September 2014 Newsletter.Indd

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- t i o n + 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 P r o - 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 SEPTEMBER + Veit Companies + Vennehjem Building Corporation + Vertical Limit Construction + Viking Automatic Sprinkler Company + Viking Electric 2014 Supply + Vision Homes & FOUNDATIONS Remodeling, LLC + WA Insurance + Warners' Stellian Appliance Co., Inc. + Waste Management + Weis Builders, Inc. + Greg a publication of Wellik Construction + Wells Rochester Area Builders, Inc. 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 A special offer for members only. Register now and save 2% on your Lowe’s Accounts Receivable purchases.** Plus, get free delivery on purchases of $500 or more.† To register, visit LowesForPros.com/NAHB or call 877-435-2440.

*Offer is not automatic. See store for details.**Offer valid now through 12/31/2014. Cannot be combined with any other statement discount. To be eligible for the 2% discount, you must register your NAHB membership by 12/31/2014 and make a purchase with your Lowe’s Accounts Receivable by 12/31/2014. 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 Lowe’s, and not GE Capital Retail Bank. Excludes Lowe’s Business Account Card, Lowe’s Consumer Credit Card, Lowe’s Visa Accounts, Lowe’s Business Rewards from American Express Card and all Lowe’s Canada Credit projects. Offer not valid on purchases made prior to registering NAHB membership at LowesForPros.com. Call 877-435-2440 for questions about this program. All purchases subject to credit approval. †Standard delivery rules apply. ©2014 Lowe’s. LOWE’S, Gable Mansard Design are registered trademarks of LF, LLC.

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13-XCL-00255-B_MNB_HookUp(Combo)_7.3125x4.75_4c_LO.indd 1 5/6/13 3:21 PM News from The President August 12, 2014 Index Election season is now in full swing! The August News from the President ...... 3 primaries narrowed down the field of candidates, and Sporting Clay Shoot ...... 4 with the end of summer upon us, more voters are now August Networking Night ...... 5 paying attention to the choices they’ll be making in Green Building Expo ...... 6-7 November. RAB does not endorse candidates for any Association Scrapbook ...... 8-9 office. We do, however, ask questions of all our elected and aspiring elected officials to ensure that we know Fall Showcase Entries ...... 10-11 where they stand on issues important to the building Remodelers Tour Entries ...... 11 industry. On The Job ...... 12-14 Hey Matt! What’s up with that? ...... 15 More importantly, though, we’ll make sure that they know BAM Update ...... 16 where we stand on the issues, too. Your RAB staff, Board, Committee Updates ...... 17 and Government Affairs Committee work constantly to Remodel It Right News ...... 18 make sure that our elected officials understand the actual, real-world, “downstream” Commercial Builders Council ...... 19 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 Rochester Permits ...... 20 looking out for the interests of RAB members, and hope that you will get engaged Byron/Pine Island Permits ...... 21 this fall to join us. Real Estate Data ...... 21 Elliot Eisenberg Article ...... 22 Someone once said that “the world is run by those who show up,” and nowhere is Membership Information ...... 23 that more true than in the election of public officials who will be shaping building NAHB Member Discounts ...... 24 industry policy for years to come. Executive Director/Editor Interesting in finding out more, or in getting involved? John Eischen • Come to our September 23 Legislative Forum! We will be inviting all candidates for city, county, and state offices to this RAB members-only event. This is your Production chance to hear first-hand from the candidates themselves about their positions, Ryan Kling-Punt and to share your opinions with them. The Rochester Builders newsletter is the official • Write a letter to the editor! Don’t be afraid to let public officials know that publication of Rochester Area Builders, Inc. This you helped build this city…and you vote! newsletter is published and distributed monthly to its members and others associated with the building • Contribute financially, either directly to the candidate of your choice or through industry. Neither the advertisers, nor RAB will be the Builder’s Association of Minnesota Political Action Committee (BAM-PAC). responsible or liable for misinformation, misprints, It doesn’t matter if you donate $5 or $500; find out where a candidate stands typographical errors, etc., herein contained. and make a gift that’s meaningful to you. • If you are really motivated, consider running for office yourself. All candidates, 108 Elton Hills Lane NW regardless of position or party affiliation, deserve our respect for being willing Rochester, MN 55901 to put themselves on the line. It may be too late for 2014, but our area always Phone: 507-282-7698 Fax: 507-282-6351 needs dedicated, willing public servants who understand this industry and care E-mail: [email protected] about our community.

Historical preservation….mandatory ﬁre sprinklers….DMC…updated development plans…single and multi-family homes…with 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 Worden 2014 RAB President

Www.RochesterAreaBuilders.com September 2014 | 3 Join us at the RAB Sporting Clay Shoot Thursday, September 4, 2014

GAMEHAVEN SCOUTING OF SOUTHEASTERN MINNESOTA COUNCIL SCOUT CAMP 5015 Simpson Rd SE

Hours: 1:00 P.M. - 1:30 P.M. Registration and Mandatory Safety Talks Presented By: 2:00 P.M. Shooting Starts 5:00 P.M. BBQ Dinner & Beer 6:00 P.M. Check Presentation to Boy Scouts, Prizes, and Rafﬂe Drawing

Calling all Hunters, Shooters, Outdoorsmen, or anyone looking to have a fun time with LIVE AMMUNITION! RAB is hosting our annual SPORTING CLAY SHOOT! We’ll have 20 stations, and each one is different! Teams will rotate through the stations, trying to rack up the highest score possible. Don’t miss out, sign up soon! Click Here to Register Online!

or download the registration form here.

www.RochesterAreaBuilders.com 4 | September 2014 President Don’t forget to mark you calendar Kevin Worden, Rochester Area Habitat for Humanity Vice President John Eckerman, The Boldt Company for the August Networking Night Secretary Lindsey Rippentrop, Olmsted National Bank Treasurer Tuesday, August 26th, Carla Kilpatrick, Home Federal Savings Bank Past President at Premier Bank Rochester Jean DeWitz, DeWitz Home Builders, Inc. Directors Jeremy Bigelow, Bigelow Homes 3145 Wellner Dr NE Karen Blissenbach, Design Studio B Christy Buchan, Energy Products & Design, Inc. Hours: 5:00 pm - 7:00 pm 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, King’s Flooring, LLC Brian Sheehan, Weis Builders, Inc. WHY PREMIER? Builders Exchange Council Representatives Premier is large enough to offer state of the art ﬁnancial J.J. Webster, Kraus-Anderson Construction Company, Chair products and services, yet small enough to give clients the Jake Schleusner, Merit Contracting, Inc., Vice Chair personal attention they deserve. Premier’s stable lending Tony Wintheiser, Hentges Glass, Past Chair Commercial Builders Council team take the time to understand client’s needs so they are Chris Terry, Knutson Construction Services, Chair Nick Leimer, Kraus-Anderson Construction better served. Established and continuing as independent, Company, Vice Chair community-oriented banks, Premier Banks continue to Development Council Chair meet the ﬁnancial need of our clients and supply the credit John Sipple, Rochester Area Appraisals, LLC Remodelers Council Chair necessary for local businesses and industries to grow. Sam Peyton, King’s Flooring, LLC National Life Directors OUR MISSION Joe Weis, Weis Builders, Inc. National Directors To be the premier community bank in the region, and the Steve Buss, Cornerstone Builders & Real Estate, Inc. David Kane, Kane & Johnson Architects, Inc., Rep. bank of choice in each of the communities we serve. Rory Lenton, Minnesota Energy Resources Corp. State Directors To foster long-term commercial relationships, built on trust, Jim Gander, Superior Mechanical John McGuine, Schoeppner, Inc., Rep. by observing the highest standards of corporate and social Mike Paradise, Bigelow Homes David Pederson, Dunlap & Seeger responsibility. Dan Severson, Dan Severson Builders, Inc. To create value for our customers, employees, and Executive Director John Eischen shareholders through excellent performance, state of the [email protected] art technology, and a relentless commitment to service. Staff Audra Bolduan [email protected] PREMIER BANK IS HAPPY TO BE CELEBRATING THEIR Marketing, Builders Exchange Trustees TH 40 ANNIVERSARY! Matt Limoges [email protected] Government Affairs, Commercial Builders Council, Development Council, Building Safety Advisory Group, Public Works Advisory Group, Community Relations, Green Building, Hosted By: Marketing Sharill Mueller [email protected] Home Show, Showcase Committee

Rebekah Nielsen [email protected] Ambassadors, Education, Membership, Premier Program, Spike Club, Remodelers Council -Executive-Home Tour-

MEMBER Ryan Kling-Punt [email protected] Banks Golf Outing, Sporting Clays, Directory, Newsletter, E-News Update

Www.RochesterAreaBuilders.com September 2014 | 5 RFP.pdf 8/21/2014 11:26:47 AM

NEW DATE! DEADLINE EXTENDED! EXHIBITORS NEEDED! What: Green Building Expo—an event for the public When: Saturday Oct. 25th -or- Nov. 1st Where: Cascade Meadow Wetlands and Environmental Science Center Time: 9am– 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 C

M Y Areas we are looking for: CM

CMY

K Buildings, Health and Wellness, Site Development, Landscaping and Drain- age Cost: $200—for a measly $200 you get a 6 foot booth and countless members of the public to talk to about your business

$50 to present. The com-

topics to be presented. Please reply with your registra�on and payment by October 3rd.

Signature Event Sponsors

www.RochesterAreaBuilders.com 6 | September 2014 RFP - Registration.pdf 8/21/2014 11:40:06 AM

Green Building Expo Registra�on Form

Register by October 3rd, 2014 by emailing a scanned version of this form to Ma�[email protected], 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.

C 108 Elton Hills Ln NW M

Y Rochester, MN 55901

CMY

Business: Contact Name: Nature of Business: Payment Method (Please Circle): Check Credit Card Credit Card Number : Security Code: Yes No

Signature Event Sponsors

Www.RochesterAreaBuilders.com September 2014 | 7 Association Scrapbook July Networking Night

Thank you to all who attended Membership Appreciation Night at the Rochester Thank You! Area Builders’ 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 & 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 AWAYS Charlie Brown, PC Applications, won a gift card to the Hubble House from RAB and the proverbial bad penny, Rick Dold, Godwin Law Office, won “Dinner on Us” from the Post Bulletin. www.RochesterAreaBuilders.com 8 | September 2014 Member Appreciation Night! Association Scrapbook

� � � � � � APPRECIATION

Www.RochesterAreaBuilders.com September 2014 | 9 DATES AND TIMES FOR THE 2014 FALL SHOWCASE OF HOMES Friday, Sept. 12 Signs to be Picked Up 8:00 AM – 4:00 PM Fall Saturday, Sept. 13 Entries Open to Public 11:00 AM – 5:00 PM Showcase Sunday, Sept. 14 Entries Open to Public 11:00 AM – 5:00 PM of Saturday, Sept. 20 Entries Open to Public 11:00 AM – 5:00 PM Sunday, Sept. 21 Entries Open to Public 11:00 AM – 5:00 PM Monday, Sept. 22 Signs to be Returned 8:00 AM – 5:00 PM

SHOWCASE ENTRIES

# 1 Med City Builders # 11 Bigelow & Lennon # 20 Craig Swanson of Rochester, LLC Construction Builders, Inc. 60766 254th Avenue, Mantorville 6320 Mallard Drive NW 2710 Headland Court SW Home Home Home

# 2 Somerby Golf # 12 Bigelow Homes, LLC # 21 Distinguished Homes Community 5542 Harvest Lake Drive NW by Mitch Hagen 943 Somerby Parkway NE, Byron Home 3550 Woodstone Drive SW Development Home # 13 DeWitz Home Builders # 3 Summit Custom 6221 51st Street NW # 22 Penz Custom Homes, LLC Home Homes, Inc. 943 Somerby Parkway NE, Byron 3622 Triton Lane SW Home # 14 Majestic Homes, Inc. Home 4818 Bishop Lane NW # 4 Bigelow Homes, LLC Home # 23 Chris Fritsch Custom 488 15th Ave NE, Byron Homes, LLC Home # 15 Exclusive Home Builders 3915 Creek View Lane SW & Remodelers Home # 5 Countryside Builders, LLC 3609 46th Avenue NW 1548 Wickford Place NE, Byron Home # 24 Thimijan Custom Home Homes, LLC # 16 MDH, Inc. – Orchard 5380 Scenic View Drive SW # 6 Derby Construction, LLC Hills Builders Home 6341 Oak Meadow Lane NW 626 Gates Lane SW Home Home # 25 R.J. Manemann Custom Homes # 7 Wright Homes, Inc. # 17 MDH, Inc. – Fox Hill 5406 Scenic View Drive SW 5897 Dogwood Court Builders Home Townhome 1031 Fox Valley Place SW Home # 26 R & M Development # 8 Thimijan Custom 5448 Scenic View Drive SW Homes, LLC # 18 Meadow Lakes Builders Home 2326 Granite Circle NW 3890 Berkshire Road SW Home Home Sponsored By: # 9 JNS Builders # 19 High Deﬁnition 2583 Flagstone Lane NW Homes, LLC Home 1291 Boulder Creek Lane SW Home # 10 Cravath Homes, LLC 6878 Larkspur Parkway Home www.RochesterAreaBuilders.com 10 | September 2014 DATES AND TIMES FOR THE 2014 REMODELERS TOUR Friday, Sept. 12 Signs to be Picked Up 8:00 AM – 4:00 PM Remodelers Saturday, Sept. 13 Entries Open to Public 11:00 AM – 5:00 PM Sunday, Sept. 14 Entries Open to Public 11:00 AM – 5:00 PM Monday, Sept. 15 Signs to be Returned 8:00 AM – 5:00 PM ADMISSION IS FREE!

SHOWCASE ENTRIES TOUR

# 27 Stonebridge Builders # 36 Penz Custom 5393 Scenic View Drive SW Homes, Inc. ENTRIES Home 3897 Cameo Place NE # 1 Reynolds Design Home & Construction # 28 Bigelow Homes, LLC 4905 Oaklawn Lane NW 5530 Leslie Lane SW # 37 Otis Custom Kitchen Home Homes, LLC 1716 Stone Crest Dr NE # 29 Bigelow Homes, LLC Home # 2 Master Builders, Inc. 2811 Talon Place SE 4242 Arboretum Drive NW Townhome Community # 38 Majestic Homes, Inc. Four Season Addition 3950 Cedarwood Road NE # 30 R. Fleming Home Construction, Inc. # 3 Elias Construction, LLC 2529 Tee Time Road SE # 39 Custom Homes 913 3rd Street NW, Byron Home by Bradley, Inc. Whole House Remodel 4053 Stone Point Drive NE # 31 Centurion Ridge, LLC Home Centurion Court NE # 4 Design Studio B Townhome Community # 40 Chris Fritsch 835 Fox Pointe Lane SW Custom Homes, LLC Kitchen # 32 Maplewood Homes, LLC 844 Zumbro Woods Lane NW, 1819 Shannon Oaks Blvd. NE Oronoco Home Home # 5 Beyond Kitchens, LLC 923 10th Street SW # 33 Countryside Kitchen Builders, LLC 2348 Coral Ridge Place NE Townhome Community # 6 Chladek Construction, LLC # 34 Countryside 245 1st Street NW, Elgin Builders, LLC Exterior Remodel & Addition 3669 Cameo Lane Home

# 35 Countryside Sponsored By: Builders, LLC 3519 Jasper Court NE Home

Www.RochesterAreaBuilders.com September 2014 | 11 ��

PROJECT: KITCHEN AND BATHROOM REMODEL CONTRACTOR: BEYOND KITCHENS, LLC HOST: KATIE DARVAL, PROJECT COORDINATOR/DESIGNER

REMODELING A HOME IS A UNIQUE AND MULTIFACETED�� for the homeowners. Work CHALLENGE. IT TAKES A SPECIAL KIND OF VISION TO LOOK responsibilities for one of the PAST WHAT A ROOM HAS BEEN, AND SEE WHAT IT COULD BE. couple mean clocking in from IT TAKES A SPECIAL KIND OF DETERMINATION TO OVERCOME home at all hours of the night THE OBSTACLES THAT ALWAYS COME WHEN YOU’RE TRYING TO to make calls to overseas FIT SOMETHING NEW INTO A SPACE THAT WAS NOT ORIGINALLY contacts, making storage for DESIGNED FOR IT. AND IT TAKES A SPECIAL KIND�� OF a home ofﬁce very important. PERSONALITY TO MAKE A HOMEOWNER FEEL COMFORTABLE�� But the clients also wanted an WITH YOU ESSENTIALLY MOVING IN AND TURNING THEIR LIVING uncluttered look, and for the SPACE INTO YOUR WORK PLACE. overall feel of reﬁnement and elegance to remain unspoiled. Beyond Kitchens, LLC has been making those So these workday necessities challenges their business for almost 20 years. This were given space in cabinetry talented team of women is composed of owner, Diane adjoining the dining room, Quinn, CKD, Christina Jorgensen, AKBD, and Katie complete with in-drawer Darval, their project coordinator, who was kind enough outlets and USB ports, so to give me access to the project, that all of their phones, tablets and answer my questions about it. and laptops can be tucked away out of site while not The project, inside a lovely home in in use. Southwest Rochester with a striking red door that demands attention To further the goal of uninterrupted elegance, Beyond and welcomes you inside, was Kitchens went the extra mile by acquiring custom about more than just a new look outlet and switch covers made of real stone. As Katie

www.RochesterAreaBuilders.com 12 | September 2014 says, “the backsplash and lighting are the jewelry to black appliances with a wall of dark wood cabinetry. the room.” Using these stone covers means that the They also enhanced the outlets and switches won’t be the first thing you notice feeling of spaciousness when you enter the room. While they are beautifully by extending the tile made, their real purpose is not to stand out but to backsplash all the way blend in, and to let the up to the ceiling above overall beauty of the the range. Creating room shine, without space, whether through distraction. It’s their illusion or through attention to small creative hidden storage, details like this that is often a necessity in truly show Beyond older homes. Kitchens’ ability to create a room that Another necessity in older homes is dealing with not only wows you on those unpredictable obstacles you encounter. I say first sight, but also unpredictable, because you never know what they’re ensures the homeowners will be happy with the project going to be, but you can always predict that you’ll run years down the road. into some. And the most common time for obstacles to show up is during demolition. Exhibit A: the Soffits. As Of course working with the homeowners, and what Katie notes, sometimes soffits are included purely as they bring to the table, is crucial. When you are a cosmetic feature. Other times, they are utilized to as building a new home, you can design a kitchen, pick a space for plumbing or electrical runs. The vision for the cabinets you like best, and then choose the flooring this project included removing the soffits and having and appliances that best accent it. Remodeling is the upper cabinets extend all the way to the ceiling rarely that simple. In this case, the kitchen already (yet another trick to add a feeling of spacious grandeur had beautiful hardwood floors that only needed to to the room). be restored. The homeowners had also recently So of course, purchased black appliances, so those needed to be f o l l o w i n g allowed for in the design as well. Katie says they Murphy’s law, decided to use off white cabinets in most of the kitchen these soffits to create a more spacious feel, while incorporating the 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!

Www.RochesterAreaBuilders.com September 2014 | 13 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 I’m happy to have been invited into their home!

If you’d like to see more of Beyond Kitchens, LLC’s work, you can check out their website at www. beyondkitchens.com, and make plans to visit their Remodelers Tour project, located at 923 10th St SW, th th on September 13 and 14 . ��

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Other RAB members who worked on this project include: • Brandrup Builders • Innovative Surfaces • Bright Ideas • Larry Newman Drywall • Creative Hardwood Floors • Kuntz Electric, Inc. • DeGeus Tile & Granite • Top Shop of Rochester, Inc. • Ferguson Enterprises

www.RochesterAreaBuilders.com 14 | September 2014 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 “Hey Matt, what can you tell me about have ties to Rochester. Jeff Johnson’s running mate is former Rochester law-maker Bill Kuisle. Mark Dayton’s the current crop of local candidates?” running mate Tina Flint Smith is currently the chair of the Destination Medical Center Corporation. It’s August. That means that summer is coming to a close, department stores have had their “back-to- US House of Representatives District 1 school” sections of their stores open for 6 weeks, and election season is just ramping up. This year we Blue Earth businessman Jim Hagedorn pulled off the have a variety of elections taking place in Rochester. upset of the primary when he defeated the Republican Mayor, City Council, School Board, Senator, Governor, party-endorsed candidate Aaron Miller. Hagedorn US House of Representatives, and State Auditor, just will challenge the incumbent Democrat Tim Walz in to name a few. In this month’s edition of HMWUWT, November. I will attempt to give you a little background on each of these races. STATE AUDITOR

MAYOR I know what you are thinking, why do we care about the State Auditor race, and what does the State This race was a little more crowded just a couple days Auditor do? Well, the State Auditor is charged with ago. There were three candidates, Mayor Brede, Cindy overseeing more than $20 billion spent annually by Maves, and Stephanie Kilen. On August 12, during local governments in Minnesota. The State Auditor the primary election, Mayor Brede and Cindy Maves does this by performing audits of local government were the top two vote getters and will proceed to the financial statements and by reviewing documents, General Election in November. Brede received 4,757 data, reports and complaints reported to the Office. votes, Maves 2,473, and Kilen 1,926. Look for the big The reason this race is interesting to me is because issue in this election to be governmental spending of the politicking that took place before the primary. since Maves used to head the Tea Party Patriots in Democrat Matt Entenza, bypassed the DFL convention Rochester. and filed to run after the incumbent Rebecca Otto received support from the DFL party. Otto defeated CITY COUNCIL WARD 3 Entenza by a 80-20 margin. Otto will face Republican Randy Gilbert in November, amongst a slate of other This was another race that whittled down to two candidates. candidates during the primary. Incumbent Bruce Snyder received 375 votes, Vickie Anderson 188 and LEARN MORE! Nick Campion 564. Campion and Snyder both advance to the general election. Ward 3 is generally considered As always, Rochester Area Builders will be holding to be NW Rochester, so make sure to check which our candidate social on September 30. Make sure to ward you live in! come on down to mingle with the candidates and pick their brains about issues that important to you. If you SCHOOL BOARD SEAT 5 have any questions about the upcoming elections, or anything at all, feel free to email me or give me a call Jean Marvin advanced out of the primary with 40% of the vote. Terry Throndson received 33% of the vote to also at the office. Thanks! advance. Nora Dooley with 20% and Matthew Halleck with 7% both failed to advance to the general election. Matt

Www.RochesterAreaBuilders.com September 2014 | 15 BAM Update: August 2014

What We’re They’re Here The new codes are (finally) out. Following a mutli-year process to promulgate the 2012 Doing For You: International Building Code, the Minnesota Department of Labor and Industry (DLI) has officially CWGQ Insurance 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 TBG Insurance guide documents that will be provided to members-only in September. The code is slated to be enforced starting January 24, 2015. Gov. Relations Membership with the builders association is the only way to obtain a copy of these documents, Legal Action and as such, BAM will be promoting the code guides – and membership – to all 13,000 licensed contractors. If interested in promoting your company statewide these code guides still Education have sponsorships available. More at www.bamn.org/sponsorship-opps. Contact Remi Stone at [email protected] or Katherine Nielsen at [email protected] with any questions. Online Forums Creating the code documents is codes expert Ed VonThoma, his company Building Knowledge Action Center 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, Energy Payback 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 Visit www.bamn.org and log-in to the Members the members-only guides. Only site for more The seven code guide documents are: information on these BAM initiatives! • Top 20 Code Changes in the Residential Building Code

• Top 20 Code Changes in the Energy Code

BUILDERS • Field Guide to Residential Code ASSOCIATION OF MINNESOTA

T: 651.646.7959 • Field Guide to Energy Code T: 800.654.7783 W: www.bamn.org • Field Guide to Radon

Executive Committee • Field Guide to Foundation Wall Support • Field Guide to Residential Fire Sprinklers President Chad Kompelein A major benefit of membership, these guides are available ONLY to members. DLI issues the Builder VP codes, but BAM develops guides on how to implement the new codes. The documents will be KC Chermak sent to members and made available on the BAM website; optimized for both printing and easy Associate VP viewing on your mobile devices out in the field. George Cundy President Elect Continuing education courses based on these code guides have been assembled by BKI, who is Mike Paradise available to teach classes around the state to help members prepare to build to the new code. Treasurer Let your local association know if you’d like BKI to teach in your community. Gerry Traut Secretary If you have industry peers that will benefit from having these guides, tell them to join your local Kurt Welker builders association and enjoy 3-in-1 membership to access BAM’s field guides and other value Past President added benefits such as our home building industry specific construction contracts. More benefits Keith Kylmala of BAM membership can be found online at www.bamn.org/membership.

NAHB Representative Kathe Ostrom

www.RochesterAreaBuilders.com 16 | September 2014 Committee Chairpersons AMBASSADORS Committee Updates Greg Hird, First Alliance Credit Union AWARDS AWARDS COMMITTEE TBA CHAIRPERSON: Les Radcliffe, Radcliffe Homes & Remodeling BUILDING MAINTENANCE TJ Schutz, Advanced Building Center, Inc. This committee is currently meeting to look for “special” members to BUILDING SAFETY ADVISORY Mickey Elias, Elias Construction, LLC 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 COMMUNITY RELATIONS Tony Kunz, Hiller’s Flooring America of membership, as well as nominating builders and associates to receive DISPUTE RESOLUTION the Builder & Associate of the Year Award and for the company who John Kuntz, Kuntz Electric, Inc. has supported the association, The Cornerstone Award,. In this month’s EDUCATION newsletter you have the opportunity to nominate someone whom you Vacant have noticed working extra hard for RAB. Please download the Form, fill it EXECUTIVE out, and return it to the RAB office. Kevin Worden, Rochester Area Habitat for Humanity FASHION SHOW Karen Blissenbach, Design Studio B FINANCE ROCHESTER AREA BUILDERS, INC. Carla Kilpatrick, Home Federal Savings Bank ASKS YOU TO MAKE NOMINATIONS FOR THE GOLF OUTING Lindsey Rippentrop, Olmsted National Bank GOVERNMENT AFFAIRS John Eckerman, The Boldt Company GREEN BUILDING THESE MEMBERS MUST BE: Kelly O’Marro, XRG Concepts, LLC � DEDICATED TO THE BUILDING INDUSTRY HOME SHOW – 2014 � ACTIVE PARTICIPANTS OF THE ASSOCIATION Jennifer Maass, Gerhards � ENTHUSIASTIC!

MARKETING The recipients of these three awards will be chosen by the Board of Directors at their Rob Easthouse, Electrical Solutions & Service December meeting and will be awarded at the January General Membership Meeting. MEMBERSHIP & RETENTION Previous Winners - Builders: Dan Bochman, Kruse Lumber 1992 Robert Gill and Richard Hanson and Joe Weis 1993 Frank Kottschade 1994 Roger Lubahn 1995 Jay Burke 1996 Dan Severson NOMINATING 1997 Les Radcliffe 1998 Bob DeWitz and Mark Stinson Kerk Johnson, Schwickert’s Tecta America, LLC 1999 David Higgins 2000 Jackie Hanson 2001 Aaron Benike 2002 Gary Zander 2003 John McGuine 2004 Mike Coats PERSONNEL 2005 Steve Buss 2006 Mike Hortop 2007 Jodi Hruska Kevin Worden, Rochester Area Habitat for 2008 Jay Burke 2009 Kevin Reckinger 2010 Paul Gregor Humanity 2011 Mike Larson CLICK2012 Kathy Einck HERE 2013 Les Radcliffe PROGRAM Previous Winners - Associates: Dan Plizga, Weis Builders, Inc. 1985 Don Soderberg 1987 Robert Suk 1988 Jim Buchan 1989 Mary Moylan 1990 Craig Wendland 1991 Ron Bailey PUBLIC WORKS ADVISORY 1992 Bill Tointon TO DOWNLOAD1993 Wayne Lewis 1994 Donna Scott Herriot Jeff Broberg, McGhie & Betts - a Division of 1995 Julie Timmerman 1996 John Arnold 1997 Steve Christopherson WSB & Associates, Inc. 1998 Brent Buchan 1999 Kim Zimmer 2000 Julie Praus 2001 Karin Buechler 2002 Dennis Hanson 2003 Carla Kilpatrick SHOWCASE OF HOMES 2004 Brent Buchan 2005 Jim Gander 2006 Brian Carlson Brandon Vagt, XRG Concepts, LLC 2007 John Eischen 2008 Wayne Eisen 2009 Jennifer Maass 2010 Tony Joseph 2011 Patty Hanson 2012 David Kane SPIKE CLUB 2013 Jennifer Maass Jay Burke, Heartwood Homes of Rochester, Inc. Previous Winners - Company: 2009 Energy Products & Design 2010 Knutson Construction 2011 Minnesota Energy Resources SPORTING CLAYS 2012 Wendland Utz 2013 Home Federal Savings Bank James Coyle, Kane & Johnson Architects, Inc. Councils Current President and Vice-President are not eligible for selection. BER EXECUTIVE COMMITTEE JJ Webster, Kraus-Anderson Construction Company I Nominate

CBC EXECUTIVE COMMITTEE Reasons for Nomination Chris Terry, Knutson Construction Services I Nominate DEVELOPMENT COUNCIL John Sipple, Rochester Area Appraisals, LLC Reasons for Nomination REMODELERS EXECUTIVE COMMITTEE I Nominate Sam Peyton, King’s Flooring, LLC REMODELERS TOUR Karen Blissenbach, Design Studio B

Www.RochesterAreaBuilders.com September 2014 | 17 �� construction fashion expose

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www.RochesterAreaBuilders.com 18 | September 2014 Members 2014 Commercial Builders Council 116 Members as of 6/30/14 AB Systems, Inc. Kwik Trip, Inc. COMMERCIAL Accord Electric, Inc. Leitzen Concrete Advanced Disposal Products, Inc. BUILDERS COUNCIL Alpha Video & Audio Marvin Windows & Alvin E. Benike, Inc. Doors BEVCOMM Mavo Systems, Inc. The Blue Book McGhie & Betts - a of Building & Division of WSB & a division of Rochester Area Builders, Inc. Construction Associates, Inc. The Boldt Company McGough Construction Braun Intertec MEC Construction, Inc. Corporation MEP Associates Briese Iron Works, Inc. Merchants Bank Brock White Company Merit Contracting, Inc. August MEETING C.O. Brown Agency Midwest Walls, LLC Cambria Minnesota Energy DATE: Wednesday, August 6th, 2014 Carpet One Resources Corporation Charter Minnwest Bank TIME: Registration & Networking at 7:00 A.M. Communications/ Nickelson Painting, Inc. Program at 7:30 A.M. Media North Star Stone & Chosen Valley Testing, Masonry PLACE: Ramada Hotel & Conference Center Inc. Olmsted National Bank Clayton Thomas Blinds On Site Companies PROGRAM: World Fair 2023 of Rochester Palmer Soderberg, Inc. SPEAKERS: Mark Ritchie, Minnesota Secretary of State Construction Pella Windows & Doors Partnership People’s Energy CRW architecture + Cooperative design group, inc. Pompeii Painting, Inc. EXECUTIVE COMMITTEE Custom Alarm/Custom Prehn Building Sales, Communications, Inc. Inc. Chairperson: Chris Terry, Knutson D2E, LLC Premier Bank Rochester Construction Services Donlar Construction ProBuild Company, LLC New Member Company Reliable Contractors, Vice Chairperson: Nick Leimer, Kraus- Doyle Conner Company Inc. Anderson Construction Company Dunham Associates, Rochester Area Inc. Appraisals, LLC Past Chairperson: Sue Hanson, Rochester Clayton Thomas Blinds Dunlap & Seeger Rochester Area Econ. Title & Escrow Company, Inc. JE Dunn Construction Development, Inc. of Rochester Eastwood Bank Rochester Public Members-at-Large: Darlene Drew eci, llc Utilities John Hill, Schwab, LLC Elcor Construction, Inc. Rochester Ready Mix 2400 Country Club Rd SW Energy Products & Concrete Co Shaun Knode, AB Systems, Inc. Design, Inc. Rochester Sign Service, John Kuntz, Kuntz Electric, Inc. Rochester, MN 55902 Enventis Inc. Expert Insulation, Inc. Rochester Title & Levi Kaiser, A.E. Benike, Inc. 507-258-4457 Fat Willy’s Bar & Grill Escrow Company, Inc. Matt Mohs, WHKS & Company Ferguson Enterprises RSP Architects Gerhards Ryan Electric, Inc. Mike Nordstrom, Superior Mechanical Goodin Company Schoeppner, Inc. Haley Comfort Systems Schwab, LLC (Authorized FireSide Schwickert’s Tecta August Meeting Photos Dealer) America, LLC W.L. Hall Company SEH Yaggy HDR Architecture Stantec Heartman Insurance Sterling State Bank HGA Architects and Structural Design Engineers Group, Inc. Hiller’s Flooring America Superior Mechanical HiMEC at Home Tamarack Materials of Home Federal Savings Rochester, Inc. Bank Think Mutual Bank Home Improvement Tonna Mechanical, Inc. Professionals, Inc. TSP Architects & Hunt Electric Engineers Corporation United Rentals Institute for The Urban Studio, LLC Environmental Valor Mechanical, Inc. Assessment Veit Companies P.A. Johnson Vertical Limit Construction, LLC Construction K&M Glass Company Viking Automatic Kane & Johnson Sprinkler Company Architects, Inc. Viking Electric Supply Key Builders, Inc. Weis Builders, Inc. Knutson Construction Wells Fargo Bank Services Minnesota NA Komitt Concrete, Inc. Wendland Utz Kraus-Anderson West Bank Construction Company WHKS & Company Kreofsky Building WHV, Inc. Supplies Widseth Smith Nolting Kruse Lumber Kuntz Electric, Inc.

Www.RochesterAreaBuilders.com September 2014 | 19 Rochester Building Permits July 2014

2014 VALUATION 2013 VALUATION New Residential Single Family Homes Single Family Dwelling 30 7,389,265 39 9,441,463 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 January 33 39 27 20 3 13 3 6 19 11 Townhome Dwelling 8 1,224,172 0 0 February 31 31 19 13 1 8 8 20 15 14 Two-Family Houses 0 0 0 0 March 59 37 30 29 16 27 24 32 29 28 Multi-Family Bldgs 0 0 0 0 April 58 58 44 27 29 25 19 29 39 25 Manufactured Home 0 0 0 0 May 77 69 50 30 33 20 14 22 27 35

Existing Residential June 81 59 43 36 36 12 26 32 33 41 Deck Addition 45 283,519 33 160,271 July 58 36 60 23 21 23 8 39 39 38 Room Addition 3 85,012 4 177,306 TOTAL 397 329 275 178 139 128 102 180 201 192 Porch Additions 1 8,000 2 39,494 August 69 36 43 28 26 15 18 38 21 Other Additions 4 38,500 2 23,940 September 65 31 33 28 33 10 19 22 23 Basement Finish 18 240,045 24 323,650 October 71 49 34 19 31 14 16 23 34 Alterations 41 234,327 45 281,947 November 40 38 23 26 30 21 20 22 26 Multi-Family Addition 0 0 4 31,620 December 60 23 11 16 15 12 16 14 22 Multi-Family Alterations 14 151,160 6 4,615,400 TOTAL 702 506 417 302 274 200 191 299 326 192 *total may differ as permits may have been voided. New Commercial Assembly (Church) 0 0 0 0 Year To Date Statistics

Assembly (General) 0 0 1 2,720,000 2014 2013 NO. VALUATION NO. VALUATION Assembly (Restaurant/Bar) 0 0 0 0 Business 0 0 0 0 Building Permits Issued to Date 1,377 199,056,393 1,280 149,430,856 Education 0 0 0 0 Single Family Dwelling 186 45,041,027 201 47,362,534 Factory/Industrial 0 0 0 0 Multi-Family Buildings Institution 0 0 0 0 Total Units: 39 1 3,702,052 0 0 Mercantile 0 0 1 580,000 Miscelaneous 0 0 0 0 Trade Permits Utility (General) 0 0 1 90,000 Issued to Date 4558 46,616,612 4,145 40,187,782 Residential (Care/Assisted Living) 0 0 0 0 Electrical 1573 20,801,155 1,355 18,804,490 Storage (General) 0 0 0 0 Electrical (Temp. Service) 159 46,875 188 39,500 Storage (Warehouse) 0 0 0 0 Mechanical 1187 12,309,661 1,078 10,781,042

Existing Commercial Gas Piping 317 546,576 286 263,280 Fireplace 237 629,268 215 506,084 Addition 3 4,313,000 2 1,214,050 Hydronic System 94 4,005,425 69 3,097,653 Alterations 25 4,451,261 40 6,158,997 Plumbing 991 8,277,652 954 6,695,793 Structural Shell 0 0 0 0

“White Box” 0 0 0 0 Total Permits YTD 5,935 245,673,005 5,425 189,618,638 Interior Demolition Only 2 2,017,000 3 54,800 Information and downloads available at Rochester Building Safety Department’s Website: Other Phased Permits 1 6,700 0 0 http://www.rochestermn.gov/departments/bldgsafety/reports/building/index.asp

Other Construction Business Signs 4 10,630 12 87,202 Advertising Sign 0 0 0 0 Footings & Foundations 1 76,000 1 1,100,000 Demolition 0 1

www.RochesterAreaBuilders.com 20 | September 2014 Byron Rochester Real Estate Building Permits Monthly Housing Data JUNE 2014 March 2014 New Residential NUMBER VALUATION Single Family 9 1,991,399 Commercial Monthly Housing Data March 2014 March 2013 % Change Addition 1 89,470 New Listings 311 320 -2.8% Existing Residential Deck Addition 7 41,847 Active Listings Year to 1,087 1,195 -9.0% Basement Finish 1 12,000 Date Garage 1 2,267 Pending Listing 173 212 -18.4% Accessory Building 2 11,500 Sold Listings 128 144 -11.1% Sold Listings Year to 312 342 -8.8% Date Median Sales Price 158,000 153,150 3.0% (SOLD) SOLD Days on Market 81 100 -19.00% (DOM) Pine Island Avg. Year to Date 86 110 -21.82% Building Permits (DOM)

JULY 2014 Information and downloads available at South East Minnesota Association of REALTORS’ Existing Residential NUMBER VALUATION Website: http://semnrealtors.org/general/stats_market-trends.html Sprinkler System 1 5,000 Residing 1 5,000 Reroof 5 25,000 Information Provided By: Deck 2 6,000 Mechanical 1 1,000 Garage 1 20,000

Www.RochesterAreaBuilders.com September 2014 | 21 All Bubbles Are Not ++++++++++ Created Equal +++++++++++++++++ Elliot Eisenberg, Ph.D. +++++++++++++++++++

In early 2000, the S&P 500 hit 1,553 and the tech- and limited assets. To compensate, these Alt-A and heavy NASDAQ surpassed 5,000. Two years later subprime buyers borrowed heavily with their now the S&P was at 768 and the NASDAQ was at 800! highly levered house being their major ﬁnancial In the process, $6 trillion in household wealth was asset. For example, among the poorest quintile of wiped out. We now call that period the dot-com the population, 80% of their net worth is in their bubble. About half a decade later, we experienced house. Even among the middle quintile, home the housing market bubble. Interestingly, the value equity is still 60% of their net worth. By borrowing of residential real estate destroyed during that crisis so much, just a small decline in house prices could was also about $6 trillion. Yet the dot-com bubble put these buyers upside down and wipe them out. resulted in a mild recession while the housing bust Which is exactly what happened and is what turned lead to the Great Recession. What was different? It a recession into the Great Recession. Between 2007 turns a major culprit was which households suffered and 2010 the bottom 20% of the population saw their the destruction of wealth. net worth fall from about $30,000 to zero.

To set the table, ponder this: During the housing By contrast, the financial losses sustained during bust, retail spending fell 8% from 2007 to 2009, one the dot-com bubble were essentially walled off and the largest drops ever. By contrast, retail spending had relatively little effect on the overall economy. increased by 5% between 2000 and 2002. Clearly, This is because stock ownership is concentrated the losses sustained during the dot-com bust had among the wealthy. As the wealthy have less debt minimal impacts on household spending decisions and more assets, they could essentially shrug off the and thus on the overall economy. Here is why. much larger financial losses they sustained yet not have them alter their day-to-day spending decisions. The decline in home prices that began in 2007 was Among the wealthiest 20% of the population, highly concentrated among households with very home equity represents just 25% of their net worth. limited financial resources. As a result, these now Moreover, depression-era federal laws make it much-poorer households dramatically pulled back hard to borrow more than 50% of the cost of stock on spending and in the process unwittingly helped purchases, thereby limiting the potentially negative usher in the Great Recession. Remember, retail role of leverage. spending is about a quarter of GDP, so a decline of 8% over two years reduces GDP by 2% -- a huge In short, the home buyers who bought in 2004 and amount. It is as if these poorer households were the 2005 had limited wealth and had more of it at risk transmission mechanism through which the Great than earlier home buyers. When the music stopped Recession got its energy. they were highly levered and wholly unable to protect themselves. That quickly resulted in (among Exacerbating and reinforcing this downward spiral other things) reduced spending, which shrank GDP was the role of debt or leverage. Remember, by 2004 and quickly cascaded into the Great Recession. or 2005 a large percentage of first-time home buyers had low FICO scores, sketchy employment histories +++++++++++++++++

Elliot Eisenberg, Ph.D. is President of GraphsandLaughs, LLC and can be reached at [email protected]. His daily 70 word economics and policy blog can be seen at www.econ70.com.

www.RochesterAreaBuilders.com 22 | September 2014 NEW APPLICANTS: Membership The firms listed below have applied for membership in Rochester Area Builders, Inc. Information NONE Membership Renewals as of 7/31/14 Two to Four Years MEMBERSHIPS PENDING: Kraus-Anderson Construction Company 2012 NONE Electrical Solutions & Service 2011 Energy Panel Structures 2011 Lowe’s Home Improvement 2011 MEMBERSHIP TOTAL: 451 Minnwest Bank 2011 RETENTION RATE: 92.9% RCTC Carpentry Program 2011 As of 6/30/14 Reynolds Design and Construction 2010 Five to Nine Years Great River Overhead Door 2007 Meadow Lakes Builders 2007 WE WELCOME THE FOLLOWING Rochester International Event Center 2007 The Urban Studio, LLC 2007 NEW MEMBERS IN AUGUST: Hunt Electric Corporation 2006 Otis Custom Homes, LLC 2006 Larry Newman Drywall 2005 CLIFTONLARSONALLEN, LLP Pahl & Kaye, Inc. 2005 7389 Airport View Drive SW, Suite 100 Synergy Products 2005 Rochester, MN 55902 Tradesmen International, Inc. 2005 Ten to 19 Years Phone: 507-280-2300 Greg Wellik Construction 2004 Contact: Paul Alberts Morris Concrete, Inc. 2004 Associate Member A&A Electric & Underground, Inc. 2003 Accounting/Consulting Advanced Disposal 2002 Sponsored by: Joel Alberts, A&A Electric & Underground, Inc. Knutson Construction Services 2002 Tag’s Drywall, Inc. 2001 Ronningen Roofing, Inc. 2000 DISTINGUISHED HOMES BY MITCH HAGEN, LLC Ferguson Enterprises 1998 3015 18th Avenue SW 20 to 24 Years Rochester, MN 55902 Bright Ideas 1993 Phone: 507- 951-1962 Hirshfield’s Decorating Center 1993 Brock White Company 1991 Contact: Mitch Hagen Dan Severson Builders, Inc. 1991 Builder Member 25 Years & More Residential Builder & Remodeler Gerhards 1988 Sponsored by: Brandon Vagt, XRG Concepts, LLC Express Employment Professionals 1985 Townsquare Media Rochester 1983 Smith Schafer & Associates, Ltd. 1982 LOW VOLTAGE CONTRACTORS Hayfield Window & Door Company 1981 4200 West 76th Street Quality Overhead Door Company, Inc. 1981 Minneapolis, MN 55435 Energy Products & Design, Inc. 1980 Phone: 952-835-4600 Tom Brogan Heating & Air Conditioning 1980 Alvin E. Benike, Inc. 1979 Contact: Cathy Trast Pella Windows & Doors 1978 Associate Member Northern Lights & Furnishings 1976 Fire & Life Safety Integrated Systems Service Provider Wells Fargo Home Mortgage 1964 Sponsored by: John Eckerman, The Boldt Company Alexander & Sons Builders 1962

PACE INTERNATIONAL 3582 Technology Drive NW Rochester, MN 55901 Phone: 507-424-4900 Contact: Jim Westra Associate Member Commercial Satellite & Cable Television Products Sponsored by: Jay Burke, Heartwood Homes of Rochester, Inc.

Www.RochesterAreaBuilders.com September 2014 | 23 National Association of Home Builders

Put your membership to work now.

Money-saving discounts that benefit your business, your employees, and your family www.nahb.org/MA