014 | 17
Committee UpdatesAWARDS COMMITTEECHAIRPERSON Les Radcliffe Radcliffe Homes amp Remodeling
This committee is currently meeting to look for ldquospecialrdquo members to recognize for their achievements to the Association in 2014 They will choose a Rising Star - a member who has been very active in their first three years of membership as well as nominating builders and associates to receive the Builder amp Associate of the Year Award and for the company who has supported the association The Cornerstone Award In this monthrsquos newsletter you have the opportunity to nominate someone whom you have noticed working extra hard for RAB Please download the Form fill it out and return it to the RAB office
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 2014Jennifer Maass GerhardsMARKETINGRob 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
ROCHESTER AREA BUILDERS INCASKS YOU TO MAKE NOMINATIONS FOR THE
THESE MEMBERS MUST BE DEDICATED TO THE BUILDING INDUSTRY ACTIVE PARTICIPANTS OF THE ASSOCIATION
ENTHUSIASTIC
The recipients of these three awards will be chosen by the Board of Directors at their December meeting and will be awarded at the January General Membership Meeting
Previous Winners - Builders1992 Robert Gill and Richard Hanson and Joe Weis 1993 Frank Kottschade 1994 Roger Lubahn 1995 Jay Burke 1996 Dan Severson 1997 Les Radcliffe 1998 Bob DeWitz and Mark Stinson 1999 David Higgins 2000 Jackie Hanson 2001 Aaron Benike 2002 Gary Zander 2003 John McGuine 2004 Mike Coats 2005 Steve Buss 2006 Mike Hortop 2007 Jodi Hruska 2008 Jay Burke 2009 Kevin Reckinger 2010 Paul Gregor 2011 Mike Larson 2012 Kathy Einck 2013 Les Radcliffe
Previous Winners - Associates1985 Don Soderberg 1987 Robert Suk 1988 Jim Buchan 1989 Mary Moylan 1990 Craig Wendland 1991 Ron Bailey 1992 Bill Tointon 1993 Wayne Lewis 1994 Donna Scott Herriot 1995 Julie Timmerman 1996 John Arnold 1997 Steve Christopherson 1998 Brent Buchan 1999 Kim Zimmer 2000 Julie Praus 2001 Karin Buechler 2002 Dennis Hanson 2003 Carla Kilpatrick 2004 Brent Buchan 2005 Jim Gander 2006 Brian Carlson 2007 John Eischen 2008 Wayne Eisen 2009 Jennifer Maass 2010 Tony Joseph 2011 Patty Hanson 2012 David Kane 2013 Jennifer Maass
Previous Winners - Company 2009 Energy Products amp Design 2010 Knutson Construction 2011 Minnesota Energy Resources 2012 Wendland Utz 2013 Home Federal Savings Bank
Current President and Vice-President are not eligible for selection
I Nominate
Reasons for Nomination
I Nominate
Reasons for Nomination
I Nominate
CLICK HERETO DOWNLOAD
wwwRochesterAreaBuilderscom18 | September 2014
construction fashion expose
c o n s t r u c t i o n f a s h i o n e x p o s e
WwwRochesterAreaBuilderscomSeptember 2014 | 19
Members2014 Commercial Builders Council116 Members as of 63014AB Systems IncAccord Electric IncAdvanced DisposalAlpha Video amp AudioAlvin E Benike IncBEVCOMMThe Blue Book
of Building amp Construction
The Boldt CompanyBraun Intertec
CorporationBriese Iron Works IncBrock White CompanyCO Brown AgencyCambriaCarpet OneCharter
CommunicationsMedia
Chosen Valley Testing Inc
Clayton Thomas Blinds of Rochester
Construction Partnership
CRW architecture + design group inc
Custom AlarmCustom Communications Inc
D2E LLCDonlar Construction
CompanyDoyle Conner CompanyDunham Associates
IncDunlap amp SeegerJE Dunn ConstructionEastwood Bankeci llcElcor Construction IncEnergy Products amp
Design IncEnventisExpert Insulation IncFat Willyrsquos Bar amp GrillFerguson EnterprisesGerhardsGoodin CompanyHaley Comfort Systems
(Authorized FireSide Dealer)
WL Hall CompanyHDR ArchitectureHeartman InsuranceHGA Architects and
EngineersHillerrsquos Flooring AmericaHiMEC at HomeHome Federal Savings
BankHome Improvement
Professionals IncHunt Electric
CorporationInstitute for
Environmental Assessment
PA Johnson Construction LLC
KampM Glass CompanyKane amp Johnson
Architects IncKey Builders IncKnutson Construction
ServicesKomitt Concrete IncKraus-Anderson
Construction CompanyKreofsky Building
SuppliesKruse LumberKuntz Electric Inc
Kwik Trip IncLeitzen Concrete
Products IncMarvin Windows amp
DoorsMavo Systems IncMcGhie amp Betts - a
Division of WSB amp Associates Inc
McGough ConstructionMEC Construction IncMEP AssociatesMerchants BankMerit Contracting IncMidwest Walls LLCMinnesota Energy
Resources CorporationMinnwest BankNickelson Painting IncNorth Star Stone amp
MasonryOlmsted National BankOn Site CompaniesPalmer Soderberg IncPella Windows amp DoorsPeoplersquos Energy
CooperativePompeii Painting IncPrehn Building Sales
IncPremier Bank RochesterProBuild Company LLCReliable Contractors
IncRochester Area
Appraisals LLCRochester Area Econ
Development IncRochester Public
UtilitiesRochester Ready Mix
Concrete CoRochester Sign Service
IncRochester Title amp
Escrow Company IncRSP ArchitectsRyan Electric IncSchoeppner IncSchwab LLCSchwickertrsquos Tecta
America LLCSEH YaggyStantecSterling State BankStructural Design
Group IncSuperior MechanicalTamarack Materials of
Rochester IncThink Mutual BankTonna Mechanical IncTSP Architects amp
EngineersUnited RentalsThe Urban Studio LLCValor Mechanical IncVeit CompaniesVertical Limit
ConstructionViking Automatic
Sprinkler CompanyViking Electric SupplyWeis Builders IncWells Fargo Bank
Minnesota NAWendland UtzWest BankWHKS amp CompanyWHV IncWidseth Smith Nolting
BUILDERS COUNCILCOMMERCIAL
a d i v i s i o n o f R o c h e s t e r A r e a B u i l d e r s I n c
EXECUTIVE COMMITTEEChairperson Chris Terry Knutson Construction ServicesVice Chairperson Nick Leimer Kraus-Anderson Construction CompanyPast Chairperson Sue Hanson Rochester Title amp Escrow Company IncMembers-at-LargeJohn Hill Schwab LLCShaun Knode AB Systems IncJohn Kuntz Kuntz Electric IncLevi Kaiser AE Benike IncMatt Mohs WHKS amp CompanyMike Nordstrom Superior Mechanical
August Meeting Photos
New Member
Clayton Thomas Blinds of RochesterDarlene Drew
2400 Country Club Rd SWRochester MN 55902
507-258-4457
August MEETINGDATE Wednesday August 6th 2014TIME Registration amp Networking at 700 AM Program at 730 AMPLACE Ramada Hotel amp Conference CenterPROGRAM World Fair 2023SPEAKERS Mark Ritchie Minnesota Secretary of State
wwwRochesterAreaBuilderscom20 | September 2014
2014 VALUATION 2013 VALUATION
New Residential Single Family Dwelling 30 7389265 39 9441463
Townhome Dwelling 8 1224172 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 45 283519 33 160271
Room Addition 3 85012 4 177306
Porch Additions 1 8000 2 39494
Other Additions 4 38500 2 23940
Basement Finish 18 240045 24 323650
Alterations 41 234327 45 281947
Multi-Family Addition 0 0 4 31620
Multi-Family Alterations 14 151160 6 4615400 New Commercial Assembly (Church) 0 0 0 0
Assembly (General) 0 0 1 2720000
Assembly (RestaurantBar) 0 0 0 0
Business 0 0 0 0
Education 0 0 0 0
FactoryIndustrial 0 0 0 0
Institution 0 0 0 0
Mercantile 0 0 1 580000
Miscelaneous 0 0 0 0
Utility (General) 0 0 1 90000
Residential (CareAssisted Living) 0 0 0 0
Storage (General) 0 0 0 0
Storage (Warehouse) 0 0 0 0 Existing CommercialAddition 3 4313000 2 1214050
Alterations 25 4451261 40 6158997
Structural Shell 0 0 0 0
ldquoWhite Boxrdquo 0 0 0 0
Interior Demolition Only 2 2017000 3 54800
Other Phased Permits 1 6700 0 0
Other ConstructionBusiness Signs 4 10630 12 87202
Advertising Sign 0 0 0 0
Footings amp Foundations 1 76000 1 1100000
Demolition 0 1
Rochester Building Permits July 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
June 81 59 43 36 36 12 26 32 33 41
July 58 36 60 23 21 23 8 39 39 38
TOTAL 397 329 275 178 139 128 102 180 201 192
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 702 506 417 302 274 200 191 299 326 192
Single Family Homes
Year To Date Statistics 2014 2013 NO VALUATION NO VALUATION
Building Permits Issued to Date 1377 199056393 1280 149430856
Single Family Dwelling 186 45041027 201 47362534
Multi-Family Buildings Total Units 39 1 3702052 0 0
Trade Permits Issued to Date 4558 46616612 4145 40187782
Electrical 1573 20801155 1355 18804490
Electrical (Temp Service) 159 46875 188 39500
Mechanical 1187 12309661 1078 10781042
Gas Piping 317 546576 286 263280
Fireplace 237 629268 215 506084
Hydronic System 94 4005425 69 3097653
Plumbing 991 8277652 954 6695793
Total Permits YTD 5935 245673005 5425 189618638
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
WwwRochesterAreaBuilderscomSeptember 2014 | 21
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
JUNE 2014
New Residential NUMBER VALUATION
Single Family 9 1991399
Commercial
Addition 1 89470
Existing Residential
Deck Addition 7 41847
Basement Finish 1 12000
Garage 1 2267
Accessory Building 2 11500
ByronBuilding Permits
JULY 2014
Existing Residential NUMBER VALUATION
Sprinkler System 1 5000
Residing 1 5000
Reroof 5 25000
Deck 2 6000
Mechanical 1 1000
Garage 1 20000
Pine IslandBuilding Permits
wwwRochesterAreaBuilderscom22 | September 2014
In early 2000 the SampP 500 hit 1553 and the tech-heavy NASDAQ surpassed 5000 Two years later the SampP was at 768 and the NASDAQ was at 800 In the process $6 trillion in household wealth was wiped out We now call that period the dot-com bubble About half a decade later we experienced the housing market bubble Interestingly the value of residential real estate destroyed during that crisis was also about $6 trillion Yet the dot-com bubble resulted in a mild recession while the housing bust lead to the Great Recession What was different It turns a major culprit was which households suffered the destruction of wealth
To set the table ponder this During the housing bust retail spending fell 8 from 2007 to 2009 one the largest drops ever By contrast retail spending increased by 5 between 2000 and 2002 Clearly the losses sustained during the dot-com bust had minimal impacts on household spending decisions and thus on the overall economy Here is why
The decline in home prices that began in 2007 was highly concentrated among households with very limited financial resources As a result these now much-poorer households dramatically pulled back on spending and in the process unwittingly helped usher in the Great Recession Remember retail spending is about a quarter of GDP so a decline of 8 over two years reduces GDP by 2 -- a huge amount It is as if these poorer households were the transmission mechanism through which the Great Recession got its energy
Exacerbating and reinforcing this downward spiral was the role of debt or leverage Remember by 2004 or 2005 a large percentage of first-time home buyers had low FICO scores sketchy employment histories
and limited assets To compensate these Alt-A and subprime buyers borrowed heavily with their now highly levered house being their major financial asset For example among the poorest quintile of the population 80 of their net worth is in their house Even among the middle quintile home equity is still 60 of their net worth By borrowing so much just a small decline in house prices could put these buyers upside down and wipe them out Which is exactly what happened and is what turned a recession into the Great Recession Between 2007 and 2010 the bottom 20 of the population saw their net worth fall from about $30000 to zero
By contrast the financial losses sustained during the dot-com bubble were essentially walled off and had relatively little effect on the overall economy This is because stock ownership is concentrated among the wealthy As the wealthy have less debt and more assets they could essentially shrug off the much larger financial losses they sustained yet not have them alter their day-to-day spending decisions Among the wealthiest 20 of the population home equity represents just 25 of their net worth Moreover depression-era federal laws make it hard to borrow more than 50 of the cost of stock purchases thereby limiting the potentially negative role of leverage
In short the home buyers who bought in 2004 and 2005 had limited wealth and had more of it at risk than earlier home buyers When the music stopped they were highly levered and wholly unable to protect themselves That quickly resulted in (among other things) reduced spending which shrank GDP and quickly cascaded into the Great Recession
+++++++++++++++++
All Bubbles Are Not ++++++++++Created Equal + + + + + + + + + + + + + + + + +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
WwwRochesterAreaBuilderscomSeptember 2014 | 23
NONE
MEMBERSHIPS PENDINGNONE
The firms listed below have applied for membership in Rochester Area Builders Inc
MEMBERSHIP TOTAL 451RETENTION RATE 929
As of 63014
WE WELCOME THE FOLLOWING NEW MEMBERS IN AUGUST
Membership InformationMembership Renewals as of 73114
Two to Four Years
Kraus-Anderson Construction Company 2012Electrical Solutions amp Service 2011Energy Panel Structures 2011Lowersquos Home Improvement 2011Minnwest Bank 2011RCTC Carpentry Program 2011Reynolds Design and Construction 2010
Five to Nine Years
Great River Overhead Door 2007Meadow Lakes Builders 2007Rochester International Event Center 2007The Urban Studio LLC 2007Hunt Electric Corporation 2006Otis Custom Homes LLC 2006Larry Newman Drywall 2005Pahl amp Kaye Inc 2005Synergy Products 2005Tradesmen International Inc 2005
Ten to 19 Years
Greg Wellik Construction 2004Morris Concrete Inc 2004AampA Electric amp Underground Inc 2003Advanced Disposal 2002Knutson Construction Services 2002Tagrsquos Drywall Inc 2001Ronningen Roofing Inc 2000Ferguson Enterprises 1998
20 to 24 Years
Bright Ideas 1993Hirshfieldrsquos Decorating Center 1993Brock White Company 1991Dan Severson Builders Inc 1991
25 Years amp More
Gerhards 1988Express Employment Professionals 1985Townsquare Media Rochester 1983Smith Schafer amp Associates Ltd 1982Hayfield Window amp Door Company 1981Quality Overhead Door Company Inc 1981Energy Products amp Design Inc 1980Tom Brogan Heating amp Air Conditioning 1980Alvin E Benike Inc 1979Pella Windows amp Doors 1978Northern Lights amp Furnishings 1976Wells Fargo Home Mortgage 1964Alexander amp Sons Builders 1962
NEW APPLICANTS
CLIFTONLARSONALLEN LLP7389 Airport View Drive SW Suite 100
Rochester MN 55902Phone 507-280-2300Contact Paul Alberts
Associate MemberAccountingConsulting
Sponsored by Joel Alberts AampA Electric amp Underground Inc
DISTINGUISHED HOMES BY MITCH HAGEN LLC3015 18th Avenue SWRochester MN 55902Phone 507- 951-1962Contact Mitch Hagen
Builder MemberResidential Builder amp Remodeler
Sponsored by Brandon Vagt XRG Concepts LLC
LOW VOLTAGE CONTRACTORS
4200 West 76th StreetMinneapolis MN 55435
Phone 952-835-4600Contact Cathy Trast
Associate MemberFire amp Life Safety Integrated Systems Service Provider
Sponsored by John Eckerman The Boldt Company
PACE INTERNATIONAL 3582 Technology Drive NW
Rochester MN 55901Phone 507-424-4900Contact Jim WestraAssociate Member
Commercial Satellite amp Cable Television ProductsSponsored by Jay Burke Heartwood Homes of Rochester Inc
wwwRochesterAreaBuilderscom24 | September 2014
Put your membershipto work nowMoney-saving discounts that benefit yourbusiness your employees and your family
wwwnahborgMA
National Association of Home Builders
R
wwwRochesterAreaBuilderscom14 | September 2014
With all of the difficulty inherent in a remodeling project it might seem like a miracle that the contractor and the homeowner are still on speaking terms by the end of it Even if everything goes smoothly you are still interrupting the daily routine of someone for weeks or months on end But having had a chance to chat with the homeowner on my last visit after the project was complete I can report that miracles can indeed happen She had nothing but praise for Katie the team at Beyond Kitchens and all their subcontractors I too think the project was beautifully done and Irsquom happy to have been invited into their home
If yoursquod like to see more of Beyond Kitchens LLCrsquos work you can check out their website at wwwbeyondkitchenscom and make plans to visit their Remodelers Tour project located at 923 10th St SW on September 13th and 14th
Other RAB members who worked on this project include
bull Brandrup Builders
bull Bright Ideas
bull Creative Hardwood Floors
bull DeGeus Tile amp Granite
bull Ferguson Enterprises
bull Innovative Surfaces
bull Larry Newman Drywall
bull Kuntz Electric Inc
bull Top Shop of Rochester Inc
WwwRochesterAreaBuilderscomSeptember 2014 | 15
ldquoHey Matt what can you tell me about the current crop of local candidatesrdquo
Itrsquos August That means that summer is coming to a close department stores have had their ldquoback-to-schoolrdquo sections of their stores open for 6 weeks and election season is just ramping up This year we have a variety of elections taking place in Rochester Mayor City Council School Board Senator Governor US House of Representatives and State Auditor just to name a few In this monthrsquos edition of HMWUWT I will attempt to give you a little background on each of these races
MAYOR
This race was a little more crowded just a couple days ago There were three candidates Mayor Brede Cindy Maves and Stephanie Kilen On August 12 during the primary election Mayor Brede and Cindy Maves were the top two vote getters and will proceed to the General Election in November Brede received 4757 votes Maves 2473 and Kilen 1926 Look for the big issue in this election to be governmental spending since Maves used to head the Tea Party Patriots in Rochester
CITY COUNCIL WARD 3
This was another race that whittled down to two candidates during the primary Incumbent Bruce Snyder received 375 votes Vickie Anderson 188 and Nick Campion 564 Campion and Snyder both advance to the general election Ward 3 is generally considered to be NW Rochester so make sure to check which ward you live in
SCHOOL BOARD SEAT 5
Jean Marvin advanced out of the primary with 40 of the vote Terry Throndson received 33 of the vote to also advance Nora Dooley with 20 and Matthew Halleck with 7 both failed to advance to the general election
SENATOR
Senator Al Franken won his primary not surprisingly to advance as the Democratic candidate in the general election Also not surprisingly Mike McFadden won the Republican ticket and will challenge Franken in November
GOVERNOR
Jeff Johnson won the Republican primary to challenge Governor Mark Dayton in November Both candidates have ties to Rochester Jeff Johnsonrsquos running mate is former Rochester law-maker Bill Kuisle Mark Daytonrsquos running mate Tina Flint Smith is currently the chair of the Destination Medical Center Corporation
US House of Representatives District 1
Blue Earth businessman Jim Hagedorn pulled off the upset of the primary when he defeated the Republican party-endorsed candidate Aaron Miller Hagedorn will challenge the incumbent Democrat Tim Walz in November
STATE AUDITOR
I know what you are thinking why do we care about the State Auditor race and what does the State Auditor do Well the State Auditor is charged with overseeing more than $20 billion spent annually by local governments in Minnesota The State Auditor does this by performing audits of local government financial statements and by reviewing documents data reports and complaints reported to the Office The reason this race is interesting to me is because of the politicking that took place before the primary Democrat Matt Entenza bypassed the DFL convention and filed to run after the incumbent Rebecca Otto received support from the DFL party Otto defeated Entenza by a 80-20 margin Otto will face Republican Randy Gilbert in November amongst a slate of other candidates
LEARN MORE
As always Rochester Area Builders will be holding our candidate social on September 30 Make sure to come on down to mingle with the candidates and pick their brains about issues that important to you If you have any questions about the upcoming elections or anything at all feel free to email me or give me a call at the office Thanks
Matt
wwwRochesterAreaBuilderscom16 | September 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 August 2014
President Chad Kompelein
Builder VPKC Chermak
Associate VPGeorge Cundy
President ElectMike Paradise
TreasurerGerry Traut
SecretaryKurt Welker
Past PresidentKeith Kylmala
NAHB RepresentativeKathe Ostrom
Theyrsquore HereThe new codes are (finally) out Following a mutli-year process to promulgate the 2012 International Building Code the Minnesota Department of Labor and Industry (DLI) has officially published the final language for the Minnesota Building Code With the final language in hand the Builders Association of Minnesota (BAM) is adjusting and completing seven code guide documents that will be provided to members-only in September The code is slated to be enforced starting January 24 2015
Membership with the builders association is the only way to obtain a copy of these documents and as such BAM will be promoting the code guides ndash and membership ndash to all 13000 licensed contractors If interested in promoting your company statewide these code guides still have sponsorships available More at wwwbamnorgsponsorship-opps Contact Remi Stone at remibamnorg or Katherine Nielsen at katherinenbamnorg with any questions
Creating the code documents is codes expert Ed VonThoma his company Building Knowledge Inc (BKI) and a committee including 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 Thank you to these members for generously donating their time to help perfect the members-only guides
The seven code guide documents are
bull Top 20 Code Changes in the Residential Building Code
bull Top 20 Code Changes in the Energy Code
bull 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
A major benefit of membership these guides are available ONLY to members DLI issues the codes but BAM develops guides on how to implement the new codes The documents will be sent to members and made available on the BAM website optimized for both printing and easy viewing on your mobile devices out in the field
Continuing education courses based on these code guides have been assembled by BKI who is available to teach classes around the state to help members prepare to build to the new code Let your local association know if yoursquod like BKI to teach in your community
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 building industry specific construction contracts More benefits of BAM membership can be found online at wwwbamnorgmembership
WwwRochesterAreaBuilderscomSeptember 2014 | 17
Committee UpdatesAWARDS COMMITTEECHAIRPERSON Les Radcliffe Radcliffe Homes amp Remodeling
This committee is currently meeting to look for ldquospecialrdquo members to recognize for their achievements to the Association in 2014 They will choose a Rising Star - a member who has been very active in their first three years of membership as well as nominating builders and associates to receive the Builder amp Associate of the Year Award and for the company who has supported the association The Cornerstone Award In this monthrsquos newsletter you have the opportunity to nominate someone whom you have noticed working extra hard for RAB Please download the Form fill it out and return it to the RAB office
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 2014Jennifer Maass GerhardsMARKETINGRob 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
ROCHESTER AREA BUILDERS INCASKS YOU TO MAKE NOMINATIONS FOR THE
THESE MEMBERS MUST BE DEDICATED TO THE BUILDING INDUSTRY ACTIVE PARTICIPANTS OF THE ASSOCIATION
ENTHUSIASTIC
The recipients of these three awards will be chosen by the Board of Directors at their December meeting and will be awarded at the January General Membership Meeting
Previous Winners - Builders1992 Robert Gill and Richard Hanson and Joe Weis 1993 Frank Kottschade 1994 Roger Lubahn 1995 Jay Burke 1996 Dan Severson 1997 Les Radcliffe 1998 Bob DeWitz and Mark Stinson 1999 David Higgins 2000 Jackie Hanson 2001 Aaron Benike 2002 Gary Zander 2003 John McGuine 2004 Mike Coats 2005 Steve Buss 2006 Mike Hortop 2007 Jodi Hruska 2008 Jay Burke 2009 Kevin Reckinger 2010 Paul Gregor 2011 Mike Larson 2012 Kathy Einck 2013 Les Radcliffe
Previous Winners - Associates1985 Don Soderberg 1987 Robert Suk 1988 Jim Buchan 1989 Mary Moylan 1990 Craig Wendland 1991 Ron Bailey 1992 Bill Tointon 1993 Wayne Lewis 1994 Donna Scott Herriot 1995 Julie Timmerman 1996 John Arnold 1997 Steve Christopherson 1998 Brent Buchan 1999 Kim Zimmer 2000 Julie Praus 2001 Karin Buechler 2002 Dennis Hanson 2003 Carla Kilpatrick 2004 Brent Buchan 2005 Jim Gander 2006 Brian Carlson 2007 John Eischen 2008 Wayne Eisen 2009 Jennifer Maass 2010 Tony Joseph 2011 Patty Hanson 2012 David Kane 2013 Jennifer Maass
Previous Winners - Company 2009 Energy Products amp Design 2010 Knutson Construction 2011 Minnesota Energy Resources 2012 Wendland Utz 2013 Home Federal Savings Bank
Current President and Vice-President are not eligible for selection
I Nominate
Reasons for Nomination
I Nominate
Reasons for Nomination
I Nominate
CLICK HERETO DOWNLOAD
wwwRochesterAreaBuilderscom18 | September 2014
construction fashion expose
c o n s t r u c t i o n f a s h i o n e x p o s e
WwwRochesterAreaBuilderscomSeptember 2014 | 19
Members2014 Commercial Builders Council116 Members as of 63014AB Systems IncAccord Electric IncAdvanced DisposalAlpha Video amp AudioAlvin E Benike IncBEVCOMMThe Blue Book
of Building amp Construction
The Boldt CompanyBraun Intertec
CorporationBriese Iron Works IncBrock White CompanyCO Brown AgencyCambriaCarpet OneCharter
CommunicationsMedia
Chosen Valley Testing Inc
Clayton Thomas Blinds of Rochester
Construction Partnership
CRW architecture + design group inc
Custom AlarmCustom Communications Inc
D2E LLCDonlar Construction
CompanyDoyle Conner CompanyDunham Associates
IncDunlap amp SeegerJE Dunn ConstructionEastwood Bankeci llcElcor Construction IncEnergy Products amp
Design IncEnventisExpert Insulation IncFat Willyrsquos Bar amp GrillFerguson EnterprisesGerhardsGoodin CompanyHaley Comfort Systems
(Authorized FireSide Dealer)
WL Hall CompanyHDR ArchitectureHeartman InsuranceHGA Architects and
EngineersHillerrsquos Flooring AmericaHiMEC at HomeHome Federal Savings
BankHome Improvement
Professionals IncHunt Electric
CorporationInstitute for
Environmental Assessment
PA Johnson Construction LLC
KampM Glass CompanyKane amp Johnson
Architects IncKey Builders IncKnutson Construction
ServicesKomitt Concrete IncKraus-Anderson
Construction CompanyKreofsky Building
SuppliesKruse LumberKuntz Electric Inc
Kwik Trip IncLeitzen Concrete
Products IncMarvin Windows amp
DoorsMavo Systems IncMcGhie amp Betts - a
Division of WSB amp Associates Inc
McGough ConstructionMEC Construction IncMEP AssociatesMerchants BankMerit Contracting IncMidwest Walls LLCMinnesota Energy
Resources CorporationMinnwest BankNickelson Painting IncNorth Star Stone amp
MasonryOlmsted National BankOn Site CompaniesPalmer Soderberg IncPella Windows amp DoorsPeoplersquos Energy
CooperativePompeii Painting IncPrehn Building Sales
IncPremier Bank RochesterProBuild Company LLCReliable Contractors
IncRochester Area
Appraisals LLCRochester Area Econ
Development IncRochester Public
UtilitiesRochester Ready Mix
Concrete CoRochester Sign Service
IncRochester Title amp
Escrow Company IncRSP ArchitectsRyan Electric IncSchoeppner IncSchwab LLCSchwickertrsquos Tecta
America LLCSEH YaggyStantecSterling State BankStructural Design
Group IncSuperior MechanicalTamarack Materials of
Rochester IncThink Mutual BankTonna Mechanical IncTSP Architects amp
EngineersUnited RentalsThe Urban Studio LLCValor Mechanical IncVeit CompaniesVertical Limit
ConstructionViking Automatic
Sprinkler CompanyViking Electric SupplyWeis Builders IncWells Fargo Bank
Minnesota NAWendland UtzWest BankWHKS amp CompanyWHV IncWidseth Smith Nolting
BUILDERS COUNCILCOMMERCIAL
a d i v i s i o n o f R o c h e s t e r A r e a B u i l d e r s I n c
EXECUTIVE COMMITTEEChairperson Chris Terry Knutson Construction ServicesVice Chairperson Nick Leimer Kraus-Anderson Construction CompanyPast Chairperson Sue Hanson Rochester Title amp Escrow Company IncMembers-at-LargeJohn Hill Schwab LLCShaun Knode AB Systems IncJohn Kuntz Kuntz Electric IncLevi Kaiser AE Benike IncMatt Mohs WHKS amp CompanyMike Nordstrom Superior Mechanical
August Meeting Photos
New Member
Clayton Thomas Blinds of RochesterDarlene Drew
2400 Country Club Rd SWRochester MN 55902
507-258-4457
August MEETINGDATE Wednesday August 6th 2014TIME Registration amp Networking at 700 AM Program at 730 AMPLACE Ramada Hotel amp Conference CenterPROGRAM World Fair 2023SPEAKERS Mark Ritchie Minnesota Secretary of State
wwwRochesterAreaBuilderscom20 | September 2014
2014 VALUATION 2013 VALUATION
New Residential Single Family Dwelling 30 7389265 39 9441463
Townhome Dwelling 8 1224172 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 45 283519 33 160271
Room Addition 3 85012 4 177306
Porch Additions 1 8000 2 39494
Other Additions 4 38500 2 23940
Basement Finish 18 240045 24 323650
Alterations 41 234327 45 281947
Multi-Family Addition 0 0 4 31620
Multi-Family Alterations 14 151160 6 4615400 New Commercial Assembly (Church) 0 0 0 0
Assembly (General) 0 0 1 2720000
Assembly (RestaurantBar) 0 0 0 0
Business 0 0 0 0
Education 0 0 0 0
FactoryIndustrial 0 0 0 0
Institution 0 0 0 0
Mercantile 0 0 1 580000
Miscelaneous 0 0 0 0
Utility (General) 0 0 1 90000
Residential (CareAssisted Living) 0 0 0 0
Storage (General) 0 0 0 0
Storage (Warehouse) 0 0 0 0 Existing CommercialAddition 3 4313000 2 1214050
Alterations 25 4451261 40 6158997
Structural Shell 0 0 0 0
ldquoWhite Boxrdquo 0 0 0 0
Interior Demolition Only 2 2017000 3 54800
Other Phased Permits 1 6700 0 0
Other ConstructionBusiness Signs 4 10630 12 87202
Advertising Sign 0 0 0 0
Footings amp Foundations 1 76000 1 1100000
Demolition 0 1
Rochester Building Permits July 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
June 81 59 43 36 36 12 26 32 33 41
July 58 36 60 23 21 23 8 39 39 38
TOTAL 397 329 275 178 139 128 102 180 201 192
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 702 506 417 302 274 200 191 299 326 192
Single Family Homes
Year To Date Statistics 2014 2013 NO VALUATION NO VALUATION
Building Permits Issued to Date 1377 199056393 1280 149430856
Single Family Dwelling 186 45041027 201 47362534
Multi-Family Buildings Total Units 39 1 3702052 0 0
Trade Permits Issued to Date 4558 46616612 4145 40187782
Electrical 1573 20801155 1355 18804490
Electrical (Temp Service) 159 46875 188 39500
Mechanical 1187 12309661 1078 10781042
Gas Piping 317 546576 286 263280
Fireplace 237 629268 215 506084
Hydronic System 94 4005425 69 3097653
Plumbing 991 8277652 954 6695793
Total Permits YTD 5935 245673005 5425 189618638
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
WwwRochesterAreaBuilderscomSeptember 2014 | 21
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
JUNE 2014
New Residential NUMBER VALUATION
Single Family 9 1991399
Commercial
Addition 1 89470
Existing Residential
Deck Addition 7 41847
Basement Finish 1 12000
Garage 1 2267
Accessory Building 2 11500
ByronBuilding Permits
JULY 2014
Existing Residential NUMBER VALUATION
Sprinkler System 1 5000
Residing 1 5000
Reroof 5 25000
Deck 2 6000
Mechanical 1 1000
Garage 1 20000
Pine IslandBuilding Permits
wwwRochesterAreaBuilderscom22 | September 2014
In early 2000 the SampP 500 hit 1553 and the tech-heavy NASDAQ surpassed 5000 Two years later the SampP was at 768 and the NASDAQ was at 800 In the process $6 trillion in household wealth was wiped out We now call that period the dot-com bubble About half a decade later we experienced the housing market bubble Interestingly the value of residential real estate destroyed during that crisis was also about $6 trillion Yet the dot-com bubble resulted in a mild recession while the housing bust lead to the Great Recession What was different It turns a major culprit was which households suffered the destruction of wealth
To set the table ponder this During the housing bust retail spending fell 8 from 2007 to 2009 one the largest drops ever By contrast retail spending increased by 5 between 2000 and 2002 Clearly the losses sustained during the dot-com bust had minimal impacts on household spending decisions and thus on the overall economy Here is why
The decline in home prices that began in 2007 was highly concentrated among households with very limited financial resources As a result these now much-poorer households dramatically pulled back on spending and in the process unwittingly helped usher in the Great Recession Remember retail spending is about a quarter of GDP so a decline of 8 over two years reduces GDP by 2 -- a huge amount It is as if these poorer households were the transmission mechanism through which the Great Recession got its energy
Exacerbating and reinforcing this downward spiral was the role of debt or leverage Remember by 2004 or 2005 a large percentage of first-time home buyers had low FICO scores sketchy employment histories
and limited assets To compensate these Alt-A and subprime buyers borrowed heavily with their now highly levered house being their major financial asset For example among the poorest quintile of the population 80 of their net worth is in their house Even among the middle quintile home equity is still 60 of their net worth By borrowing so much just a small decline in house prices could put these buyers upside down and wipe them out Which is exactly what happened and is what turned a recession into the Great Recession Between 2007 and 2010 the bottom 20 of the population saw their net worth fall from about $30000 to zero
By contrast the financial losses sustained during the dot-com bubble were essentially walled off and had relatively little effect on the overall economy This is because stock ownership is concentrated among the wealthy As the wealthy have less debt and more assets they could essentially shrug off the much larger financial losses they sustained yet not have them alter their day-to-day spending decisions Among the wealthiest 20 of the population home equity represents just 25 of their net worth Moreover depression-era federal laws make it hard to borrow more than 50 of the cost of stock purchases thereby limiting the potentially negative role of leverage
In short the home buyers who bought in 2004 and 2005 had limited wealth and had more of it at risk than earlier home buyers When the music stopped they were highly levered and wholly unable to protect themselves That quickly resulted in (among other things) reduced spending which shrank GDP and quickly cascaded into the Great Recession
+++++++++++++++++
All Bubbles Are Not ++++++++++Created Equal + + + + + + + + + + + + + + + + +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
WwwRochesterAreaBuilderscomSeptember 2014 | 23
NONE
MEMBERSHIPS PENDINGNONE
The firms listed below have applied for membership in Rochester Area Builders Inc
MEMBERSHIP TOTAL 451RETENTION RATE 929
As of 63014
WE WELCOME THE FOLLOWING NEW MEMBERS IN AUGUST
Membership InformationMembership Renewals as of 73114
Two to Four Years
Kraus-Anderson Construction Company 2012Electrical Solutions amp Service 2011Energy Panel Structures 2011Lowersquos Home Improvement 2011Minnwest Bank 2011RCTC Carpentry Program 2011Reynolds Design and Construction 2010
Five to Nine Years
Great River Overhead Door 2007Meadow Lakes Builders 2007Rochester International Event Center 2007The Urban Studio LLC 2007Hunt Electric Corporation 2006Otis Custom Homes LLC 2006Larry Newman Drywall 2005Pahl amp Kaye Inc 2005Synergy Products 2005Tradesmen International Inc 2005
Ten to 19 Years
Greg Wellik Construction 2004Morris Concrete Inc 2004AampA Electric amp Underground Inc 2003Advanced Disposal 2002Knutson Construction Services 2002Tagrsquos Drywall Inc 2001Ronningen Roofing Inc 2000Ferguson Enterprises 1998
20 to 24 Years
Bright Ideas 1993Hirshfieldrsquos Decorating Center 1993Brock White Company 1991Dan Severson Builders Inc 1991
25 Years amp More
Gerhards 1988Express Employment Professionals 1985Townsquare Media Rochester 1983Smith Schafer amp Associates Ltd 1982Hayfield Window amp Door Company 1981Quality Overhead Door Company Inc 1981Energy Products amp Design Inc 1980Tom Brogan Heating amp Air Conditioning 1980Alvin E Benike Inc 1979Pella Windows amp Doors 1978Northern Lights amp Furnishings 1976Wells Fargo Home Mortgage 1964Alexander amp Sons Builders 1962
NEW APPLICANTS
CLIFTONLARSONALLEN LLP7389 Airport View Drive SW Suite 100
Rochester MN 55902Phone 507-280-2300Contact Paul Alberts
Associate MemberAccountingConsulting
Sponsored by Joel Alberts AampA Electric amp Underground Inc
DISTINGUISHED HOMES BY MITCH HAGEN LLC3015 18th Avenue SWRochester MN 55902Phone 507- 951-1962Contact Mitch Hagen
Builder MemberResidential Builder amp Remodeler
Sponsored by Brandon Vagt XRG Concepts LLC
LOW VOLTAGE CONTRACTORS
4200 West 76th StreetMinneapolis MN 55435
Phone 952-835-4600Contact Cathy Trast
Associate MemberFire amp Life Safety Integrated Systems Service Provider
Sponsored by John Eckerman The Boldt Company
PACE INTERNATIONAL 3582 Technology Drive NW
Rochester MN 55901Phone 507-424-4900Contact Jim WestraAssociate Member
Commercial Satellite amp Cable Television ProductsSponsored by Jay Burke Heartwood Homes of Rochester Inc
wwwRochesterAreaBuilderscom24 | September 2014
Put your membershipto work nowMoney-saving discounts that benefit yourbusiness your employees and your family
wwwnahborgMA
National Association of Home Builders
R
WwwRochesterAreaBuilderscomSeptember 2014 | 15
ldquoHey Matt what can you tell me about the current crop of local candidatesrdquo
Itrsquos August That means that summer is coming to a close department stores have had their ldquoback-to-schoolrdquo sections of their stores open for 6 weeks and election season is just ramping up This year we have a variety of elections taking place in Rochester Mayor City Council School Board Senator Governor US House of Representatives and State Auditor just to name a few In this monthrsquos edition of HMWUWT I will attempt to give you a little background on each of these races
MAYOR
This race was a little more crowded just a couple days ago There were three candidates Mayor Brede Cindy Maves and Stephanie Kilen On August 12 during the primary election Mayor Brede and Cindy Maves were the top two vote getters and will proceed to the General Election in November Brede received 4757 votes Maves 2473 and Kilen 1926 Look for the big issue in this election to be governmental spending since Maves used to head the Tea Party Patriots in Rochester
CITY COUNCIL WARD 3
This was another race that whittled down to two candidates during the primary Incumbent Bruce Snyder received 375 votes Vickie Anderson 188 and Nick Campion 564 Campion and Snyder both advance to the general election Ward 3 is generally considered to be NW Rochester so make sure to check which ward you live in
SCHOOL BOARD SEAT 5
Jean Marvin advanced out of the primary with 40 of the vote Terry Throndson received 33 of the vote to also advance Nora Dooley with 20 and Matthew Halleck with 7 both failed to advance to the general election
SENATOR
Senator Al Franken won his primary not surprisingly to advance as the Democratic candidate in the general election Also not surprisingly Mike McFadden won the Republican ticket and will challenge Franken in November
GOVERNOR
Jeff Johnson won the Republican primary to challenge Governor Mark Dayton in November Both candidates have ties to Rochester Jeff Johnsonrsquos running mate is former Rochester law-maker Bill Kuisle Mark Daytonrsquos running mate Tina Flint Smith is currently the chair of the Destination Medical Center Corporation
US House of Representatives District 1
Blue Earth businessman Jim Hagedorn pulled off the upset of the primary when he defeated the Republican party-endorsed candidate Aaron Miller Hagedorn will challenge the incumbent Democrat Tim Walz in November
STATE AUDITOR
I know what you are thinking why do we care about the State Auditor race and what does the State Auditor do Well the State Auditor is charged with overseeing more than $20 billion spent annually by local governments in Minnesota The State Auditor does this by performing audits of local government financial statements and by reviewing documents data reports and complaints reported to the Office The reason this race is interesting to me is because of the politicking that took place before the primary Democrat Matt Entenza bypassed the DFL convention and filed to run after the incumbent Rebecca Otto received support from the DFL party Otto defeated Entenza by a 80-20 margin Otto will face Republican Randy Gilbert in November amongst a slate of other candidates
LEARN MORE
As always Rochester Area Builders will be holding our candidate social on September 30 Make sure to come on down to mingle with the candidates and pick their brains about issues that important to you If you have any questions about the upcoming elections or anything at all feel free to email me or give me a call at the office Thanks
Matt
wwwRochesterAreaBuilderscom16 | September 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 August 2014
President Chad Kompelein
Builder VPKC Chermak
Associate VPGeorge Cundy
President ElectMike Paradise
TreasurerGerry Traut
SecretaryKurt Welker
Past PresidentKeith Kylmala
NAHB RepresentativeKathe Ostrom
Theyrsquore HereThe new codes are (finally) out Following a mutli-year process to promulgate the 2012 International Building Code the Minnesota Department of Labor and Industry (DLI) has officially published the final language for the Minnesota Building Code With the final language in hand the Builders Association of Minnesota (BAM) is adjusting and completing seven code guide documents that will be provided to members-only in September The code is slated to be enforced starting January 24 2015
Membership with the builders association is the only way to obtain a copy of these documents and as such BAM will be promoting the code guides ndash and membership ndash to all 13000 licensed contractors If interested in promoting your company statewide these code guides still have sponsorships available More at wwwbamnorgsponsorship-opps Contact Remi Stone at remibamnorg or Katherine Nielsen at katherinenbamnorg with any questions
Creating the code documents is codes expert Ed VonThoma his company Building Knowledge Inc (BKI) and a committee including 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 Thank you to these members for generously donating their time to help perfect the members-only guides
The seven code guide documents are
bull Top 20 Code Changes in the Residential Building Code
bull Top 20 Code Changes in the Energy Code
bull 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
A major benefit of membership these guides are available ONLY to members DLI issues the codes but BAM develops guides on how to implement the new codes The documents will be sent to members and made available on the BAM website optimized for both printing and easy viewing on your mobile devices out in the field
Continuing education courses based on these code guides have been assembled by BKI who is available to teach classes around the state to help members prepare to build to the new code Let your local association know if yoursquod like BKI to teach in your community
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 building industry specific construction contracts More benefits of BAM membership can be found online at wwwbamnorgmembership
WwwRochesterAreaBuilderscomSeptember 2014 | 17
Committee UpdatesAWARDS COMMITTEECHAIRPERSON Les Radcliffe Radcliffe Homes amp Remodeling
This committee is currently meeting to look for ldquospecialrdquo members to recognize for their achievements to the Association in 2014 They will choose a Rising Star - a member who has been very active in their first three years of membership as well as nominating builders and associates to receive the Builder amp Associate of the Year Award and for the company who has supported the association The Cornerstone Award In this monthrsquos newsletter you have the opportunity to nominate someone whom you have noticed working extra hard for RAB Please download the Form fill it out and return it to the RAB office
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 2014Jennifer Maass GerhardsMARKETINGRob 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
ROCHESTER AREA BUILDERS INCASKS YOU TO MAKE NOMINATIONS FOR THE
THESE MEMBERS MUST BE DEDICATED TO THE BUILDING INDUSTRY ACTIVE PARTICIPANTS OF THE ASSOCIATION
ENTHUSIASTIC
The recipients of these three awards will be chosen by the Board of Directors at their December meeting and will be awarded at the January General Membership Meeting
Previous Winners - Builders1992 Robert Gill and Richard Hanson and Joe Weis 1993 Frank Kottschade 1994 Roger Lubahn 1995 Jay Burke 1996 Dan Severson 1997 Les Radcliffe 1998 Bob DeWitz and Mark Stinson 1999 David Higgins 2000 Jackie Hanson 2001 Aaron Benike 2002 Gary Zander 2003 John McGuine 2004 Mike Coats 2005 Steve Buss 2006 Mike Hortop 2007 Jodi Hruska 2008 Jay Burke 2009 Kevin Reckinger 2010 Paul Gregor 2011 Mike Larson 2012 Kathy Einck 2013 Les Radcliffe
Previous Winners - Associates1985 Don Soderberg 1987 Robert Suk 1988 Jim Buchan 1989 Mary Moylan 1990 Craig Wendland 1991 Ron Bailey 1992 Bill Tointon 1993 Wayne Lewis 1994 Donna Scott Herriot 1995 Julie Timmerman 1996 John Arnold 1997 Steve Christopherson 1998 Brent Buchan 1999 Kim Zimmer 2000 Julie Praus 2001 Karin Buechler 2002 Dennis Hanson 2003 Carla Kilpatrick 2004 Brent Buchan 2005 Jim Gander 2006 Brian Carlson 2007 John Eischen 2008 Wayne Eisen 2009 Jennifer Maass 2010 Tony Joseph 2011 Patty Hanson 2012 David Kane 2013 Jennifer Maass
Previous Winners - Company 2009 Energy Products amp Design 2010 Knutson Construction 2011 Minnesota Energy Resources 2012 Wendland Utz 2013 Home Federal Savings Bank
Current President and Vice-President are not eligible for selection
I Nominate
Reasons for Nomination
I Nominate
Reasons for Nomination
I Nominate
CLICK HERETO DOWNLOAD
wwwRochesterAreaBuilderscom18 | September 2014
construction fashion expose
c o n s t r u c t i o n f a s h i o n e x p o s e
WwwRochesterAreaBuilderscomSeptember 2014 | 19
Members2014 Commercial Builders Council116 Members as of 63014AB Systems IncAccord Electric IncAdvanced DisposalAlpha Video amp AudioAlvin E Benike IncBEVCOMMThe Blue Book
of Building amp Construction
The Boldt CompanyBraun Intertec
CorporationBriese Iron Works IncBrock White CompanyCO Brown AgencyCambriaCarpet OneCharter
CommunicationsMedia
Chosen Valley Testing Inc
Clayton Thomas Blinds of Rochester
Construction Partnership
CRW architecture + design group inc
Custom AlarmCustom Communications Inc
D2E LLCDonlar Construction
CompanyDoyle Conner CompanyDunham Associates
IncDunlap amp SeegerJE Dunn ConstructionEastwood Bankeci llcElcor Construction IncEnergy Products amp
Design IncEnventisExpert Insulation IncFat Willyrsquos Bar amp GrillFerguson EnterprisesGerhardsGoodin CompanyHaley Comfort Systems
(Authorized FireSide Dealer)
WL Hall CompanyHDR ArchitectureHeartman InsuranceHGA Architects and
EngineersHillerrsquos Flooring AmericaHiMEC at HomeHome Federal Savings
BankHome Improvement
Professionals IncHunt Electric
CorporationInstitute for
Environmental Assessment
PA Johnson Construction LLC
KampM Glass CompanyKane amp Johnson
Architects IncKey Builders IncKnutson Construction
ServicesKomitt Concrete IncKraus-Anderson
Construction CompanyKreofsky Building
SuppliesKruse LumberKuntz Electric Inc
Kwik Trip IncLeitzen Concrete
Products IncMarvin Windows amp
DoorsMavo Systems IncMcGhie amp Betts - a
Division of WSB amp Associates Inc
McGough ConstructionMEC Construction IncMEP AssociatesMerchants BankMerit Contracting IncMidwest Walls LLCMinnesota Energy
Resources CorporationMinnwest BankNickelson Painting IncNorth Star Stone amp
MasonryOlmsted National BankOn Site CompaniesPalmer Soderberg IncPella Windows amp DoorsPeoplersquos Energy
CooperativePompeii Painting IncPrehn Building Sales
IncPremier Bank RochesterProBuild Company LLCReliable Contractors
IncRochester Area
Appraisals LLCRochester Area Econ
Development IncRochester Public
UtilitiesRochester Ready Mix
Concrete CoRochester Sign Service
IncRochester Title amp
Escrow Company IncRSP ArchitectsRyan Electric IncSchoeppner IncSchwab LLCSchwickertrsquos Tecta
America LLCSEH YaggyStantecSterling State BankStructural Design
Group IncSuperior MechanicalTamarack Materials of
Rochester IncThink Mutual BankTonna Mechanical IncTSP Architects amp
EngineersUnited RentalsThe Urban Studio LLCValor Mechanical IncVeit CompaniesVertical Limit
ConstructionViking Automatic
Sprinkler CompanyViking Electric SupplyWeis Builders IncWells Fargo Bank
Minnesota NAWendland UtzWest BankWHKS amp CompanyWHV IncWidseth Smith Nolting
BUILDERS COUNCILCOMMERCIAL
a d i v i s i o n o f R o c h e s t e r A r e a B u i l d e r s I n c
EXECUTIVE COMMITTEEChairperson Chris Terry Knutson Construction ServicesVice Chairperson Nick Leimer Kraus-Anderson Construction CompanyPast Chairperson Sue Hanson Rochester Title amp Escrow Company IncMembers-at-LargeJohn Hill Schwab LLCShaun Knode AB Systems IncJohn Kuntz Kuntz Electric IncLevi Kaiser AE Benike IncMatt Mohs WHKS amp CompanyMike Nordstrom Superior Mechanical
August Meeting Photos
New Member
Clayton Thomas Blinds of RochesterDarlene Drew
2400 Country Club Rd SWRochester MN 55902
507-258-4457
August MEETINGDATE Wednesday August 6th 2014TIME Registration amp Networking at 700 AM Program at 730 AMPLACE Ramada Hotel amp Conference CenterPROGRAM World Fair 2023SPEAKERS Mark Ritchie Minnesota Secretary of State
wwwRochesterAreaBuilderscom20 | September 2014
2014 VALUATION 2013 VALUATION
New Residential Single Family Dwelling 30 7389265 39 9441463
Townhome Dwelling 8 1224172 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 45 283519 33 160271
Room Addition 3 85012 4 177306
Porch Additions 1 8000 2 39494
Other Additions 4 38500 2 23940
Basement Finish 18 240045 24 323650
Alterations 41 234327 45 281947
Multi-Family Addition 0 0 4 31620
Multi-Family Alterations 14 151160 6 4615400 New Commercial Assembly (Church) 0 0 0 0
Assembly (General) 0 0 1 2720000
Assembly (RestaurantBar) 0 0 0 0
Business 0 0 0 0
Education 0 0 0 0
FactoryIndustrial 0 0 0 0
Institution 0 0 0 0
Mercantile 0 0 1 580000
Miscelaneous 0 0 0 0
Utility (General) 0 0 1 90000
Residential (CareAssisted Living) 0 0 0 0
Storage (General) 0 0 0 0
Storage (Warehouse) 0 0 0 0 Existing CommercialAddition 3 4313000 2 1214050
Alterations 25 4451261 40 6158997
Structural Shell 0 0 0 0
ldquoWhite Boxrdquo 0 0 0 0
Interior Demolition Only 2 2017000 3 54800
Other Phased Permits 1 6700 0 0
Other ConstructionBusiness Signs 4 10630 12 87202
Advertising Sign 0 0 0 0
Footings amp Foundations 1 76000 1 1100000
Demolition 0 1
Rochester Building Permits July 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
June 81 59 43 36 36 12 26 32 33 41
July 58 36 60 23 21 23 8 39 39 38
TOTAL 397 329 275 178 139 128 102 180 201 192
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 702 506 417 302 274 200 191 299 326 192
Single Family Homes
Year To Date Statistics 2014 2013 NO VALUATION NO VALUATION
Building Permits Issued to Date 1377 199056393 1280 149430856
Single Family Dwelling 186 45041027 201 47362534
Multi-Family Buildings Total Units 39 1 3702052 0 0
Trade Permits Issued to Date 4558 46616612 4145 40187782
Electrical 1573 20801155 1355 18804490
Electrical (Temp Service) 159 46875 188 39500
Mechanical 1187 12309661 1078 10781042
Gas Piping 317 546576 286 263280
Fireplace 237 629268 215 506084
Hydronic System 94 4005425 69 3097653
Plumbing 991 8277652 954 6695793
Total Permits YTD 5935 245673005 5425 189618638
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
WwwRochesterAreaBuilderscomSeptember 2014 | 21
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
JUNE 2014
New Residential NUMBER VALUATION
Single Family 9 1991399
Commercial
Addition 1 89470
Existing Residential
Deck Addition 7 41847
Basement Finish 1 12000
Garage 1 2267
Accessory Building 2 11500
ByronBuilding Permits
JULY 2014
Existing Residential NUMBER VALUATION
Sprinkler System 1 5000
Residing 1 5000
Reroof 5 25000
Deck 2 6000
Mechanical 1 1000
Garage 1 20000
Pine IslandBuilding Permits
wwwRochesterAreaBuilderscom22 | September 2014
In early 2000 the SampP 500 hit 1553 and the tech-heavy NASDAQ surpassed 5000 Two years later the SampP was at 768 and the NASDAQ was at 800 In the process $6 trillion in household wealth was wiped out We now call that period the dot-com bubble About half a decade later we experienced the housing market bubble Interestingly the value of residential real estate destroyed during that crisis was also about $6 trillion Yet the dot-com bubble resulted in a mild recession while the housing bust lead to the Great Recession What was different It turns a major culprit was which households suffered the destruction of wealth
To set the table ponder this During the housing bust retail spending fell 8 from 2007 to 2009 one the largest drops ever By contrast retail spending increased by 5 between 2000 and 2002 Clearly the losses sustained during the dot-com bust had minimal impacts on household spending decisions and thus on the overall economy Here is why
The decline in home prices that began in 2007 was highly concentrated among households with very limited financial resources As a result these now much-poorer households dramatically pulled back on spending and in the process unwittingly helped usher in the Great Recession Remember retail spending is about a quarter of GDP so a decline of 8 over two years reduces GDP by 2 -- a huge amount It is as if these poorer households were the transmission mechanism through which the Great Recession got its energy
Exacerbating and reinforcing this downward spiral was the role of debt or leverage Remember by 2004 or 2005 a large percentage of first-time home buyers had low FICO scores sketchy employment histories
and limited assets To compensate these Alt-A and subprime buyers borrowed heavily with their now highly levered house being their major financial asset For example among the poorest quintile of the population 80 of their net worth is in their house Even among the middle quintile home equity is still 60 of their net worth By borrowing so much just a small decline in house prices could put these buyers upside down and wipe them out Which is exactly what happened and is what turned a recession into the Great Recession Between 2007 and 2010 the bottom 20 of the population saw their net worth fall from about $30000 to zero
By contrast the financial losses sustained during the dot-com bubble were essentially walled off and had relatively little effect on the overall economy This is because stock ownership is concentrated among the wealthy As the wealthy have less debt and more assets they could essentially shrug off the much larger financial losses they sustained yet not have them alter their day-to-day spending decisions Among the wealthiest 20 of the population home equity represents just 25 of their net worth Moreover depression-era federal laws make it hard to borrow more than 50 of the cost of stock purchases thereby limiting the potentially negative role of leverage
In short the home buyers who bought in 2004 and 2005 had limited wealth and had more of it at risk than earlier home buyers When the music stopped they were highly levered and wholly unable to protect themselves That quickly resulted in (among other things) reduced spending which shrank GDP and quickly cascaded into the Great Recession
+++++++++++++++++
All Bubbles Are Not ++++++++++Created Equal + + + + + + + + + + + + + + + + +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
WwwRochesterAreaBuilderscomSeptember 2014 | 23
NONE
MEMBERSHIPS PENDINGNONE
The firms listed below have applied for membership in Rochester Area Builders Inc
MEMBERSHIP TOTAL 451RETENTION RATE 929
As of 63014
WE WELCOME THE FOLLOWING NEW MEMBERS IN AUGUST
Membership InformationMembership Renewals as of 73114
Two to Four Years
Kraus-Anderson Construction Company 2012Electrical Solutions amp Service 2011Energy Panel Structures 2011Lowersquos Home Improvement 2011Minnwest Bank 2011RCTC Carpentry Program 2011Reynolds Design and Construction 2010
Five to Nine Years
Great River Overhead Door 2007Meadow Lakes Builders 2007Rochester International Event Center 2007The Urban Studio LLC 2007Hunt Electric Corporation 2006Otis Custom Homes LLC 2006Larry Newman Drywall 2005Pahl amp Kaye Inc 2005Synergy Products 2005Tradesmen International Inc 2005
Ten to 19 Years
Greg Wellik Construction 2004Morris Concrete Inc 2004AampA Electric amp Underground Inc 2003Advanced Disposal 2002Knutson Construction Services 2002Tagrsquos Drywall Inc 2001Ronningen Roofing Inc 2000Ferguson Enterprises 1998
20 to 24 Years
Bright Ideas 1993Hirshfieldrsquos Decorating Center 1993Brock White Company 1991Dan Severson Builders Inc 1991
25 Years amp More
Gerhards 1988Express Employment Professionals 1985Townsquare Media Rochester 1983Smith Schafer amp Associates Ltd 1982Hayfield Window amp Door Company 1981Quality Overhead Door Company Inc 1981Energy Products amp Design Inc 1980Tom Brogan Heating amp Air Conditioning 1980Alvin E Benike Inc 1979Pella Windows amp Doors 1978Northern Lights amp Furnishings 1976Wells Fargo Home Mortgage 1964Alexander amp Sons Builders 1962
NEW APPLICANTS
CLIFTONLARSONALLEN LLP7389 Airport View Drive SW Suite 100
Rochester MN 55902Phone 507-280-2300Contact Paul Alberts
Associate MemberAccountingConsulting
Sponsored by Joel Alberts AampA Electric amp Underground Inc
DISTINGUISHED HOMES BY MITCH HAGEN LLC3015 18th Avenue SWRochester MN 55902Phone 507- 951-1962Contact Mitch Hagen
Builder MemberResidential Builder amp Remodeler
Sponsored by Brandon Vagt XRG Concepts LLC
LOW VOLTAGE CONTRACTORS
4200 West 76th StreetMinneapolis MN 55435
Phone 952-835-4600Contact Cathy Trast
Associate MemberFire amp Life Safety Integrated Systems Service Provider
Sponsored by John Eckerman The Boldt Company
PACE INTERNATIONAL 3582 Technology Drive NW
Rochester MN 55901Phone 507-424-4900Contact Jim WestraAssociate Member
Commercial Satellite amp Cable Television ProductsSponsored by Jay Burke Heartwood Homes of Rochester Inc
wwwRochesterAreaBuilderscom24 | September 2014
Put your membershipto work nowMoney-saving discounts that benefit yourbusiness your employees and your family
wwwnahborgMA
National Association of Home Builders
R
wwwRochesterAreaBuilderscom16 | September 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 August 2014
President Chad Kompelein
Builder VPKC Chermak
Associate VPGeorge Cundy
President ElectMike Paradise
TreasurerGerry Traut
SecretaryKurt Welker
Past PresidentKeith Kylmala
NAHB RepresentativeKathe Ostrom
Theyrsquore HereThe new codes are (finally) out Following a mutli-year process to promulgate the 2012 International Building Code the Minnesota Department of Labor and Industry (DLI) has officially published the final language for the Minnesota Building Code With the final language in hand the Builders Association of Minnesota (BAM) is adjusting and completing seven code guide documents that will be provided to members-only in September The code is slated to be enforced starting January 24 2015
Membership with the builders association is the only way to obtain a copy of these documents and as such BAM will be promoting the code guides ndash and membership ndash to all 13000 licensed contractors If interested in promoting your company statewide these code guides still have sponsorships available More at wwwbamnorgsponsorship-opps Contact Remi Stone at remibamnorg or Katherine Nielsen at katherinenbamnorg with any questions
Creating the code documents is codes expert Ed VonThoma his company Building Knowledge Inc (BKI) and a committee including 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 Thank you to these members for generously donating their time to help perfect the members-only guides
The seven code guide documents are
bull Top 20 Code Changes in the Residential Building Code
bull Top 20 Code Changes in the Energy Code
bull 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
A major benefit of membership these guides are available ONLY to members DLI issues the codes but BAM develops guides on how to implement the new codes The documents will be sent to members and made available on the BAM website optimized for both printing and easy viewing on your mobile devices out in the field
Continuing education courses based on these code guides have been assembled by BKI who is available to teach classes around the state to help members prepare to build to the new code Let your local association know if yoursquod like BKI to teach in your community
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 building industry specific construction contracts More benefits of BAM membership can be found online at wwwbamnorgmembership
WwwRochesterAreaBuilderscomSeptember 2014 | 17
Committee UpdatesAWARDS COMMITTEECHAIRPERSON Les Radcliffe Radcliffe Homes amp Remodeling
This committee is currently meeting to look for ldquospecialrdquo members to recognize for their achievements to the Association in 2014 They will choose a Rising Star - a member who has been very active in their first three years of membership as well as nominating builders and associates to receive the Builder amp Associate of the Year Award and for the company who has supported the association The Cornerstone Award In this monthrsquos newsletter you have the opportunity to nominate someone whom you have noticed working extra hard for RAB Please download the Form fill it out and return it to the RAB office
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 2014Jennifer Maass GerhardsMARKETINGRob 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
ROCHESTER AREA BUILDERS INCASKS YOU TO MAKE NOMINATIONS FOR THE
THESE MEMBERS MUST BE DEDICATED TO THE BUILDING INDUSTRY ACTIVE PARTICIPANTS OF THE ASSOCIATION
ENTHUSIASTIC
The recipients of these three awards will be chosen by the Board of Directors at their December meeting and will be awarded at the January General Membership Meeting
Previous Winners - Builders1992 Robert Gill and Richard Hanson and Joe Weis 1993 Frank Kottschade 1994 Roger Lubahn 1995 Jay Burke 1996 Dan Severson 1997 Les Radcliffe 1998 Bob DeWitz and Mark Stinson 1999 David Higgins 2000 Jackie Hanson 2001 Aaron Benike 2002 Gary Zander 2003 John McGuine 2004 Mike Coats 2005 Steve Buss 2006 Mike Hortop 2007 Jodi Hruska 2008 Jay Burke 2009 Kevin Reckinger 2010 Paul Gregor 2011 Mike Larson 2012 Kathy Einck 2013 Les Radcliffe
Previous Winners - Associates1985 Don Soderberg 1987 Robert Suk 1988 Jim Buchan 1989 Mary Moylan 1990 Craig Wendland 1991 Ron Bailey 1992 Bill Tointon 1993 Wayne Lewis 1994 Donna Scott Herriot 1995 Julie Timmerman 1996 John Arnold 1997 Steve Christopherson 1998 Brent Buchan 1999 Kim Zimmer 2000 Julie Praus 2001 Karin Buechler 2002 Dennis Hanson 2003 Carla Kilpatrick 2004 Brent Buchan 2005 Jim Gander 2006 Brian Carlson 2007 John Eischen 2008 Wayne Eisen 2009 Jennifer Maass 2010 Tony Joseph 2011 Patty Hanson 2012 David Kane 2013 Jennifer Maass
Previous Winners - Company 2009 Energy Products amp Design 2010 Knutson Construction 2011 Minnesota Energy Resources 2012 Wendland Utz 2013 Home Federal Savings Bank
Current President and Vice-President are not eligible for selection
I Nominate
Reasons for Nomination
I Nominate
Reasons for Nomination
I Nominate
CLICK HERETO DOWNLOAD
wwwRochesterAreaBuilderscom18 | September 2014
construction fashion expose
c o n s t r u c t i o n f a s h i o n e x p o s e
WwwRochesterAreaBuilderscomSeptember 2014 | 19
Members2014 Commercial Builders Council116 Members as of 63014AB Systems IncAccord Electric IncAdvanced DisposalAlpha Video amp AudioAlvin E Benike IncBEVCOMMThe Blue Book
of Building amp Construction
The Boldt CompanyBraun Intertec
CorporationBriese Iron Works IncBrock White CompanyCO Brown AgencyCambriaCarpet OneCharter
CommunicationsMedia
Chosen Valley Testing Inc
Clayton Thomas Blinds of Rochester
Construction Partnership
CRW architecture + design group inc
Custom AlarmCustom Communications Inc
D2E LLCDonlar Construction
CompanyDoyle Conner CompanyDunham Associates
IncDunlap amp SeegerJE Dunn ConstructionEastwood Bankeci llcElcor Construction IncEnergy Products amp
Design IncEnventisExpert Insulation IncFat Willyrsquos Bar amp GrillFerguson EnterprisesGerhardsGoodin CompanyHaley Comfort Systems
(Authorized FireSide Dealer)
WL Hall CompanyHDR ArchitectureHeartman InsuranceHGA Architects and
EngineersHillerrsquos Flooring AmericaHiMEC at HomeHome Federal Savings
BankHome Improvement
Professionals IncHunt Electric
CorporationInstitute for
Environmental Assessment
PA Johnson Construction LLC
KampM Glass CompanyKane amp Johnson
Architects IncKey Builders IncKnutson Construction
ServicesKomitt Concrete IncKraus-Anderson
Construction CompanyKreofsky Building
SuppliesKruse LumberKuntz Electric Inc
Kwik Trip IncLeitzen Concrete
Products IncMarvin Windows amp
DoorsMavo Systems IncMcGhie amp Betts - a
Division of WSB amp Associates Inc
McGough ConstructionMEC Construction IncMEP AssociatesMerchants BankMerit Contracting IncMidwest Walls LLCMinnesota Energy
Resources CorporationMinnwest BankNickelson Painting IncNorth Star Stone amp
MasonryOlmsted National BankOn Site CompaniesPalmer Soderberg IncPella Windows amp DoorsPeoplersquos Energy
CooperativePompeii Painting IncPrehn Building Sales
IncPremier Bank RochesterProBuild Company LLCReliable Contractors
IncRochester Area
Appraisals LLCRochester Area Econ
Development IncRochester Public
UtilitiesRochester Ready Mix
Concrete CoRochester Sign Service
IncRochester Title amp
Escrow Company IncRSP ArchitectsRyan Electric IncSchoeppner IncSchwab LLCSchwickertrsquos Tecta
America LLCSEH YaggyStantecSterling State BankStructural Design
Group IncSuperior MechanicalTamarack Materials of
Rochester IncThink Mutual BankTonna Mechanical IncTSP Architects amp
EngineersUnited RentalsThe Urban Studio LLCValor Mechanical IncVeit CompaniesVertical Limit
ConstructionViking Automatic
Sprinkler CompanyViking Electric SupplyWeis Builders IncWells Fargo Bank
Minnesota NAWendland UtzWest BankWHKS amp CompanyWHV IncWidseth Smith Nolting
BUILDERS COUNCILCOMMERCIAL
a d i v i s i o n o f R o c h e s t e r A r e a B u i l d e r s I n c
EXECUTIVE COMMITTEEChairperson Chris Terry Knutson Construction ServicesVice Chairperson Nick Leimer Kraus-Anderson Construction CompanyPast Chairperson Sue Hanson Rochester Title amp Escrow Company IncMembers-at-LargeJohn Hill Schwab LLCShaun Knode AB Systems IncJohn Kuntz Kuntz Electric IncLevi Kaiser AE Benike IncMatt Mohs WHKS amp CompanyMike Nordstrom Superior Mechanical
August Meeting Photos
New Member
Clayton Thomas Blinds of RochesterDarlene Drew
2400 Country Club Rd SWRochester MN 55902
507-258-4457
August MEETINGDATE Wednesday August 6th 2014TIME Registration amp Networking at 700 AM Program at 730 AMPLACE Ramada Hotel amp Conference CenterPROGRAM World Fair 2023SPEAKERS Mark Ritchie Minnesota Secretary of State
wwwRochesterAreaBuilderscom20 | September 2014
2014 VALUATION 2013 VALUATION
New Residential Single Family Dwelling 30 7389265 39 9441463
Townhome Dwelling 8 1224172 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 45 283519 33 160271
Room Addition 3 85012 4 177306
Porch Additions 1 8000 2 39494
Other Additions 4 38500 2 23940
Basement Finish 18 240045 24 323650
Alterations 41 234327 45 281947
Multi-Family Addition 0 0 4 31620
Multi-Family Alterations 14 151160 6 4615400 New Commercial Assembly (Church) 0 0 0 0
Assembly (General) 0 0 1 2720000
Assembly (RestaurantBar) 0 0 0 0
Business 0 0 0 0
Education 0 0 0 0
FactoryIndustrial 0 0 0 0
Institution 0 0 0 0
Mercantile 0 0 1 580000
Miscelaneous 0 0 0 0
Utility (General) 0 0 1 90000
Residential (CareAssisted Living) 0 0 0 0
Storage (General) 0 0 0 0
Storage (Warehouse) 0 0 0 0 Existing CommercialAddition 3 4313000 2 1214050
Alterations 25 4451261 40 6158997
Structural Shell 0 0 0 0
ldquoWhite Boxrdquo 0 0 0 0
Interior Demolition Only 2 2017000 3 54800
Other Phased Permits 1 6700 0 0
Other ConstructionBusiness Signs 4 10630 12 87202
Advertising Sign 0 0 0 0
Footings amp Foundations 1 76000 1 1100000
Demolition 0 1
Rochester Building Permits July 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
June 81 59 43 36 36 12 26 32 33 41
July 58 36 60 23 21 23 8 39 39 38
TOTAL 397 329 275 178 139 128 102 180 201 192
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 702 506 417 302 274 200 191 299 326 192
Single Family Homes
Year To Date Statistics 2014 2013 NO VALUATION NO VALUATION
Building Permits Issued to Date 1377 199056393 1280 149430856
Single Family Dwelling 186 45041027 201 47362534
Multi-Family Buildings Total Units 39 1 3702052 0 0
Trade Permits Issued to Date 4558 46616612 4145 40187782
Electrical 1573 20801155 1355 18804490
Electrical (Temp Service) 159 46875 188 39500
Mechanical 1187 12309661 1078 10781042
Gas Piping 317 546576 286 263280
Fireplace 237 629268 215 506084
Hydronic System 94 4005425 69 3097653
Plumbing 991 8277652 954 6695793
Total Permits YTD 5935 245673005 5425 189618638
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
WwwRochesterAreaBuilderscomSeptember 2014 | 21
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
JUNE 2014
New Residential NUMBER VALUATION
Single Family 9 1991399
Commercial
Addition 1 89470
Existing Residential
Deck Addition 7 41847
Basement Finish 1 12000
Garage 1 2267
Accessory Building 2 11500
ByronBuilding Permits
JULY 2014
Existing Residential NUMBER VALUATION
Sprinkler System 1 5000
Residing 1 5000
Reroof 5 25000
Deck 2 6000
Mechanical 1 1000
Garage 1 20000
Pine IslandBuilding Permits
wwwRochesterAreaBuilderscom22 | September 2014
In early 2000 the SampP 500 hit 1553 and the tech-heavy NASDAQ surpassed 5000 Two years later the SampP was at 768 and the NASDAQ was at 800 In the process $6 trillion in household wealth was wiped out We now call that period the dot-com bubble About half a decade later we experienced the housing market bubble Interestingly the value of residential real estate destroyed during that crisis was also about $6 trillion Yet the dot-com bubble resulted in a mild recession while the housing bust lead to the Great Recession What was different It turns a major culprit was which households suffered the destruction of wealth
To set the table ponder this During the housing bust retail spending fell 8 from 2007 to 2009 one the largest drops ever By contrast retail spending increased by 5 between 2000 and 2002 Clearly the losses sustained during the dot-com bust had minimal impacts on household spending decisions and thus on the overall economy Here is why
The decline in home prices that began in 2007 was highly concentrated among households with very limited financial resources As a result these now much-poorer households dramatically pulled back on spending and in the process unwittingly helped usher in the Great Recession Remember retail spending is about a quarter of GDP so a decline of 8 over two years reduces GDP by 2 -- a huge amount It is as if these poorer households were the transmission mechanism through which the Great Recession got its energy
Exacerbating and reinforcing this downward spiral was the role of debt or leverage Remember by 2004 or 2005 a large percentage of first-time home buyers had low FICO scores sketchy employment histories
and limited assets To compensate these Alt-A and subprime buyers borrowed heavily with their now highly levered house being their major financial asset For example among the poorest quintile of the population 80 of their net worth is in their house Even among the middle quintile home equity is still 60 of their net worth By borrowing so much just a small decline in house prices could put these buyers upside down and wipe them out Which is exactly what happened and is what turned a recession into the Great Recession Between 2007 and 2010 the bottom 20 of the population saw their net worth fall from about $30000 to zero
By contrast the financial losses sustained during the dot-com bubble were essentially walled off and had relatively little effect on the overall economy This is because stock ownership is concentrated among the wealthy As the wealthy have less debt and more assets they could essentially shrug off the much larger financial losses they sustained yet not have them alter their day-to-day spending decisions Among the wealthiest 20 of the population home equity represents just 25 of their net worth Moreover depression-era federal laws make it hard to borrow more than 50 of the cost of stock purchases thereby limiting the potentially negative role of leverage
In short the home buyers who bought in 2004 and 2005 had limited wealth and had more of it at risk than earlier home buyers When the music stopped they were highly levered and wholly unable to protect themselves That quickly resulted in (among other things) reduced spending which shrank GDP and quickly cascaded into the Great Recession
+++++++++++++++++
All Bubbles Are Not ++++++++++Created Equal + + + + + + + + + + + + + + + + +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
WwwRochesterAreaBuilderscomSeptember 2014 | 23
NONE
MEMBERSHIPS PENDINGNONE
The firms listed below have applied for membership in Rochester Area Builders Inc
MEMBERSHIP TOTAL 451RETENTION RATE 929
As of 63014
WE WELCOME THE FOLLOWING NEW MEMBERS IN AUGUST
Membership InformationMembership Renewals as of 73114
Two to Four Years
Kraus-Anderson Construction Company 2012Electrical Solutions amp Service 2011Energy Panel Structures 2011Lowersquos Home Improvement 2011Minnwest Bank 2011RCTC Carpentry Program 2011Reynolds Design and Construction 2010
Five to Nine Years
Great River Overhead Door 2007Meadow Lakes Builders 2007Rochester International Event Center 2007The Urban Studio LLC 2007Hunt Electric Corporation 2006Otis Custom Homes LLC 2006Larry Newman Drywall 2005Pahl amp Kaye Inc 2005Synergy Products 2005Tradesmen International Inc 2005
Ten to 19 Years
Greg Wellik Construction 2004Morris Concrete Inc 2004AampA Electric amp Underground Inc 2003Advanced Disposal 2002Knutson Construction Services 2002Tagrsquos Drywall Inc 2001Ronningen Roofing Inc 2000Ferguson Enterprises 1998
20 to 24 Years
Bright Ideas 1993Hirshfieldrsquos Decorating Center 1993Brock White Company 1991Dan Severson Builders Inc 1991
25 Years amp More
Gerhards 1988Express Employment Professionals 1985Townsquare Media Rochester 1983Smith Schafer amp Associates Ltd 1982Hayfield Window amp Door Company 1981Quality Overhead Door Company Inc 1981Energy Products amp Design Inc 1980Tom Brogan Heating amp Air Conditioning 1980Alvin E Benike Inc 1979Pella Windows amp Doors 1978Northern Lights amp Furnishings 1976Wells Fargo Home Mortgage 1964Alexander amp Sons Builders 1962
NEW APPLICANTS
CLIFTONLARSONALLEN LLP7389 Airport View Drive SW Suite 100
Rochester MN 55902Phone 507-280-2300Contact Paul Alberts
Associate MemberAccountingConsulting
Sponsored by Joel Alberts AampA Electric amp Underground Inc
DISTINGUISHED HOMES BY MITCH HAGEN LLC3015 18th Avenue SWRochester MN 55902Phone 507- 951-1962Contact Mitch Hagen
Builder MemberResidential Builder amp Remodeler
Sponsored by Brandon Vagt XRG Concepts LLC
LOW VOLTAGE CONTRACTORS
4200 West 76th StreetMinneapolis MN 55435
Phone 952-835-4600Contact Cathy Trast
Associate MemberFire amp Life Safety Integrated Systems Service Provider
Sponsored by John Eckerman The Boldt Company
PACE INTERNATIONAL 3582 Technology Drive NW
Rochester MN 55901Phone 507-424-4900Contact Jim WestraAssociate Member
Commercial Satellite amp Cable Television ProductsSponsored by Jay Burke Heartwood Homes of Rochester Inc
wwwRochesterAreaBuilderscom24 | September 2014
Put your membershipto work nowMoney-saving discounts that benefit yourbusiness your employees and your family
wwwnahborgMA
National Association of Home Builders
R
WwwRochesterAreaBuilderscomSeptember 2014 | 17
Committee UpdatesAWARDS COMMITTEECHAIRPERSON Les Radcliffe Radcliffe Homes amp Remodeling
This committee is currently meeting to look for ldquospecialrdquo members to recognize for their achievements to the Association in 2014 They will choose a Rising Star - a member who has been very active in their first three years of membership as well as nominating builders and associates to receive the Builder amp Associate of the Year Award and for the company who has supported the association The Cornerstone Award In this monthrsquos newsletter you have the opportunity to nominate someone whom you have noticed working extra hard for RAB Please download the Form fill it out and return it to the RAB office
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 2014Jennifer Maass GerhardsMARKETINGRob 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
ROCHESTER AREA BUILDERS INCASKS YOU TO MAKE NOMINATIONS FOR THE
THESE MEMBERS MUST BE DEDICATED TO THE BUILDING INDUSTRY ACTIVE PARTICIPANTS OF THE ASSOCIATION
ENTHUSIASTIC
The recipients of these three awards will be chosen by the Board of Directors at their December meeting and will be awarded at the January General Membership Meeting
Previous Winners - Builders1992 Robert Gill and Richard Hanson and Joe Weis 1993 Frank Kottschade 1994 Roger Lubahn 1995 Jay Burke 1996 Dan Severson 1997 Les Radcliffe 1998 Bob DeWitz and Mark Stinson 1999 David Higgins 2000 Jackie Hanson 2001 Aaron Benike 2002 Gary Zander 2003 John McGuine 2004 Mike Coats 2005 Steve Buss 2006 Mike Hortop 2007 Jodi Hruska 2008 Jay Burke 2009 Kevin Reckinger 2010 Paul Gregor 2011 Mike Larson 2012 Kathy Einck 2013 Les Radcliffe
Previous Winners - Associates1985 Don Soderberg 1987 Robert Suk 1988 Jim Buchan 1989 Mary Moylan 1990 Craig Wendland 1991 Ron Bailey 1992 Bill Tointon 1993 Wayne Lewis 1994 Donna Scott Herriot 1995 Julie Timmerman 1996 John Arnold 1997 Steve Christopherson 1998 Brent Buchan 1999 Kim Zimmer 2000 Julie Praus 2001 Karin Buechler 2002 Dennis Hanson 2003 Carla Kilpatrick 2004 Brent Buchan 2005 Jim Gander 2006 Brian Carlson 2007 John Eischen 2008 Wayne Eisen 2009 Jennifer Maass 2010 Tony Joseph 2011 Patty Hanson 2012 David Kane 2013 Jennifer Maass
Previous Winners - Company 2009 Energy Products amp Design 2010 Knutson Construction 2011 Minnesota Energy Resources 2012 Wendland Utz 2013 Home Federal Savings Bank
Current President and Vice-President are not eligible for selection
I Nominate
Reasons for Nomination
I Nominate
Reasons for Nomination
I Nominate
CLICK HERETO DOWNLOAD
wwwRochesterAreaBuilderscom18 | September 2014
construction fashion expose
c o n s t r u c t i o n f a s h i o n e x p o s e
WwwRochesterAreaBuilderscomSeptember 2014 | 19
Members2014 Commercial Builders Council116 Members as of 63014AB Systems IncAccord Electric IncAdvanced DisposalAlpha Video amp AudioAlvin E Benike IncBEVCOMMThe Blue Book
of Building amp Construction
The Boldt CompanyBraun Intertec
CorporationBriese Iron Works IncBrock White CompanyCO Brown AgencyCambriaCarpet OneCharter
CommunicationsMedia
Chosen Valley Testing Inc
Clayton Thomas Blinds of Rochester
Construction Partnership
CRW architecture + design group inc
Custom AlarmCustom Communications Inc
D2E LLCDonlar Construction
CompanyDoyle Conner CompanyDunham Associates
IncDunlap amp SeegerJE Dunn ConstructionEastwood Bankeci llcElcor Construction IncEnergy Products amp
Design IncEnventisExpert Insulation IncFat Willyrsquos Bar amp GrillFerguson EnterprisesGerhardsGoodin CompanyHaley Comfort Systems
(Authorized FireSide Dealer)
WL Hall CompanyHDR ArchitectureHeartman InsuranceHGA Architects and
EngineersHillerrsquos Flooring AmericaHiMEC at HomeHome Federal Savings
BankHome Improvement
Professionals IncHunt Electric
CorporationInstitute for
Environmental Assessment
PA Johnson Construction LLC
KampM Glass CompanyKane amp Johnson
Architects IncKey Builders IncKnutson Construction
ServicesKomitt Concrete IncKraus-Anderson
Construction CompanyKreofsky Building
SuppliesKruse LumberKuntz Electric Inc
Kwik Trip IncLeitzen Concrete
Products IncMarvin Windows amp
DoorsMavo Systems IncMcGhie amp Betts - a
Division of WSB amp Associates Inc
McGough ConstructionMEC Construction IncMEP AssociatesMerchants BankMerit Contracting IncMidwest Walls LLCMinnesota Energy
Resources CorporationMinnwest BankNickelson Painting IncNorth Star Stone amp
MasonryOlmsted National BankOn Site CompaniesPalmer Soderberg IncPella Windows amp DoorsPeoplersquos Energy
CooperativePompeii Painting IncPrehn Building Sales
IncPremier Bank RochesterProBuild Company LLCReliable Contractors
IncRochester Area
Appraisals LLCRochester Area Econ
Development IncRochester Public
UtilitiesRochester Ready Mix
Concrete CoRochester Sign Service
IncRochester Title amp
Escrow Company IncRSP ArchitectsRyan Electric IncSchoeppner IncSchwab LLCSchwickertrsquos Tecta
America LLCSEH YaggyStantecSterling State BankStructural Design
Group IncSuperior MechanicalTamarack Materials of
Rochester IncThink Mutual BankTonna Mechanical IncTSP Architects amp
EngineersUnited RentalsThe Urban Studio LLCValor Mechanical IncVeit CompaniesVertical Limit
ConstructionViking Automatic
Sprinkler CompanyViking Electric SupplyWeis Builders IncWells Fargo Bank
Minnesota NAWendland UtzWest BankWHKS amp CompanyWHV IncWidseth Smith Nolting
BUILDERS COUNCILCOMMERCIAL
a d i v i s i o n o f R o c h e s t e r A r e a B u i l d e r s I n c
EXECUTIVE COMMITTEEChairperson Chris Terry Knutson Construction ServicesVice Chairperson Nick Leimer Kraus-Anderson Construction CompanyPast Chairperson Sue Hanson Rochester Title amp Escrow Company IncMembers-at-LargeJohn Hill Schwab LLCShaun Knode AB Systems IncJohn Kuntz Kuntz Electric IncLevi Kaiser AE Benike IncMatt Mohs WHKS amp CompanyMike Nordstrom Superior Mechanical
August Meeting Photos
New Member
Clayton Thomas Blinds of RochesterDarlene Drew
2400 Country Club Rd SWRochester MN 55902
507-258-4457
August MEETINGDATE Wednesday August 6th 2014TIME Registration amp Networking at 700 AM Program at 730 AMPLACE Ramada Hotel amp Conference CenterPROGRAM World Fair 2023SPEAKERS Mark Ritchie Minnesota Secretary of State
wwwRochesterAreaBuilderscom20 | September 2014
2014 VALUATION 2013 VALUATION
New Residential Single Family Dwelling 30 7389265 39 9441463
Townhome Dwelling 8 1224172 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 45 283519 33 160271
Room Addition 3 85012 4 177306
Porch Additions 1 8000 2 39494
Other Additions 4 38500 2 23940
Basement Finish 18 240045 24 323650
Alterations 41 234327 45 281947
Multi-Family Addition 0 0 4 31620
Multi-Family Alterations 14 151160 6 4615400 New Commercial Assembly (Church) 0 0 0 0
Assembly (General) 0 0 1 2720000
Assembly (RestaurantBar) 0 0 0 0
Business 0 0 0 0
Education 0 0 0 0
FactoryIndustrial 0 0 0 0
Institution 0 0 0 0
Mercantile 0 0 1 580000
Miscelaneous 0 0 0 0
Utility (General) 0 0 1 90000
Residential (CareAssisted Living) 0 0 0 0
Storage (General) 0 0 0 0
Storage (Warehouse) 0 0 0 0 Existing CommercialAddition 3 4313000 2 1214050
Alterations 25 4451261 40 6158997
Structural Shell 0 0 0 0
ldquoWhite Boxrdquo 0 0 0 0
Interior Demolition Only 2 2017000 3 54800
Other Phased Permits 1 6700 0 0
Other ConstructionBusiness Signs 4 10630 12 87202
Advertising Sign 0 0 0 0
Footings amp Foundations 1 76000 1 1100000
Demolition 0 1
Rochester Building Permits July 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
June 81 59 43 36 36 12 26 32 33 41
July 58 36 60 23 21 23 8 39 39 38
TOTAL 397 329 275 178 139 128 102 180 201 192
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 702 506 417 302 274 200 191 299 326 192
Single Family Homes
Year To Date Statistics 2014 2013 NO VALUATION NO VALUATION
Building Permits Issued to Date 1377 199056393 1280 149430856
Single Family Dwelling 186 45041027 201 47362534
Multi-Family Buildings Total Units 39 1 3702052 0 0
Trade Permits Issued to Date 4558 46616612 4145 40187782
Electrical 1573 20801155 1355 18804490
Electrical (Temp Service) 159 46875 188 39500
Mechanical 1187 12309661 1078 10781042
Gas Piping 317 546576 286 263280
Fireplace 237 629268 215 506084
Hydronic System 94 4005425 69 3097653
Plumbing 991 8277652 954 6695793
Total Permits YTD 5935 245673005 5425 189618638
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
WwwRochesterAreaBuilderscomSeptember 2014 | 21
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
JUNE 2014
New Residential NUMBER VALUATION
Single Family 9 1991399
Commercial
Addition 1 89470
Existing Residential
Deck Addition 7 41847
Basement Finish 1 12000
Garage 1 2267
Accessory Building 2 11500
ByronBuilding Permits
JULY 2014
Existing Residential NUMBER VALUATION
Sprinkler System 1 5000
Residing 1 5000
Reroof 5 25000
Deck 2 6000
Mechanical 1 1000
Garage 1 20000
Pine IslandBuilding Permits
wwwRochesterAreaBuilderscom22 | September 2014
In early 2000 the SampP 500 hit 1553 and the tech-heavy NASDAQ surpassed 5000 Two years later the SampP was at 768 and the NASDAQ was at 800 In the process $6 trillion in household wealth was wiped out We now call that period the dot-com bubble About half a decade later we experienced the housing market bubble Interestingly the value of residential real estate destroyed during that crisis was also about $6 trillion Yet the dot-com bubble resulted in a mild recession while the housing bust lead to the Great Recession What was different It turns a major culprit was which households suffered the destruction of wealth
To set the table ponder this During the housing bust retail spending fell 8 from 2007 to 2009 one the largest drops ever By contrast retail spending increased by 5 between 2000 and 2002 Clearly the losses sustained during the dot-com bust had minimal impacts on household spending decisions and thus on the overall economy Here is why
The decline in home prices that began in 2007 was highly concentrated among households with very limited financial resources As a result these now much-poorer households dramatically pulled back on spending and in the process unwittingly helped usher in the Great Recession Remember retail spending is about a quarter of GDP so a decline of 8 over two years reduces GDP by 2 -- a huge amount It is as if these poorer households were the transmission mechanism through which the Great Recession got its energy
Exacerbating and reinforcing this downward spiral was the role of debt or leverage Remember by 2004 or 2005 a large percentage of first-time home buyers had low FICO scores sketchy employment histories
and limited assets To compensate these Alt-A and subprime buyers borrowed heavily with their now highly levered house being their major financial asset For example among the poorest quintile of the population 80 of their net worth is in their house Even among the middle quintile home equity is still 60 of their net worth By borrowing so much just a small decline in house prices could put these buyers upside down and wipe them out Which is exactly what happened and is what turned a recession into the Great Recession Between 2007 and 2010 the bottom 20 of the population saw their net worth fall from about $30000 to zero
By contrast the financial losses sustained during the dot-com bubble were essentially walled off and had relatively little effect on the overall economy This is because stock ownership is concentrated among the wealthy As the wealthy have less debt and more assets they could essentially shrug off the much larger financial losses they sustained yet not have them alter their day-to-day spending decisions Among the wealthiest 20 of the population home equity represents just 25 of their net worth Moreover depression-era federal laws make it hard to borrow more than 50 of the cost of stock purchases thereby limiting the potentially negative role of leverage
In short the home buyers who bought in 2004 and 2005 had limited wealth and had more of it at risk than earlier home buyers When the music stopped they were highly levered and wholly unable to protect themselves That quickly resulted in (among other things) reduced spending which shrank GDP and quickly cascaded into the Great Recession
+++++++++++++++++
All Bubbles Are Not ++++++++++Created Equal + + + + + + + + + + + + + + + + +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
WwwRochesterAreaBuilderscomSeptember 2014 | 23
NONE
MEMBERSHIPS PENDINGNONE
The firms listed below have applied for membership in Rochester Area Builders Inc
MEMBERSHIP TOTAL 451RETENTION RATE 929
As of 63014
WE WELCOME THE FOLLOWING NEW MEMBERS IN AUGUST
Membership InformationMembership Renewals as of 73114
Two to Four Years
Kraus-Anderson Construction Company 2012Electrical Solutions amp Service 2011Energy Panel Structures 2011Lowersquos Home Improvement 2011Minnwest Bank 2011RCTC Carpentry Program 2011Reynolds Design and Construction 2010
Five to Nine Years
Great River Overhead Door 2007Meadow Lakes Builders 2007Rochester International Event Center 2007The Urban Studio LLC 2007Hunt Electric Corporation 2006Otis Custom Homes LLC 2006Larry Newman Drywall 2005Pahl amp Kaye Inc 2005Synergy Products 2005Tradesmen International Inc 2005
Ten to 19 Years
Greg Wellik Construction 2004Morris Concrete Inc 2004AampA Electric amp Underground Inc 2003Advanced Disposal 2002Knutson Construction Services 2002Tagrsquos Drywall Inc 2001Ronningen Roofing Inc 2000Ferguson Enterprises 1998
20 to 24 Years
Bright Ideas 1993Hirshfieldrsquos Decorating Center 1993Brock White Company 1991Dan Severson Builders Inc 1991
25 Years amp More
Gerhards 1988Express Employment Professionals 1985Townsquare Media Rochester 1983Smith Schafer amp Associates Ltd 1982Hayfield Window amp Door Company 1981Quality Overhead Door Company Inc 1981Energy Products amp Design Inc 1980Tom Brogan Heating amp Air Conditioning 1980Alvin E Benike Inc 1979Pella Windows amp Doors 1978Northern Lights amp Furnishings 1976Wells Fargo Home Mortgage 1964Alexander amp Sons Builders 1962
NEW APPLICANTS
CLIFTONLARSONALLEN LLP7389 Airport View Drive SW Suite 100
Rochester MN 55902Phone 507-280-2300Contact Paul Alberts
Associate MemberAccountingConsulting
Sponsored by Joel Alberts AampA Electric amp Underground Inc
DISTINGUISHED HOMES BY MITCH HAGEN LLC3015 18th Avenue SWRochester MN 55902Phone 507- 951-1962Contact Mitch Hagen
Builder MemberResidential Builder amp Remodeler
Sponsored by Brandon Vagt XRG Concepts LLC
LOW VOLTAGE CONTRACTORS
4200 West 76th StreetMinneapolis MN 55435
Phone 952-835-4600Contact Cathy Trast
Associate MemberFire amp Life Safety Integrated Systems Service Provider
Sponsored by John Eckerman The Boldt Company
PACE INTERNATIONAL 3582 Technology Drive NW
Rochester MN 55901Phone 507-424-4900Contact Jim WestraAssociate Member
Commercial Satellite amp Cable Television ProductsSponsored by Jay Burke Heartwood Homes of Rochester Inc
wwwRochesterAreaBuilderscom24 | September 2014
Put your membershipto work nowMoney-saving discounts that benefit yourbusiness your employees and your family
wwwnahborgMA
National Association of Home Builders
R
wwwRochesterAreaBuilderscom18 | September 2014
construction fashion expose
c o n s t r u c t i o n f a s h i o n e x p o s e
WwwRochesterAreaBuilderscomSeptember 2014 | 19
Members2014 Commercial Builders Council116 Members as of 63014AB Systems IncAccord Electric IncAdvanced DisposalAlpha Video amp AudioAlvin E Benike IncBEVCOMMThe Blue Book
of Building amp Construction
The Boldt CompanyBraun Intertec
CorporationBriese Iron Works IncBrock White CompanyCO Brown AgencyCambriaCarpet OneCharter
CommunicationsMedia
Chosen Valley Testing Inc
Clayton Thomas Blinds of Rochester
Construction Partnership
CRW architecture + design group inc
Custom AlarmCustom Communications Inc
D2E LLCDonlar Construction
CompanyDoyle Conner CompanyDunham Associates
IncDunlap amp SeegerJE Dunn ConstructionEastwood Bankeci llcElcor Construction IncEnergy Products amp
Design IncEnventisExpert Insulation IncFat Willyrsquos Bar amp GrillFerguson EnterprisesGerhardsGoodin CompanyHaley Comfort Systems
(Authorized FireSide Dealer)
WL Hall CompanyHDR ArchitectureHeartman InsuranceHGA Architects and
EngineersHillerrsquos Flooring AmericaHiMEC at HomeHome Federal Savings
BankHome Improvement
Professionals IncHunt Electric
CorporationInstitute for
Environmental Assessment
PA Johnson Construction LLC
KampM Glass CompanyKane amp Johnson
Architects IncKey Builders IncKnutson Construction
ServicesKomitt Concrete IncKraus-Anderson
Construction CompanyKreofsky Building
SuppliesKruse LumberKuntz Electric Inc
Kwik Trip IncLeitzen Concrete
Products IncMarvin Windows amp
DoorsMavo Systems IncMcGhie amp Betts - a
Division of WSB amp Associates Inc
McGough ConstructionMEC Construction IncMEP AssociatesMerchants BankMerit Contracting IncMidwest Walls LLCMinnesota Energy
Resources CorporationMinnwest BankNickelson Painting IncNorth Star Stone amp
MasonryOlmsted National BankOn Site CompaniesPalmer Soderberg IncPella Windows amp DoorsPeoplersquos Energy
CooperativePompeii Painting IncPrehn Building Sales
IncPremier Bank RochesterProBuild Company LLCReliable Contractors
IncRochester Area
Appraisals LLCRochester Area Econ
Development IncRochester Public
UtilitiesRochester Ready Mix
Concrete CoRochester Sign Service
IncRochester Title amp
Escrow Company IncRSP ArchitectsRyan Electric IncSchoeppner IncSchwab LLCSchwickertrsquos Tecta
America LLCSEH YaggyStantecSterling State BankStructural Design
Group IncSuperior MechanicalTamarack Materials of
Rochester IncThink Mutual BankTonna Mechanical IncTSP Architects amp
EngineersUnited RentalsThe Urban Studio LLCValor Mechanical IncVeit CompaniesVertical Limit
ConstructionViking Automatic
Sprinkler CompanyViking Electric SupplyWeis Builders IncWells Fargo Bank
Minnesota NAWendland UtzWest BankWHKS amp CompanyWHV IncWidseth Smith Nolting
BUILDERS COUNCILCOMMERCIAL
a d i v i s i o n o f R o c h e s t e r A r e a B u i l d e r s I n c
EXECUTIVE COMMITTEEChairperson Chris Terry Knutson Construction ServicesVice Chairperson Nick Leimer Kraus-Anderson Construction CompanyPast Chairperson Sue Hanson Rochester Title amp Escrow Company IncMembers-at-LargeJohn Hill Schwab LLCShaun Knode AB Systems IncJohn Kuntz Kuntz Electric IncLevi Kaiser AE Benike IncMatt Mohs WHKS amp CompanyMike Nordstrom Superior Mechanical
August Meeting Photos
New Member
Clayton Thomas Blinds of RochesterDarlene Drew
2400 Country Club Rd SWRochester MN 55902
507-258-4457
August MEETINGDATE Wednesday August 6th 2014TIME Registration amp Networking at 700 AM Program at 730 AMPLACE Ramada Hotel amp Conference CenterPROGRAM World Fair 2023SPEAKERS Mark Ritchie Minnesota Secretary of State
wwwRochesterAreaBuilderscom20 | September 2014
2014 VALUATION 2013 VALUATION
New Residential Single Family Dwelling 30 7389265 39 9441463
Townhome Dwelling 8 1224172 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 45 283519 33 160271
Room Addition 3 85012 4 177306
Porch Additions 1 8000 2 39494
Other Additions 4 38500 2 23940
Basement Finish 18 240045 24 323650
Alterations 41 234327 45 281947
Multi-Family Addition 0 0 4 31620
Multi-Family Alterations 14 151160 6 4615400 New Commercial Assembly (Church) 0 0 0 0
Assembly (General) 0 0 1 2720000
Assembly (RestaurantBar) 0 0 0 0
Business 0 0 0 0
Education 0 0 0 0
FactoryIndustrial 0 0 0 0
Institution 0 0 0 0
Mercantile 0 0 1 580000
Miscelaneous 0 0 0 0
Utility (General) 0 0 1 90000
Residential (CareAssisted Living) 0 0 0 0
Storage (General) 0 0 0 0
Storage (Warehouse) 0 0 0 0 Existing CommercialAddition 3 4313000 2 1214050
Alterations 25 4451261 40 6158997
Structural Shell 0 0 0 0
ldquoWhite Boxrdquo 0 0 0 0
Interior Demolition Only 2 2017000 3 54800
Other Phased Permits 1 6700 0 0
Other ConstructionBusiness Signs 4 10630 12 87202
Advertising Sign 0 0 0 0
Footings amp Foundations 1 76000 1 1100000
Demolition 0 1
Rochester Building Permits July 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
June 81 59 43 36 36 12 26 32 33 41
July 58 36 60 23 21 23 8 39 39 38
TOTAL 397 329 275 178 139 128 102 180 201 192
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 702 506 417 302 274 200 191 299 326 192
Single Family Homes
Year To Date Statistics 2014 2013 NO VALUATION NO VALUATION
Building Permits Issued to Date 1377 199056393 1280 149430856
Single Family Dwelling 186 45041027 201 47362534
Multi-Family Buildings Total Units 39 1 3702052 0 0
Trade Permits Issued to Date 4558 46616612 4145 40187782
Electrical 1573 20801155 1355 18804490
Electrical (Temp Service) 159 46875 188 39500
Mechanical 1187 12309661 1078 10781042
Gas Piping 317 546576 286 263280
Fireplace 237 629268 215 506084
Hydronic System 94 4005425 69 3097653
Plumbing 991 8277652 954 6695793
Total Permits YTD 5935 245673005 5425 189618638
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
WwwRochesterAreaBuilderscomSeptember 2014 | 21
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
JUNE 2014
New Residential NUMBER VALUATION
Single Family 9 1991399
Commercial
Addition 1 89470
Existing Residential
Deck Addition 7 41847
Basement Finish 1 12000
Garage 1 2267
Accessory Building 2 11500
ByronBuilding Permits
JULY 2014
Existing Residential NUMBER VALUATION
Sprinkler System 1 5000
Residing 1 5000
Reroof 5 25000
Deck 2 6000
Mechanical 1 1000
Garage 1 20000
Pine IslandBuilding Permits
wwwRochesterAreaBuilderscom22 | September 2014
In early 2000 the SampP 500 hit 1553 and the tech-heavy NASDAQ surpassed 5000 Two years later the SampP was at 768 and the NASDAQ was at 800 In the process $6 trillion in household wealth was wiped out We now call that period the dot-com bubble About half a decade later we experienced the housing market bubble Interestingly the value of residential real estate destroyed during that crisis was also about $6 trillion Yet the dot-com bubble resulted in a mild recession while the housing bust lead to the Great Recession What was different It turns a major culprit was which households suffered the destruction of wealth
To set the table ponder this During the housing bust retail spending fell 8 from 2007 to 2009 one the largest drops ever By contrast retail spending increased by 5 between 2000 and 2002 Clearly the losses sustained during the dot-com bust had minimal impacts on household spending decisions and thus on the overall economy Here is why
The decline in home prices that began in 2007 was highly concentrated among households with very limited financial resources As a result these now much-poorer households dramatically pulled back on spending and in the process unwittingly helped usher in the Great Recession Remember retail spending is about a quarter of GDP so a decline of 8 over two years reduces GDP by 2 -- a huge amount It is as if these poorer households were the transmission mechanism through which the Great Recession got its energy
Exacerbating and reinforcing this downward spiral was the role of debt or leverage Remember by 2004 or 2005 a large percentage of first-time home buyers had low FICO scores sketchy employment histories
and limited assets To compensate these Alt-A and subprime buyers borrowed heavily with their now highly levered house being their major financial asset For example among the poorest quintile of the population 80 of their net worth is in their house Even among the middle quintile home equity is still 60 of their net worth By borrowing so much just a small decline in house prices could put these buyers upside down and wipe them out Which is exactly what happened and is what turned a recession into the Great Recession Between 2007 and 2010 the bottom 20 of the population saw their net worth fall from about $30000 to zero
By contrast the financial losses sustained during the dot-com bubble were essentially walled off and had relatively little effect on the overall economy This is because stock ownership is concentrated among the wealthy As the wealthy have less debt and more assets they could essentially shrug off the much larger financial losses they sustained yet not have them alter their day-to-day spending decisions Among the wealthiest 20 of the population home equity represents just 25 of their net worth Moreover depression-era federal laws make it hard to borrow more than 50 of the cost of stock purchases thereby limiting the potentially negative role of leverage
In short the home buyers who bought in 2004 and 2005 had limited wealth and had more of it at risk than earlier home buyers When the music stopped they were highly levered and wholly unable to protect themselves That quickly resulted in (among other things) reduced spending which shrank GDP and quickly cascaded into the Great Recession
+++++++++++++++++
All Bubbles Are Not ++++++++++Created Equal + + + + + + + + + + + + + + + + +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
WwwRochesterAreaBuilderscomSeptember 2014 | 23
NONE
MEMBERSHIPS PENDINGNONE
The firms listed below have applied for membership in Rochester Area Builders Inc
MEMBERSHIP TOTAL 451RETENTION RATE 929
As of 63014
WE WELCOME THE FOLLOWING NEW MEMBERS IN AUGUST
Membership InformationMembership Renewals as of 73114
Two to Four Years
Kraus-Anderson Construction Company 2012Electrical Solutions amp Service 2011Energy Panel Structures 2011Lowersquos Home Improvement 2011Minnwest Bank 2011RCTC Carpentry Program 2011Reynolds Design and Construction 2010
Five to Nine Years
Great River Overhead Door 2007Meadow Lakes Builders 2007Rochester International Event Center 2007The Urban Studio LLC 2007Hunt Electric Corporation 2006Otis Custom Homes LLC 2006Larry Newman Drywall 2005Pahl amp Kaye Inc 2005Synergy Products 2005Tradesmen International Inc 2005
Ten to 19 Years
Greg Wellik Construction 2004Morris Concrete Inc 2004AampA Electric amp Underground Inc 2003Advanced Disposal 2002Knutson Construction Services 2002Tagrsquos Drywall Inc 2001Ronningen Roofing Inc 2000Ferguson Enterprises 1998
20 to 24 Years
Bright Ideas 1993Hirshfieldrsquos Decorating Center 1993Brock White Company 1991Dan Severson Builders Inc 1991
25 Years amp More
Gerhards 1988Express Employment Professionals 1985Townsquare Media Rochester 1983Smith Schafer amp Associates Ltd 1982Hayfield Window amp Door Company 1981Quality Overhead Door Company Inc 1981Energy Products amp Design Inc 1980Tom Brogan Heating amp Air Conditioning 1980Alvin E Benike Inc 1979Pella Windows amp Doors 1978Northern Lights amp Furnishings 1976Wells Fargo Home Mortgage 1964Alexander amp Sons Builders 1962
NEW APPLICANTS
CLIFTONLARSONALLEN LLP7389 Airport View Drive SW Suite 100
Rochester MN 55902Phone 507-280-2300Contact Paul Alberts
Associate MemberAccountingConsulting
Sponsored by Joel Alberts AampA Electric amp Underground Inc
DISTINGUISHED HOMES BY MITCH HAGEN LLC3015 18th Avenue SWRochester MN 55902Phone 507- 951-1962Contact Mitch Hagen
Builder MemberResidential Builder amp Remodeler
Sponsored by Brandon Vagt XRG Concepts LLC
LOW VOLTAGE CONTRACTORS
4200 West 76th StreetMinneapolis MN 55435
Phone 952-835-4600Contact Cathy Trast
Associate MemberFire amp Life Safety Integrated Systems Service Provider
Sponsored by John Eckerman The Boldt Company
PACE INTERNATIONAL 3582 Technology Drive NW
Rochester MN 55901Phone 507-424-4900Contact Jim WestraAssociate Member
Commercial Satellite amp Cable Television ProductsSponsored by Jay Burke Heartwood Homes of Rochester Inc
wwwRochesterAreaBuilderscom24 | September 2014
Put your membershipto work nowMoney-saving discounts that benefit yourbusiness your employees and your family
wwwnahborgMA
National Association of Home Builders
R
WwwRochesterAreaBuilderscomSeptember 2014 | 19
Members2014 Commercial Builders Council116 Members as of 63014AB Systems IncAccord Electric IncAdvanced DisposalAlpha Video amp AudioAlvin E Benike IncBEVCOMMThe Blue Book
of Building amp Construction
The Boldt CompanyBraun Intertec
CorporationBriese Iron Works IncBrock White CompanyCO Brown AgencyCambriaCarpet OneCharter
CommunicationsMedia
Chosen Valley Testing Inc
Clayton Thomas Blinds of Rochester
Construction Partnership
CRW architecture + design group inc
Custom AlarmCustom Communications Inc
D2E LLCDonlar Construction
CompanyDoyle Conner CompanyDunham Associates
IncDunlap amp SeegerJE Dunn ConstructionEastwood Bankeci llcElcor Construction IncEnergy Products amp
Design IncEnventisExpert Insulation IncFat Willyrsquos Bar amp GrillFerguson EnterprisesGerhardsGoodin CompanyHaley Comfort Systems
(Authorized FireSide Dealer)
WL Hall CompanyHDR ArchitectureHeartman InsuranceHGA Architects and
EngineersHillerrsquos Flooring AmericaHiMEC at HomeHome Federal Savings
BankHome Improvement
Professionals IncHunt Electric
CorporationInstitute for
Environmental Assessment
PA Johnson Construction LLC
KampM Glass CompanyKane amp Johnson
Architects IncKey Builders IncKnutson Construction
ServicesKomitt Concrete IncKraus-Anderson
Construction CompanyKreofsky Building
SuppliesKruse LumberKuntz Electric Inc
Kwik Trip IncLeitzen Concrete
Products IncMarvin Windows amp
DoorsMavo Systems IncMcGhie amp Betts - a
Division of WSB amp Associates Inc
McGough ConstructionMEC Construction IncMEP AssociatesMerchants BankMerit Contracting IncMidwest Walls LLCMinnesota Energy
Resources CorporationMinnwest BankNickelson Painting IncNorth Star Stone amp
MasonryOlmsted National BankOn Site CompaniesPalmer Soderberg IncPella Windows amp DoorsPeoplersquos Energy
CooperativePompeii Painting IncPrehn Building Sales
IncPremier Bank RochesterProBuild Company LLCReliable Contractors
IncRochester Area
Appraisals LLCRochester Area Econ
Development IncRochester Public
UtilitiesRochester Ready Mix
Concrete CoRochester Sign Service
IncRochester Title amp
Escrow Company IncRSP ArchitectsRyan Electric IncSchoeppner IncSchwab LLCSchwickertrsquos Tecta
America LLCSEH YaggyStantecSterling State BankStructural Design
Group IncSuperior MechanicalTamarack Materials of
Rochester IncThink Mutual BankTonna Mechanical IncTSP Architects amp
EngineersUnited RentalsThe Urban Studio LLCValor Mechanical IncVeit CompaniesVertical Limit
ConstructionViking Automatic
Sprinkler CompanyViking Electric SupplyWeis Builders IncWells Fargo Bank
Minnesota NAWendland UtzWest BankWHKS amp CompanyWHV IncWidseth Smith Nolting
BUILDERS COUNCILCOMMERCIAL
a d i v i s i o n o f R o c h e s t e r A r e a B u i l d e r s I n c
EXECUTIVE COMMITTEEChairperson Chris Terry Knutson Construction ServicesVice Chairperson Nick Leimer Kraus-Anderson Construction CompanyPast Chairperson Sue Hanson Rochester Title amp Escrow Company IncMembers-at-LargeJohn Hill Schwab LLCShaun Knode AB Systems IncJohn Kuntz Kuntz Electric IncLevi Kaiser AE Benike IncMatt Mohs WHKS amp CompanyMike Nordstrom Superior Mechanical
August Meeting Photos
New Member
Clayton Thomas Blinds of RochesterDarlene Drew
2400 Country Club Rd SWRochester MN 55902
507-258-4457
August MEETINGDATE Wednesday August 6th 2014TIME Registration amp Networking at 700 AM Program at 730 AMPLACE Ramada Hotel amp Conference CenterPROGRAM World Fair 2023SPEAKERS Mark Ritchie Minnesota Secretary of State
wwwRochesterAreaBuilderscom20 | September 2014
2014 VALUATION 2013 VALUATION
New Residential Single Family Dwelling 30 7389265 39 9441463
Townhome Dwelling 8 1224172 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 45 283519 33 160271
Room Addition 3 85012 4 177306
Porch Additions 1 8000 2 39494
Other Additions 4 38500 2 23940
Basement Finish 18 240045 24 323650
Alterations 41 234327 45 281947
Multi-Family Addition 0 0 4 31620
Multi-Family Alterations 14 151160 6 4615400 New Commercial Assembly (Church) 0 0 0 0
Assembly (General) 0 0 1 2720000
Assembly (RestaurantBar) 0 0 0 0
Business 0 0 0 0
Education 0 0 0 0
FactoryIndustrial 0 0 0 0
Institution 0 0 0 0
Mercantile 0 0 1 580000
Miscelaneous 0 0 0 0
Utility (General) 0 0 1 90000
Residential (CareAssisted Living) 0 0 0 0
Storage (General) 0 0 0 0
Storage (Warehouse) 0 0 0 0 Existing CommercialAddition 3 4313000 2 1214050
Alterations 25 4451261 40 6158997
Structural Shell 0 0 0 0
ldquoWhite Boxrdquo 0 0 0 0
Interior Demolition Only 2 2017000 3 54800
Other Phased Permits 1 6700 0 0
Other ConstructionBusiness Signs 4 10630 12 87202
Advertising Sign 0 0 0 0
Footings amp Foundations 1 76000 1 1100000
Demolition 0 1
Rochester Building Permits July 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
June 81 59 43 36 36 12 26 32 33 41
July 58 36 60 23 21 23 8 39 39 38
TOTAL 397 329 275 178 139 128 102 180 201 192
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 702 506 417 302 274 200 191 299 326 192
Single Family Homes
Year To Date Statistics 2014 2013 NO VALUATION NO VALUATION
Building Permits Issued to Date 1377 199056393 1280 149430856
Single Family Dwelling 186 45041027 201 47362534
Multi-Family Buildings Total Units 39 1 3702052 0 0
Trade Permits Issued to Date 4558 46616612 4145 40187782
Electrical 1573 20801155 1355 18804490
Electrical (Temp Service) 159 46875 188 39500
Mechanical 1187 12309661 1078 10781042
Gas Piping 317 546576 286 263280
Fireplace 237 629268 215 506084
Hydronic System 94 4005425 69 3097653
Plumbing 991 8277652 954 6695793
Total Permits YTD 5935 245673005 5425 189618638
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
WwwRochesterAreaBuilderscomSeptember 2014 | 21
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
JUNE 2014
New Residential NUMBER VALUATION
Single Family 9 1991399
Commercial
Addition 1 89470
Existing Residential
Deck Addition 7 41847
Basement Finish 1 12000
Garage 1 2267
Accessory Building 2 11500
ByronBuilding Permits
JULY 2014
Existing Residential NUMBER VALUATION
Sprinkler System 1 5000
Residing 1 5000
Reroof 5 25000
Deck 2 6000
Mechanical 1 1000
Garage 1 20000
Pine IslandBuilding Permits
wwwRochesterAreaBuilderscom22 | September 2014
In early 2000 the SampP 500 hit 1553 and the tech-heavy NASDAQ surpassed 5000 Two years later the SampP was at 768 and the NASDAQ was at 800 In the process $6 trillion in household wealth was wiped out We now call that period the dot-com bubble About half a decade later we experienced the housing market bubble Interestingly the value of residential real estate destroyed during that crisis was also about $6 trillion Yet the dot-com bubble resulted in a mild recession while the housing bust lead to the Great Recession What was different It turns a major culprit was which households suffered the destruction of wealth
To set the table ponder this During the housing bust retail spending fell 8 from 2007 to 2009 one the largest drops ever By contrast retail spending increased by 5 between 2000 and 2002 Clearly the losses sustained during the dot-com bust had minimal impacts on household spending decisions and thus on the overall economy Here is why
The decline in home prices that began in 2007 was highly concentrated among households with very limited financial resources As a result these now much-poorer households dramatically pulled back on spending and in the process unwittingly helped usher in the Great Recession Remember retail spending is about a quarter of GDP so a decline of 8 over two years reduces GDP by 2 -- a huge amount It is as if these poorer households were the transmission mechanism through which the Great Recession got its energy
Exacerbating and reinforcing this downward spiral was the role of debt or leverage Remember by 2004 or 2005 a large percentage of first-time home buyers had low FICO scores sketchy employment histories
and limited assets To compensate these Alt-A and subprime buyers borrowed heavily with their now highly levered house being their major financial asset For example among the poorest quintile of the population 80 of their net worth is in their house Even among the middle quintile home equity is still 60 of their net worth By borrowing so much just a small decline in house prices could put these buyers upside down and wipe them out Which is exactly what happened and is what turned a recession into the Great Recession Between 2007 and 2010 the bottom 20 of the population saw their net worth fall from about $30000 to zero
By contrast the financial losses sustained during the dot-com bubble were essentially walled off and had relatively little effect on the overall economy This is because stock ownership is concentrated among the wealthy As the wealthy have less debt and more assets they could essentially shrug off the much larger financial losses they sustained yet not have them alter their day-to-day spending decisions Among the wealthiest 20 of the population home equity represents just 25 of their net worth Moreover depression-era federal laws make it hard to borrow more than 50 of the cost of stock purchases thereby limiting the potentially negative role of leverage
In short the home buyers who bought in 2004 and 2005 had limited wealth and had more of it at risk than earlier home buyers When the music stopped they were highly levered and wholly unable to protect themselves That quickly resulted in (among other things) reduced spending which shrank GDP and quickly cascaded into the Great Recession
+++++++++++++++++
All Bubbles Are Not ++++++++++Created Equal + + + + + + + + + + + + + + + + +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
WwwRochesterAreaBuilderscomSeptember 2014 | 23
NONE
MEMBERSHIPS PENDINGNONE
The firms listed below have applied for membership in Rochester Area Builders Inc
MEMBERSHIP TOTAL 451RETENTION RATE 929
As of 63014
WE WELCOME THE FOLLOWING NEW MEMBERS IN AUGUST
Membership InformationMembership Renewals as of 73114
Two to Four Years
Kraus-Anderson Construction Company 2012Electrical Solutions amp Service 2011Energy Panel Structures 2011Lowersquos Home Improvement 2011Minnwest Bank 2011RCTC Carpentry Program 2011Reynolds Design and Construction 2010
Five to Nine Years
Great River Overhead Door 2007Meadow Lakes Builders 2007Rochester International Event Center 2007The Urban Studio LLC 2007Hunt Electric Corporation 2006Otis Custom Homes LLC 2006Larry Newman Drywall 2005Pahl amp Kaye Inc 2005Synergy Products 2005Tradesmen International Inc 2005
Ten to 19 Years
Greg Wellik Construction 2004Morris Concrete Inc 2004AampA Electric amp Underground Inc 2003Advanced Disposal 2002Knutson Construction Services 2002Tagrsquos Drywall Inc 2001Ronningen Roofing Inc 2000Ferguson Enterprises 1998
20 to 24 Years
Bright Ideas 1993Hirshfieldrsquos Decorating Center 1993Brock White Company 1991Dan Severson Builders Inc 1991
25 Years amp More
Gerhards 1988Express Employment Professionals 1985Townsquare Media Rochester 1983Smith Schafer amp Associates Ltd 1982Hayfield Window amp Door Company 1981Quality Overhead Door Company Inc 1981Energy Products amp Design Inc 1980Tom Brogan Heating amp Air Conditioning 1980Alvin E Benike Inc 1979Pella Windows amp Doors 1978Northern Lights amp Furnishings 1976Wells Fargo Home Mortgage 1964Alexander amp Sons Builders 1962
NEW APPLICANTS
CLIFTONLARSONALLEN LLP7389 Airport View Drive SW Suite 100
Rochester MN 55902Phone 507-280-2300Contact Paul Alberts
Associate MemberAccountingConsulting
Sponsored by Joel Alberts AampA Electric amp Underground Inc
DISTINGUISHED HOMES BY MITCH HAGEN LLC3015 18th Avenue SWRochester MN 55902Phone 507- 951-1962Contact Mitch Hagen
Builder MemberResidential Builder amp Remodeler
Sponsored by Brandon Vagt XRG Concepts LLC
LOW VOLTAGE CONTRACTORS
4200 West 76th StreetMinneapolis MN 55435
Phone 952-835-4600Contact Cathy Trast
Associate MemberFire amp Life Safety Integrated Systems Service Provider
Sponsored by John Eckerman The Boldt Company
PACE INTERNATIONAL 3582 Technology Drive NW
Rochester MN 55901Phone 507-424-4900Contact Jim WestraAssociate Member
Commercial Satellite amp Cable Television ProductsSponsored by Jay Burke Heartwood Homes of Rochester Inc
wwwRochesterAreaBuilderscom24 | September 2014
Put your membershipto work nowMoney-saving discounts that benefit yourbusiness your employees and your family
wwwnahborgMA
National Association of Home Builders
R
wwwRochesterAreaBuilderscom20 | September 2014
2014 VALUATION 2013 VALUATION
New Residential Single Family Dwelling 30 7389265 39 9441463
Townhome Dwelling 8 1224172 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 45 283519 33 160271
Room Addition 3 85012 4 177306
Porch Additions 1 8000 2 39494
Other Additions 4 38500 2 23940
Basement Finish 18 240045 24 323650
Alterations 41 234327 45 281947
Multi-Family Addition 0 0 4 31620
Multi-Family Alterations 14 151160 6 4615400 New Commercial Assembly (Church) 0 0 0 0
Assembly (General) 0 0 1 2720000
Assembly (RestaurantBar) 0 0 0 0
Business 0 0 0 0
Education 0 0 0 0
FactoryIndustrial 0 0 0 0
Institution 0 0 0 0
Mercantile 0 0 1 580000
Miscelaneous 0 0 0 0
Utility (General) 0 0 1 90000
Residential (CareAssisted Living) 0 0 0 0
Storage (General) 0 0 0 0
Storage (Warehouse) 0 0 0 0 Existing CommercialAddition 3 4313000 2 1214050
Alterations 25 4451261 40 6158997
Structural Shell 0 0 0 0
ldquoWhite Boxrdquo 0 0 0 0
Interior Demolition Only 2 2017000 3 54800
Other Phased Permits 1 6700 0 0
Other ConstructionBusiness Signs 4 10630 12 87202
Advertising Sign 0 0 0 0
Footings amp Foundations 1 76000 1 1100000
Demolition 0 1
Rochester Building Permits July 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
June 81 59 43 36 36 12 26 32 33 41
July 58 36 60 23 21 23 8 39 39 38
TOTAL 397 329 275 178 139 128 102 180 201 192
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 702 506 417 302 274 200 191 299 326 192
Single Family Homes
Year To Date Statistics 2014 2013 NO VALUATION NO VALUATION
Building Permits Issued to Date 1377 199056393 1280 149430856
Single Family Dwelling 186 45041027 201 47362534
Multi-Family Buildings Total Units 39 1 3702052 0 0
Trade Permits Issued to Date 4558 46616612 4145 40187782
Electrical 1573 20801155 1355 18804490
Electrical (Temp Service) 159 46875 188 39500
Mechanical 1187 12309661 1078 10781042
Gas Piping 317 546576 286 263280
Fireplace 237 629268 215 506084
Hydronic System 94 4005425 69 3097653
Plumbing 991 8277652 954 6695793
Total Permits YTD 5935 245673005 5425 189618638
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
WwwRochesterAreaBuilderscomSeptember 2014 | 21
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
JUNE 2014
New Residential NUMBER VALUATION
Single Family 9 1991399
Commercial
Addition 1 89470
Existing Residential
Deck Addition 7 41847
Basement Finish 1 12000
Garage 1 2267
Accessory Building 2 11500
ByronBuilding Permits
JULY 2014
Existing Residential NUMBER VALUATION
Sprinkler System 1 5000
Residing 1 5000
Reroof 5 25000
Deck 2 6000
Mechanical 1 1000
Garage 1 20000
Pine IslandBuilding Permits
wwwRochesterAreaBuilderscom22 | September 2014
In early 2000 the SampP 500 hit 1553 and the tech-heavy NASDAQ surpassed 5000 Two years later the SampP was at 768 and the NASDAQ was at 800 In the process $6 trillion in household wealth was wiped out We now call that period the dot-com bubble About half a decade later we experienced the housing market bubble Interestingly the value of residential real estate destroyed during that crisis was also about $6 trillion Yet the dot-com bubble resulted in a mild recession while the housing bust lead to the Great Recession What was different It turns a major culprit was which households suffered the destruction of wealth
To set the table ponder this During the housing bust retail spending fell 8 from 2007 to 2009 one the largest drops ever By contrast retail spending increased by 5 between 2000 and 2002 Clearly the losses sustained during the dot-com bust had minimal impacts on household spending decisions and thus on the overall economy Here is why
The decline in home prices that began in 2007 was highly concentrated among households with very limited financial resources As a result these now much-poorer households dramatically pulled back on spending and in the process unwittingly helped usher in the Great Recession Remember retail spending is about a quarter of GDP so a decline of 8 over two years reduces GDP by 2 -- a huge amount It is as if these poorer households were the transmission mechanism through which the Great Recession got its energy
Exacerbating and reinforcing this downward spiral was the role of debt or leverage Remember by 2004 or 2005 a large percentage of first-time home buyers had low FICO scores sketchy employment histories
and limited assets To compensate these Alt-A and subprime buyers borrowed heavily with their now highly levered house being their major financial asset For example among the poorest quintile of the population 80 of their net worth is in their house Even among the middle quintile home equity is still 60 of their net worth By borrowing so much just a small decline in house prices could put these buyers upside down and wipe them out Which is exactly what happened and is what turned a recession into the Great Recession Between 2007 and 2010 the bottom 20 of the population saw their net worth fall from about $30000 to zero
By contrast the financial losses sustained during the dot-com bubble were essentially walled off and had relatively little effect on the overall economy This is because stock ownership is concentrated among the wealthy As the wealthy have less debt and more assets they could essentially shrug off the much larger financial losses they sustained yet not have them alter their day-to-day spending decisions Among the wealthiest 20 of the population home equity represents just 25 of their net worth Moreover depression-era federal laws make it hard to borrow more than 50 of the cost of stock purchases thereby limiting the potentially negative role of leverage
In short the home buyers who bought in 2004 and 2005 had limited wealth and had more of it at risk than earlier home buyers When the music stopped they were highly levered and wholly unable to protect themselves That quickly resulted in (among other things) reduced spending which shrank GDP and quickly cascaded into the Great Recession
+++++++++++++++++
All Bubbles Are Not ++++++++++Created Equal + + + + + + + + + + + + + + + + +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
WwwRochesterAreaBuilderscomSeptember 2014 | 23
NONE
MEMBERSHIPS PENDINGNONE
The firms listed below have applied for membership in Rochester Area Builders Inc
MEMBERSHIP TOTAL 451RETENTION RATE 929
As of 63014
WE WELCOME THE FOLLOWING NEW MEMBERS IN AUGUST
Membership InformationMembership Renewals as of 73114
Two to Four Years
Kraus-Anderson Construction Company 2012Electrical Solutions amp Service 2011Energy Panel Structures 2011Lowersquos Home Improvement 2011Minnwest Bank 2011RCTC Carpentry Program 2011Reynolds Design and Construction 2010
Five to Nine Years
Great River Overhead Door 2007Meadow Lakes Builders 2007Rochester International Event Center 2007The Urban Studio LLC 2007Hunt Electric Corporation 2006Otis Custom Homes LLC 2006Larry Newman Drywall 2005Pahl amp Kaye Inc 2005Synergy Products 2005Tradesmen International Inc 2005
Ten to 19 Years
Greg Wellik Construction 2004Morris Concrete Inc 2004AampA Electric amp Underground Inc 2003Advanced Disposal 2002Knutson Construction Services 2002Tagrsquos Drywall Inc 2001Ronningen Roofing Inc 2000Ferguson Enterprises 1998
20 to 24 Years
Bright Ideas 1993Hirshfieldrsquos Decorating Center 1993Brock White Company 1991Dan Severson Builders Inc 1991
25 Years amp More
Gerhards 1988Express Employment Professionals 1985Townsquare Media Rochester 1983Smith Schafer amp Associates Ltd 1982Hayfield Window amp Door Company 1981Quality Overhead Door Company Inc 1981Energy Products amp Design Inc 1980Tom Brogan Heating amp Air Conditioning 1980Alvin E Benike Inc 1979Pella Windows amp Doors 1978Northern Lights amp Furnishings 1976Wells Fargo Home Mortgage 1964Alexander amp Sons Builders 1962
NEW APPLICANTS
CLIFTONLARSONALLEN LLP7389 Airport View Drive SW Suite 100
Rochester MN 55902Phone 507-280-2300Contact Paul Alberts
Associate MemberAccountingConsulting
Sponsored by Joel Alberts AampA Electric amp Underground Inc
DISTINGUISHED HOMES BY MITCH HAGEN LLC3015 18th Avenue SWRochester MN 55902Phone 507- 951-1962Contact Mitch Hagen
Builder MemberResidential Builder amp Remodeler
Sponsored by Brandon Vagt XRG Concepts LLC
LOW VOLTAGE CONTRACTORS
4200 West 76th StreetMinneapolis MN 55435
Phone 952-835-4600Contact Cathy Trast
Associate MemberFire amp Life Safety Integrated Systems Service Provider
Sponsored by John Eckerman The Boldt Company
PACE INTERNATIONAL 3582 Technology Drive NW
Rochester MN 55901Phone 507-424-4900Contact Jim WestraAssociate Member
Commercial Satellite amp Cable Television ProductsSponsored by Jay Burke Heartwood Homes of Rochester Inc
wwwRochesterAreaBuilderscom24 | September 2014
Put your membershipto work nowMoney-saving discounts that benefit yourbusiness your employees and your family
wwwnahborgMA
National Association of Home Builders
R
WwwRochesterAreaBuilderscomSeptember 2014 | 21
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
JUNE 2014
New Residential NUMBER VALUATION
Single Family 9 1991399
Commercial
Addition 1 89470
Existing Residential
Deck Addition 7 41847
Basement Finish 1 12000
Garage 1 2267
Accessory Building 2 11500
ByronBuilding Permits
JULY 2014
Existing Residential NUMBER VALUATION
Sprinkler System 1 5000
Residing 1 5000
Reroof 5 25000
Deck 2 6000
Mechanical 1 1000
Garage 1 20000
Pine IslandBuilding Permits
wwwRochesterAreaBuilderscom22 | September 2014
In early 2000 the SampP 500 hit 1553 and the tech-heavy NASDAQ surpassed 5000 Two years later the SampP was at 768 and the NASDAQ was at 800 In the process $6 trillion in household wealth was wiped out We now call that period the dot-com bubble About half a decade later we experienced the housing market bubble Interestingly the value of residential real estate destroyed during that crisis was also about $6 trillion Yet the dot-com bubble resulted in a mild recession while the housing bust lead to the Great Recession What was different It turns a major culprit was which households suffered the destruction of wealth
To set the table ponder this During the housing bust retail spending fell 8 from 2007 to 2009 one the largest drops ever By contrast retail spending increased by 5 between 2000 and 2002 Clearly the losses sustained during the dot-com bust had minimal impacts on household spending decisions and thus on the overall economy Here is why
The decline in home prices that began in 2007 was highly concentrated among households with very limited financial resources As a result these now much-poorer households dramatically pulled back on spending and in the process unwittingly helped usher in the Great Recession Remember retail spending is about a quarter of GDP so a decline of 8 over two years reduces GDP by 2 -- a huge amount It is as if these poorer households were the transmission mechanism through which the Great Recession got its energy
Exacerbating and reinforcing this downward spiral was the role of debt or leverage Remember by 2004 or 2005 a large percentage of first-time home buyers had low FICO scores sketchy employment histories
and limited assets To compensate these Alt-A and subprime buyers borrowed heavily with their now highly levered house being their major financial asset For example among the poorest quintile of the population 80 of their net worth is in their house Even among the middle quintile home equity is still 60 of their net worth By borrowing so much just a small decline in house prices could put these buyers upside down and wipe them out Which is exactly what happened and is what turned a recession into the Great Recession Between 2007 and 2010 the bottom 20 of the population saw their net worth fall from about $30000 to zero
By contrast the financial losses sustained during the dot-com bubble were essentially walled off and had relatively little effect on the overall economy This is because stock ownership is concentrated among the wealthy As the wealthy have less debt and more assets they could essentially shrug off the much larger financial losses they sustained yet not have them alter their day-to-day spending decisions Among the wealthiest 20 of the population home equity represents just 25 of their net worth Moreover depression-era federal laws make it hard to borrow more than 50 of the cost of stock purchases thereby limiting the potentially negative role of leverage
In short the home buyers who bought in 2004 and 2005 had limited wealth and had more of it at risk than earlier home buyers When the music stopped they were highly levered and wholly unable to protect themselves That quickly resulted in (among other things) reduced spending which shrank GDP and quickly cascaded into the Great Recession
+++++++++++++++++
All Bubbles Are Not ++++++++++Created Equal + + + + + + + + + + + + + + + + +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
WwwRochesterAreaBuilderscomSeptember 2014 | 23
NONE
MEMBERSHIPS PENDINGNONE
The firms listed below have applied for membership in Rochester Area Builders Inc
MEMBERSHIP TOTAL 451RETENTION RATE 929
As of 63014
WE WELCOME THE FOLLOWING NEW MEMBERS IN AUGUST
Membership InformationMembership Renewals as of 73114
Two to Four Years
Kraus-Anderson Construction Company 2012Electrical Solutions amp Service 2011Energy Panel Structures 2011Lowersquos Home Improvement 2011Minnwest Bank 2011RCTC Carpentry Program 2011Reynolds Design and Construction 2010
Five to Nine Years
Great River Overhead Door 2007Meadow Lakes Builders 2007Rochester International Event Center 2007The Urban Studio LLC 2007Hunt Electric Corporation 2006Otis Custom Homes LLC 2006Larry Newman Drywall 2005Pahl amp Kaye Inc 2005Synergy Products 2005Tradesmen International Inc 2005
Ten to 19 Years
Greg Wellik Construction 2004Morris Concrete Inc 2004AampA Electric amp Underground Inc 2003Advanced Disposal 2002Knutson Construction Services 2002Tagrsquos Drywall Inc 2001Ronningen Roofing Inc 2000Ferguson Enterprises 1998
20 to 24 Years
Bright Ideas 1993Hirshfieldrsquos Decorating Center 1993Brock White Company 1991Dan Severson Builders Inc 1991
25 Years amp More
Gerhards 1988Express Employment Professionals 1985Townsquare Media Rochester 1983Smith Schafer amp Associates Ltd 1982Hayfield Window amp Door Company 1981Quality Overhead Door Company Inc 1981Energy Products amp Design Inc 1980Tom Brogan Heating amp Air Conditioning 1980Alvin E Benike Inc 1979Pella Windows amp Doors 1978Northern Lights amp Furnishings 1976Wells Fargo Home Mortgage 1964Alexander amp Sons Builders 1962
NEW APPLICANTS
CLIFTONLARSONALLEN LLP7389 Airport View Drive SW Suite 100
Rochester MN 55902Phone 507-280-2300Contact Paul Alberts
Associate MemberAccountingConsulting
Sponsored by Joel Alberts AampA Electric amp Underground Inc
DISTINGUISHED HOMES BY MITCH HAGEN LLC3015 18th Avenue SWRochester MN 55902Phone 507- 951-1962Contact Mitch Hagen
Builder MemberResidential Builder amp Remodeler
Sponsored by Brandon Vagt XRG Concepts LLC
LOW VOLTAGE CONTRACTORS
4200 West 76th StreetMinneapolis MN 55435
Phone 952-835-4600Contact Cathy Trast
Associate MemberFire amp Life Safety Integrated Systems Service Provider
Sponsored by John Eckerman The Boldt Company
PACE INTERNATIONAL 3582 Technology Drive NW
Rochester MN 55901Phone 507-424-4900Contact Jim WestraAssociate Member
Commercial Satellite amp Cable Television ProductsSponsored by Jay Burke Heartwood Homes of Rochester Inc
wwwRochesterAreaBuilderscom24 | September 2014
Put your membershipto work nowMoney-saving discounts that benefit yourbusiness your employees and your family
wwwnahborgMA
National Association of Home Builders
R
wwwRochesterAreaBuilderscom22 | September 2014
In early 2000 the SampP 500 hit 1553 and the tech-heavy NASDAQ surpassed 5000 Two years later the SampP was at 768 and the NASDAQ was at 800 In the process $6 trillion in household wealth was wiped out We now call that period the dot-com bubble About half a decade later we experienced the housing market bubble Interestingly the value of residential real estate destroyed during that crisis was also about $6 trillion Yet the dot-com bubble resulted in a mild recession while the housing bust lead to the Great Recession What was different It turns a major culprit was which households suffered the destruction of wealth
To set the table ponder this During the housing bust retail spending fell 8 from 2007 to 2009 one the largest drops ever By contrast retail spending increased by 5 between 2000 and 2002 Clearly the losses sustained during the dot-com bust had minimal impacts on household spending decisions and thus on the overall economy Here is why
The decline in home prices that began in 2007 was highly concentrated among households with very limited financial resources As a result these now much-poorer households dramatically pulled back on spending and in the process unwittingly helped usher in the Great Recession Remember retail spending is about a quarter of GDP so a decline of 8 over two years reduces GDP by 2 -- a huge amount It is as if these poorer households were the transmission mechanism through which the Great Recession got its energy
Exacerbating and reinforcing this downward spiral was the role of debt or leverage Remember by 2004 or 2005 a large percentage of first-time home buyers had low FICO scores sketchy employment histories
and limited assets To compensate these Alt-A and subprime buyers borrowed heavily with their now highly levered house being their major financial asset For example among the poorest quintile of the population 80 of their net worth is in their house Even among the middle quintile home equity is still 60 of their net worth By borrowing so much just a small decline in house prices could put these buyers upside down and wipe them out Which is exactly what happened and is what turned a recession into the Great Recession Between 2007 and 2010 the bottom 20 of the population saw their net worth fall from about $30000 to zero
By contrast the financial losses sustained during the dot-com bubble were essentially walled off and had relatively little effect on the overall economy This is because stock ownership is concentrated among the wealthy As the wealthy have less debt and more assets they could essentially shrug off the much larger financial losses they sustained yet not have them alter their day-to-day spending decisions Among the wealthiest 20 of the population home equity represents just 25 of their net worth Moreover depression-era federal laws make it hard to borrow more than 50 of the cost of stock purchases thereby limiting the potentially negative role of leverage
In short the home buyers who bought in 2004 and 2005 had limited wealth and had more of it at risk than earlier home buyers When the music stopped they were highly levered and wholly unable to protect themselves That quickly resulted in (among other things) reduced spending which shrank GDP and quickly cascaded into the Great Recession
+++++++++++++++++
All Bubbles Are Not ++++++++++Created Equal + + + + + + + + + + + + + + + + +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
WwwRochesterAreaBuilderscomSeptember 2014 | 23
NONE
MEMBERSHIPS PENDINGNONE
The firms listed below have applied for membership in Rochester Area Builders Inc
MEMBERSHIP TOTAL 451RETENTION RATE 929
As of 63014
WE WELCOME THE FOLLOWING NEW MEMBERS IN AUGUST
Membership InformationMembership Renewals as of 73114
Two to Four Years
Kraus-Anderson Construction Company 2012Electrical Solutions amp Service 2011Energy Panel Structures 2011Lowersquos Home Improvement 2011Minnwest Bank 2011RCTC Carpentry Program 2011Reynolds Design and Construction 2010
Five to Nine Years
Great River Overhead Door 2007Meadow Lakes Builders 2007Rochester International Event Center 2007The Urban Studio LLC 2007Hunt Electric Corporation 2006Otis Custom Homes LLC 2006Larry Newman Drywall 2005Pahl amp Kaye Inc 2005Synergy Products 2005Tradesmen International Inc 2005
Ten to 19 Years
Greg Wellik Construction 2004Morris Concrete Inc 2004AampA Electric amp Underground Inc 2003Advanced Disposal 2002Knutson Construction Services 2002Tagrsquos Drywall Inc 2001Ronningen Roofing Inc 2000Ferguson Enterprises 1998
20 to 24 Years
Bright Ideas 1993Hirshfieldrsquos Decorating Center 1993Brock White Company 1991Dan Severson Builders Inc 1991
25 Years amp More
Gerhards 1988Express Employment Professionals 1985Townsquare Media Rochester 1983Smith Schafer amp Associates Ltd 1982Hayfield Window amp Door Company 1981Quality Overhead Door Company Inc 1981Energy Products amp Design Inc 1980Tom Brogan Heating amp Air Conditioning 1980Alvin E Benike Inc 1979Pella Windows amp Doors 1978Northern Lights amp Furnishings 1976Wells Fargo Home Mortgage 1964Alexander amp Sons Builders 1962
NEW APPLICANTS
CLIFTONLARSONALLEN LLP7389 Airport View Drive SW Suite 100
Rochester MN 55902Phone 507-280-2300Contact Paul Alberts
Associate MemberAccountingConsulting
Sponsored by Joel Alberts AampA Electric amp Underground Inc
DISTINGUISHED HOMES BY MITCH HAGEN LLC3015 18th Avenue SWRochester MN 55902Phone 507- 951-1962Contact Mitch Hagen
Builder MemberResidential Builder amp Remodeler
Sponsored by Brandon Vagt XRG Concepts LLC
LOW VOLTAGE CONTRACTORS
4200 West 76th StreetMinneapolis MN 55435
Phone 952-835-4600Contact Cathy Trast
Associate MemberFire amp Life Safety Integrated Systems Service Provider
Sponsored by John Eckerman The Boldt Company
PACE INTERNATIONAL 3582 Technology Drive NW
Rochester MN 55901Phone 507-424-4900Contact Jim WestraAssociate Member
Commercial Satellite amp Cable Television ProductsSponsored by Jay Burke Heartwood Homes of Rochester Inc
wwwRochesterAreaBuilderscom24 | September 2014
Put your membershipto work nowMoney-saving discounts that benefit yourbusiness your employees and your family
wwwnahborgMA
National Association of Home Builders
R
WwwRochesterAreaBuilderscomSeptember 2014 | 23
NONE
MEMBERSHIPS PENDINGNONE
The firms listed below have applied for membership in Rochester Area Builders Inc
MEMBERSHIP TOTAL 451RETENTION RATE 929
As of 63014
WE WELCOME THE FOLLOWING NEW MEMBERS IN AUGUST
Membership InformationMembership Renewals as of 73114
Two to Four Years
Kraus-Anderson Construction Company 2012Electrical Solutions amp Service 2011Energy Panel Structures 2011Lowersquos Home Improvement 2011Minnwest Bank 2011RCTC Carpentry Program 2011Reynolds Design and Construction 2010
Five to Nine Years
Great River Overhead Door 2007Meadow Lakes Builders 2007Rochester International Event Center 2007The Urban Studio LLC 2007Hunt Electric Corporation 2006Otis Custom Homes LLC 2006Larry Newman Drywall 2005Pahl amp Kaye Inc 2005Synergy Products 2005Tradesmen International Inc 2005
Ten to 19 Years
Greg Wellik Construction 2004Morris Concrete Inc 2004AampA Electric amp Underground Inc 2003Advanced Disposal 2002Knutson Construction Services 2002Tagrsquos Drywall Inc 2001Ronningen Roofing Inc 2000Ferguson Enterprises 1998
20 to 24 Years
Bright Ideas 1993Hirshfieldrsquos Decorating Center 1993Brock White Company 1991Dan Severson Builders Inc 1991
25 Years amp More
Gerhards 1988Express Employment Professionals 1985Townsquare Media Rochester 1983Smith Schafer amp Associates Ltd 1982Hayfield Window amp Door Company 1981Quality Overhead Door Company Inc 1981Energy Products amp Design Inc 1980Tom Brogan Heating amp Air Conditioning 1980Alvin E Benike Inc 1979Pella Windows amp Doors 1978Northern Lights amp Furnishings 1976Wells Fargo Home Mortgage 1964Alexander amp Sons Builders 1962
NEW APPLICANTS
CLIFTONLARSONALLEN LLP7389 Airport View Drive SW Suite 100
Rochester MN 55902Phone 507-280-2300Contact Paul Alberts
Associate MemberAccountingConsulting
Sponsored by Joel Alberts AampA Electric amp Underground Inc
DISTINGUISHED HOMES BY MITCH HAGEN LLC3015 18th Avenue SWRochester MN 55902Phone 507- 951-1962Contact Mitch Hagen
Builder MemberResidential Builder amp Remodeler
Sponsored by Brandon Vagt XRG Concepts LLC
LOW VOLTAGE CONTRACTORS
4200 West 76th StreetMinneapolis MN 55435
Phone 952-835-4600Contact Cathy Trast
Associate MemberFire amp Life Safety Integrated Systems Service Provider
Sponsored by John Eckerman The Boldt Company
PACE INTERNATIONAL 3582 Technology Drive NW
Rochester MN 55901Phone 507-424-4900Contact Jim WestraAssociate Member
Commercial Satellite amp Cable Television ProductsSponsored by Jay Burke Heartwood Homes of Rochester Inc
wwwRochesterAreaBuilderscom24 | September 2014
Put your membershipto work nowMoney-saving discounts that benefit yourbusiness your employees and your family
wwwnahborgMA
National Association of Home Builders
R
wwwRochesterAreaBuilderscom24 | September 2014
Put your membershipto work nowMoney-saving discounts that benefit yourbusiness your employees and your family
wwwnahborgMA
National Association of Home Builders
R
