foundations - june 2014
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J U N E2014 Rochester Area Builders Inca publication of
F O U N DAT I O N S
AampA Electric amp Underground Inc + AB Systems Inc + Abbco Company + ABC Seamless of Rochester Inc + ABC Supply Company Inc + Above All Roofing of Rochester Inc + Accord Electric Inc + Adair Electric Company + Adamson Motors + Advanced Builders amp Remodeling + Advanced Builders LLC + Advanced Building Center Inc + Advanced Disposal + Advantage Cabinets Inc + AgStar Home Mortgage Services + Alexander amp Sons Builders + All Craft Exteriors LLC + Mike Allen Homes LLC + Allen Outdoor Solutions LLC + All-Star Basements + Alpha Video amp Audio + Altra Federal Credit Union + American Engineering Testing Inc + American Fence Company of MN LLC + American Waterworks + Ames Construction Inc + Amirco LLC + Andersen Windows Inc + Anderson Construction + Appliance Village Company + Arcon Develop-ment Inc + Arrow Building Center + Associated Bank + Athelon Enterprises LLC + BampC Plumbing amp Heating Inc + Al Barker Custom Homes Inc + Barrier Free Access Inc + Basement Water Control + Batzel Builders Inc + Beckleys Office Products + Beetles Bar amp Grill Inc + Alvin E Benike Inc + Scott Berberich Construction LLC + Scott Berg Construction LLC + Bessler Management + Beyond Kitchens LLC + Bigelow amp Lennon Construction LLC + Bigelow Homes + KW Billman Inc + The Blue Book of Building amp Construction + Bobcat of Rochester + Bobs Construction Inc + The Boldt Company + Bouquet Builders Inc + Bowmans Door Solutions + Brandrup Builders + Brauer Roofing Inc + Braun Intertec Corporation + Brekke Fireplace Shoppe + Bricewood LLC + Briese Iron Works Inc + Bright Ideas + Brinkman Builders LLC + Brock White Company + Tom Brogan Heating amp Air Conditioning + Brooks Excavating Company Inc + CO Brown Agency + Bruce Bucknell Construction Inc + Budget Blinds + Building Products Inc + Burdick Builders Inc + By Design Builders + Byrne Electric Inc + Cachiaras Building amp Remodeling + Cambria + Carpet One + CarpetsPlus of Rochester + Castlewood Homes Inc + Charter CommunicationsMedia + Chladek Construction LLC + Chosen Valley Testing Inc + Christian Brothers Cabinets Inc + CHS Inc + City of Byron + City of Chatfield + City of Eyota + City of Preston + City of Spring Valley + Citywide Insulation Inc + Clareys Safety Equipment + Clayton Thomas Blinds of Rochester + Clear Channel Radio (LaserFoxKFAN) + Clements Chevrolet Cadillac Subaru + Closet Organizers + Coldwell Banker Burnet + Commercial Leasing Services + Construction Partnership + Corban Homes LLC + Cordes Construction + Cornerstone Builders amp Real Estate Inc + Cornerstone Designs of Rochester Inc + Corporate Web Services Inc + Counselor Realty of Rochester Inc + Countryside Builders LLC + Cravath Homes LLC dba Accessibility Solutions + Creative Hardwood Floors + Crescent Electric Supply Company + CRW architecture + design group inc + Culligan of Rochester amp Kasson + Currys Custom Cut Gutter LLC + Curtin Drywall Inc + Custom AlarmCustom Communications Inc + Custom Retaining Walls amp Landscaping Inc + D2E LLC + Dahl Home Builders Inc + Data-Smart Computers Inc + DeCook Builders LLC + DeGeus Tile amp Granite + Derby Construction LLC + The Design Connection + Design Studio B + DeWitz Home Builders Inc + DiNicola amp Pestka Appraisals + DMC Plumbing amp Heating Inc + Dolans Landscape Center Inc + Donlar Construction Company + DoubleTree by Hilton - Mayo Clinic Area + DreamMaker Bath amp Kitchen + Dunham Associates Inc + Dunlap amp Seeger + JE Dunn Construction + Dura-Oak Kitchen Make Overs + MH Dutton Construction LLC + EampM Consulting Inc + Eastwood Bank + eci llc + Eckert Construction Inc + Edel Construction LLC + Edge Homes amp Construction Inc + Edina Realty Home Services + Todd Eidem Construction Inc + Elcor Construction Inc + 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 + Goodin Company + Great River Overhead Door + Green Lawncare Irrigation amp Service Co + Gregor Builders Inc + GulfEagle Supply + Habitat for Humanity - Rochester Area + Habitat for Humanity - WinonaFillmore County dba Habitat ReStore + Haley Comfort Systems (Authorized FireSide Dealer) + WL Hall Company + Hammer Homes Inc + Hanson Construction amp Specialty Cabinets LLC + Hayfield Window amp Door Company + HDR Architecture + Heartman Insurance + Heartwood Homes of Rochester Inc + Brandon Hendersons Construction Plus LLC + Hentges Glass Company + HG Electric LLC + HGA Architects and Engineers + Hicks Electric Inc + Higgins Custom Cabinetry + High Definition Homes LLC + Hillers Flooring America + HiMEC at Home + Jeff Hinkle Custom Homes + Hirshfields Decorating Center + Holt Title Guaranty Company Inc + The Home Depot + Home Federal Savings Bank + Home Improvement Professionals Inc + Home Systems Installation LLC + Howe Countertops + Hunt Electric Corporation + Hutchs Custom Cabinets + Intl Brthrhd of Electrical Wrkrs Local 343 + Innovative Surfaces Inc + Institute for Environmental Assessment + Insty Prints + IntegraSpec CentralJeff Mueller Construction + Michael Jack LLC + JNS Builders LLC + JP Johnson Custom Builders Inc + JPs Construction Remodeling amp Repair Inc + KampM Glass Company + KampS Heating AC Plumbing amp Electrical + Kahler Hospitality Group + Tom Kalmes Construction Inc + Kane amp Johnson Architects Inc + Keller Williams Premier Realty + Key Builders Inc + Kings Flooring LLC + Kinzler Construction Services Inc + Kirkland Enterprises LLC + Kitchen Concepts + The Kitchen Design Studio + Kitchens Plus + Gary Kline Roofing Inc + Knutson Construction Services + Koballs Poured Walls Inc + Kraus-Anderson Construction Company + Kreofsky Building Supplies + Kruger Electric Inc + Kruse Lumber + KTTCKXLT-TV + Kuehn Motor Company Inc + Kuntz Electric Inc + Kwik Trip Inc + LampL Cabinets + Lacina Siding amp Windows Inc + Laitala Tile Company + Larsen Industries Inc + Larson Siding amp Windows + Legends Concrete Inc + Leitzen Concrete Products Inc + Leyen-decker Homebuilders LLC + Lodermeiers Inc + Lowes Home Improvement + Luxury Bath Remodeling + Maas Companies Inc + Maier Tree amp Lawn + Majestic Homes Inc + R J Manemann Custom Homes + Manufacturers Bank amp Trust + Maple-wood Homes LLC + Markham Homes LLC + markit + Marvin Windows amp Doors + Massey Land Surveying amp Engineering + Master Builders Inc + Mavo Systems Inc + McGhie amp Betts - a Division of WSB amp Associates Inc + McGladrey + McGough Construction + MDH Inc + Meadow Lakes Builders + MEC Construction Inc + Med City Builders of Rochester LLC + Menards - South + MEP Associates + Merchants Bank + Merit Contracting Inc + Michaels Custom Cabinets Inc + Mid American Financial Group + Midwest LeafGuard of Rochester Inc + Midwest Walls LLC + Miller amp Sons Construction Inc + Minnesota Energy Resources Corporation + Minnwest Bank + MLT Group + Morris Concrete Inc + Larry Newman Drywall + Nickelson Painting Inc + North Central States Regional Council + North Star Stone amp Masonry + Northern Lights amp Furnishings + Nuss Truck amp Equipment + OConnor Homes Inc + Ohly Law Office + Olmsted County Planning Dept Insp Div + Olmsted County Public Health + Olmsted National Bank + JB OMeara Company + On Site Compa- nies + Otis Custom Homes LLC + Overhead Door Co of Olmsted County + Owners Plumbing Inc + Oxi-Fresh Carpet Cleaning + Paape Energy Services + Pahl amp Kaye Inc + Palmer Soderberg Inc + Walt Pappas C o n - struction + Paramark Corporation + Payne Company + PC Appli- cations Consultants Inc + Pearson Builders Inc + Pebble
CreekWestern Walls + Pella Windows amp Doors + Pendle Hansen Bagne Insurance + Penz Custom Homes Inc +
Peoples Energy Cooperative + Peterson Well Drilling Inc + Pine Island Lumber + Pompeii Painting Inc
+ Post-Bulletin Company LLC + Powers Ventures + Prehn Building Sales Inc +
Premier Bank Rochester + Premier Builders of Rochester Inc + Price Financial
Services Inc + Prime Time Painting of Rochester LLC + PrimeLending + Priority Claims Service + Pro Image
Promotions amp Apparel + ProBuild Company LLC + Quality Overhead Door
Com- pany Inc + Quality Siding amp Window Inc + Michael Quinn Law Office + RampM Develop-ment Company + R Thomas Consulting LLC + Radcliffe Homes amp Remodeling + Range Custom Homes LLC + RCON Homes Inc + RCTC Carpentry Program + REMAX of Rochester + Region Millworks Inc + David Reiland Building Contractor LLC + Reliable Contractors Inc + Reynolds Design and Construction + Rochester Area Appraisals LLC + Rochester Area Chamber of Commerce + Roches-ter Area Econ Development Inc + Rochester Area
Foundation + Rochester Asphalt Inc + Rochester Building Safety Department + Rochester Concrete Products LLC + Rochester Interna- tional Event Center + Rochester Plumbing amp HeatingRoto Rooter + Rochester Public Utilities + Rochester Public Works + Rochester Ready Mix Concrete Co + Rochester Sign Service Inc + Rochester Title amp Escrow Company Inc + Rock Solid Retaining Walls + Ronningen Roofing Inc + RSP Architects + Ryan amp Grinde Ltd + Ryan Electric Inc + Ryan Windows amp Siding Inc + SampS Overhead Door Inc + Sargents Landscape Nursery Inc + Sawyer Construction Services Inc + Schad Tracy Signs Inc + Schmidt Goodman Office Products + Schoeppner Inc + Schumann Granahan Hesse amp Wilson Ltd + Schwickerts Tecta America LLC + Seavey Builders Inc + 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 Contract-ing LLC + Kenny Sylvester Construction LLC + Synergy Products + Tags Drywall Inc + Tamarack Materials of Roches-ter Inc + TDS Metrocom + Thermo-Tech Windows + Thiemann Construction Inc + Thimijan Custom Homes LLC + Think Mutual Bank + Thomas Tool amp Supply + Thompsons Garage Door and Openers + Thrivent Financial - Rochester Group + Tile Superstore amp More + TLC Surfaces + Tonna Mechanical Inc + Top Shop of Rochester Inc + Total Electric of Rochester Inc + Townsquare Media Rochester + Tradesmen International Inc + Traditional Wood Builders + Tri Star Insulation + Tri State Insulated Concrete Forms + TSP Architects amp Engineers + Turri Crane Service Inc + Turtle Creek Construction Inc + United Heating amp Cooling + United ProductsAllied Building Products Corp + United Rentals + The Urban Studio LLC + US Bank + Valor Mechanical Inc + Val-U-Blinds + Van Haren ICF + Vector Windows + Veit Companies + Vennehjem Building Corporation + Vertical Limit Construction + Viking Automatic Sprinkler Company + Viking Electric Supply + Vision Homes amp Remodeling LLC + Vollara GlobalDPS + WA Insurance + Waddell amp Reed + Warners Stellian Appliance Co Inc + Waste Management + Weis Builders Inc + Greg Wellik Construction + Wells Fargo Bank Minnesota NA + 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 + Yaggy Colby Associates + Rick Yerhot Builder + Your Home Improvement Company + Zumbro Haven LLC
wwwRochesterAreaBuilderscom2 | June 2014
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building needs including natural gas and electric We even off er
rebates for qualifying natural gas appliances Contact us today
and fi nd out how we can help you
Visit xcelenergycomEnergyPartners today
call 1-800-628-2121 or fax 1-800-628-2521
ENERGYVALUEBESTHO
OK UP
with the
copy 2013 Xcel Energy Inc
xcelenergycomEnergyPartners
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A special offer formembers onlyRegister now and save 2 on your Lowersquos Accounts Receivable
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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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WwwRochesterAreaBuilderscomJune 2014 | 3
Index News from the President 3Thank Yous 3RAB Golf Outing 4June Networking Night 5Green Building Expo 6-7Association Scrapbook 8-11Hey Matt Whatrsquos up with that 12-13Public Works Dept News 14-15Committee 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 PresidentMay 22 2014 ldquoVan Halen requests that the
brown MampMrsquos be removedrdquo
Fellow RAB Members ldquoback in the dayrdquo did you ever hear about this peculiar request made by the rock band to their concert promoters at each arena Urban tales abounded- all completely false- about the band trashing dressing rooms if they found the despised brown MampMrsquos in the catering area At the time this quirky demand was attributed to the egotistical excesses of a group whose ascent to fame had gone to their heads
Much like the issues that RAB works on though- from fire sprinklers to historic preservation- jumping to a sweeping conclusion based on emotion hype or some of the information can often be more misleading than forming an opinion based
on no information at all
Herersquos the real story about the MampMrsquos
Van Halen was an early pioneer in bringing large-arena rock shows to medium-sized venues Doing this successfully though required that each cityrsquos local stage sound equipment and main lights be placed and prepared with absolute precision according to the bandrsquos specific directions There was no margin for error In communicating these instructions with promoters and arenas around the country in very detailed contracts a simple litmus test was written into the later pages of this lengthy document no brown MampMrsquos in the candy dish
As David Lee Roth the bandrsquos on-again off-again front man would later admit the band could truly have not cared less about brown MampMrsquos They did care greatly though about putting on an awesome show every night for fans who paid their hard-earned money to come and see them One look at the candy dish when they arrived in a new city and were being shown the backstage area showed them all that they needed to know about their workload for that day If the candy dish was free of brown MampMrsquos the band knew with near certainty that every other detail spelled out in the contract had also been attended to The presence of brown MampMrsquos in the dish though meant that all elements specified to execute their high-impact concert needed to be checked and rechecked before showtime Accuracy could no longer be taken for granted
As a few high-impact issues for RAB seem to be coming to a peak simultaneously much has been said and written about our positions- unfortunately some of it based on less than the full facts Letrsquos do our best to make sure we knowhellipand share with good cheerhellipthe full story of our positions with those who ask Letrsquos also assume the best intentions in those who have a different opinion than us knowing that we may not have their full set of facts either
And while yoursquore at it feel free to pass the brown MampMrsquos
Enjoy the first rays of summer and have a great month
Kevin Worden2014 RAB President
April GMMThank you to Tradesman International for being the Social Hour Sponsor for our April General Membership Meeting held at the Events by Canadian Honker at the Ramada They were represented by Brad Hoffman Thank you to Carpet One for being the Desert Sponsor They were represented by Kathy Swygman
Our game night this year was Builder Feud hosted by ldquoRichard Dawsonrdquo aka John Eckerman Boldt Construction The ldquosetrdquo was design by RABrsquos own Ryan Kling-Punt The Builder Family was Mike Coats MEC Construction Kathy Einck Maplewood Homes John McGuine Schoeppner Construction Les Radcliffe Radcliffe Homes and Remodeling and Gary Zander Honorary Member The Association Family was Karen Blissenbach Design Studio B Brain Carlson Widseth Smith amp Nolting Wayne Eisen (no relation to John) Advanced Building Center David Kane Kane amp Johnson Architects and Jennifer Maas Kitchen Concepts
The game was hard played by all and while there were some contentious calls by the judges the Builder Family emerged victorious Thanks to all who participated
GIVE AWAYrsquoSGary Zander Honorary Member won a $30 Loop gift card given by the Post Bulletin
NEW MEMBERSThe following new members were in attendance Ole Olson GAF and Scott Phiefer All Craft Exteriors Welcome to the Association
Thank You
wwwRochesterAreaBuilderscom4 | June 2014
Join us at the RAB Golf Outing
WILLOW CREEK GOLF COURSE 1700 48th St SW
We listened to youThe 11 AM Shotgun start was a popular change last year so wersquore bringing it back It means yoursquore done earlier
so you can attend Thursdayrsquos on First your kidsrsquo sporting events or you can just go home and relax
Also returning this yearBREAK THE GLASSSponsored by Marvin WindowsIt time for you to make your Big Break Wersquove got a new contest on the driving range this year where you can relive your childhood days of playing golf in the backyard But this time if you break a window you wonrsquot get grounded and you might just win big
WIN A NEW CARSponsored by Clements Chevrolet Cadillac SubaruThis one speaks for itself Get a hole in one on 6 and you win
Golf is SOLD OUT but you can still join us for the social hour Tickets are just $15 each
Rochester Area Builders Inc is excited to be bringing you our annual golf outing Willow Creek Golf Course will be hosting the event which includes
lunch an 18 hole round on Willow Creek and a ldquo19th Holerdquo appetizer reception following the round Our format is a four-person scramble - you can
form your own four-some or we will assign you to a team We hope yoursquoll join us for a great day of Golf Networking and Fun
Hours1000 AM Registration Starts - Lunch provided by Think Mutual Bank -1100 AM Shotgun Start 430 PM 19th Hole - Appetizers and Social Time500 PM Announcements and Prizes
Thursday June 5 2014
Presented By
WwwRochesterAreaBuilderscomJune 2014 | 5
President Kevin Worden Rochester Area Habitat for HumanityVice President John Eckerman The Boldt Company
Secretary Lindsey Rippentrop Olmsted National Bank
Treasurer Carla Kilpatrick Home Federal Savings Bank
Past President Jean DeWitz DeWitz Home Builders Inc
Directors Karen Blissenbach Design Studio B Christy Buchan Energy Products amp Design Inc
Delbert Feenstra Knutson Construction Services Rob Jones Superior Mechanical Levi Kaiser Alvin E Benike Inc Bruce Laufenburger First General Services of SE MN Sam Peyton Kingrsquos Flooring LLC Brian Shehan Weis Builders Inc
Builders Exchange Council Representatives
JJ Webster Kraus-Anderson Construction Company Chair Jake Schleusner Merit Contracting Inc Vice Chair Tony Wintheiser Hentges Glass Past Chair
Commercial Builders Council Chris Terry Knutson Construction Services Chair Nick Leimer Kraus-Anderson Construction Company Vice Chair
Development Council Chair John Sipple Rochester Area Appraisals LLC
Remodelers Council Chair Sam Peyton Kingrsquos Flooring LLC
National Life Directors Joe Weis Weis Builders Inc
National Directors Steve Buss Cornerstone Builders amp Real Estate Inc Mike Coats MEC Construction Inc David Kane Kane amp Johnson Architects Inc Rep Rory Lenton Minnesota Energy Resources Corp
State Directors Jim Gander Superior Mechanical John McGuine Schoeppner Inc Rep Mike Paradise Bigelow Homes David Pederson Wendland Utz Dan Severson Dan Severson Builders Inc
Executive Director John Eischen
JEischenRochesterAreaBuilderscom
Staff Audra Bolduan
ABolduanRochesterAreaBuilderscom Marketing Builders Exchange Trustees
Matt Limoges MatthewLRochesterAreaBuilderscom Government Affairs Commercial Builders Council Development Council Building Safety Advisory Group Public Works Advisory Group Community Relations Green Building Marketing
Sharill Mueller SMuellerRochesterAreaBuilderscom Home Show Showcase Committee
Rebekah Nielsen RNielsenRochesterAreaBuilderscom Ambassadors Education Membership
Program Spike Club Remodelers Council -Executive-Home Tour-
Ryan Kling-Punt RPuntRochesterAreaBuilderscom Golf Outing Sporting Clays Directory Newsletter E-News Update
Join us at the JuneSummer Networking Night
Tuesday June 24th at the Valor Mechanical Inc
416 S BroadwayHours 500 pm - 700 pm
OUR HISTORYValor Mechanical was founded in June 2006 by Ty Bestor The dream vision and the current evolution of Valor was implemented in September 2012 Ty has over 35 years of experience in the mechanical construction industry Ty was born and raised in a small rural community in southeast Minnesota which prompted his desire to own and operate a company with the same moral values integrity and trust found in his small-town community
WHO WE AREValor Mechanical is a full-service commercial mechanical contractor based out of Harmony MN with a second location in Rochester MN Valor operates on these principle core values integrity trust and strong relationships all with a high level of customer service These values were instilled by Ty Bestor
CEO and all who work at Valor share in these values and in Tyrsquos business passion
WHAT WE DOThe experienced team at Valor Mechanical listens to the customersrsquo needs and objectives then creates a customized solution Valor creates cost-efficient solutions by allowing our team to approach every project from an engineering-first perspective Before finalizing mechanical numbers we explore every issue and concern with the project team The main constants among our technicians engineers and trained craftsmen is experience dedication and their commitment to Valorrsquos core values
Hosted By
wwwRochesterAreaBuilderscom6 | June 2014
What Green Building Expomdashan event for the
public
When Saturday September 20 2014
Where Cascade Meadow Wetlands and
Environmental Science Center
Time 9amndash 3pm
Who You If your business has anything to do with making a home more
energy efficient more sustainable sign up for a booth and we will review
Areas we are looking for
Buildings Health and Wellness Site Development Landscaping and Drain-
age
Cost $200mdashfor a measly $200 you get a 6 foot booth and countless mem-
bers of the public to talk to about your business
$50 to present The com-
topics to be presented
Signature Event Sponsors
EXHIBITORS NEEDED
GREENbuildingEXPO
GREENbuildingEXPO
C
M
Y
CM
MY
CY
CMY
K
RFP-pdf 5222014 13300 PM
WwwRochesterAreaBuilderscomJune 2014 | 7
Business
Contact Name
Nature of Business
Payment Method (Please Circle) Check Credit Card
Credit Card Number Security Code
Yes No
Signature Event Sponsors
faxing it to Rochester Area Builders at 507-282-6351
If you would like to mail in the form please mail it to
Rochester Area Builders
108 Elton Hills Ln NW
Rochester MN 55901
Please note that Rochester Area Builders will
ability of your business to the Green Building
respond to you by August 22 2014 with the
final decision Space is limited so sign up
fast
GREENbuildingEXPO
GREENbuildingEXPO
C
M
Y
CM
MY
CY
CMY
K
RFP - Registration-pdf 5222014 13237 PM
wwwRochesterAreaBuilderscom8 | June 2014
April GMMAssociation Scrapbook
WwwRochesterAreaBuilderscomJune 2014 | 9
Association ScrapbookMay Networking Night
wwwRochesterAreaBuilderscom10 | June 2014
Studs Struts amp StilettosAssociation Scrapbook
WwwRochesterAreaBuilderscomJune 2014 | 11
Association Scrapbook
Click here to see the entire gallery of photos including all the designs on our Facebook Page
Studs Struts amp Stilettos
wwwRochesterAreaBuilderscom12 | June 2014
To Session or not to Session
That is the question that Matt answers
in this monthrsquos
Itrsquos time for another installment of ldquoHey Matt whatrsquos up with thatrdquo This weekrsquos topic is the recently closed MN Legislative Session
ldquoHey Matt I heard that this Legislative Session was being called an lsquoUnsessionrsquo Whatrsquos up with thatrdquo
Whew what a fast and busy legislative session the ldquounsessionrdquo turned out to be The Governor earlier this year requested that lawmakers take this session to focus on two main things the Bonding Bill and cleaning up Minnesotarsquos Laws Because the Governor asked this of lawmakers the session was dubbed the ldquounsessionrdquo While lawmakers did clean up a lot of language in existing laws and repealed unnecessary ones they were busy making strides in a lot of other areas as well Passing laws on topics as far ranging as Bullying and Legalized Medical Marijuana this session was anything BUT the ldquounsessionrdquo
Two things I wanted to cover Fire Sprinklers and the Bonding Bill First the Bonding Bill The Bonding Bill is basically a giant construction bill giving communities money for projects that they wouldnrsquot be able to afford without state assistance The reason it is called the ldquoBonding Billrdquo is because the state borrows money for these projects This includes projects like the Mayo Civic Center rehabilitation and expansion This year lawmakers passed over a $1 Billion bonding bill and construction package Rochester
received $35 Million in funding for the Mayo Civic Center This was the biggest single project in the Bonding Bill and kudos to the city for all their hard work on finally getting this included in the Bonding Bill
Fire Sprinklers We found ourselves at the legislature again trying to prevent a single family home indoor fire sprinkler mandate This has been an uphill battle from the beginning The Governor has twice vetoed stand-alone legislation that was passed with bipartisan support We received a lack-luster ruling from our administrative law judge hearing in February All the odds were against us so it was a bit of a miracle that we became the political bargaining chip that we did Here is how it happened
Senator Senjem had previously unsuccessfully tried to add an amendment to the Bonding Bill regarding the prohibition of a fire sprinkler mandate However he was able to craft an amendment that was added to the language in the Senatersquos version of the Bonding Bill This is important because in a Bonding Bill the Governor has the power to what is called ldquoline-item vetordquo certain projects This means that the Governor can take the Bonding Bill and scratch certain projects from it after the legislature has passed it through both houses of the legislature Rochester should remember when Governor Pawlenty line-itemed the Mayo Civic Center funding from the 2010 bonding bill But I digress While the Governor is able to veto certain projects the
WwwRochesterAreaBuilderscomJune 2014 | 13
Governor does not have the power to line-item veto policy in the Bonding bill This means that if the Governor wanted to prevent the legislature from passing a prohibition on the mandate of fire sprinklers in single family homes he would have to veto the ENTIRE $1 BILLION BONDING BILL Politically we thought there was no way he would do something like that especially in an election year so that is why what Senator Senjem did was so important for us
Now for what happened next The House and the Senate both have to pass versions of a Bonding Bill and then it usually has to be resolved in what is called the conference committee It was apparent the House of Representatives was not going to include the fire sprinkler language Senator Senjem had gotten inserted into the Senate version Then the Governor held a press conference the sole purpose of which was to say that he would veto the Bonding Bill if it included any language regarding the prohibition of a fire sprinkler mandate in single family homes This was the moment we had been waiting for Money cannot buy the kind of press you get from a Governor threatening to veto a $1 Billion bonding bill All of a sudden the public wanted to know what was going on with these fire sprinklers After years of fighting the conversation had reached the public That is the good news The bad news is that because the legislature was operating under a tight schedule the DFL leadership of the Senate and the House negotiated a bonding bill that did
not include language regarding fire sprinklers So we were officially out of the bonding bill
While it is disappointing we didnrsquot get the result we wanted we got a lot of free press out of the situation which is invaluable when trying to get the public on your side of an issue The final date when fire sprinklers will be required in single family homes larger than 4500 sq ft is unknown but it appears it will be sometime in early 2015
What a session the ldquounsessionrdquo turned out to be
If you have any questions ideas or anything at all you want to talk to me about give me a call Or email
Matt
Hey Matt I heard that this Legislative Session was being called an ldquoUnsessionrdquo Whatrsquos up with that
wwwRochesterAreaBuilderscom14 | June 2014
Erosion and Sediment Control at Residential Construction SitesSpring is here and so is the rain As you move into construction mode this year be sure your site adequately provides erosion and sediment control (ESC) ndash no matter how big or small the storm Planning and good practices are essential for keeping sediment on site and preventing enforcement actions Follow the steps below to be prepared for the next rain
bull Before breaking ground review the approved Grading Plan for your site to verify grades on your lot and on adjacent properties (if you have questions on the Grading Plan please contact us)
bull Review the approved grading plan for your site and the adjacent properties to be sure that drainage easements ditches slopes and conveyance areas have correct grades and positive drainage
bull Preserve existing vegetation and topsoil on-site preserving existing vegetation is especially important around the perimeter By preserving existing vegetation this may save you from installing additional perimeter sediment control measures and saving topsoil can save you and the homeowner money
bull Insure that perimeter and internal ESC BMPs are properly anchored and functioning Perimeter sediment control measures are required at all downslope locations on-site
bull Provide stabilized vehicle entrances and exits at your site Options to prevent track-out of sediment onto streets include rock entrances wood chips and mud mats Be certain that your subcontractors are aware of and use the designated access points
bull All area catch basins should have appropriate inlet protection installed in order to prevent soil and debris from entering the storm sewer and draining to our receiving waters Sediment must be regularly removed from inlet protection to prevent street flooding
bull Develop and utilize a concrete washout management plan and facility or return concrete
POOR ESC
WwwRochesterAreaBuilderscomJune 2014 | 15
The MPCA recently informed the City of Rochester that no comments were received on the Cityrsquos new storm water permit application during the public notice period which ended May 1st Therefore MPCA will extend permit coverage to the City under the August 2013 permit and the Cityrsquos effective date will be Thursday May 8th
Under the new 2013 permit the City must continue the permit activities already in place and meet the added requirements The new tasks that the City must address before May 7 2015 include
bull Completing a storm water management plan updatebull Preparing a new storm water ordinance that incorporates the new permit requirementsbull Updating all standard operating procedures and preparing new enforcement response proceduresbull Assessing the Cityrsquos status in meeting Total Maximum Daily Load Waste Load Allocationsbull Developing a pond effectiveness assessment planbull Enhancing the City facilities and operations inventorybull Creating an employee and business technical education program
Of particular interest to RAB members will be the new ordinance The City expects to have a draft ready for public review by October Any questions about the new permit can be directed to Barb Huberty at bhubertyrochestermngov
UPDATE New State Storm Water Permit
washout to the concrete vendor No liquid or solid concrete waste from washout operations can be in contact with the ground
bull Keep a clean construction site One of the biggest complaints the City receives about construction sites is the construction debris and litter Create and use a garbage corral or dumpster and empty them before they overflow Ask contractors to compact their debris so it doesnrsquot blow out of the container on windy days
bull Place topsoil and vegetate all exposed soil areas as soon as fine grading is complete The City of Rochester standards require a minimum of 4rdquo of topsoil on disturbed areas donrsquot substitute subsoil for topsoil
bull Learn more about useful storm water management practices and state construction storm water permit requirements at the MPCA website wwwpcastatemnuswaterstormwater
Rochester residents want good water quality and quality construction Improper ESC on construction sites has a direct negative impact on our waterways Be proactive and take the time to properly inspect and maintain your ESC best management practices to stabilize your construction site and prevent unintentional water pollution
For more information about this topic please contact Mike Kraszewski (328-2431) or Kevin Kuisle (328-2457) at the Rochester Public Works Department
GOOD ESC
wwwRochesterAreaBuilderscom16 | June 2014
WwwRochesterAreaBuilderscomJune 2014 | 17
Committee UpdatesNOMINATING COMMITTEECHAIRPERSON John Eckerman Boldt Construction
The Nominating Committee will be meeting soon to discuss nominations for the 2015 Board of Directors as well as chairpersons for our many committees and councils If you would like to recommend a member for a position or if you would like to recommend yourself please call John at the office 282-7698 We are always looking for new people to be involved in the management of our association
SHOWCASE COMMITTEECHAIRPERSON Brandon Vagt XRG Concepts
The Fall Showcase of Homes is scheduled for September 13th 14th and 20th 21st Have you started building a home to enter in the Showcase Itrsquos a wonderful opportunity to have your home seen by thousands of potential customers Information packets have been mailed to residential builders and the first of three deadlines is June 19th
Committee ChairpersonsAMBASSADORSGreg Hird First Alliance Credit UnionAWARDSTBABUILDING MAINTENANCETJ Schutz Advanced Building Center IncBUILDING SAFETY ADVISORYMickey Elias Elias Construction LLCCOMMUNITY RELATIONSTony Kunz Hillerrsquos Flooring AmericaDISPUTE RESOLUTIONJohn Kuntz Kuntz Electric IncEDUCATIONVacantEXECUTIVEKevin Worden Rochester Area Habitat for HumanityFASHION SHOWKaren Blissenbach Design Studio BFINANCECarla Kilpatrick Home Federal Savings BankGOLF OUTINGLindsey Rippentrop Olmsted National BankGOVERNMENT AFFAIRSJohn Eckerman The Boldt CompanyGREEN BUILDINGKelly OrsquoMarro XRG Concepts LLCHOME SHOW ndash 2013Jeff Kalmes Hillers Flooring AmericaMARKETINGRob Easthouse Electrical Solutions amp ServiceMEMBERSHIP amp RETENTIONDan Bochman Kruse LumberNOMINATINGKerk Johnson Schwickertrsquos Tecta America LLC PERSONNELKevin Worden Rochester Area Habitat for HumanityPROGRAMDan Plizga Weis Builders IncPUBLIC WORKS ADVISORYJeff Broberg McGhie amp Betts - a Division of WSB amp Associates IncSHOWCASE OF HOMESBrandon Vagt XRG Concepts LLCSPIKE CLUBJay Burke Heartwood Homes of Rochester IncSPORTING CLAYSJames Coyle Kane amp Johnson Architects Inc
CouncilsBER EXECUTIVE COMMITTEEJJ Webster Kraus-Anderson Construction CompanyCBC EXECUTIVE COMMITTEEChris Terry Knutson Construction ServicesDEVELOPMENT COUNCILJohn Sipple Rochester Area Appraisals LLCREMODELERS EXECUTIVE COMMITTEESam Peyton Kingrsquos Flooring LLCREMODELERS TOURKaren Blissenbach Design Studio B
wwwRochesterAreaBuilderscom18 | June 2014
May MeetingThank you to Kingrsquos Flooring for sponsor-
ing the May Meeting held at the RAB Office We had a nice turnout and
enjoyed the beautiful weather as we sat outside and networked and enjoyed the lunch that Kingrsquos Flooring provided We
hope to see you all again in June
construction fashion expose
WwwRochesterAreaBuilderscomJune 2014 | 19
Members2014 Commercial Builders Council107 Members as of 123113AB Systems IncAccord Electric IncAdvanced DisposalAlpha Video amp AudioAssociated BankAlvin E Benike IncThe Blue Book
of Building amp Construction
The Boldt CompanyBraun Intertec
CorporationBriese Iron Works IncBrock White CompanyCO Brown AgencyCambriaCarpet OneCentury Painting amp
Decorating LLCChosen Valley Testing
IncConstruction
Partnership IncCounselor Realty of
Rochester IncCounty Materials
CorporationCRW architecture +
design group incCustom AlarmCustom
Communications IncDunlap amp SeegerEastwood Bankeci llcElcor ConstructionEnergy Panel StructuresEnergy Products amp
Design IncEnventisExpert Insulation IncFerguson EnterprisesFriedrich Construction
IncGerhardsGoodin CompanyHaley Comfort Systems
(Authorized FireSide Dealer)
WL Hall CompanyHGA Architects and
EngineersHDR ArchitectureHeartman InsuranceHillerrsquos Flooring AmericaHiMec at HomeHome Federal Savings
BankHunt Electric
CorporationKampM Glass CompanyKampS Heating AC
Plumbing amp ElectricalKane amp Johnson
Architects IncKey Builders IncKnutson Construction
ServicesKomitt Concrete IncKraus-Anderson
Construction CompanyKreofsky Building
SuppliesKruse LumberKuntz Electric IncKwik Trip IncLeitzen Concrete
Products IncEd Lunn Construction
IncMarvin Windows amp
DoorsMavo Systems IncMcGhie amp Betts Inc
McGough ConstructionMEC Construction IncMEP AssociatesMerchants BankMerit Contracting IncMinnesota Energy
Resources CorporationMinnwest BankNickelson Painting IncOlmsted National BankOnSitePalmer Soderberg IncPella Windows amp DoorsPeoplersquos Energy
CooperativePompeii Painting IncPrehn Building Sales
IncPremier Bank RochesterProBuild Company LLCReliable Contractors
Inc Rochester Area
Appraisals LLCRochester Area
Economic Development Inc
Rochester Public Utilities
Rochester Ready Mix Concrete Co
Rochester Sign Service Inc
Rochester Title amp Escrow Company Inc
Ryan Electric of Rochester Inc
Schoeppner IncSchwab LLCSchwickertrsquos Tecta
America LLCStantecStructural Design
Group IncSuperior MechanicalTamarack Materials of
Rochester IncThink Mutual BankTonna Mechanical IncTSP Architects amp
EngineersTW Construction
Solutions LLCUnited RentalsThe Urban StudioUS BankValor Mechanical IncVeit CompaniesVertical Limit
ConstructionViking Automatic
Sprinkler CompanyViking Electric SupplyWeis Builders IncWells Fargo Bank
Minnesota NAWendland UtzWidseth Smith NoltingYaggy Colby Associates
BUILDERS COUNCILCOMMERCIAL
a d i v i s i o n o f R o c h e s t e r A r e a B u i l d e r s I n c
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
June MeetingCome to the June meeting and hear an in depth discussion of the Comprehensive Housing Needs Assessment for Olmsted County conducted by Maxfield Research Inc The study projects housing demand for submarkets in the Olmsted County Market Area from 2013 through 2030 It also provides recommendations on the amount and types of housing that could be built to satisfy demand from current and future residents over the next decade and beyond
June MEETINGDATE Wednesday June 4th 2014TIME Registration amp Networking at 700 AM Program at 730 AMPLACE Ramada Hotel amp Conference CenterPROGRAM Olmsted County Comprehensive Housing Needs AssessmentSPEAKERS Matt Mullins Vice President Maxfield Research Inc
wwwRochesterAreaBuilderscom20 | June 2014
2014 VALUATION 2013 VALUATION
New Residential Single Family Dwelling 25 5531411 39 9046592
Townhome Dwelling 0 0 0 0
Two-Family Houses 0 0 0 0
Multi-Family Bldgs 0 0 0 0
Manufactured Home 0 0 0 0 Existing Residential Deck Addition 19 107504 11 39350
Room Addition 3 278763 4 569729
Porch Additions 0 0 1 15925
Other Additions 0 0 0 0
Basement Finish 29 342255 27 294745
Alterations 50 516115 36 341383
Multi-Family Addition 0 0 0 0
Multi-Family Alterations 2 113000 5 40095 New Commercial Assembly (Church) 0 0 0 0
Assembly (General) 0 0 0 0
Assembly (RestaurantBar) 1 1561000 1 198000
Business 0 0 1 300000
Education 0 0 0 0
FactoryIndustrial 0 0 0 0
Institution 0 0 0 0
Mercantile 0 0 0 0
Miscelaneous 0 0 0 0
Utility (General) 1 130000 0 0
Residential (CareAssisted Living) 0 0 0 0
Storage (General) 1 45000 1 56000
Storage (Warehouse) 0 0 0 0 Existing CommercialAddition 8 5812413 1 3669000
Alterations 34 5984762 32 5633723
Structural Shell 0 0 0 0
ldquoWhite Boxrdquo 1 15000 0 0
Interior Demolition Only 3 48500 1 39775
Other Phased Permits 0 0 0 0
Other ConstructionBusiness Signs 15 106565 23 175223
Advertising Sign 1 18000 0 0
Footings amp Foundations 2 220000 0 0
Demolition 3 0
Rochester Building Permits April 2014
January 33 39 27 20 3 13 3 6 19 11
February 31 31 19 13 1 8 8 20 15 14
March 59 37 30 29 16 27 24 32 29 28
April 58 58 44 27 29 25 19 29 39 25
TOTAL 181 165 122 89 49 73 54 87 102 78
May 77 69 50 30 33 20 14 22 27
June 81 59 43 36 36 12 26 32 33
July 58 36 60 23 21 23 8 39 39
August 69 36 43 28 26 15 18 38 21
September 65 31 33 28 33 10 19 22 23
October 71 49 34 19 31 14 16 23 34
November 40 38 23 26 30 21 20 22 26
December 60 23 11 16 15 12 16 14 22
TOTAL 702 506 417 302 274 200 191 299 326 78
Single Family Homes
Year To Date Statistics 2014 2013 NO VALUATION NO VALUATION
Building Permits Issued to Date 617 99659586 576 55353067
Single Family Dwelling 78 19118519 102 23271991
Multi-Family Buildings Total Units 39 1 3702052 0 0
Trade Permits Issued to Date 2163 22421315 2077 19001370
Electrical 719 10304793 649 10630028
Electrical (Temp Service) 65 14350 79 23350
Mechanical 570 4962388 543 4383007
Gas Piping 135 348756 141 120700
Fireplace 113 303426 117 283801
Hydronic System 57 1939043 40 736592
Plumbing 504 4548559 508 2823892
Total Permits YTD 2780 122180901 2653 74354437
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
WwwRochesterAreaBuilderscomJune 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
MARCH 2014
New Residential NUMBER VALUATION
Single Family Detached 7 1027450
Existing Residential
Basement Finish 5 81500
Alterations 1 $500
ByronBuilding Permits
MARCH 2014
New Residential NUMBER VALUATION
Single Family 3 455000
Existing Residential NUMBER VALUATION
Heating 1 3600
Basement Finish 1 20000
Pine IslandBuilding Permits
wwwRochesterAreaBuilderscom22 | June 2014
Much has recently been made of the notion that China has enough serious structural problems with its economy that chances are good it will experience a ldquohard landingrdquo defined as economic growth quickly slowing from 75 today to the low single digits This slowdown would weaken commodity prices hurting developing nations and reduce Chinese imports of high-quality finished goods from developed nations also hurting the US Europe and Japan While the Chinese economy has problems many are chronic and I believe the government has sufficient resources to manage the acute ones and avoid a hard landing
The key problems the Chinese economy suffers from are threefold a profound overreliance on large trade surpluses massive government overinvestment in infrastructure and a weak financial system that has resulted in both bad loans made by irresponsible local and regional governments and a highly leveraged and lightly regulated shadow banking system (sound familiar) that may well implode
The first problem is fading away After running trade surpluses in the $45 billionyear range through 2003 they skyrocketed to $400 billionyear by the end of 2008 However that highpoint coincided with the Great Recession which resulted in a huge contraction in trade and simultaneously an effort by many nations to boost exports to help their domestic economies As a result Chinese trade surpluses have averaged about $300 billionyear (about two-thirds of that with the US) since early 2009 and show no discernable upward trend Moreover as the Chinese economy is about twice as big today as it was in 2005 the economic impact of the now smaller trade surpluses on the overall economy is much smaller
The second problem of roads to nowhere massive over building of plant leading to ruinous excess capacity along with the construction of uninhabited ghost towns is being rectified And rectified they can be because these destructive outcomes are the direct result of policies pursued by the central government that are now being overhauled GDP growth targets are being reduced artificially low interest rates earned by savers are likely to rise in the near future and the currency which has been profoundly undervalued is slowly appreciating Collectively these policies will curb wasteful overinvestment and slowly replace it with increased domestic consumption and reduced exports
As for the substantial dodgy debt on the books of local and regional governments and shadow banks due to weakening housing prices and raw land values that act as collateral for many loans here the problem is serious That said Chinarsquos debt is about 25 of GDP giving the central government ample room to borrow should it be necessary Moreover the central government is beginning to force local and regional governments to sell some of the $7 trillion in assets they own in an effort to shore up their financial condition
Moreover with $4 trillion in foreign reserves and the ability to weaken the Chinese currency at will to boost exports China has tools other nations donrsquot have Lastly expect Beijing to re-stimulate sagging housing markets by relaxing home-purchase requirements and local governments to augment this policy by giving residency benefits to out-of-towners to further boost demand Combining the above with looser monetary policy makes me think that those making key policy decisions the brightest minds in the nation will see to it that China comes through this relatively unscathed
Beijing Balancing 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
WwwRochesterAreaBuilderscomJune 2014 | 23
NONE
MEMBERSHIPS PENDINGNONE
The firms listed below have applied for membership in the Rochester Area Builders Any member who objects to admission of any applicant shall notify the RAB Board of Directors in writing of the objection before
the next Board of Directors meeting
MEMBERSHIP TOTAL 453RETENTION RATE 929
As of 43014
WE WELCOME THE FOLLOWING NEW MEMBERS IN APRIL
Membership Information
Membership Renewals as of 43014
One Year
Altra Federal Credit Union 2013JE Dunn Construction 2013The Kitchen Design Studio 2013West Bank 2013Xcel Energy 2013
Two to Four Years
Elias Construction LLC 2011Lacina Siding amp Windows Inc 2011Solar Connection Inc 2011Chladek Construction LLC 2010MEP Associates 2010Rochester Asphalt Inc 2010Wildwood Sports Bar and Grill 2010
Five to Nine Years
Beckleyrsquos Office Products 2009Beetles Bar amp Grill Inc 2008Data-Smart Computers Inc 2008HDR Architecture 2008Legends Concrete Inc 2007RCON Homes Inc 2007Michael Jack LLC 2006WA Insurance 2006Anderson Construction 2005
Ten to 19 Years
Scott Berberich Construction LLC 2004First General Services of SE MN 2003Todd Eidem Construction Inc 2002Ames Construction Inc 2001Expert Insulation Inc 2001HiMEC at Home 2001Habitat for Humanity - Rochester Area 2000Home Improvement Professionals Inc 1999
25 Years amp More
Countryside Builders LLC 1989Radcliffe Homes amp Remodeling 1988Thomas Tool amp Supply 1987Kreofsky Building Supplies 1985Tile Superstore amp More 1985Barrier Free Access Inc 1984RampM Development Company 1970
NEW APPLICANTS
FAT WILLYrsquoS BAR amp GRILL
4325 Maine Ave SERochester MN 55904Phone 507- 206-4301
Contact Bill HendersonAssociate Member
RestaurantBarSponsored by
David Kane Kane amp Johnson Architects Inc
KAHLER HOSPITALITY GROUP
20 2nd Avenue SWRochester MN 55902Phone 507- 280-6200
Contact Marnie GlynnAssociate Member
HotelSponsored byNone Listed
MANUFACTURERrsquoS BANK amp TRUST
2020 2nd Street SWRochester MN 55902Phone 507- 226-8460
Contact Thomas HeepkeAssociate Member
BankSponsored by
Sue Hanson Rochester Title amp Escrow Company Inc
SAWYER CONSTRUCTION SERVICES INC9472 65th Street NE
Elgin MN 55932Phone 507-272-1740Contact Marv Sawyer
Associate MemberLawn CareTree Service
Sponsored byChristy Buchan Energy Products amp Design Inc
wwwRochesterAreaBuilderscom24 | June 2014
Put your membershipto work nowMoney-saving discounts that benefit yourbusiness your employees and your family
wwwnahborgMA
National Association of Home Builders
R
wwwRochesterAreaBuilderscom2 | June 2014
WErsquoRE HERE TO HELP Natural gas is a great energy
value Xcel Energy can help you with all of your energy-related
building needs including natural gas and electric We even off er
rebates for qualifying natural gas appliances Contact us today
and fi nd out how we can help you
Visit xcelenergycomEnergyPartners today
call 1-800-628-2121 or fax 1-800-628-2521
ENERGYVALUEBESTHO
OK UP
with the
copy 2013 Xcel Energy Inc
xcelenergycomEnergyPartners
13-XCL-00255-B_MNB_HookUp(Combo)_73125x475_4c_LOindd 1 5613 321 PM
A special offer formembers onlyRegister now and save 2 on your Lowersquos Accounts Receivable
purchases Plus get free delivery on purchases of $500 or moredagger
To register visit LowesForProscomNAHB or call 877-435-2440
Offer is not automatic See store for detailsOffer valid now through 12312014 Cannot be combined with any other statement discount To be eligible for the 2 discount you must register your NAHB membership by 12312014 and make a purchase with your Lowersquos Accounts Receivable by 12312014 Allow one to two complete billing cycles for your registration to be processed and for your discount to appear on your billing statement Offer and discount provided by Lowersquos and not GE Capital Retail Bank Excludes Lowersquos Business Account Card Lowersquos Consumer Credit Card Lowersquos Visa Accounts Lowersquos Business Rewards from American Express Card and all Lowersquos Canada Credit projects Offer not valid on purchases made prior to registering NAHB membership at LowesForProscom Call 877-435-2440 for questions about this program All purchases subject to credit approval daggerStandard delivery rules apply copy2014 Lowersquos LOWErsquoS Gable Mansard Design are registered trademarks of LF LLC
Lowes_2014 NAHB-HALFPAGEindd 1 112613 1222 PM
WwwRochesterAreaBuilderscomJune 2014 | 3
Index News from the President 3Thank Yous 3RAB Golf Outing 4June Networking Night 5Green Building Expo 6-7Association Scrapbook 8-11Hey Matt Whatrsquos up with that 12-13Public Works Dept News 14-15Committee 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 PresidentMay 22 2014 ldquoVan Halen requests that the
brown MampMrsquos be removedrdquo
Fellow RAB Members ldquoback in the dayrdquo did you ever hear about this peculiar request made by the rock band to their concert promoters at each arena Urban tales abounded- all completely false- about the band trashing dressing rooms if they found the despised brown MampMrsquos in the catering area At the time this quirky demand was attributed to the egotistical excesses of a group whose ascent to fame had gone to their heads
Much like the issues that RAB works on though- from fire sprinklers to historic preservation- jumping to a sweeping conclusion based on emotion hype or some of the information can often be more misleading than forming an opinion based
on no information at all
Herersquos the real story about the MampMrsquos
Van Halen was an early pioneer in bringing large-arena rock shows to medium-sized venues Doing this successfully though required that each cityrsquos local stage sound equipment and main lights be placed and prepared with absolute precision according to the bandrsquos specific directions There was no margin for error In communicating these instructions with promoters and arenas around the country in very detailed contracts a simple litmus test was written into the later pages of this lengthy document no brown MampMrsquos in the candy dish
As David Lee Roth the bandrsquos on-again off-again front man would later admit the band could truly have not cared less about brown MampMrsquos They did care greatly though about putting on an awesome show every night for fans who paid their hard-earned money to come and see them One look at the candy dish when they arrived in a new city and were being shown the backstage area showed them all that they needed to know about their workload for that day If the candy dish was free of brown MampMrsquos the band knew with near certainty that every other detail spelled out in the contract had also been attended to The presence of brown MampMrsquos in the dish though meant that all elements specified to execute their high-impact concert needed to be checked and rechecked before showtime Accuracy could no longer be taken for granted
As a few high-impact issues for RAB seem to be coming to a peak simultaneously much has been said and written about our positions- unfortunately some of it based on less than the full facts Letrsquos do our best to make sure we knowhellipand share with good cheerhellipthe full story of our positions with those who ask Letrsquos also assume the best intentions in those who have a different opinion than us knowing that we may not have their full set of facts either
And while yoursquore at it feel free to pass the brown MampMrsquos
Enjoy the first rays of summer and have a great month
Kevin Worden2014 RAB President
April GMMThank you to Tradesman International for being the Social Hour Sponsor for our April General Membership Meeting held at the Events by Canadian Honker at the Ramada They were represented by Brad Hoffman Thank you to Carpet One for being the Desert Sponsor They were represented by Kathy Swygman
Our game night this year was Builder Feud hosted by ldquoRichard Dawsonrdquo aka John Eckerman Boldt Construction The ldquosetrdquo was design by RABrsquos own Ryan Kling-Punt The Builder Family was Mike Coats MEC Construction Kathy Einck Maplewood Homes John McGuine Schoeppner Construction Les Radcliffe Radcliffe Homes and Remodeling and Gary Zander Honorary Member The Association Family was Karen Blissenbach Design Studio B Brain Carlson Widseth Smith amp Nolting Wayne Eisen (no relation to John) Advanced Building Center David Kane Kane amp Johnson Architects and Jennifer Maas Kitchen Concepts
The game was hard played by all and while there were some contentious calls by the judges the Builder Family emerged victorious Thanks to all who participated
GIVE AWAYrsquoSGary Zander Honorary Member won a $30 Loop gift card given by the Post Bulletin
NEW MEMBERSThe following new members were in attendance Ole Olson GAF and Scott Phiefer All Craft Exteriors Welcome to the Association
Thank You
wwwRochesterAreaBuilderscom4 | June 2014
Join us at the RAB Golf Outing
WILLOW CREEK GOLF COURSE 1700 48th St SW
We listened to youThe 11 AM Shotgun start was a popular change last year so wersquore bringing it back It means yoursquore done earlier
so you can attend Thursdayrsquos on First your kidsrsquo sporting events or you can just go home and relax
Also returning this yearBREAK THE GLASSSponsored by Marvin WindowsIt time for you to make your Big Break Wersquove got a new contest on the driving range this year where you can relive your childhood days of playing golf in the backyard But this time if you break a window you wonrsquot get grounded and you might just win big
WIN A NEW CARSponsored by Clements Chevrolet Cadillac SubaruThis one speaks for itself Get a hole in one on 6 and you win
Golf is SOLD OUT but you can still join us for the social hour Tickets are just $15 each
Rochester Area Builders Inc is excited to be bringing you our annual golf outing Willow Creek Golf Course will be hosting the event which includes
lunch an 18 hole round on Willow Creek and a ldquo19th Holerdquo appetizer reception following the round Our format is a four-person scramble - you can
form your own four-some or we will assign you to a team We hope yoursquoll join us for a great day of Golf Networking and Fun
Hours1000 AM Registration Starts - Lunch provided by Think Mutual Bank -1100 AM Shotgun Start 430 PM 19th Hole - Appetizers and Social Time500 PM Announcements and Prizes
Thursday June 5 2014
Presented By
WwwRochesterAreaBuilderscomJune 2014 | 5
President Kevin Worden Rochester Area Habitat for HumanityVice President John Eckerman The Boldt Company
Secretary Lindsey Rippentrop Olmsted National Bank
Treasurer Carla Kilpatrick Home Federal Savings Bank
Past President Jean DeWitz DeWitz Home Builders Inc
Directors Karen Blissenbach Design Studio B Christy Buchan Energy Products amp Design Inc
Delbert Feenstra Knutson Construction Services Rob Jones Superior Mechanical Levi Kaiser Alvin E Benike Inc Bruce Laufenburger First General Services of SE MN Sam Peyton Kingrsquos Flooring LLC Brian Shehan Weis Builders Inc
Builders Exchange Council Representatives
JJ Webster Kraus-Anderson Construction Company Chair Jake Schleusner Merit Contracting Inc Vice Chair Tony Wintheiser Hentges Glass Past Chair
Commercial Builders Council Chris Terry Knutson Construction Services Chair Nick Leimer Kraus-Anderson Construction Company Vice Chair
Development Council Chair John Sipple Rochester Area Appraisals LLC
Remodelers Council Chair Sam Peyton Kingrsquos Flooring LLC
National Life Directors Joe Weis Weis Builders Inc
National Directors Steve Buss Cornerstone Builders amp Real Estate Inc Mike Coats MEC Construction Inc David Kane Kane amp Johnson Architects Inc Rep Rory Lenton Minnesota Energy Resources Corp
State Directors Jim Gander Superior Mechanical John McGuine Schoeppner Inc Rep Mike Paradise Bigelow Homes David Pederson Wendland Utz Dan Severson Dan Severson Builders Inc
Executive Director John Eischen
JEischenRochesterAreaBuilderscom
Staff Audra Bolduan
ABolduanRochesterAreaBuilderscom Marketing Builders Exchange Trustees
Matt Limoges MatthewLRochesterAreaBuilderscom Government Affairs Commercial Builders Council Development Council Building Safety Advisory Group Public Works Advisory Group Community Relations Green Building Marketing
Sharill Mueller SMuellerRochesterAreaBuilderscom Home Show Showcase Committee
Rebekah Nielsen RNielsenRochesterAreaBuilderscom Ambassadors Education Membership
Program Spike Club Remodelers Council -Executive-Home Tour-
Ryan Kling-Punt RPuntRochesterAreaBuilderscom Golf Outing Sporting Clays Directory Newsletter E-News Update
Join us at the JuneSummer Networking Night
Tuesday June 24th at the Valor Mechanical Inc
416 S BroadwayHours 500 pm - 700 pm
OUR HISTORYValor Mechanical was founded in June 2006 by Ty Bestor The dream vision and the current evolution of Valor was implemented in September 2012 Ty has over 35 years of experience in the mechanical construction industry Ty was born and raised in a small rural community in southeast Minnesota which prompted his desire to own and operate a company with the same moral values integrity and trust found in his small-town community
WHO WE AREValor Mechanical is a full-service commercial mechanical contractor based out of Harmony MN with a second location in Rochester MN Valor operates on these principle core values integrity trust and strong relationships all with a high level of customer service These values were instilled by Ty Bestor
CEO and all who work at Valor share in these values and in Tyrsquos business passion
WHAT WE DOThe experienced team at Valor Mechanical listens to the customersrsquo needs and objectives then creates a customized solution Valor creates cost-efficient solutions by allowing our team to approach every project from an engineering-first perspective Before finalizing mechanical numbers we explore every issue and concern with the project team The main constants among our technicians engineers and trained craftsmen is experience dedication and their commitment to Valorrsquos core values
Hosted By
wwwRochesterAreaBuilderscom6 | June 2014
What Green Building Expomdashan event for the
public
When Saturday September 20 2014
Where Cascade Meadow Wetlands and
Environmental Science Center
Time 9amndash 3pm
Who You If your business has anything to do with making a home more
energy efficient more sustainable sign up for a booth and we will review
Areas we are looking for
Buildings Health and Wellness Site Development Landscaping and Drain-
age
Cost $200mdashfor a measly $200 you get a 6 foot booth and countless mem-
bers of the public to talk to about your business
$50 to present The com-
topics to be presented
Signature Event Sponsors
EXHIBITORS NEEDED
GREENbuildingEXPO
GREENbuildingEXPO
C
M
Y
CM
MY
CY
CMY
K
RFP-pdf 5222014 13300 PM
WwwRochesterAreaBuilderscomJune 2014 | 7
Business
Contact Name
Nature of Business
Payment Method (Please Circle) Check Credit Card
Credit Card Number Security Code
Yes No
Signature Event Sponsors
faxing it to Rochester Area Builders at 507-282-6351
If you would like to mail in the form please mail it to
Rochester Area Builders
108 Elton Hills Ln NW
Rochester MN 55901
Please note that Rochester Area Builders will
ability of your business to the Green Building
respond to you by August 22 2014 with the
final decision Space is limited so sign up
fast
GREENbuildingEXPO
GREENbuildingEXPO
C
M
Y
CM
MY
CY
CMY
K
RFP - Registration-pdf 5222014 13237 PM
wwwRochesterAreaBuilderscom8 | June 2014
April GMMAssociation Scrapbook
WwwRochesterAreaBuilderscomJune 2014 | 9
Association ScrapbookMay Networking Night
wwwRochesterAreaBuilderscom10 | June 2014
Studs Struts amp StilettosAssociation Scrapbook
WwwRochesterAreaBuilderscomJune 2014 | 11
Association Scrapbook
Click here to see the entire gallery of photos including all the designs on our Facebook Page
Studs Struts amp Stilettos
wwwRochesterAreaBuilderscom12 | June 2014
To Session or not to Session
That is the question that Matt answers
in this monthrsquos
Itrsquos time for another installment of ldquoHey Matt whatrsquos up with thatrdquo This weekrsquos topic is the recently closed MN Legislative Session
ldquoHey Matt I heard that this Legislative Session was being called an lsquoUnsessionrsquo Whatrsquos up with thatrdquo
Whew what a fast and busy legislative session the ldquounsessionrdquo turned out to be The Governor earlier this year requested that lawmakers take this session to focus on two main things the Bonding Bill and cleaning up Minnesotarsquos Laws Because the Governor asked this of lawmakers the session was dubbed the ldquounsessionrdquo While lawmakers did clean up a lot of language in existing laws and repealed unnecessary ones they were busy making strides in a lot of other areas as well Passing laws on topics as far ranging as Bullying and Legalized Medical Marijuana this session was anything BUT the ldquounsessionrdquo
Two things I wanted to cover Fire Sprinklers and the Bonding Bill First the Bonding Bill The Bonding Bill is basically a giant construction bill giving communities money for projects that they wouldnrsquot be able to afford without state assistance The reason it is called the ldquoBonding Billrdquo is because the state borrows money for these projects This includes projects like the Mayo Civic Center rehabilitation and expansion This year lawmakers passed over a $1 Billion bonding bill and construction package Rochester
received $35 Million in funding for the Mayo Civic Center This was the biggest single project in the Bonding Bill and kudos to the city for all their hard work on finally getting this included in the Bonding Bill
Fire Sprinklers We found ourselves at the legislature again trying to prevent a single family home indoor fire sprinkler mandate This has been an uphill battle from the beginning The Governor has twice vetoed stand-alone legislation that was passed with bipartisan support We received a lack-luster ruling from our administrative law judge hearing in February All the odds were against us so it was a bit of a miracle that we became the political bargaining chip that we did Here is how it happened
Senator Senjem had previously unsuccessfully tried to add an amendment to the Bonding Bill regarding the prohibition of a fire sprinkler mandate However he was able to craft an amendment that was added to the language in the Senatersquos version of the Bonding Bill This is important because in a Bonding Bill the Governor has the power to what is called ldquoline-item vetordquo certain projects This means that the Governor can take the Bonding Bill and scratch certain projects from it after the legislature has passed it through both houses of the legislature Rochester should remember when Governor Pawlenty line-itemed the Mayo Civic Center funding from the 2010 bonding bill But I digress While the Governor is able to veto certain projects the
WwwRochesterAreaBuilderscomJune 2014 | 13
Governor does not have the power to line-item veto policy in the Bonding bill This means that if the Governor wanted to prevent the legislature from passing a prohibition on the mandate of fire sprinklers in single family homes he would have to veto the ENTIRE $1 BILLION BONDING BILL Politically we thought there was no way he would do something like that especially in an election year so that is why what Senator Senjem did was so important for us
Now for what happened next The House and the Senate both have to pass versions of a Bonding Bill and then it usually has to be resolved in what is called the conference committee It was apparent the House of Representatives was not going to include the fire sprinkler language Senator Senjem had gotten inserted into the Senate version Then the Governor held a press conference the sole purpose of which was to say that he would veto the Bonding Bill if it included any language regarding the prohibition of a fire sprinkler mandate in single family homes This was the moment we had been waiting for Money cannot buy the kind of press you get from a Governor threatening to veto a $1 Billion bonding bill All of a sudden the public wanted to know what was going on with these fire sprinklers After years of fighting the conversation had reached the public That is the good news The bad news is that because the legislature was operating under a tight schedule the DFL leadership of the Senate and the House negotiated a bonding bill that did
not include language regarding fire sprinklers So we were officially out of the bonding bill
While it is disappointing we didnrsquot get the result we wanted we got a lot of free press out of the situation which is invaluable when trying to get the public on your side of an issue The final date when fire sprinklers will be required in single family homes larger than 4500 sq ft is unknown but it appears it will be sometime in early 2015
What a session the ldquounsessionrdquo turned out to be
If you have any questions ideas or anything at all you want to talk to me about give me a call Or email
Matt
Hey Matt I heard that this Legislative Session was being called an ldquoUnsessionrdquo Whatrsquos up with that
wwwRochesterAreaBuilderscom14 | June 2014
Erosion and Sediment Control at Residential Construction SitesSpring is here and so is the rain As you move into construction mode this year be sure your site adequately provides erosion and sediment control (ESC) ndash no matter how big or small the storm Planning and good practices are essential for keeping sediment on site and preventing enforcement actions Follow the steps below to be prepared for the next rain
bull Before breaking ground review the approved Grading Plan for your site to verify grades on your lot and on adjacent properties (if you have questions on the Grading Plan please contact us)
bull Review the approved grading plan for your site and the adjacent properties to be sure that drainage easements ditches slopes and conveyance areas have correct grades and positive drainage
bull Preserve existing vegetation and topsoil on-site preserving existing vegetation is especially important around the perimeter By preserving existing vegetation this may save you from installing additional perimeter sediment control measures and saving topsoil can save you and the homeowner money
bull Insure that perimeter and internal ESC BMPs are properly anchored and functioning Perimeter sediment control measures are required at all downslope locations on-site
bull Provide stabilized vehicle entrances and exits at your site Options to prevent track-out of sediment onto streets include rock entrances wood chips and mud mats Be certain that your subcontractors are aware of and use the designated access points
bull All area catch basins should have appropriate inlet protection installed in order to prevent soil and debris from entering the storm sewer and draining to our receiving waters Sediment must be regularly removed from inlet protection to prevent street flooding
bull Develop and utilize a concrete washout management plan and facility or return concrete
POOR ESC
WwwRochesterAreaBuilderscomJune 2014 | 15
The MPCA recently informed the City of Rochester that no comments were received on the Cityrsquos new storm water permit application during the public notice period which ended May 1st Therefore MPCA will extend permit coverage to the City under the August 2013 permit and the Cityrsquos effective date will be Thursday May 8th
Under the new 2013 permit the City must continue the permit activities already in place and meet the added requirements The new tasks that the City must address before May 7 2015 include
bull Completing a storm water management plan updatebull Preparing a new storm water ordinance that incorporates the new permit requirementsbull Updating all standard operating procedures and preparing new enforcement response proceduresbull Assessing the Cityrsquos status in meeting Total Maximum Daily Load Waste Load Allocationsbull Developing a pond effectiveness assessment planbull Enhancing the City facilities and operations inventorybull Creating an employee and business technical education program
Of particular interest to RAB members will be the new ordinance The City expects to have a draft ready for public review by October Any questions about the new permit can be directed to Barb Huberty at bhubertyrochestermngov
UPDATE New State Storm Water Permit
washout to the concrete vendor No liquid or solid concrete waste from washout operations can be in contact with the ground
bull Keep a clean construction site One of the biggest complaints the City receives about construction sites is the construction debris and litter Create and use a garbage corral or dumpster and empty them before they overflow Ask contractors to compact their debris so it doesnrsquot blow out of the container on windy days
bull Place topsoil and vegetate all exposed soil areas as soon as fine grading is complete The City of Rochester standards require a minimum of 4rdquo of topsoil on disturbed areas donrsquot substitute subsoil for topsoil
bull Learn more about useful storm water management practices and state construction storm water permit requirements at the MPCA website wwwpcastatemnuswaterstormwater
Rochester residents want good water quality and quality construction Improper ESC on construction sites has a direct negative impact on our waterways Be proactive and take the time to properly inspect and maintain your ESC best management practices to stabilize your construction site and prevent unintentional water pollution
For more information about this topic please contact Mike Kraszewski (328-2431) or Kevin Kuisle (328-2457) at the Rochester Public Works Department
GOOD ESC
wwwRochesterAreaBuilderscom16 | June 2014
WwwRochesterAreaBuilderscomJune 2014 | 17
Committee UpdatesNOMINATING COMMITTEECHAIRPERSON John Eckerman Boldt Construction
The Nominating Committee will be meeting soon to discuss nominations for the 2015 Board of Directors as well as chairpersons for our many committees and councils If you would like to recommend a member for a position or if you would like to recommend yourself please call John at the office 282-7698 We are always looking for new people to be involved in the management of our association
SHOWCASE COMMITTEECHAIRPERSON Brandon Vagt XRG Concepts
The Fall Showcase of Homes is scheduled for September 13th 14th and 20th 21st Have you started building a home to enter in the Showcase Itrsquos a wonderful opportunity to have your home seen by thousands of potential customers Information packets have been mailed to residential builders and the first of three deadlines is June 19th
Committee ChairpersonsAMBASSADORSGreg Hird First Alliance Credit UnionAWARDSTBABUILDING MAINTENANCETJ Schutz Advanced Building Center IncBUILDING SAFETY ADVISORYMickey Elias Elias Construction LLCCOMMUNITY RELATIONSTony Kunz Hillerrsquos Flooring AmericaDISPUTE RESOLUTIONJohn Kuntz Kuntz Electric IncEDUCATIONVacantEXECUTIVEKevin Worden Rochester Area Habitat for HumanityFASHION SHOWKaren Blissenbach Design Studio BFINANCECarla Kilpatrick Home Federal Savings BankGOLF OUTINGLindsey Rippentrop Olmsted National BankGOVERNMENT AFFAIRSJohn Eckerman The Boldt CompanyGREEN BUILDINGKelly OrsquoMarro XRG Concepts LLCHOME SHOW ndash 2013Jeff Kalmes Hillers Flooring AmericaMARKETINGRob Easthouse Electrical Solutions amp ServiceMEMBERSHIP amp RETENTIONDan Bochman Kruse LumberNOMINATINGKerk Johnson Schwickertrsquos Tecta America LLC PERSONNELKevin Worden Rochester Area Habitat for HumanityPROGRAMDan Plizga Weis Builders IncPUBLIC WORKS ADVISORYJeff Broberg McGhie amp Betts - a Division of WSB amp Associates IncSHOWCASE OF HOMESBrandon Vagt XRG Concepts LLCSPIKE CLUBJay Burke Heartwood Homes of Rochester IncSPORTING CLAYSJames Coyle Kane amp Johnson Architects Inc
CouncilsBER EXECUTIVE COMMITTEEJJ Webster Kraus-Anderson Construction CompanyCBC EXECUTIVE COMMITTEEChris Terry Knutson Construction ServicesDEVELOPMENT COUNCILJohn Sipple Rochester Area Appraisals LLCREMODELERS EXECUTIVE COMMITTEESam Peyton Kingrsquos Flooring LLCREMODELERS TOURKaren Blissenbach Design Studio B
wwwRochesterAreaBuilderscom18 | June 2014
May MeetingThank you to Kingrsquos Flooring for sponsor-
ing the May Meeting held at the RAB Office We had a nice turnout and
enjoyed the beautiful weather as we sat outside and networked and enjoyed the lunch that Kingrsquos Flooring provided We
hope to see you all again in June
construction fashion expose
WwwRochesterAreaBuilderscomJune 2014 | 19
Members2014 Commercial Builders Council107 Members as of 123113AB Systems IncAccord Electric IncAdvanced DisposalAlpha Video amp AudioAssociated BankAlvin E Benike IncThe Blue Book
of Building amp Construction
The Boldt CompanyBraun Intertec
CorporationBriese Iron Works IncBrock White CompanyCO Brown AgencyCambriaCarpet OneCentury Painting amp
Decorating LLCChosen Valley Testing
IncConstruction
Partnership IncCounselor Realty of
Rochester IncCounty Materials
CorporationCRW architecture +
design group incCustom AlarmCustom
Communications IncDunlap amp SeegerEastwood Bankeci llcElcor ConstructionEnergy Panel StructuresEnergy Products amp
Design IncEnventisExpert Insulation IncFerguson EnterprisesFriedrich Construction
IncGerhardsGoodin CompanyHaley Comfort Systems
(Authorized FireSide Dealer)
WL Hall CompanyHGA Architects and
EngineersHDR ArchitectureHeartman InsuranceHillerrsquos Flooring AmericaHiMec at HomeHome Federal Savings
BankHunt Electric
CorporationKampM Glass CompanyKampS Heating AC
Plumbing amp ElectricalKane amp Johnson
Architects IncKey Builders IncKnutson Construction
ServicesKomitt Concrete IncKraus-Anderson
Construction CompanyKreofsky Building
SuppliesKruse LumberKuntz Electric IncKwik Trip IncLeitzen Concrete
Products IncEd Lunn Construction
IncMarvin Windows amp
DoorsMavo Systems IncMcGhie amp Betts Inc
McGough ConstructionMEC Construction IncMEP AssociatesMerchants BankMerit Contracting IncMinnesota Energy
Resources CorporationMinnwest BankNickelson Painting IncOlmsted National BankOnSitePalmer Soderberg IncPella Windows amp DoorsPeoplersquos Energy
CooperativePompeii Painting IncPrehn Building Sales
IncPremier Bank RochesterProBuild Company LLCReliable Contractors
Inc Rochester Area
Appraisals LLCRochester Area
Economic Development Inc
Rochester Public Utilities
Rochester Ready Mix Concrete Co
Rochester Sign Service Inc
Rochester Title amp Escrow Company Inc
Ryan Electric of Rochester Inc
Schoeppner IncSchwab LLCSchwickertrsquos Tecta
America LLCStantecStructural Design
Group IncSuperior MechanicalTamarack Materials of
Rochester IncThink Mutual BankTonna Mechanical IncTSP Architects amp
EngineersTW Construction
Solutions LLCUnited RentalsThe Urban StudioUS BankValor Mechanical IncVeit CompaniesVertical Limit
ConstructionViking Automatic
Sprinkler CompanyViking Electric SupplyWeis Builders IncWells Fargo Bank
Minnesota NAWendland UtzWidseth Smith NoltingYaggy Colby Associates
BUILDERS COUNCILCOMMERCIAL
a d i v i s i o n o f R o c h e s t e r A r e a B u i l d e r s I n c
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
June MeetingCome to the June meeting and hear an in depth discussion of the Comprehensive Housing Needs Assessment for Olmsted County conducted by Maxfield Research Inc The study projects housing demand for submarkets in the Olmsted County Market Area from 2013 through 2030 It also provides recommendations on the amount and types of housing that could be built to satisfy demand from current and future residents over the next decade and beyond
June MEETINGDATE Wednesday June 4th 2014TIME Registration amp Networking at 700 AM Program at 730 AMPLACE Ramada Hotel amp Conference CenterPROGRAM Olmsted County Comprehensive Housing Needs AssessmentSPEAKERS Matt Mullins Vice President Maxfield Research Inc
wwwRochesterAreaBuilderscom20 | June 2014
2014 VALUATION 2013 VALUATION
New Residential Single Family Dwelling 25 5531411 39 9046592
Townhome Dwelling 0 0 0 0
Two-Family Houses 0 0 0 0
Multi-Family Bldgs 0 0 0 0
Manufactured Home 0 0 0 0 Existing Residential Deck Addition 19 107504 11 39350
Room Addition 3 278763 4 569729
Porch Additions 0 0 1 15925
Other Additions 0 0 0 0
Basement Finish 29 342255 27 294745
Alterations 50 516115 36 341383
Multi-Family Addition 0 0 0 0
Multi-Family Alterations 2 113000 5 40095 New Commercial Assembly (Church) 0 0 0 0
Assembly (General) 0 0 0 0
Assembly (RestaurantBar) 1 1561000 1 198000
Business 0 0 1 300000
Education 0 0 0 0
FactoryIndustrial 0 0 0 0
Institution 0 0 0 0
Mercantile 0 0 0 0
Miscelaneous 0 0 0 0
Utility (General) 1 130000 0 0
Residential (CareAssisted Living) 0 0 0 0
Storage (General) 1 45000 1 56000
Storage (Warehouse) 0 0 0 0 Existing CommercialAddition 8 5812413 1 3669000
Alterations 34 5984762 32 5633723
Structural Shell 0 0 0 0
ldquoWhite Boxrdquo 1 15000 0 0
Interior Demolition Only 3 48500 1 39775
Other Phased Permits 0 0 0 0
Other ConstructionBusiness Signs 15 106565 23 175223
Advertising Sign 1 18000 0 0
Footings amp Foundations 2 220000 0 0
Demolition 3 0
Rochester Building Permits April 2014
January 33 39 27 20 3 13 3 6 19 11
February 31 31 19 13 1 8 8 20 15 14
March 59 37 30 29 16 27 24 32 29 28
April 58 58 44 27 29 25 19 29 39 25
TOTAL 181 165 122 89 49 73 54 87 102 78
May 77 69 50 30 33 20 14 22 27
June 81 59 43 36 36 12 26 32 33
July 58 36 60 23 21 23 8 39 39
August 69 36 43 28 26 15 18 38 21
September 65 31 33 28 33 10 19 22 23
October 71 49 34 19 31 14 16 23 34
November 40 38 23 26 30 21 20 22 26
December 60 23 11 16 15 12 16 14 22
TOTAL 702 506 417 302 274 200 191 299 326 78
Single Family Homes
Year To Date Statistics 2014 2013 NO VALUATION NO VALUATION
Building Permits Issued to Date 617 99659586 576 55353067
Single Family Dwelling 78 19118519 102 23271991
Multi-Family Buildings Total Units 39 1 3702052 0 0
Trade Permits Issued to Date 2163 22421315 2077 19001370
Electrical 719 10304793 649 10630028
Electrical (Temp Service) 65 14350 79 23350
Mechanical 570 4962388 543 4383007
Gas Piping 135 348756 141 120700
Fireplace 113 303426 117 283801
Hydronic System 57 1939043 40 736592
Plumbing 504 4548559 508 2823892
Total Permits YTD 2780 122180901 2653 74354437
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
WwwRochesterAreaBuilderscomJune 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
MARCH 2014
New Residential NUMBER VALUATION
Single Family Detached 7 1027450
Existing Residential
Basement Finish 5 81500
Alterations 1 $500
ByronBuilding Permits
MARCH 2014
New Residential NUMBER VALUATION
Single Family 3 455000
Existing Residential NUMBER VALUATION
Heating 1 3600
Basement Finish 1 20000
Pine IslandBuilding Permits
wwwRochesterAreaBuilderscom22 | June 2014
Much has recently been made of the notion that China has enough serious structural problems with its economy that chances are good it will experience a ldquohard landingrdquo defined as economic growth quickly slowing from 75 today to the low single digits This slowdown would weaken commodity prices hurting developing nations and reduce Chinese imports of high-quality finished goods from developed nations also hurting the US Europe and Japan While the Chinese economy has problems many are chronic and I believe the government has sufficient resources to manage the acute ones and avoid a hard landing
The key problems the Chinese economy suffers from are threefold a profound overreliance on large trade surpluses massive government overinvestment in infrastructure and a weak financial system that has resulted in both bad loans made by irresponsible local and regional governments and a highly leveraged and lightly regulated shadow banking system (sound familiar) that may well implode
The first problem is fading away After running trade surpluses in the $45 billionyear range through 2003 they skyrocketed to $400 billionyear by the end of 2008 However that highpoint coincided with the Great Recession which resulted in a huge contraction in trade and simultaneously an effort by many nations to boost exports to help their domestic economies As a result Chinese trade surpluses have averaged about $300 billionyear (about two-thirds of that with the US) since early 2009 and show no discernable upward trend Moreover as the Chinese economy is about twice as big today as it was in 2005 the economic impact of the now smaller trade surpluses on the overall economy is much smaller
The second problem of roads to nowhere massive over building of plant leading to ruinous excess capacity along with the construction of uninhabited ghost towns is being rectified And rectified they can be because these destructive outcomes are the direct result of policies pursued by the central government that are now being overhauled GDP growth targets are being reduced artificially low interest rates earned by savers are likely to rise in the near future and the currency which has been profoundly undervalued is slowly appreciating Collectively these policies will curb wasteful overinvestment and slowly replace it with increased domestic consumption and reduced exports
As for the substantial dodgy debt on the books of local and regional governments and shadow banks due to weakening housing prices and raw land values that act as collateral for many loans here the problem is serious That said Chinarsquos debt is about 25 of GDP giving the central government ample room to borrow should it be necessary Moreover the central government is beginning to force local and regional governments to sell some of the $7 trillion in assets they own in an effort to shore up their financial condition
Moreover with $4 trillion in foreign reserves and the ability to weaken the Chinese currency at will to boost exports China has tools other nations donrsquot have Lastly expect Beijing to re-stimulate sagging housing markets by relaxing home-purchase requirements and local governments to augment this policy by giving residency benefits to out-of-towners to further boost demand Combining the above with looser monetary policy makes me think that those making key policy decisions the brightest minds in the nation will see to it that China comes through this relatively unscathed
Beijing Balancing 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
WwwRochesterAreaBuilderscomJune 2014 | 23
NONE
MEMBERSHIPS PENDINGNONE
The firms listed below have applied for membership in the Rochester Area Builders Any member who objects to admission of any applicant shall notify the RAB Board of Directors in writing of the objection before
the next Board of Directors meeting
MEMBERSHIP TOTAL 453RETENTION RATE 929
As of 43014
WE WELCOME THE FOLLOWING NEW MEMBERS IN APRIL
Membership Information
Membership Renewals as of 43014
One Year
Altra Federal Credit Union 2013JE Dunn Construction 2013The Kitchen Design Studio 2013West Bank 2013Xcel Energy 2013
Two to Four Years
Elias Construction LLC 2011Lacina Siding amp Windows Inc 2011Solar Connection Inc 2011Chladek Construction LLC 2010MEP Associates 2010Rochester Asphalt Inc 2010Wildwood Sports Bar and Grill 2010
Five to Nine Years
Beckleyrsquos Office Products 2009Beetles Bar amp Grill Inc 2008Data-Smart Computers Inc 2008HDR Architecture 2008Legends Concrete Inc 2007RCON Homes Inc 2007Michael Jack LLC 2006WA Insurance 2006Anderson Construction 2005
Ten to 19 Years
Scott Berberich Construction LLC 2004First General Services of SE MN 2003Todd Eidem Construction Inc 2002Ames Construction Inc 2001Expert Insulation Inc 2001HiMEC at Home 2001Habitat for Humanity - Rochester Area 2000Home Improvement Professionals Inc 1999
25 Years amp More
Countryside Builders LLC 1989Radcliffe Homes amp Remodeling 1988Thomas Tool amp Supply 1987Kreofsky Building Supplies 1985Tile Superstore amp More 1985Barrier Free Access Inc 1984RampM Development Company 1970
NEW APPLICANTS
FAT WILLYrsquoS BAR amp GRILL
4325 Maine Ave SERochester MN 55904Phone 507- 206-4301
Contact Bill HendersonAssociate Member
RestaurantBarSponsored by
David Kane Kane amp Johnson Architects Inc
KAHLER HOSPITALITY GROUP
20 2nd Avenue SWRochester MN 55902Phone 507- 280-6200
Contact Marnie GlynnAssociate Member
HotelSponsored byNone Listed
MANUFACTURERrsquoS BANK amp TRUST
2020 2nd Street SWRochester MN 55902Phone 507- 226-8460
Contact Thomas HeepkeAssociate Member
BankSponsored by
Sue Hanson Rochester Title amp Escrow Company Inc
SAWYER CONSTRUCTION SERVICES INC9472 65th Street NE
Elgin MN 55932Phone 507-272-1740Contact Marv Sawyer
Associate MemberLawn CareTree Service
Sponsored byChristy Buchan Energy Products amp Design Inc
wwwRochesterAreaBuilderscom24 | June 2014
Put your membershipto work nowMoney-saving discounts that benefit yourbusiness your employees and your family
wwwnahborgMA
National Association of Home Builders
R
WwwRochesterAreaBuilderscomJune 2014 | 3
Index News from the President 3Thank Yous 3RAB Golf Outing 4June Networking Night 5Green Building Expo 6-7Association Scrapbook 8-11Hey Matt Whatrsquos up with that 12-13Public Works Dept News 14-15Committee 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 PresidentMay 22 2014 ldquoVan Halen requests that the
brown MampMrsquos be removedrdquo
Fellow RAB Members ldquoback in the dayrdquo did you ever hear about this peculiar request made by the rock band to their concert promoters at each arena Urban tales abounded- all completely false- about the band trashing dressing rooms if they found the despised brown MampMrsquos in the catering area At the time this quirky demand was attributed to the egotistical excesses of a group whose ascent to fame had gone to their heads
Much like the issues that RAB works on though- from fire sprinklers to historic preservation- jumping to a sweeping conclusion based on emotion hype or some of the information can often be more misleading than forming an opinion based
on no information at all
Herersquos the real story about the MampMrsquos
Van Halen was an early pioneer in bringing large-arena rock shows to medium-sized venues Doing this successfully though required that each cityrsquos local stage sound equipment and main lights be placed and prepared with absolute precision according to the bandrsquos specific directions There was no margin for error In communicating these instructions with promoters and arenas around the country in very detailed contracts a simple litmus test was written into the later pages of this lengthy document no brown MampMrsquos in the candy dish
As David Lee Roth the bandrsquos on-again off-again front man would later admit the band could truly have not cared less about brown MampMrsquos They did care greatly though about putting on an awesome show every night for fans who paid their hard-earned money to come and see them One look at the candy dish when they arrived in a new city and were being shown the backstage area showed them all that they needed to know about their workload for that day If the candy dish was free of brown MampMrsquos the band knew with near certainty that every other detail spelled out in the contract had also been attended to The presence of brown MampMrsquos in the dish though meant that all elements specified to execute their high-impact concert needed to be checked and rechecked before showtime Accuracy could no longer be taken for granted
As a few high-impact issues for RAB seem to be coming to a peak simultaneously much has been said and written about our positions- unfortunately some of it based on less than the full facts Letrsquos do our best to make sure we knowhellipand share with good cheerhellipthe full story of our positions with those who ask Letrsquos also assume the best intentions in those who have a different opinion than us knowing that we may not have their full set of facts either
And while yoursquore at it feel free to pass the brown MampMrsquos
Enjoy the first rays of summer and have a great month
Kevin Worden2014 RAB President
April GMMThank you to Tradesman International for being the Social Hour Sponsor for our April General Membership Meeting held at the Events by Canadian Honker at the Ramada They were represented by Brad Hoffman Thank you to Carpet One for being the Desert Sponsor They were represented by Kathy Swygman
Our game night this year was Builder Feud hosted by ldquoRichard Dawsonrdquo aka John Eckerman Boldt Construction The ldquosetrdquo was design by RABrsquos own Ryan Kling-Punt The Builder Family was Mike Coats MEC Construction Kathy Einck Maplewood Homes John McGuine Schoeppner Construction Les Radcliffe Radcliffe Homes and Remodeling and Gary Zander Honorary Member The Association Family was Karen Blissenbach Design Studio B Brain Carlson Widseth Smith amp Nolting Wayne Eisen (no relation to John) Advanced Building Center David Kane Kane amp Johnson Architects and Jennifer Maas Kitchen Concepts
The game was hard played by all and while there were some contentious calls by the judges the Builder Family emerged victorious Thanks to all who participated
GIVE AWAYrsquoSGary Zander Honorary Member won a $30 Loop gift card given by the Post Bulletin
NEW MEMBERSThe following new members were in attendance Ole Olson GAF and Scott Phiefer All Craft Exteriors Welcome to the Association
Thank You
wwwRochesterAreaBuilderscom4 | June 2014
Join us at the RAB Golf Outing
WILLOW CREEK GOLF COURSE 1700 48th St SW
We listened to youThe 11 AM Shotgun start was a popular change last year so wersquore bringing it back It means yoursquore done earlier
so you can attend Thursdayrsquos on First your kidsrsquo sporting events or you can just go home and relax
Also returning this yearBREAK THE GLASSSponsored by Marvin WindowsIt time for you to make your Big Break Wersquove got a new contest on the driving range this year where you can relive your childhood days of playing golf in the backyard But this time if you break a window you wonrsquot get grounded and you might just win big
WIN A NEW CARSponsored by Clements Chevrolet Cadillac SubaruThis one speaks for itself Get a hole in one on 6 and you win
Golf is SOLD OUT but you can still join us for the social hour Tickets are just $15 each
Rochester Area Builders Inc is excited to be bringing you our annual golf outing Willow Creek Golf Course will be hosting the event which includes
lunch an 18 hole round on Willow Creek and a ldquo19th Holerdquo appetizer reception following the round Our format is a four-person scramble - you can
form your own four-some or we will assign you to a team We hope yoursquoll join us for a great day of Golf Networking and Fun
Hours1000 AM Registration Starts - Lunch provided by Think Mutual Bank -1100 AM Shotgun Start 430 PM 19th Hole - Appetizers and Social Time500 PM Announcements and Prizes
Thursday June 5 2014
Presented By
WwwRochesterAreaBuilderscomJune 2014 | 5
President Kevin Worden Rochester Area Habitat for HumanityVice President John Eckerman The Boldt Company
Secretary Lindsey Rippentrop Olmsted National Bank
Treasurer Carla Kilpatrick Home Federal Savings Bank
Past President Jean DeWitz DeWitz Home Builders Inc
Directors Karen Blissenbach Design Studio B Christy Buchan Energy Products amp Design Inc
Delbert Feenstra Knutson Construction Services Rob Jones Superior Mechanical Levi Kaiser Alvin E Benike Inc Bruce Laufenburger First General Services of SE MN Sam Peyton Kingrsquos Flooring LLC Brian Shehan Weis Builders Inc
Builders Exchange Council Representatives
JJ Webster Kraus-Anderson Construction Company Chair Jake Schleusner Merit Contracting Inc Vice Chair Tony Wintheiser Hentges Glass Past Chair
Commercial Builders Council Chris Terry Knutson Construction Services Chair Nick Leimer Kraus-Anderson Construction Company Vice Chair
Development Council Chair John Sipple Rochester Area Appraisals LLC
Remodelers Council Chair Sam Peyton Kingrsquos Flooring LLC
National Life Directors Joe Weis Weis Builders Inc
National Directors Steve Buss Cornerstone Builders amp Real Estate Inc Mike Coats MEC Construction Inc David Kane Kane amp Johnson Architects Inc Rep Rory Lenton Minnesota Energy Resources Corp
State Directors Jim Gander Superior Mechanical John McGuine Schoeppner Inc Rep Mike Paradise Bigelow Homes David Pederson Wendland Utz Dan Severson Dan Severson Builders Inc
Executive Director John Eischen
JEischenRochesterAreaBuilderscom
Staff Audra Bolduan
ABolduanRochesterAreaBuilderscom Marketing Builders Exchange Trustees
Matt Limoges MatthewLRochesterAreaBuilderscom Government Affairs Commercial Builders Council Development Council Building Safety Advisory Group Public Works Advisory Group Community Relations Green Building Marketing
Sharill Mueller SMuellerRochesterAreaBuilderscom Home Show Showcase Committee
Rebekah Nielsen RNielsenRochesterAreaBuilderscom Ambassadors Education Membership
Program Spike Club Remodelers Council -Executive-Home Tour-
Ryan Kling-Punt RPuntRochesterAreaBuilderscom Golf Outing Sporting Clays Directory Newsletter E-News Update
Join us at the JuneSummer Networking Night
Tuesday June 24th at the Valor Mechanical Inc
416 S BroadwayHours 500 pm - 700 pm
OUR HISTORYValor Mechanical was founded in June 2006 by Ty Bestor The dream vision and the current evolution of Valor was implemented in September 2012 Ty has over 35 years of experience in the mechanical construction industry Ty was born and raised in a small rural community in southeast Minnesota which prompted his desire to own and operate a company with the same moral values integrity and trust found in his small-town community
WHO WE AREValor Mechanical is a full-service commercial mechanical contractor based out of Harmony MN with a second location in Rochester MN Valor operates on these principle core values integrity trust and strong relationships all with a high level of customer service These values were instilled by Ty Bestor
CEO and all who work at Valor share in these values and in Tyrsquos business passion
WHAT WE DOThe experienced team at Valor Mechanical listens to the customersrsquo needs and objectives then creates a customized solution Valor creates cost-efficient solutions by allowing our team to approach every project from an engineering-first perspective Before finalizing mechanical numbers we explore every issue and concern with the project team The main constants among our technicians engineers and trained craftsmen is experience dedication and their commitment to Valorrsquos core values
Hosted By
wwwRochesterAreaBuilderscom6 | June 2014
What Green Building Expomdashan event for the
public
When Saturday September 20 2014
Where Cascade Meadow Wetlands and
Environmental Science Center
Time 9amndash 3pm
Who You If your business has anything to do with making a home more
energy efficient more sustainable sign up for a booth and we will review
Areas we are looking for
Buildings Health and Wellness Site Development Landscaping and Drain-
age
Cost $200mdashfor a measly $200 you get a 6 foot booth and countless mem-
bers of the public to talk to about your business
$50 to present The com-
topics to be presented
Signature Event Sponsors
EXHIBITORS NEEDED
GREENbuildingEXPO
GREENbuildingEXPO
C
M
Y
CM
MY
CY
CMY
K
RFP-pdf 5222014 13300 PM
WwwRochesterAreaBuilderscomJune 2014 | 7
Business
Contact Name
Nature of Business
Payment Method (Please Circle) Check Credit Card
Credit Card Number Security Code
Yes No
Signature Event Sponsors
faxing it to Rochester Area Builders at 507-282-6351
If you would like to mail in the form please mail it to
Rochester Area Builders
108 Elton Hills Ln NW
Rochester MN 55901
Please note that Rochester Area Builders will
ability of your business to the Green Building
respond to you by August 22 2014 with the
final decision Space is limited so sign up
fast
GREENbuildingEXPO
GREENbuildingEXPO
C
M
Y
CM
MY
CY
CMY
K
RFP - Registration-pdf 5222014 13237 PM
wwwRochesterAreaBuilderscom8 | June 2014
April GMMAssociation Scrapbook
WwwRochesterAreaBuilderscomJune 2014 | 9
Association ScrapbookMay Networking Night
wwwRochesterAreaBuilderscom10 | June 2014
Studs Struts amp StilettosAssociation Scrapbook
WwwRochesterAreaBuilderscomJune 2014 | 11
Association Scrapbook
Click here to see the entire gallery of photos including all the designs on our Facebook Page
Studs Struts amp Stilettos
wwwRochesterAreaBuilderscom12 | June 2014
To Session or not to Session
That is the question that Matt answers
in this monthrsquos
Itrsquos time for another installment of ldquoHey Matt whatrsquos up with thatrdquo This weekrsquos topic is the recently closed MN Legislative Session
ldquoHey Matt I heard that this Legislative Session was being called an lsquoUnsessionrsquo Whatrsquos up with thatrdquo
Whew what a fast and busy legislative session the ldquounsessionrdquo turned out to be The Governor earlier this year requested that lawmakers take this session to focus on two main things the Bonding Bill and cleaning up Minnesotarsquos Laws Because the Governor asked this of lawmakers the session was dubbed the ldquounsessionrdquo While lawmakers did clean up a lot of language in existing laws and repealed unnecessary ones they were busy making strides in a lot of other areas as well Passing laws on topics as far ranging as Bullying and Legalized Medical Marijuana this session was anything BUT the ldquounsessionrdquo
Two things I wanted to cover Fire Sprinklers and the Bonding Bill First the Bonding Bill The Bonding Bill is basically a giant construction bill giving communities money for projects that they wouldnrsquot be able to afford without state assistance The reason it is called the ldquoBonding Billrdquo is because the state borrows money for these projects This includes projects like the Mayo Civic Center rehabilitation and expansion This year lawmakers passed over a $1 Billion bonding bill and construction package Rochester
received $35 Million in funding for the Mayo Civic Center This was the biggest single project in the Bonding Bill and kudos to the city for all their hard work on finally getting this included in the Bonding Bill
Fire Sprinklers We found ourselves at the legislature again trying to prevent a single family home indoor fire sprinkler mandate This has been an uphill battle from the beginning The Governor has twice vetoed stand-alone legislation that was passed with bipartisan support We received a lack-luster ruling from our administrative law judge hearing in February All the odds were against us so it was a bit of a miracle that we became the political bargaining chip that we did Here is how it happened
Senator Senjem had previously unsuccessfully tried to add an amendment to the Bonding Bill regarding the prohibition of a fire sprinkler mandate However he was able to craft an amendment that was added to the language in the Senatersquos version of the Bonding Bill This is important because in a Bonding Bill the Governor has the power to what is called ldquoline-item vetordquo certain projects This means that the Governor can take the Bonding Bill and scratch certain projects from it after the legislature has passed it through both houses of the legislature Rochester should remember when Governor Pawlenty line-itemed the Mayo Civic Center funding from the 2010 bonding bill But I digress While the Governor is able to veto certain projects the
WwwRochesterAreaBuilderscomJune 2014 | 13
Governor does not have the power to line-item veto policy in the Bonding bill This means that if the Governor wanted to prevent the legislature from passing a prohibition on the mandate of fire sprinklers in single family homes he would have to veto the ENTIRE $1 BILLION BONDING BILL Politically we thought there was no way he would do something like that especially in an election year so that is why what Senator Senjem did was so important for us
Now for what happened next The House and the Senate both have to pass versions of a Bonding Bill and then it usually has to be resolved in what is called the conference committee It was apparent the House of Representatives was not going to include the fire sprinkler language Senator Senjem had gotten inserted into the Senate version Then the Governor held a press conference the sole purpose of which was to say that he would veto the Bonding Bill if it included any language regarding the prohibition of a fire sprinkler mandate in single family homes This was the moment we had been waiting for Money cannot buy the kind of press you get from a Governor threatening to veto a $1 Billion bonding bill All of a sudden the public wanted to know what was going on with these fire sprinklers After years of fighting the conversation had reached the public That is the good news The bad news is that because the legislature was operating under a tight schedule the DFL leadership of the Senate and the House negotiated a bonding bill that did
not include language regarding fire sprinklers So we were officially out of the bonding bill
While it is disappointing we didnrsquot get the result we wanted we got a lot of free press out of the situation which is invaluable when trying to get the public on your side of an issue The final date when fire sprinklers will be required in single family homes larger than 4500 sq ft is unknown but it appears it will be sometime in early 2015
What a session the ldquounsessionrdquo turned out to be
If you have any questions ideas or anything at all you want to talk to me about give me a call Or email
Matt
Hey Matt I heard that this Legislative Session was being called an ldquoUnsessionrdquo Whatrsquos up with that
wwwRochesterAreaBuilderscom14 | June 2014
Erosion and Sediment Control at Residential Construction SitesSpring is here and so is the rain As you move into construction mode this year be sure your site adequately provides erosion and sediment control (ESC) ndash no matter how big or small the storm Planning and good practices are essential for keeping sediment on site and preventing enforcement actions Follow the steps below to be prepared for the next rain
bull Before breaking ground review the approved Grading Plan for your site to verify grades on your lot and on adjacent properties (if you have questions on the Grading Plan please contact us)
bull Review the approved grading plan for your site and the adjacent properties to be sure that drainage easements ditches slopes and conveyance areas have correct grades and positive drainage
bull Preserve existing vegetation and topsoil on-site preserving existing vegetation is especially important around the perimeter By preserving existing vegetation this may save you from installing additional perimeter sediment control measures and saving topsoil can save you and the homeowner money
bull Insure that perimeter and internal ESC BMPs are properly anchored and functioning Perimeter sediment control measures are required at all downslope locations on-site
bull Provide stabilized vehicle entrances and exits at your site Options to prevent track-out of sediment onto streets include rock entrances wood chips and mud mats Be certain that your subcontractors are aware of and use the designated access points
bull All area catch basins should have appropriate inlet protection installed in order to prevent soil and debris from entering the storm sewer and draining to our receiving waters Sediment must be regularly removed from inlet protection to prevent street flooding
bull Develop and utilize a concrete washout management plan and facility or return concrete
POOR ESC
WwwRochesterAreaBuilderscomJune 2014 | 15
The MPCA recently informed the City of Rochester that no comments were received on the Cityrsquos new storm water permit application during the public notice period which ended May 1st Therefore MPCA will extend permit coverage to the City under the August 2013 permit and the Cityrsquos effective date will be Thursday May 8th
Under the new 2013 permit the City must continue the permit activities already in place and meet the added requirements The new tasks that the City must address before May 7 2015 include
bull Completing a storm water management plan updatebull Preparing a new storm water ordinance that incorporates the new permit requirementsbull Updating all standard operating procedures and preparing new enforcement response proceduresbull Assessing the Cityrsquos status in meeting Total Maximum Daily Load Waste Load Allocationsbull Developing a pond effectiveness assessment planbull Enhancing the City facilities and operations inventorybull Creating an employee and business technical education program
Of particular interest to RAB members will be the new ordinance The City expects to have a draft ready for public review by October Any questions about the new permit can be directed to Barb Huberty at bhubertyrochestermngov
UPDATE New State Storm Water Permit
washout to the concrete vendor No liquid or solid concrete waste from washout operations can be in contact with the ground
bull Keep a clean construction site One of the biggest complaints the City receives about construction sites is the construction debris and litter Create and use a garbage corral or dumpster and empty them before they overflow Ask contractors to compact their debris so it doesnrsquot blow out of the container on windy days
bull Place topsoil and vegetate all exposed soil areas as soon as fine grading is complete The City of Rochester standards require a minimum of 4rdquo of topsoil on disturbed areas donrsquot substitute subsoil for topsoil
bull Learn more about useful storm water management practices and state construction storm water permit requirements at the MPCA website wwwpcastatemnuswaterstormwater
Rochester residents want good water quality and quality construction Improper ESC on construction sites has a direct negative impact on our waterways Be proactive and take the time to properly inspect and maintain your ESC best management practices to stabilize your construction site and prevent unintentional water pollution
For more information about this topic please contact Mike Kraszewski (328-2431) or Kevin Kuisle (328-2457) at the Rochester Public Works Department
GOOD ESC
wwwRochesterAreaBuilderscom16 | June 2014
WwwRochesterAreaBuilderscomJune 2014 | 17
Committee UpdatesNOMINATING COMMITTEECHAIRPERSON John Eckerman Boldt Construction
The Nominating Committee will be meeting soon to discuss nominations for the 2015 Board of Directors as well as chairpersons for our many committees and councils If you would like to recommend a member for a position or if you would like to recommend yourself please call John at the office 282-7698 We are always looking for new people to be involved in the management of our association
SHOWCASE COMMITTEECHAIRPERSON Brandon Vagt XRG Concepts
The Fall Showcase of Homes is scheduled for September 13th 14th and 20th 21st Have you started building a home to enter in the Showcase Itrsquos a wonderful opportunity to have your home seen by thousands of potential customers Information packets have been mailed to residential builders and the first of three deadlines is June 19th
Committee ChairpersonsAMBASSADORSGreg Hird First Alliance Credit UnionAWARDSTBABUILDING MAINTENANCETJ Schutz Advanced Building Center IncBUILDING SAFETY ADVISORYMickey Elias Elias Construction LLCCOMMUNITY RELATIONSTony Kunz Hillerrsquos Flooring AmericaDISPUTE RESOLUTIONJohn Kuntz Kuntz Electric IncEDUCATIONVacantEXECUTIVEKevin Worden Rochester Area Habitat for HumanityFASHION SHOWKaren Blissenbach Design Studio BFINANCECarla Kilpatrick Home Federal Savings BankGOLF OUTINGLindsey Rippentrop Olmsted National BankGOVERNMENT AFFAIRSJohn Eckerman The Boldt CompanyGREEN BUILDINGKelly OrsquoMarro XRG Concepts LLCHOME SHOW ndash 2013Jeff Kalmes Hillers Flooring AmericaMARKETINGRob Easthouse Electrical Solutions amp ServiceMEMBERSHIP amp RETENTIONDan Bochman Kruse LumberNOMINATINGKerk Johnson Schwickertrsquos Tecta America LLC PERSONNELKevin Worden Rochester Area Habitat for HumanityPROGRAMDan Plizga Weis Builders IncPUBLIC WORKS ADVISORYJeff Broberg McGhie amp Betts - a Division of WSB amp Associates IncSHOWCASE OF HOMESBrandon Vagt XRG Concepts LLCSPIKE CLUBJay Burke Heartwood Homes of Rochester IncSPORTING CLAYSJames Coyle Kane amp Johnson Architects Inc
CouncilsBER EXECUTIVE COMMITTEEJJ Webster Kraus-Anderson Construction CompanyCBC EXECUTIVE COMMITTEEChris Terry Knutson Construction ServicesDEVELOPMENT COUNCILJohn Sipple Rochester Area Appraisals LLCREMODELERS EXECUTIVE COMMITTEESam Peyton Kingrsquos Flooring LLCREMODELERS TOURKaren Blissenbach Design Studio B
wwwRochesterAreaBuilderscom18 | June 2014
May MeetingThank you to Kingrsquos Flooring for sponsor-
ing the May Meeting held at the RAB Office We had a nice turnout and
enjoyed the beautiful weather as we sat outside and networked and enjoyed the lunch that Kingrsquos Flooring provided We
hope to see you all again in June
construction fashion expose
WwwRochesterAreaBuilderscomJune 2014 | 19
Members2014 Commercial Builders Council107 Members as of 123113AB Systems IncAccord Electric IncAdvanced DisposalAlpha Video amp AudioAssociated BankAlvin E Benike IncThe Blue Book
of Building amp Construction
The Boldt CompanyBraun Intertec
CorporationBriese Iron Works IncBrock White CompanyCO Brown AgencyCambriaCarpet OneCentury Painting amp
Decorating LLCChosen Valley Testing
IncConstruction
Partnership IncCounselor Realty of
Rochester IncCounty Materials
CorporationCRW architecture +
design group incCustom AlarmCustom
Communications IncDunlap amp SeegerEastwood Bankeci llcElcor ConstructionEnergy Panel StructuresEnergy Products amp
Design IncEnventisExpert Insulation IncFerguson EnterprisesFriedrich Construction
IncGerhardsGoodin CompanyHaley Comfort Systems
(Authorized FireSide Dealer)
WL Hall CompanyHGA Architects and
EngineersHDR ArchitectureHeartman InsuranceHillerrsquos Flooring AmericaHiMec at HomeHome Federal Savings
BankHunt Electric
CorporationKampM Glass CompanyKampS Heating AC
Plumbing amp ElectricalKane amp Johnson
Architects IncKey Builders IncKnutson Construction
ServicesKomitt Concrete IncKraus-Anderson
Construction CompanyKreofsky Building
SuppliesKruse LumberKuntz Electric IncKwik Trip IncLeitzen Concrete
Products IncEd Lunn Construction
IncMarvin Windows amp
DoorsMavo Systems IncMcGhie amp Betts Inc
McGough ConstructionMEC Construction IncMEP AssociatesMerchants BankMerit Contracting IncMinnesota Energy
Resources CorporationMinnwest BankNickelson Painting IncOlmsted National BankOnSitePalmer Soderberg IncPella Windows amp DoorsPeoplersquos Energy
CooperativePompeii Painting IncPrehn Building Sales
IncPremier Bank RochesterProBuild Company LLCReliable Contractors
Inc Rochester Area
Appraisals LLCRochester Area
Economic Development Inc
Rochester Public Utilities
Rochester Ready Mix Concrete Co
Rochester Sign Service Inc
Rochester Title amp Escrow Company Inc
Ryan Electric of Rochester Inc
Schoeppner IncSchwab LLCSchwickertrsquos Tecta
America LLCStantecStructural Design
Group IncSuperior MechanicalTamarack Materials of
Rochester IncThink Mutual BankTonna Mechanical IncTSP Architects amp
EngineersTW Construction
Solutions LLCUnited RentalsThe Urban StudioUS BankValor Mechanical IncVeit CompaniesVertical Limit
ConstructionViking Automatic
Sprinkler CompanyViking Electric SupplyWeis Builders IncWells Fargo Bank
Minnesota NAWendland UtzWidseth Smith NoltingYaggy Colby Associates
BUILDERS COUNCILCOMMERCIAL
a d i v i s i o n o f R o c h e s t e r A r e a B u i l d e r s I n c
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
June MeetingCome to the June meeting and hear an in depth discussion of the Comprehensive Housing Needs Assessment for Olmsted County conducted by Maxfield Research Inc The study projects housing demand for submarkets in the Olmsted County Market Area from 2013 through 2030 It also provides recommendations on the amount and types of housing that could be built to satisfy demand from current and future residents over the next decade and beyond
June MEETINGDATE Wednesday June 4th 2014TIME Registration amp Networking at 700 AM Program at 730 AMPLACE Ramada Hotel amp Conference CenterPROGRAM Olmsted County Comprehensive Housing Needs AssessmentSPEAKERS Matt Mullins Vice President Maxfield Research Inc
wwwRochesterAreaBuilderscom20 | June 2014
2014 VALUATION 2013 VALUATION
New Residential Single Family Dwelling 25 5531411 39 9046592
Townhome Dwelling 0 0 0 0
Two-Family Houses 0 0 0 0
Multi-Family Bldgs 0 0 0 0
Manufactured Home 0 0 0 0 Existing Residential Deck Addition 19 107504 11 39350
Room Addition 3 278763 4 569729
Porch Additions 0 0 1 15925
Other Additions 0 0 0 0
Basement Finish 29 342255 27 294745
Alterations 50 516115 36 341383
Multi-Family Addition 0 0 0 0
Multi-Family Alterations 2 113000 5 40095 New Commercial Assembly (Church) 0 0 0 0
Assembly (General) 0 0 0 0
Assembly (RestaurantBar) 1 1561000 1 198000
Business 0 0 1 300000
Education 0 0 0 0
FactoryIndustrial 0 0 0 0
Institution 0 0 0 0
Mercantile 0 0 0 0
Miscelaneous 0 0 0 0
Utility (General) 1 130000 0 0
Residential (CareAssisted Living) 0 0 0 0
Storage (General) 1 45000 1 56000
Storage (Warehouse) 0 0 0 0 Existing CommercialAddition 8 5812413 1 3669000
Alterations 34 5984762 32 5633723
Structural Shell 0 0 0 0
ldquoWhite Boxrdquo 1 15000 0 0
Interior Demolition Only 3 48500 1 39775
Other Phased Permits 0 0 0 0
Other ConstructionBusiness Signs 15 106565 23 175223
Advertising Sign 1 18000 0 0
Footings amp Foundations 2 220000 0 0
Demolition 3 0
Rochester Building Permits April 2014
January 33 39 27 20 3 13 3 6 19 11
February 31 31 19 13 1 8 8 20 15 14
March 59 37 30 29 16 27 24 32 29 28
April 58 58 44 27 29 25 19 29 39 25
TOTAL 181 165 122 89 49 73 54 87 102 78
May 77 69 50 30 33 20 14 22 27
June 81 59 43 36 36 12 26 32 33
July 58 36 60 23 21 23 8 39 39
August 69 36 43 28 26 15 18 38 21
September 65 31 33 28 33 10 19 22 23
October 71 49 34 19 31 14 16 23 34
November 40 38 23 26 30 21 20 22 26
December 60 23 11 16 15 12 16 14 22
TOTAL 702 506 417 302 274 200 191 299 326 78
Single Family Homes
Year To Date Statistics 2014 2013 NO VALUATION NO VALUATION
Building Permits Issued to Date 617 99659586 576 55353067
Single Family Dwelling 78 19118519 102 23271991
Multi-Family Buildings Total Units 39 1 3702052 0 0
Trade Permits Issued to Date 2163 22421315 2077 19001370
Electrical 719 10304793 649 10630028
Electrical (Temp Service) 65 14350 79 23350
Mechanical 570 4962388 543 4383007
Gas Piping 135 348756 141 120700
Fireplace 113 303426 117 283801
Hydronic System 57 1939043 40 736592
Plumbing 504 4548559 508 2823892
Total Permits YTD 2780 122180901 2653 74354437
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
WwwRochesterAreaBuilderscomJune 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
MARCH 2014
New Residential NUMBER VALUATION
Single Family Detached 7 1027450
Existing Residential
Basement Finish 5 81500
Alterations 1 $500
ByronBuilding Permits
MARCH 2014
New Residential NUMBER VALUATION
Single Family 3 455000
Existing Residential NUMBER VALUATION
Heating 1 3600
Basement Finish 1 20000
Pine IslandBuilding Permits
wwwRochesterAreaBuilderscom22 | June 2014
Much has recently been made of the notion that China has enough serious structural problems with its economy that chances are good it will experience a ldquohard landingrdquo defined as economic growth quickly slowing from 75 today to the low single digits This slowdown would weaken commodity prices hurting developing nations and reduce Chinese imports of high-quality finished goods from developed nations also hurting the US Europe and Japan While the Chinese economy has problems many are chronic and I believe the government has sufficient resources to manage the acute ones and avoid a hard landing
The key problems the Chinese economy suffers from are threefold a profound overreliance on large trade surpluses massive government overinvestment in infrastructure and a weak financial system that has resulted in both bad loans made by irresponsible local and regional governments and a highly leveraged and lightly regulated shadow banking system (sound familiar) that may well implode
The first problem is fading away After running trade surpluses in the $45 billionyear range through 2003 they skyrocketed to $400 billionyear by the end of 2008 However that highpoint coincided with the Great Recession which resulted in a huge contraction in trade and simultaneously an effort by many nations to boost exports to help their domestic economies As a result Chinese trade surpluses have averaged about $300 billionyear (about two-thirds of that with the US) since early 2009 and show no discernable upward trend Moreover as the Chinese economy is about twice as big today as it was in 2005 the economic impact of the now smaller trade surpluses on the overall economy is much smaller
The second problem of roads to nowhere massive over building of plant leading to ruinous excess capacity along with the construction of uninhabited ghost towns is being rectified And rectified they can be because these destructive outcomes are the direct result of policies pursued by the central government that are now being overhauled GDP growth targets are being reduced artificially low interest rates earned by savers are likely to rise in the near future and the currency which has been profoundly undervalued is slowly appreciating Collectively these policies will curb wasteful overinvestment and slowly replace it with increased domestic consumption and reduced exports
As for the substantial dodgy debt on the books of local and regional governments and shadow banks due to weakening housing prices and raw land values that act as collateral for many loans here the problem is serious That said Chinarsquos debt is about 25 of GDP giving the central government ample room to borrow should it be necessary Moreover the central government is beginning to force local and regional governments to sell some of the $7 trillion in assets they own in an effort to shore up their financial condition
Moreover with $4 trillion in foreign reserves and the ability to weaken the Chinese currency at will to boost exports China has tools other nations donrsquot have Lastly expect Beijing to re-stimulate sagging housing markets by relaxing home-purchase requirements and local governments to augment this policy by giving residency benefits to out-of-towners to further boost demand Combining the above with looser monetary policy makes me think that those making key policy decisions the brightest minds in the nation will see to it that China comes through this relatively unscathed
Beijing Balancing 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
WwwRochesterAreaBuilderscomJune 2014 | 23
NONE
MEMBERSHIPS PENDINGNONE
The firms listed below have applied for membership in the Rochester Area Builders Any member who objects to admission of any applicant shall notify the RAB Board of Directors in writing of the objection before
the next Board of Directors meeting
MEMBERSHIP TOTAL 453RETENTION RATE 929
As of 43014
WE WELCOME THE FOLLOWING NEW MEMBERS IN APRIL
Membership Information
Membership Renewals as of 43014
One Year
Altra Federal Credit Union 2013JE Dunn Construction 2013The Kitchen Design Studio 2013West Bank 2013Xcel Energy 2013
Two to Four Years
Elias Construction LLC 2011Lacina Siding amp Windows Inc 2011Solar Connection Inc 2011Chladek Construction LLC 2010MEP Associates 2010Rochester Asphalt Inc 2010Wildwood Sports Bar and Grill 2010
Five to Nine Years
Beckleyrsquos Office Products 2009Beetles Bar amp Grill Inc 2008Data-Smart Computers Inc 2008HDR Architecture 2008Legends Concrete Inc 2007RCON Homes Inc 2007Michael Jack LLC 2006WA Insurance 2006Anderson Construction 2005
Ten to 19 Years
Scott Berberich Construction LLC 2004First General Services of SE MN 2003Todd Eidem Construction Inc 2002Ames Construction Inc 2001Expert Insulation Inc 2001HiMEC at Home 2001Habitat for Humanity - Rochester Area 2000Home Improvement Professionals Inc 1999
25 Years amp More
Countryside Builders LLC 1989Radcliffe Homes amp Remodeling 1988Thomas Tool amp Supply 1987Kreofsky Building Supplies 1985Tile Superstore amp More 1985Barrier Free Access Inc 1984RampM Development Company 1970
NEW APPLICANTS
FAT WILLYrsquoS BAR amp GRILL
4325 Maine Ave SERochester MN 55904Phone 507- 206-4301
Contact Bill HendersonAssociate Member
RestaurantBarSponsored by
David Kane Kane amp Johnson Architects Inc
KAHLER HOSPITALITY GROUP
20 2nd Avenue SWRochester MN 55902Phone 507- 280-6200
Contact Marnie GlynnAssociate Member
HotelSponsored byNone Listed
MANUFACTURERrsquoS BANK amp TRUST
2020 2nd Street SWRochester MN 55902Phone 507- 226-8460
Contact Thomas HeepkeAssociate Member
BankSponsored by
Sue Hanson Rochester Title amp Escrow Company Inc
SAWYER CONSTRUCTION SERVICES INC9472 65th Street NE
Elgin MN 55932Phone 507-272-1740Contact Marv Sawyer
Associate MemberLawn CareTree Service
Sponsored byChristy Buchan Energy Products amp Design Inc
wwwRochesterAreaBuilderscom24 | June 2014
Put your membershipto work nowMoney-saving discounts that benefit yourbusiness your employees and your family
wwwnahborgMA
National Association of Home Builders
R
wwwRochesterAreaBuilderscom4 | June 2014
Join us at the RAB Golf Outing
WILLOW CREEK GOLF COURSE 1700 48th St SW
We listened to youThe 11 AM Shotgun start was a popular change last year so wersquore bringing it back It means yoursquore done earlier
so you can attend Thursdayrsquos on First your kidsrsquo sporting events or you can just go home and relax
Also returning this yearBREAK THE GLASSSponsored by Marvin WindowsIt time for you to make your Big Break Wersquove got a new contest on the driving range this year where you can relive your childhood days of playing golf in the backyard But this time if you break a window you wonrsquot get grounded and you might just win big
WIN A NEW CARSponsored by Clements Chevrolet Cadillac SubaruThis one speaks for itself Get a hole in one on 6 and you win
Golf is SOLD OUT but you can still join us for the social hour Tickets are just $15 each
Rochester Area Builders Inc is excited to be bringing you our annual golf outing Willow Creek Golf Course will be hosting the event which includes
lunch an 18 hole round on Willow Creek and a ldquo19th Holerdquo appetizer reception following the round Our format is a four-person scramble - you can
form your own four-some or we will assign you to a team We hope yoursquoll join us for a great day of Golf Networking and Fun
Hours1000 AM Registration Starts - Lunch provided by Think Mutual Bank -1100 AM Shotgun Start 430 PM 19th Hole - Appetizers and Social Time500 PM Announcements and Prizes
Thursday June 5 2014
Presented By
WwwRochesterAreaBuilderscomJune 2014 | 5
President Kevin Worden Rochester Area Habitat for HumanityVice President John Eckerman The Boldt Company
Secretary Lindsey Rippentrop Olmsted National Bank
Treasurer Carla Kilpatrick Home Federal Savings Bank
Past President Jean DeWitz DeWitz Home Builders Inc
Directors Karen Blissenbach Design Studio B Christy Buchan Energy Products amp Design Inc
Delbert Feenstra Knutson Construction Services Rob Jones Superior Mechanical Levi Kaiser Alvin E Benike Inc Bruce Laufenburger First General Services of SE MN Sam Peyton Kingrsquos Flooring LLC Brian Shehan Weis Builders Inc
Builders Exchange Council Representatives
JJ Webster Kraus-Anderson Construction Company Chair Jake Schleusner Merit Contracting Inc Vice Chair Tony Wintheiser Hentges Glass Past Chair
Commercial Builders Council Chris Terry Knutson Construction Services Chair Nick Leimer Kraus-Anderson Construction Company Vice Chair
Development Council Chair John Sipple Rochester Area Appraisals LLC
Remodelers Council Chair Sam Peyton Kingrsquos Flooring LLC
National Life Directors Joe Weis Weis Builders Inc
National Directors Steve Buss Cornerstone Builders amp Real Estate Inc Mike Coats MEC Construction Inc David Kane Kane amp Johnson Architects Inc Rep Rory Lenton Minnesota Energy Resources Corp
State Directors Jim Gander Superior Mechanical John McGuine Schoeppner Inc Rep Mike Paradise Bigelow Homes David Pederson Wendland Utz Dan Severson Dan Severson Builders Inc
Executive Director John Eischen
JEischenRochesterAreaBuilderscom
Staff Audra Bolduan
ABolduanRochesterAreaBuilderscom Marketing Builders Exchange Trustees
Matt Limoges MatthewLRochesterAreaBuilderscom Government Affairs Commercial Builders Council Development Council Building Safety Advisory Group Public Works Advisory Group Community Relations Green Building Marketing
Sharill Mueller SMuellerRochesterAreaBuilderscom Home Show Showcase Committee
Rebekah Nielsen RNielsenRochesterAreaBuilderscom Ambassadors Education Membership
Program Spike Club Remodelers Council -Executive-Home Tour-
Ryan Kling-Punt RPuntRochesterAreaBuilderscom Golf Outing Sporting Clays Directory Newsletter E-News Update
Join us at the JuneSummer Networking Night
Tuesday June 24th at the Valor Mechanical Inc
416 S BroadwayHours 500 pm - 700 pm
OUR HISTORYValor Mechanical was founded in June 2006 by Ty Bestor The dream vision and the current evolution of Valor was implemented in September 2012 Ty has over 35 years of experience in the mechanical construction industry Ty was born and raised in a small rural community in southeast Minnesota which prompted his desire to own and operate a company with the same moral values integrity and trust found in his small-town community
WHO WE AREValor Mechanical is a full-service commercial mechanical contractor based out of Harmony MN with a second location in Rochester MN Valor operates on these principle core values integrity trust and strong relationships all with a high level of customer service These values were instilled by Ty Bestor
CEO and all who work at Valor share in these values and in Tyrsquos business passion
WHAT WE DOThe experienced team at Valor Mechanical listens to the customersrsquo needs and objectives then creates a customized solution Valor creates cost-efficient solutions by allowing our team to approach every project from an engineering-first perspective Before finalizing mechanical numbers we explore every issue and concern with the project team The main constants among our technicians engineers and trained craftsmen is experience dedication and their commitment to Valorrsquos core values
Hosted By
wwwRochesterAreaBuilderscom6 | June 2014
What Green Building Expomdashan event for the
public
When Saturday September 20 2014
Where Cascade Meadow Wetlands and
Environmental Science Center
Time 9amndash 3pm
Who You If your business has anything to do with making a home more
energy efficient more sustainable sign up for a booth and we will review
Areas we are looking for
Buildings Health and Wellness Site Development Landscaping and Drain-
age
Cost $200mdashfor a measly $200 you get a 6 foot booth and countless mem-
bers of the public to talk to about your business
$50 to present The com-
topics to be presented
Signature Event Sponsors
EXHIBITORS NEEDED
GREENbuildingEXPO
GREENbuildingEXPO
C
M
Y
CM
MY
CY
CMY
K
RFP-pdf 5222014 13300 PM
WwwRochesterAreaBuilderscomJune 2014 | 7
Business
Contact Name
Nature of Business
Payment Method (Please Circle) Check Credit Card
Credit Card Number Security Code
Yes No
Signature Event Sponsors
faxing it to Rochester Area Builders at 507-282-6351
If you would like to mail in the form please mail it to
Rochester Area Builders
108 Elton Hills Ln NW
Rochester MN 55901
Please note that Rochester Area Builders will
ability of your business to the Green Building
respond to you by August 22 2014 with the
final decision Space is limited so sign up
fast
GREENbuildingEXPO
GREENbuildingEXPO
C
M
Y
CM
MY
CY
CMY
K
RFP - Registration-pdf 5222014 13237 PM
wwwRochesterAreaBuilderscom8 | June 2014
April GMMAssociation Scrapbook
WwwRochesterAreaBuilderscomJune 2014 | 9
Association ScrapbookMay Networking Night
wwwRochesterAreaBuilderscom10 | June 2014
Studs Struts amp StilettosAssociation Scrapbook
WwwRochesterAreaBuilderscomJune 2014 | 11
Association Scrapbook
Click here to see the entire gallery of photos including all the designs on our Facebook Page
Studs Struts amp Stilettos
wwwRochesterAreaBuilderscom12 | June 2014
To Session or not to Session
That is the question that Matt answers
in this monthrsquos
Itrsquos time for another installment of ldquoHey Matt whatrsquos up with thatrdquo This weekrsquos topic is the recently closed MN Legislative Session
ldquoHey Matt I heard that this Legislative Session was being called an lsquoUnsessionrsquo Whatrsquos up with thatrdquo
Whew what a fast and busy legislative session the ldquounsessionrdquo turned out to be The Governor earlier this year requested that lawmakers take this session to focus on two main things the Bonding Bill and cleaning up Minnesotarsquos Laws Because the Governor asked this of lawmakers the session was dubbed the ldquounsessionrdquo While lawmakers did clean up a lot of language in existing laws and repealed unnecessary ones they were busy making strides in a lot of other areas as well Passing laws on topics as far ranging as Bullying and Legalized Medical Marijuana this session was anything BUT the ldquounsessionrdquo
Two things I wanted to cover Fire Sprinklers and the Bonding Bill First the Bonding Bill The Bonding Bill is basically a giant construction bill giving communities money for projects that they wouldnrsquot be able to afford without state assistance The reason it is called the ldquoBonding Billrdquo is because the state borrows money for these projects This includes projects like the Mayo Civic Center rehabilitation and expansion This year lawmakers passed over a $1 Billion bonding bill and construction package Rochester
received $35 Million in funding for the Mayo Civic Center This was the biggest single project in the Bonding Bill and kudos to the city for all their hard work on finally getting this included in the Bonding Bill
Fire Sprinklers We found ourselves at the legislature again trying to prevent a single family home indoor fire sprinkler mandate This has been an uphill battle from the beginning The Governor has twice vetoed stand-alone legislation that was passed with bipartisan support We received a lack-luster ruling from our administrative law judge hearing in February All the odds were against us so it was a bit of a miracle that we became the political bargaining chip that we did Here is how it happened
Senator Senjem had previously unsuccessfully tried to add an amendment to the Bonding Bill regarding the prohibition of a fire sprinkler mandate However he was able to craft an amendment that was added to the language in the Senatersquos version of the Bonding Bill This is important because in a Bonding Bill the Governor has the power to what is called ldquoline-item vetordquo certain projects This means that the Governor can take the Bonding Bill and scratch certain projects from it after the legislature has passed it through both houses of the legislature Rochester should remember when Governor Pawlenty line-itemed the Mayo Civic Center funding from the 2010 bonding bill But I digress While the Governor is able to veto certain projects the
WwwRochesterAreaBuilderscomJune 2014 | 13
Governor does not have the power to line-item veto policy in the Bonding bill This means that if the Governor wanted to prevent the legislature from passing a prohibition on the mandate of fire sprinklers in single family homes he would have to veto the ENTIRE $1 BILLION BONDING BILL Politically we thought there was no way he would do something like that especially in an election year so that is why what Senator Senjem did was so important for us
Now for what happened next The House and the Senate both have to pass versions of a Bonding Bill and then it usually has to be resolved in what is called the conference committee It was apparent the House of Representatives was not going to include the fire sprinkler language Senator Senjem had gotten inserted into the Senate version Then the Governor held a press conference the sole purpose of which was to say that he would veto the Bonding Bill if it included any language regarding the prohibition of a fire sprinkler mandate in single family homes This was the moment we had been waiting for Money cannot buy the kind of press you get from a Governor threatening to veto a $1 Billion bonding bill All of a sudden the public wanted to know what was going on with these fire sprinklers After years of fighting the conversation had reached the public That is the good news The bad news is that because the legislature was operating under a tight schedule the DFL leadership of the Senate and the House negotiated a bonding bill that did
not include language regarding fire sprinklers So we were officially out of the bonding bill
While it is disappointing we didnrsquot get the result we wanted we got a lot of free press out of the situation which is invaluable when trying to get the public on your side of an issue The final date when fire sprinklers will be required in single family homes larger than 4500 sq ft is unknown but it appears it will be sometime in early 2015
What a session the ldquounsessionrdquo turned out to be
If you have any questions ideas or anything at all you want to talk to me about give me a call Or email
Matt
Hey Matt I heard that this Legislative Session was being called an ldquoUnsessionrdquo Whatrsquos up with that
wwwRochesterAreaBuilderscom14 | June 2014
Erosion and Sediment Control at Residential Construction SitesSpring is here and so is the rain As you move into construction mode this year be sure your site adequately provides erosion and sediment control (ESC) ndash no matter how big or small the storm Planning and good practices are essential for keeping sediment on site and preventing enforcement actions Follow the steps below to be prepared for the next rain
bull Before breaking ground review the approved Grading Plan for your site to verify grades on your lot and on adjacent properties (if you have questions on the Grading Plan please contact us)
bull Review the approved grading plan for your site and the adjacent properties to be sure that drainage easements ditches slopes and conveyance areas have correct grades and positive drainage
bull Preserve existing vegetation and topsoil on-site preserving existing vegetation is especially important around the perimeter By preserving existing vegetation this may save you from installing additional perimeter sediment control measures and saving topsoil can save you and the homeowner money
bull Insure that perimeter and internal ESC BMPs are properly anchored and functioning Perimeter sediment control measures are required at all downslope locations on-site
bull Provide stabilized vehicle entrances and exits at your site Options to prevent track-out of sediment onto streets include rock entrances wood chips and mud mats Be certain that your subcontractors are aware of and use the designated access points
bull All area catch basins should have appropriate inlet protection installed in order to prevent soil and debris from entering the storm sewer and draining to our receiving waters Sediment must be regularly removed from inlet protection to prevent street flooding
bull Develop and utilize a concrete washout management plan and facility or return concrete
POOR ESC
WwwRochesterAreaBuilderscomJune 2014 | 15
The MPCA recently informed the City of Rochester that no comments were received on the Cityrsquos new storm water permit application during the public notice period which ended May 1st Therefore MPCA will extend permit coverage to the City under the August 2013 permit and the Cityrsquos effective date will be Thursday May 8th
Under the new 2013 permit the City must continue the permit activities already in place and meet the added requirements The new tasks that the City must address before May 7 2015 include
bull Completing a storm water management plan updatebull Preparing a new storm water ordinance that incorporates the new permit requirementsbull Updating all standard operating procedures and preparing new enforcement response proceduresbull Assessing the Cityrsquos status in meeting Total Maximum Daily Load Waste Load Allocationsbull Developing a pond effectiveness assessment planbull Enhancing the City facilities and operations inventorybull Creating an employee and business technical education program
Of particular interest to RAB members will be the new ordinance The City expects to have a draft ready for public review by October Any questions about the new permit can be directed to Barb Huberty at bhubertyrochestermngov
UPDATE New State Storm Water Permit
washout to the concrete vendor No liquid or solid concrete waste from washout operations can be in contact with the ground
bull Keep a clean construction site One of the biggest complaints the City receives about construction sites is the construction debris and litter Create and use a garbage corral or dumpster and empty them before they overflow Ask contractors to compact their debris so it doesnrsquot blow out of the container on windy days
bull Place topsoil and vegetate all exposed soil areas as soon as fine grading is complete The City of Rochester standards require a minimum of 4rdquo of topsoil on disturbed areas donrsquot substitute subsoil for topsoil
bull Learn more about useful storm water management practices and state construction storm water permit requirements at the MPCA website wwwpcastatemnuswaterstormwater
Rochester residents want good water quality and quality construction Improper ESC on construction sites has a direct negative impact on our waterways Be proactive and take the time to properly inspect and maintain your ESC best management practices to stabilize your construction site and prevent unintentional water pollution
For more information about this topic please contact Mike Kraszewski (328-2431) or Kevin Kuisle (328-2457) at the Rochester Public Works Department
GOOD ESC
wwwRochesterAreaBuilderscom16 | June 2014
WwwRochesterAreaBuilderscomJune 2014 | 17
Committee UpdatesNOMINATING COMMITTEECHAIRPERSON John Eckerman Boldt Construction
The Nominating Committee will be meeting soon to discuss nominations for the 2015 Board of Directors as well as chairpersons for our many committees and councils If you would like to recommend a member for a position or if you would like to recommend yourself please call John at the office 282-7698 We are always looking for new people to be involved in the management of our association
SHOWCASE COMMITTEECHAIRPERSON Brandon Vagt XRG Concepts
The Fall Showcase of Homes is scheduled for September 13th 14th and 20th 21st Have you started building a home to enter in the Showcase Itrsquos a wonderful opportunity to have your home seen by thousands of potential customers Information packets have been mailed to residential builders and the first of three deadlines is June 19th
Committee ChairpersonsAMBASSADORSGreg Hird First Alliance Credit UnionAWARDSTBABUILDING MAINTENANCETJ Schutz Advanced Building Center IncBUILDING SAFETY ADVISORYMickey Elias Elias Construction LLCCOMMUNITY RELATIONSTony Kunz Hillerrsquos Flooring AmericaDISPUTE RESOLUTIONJohn Kuntz Kuntz Electric IncEDUCATIONVacantEXECUTIVEKevin Worden Rochester Area Habitat for HumanityFASHION SHOWKaren Blissenbach Design Studio BFINANCECarla Kilpatrick Home Federal Savings BankGOLF OUTINGLindsey Rippentrop Olmsted National BankGOVERNMENT AFFAIRSJohn Eckerman The Boldt CompanyGREEN BUILDINGKelly OrsquoMarro XRG Concepts LLCHOME SHOW ndash 2013Jeff Kalmes Hillers Flooring AmericaMARKETINGRob Easthouse Electrical Solutions amp ServiceMEMBERSHIP amp RETENTIONDan Bochman Kruse LumberNOMINATINGKerk Johnson Schwickertrsquos Tecta America LLC PERSONNELKevin Worden Rochester Area Habitat for HumanityPROGRAMDan Plizga Weis Builders IncPUBLIC WORKS ADVISORYJeff Broberg McGhie amp Betts - a Division of WSB amp Associates IncSHOWCASE OF HOMESBrandon Vagt XRG Concepts LLCSPIKE CLUBJay Burke Heartwood Homes of Rochester IncSPORTING CLAYSJames Coyle Kane amp Johnson Architects Inc
CouncilsBER EXECUTIVE COMMITTEEJJ Webster Kraus-Anderson Construction CompanyCBC EXECUTIVE COMMITTEEChris Terry Knutson Construction ServicesDEVELOPMENT COUNCILJohn Sipple Rochester Area Appraisals LLCREMODELERS EXECUTIVE COMMITTEESam Peyton Kingrsquos Flooring LLCREMODELERS TOURKaren Blissenbach Design Studio B
wwwRochesterAreaBuilderscom18 | June 2014
May MeetingThank you to Kingrsquos Flooring for sponsor-
ing the May Meeting held at the RAB Office We had a nice turnout and
enjoyed the beautiful weather as we sat outside and networked and enjoyed the lunch that Kingrsquos Flooring provided We
hope to see you all again in June
construction fashion expose
WwwRochesterAreaBuilderscomJune 2014 | 19
Members2014 Commercial Builders Council107 Members as of 123113AB Systems IncAccord Electric IncAdvanced DisposalAlpha Video amp AudioAssociated BankAlvin E Benike IncThe Blue Book
of Building amp Construction
The Boldt CompanyBraun Intertec
CorporationBriese Iron Works IncBrock White CompanyCO Brown AgencyCambriaCarpet OneCentury Painting amp
Decorating LLCChosen Valley Testing
IncConstruction
Partnership IncCounselor Realty of
Rochester IncCounty Materials
CorporationCRW architecture +
design group incCustom AlarmCustom
Communications IncDunlap amp SeegerEastwood Bankeci llcElcor ConstructionEnergy Panel StructuresEnergy Products amp
Design IncEnventisExpert Insulation IncFerguson EnterprisesFriedrich Construction
IncGerhardsGoodin CompanyHaley Comfort Systems
(Authorized FireSide Dealer)
WL Hall CompanyHGA Architects and
EngineersHDR ArchitectureHeartman InsuranceHillerrsquos Flooring AmericaHiMec at HomeHome Federal Savings
BankHunt Electric
CorporationKampM Glass CompanyKampS Heating AC
Plumbing amp ElectricalKane amp Johnson
Architects IncKey Builders IncKnutson Construction
ServicesKomitt Concrete IncKraus-Anderson
Construction CompanyKreofsky Building
SuppliesKruse LumberKuntz Electric IncKwik Trip IncLeitzen Concrete
Products IncEd Lunn Construction
IncMarvin Windows amp
DoorsMavo Systems IncMcGhie amp Betts Inc
McGough ConstructionMEC Construction IncMEP AssociatesMerchants BankMerit Contracting IncMinnesota Energy
Resources CorporationMinnwest BankNickelson Painting IncOlmsted National BankOnSitePalmer Soderberg IncPella Windows amp DoorsPeoplersquos Energy
CooperativePompeii Painting IncPrehn Building Sales
IncPremier Bank RochesterProBuild Company LLCReliable Contractors
Inc Rochester Area
Appraisals LLCRochester Area
Economic Development Inc
Rochester Public Utilities
Rochester Ready Mix Concrete Co
Rochester Sign Service Inc
Rochester Title amp Escrow Company Inc
Ryan Electric of Rochester Inc
Schoeppner IncSchwab LLCSchwickertrsquos Tecta
America LLCStantecStructural Design
Group IncSuperior MechanicalTamarack Materials of
Rochester IncThink Mutual BankTonna Mechanical IncTSP Architects amp
EngineersTW Construction
Solutions LLCUnited RentalsThe Urban StudioUS BankValor Mechanical IncVeit CompaniesVertical Limit
ConstructionViking Automatic
Sprinkler CompanyViking Electric SupplyWeis Builders IncWells Fargo Bank
Minnesota NAWendland UtzWidseth Smith NoltingYaggy Colby Associates
BUILDERS COUNCILCOMMERCIAL
a d i v i s i o n o f R o c h e s t e r A r e a B u i l d e r s I n c
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
June MeetingCome to the June meeting and hear an in depth discussion of the Comprehensive Housing Needs Assessment for Olmsted County conducted by Maxfield Research Inc The study projects housing demand for submarkets in the Olmsted County Market Area from 2013 through 2030 It also provides recommendations on the amount and types of housing that could be built to satisfy demand from current and future residents over the next decade and beyond
June MEETINGDATE Wednesday June 4th 2014TIME Registration amp Networking at 700 AM Program at 730 AMPLACE Ramada Hotel amp Conference CenterPROGRAM Olmsted County Comprehensive Housing Needs AssessmentSPEAKERS Matt Mullins Vice President Maxfield Research Inc
wwwRochesterAreaBuilderscom20 | June 2014
2014 VALUATION 2013 VALUATION
New Residential Single Family Dwelling 25 5531411 39 9046592
Townhome Dwelling 0 0 0 0
Two-Family Houses 0 0 0 0
Multi-Family Bldgs 0 0 0 0
Manufactured Home 0 0 0 0 Existing Residential Deck Addition 19 107504 11 39350
Room Addition 3 278763 4 569729
Porch Additions 0 0 1 15925
Other Additions 0 0 0 0
Basement Finish 29 342255 27 294745
Alterations 50 516115 36 341383
Multi-Family Addition 0 0 0 0
Multi-Family Alterations 2 113000 5 40095 New Commercial Assembly (Church) 0 0 0 0
Assembly (General) 0 0 0 0
Assembly (RestaurantBar) 1 1561000 1 198000
Business 0 0 1 300000
Education 0 0 0 0
FactoryIndustrial 0 0 0 0
Institution 0 0 0 0
Mercantile 0 0 0 0
Miscelaneous 0 0 0 0
Utility (General) 1 130000 0 0
Residential (CareAssisted Living) 0 0 0 0
Storage (General) 1 45000 1 56000
Storage (Warehouse) 0 0 0 0 Existing CommercialAddition 8 5812413 1 3669000
Alterations 34 5984762 32 5633723
Structural Shell 0 0 0 0
ldquoWhite Boxrdquo 1 15000 0 0
Interior Demolition Only 3 48500 1 39775
Other Phased Permits 0 0 0 0
Other ConstructionBusiness Signs 15 106565 23 175223
Advertising Sign 1 18000 0 0
Footings amp Foundations 2 220000 0 0
Demolition 3 0
Rochester Building Permits April 2014
January 33 39 27 20 3 13 3 6 19 11
February 31 31 19 13 1 8 8 20 15 14
March 59 37 30 29 16 27 24 32 29 28
April 58 58 44 27 29 25 19 29 39 25
TOTAL 181 165 122 89 49 73 54 87 102 78
May 77 69 50 30 33 20 14 22 27
June 81 59 43 36 36 12 26 32 33
July 58 36 60 23 21 23 8 39 39
August 69 36 43 28 26 15 18 38 21
September 65 31 33 28 33 10 19 22 23
October 71 49 34 19 31 14 16 23 34
November 40 38 23 26 30 21 20 22 26
December 60 23 11 16 15 12 16 14 22
TOTAL 702 506 417 302 274 200 191 299 326 78
Single Family Homes
Year To Date Statistics 2014 2013 NO VALUATION NO VALUATION
Building Permits Issued to Date 617 99659586 576 55353067
Single Family Dwelling 78 19118519 102 23271991
Multi-Family Buildings Total Units 39 1 3702052 0 0
Trade Permits Issued to Date 2163 22421315 2077 19001370
Electrical 719 10304793 649 10630028
Electrical (Temp Service) 65 14350 79 23350
Mechanical 570 4962388 543 4383007
Gas Piping 135 348756 141 120700
Fireplace 113 303426 117 283801
Hydronic System 57 1939043 40 736592
Plumbing 504 4548559 508 2823892
Total Permits YTD 2780 122180901 2653 74354437
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
WwwRochesterAreaBuilderscomJune 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
MARCH 2014
New Residential NUMBER VALUATION
Single Family Detached 7 1027450
Existing Residential
Basement Finish 5 81500
Alterations 1 $500
ByronBuilding Permits
MARCH 2014
New Residential NUMBER VALUATION
Single Family 3 455000
Existing Residential NUMBER VALUATION
Heating 1 3600
Basement Finish 1 20000
Pine IslandBuilding Permits
wwwRochesterAreaBuilderscom22 | June 2014
Much has recently been made of the notion that China has enough serious structural problems with its economy that chances are good it will experience a ldquohard landingrdquo defined as economic growth quickly slowing from 75 today to the low single digits This slowdown would weaken commodity prices hurting developing nations and reduce Chinese imports of high-quality finished goods from developed nations also hurting the US Europe and Japan While the Chinese economy has problems many are chronic and I believe the government has sufficient resources to manage the acute ones and avoid a hard landing
The key problems the Chinese economy suffers from are threefold a profound overreliance on large trade surpluses massive government overinvestment in infrastructure and a weak financial system that has resulted in both bad loans made by irresponsible local and regional governments and a highly leveraged and lightly regulated shadow banking system (sound familiar) that may well implode
The first problem is fading away After running trade surpluses in the $45 billionyear range through 2003 they skyrocketed to $400 billionyear by the end of 2008 However that highpoint coincided with the Great Recession which resulted in a huge contraction in trade and simultaneously an effort by many nations to boost exports to help their domestic economies As a result Chinese trade surpluses have averaged about $300 billionyear (about two-thirds of that with the US) since early 2009 and show no discernable upward trend Moreover as the Chinese economy is about twice as big today as it was in 2005 the economic impact of the now smaller trade surpluses on the overall economy is much smaller
The second problem of roads to nowhere massive over building of plant leading to ruinous excess capacity along with the construction of uninhabited ghost towns is being rectified And rectified they can be because these destructive outcomes are the direct result of policies pursued by the central government that are now being overhauled GDP growth targets are being reduced artificially low interest rates earned by savers are likely to rise in the near future and the currency which has been profoundly undervalued is slowly appreciating Collectively these policies will curb wasteful overinvestment and slowly replace it with increased domestic consumption and reduced exports
As for the substantial dodgy debt on the books of local and regional governments and shadow banks due to weakening housing prices and raw land values that act as collateral for many loans here the problem is serious That said Chinarsquos debt is about 25 of GDP giving the central government ample room to borrow should it be necessary Moreover the central government is beginning to force local and regional governments to sell some of the $7 trillion in assets they own in an effort to shore up their financial condition
Moreover with $4 trillion in foreign reserves and the ability to weaken the Chinese currency at will to boost exports China has tools other nations donrsquot have Lastly expect Beijing to re-stimulate sagging housing markets by relaxing home-purchase requirements and local governments to augment this policy by giving residency benefits to out-of-towners to further boost demand Combining the above with looser monetary policy makes me think that those making key policy decisions the brightest minds in the nation will see to it that China comes through this relatively unscathed
Beijing Balancing 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
WwwRochesterAreaBuilderscomJune 2014 | 23
NONE
MEMBERSHIPS PENDINGNONE
The firms listed below have applied for membership in the Rochester Area Builders Any member who objects to admission of any applicant shall notify the RAB Board of Directors in writing of the objection before
the next Board of Directors meeting
MEMBERSHIP TOTAL 453RETENTION RATE 929
As of 43014
WE WELCOME THE FOLLOWING NEW MEMBERS IN APRIL
Membership Information
Membership Renewals as of 43014
One Year
Altra Federal Credit Union 2013JE Dunn Construction 2013The Kitchen Design Studio 2013West Bank 2013Xcel Energy 2013
Two to Four Years
Elias Construction LLC 2011Lacina Siding amp Windows Inc 2011Solar Connection Inc 2011Chladek Construction LLC 2010MEP Associates 2010Rochester Asphalt Inc 2010Wildwood Sports Bar and Grill 2010
Five to Nine Years
Beckleyrsquos Office Products 2009Beetles Bar amp Grill Inc 2008Data-Smart Computers Inc 2008HDR Architecture 2008Legends Concrete Inc 2007RCON Homes Inc 2007Michael Jack LLC 2006WA Insurance 2006Anderson Construction 2005
Ten to 19 Years
Scott Berberich Construction LLC 2004First General Services of SE MN 2003Todd Eidem Construction Inc 2002Ames Construction Inc 2001Expert Insulation Inc 2001HiMEC at Home 2001Habitat for Humanity - Rochester Area 2000Home Improvement Professionals Inc 1999
25 Years amp More
Countryside Builders LLC 1989Radcliffe Homes amp Remodeling 1988Thomas Tool amp Supply 1987Kreofsky Building Supplies 1985Tile Superstore amp More 1985Barrier Free Access Inc 1984RampM Development Company 1970
NEW APPLICANTS
FAT WILLYrsquoS BAR amp GRILL
4325 Maine Ave SERochester MN 55904Phone 507- 206-4301
Contact Bill HendersonAssociate Member
RestaurantBarSponsored by
David Kane Kane amp Johnson Architects Inc
KAHLER HOSPITALITY GROUP
20 2nd Avenue SWRochester MN 55902Phone 507- 280-6200
Contact Marnie GlynnAssociate Member
HotelSponsored byNone Listed
MANUFACTURERrsquoS BANK amp TRUST
2020 2nd Street SWRochester MN 55902Phone 507- 226-8460
Contact Thomas HeepkeAssociate Member
BankSponsored by
Sue Hanson Rochester Title amp Escrow Company Inc
SAWYER CONSTRUCTION SERVICES INC9472 65th Street NE
Elgin MN 55932Phone 507-272-1740Contact Marv Sawyer
Associate MemberLawn CareTree Service
Sponsored byChristy Buchan Energy Products amp Design Inc
wwwRochesterAreaBuilderscom24 | June 2014
Put your membershipto work nowMoney-saving discounts that benefit yourbusiness your employees and your family
wwwnahborgMA
National Association of Home Builders
R
WwwRochesterAreaBuilderscomJune 2014 | 5
President Kevin Worden Rochester Area Habitat for HumanityVice President John Eckerman The Boldt Company
Secretary Lindsey Rippentrop Olmsted National Bank
Treasurer Carla Kilpatrick Home Federal Savings Bank
Past President Jean DeWitz DeWitz Home Builders Inc
Directors Karen Blissenbach Design Studio B Christy Buchan Energy Products amp Design Inc
Delbert Feenstra Knutson Construction Services Rob Jones Superior Mechanical Levi Kaiser Alvin E Benike Inc Bruce Laufenburger First General Services of SE MN Sam Peyton Kingrsquos Flooring LLC Brian Shehan Weis Builders Inc
Builders Exchange Council Representatives
JJ Webster Kraus-Anderson Construction Company Chair Jake Schleusner Merit Contracting Inc Vice Chair Tony Wintheiser Hentges Glass Past Chair
Commercial Builders Council Chris Terry Knutson Construction Services Chair Nick Leimer Kraus-Anderson Construction Company Vice Chair
Development Council Chair John Sipple Rochester Area Appraisals LLC
Remodelers Council Chair Sam Peyton Kingrsquos Flooring LLC
National Life Directors Joe Weis Weis Builders Inc
National Directors Steve Buss Cornerstone Builders amp Real Estate Inc Mike Coats MEC Construction Inc David Kane Kane amp Johnson Architects Inc Rep Rory Lenton Minnesota Energy Resources Corp
State Directors Jim Gander Superior Mechanical John McGuine Schoeppner Inc Rep Mike Paradise Bigelow Homes David Pederson Wendland Utz Dan Severson Dan Severson Builders Inc
Executive Director John Eischen
JEischenRochesterAreaBuilderscom
Staff Audra Bolduan
ABolduanRochesterAreaBuilderscom Marketing Builders Exchange Trustees
Matt Limoges MatthewLRochesterAreaBuilderscom Government Affairs Commercial Builders Council Development Council Building Safety Advisory Group Public Works Advisory Group Community Relations Green Building Marketing
Sharill Mueller SMuellerRochesterAreaBuilderscom Home Show Showcase Committee
Rebekah Nielsen RNielsenRochesterAreaBuilderscom Ambassadors Education Membership
Program Spike Club Remodelers Council -Executive-Home Tour-
Ryan Kling-Punt RPuntRochesterAreaBuilderscom Golf Outing Sporting Clays Directory Newsletter E-News Update
Join us at the JuneSummer Networking Night
Tuesday June 24th at the Valor Mechanical Inc
416 S BroadwayHours 500 pm - 700 pm
OUR HISTORYValor Mechanical was founded in June 2006 by Ty Bestor The dream vision and the current evolution of Valor was implemented in September 2012 Ty has over 35 years of experience in the mechanical construction industry Ty was born and raised in a small rural community in southeast Minnesota which prompted his desire to own and operate a company with the same moral values integrity and trust found in his small-town community
WHO WE AREValor Mechanical is a full-service commercial mechanical contractor based out of Harmony MN with a second location in Rochester MN Valor operates on these principle core values integrity trust and strong relationships all with a high level of customer service These values were instilled by Ty Bestor
CEO and all who work at Valor share in these values and in Tyrsquos business passion
WHAT WE DOThe experienced team at Valor Mechanical listens to the customersrsquo needs and objectives then creates a customized solution Valor creates cost-efficient solutions by allowing our team to approach every project from an engineering-first perspective Before finalizing mechanical numbers we explore every issue and concern with the project team The main constants among our technicians engineers and trained craftsmen is experience dedication and their commitment to Valorrsquos core values
Hosted By
wwwRochesterAreaBuilderscom6 | June 2014
What Green Building Expomdashan event for the
public
When Saturday September 20 2014
Where Cascade Meadow Wetlands and
Environmental Science Center
Time 9amndash 3pm
Who You If your business has anything to do with making a home more
energy efficient more sustainable sign up for a booth and we will review
Areas we are looking for
Buildings Health and Wellness Site Development Landscaping and Drain-
age
Cost $200mdashfor a measly $200 you get a 6 foot booth and countless mem-
bers of the public to talk to about your business
$50 to present The com-
topics to be presented
Signature Event Sponsors
EXHIBITORS NEEDED
GREENbuildingEXPO
GREENbuildingEXPO
C
M
Y
CM
MY
CY
CMY
K
RFP-pdf 5222014 13300 PM
WwwRochesterAreaBuilderscomJune 2014 | 7
Business
Contact Name
Nature of Business
Payment Method (Please Circle) Check Credit Card
Credit Card Number Security Code
Yes No
Signature Event Sponsors
faxing it to Rochester Area Builders at 507-282-6351
If you would like to mail in the form please mail it to
Rochester Area Builders
108 Elton Hills Ln NW
Rochester MN 55901
Please note that Rochester Area Builders will
ability of your business to the Green Building
respond to you by August 22 2014 with the
final decision Space is limited so sign up
fast
GREENbuildingEXPO
GREENbuildingEXPO
C
M
Y
CM
MY
CY
CMY
K
RFP - Registration-pdf 5222014 13237 PM
wwwRochesterAreaBuilderscom8 | June 2014
April GMMAssociation Scrapbook
WwwRochesterAreaBuilderscomJune 2014 | 9
Association ScrapbookMay Networking Night
wwwRochesterAreaBuilderscom10 | June 2014
Studs Struts amp StilettosAssociation Scrapbook
WwwRochesterAreaBuilderscomJune 2014 | 11
Association Scrapbook
Click here to see the entire gallery of photos including all the designs on our Facebook Page
Studs Struts amp Stilettos
wwwRochesterAreaBuilderscom12 | June 2014
To Session or not to Session
That is the question that Matt answers
in this monthrsquos
Itrsquos time for another installment of ldquoHey Matt whatrsquos up with thatrdquo This weekrsquos topic is the recently closed MN Legislative Session
ldquoHey Matt I heard that this Legislative Session was being called an lsquoUnsessionrsquo Whatrsquos up with thatrdquo
Whew what a fast and busy legislative session the ldquounsessionrdquo turned out to be The Governor earlier this year requested that lawmakers take this session to focus on two main things the Bonding Bill and cleaning up Minnesotarsquos Laws Because the Governor asked this of lawmakers the session was dubbed the ldquounsessionrdquo While lawmakers did clean up a lot of language in existing laws and repealed unnecessary ones they were busy making strides in a lot of other areas as well Passing laws on topics as far ranging as Bullying and Legalized Medical Marijuana this session was anything BUT the ldquounsessionrdquo
Two things I wanted to cover Fire Sprinklers and the Bonding Bill First the Bonding Bill The Bonding Bill is basically a giant construction bill giving communities money for projects that they wouldnrsquot be able to afford without state assistance The reason it is called the ldquoBonding Billrdquo is because the state borrows money for these projects This includes projects like the Mayo Civic Center rehabilitation and expansion This year lawmakers passed over a $1 Billion bonding bill and construction package Rochester
received $35 Million in funding for the Mayo Civic Center This was the biggest single project in the Bonding Bill and kudos to the city for all their hard work on finally getting this included in the Bonding Bill
Fire Sprinklers We found ourselves at the legislature again trying to prevent a single family home indoor fire sprinkler mandate This has been an uphill battle from the beginning The Governor has twice vetoed stand-alone legislation that was passed with bipartisan support We received a lack-luster ruling from our administrative law judge hearing in February All the odds were against us so it was a bit of a miracle that we became the political bargaining chip that we did Here is how it happened
Senator Senjem had previously unsuccessfully tried to add an amendment to the Bonding Bill regarding the prohibition of a fire sprinkler mandate However he was able to craft an amendment that was added to the language in the Senatersquos version of the Bonding Bill This is important because in a Bonding Bill the Governor has the power to what is called ldquoline-item vetordquo certain projects This means that the Governor can take the Bonding Bill and scratch certain projects from it after the legislature has passed it through both houses of the legislature Rochester should remember when Governor Pawlenty line-itemed the Mayo Civic Center funding from the 2010 bonding bill But I digress While the Governor is able to veto certain projects the
WwwRochesterAreaBuilderscomJune 2014 | 13
Governor does not have the power to line-item veto policy in the Bonding bill This means that if the Governor wanted to prevent the legislature from passing a prohibition on the mandate of fire sprinklers in single family homes he would have to veto the ENTIRE $1 BILLION BONDING BILL Politically we thought there was no way he would do something like that especially in an election year so that is why what Senator Senjem did was so important for us
Now for what happened next The House and the Senate both have to pass versions of a Bonding Bill and then it usually has to be resolved in what is called the conference committee It was apparent the House of Representatives was not going to include the fire sprinkler language Senator Senjem had gotten inserted into the Senate version Then the Governor held a press conference the sole purpose of which was to say that he would veto the Bonding Bill if it included any language regarding the prohibition of a fire sprinkler mandate in single family homes This was the moment we had been waiting for Money cannot buy the kind of press you get from a Governor threatening to veto a $1 Billion bonding bill All of a sudden the public wanted to know what was going on with these fire sprinklers After years of fighting the conversation had reached the public That is the good news The bad news is that because the legislature was operating under a tight schedule the DFL leadership of the Senate and the House negotiated a bonding bill that did
not include language regarding fire sprinklers So we were officially out of the bonding bill
While it is disappointing we didnrsquot get the result we wanted we got a lot of free press out of the situation which is invaluable when trying to get the public on your side of an issue The final date when fire sprinklers will be required in single family homes larger than 4500 sq ft is unknown but it appears it will be sometime in early 2015
What a session the ldquounsessionrdquo turned out to be
If you have any questions ideas or anything at all you want to talk to me about give me a call Or email
Matt
Hey Matt I heard that this Legislative Session was being called an ldquoUnsessionrdquo Whatrsquos up with that
wwwRochesterAreaBuilderscom14 | June 2014
Erosion and Sediment Control at Residential Construction SitesSpring is here and so is the rain As you move into construction mode this year be sure your site adequately provides erosion and sediment control (ESC) ndash no matter how big or small the storm Planning and good practices are essential for keeping sediment on site and preventing enforcement actions Follow the steps below to be prepared for the next rain
bull Before breaking ground review the approved Grading Plan for your site to verify grades on your lot and on adjacent properties (if you have questions on the Grading Plan please contact us)
bull Review the approved grading plan for your site and the adjacent properties to be sure that drainage easements ditches slopes and conveyance areas have correct grades and positive drainage
bull Preserve existing vegetation and topsoil on-site preserving existing vegetation is especially important around the perimeter By preserving existing vegetation this may save you from installing additional perimeter sediment control measures and saving topsoil can save you and the homeowner money
bull Insure that perimeter and internal ESC BMPs are properly anchored and functioning Perimeter sediment control measures are required at all downslope locations on-site
bull Provide stabilized vehicle entrances and exits at your site Options to prevent track-out of sediment onto streets include rock entrances wood chips and mud mats Be certain that your subcontractors are aware of and use the designated access points
bull All area catch basins should have appropriate inlet protection installed in order to prevent soil and debris from entering the storm sewer and draining to our receiving waters Sediment must be regularly removed from inlet protection to prevent street flooding
bull Develop and utilize a concrete washout management plan and facility or return concrete
POOR ESC
WwwRochesterAreaBuilderscomJune 2014 | 15
The MPCA recently informed the City of Rochester that no comments were received on the Cityrsquos new storm water permit application during the public notice period which ended May 1st Therefore MPCA will extend permit coverage to the City under the August 2013 permit and the Cityrsquos effective date will be Thursday May 8th
Under the new 2013 permit the City must continue the permit activities already in place and meet the added requirements The new tasks that the City must address before May 7 2015 include
bull Completing a storm water management plan updatebull Preparing a new storm water ordinance that incorporates the new permit requirementsbull Updating all standard operating procedures and preparing new enforcement response proceduresbull Assessing the Cityrsquos status in meeting Total Maximum Daily Load Waste Load Allocationsbull Developing a pond effectiveness assessment planbull Enhancing the City facilities and operations inventorybull Creating an employee and business technical education program
Of particular interest to RAB members will be the new ordinance The City expects to have a draft ready for public review by October Any questions about the new permit can be directed to Barb Huberty at bhubertyrochestermngov
UPDATE New State Storm Water Permit
washout to the concrete vendor No liquid or solid concrete waste from washout operations can be in contact with the ground
bull Keep a clean construction site One of the biggest complaints the City receives about construction sites is the construction debris and litter Create and use a garbage corral or dumpster and empty them before they overflow Ask contractors to compact their debris so it doesnrsquot blow out of the container on windy days
bull Place topsoil and vegetate all exposed soil areas as soon as fine grading is complete The City of Rochester standards require a minimum of 4rdquo of topsoil on disturbed areas donrsquot substitute subsoil for topsoil
bull Learn more about useful storm water management practices and state construction storm water permit requirements at the MPCA website wwwpcastatemnuswaterstormwater
Rochester residents want good water quality and quality construction Improper ESC on construction sites has a direct negative impact on our waterways Be proactive and take the time to properly inspect and maintain your ESC best management practices to stabilize your construction site and prevent unintentional water pollution
For more information about this topic please contact Mike Kraszewski (328-2431) or Kevin Kuisle (328-2457) at the Rochester Public Works Department
GOOD ESC
wwwRochesterAreaBuilderscom16 | June 2014
WwwRochesterAreaBuilderscomJune 2014 | 17
Committee UpdatesNOMINATING COMMITTEECHAIRPERSON John Eckerman Boldt Construction
The Nominating Committee will be meeting soon to discuss nominations for the 2015 Board of Directors as well as chairpersons for our many committees and councils If you would like to recommend a member for a position or if you would like to recommend yourself please call John at the office 282-7698 We are always looking for new people to be involved in the management of our association
SHOWCASE COMMITTEECHAIRPERSON Brandon Vagt XRG Concepts
The Fall Showcase of Homes is scheduled for September 13th 14th and 20th 21st Have you started building a home to enter in the Showcase Itrsquos a wonderful opportunity to have your home seen by thousands of potential customers Information packets have been mailed to residential builders and the first of three deadlines is June 19th
Committee ChairpersonsAMBASSADORSGreg Hird First Alliance Credit UnionAWARDSTBABUILDING MAINTENANCETJ Schutz Advanced Building Center IncBUILDING SAFETY ADVISORYMickey Elias Elias Construction LLCCOMMUNITY RELATIONSTony Kunz Hillerrsquos Flooring AmericaDISPUTE RESOLUTIONJohn Kuntz Kuntz Electric IncEDUCATIONVacantEXECUTIVEKevin Worden Rochester Area Habitat for HumanityFASHION SHOWKaren Blissenbach Design Studio BFINANCECarla Kilpatrick Home Federal Savings BankGOLF OUTINGLindsey Rippentrop Olmsted National BankGOVERNMENT AFFAIRSJohn Eckerman The Boldt CompanyGREEN BUILDINGKelly OrsquoMarro XRG Concepts LLCHOME SHOW ndash 2013Jeff Kalmes Hillers Flooring AmericaMARKETINGRob Easthouse Electrical Solutions amp ServiceMEMBERSHIP amp RETENTIONDan Bochman Kruse LumberNOMINATINGKerk Johnson Schwickertrsquos Tecta America LLC PERSONNELKevin Worden Rochester Area Habitat for HumanityPROGRAMDan Plizga Weis Builders IncPUBLIC WORKS ADVISORYJeff Broberg McGhie amp Betts - a Division of WSB amp Associates IncSHOWCASE OF HOMESBrandon Vagt XRG Concepts LLCSPIKE CLUBJay Burke Heartwood Homes of Rochester IncSPORTING CLAYSJames Coyle Kane amp Johnson Architects Inc
CouncilsBER EXECUTIVE COMMITTEEJJ Webster Kraus-Anderson Construction CompanyCBC EXECUTIVE COMMITTEEChris Terry Knutson Construction ServicesDEVELOPMENT COUNCILJohn Sipple Rochester Area Appraisals LLCREMODELERS EXECUTIVE COMMITTEESam Peyton Kingrsquos Flooring LLCREMODELERS TOURKaren Blissenbach Design Studio B
wwwRochesterAreaBuilderscom18 | June 2014
May MeetingThank you to Kingrsquos Flooring for sponsor-
ing the May Meeting held at the RAB Office We had a nice turnout and
enjoyed the beautiful weather as we sat outside and networked and enjoyed the lunch that Kingrsquos Flooring provided We
hope to see you all again in June
construction fashion expose
WwwRochesterAreaBuilderscomJune 2014 | 19
Members2014 Commercial Builders Council107 Members as of 123113AB Systems IncAccord Electric IncAdvanced DisposalAlpha Video amp AudioAssociated BankAlvin E Benike IncThe Blue Book
of Building amp Construction
The Boldt CompanyBraun Intertec
CorporationBriese Iron Works IncBrock White CompanyCO Brown AgencyCambriaCarpet OneCentury Painting amp
Decorating LLCChosen Valley Testing
IncConstruction
Partnership IncCounselor Realty of
Rochester IncCounty Materials
CorporationCRW architecture +
design group incCustom AlarmCustom
Communications IncDunlap amp SeegerEastwood Bankeci llcElcor ConstructionEnergy Panel StructuresEnergy Products amp
Design IncEnventisExpert Insulation IncFerguson EnterprisesFriedrich Construction
IncGerhardsGoodin CompanyHaley Comfort Systems
(Authorized FireSide Dealer)
WL Hall CompanyHGA Architects and
EngineersHDR ArchitectureHeartman InsuranceHillerrsquos Flooring AmericaHiMec at HomeHome Federal Savings
BankHunt Electric
CorporationKampM Glass CompanyKampS Heating AC
Plumbing amp ElectricalKane amp Johnson
Architects IncKey Builders IncKnutson Construction
ServicesKomitt Concrete IncKraus-Anderson
Construction CompanyKreofsky Building
SuppliesKruse LumberKuntz Electric IncKwik Trip IncLeitzen Concrete
Products IncEd Lunn Construction
IncMarvin Windows amp
DoorsMavo Systems IncMcGhie amp Betts Inc
McGough ConstructionMEC Construction IncMEP AssociatesMerchants BankMerit Contracting IncMinnesota Energy
Resources CorporationMinnwest BankNickelson Painting IncOlmsted National BankOnSitePalmer Soderberg IncPella Windows amp DoorsPeoplersquos Energy
CooperativePompeii Painting IncPrehn Building Sales
IncPremier Bank RochesterProBuild Company LLCReliable Contractors
Inc Rochester Area
Appraisals LLCRochester Area
Economic Development Inc
Rochester Public Utilities
Rochester Ready Mix Concrete Co
Rochester Sign Service Inc
Rochester Title amp Escrow Company Inc
Ryan Electric of Rochester Inc
Schoeppner IncSchwab LLCSchwickertrsquos Tecta
America LLCStantecStructural Design
Group IncSuperior MechanicalTamarack Materials of
Rochester IncThink Mutual BankTonna Mechanical IncTSP Architects amp
EngineersTW Construction
Solutions LLCUnited RentalsThe Urban StudioUS BankValor Mechanical IncVeit CompaniesVertical Limit
ConstructionViking Automatic
Sprinkler CompanyViking Electric SupplyWeis Builders IncWells Fargo Bank
Minnesota NAWendland UtzWidseth Smith NoltingYaggy Colby Associates
BUILDERS COUNCILCOMMERCIAL
a d i v i s i o n o f R o c h e s t e r A r e a B u i l d e r s I n c
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
June MeetingCome to the June meeting and hear an in depth discussion of the Comprehensive Housing Needs Assessment for Olmsted County conducted by Maxfield Research Inc The study projects housing demand for submarkets in the Olmsted County Market Area from 2013 through 2030 It also provides recommendations on the amount and types of housing that could be built to satisfy demand from current and future residents over the next decade and beyond
June MEETINGDATE Wednesday June 4th 2014TIME Registration amp Networking at 700 AM Program at 730 AMPLACE Ramada Hotel amp Conference CenterPROGRAM Olmsted County Comprehensive Housing Needs AssessmentSPEAKERS Matt Mullins Vice President Maxfield Research Inc
wwwRochesterAreaBuilderscom20 | June 2014
2014 VALUATION 2013 VALUATION
New Residential Single Family Dwelling 25 5531411 39 9046592
Townhome Dwelling 0 0 0 0
Two-Family Houses 0 0 0 0
Multi-Family Bldgs 0 0 0 0
Manufactured Home 0 0 0 0 Existing Residential Deck Addition 19 107504 11 39350
Room Addition 3 278763 4 569729
Porch Additions 0 0 1 15925
Other Additions 0 0 0 0
Basement Finish 29 342255 27 294745
Alterations 50 516115 36 341383
Multi-Family Addition 0 0 0 0
Multi-Family Alterations 2 113000 5 40095 New Commercial Assembly (Church) 0 0 0 0
Assembly (General) 0 0 0 0
Assembly (RestaurantBar) 1 1561000 1 198000
Business 0 0 1 300000
Education 0 0 0 0
FactoryIndustrial 0 0 0 0
Institution 0 0 0 0
Mercantile 0 0 0 0
Miscelaneous 0 0 0 0
Utility (General) 1 130000 0 0
Residential (CareAssisted Living) 0 0 0 0
Storage (General) 1 45000 1 56000
Storage (Warehouse) 0 0 0 0 Existing CommercialAddition 8 5812413 1 3669000
Alterations 34 5984762 32 5633723
Structural Shell 0 0 0 0
ldquoWhite Boxrdquo 1 15000 0 0
Interior Demolition Only 3 48500 1 39775
Other Phased Permits 0 0 0 0
Other ConstructionBusiness Signs 15 106565 23 175223
Advertising Sign 1 18000 0 0
Footings amp Foundations 2 220000 0 0
Demolition 3 0
Rochester Building Permits April 2014
January 33 39 27 20 3 13 3 6 19 11
February 31 31 19 13 1 8 8 20 15 14
March 59 37 30 29 16 27 24 32 29 28
April 58 58 44 27 29 25 19 29 39 25
TOTAL 181 165 122 89 49 73 54 87 102 78
May 77 69 50 30 33 20 14 22 27
June 81 59 43 36 36 12 26 32 33
July 58 36 60 23 21 23 8 39 39
August 69 36 43 28 26 15 18 38 21
September 65 31 33 28 33 10 19 22 23
October 71 49 34 19 31 14 16 23 34
November 40 38 23 26 30 21 20 22 26
December 60 23 11 16 15 12 16 14 22
TOTAL 702 506 417 302 274 200 191 299 326 78
Single Family Homes
Year To Date Statistics 2014 2013 NO VALUATION NO VALUATION
Building Permits Issued to Date 617 99659586 576 55353067
Single Family Dwelling 78 19118519 102 23271991
Multi-Family Buildings Total Units 39 1 3702052 0 0
Trade Permits Issued to Date 2163 22421315 2077 19001370
Electrical 719 10304793 649 10630028
Electrical (Temp Service) 65 14350 79 23350
Mechanical 570 4962388 543 4383007
Gas Piping 135 348756 141 120700
Fireplace 113 303426 117 283801
Hydronic System 57 1939043 40 736592
Plumbing 504 4548559 508 2823892
Total Permits YTD 2780 122180901 2653 74354437
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
WwwRochesterAreaBuilderscomJune 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
MARCH 2014
New Residential NUMBER VALUATION
Single Family Detached 7 1027450
Existing Residential
Basement Finish 5 81500
Alterations 1 $500
ByronBuilding Permits
MARCH 2014
New Residential NUMBER VALUATION
Single Family 3 455000
Existing Residential NUMBER VALUATION
Heating 1 3600
Basement Finish 1 20000
Pine IslandBuilding Permits
wwwRochesterAreaBuilderscom22 | June 2014
Much has recently been made of the notion that China has enough serious structural problems with its economy that chances are good it will experience a ldquohard landingrdquo defined as economic growth quickly slowing from 75 today to the low single digits This slowdown would weaken commodity prices hurting developing nations and reduce Chinese imports of high-quality finished goods from developed nations also hurting the US Europe and Japan While the Chinese economy has problems many are chronic and I believe the government has sufficient resources to manage the acute ones and avoid a hard landing
The key problems the Chinese economy suffers from are threefold a profound overreliance on large trade surpluses massive government overinvestment in infrastructure and a weak financial system that has resulted in both bad loans made by irresponsible local and regional governments and a highly leveraged and lightly regulated shadow banking system (sound familiar) that may well implode
The first problem is fading away After running trade surpluses in the $45 billionyear range through 2003 they skyrocketed to $400 billionyear by the end of 2008 However that highpoint coincided with the Great Recession which resulted in a huge contraction in trade and simultaneously an effort by many nations to boost exports to help their domestic economies As a result Chinese trade surpluses have averaged about $300 billionyear (about two-thirds of that with the US) since early 2009 and show no discernable upward trend Moreover as the Chinese economy is about twice as big today as it was in 2005 the economic impact of the now smaller trade surpluses on the overall economy is much smaller
The second problem of roads to nowhere massive over building of plant leading to ruinous excess capacity along with the construction of uninhabited ghost towns is being rectified And rectified they can be because these destructive outcomes are the direct result of policies pursued by the central government that are now being overhauled GDP growth targets are being reduced artificially low interest rates earned by savers are likely to rise in the near future and the currency which has been profoundly undervalued is slowly appreciating Collectively these policies will curb wasteful overinvestment and slowly replace it with increased domestic consumption and reduced exports
As for the substantial dodgy debt on the books of local and regional governments and shadow banks due to weakening housing prices and raw land values that act as collateral for many loans here the problem is serious That said Chinarsquos debt is about 25 of GDP giving the central government ample room to borrow should it be necessary Moreover the central government is beginning to force local and regional governments to sell some of the $7 trillion in assets they own in an effort to shore up their financial condition
Moreover with $4 trillion in foreign reserves and the ability to weaken the Chinese currency at will to boost exports China has tools other nations donrsquot have Lastly expect Beijing to re-stimulate sagging housing markets by relaxing home-purchase requirements and local governments to augment this policy by giving residency benefits to out-of-towners to further boost demand Combining the above with looser monetary policy makes me think that those making key policy decisions the brightest minds in the nation will see to it that China comes through this relatively unscathed
Beijing Balancing 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
WwwRochesterAreaBuilderscomJune 2014 | 23
NONE
MEMBERSHIPS PENDINGNONE
The firms listed below have applied for membership in the Rochester Area Builders Any member who objects to admission of any applicant shall notify the RAB Board of Directors in writing of the objection before
the next Board of Directors meeting
MEMBERSHIP TOTAL 453RETENTION RATE 929
As of 43014
WE WELCOME THE FOLLOWING NEW MEMBERS IN APRIL
Membership Information
Membership Renewals as of 43014
One Year
Altra Federal Credit Union 2013JE Dunn Construction 2013The Kitchen Design Studio 2013West Bank 2013Xcel Energy 2013
Two to Four Years
Elias Construction LLC 2011Lacina Siding amp Windows Inc 2011Solar Connection Inc 2011Chladek Construction LLC 2010MEP Associates 2010Rochester Asphalt Inc 2010Wildwood Sports Bar and Grill 2010
Five to Nine Years
Beckleyrsquos Office Products 2009Beetles Bar amp Grill Inc 2008Data-Smart Computers Inc 2008HDR Architecture 2008Legends Concrete Inc 2007RCON Homes Inc 2007Michael Jack LLC 2006WA Insurance 2006Anderson Construction 2005
Ten to 19 Years
Scott Berberich Construction LLC 2004First General Services of SE MN 2003Todd Eidem Construction Inc 2002Ames Construction Inc 2001Expert Insulation Inc 2001HiMEC at Home 2001Habitat for Humanity - Rochester Area 2000Home Improvement Professionals Inc 1999
25 Years amp More
Countryside Builders LLC 1989Radcliffe Homes amp Remodeling 1988Thomas Tool amp Supply 1987Kreofsky Building Supplies 1985Tile Superstore amp More 1985Barrier Free Access Inc 1984RampM Development Company 1970
NEW APPLICANTS
FAT WILLYrsquoS BAR amp GRILL
4325 Maine Ave SERochester MN 55904Phone 507- 206-4301
Contact Bill HendersonAssociate Member
RestaurantBarSponsored by
David Kane Kane amp Johnson Architects Inc
KAHLER HOSPITALITY GROUP
20 2nd Avenue SWRochester MN 55902Phone 507- 280-6200
Contact Marnie GlynnAssociate Member
HotelSponsored byNone Listed
MANUFACTURERrsquoS BANK amp TRUST
2020 2nd Street SWRochester MN 55902Phone 507- 226-8460
Contact Thomas HeepkeAssociate Member
BankSponsored by
Sue Hanson Rochester Title amp Escrow Company Inc
SAWYER CONSTRUCTION SERVICES INC9472 65th Street NE
Elgin MN 55932Phone 507-272-1740Contact Marv Sawyer
Associate MemberLawn CareTree Service
Sponsored byChristy Buchan Energy Products amp Design Inc
wwwRochesterAreaBuilderscom24 | June 2014
Put your membershipto work nowMoney-saving discounts that benefit yourbusiness your employees and your family
wwwnahborgMA
National Association of Home Builders
R
wwwRochesterAreaBuilderscom6 | June 2014
What Green Building Expomdashan event for the
public
When Saturday September 20 2014
Where Cascade Meadow Wetlands and
Environmental Science Center
Time 9amndash 3pm
Who You If your business has anything to do with making a home more
energy efficient more sustainable sign up for a booth and we will review
Areas we are looking for
Buildings Health and Wellness Site Development Landscaping and Drain-
age
Cost $200mdashfor a measly $200 you get a 6 foot booth and countless mem-
bers of the public to talk to about your business
$50 to present The com-
topics to be presented
Signature Event Sponsors
EXHIBITORS NEEDED
GREENbuildingEXPO
GREENbuildingEXPO
C
M
Y
CM
MY
CY
CMY
K
RFP-pdf 5222014 13300 PM
WwwRochesterAreaBuilderscomJune 2014 | 7
Business
Contact Name
Nature of Business
Payment Method (Please Circle) Check Credit Card
Credit Card Number Security Code
Yes No
Signature Event Sponsors
faxing it to Rochester Area Builders at 507-282-6351
If you would like to mail in the form please mail it to
Rochester Area Builders
108 Elton Hills Ln NW
Rochester MN 55901
Please note that Rochester Area Builders will
ability of your business to the Green Building
respond to you by August 22 2014 with the
final decision Space is limited so sign up
fast
GREENbuildingEXPO
GREENbuildingEXPO
C
M
Y
CM
MY
CY
CMY
K
RFP - Registration-pdf 5222014 13237 PM
wwwRochesterAreaBuilderscom8 | June 2014
April GMMAssociation Scrapbook
WwwRochesterAreaBuilderscomJune 2014 | 9
Association ScrapbookMay Networking Night
wwwRochesterAreaBuilderscom10 | June 2014
Studs Struts amp StilettosAssociation Scrapbook
WwwRochesterAreaBuilderscomJune 2014 | 11
Association Scrapbook
Click here to see the entire gallery of photos including all the designs on our Facebook Page
Studs Struts amp Stilettos
wwwRochesterAreaBuilderscom12 | June 2014
To Session or not to Session
That is the question that Matt answers
in this monthrsquos
Itrsquos time for another installment of ldquoHey Matt whatrsquos up with thatrdquo This weekrsquos topic is the recently closed MN Legislative Session
ldquoHey Matt I heard that this Legislative Session was being called an lsquoUnsessionrsquo Whatrsquos up with thatrdquo
Whew what a fast and busy legislative session the ldquounsessionrdquo turned out to be The Governor earlier this year requested that lawmakers take this session to focus on two main things the Bonding Bill and cleaning up Minnesotarsquos Laws Because the Governor asked this of lawmakers the session was dubbed the ldquounsessionrdquo While lawmakers did clean up a lot of language in existing laws and repealed unnecessary ones they were busy making strides in a lot of other areas as well Passing laws on topics as far ranging as Bullying and Legalized Medical Marijuana this session was anything BUT the ldquounsessionrdquo
Two things I wanted to cover Fire Sprinklers and the Bonding Bill First the Bonding Bill The Bonding Bill is basically a giant construction bill giving communities money for projects that they wouldnrsquot be able to afford without state assistance The reason it is called the ldquoBonding Billrdquo is because the state borrows money for these projects This includes projects like the Mayo Civic Center rehabilitation and expansion This year lawmakers passed over a $1 Billion bonding bill and construction package Rochester
received $35 Million in funding for the Mayo Civic Center This was the biggest single project in the Bonding Bill and kudos to the city for all their hard work on finally getting this included in the Bonding Bill
Fire Sprinklers We found ourselves at the legislature again trying to prevent a single family home indoor fire sprinkler mandate This has been an uphill battle from the beginning The Governor has twice vetoed stand-alone legislation that was passed with bipartisan support We received a lack-luster ruling from our administrative law judge hearing in February All the odds were against us so it was a bit of a miracle that we became the political bargaining chip that we did Here is how it happened
Senator Senjem had previously unsuccessfully tried to add an amendment to the Bonding Bill regarding the prohibition of a fire sprinkler mandate However he was able to craft an amendment that was added to the language in the Senatersquos version of the Bonding Bill This is important because in a Bonding Bill the Governor has the power to what is called ldquoline-item vetordquo certain projects This means that the Governor can take the Bonding Bill and scratch certain projects from it after the legislature has passed it through both houses of the legislature Rochester should remember when Governor Pawlenty line-itemed the Mayo Civic Center funding from the 2010 bonding bill But I digress While the Governor is able to veto certain projects the
WwwRochesterAreaBuilderscomJune 2014 | 13
Governor does not have the power to line-item veto policy in the Bonding bill This means that if the Governor wanted to prevent the legislature from passing a prohibition on the mandate of fire sprinklers in single family homes he would have to veto the ENTIRE $1 BILLION BONDING BILL Politically we thought there was no way he would do something like that especially in an election year so that is why what Senator Senjem did was so important for us
Now for what happened next The House and the Senate both have to pass versions of a Bonding Bill and then it usually has to be resolved in what is called the conference committee It was apparent the House of Representatives was not going to include the fire sprinkler language Senator Senjem had gotten inserted into the Senate version Then the Governor held a press conference the sole purpose of which was to say that he would veto the Bonding Bill if it included any language regarding the prohibition of a fire sprinkler mandate in single family homes This was the moment we had been waiting for Money cannot buy the kind of press you get from a Governor threatening to veto a $1 Billion bonding bill All of a sudden the public wanted to know what was going on with these fire sprinklers After years of fighting the conversation had reached the public That is the good news The bad news is that because the legislature was operating under a tight schedule the DFL leadership of the Senate and the House negotiated a bonding bill that did
not include language regarding fire sprinklers So we were officially out of the bonding bill
While it is disappointing we didnrsquot get the result we wanted we got a lot of free press out of the situation which is invaluable when trying to get the public on your side of an issue The final date when fire sprinklers will be required in single family homes larger than 4500 sq ft is unknown but it appears it will be sometime in early 2015
What a session the ldquounsessionrdquo turned out to be
If you have any questions ideas or anything at all you want to talk to me about give me a call Or email
Matt
Hey Matt I heard that this Legislative Session was being called an ldquoUnsessionrdquo Whatrsquos up with that
wwwRochesterAreaBuilderscom14 | June 2014
Erosion and Sediment Control at Residential Construction SitesSpring is here and so is the rain As you move into construction mode this year be sure your site adequately provides erosion and sediment control (ESC) ndash no matter how big or small the storm Planning and good practices are essential for keeping sediment on site and preventing enforcement actions Follow the steps below to be prepared for the next rain
bull Before breaking ground review the approved Grading Plan for your site to verify grades on your lot and on adjacent properties (if you have questions on the Grading Plan please contact us)
bull Review the approved grading plan for your site and the adjacent properties to be sure that drainage easements ditches slopes and conveyance areas have correct grades and positive drainage
bull Preserve existing vegetation and topsoil on-site preserving existing vegetation is especially important around the perimeter By preserving existing vegetation this may save you from installing additional perimeter sediment control measures and saving topsoil can save you and the homeowner money
bull Insure that perimeter and internal ESC BMPs are properly anchored and functioning Perimeter sediment control measures are required at all downslope locations on-site
bull Provide stabilized vehicle entrances and exits at your site Options to prevent track-out of sediment onto streets include rock entrances wood chips and mud mats Be certain that your subcontractors are aware of and use the designated access points
bull All area catch basins should have appropriate inlet protection installed in order to prevent soil and debris from entering the storm sewer and draining to our receiving waters Sediment must be regularly removed from inlet protection to prevent street flooding
bull Develop and utilize a concrete washout management plan and facility or return concrete
POOR ESC
WwwRochesterAreaBuilderscomJune 2014 | 15
The MPCA recently informed the City of Rochester that no comments were received on the Cityrsquos new storm water permit application during the public notice period which ended May 1st Therefore MPCA will extend permit coverage to the City under the August 2013 permit and the Cityrsquos effective date will be Thursday May 8th
Under the new 2013 permit the City must continue the permit activities already in place and meet the added requirements The new tasks that the City must address before May 7 2015 include
bull Completing a storm water management plan updatebull Preparing a new storm water ordinance that incorporates the new permit requirementsbull Updating all standard operating procedures and preparing new enforcement response proceduresbull Assessing the Cityrsquos status in meeting Total Maximum Daily Load Waste Load Allocationsbull Developing a pond effectiveness assessment planbull Enhancing the City facilities and operations inventorybull Creating an employee and business technical education program
Of particular interest to RAB members will be the new ordinance The City expects to have a draft ready for public review by October Any questions about the new permit can be directed to Barb Huberty at bhubertyrochestermngov
UPDATE New State Storm Water Permit
washout to the concrete vendor No liquid or solid concrete waste from washout operations can be in contact with the ground
bull Keep a clean construction site One of the biggest complaints the City receives about construction sites is the construction debris and litter Create and use a garbage corral or dumpster and empty them before they overflow Ask contractors to compact their debris so it doesnrsquot blow out of the container on windy days
bull Place topsoil and vegetate all exposed soil areas as soon as fine grading is complete The City of Rochester standards require a minimum of 4rdquo of topsoil on disturbed areas donrsquot substitute subsoil for topsoil
bull Learn more about useful storm water management practices and state construction storm water permit requirements at the MPCA website wwwpcastatemnuswaterstormwater
Rochester residents want good water quality and quality construction Improper ESC on construction sites has a direct negative impact on our waterways Be proactive and take the time to properly inspect and maintain your ESC best management practices to stabilize your construction site and prevent unintentional water pollution
For more information about this topic please contact Mike Kraszewski (328-2431) or Kevin Kuisle (328-2457) at the Rochester Public Works Department
GOOD ESC
wwwRochesterAreaBuilderscom16 | June 2014
WwwRochesterAreaBuilderscomJune 2014 | 17
Committee UpdatesNOMINATING COMMITTEECHAIRPERSON John Eckerman Boldt Construction
The Nominating Committee will be meeting soon to discuss nominations for the 2015 Board of Directors as well as chairpersons for our many committees and councils If you would like to recommend a member for a position or if you would like to recommend yourself please call John at the office 282-7698 We are always looking for new people to be involved in the management of our association
SHOWCASE COMMITTEECHAIRPERSON Brandon Vagt XRG Concepts
The Fall Showcase of Homes is scheduled for September 13th 14th and 20th 21st Have you started building a home to enter in the Showcase Itrsquos a wonderful opportunity to have your home seen by thousands of potential customers Information packets have been mailed to residential builders and the first of three deadlines is June 19th
Committee ChairpersonsAMBASSADORSGreg Hird First Alliance Credit UnionAWARDSTBABUILDING MAINTENANCETJ Schutz Advanced Building Center IncBUILDING SAFETY ADVISORYMickey Elias Elias Construction LLCCOMMUNITY RELATIONSTony Kunz Hillerrsquos Flooring AmericaDISPUTE RESOLUTIONJohn Kuntz Kuntz Electric IncEDUCATIONVacantEXECUTIVEKevin Worden Rochester Area Habitat for HumanityFASHION SHOWKaren Blissenbach Design Studio BFINANCECarla Kilpatrick Home Federal Savings BankGOLF OUTINGLindsey Rippentrop Olmsted National BankGOVERNMENT AFFAIRSJohn Eckerman The Boldt CompanyGREEN BUILDINGKelly OrsquoMarro XRG Concepts LLCHOME SHOW ndash 2013Jeff Kalmes Hillers Flooring AmericaMARKETINGRob Easthouse Electrical Solutions amp ServiceMEMBERSHIP amp RETENTIONDan Bochman Kruse LumberNOMINATINGKerk Johnson Schwickertrsquos Tecta America LLC PERSONNELKevin Worden Rochester Area Habitat for HumanityPROGRAMDan Plizga Weis Builders IncPUBLIC WORKS ADVISORYJeff Broberg McGhie amp Betts - a Division of WSB amp Associates IncSHOWCASE OF HOMESBrandon Vagt XRG Concepts LLCSPIKE CLUBJay Burke Heartwood Homes of Rochester IncSPORTING CLAYSJames Coyle Kane amp Johnson Architects Inc
CouncilsBER EXECUTIVE COMMITTEEJJ Webster Kraus-Anderson Construction CompanyCBC EXECUTIVE COMMITTEEChris Terry Knutson Construction ServicesDEVELOPMENT COUNCILJohn Sipple Rochester Area Appraisals LLCREMODELERS EXECUTIVE COMMITTEESam Peyton Kingrsquos Flooring LLCREMODELERS TOURKaren Blissenbach Design Studio B
wwwRochesterAreaBuilderscom18 | June 2014
May MeetingThank you to Kingrsquos Flooring for sponsor-
ing the May Meeting held at the RAB Office We had a nice turnout and
enjoyed the beautiful weather as we sat outside and networked and enjoyed the lunch that Kingrsquos Flooring provided We
hope to see you all again in June
construction fashion expose
WwwRochesterAreaBuilderscomJune 2014 | 19
Members2014 Commercial Builders Council107 Members as of 123113AB Systems IncAccord Electric IncAdvanced DisposalAlpha Video amp AudioAssociated BankAlvin E Benike IncThe Blue Book
of Building amp Construction
The Boldt CompanyBraun Intertec
CorporationBriese Iron Works IncBrock White CompanyCO Brown AgencyCambriaCarpet OneCentury Painting amp
Decorating LLCChosen Valley Testing
IncConstruction
Partnership IncCounselor Realty of
Rochester IncCounty Materials
CorporationCRW architecture +
design group incCustom AlarmCustom
Communications IncDunlap amp SeegerEastwood Bankeci llcElcor ConstructionEnergy Panel StructuresEnergy Products amp
Design IncEnventisExpert Insulation IncFerguson EnterprisesFriedrich Construction
IncGerhardsGoodin CompanyHaley Comfort Systems
(Authorized FireSide Dealer)
WL Hall CompanyHGA Architects and
EngineersHDR ArchitectureHeartman InsuranceHillerrsquos Flooring AmericaHiMec at HomeHome Federal Savings
BankHunt Electric
CorporationKampM Glass CompanyKampS Heating AC
Plumbing amp ElectricalKane amp Johnson
Architects IncKey Builders IncKnutson Construction
ServicesKomitt Concrete IncKraus-Anderson
Construction CompanyKreofsky Building
SuppliesKruse LumberKuntz Electric IncKwik Trip IncLeitzen Concrete
Products IncEd Lunn Construction
IncMarvin Windows amp
DoorsMavo Systems IncMcGhie amp Betts Inc
McGough ConstructionMEC Construction IncMEP AssociatesMerchants BankMerit Contracting IncMinnesota Energy
Resources CorporationMinnwest BankNickelson Painting IncOlmsted National BankOnSitePalmer Soderberg IncPella Windows amp DoorsPeoplersquos Energy
CooperativePompeii Painting IncPrehn Building Sales
IncPremier Bank RochesterProBuild Company LLCReliable Contractors
Inc Rochester Area
Appraisals LLCRochester Area
Economic Development Inc
Rochester Public Utilities
Rochester Ready Mix Concrete Co
Rochester Sign Service Inc
Rochester Title amp Escrow Company Inc
Ryan Electric of Rochester Inc
Schoeppner IncSchwab LLCSchwickertrsquos Tecta
America LLCStantecStructural Design
Group IncSuperior MechanicalTamarack Materials of
Rochester IncThink Mutual BankTonna Mechanical IncTSP Architects amp
EngineersTW Construction
Solutions LLCUnited RentalsThe Urban StudioUS BankValor Mechanical IncVeit CompaniesVertical Limit
ConstructionViking Automatic
Sprinkler CompanyViking Electric SupplyWeis Builders IncWells Fargo Bank
Minnesota NAWendland UtzWidseth Smith NoltingYaggy Colby Associates
BUILDERS COUNCILCOMMERCIAL
a d i v i s i o n o f R o c h e s t e r A r e a B u i l d e r s I n c
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
June MeetingCome to the June meeting and hear an in depth discussion of the Comprehensive Housing Needs Assessment for Olmsted County conducted by Maxfield Research Inc The study projects housing demand for submarkets in the Olmsted County Market Area from 2013 through 2030 It also provides recommendations on the amount and types of housing that could be built to satisfy demand from current and future residents over the next decade and beyond
June MEETINGDATE Wednesday June 4th 2014TIME Registration amp Networking at 700 AM Program at 730 AMPLACE Ramada Hotel amp Conference CenterPROGRAM Olmsted County Comprehensive Housing Needs AssessmentSPEAKERS Matt Mullins Vice President Maxfield Research Inc
wwwRochesterAreaBuilderscom20 | June 2014
2014 VALUATION 2013 VALUATION
New Residential Single Family Dwelling 25 5531411 39 9046592
Townhome Dwelling 0 0 0 0
Two-Family Houses 0 0 0 0
Multi-Family Bldgs 0 0 0 0
Manufactured Home 0 0 0 0 Existing Residential Deck Addition 19 107504 11 39350
Room Addition 3 278763 4 569729
Porch Additions 0 0 1 15925
Other Additions 0 0 0 0
Basement Finish 29 342255 27 294745
Alterations 50 516115 36 341383
Multi-Family Addition 0 0 0 0
Multi-Family Alterations 2 113000 5 40095 New Commercial Assembly (Church) 0 0 0 0
Assembly (General) 0 0 0 0
Assembly (RestaurantBar) 1 1561000 1 198000
Business 0 0 1 300000
Education 0 0 0 0
FactoryIndustrial 0 0 0 0
Institution 0 0 0 0
Mercantile 0 0 0 0
Miscelaneous 0 0 0 0
Utility (General) 1 130000 0 0
Residential (CareAssisted Living) 0 0 0 0
Storage (General) 1 45000 1 56000
Storage (Warehouse) 0 0 0 0 Existing CommercialAddition 8 5812413 1 3669000
Alterations 34 5984762 32 5633723
Structural Shell 0 0 0 0
ldquoWhite Boxrdquo 1 15000 0 0
Interior Demolition Only 3 48500 1 39775
Other Phased Permits 0 0 0 0
Other ConstructionBusiness Signs 15 106565 23 175223
Advertising Sign 1 18000 0 0
Footings amp Foundations 2 220000 0 0
Demolition 3 0
Rochester Building Permits April 2014
January 33 39 27 20 3 13 3 6 19 11
February 31 31 19 13 1 8 8 20 15 14
March 59 37 30 29 16 27 24 32 29 28
April 58 58 44 27 29 25 19 29 39 25
TOTAL 181 165 122 89 49 73 54 87 102 78
May 77 69 50 30 33 20 14 22 27
June 81 59 43 36 36 12 26 32 33
July 58 36 60 23 21 23 8 39 39
August 69 36 43 28 26 15 18 38 21
September 65 31 33 28 33 10 19 22 23
October 71 49 34 19 31 14 16 23 34
November 40 38 23 26 30 21 20 22 26
December 60 23 11 16 15 12 16 14 22
TOTAL 702 506 417 302 274 200 191 299 326 78
Single Family Homes
Year To Date Statistics 2014 2013 NO VALUATION NO VALUATION
Building Permits Issued to Date 617 99659586 576 55353067
Single Family Dwelling 78 19118519 102 23271991
Multi-Family Buildings Total Units 39 1 3702052 0 0
Trade Permits Issued to Date 2163 22421315 2077 19001370
Electrical 719 10304793 649 10630028
Electrical (Temp Service) 65 14350 79 23350
Mechanical 570 4962388 543 4383007
Gas Piping 135 348756 141 120700
Fireplace 113 303426 117 283801
Hydronic System 57 1939043 40 736592
Plumbing 504 4548559 508 2823892
Total Permits YTD 2780 122180901 2653 74354437
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
WwwRochesterAreaBuilderscomJune 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
MARCH 2014
New Residential NUMBER VALUATION
Single Family Detached 7 1027450
Existing Residential
Basement Finish 5 81500
Alterations 1 $500
ByronBuilding Permits
MARCH 2014
New Residential NUMBER VALUATION
Single Family 3 455000
Existing Residential NUMBER VALUATION
Heating 1 3600
Basement Finish 1 20000
Pine IslandBuilding Permits
wwwRochesterAreaBuilderscom22 | June 2014
Much has recently been made of the notion that China has enough serious structural problems with its economy that chances are good it will experience a ldquohard landingrdquo defined as economic growth quickly slowing from 75 today to the low single digits This slowdown would weaken commodity prices hurting developing nations and reduce Chinese imports of high-quality finished goods from developed nations also hurting the US Europe and Japan While the Chinese economy has problems many are chronic and I believe the government has sufficient resources to manage the acute ones and avoid a hard landing
The key problems the Chinese economy suffers from are threefold a profound overreliance on large trade surpluses massive government overinvestment in infrastructure and a weak financial system that has resulted in both bad loans made by irresponsible local and regional governments and a highly leveraged and lightly regulated shadow banking system (sound familiar) that may well implode
The first problem is fading away After running trade surpluses in the $45 billionyear range through 2003 they skyrocketed to $400 billionyear by the end of 2008 However that highpoint coincided with the Great Recession which resulted in a huge contraction in trade and simultaneously an effort by many nations to boost exports to help their domestic economies As a result Chinese trade surpluses have averaged about $300 billionyear (about two-thirds of that with the US) since early 2009 and show no discernable upward trend Moreover as the Chinese economy is about twice as big today as it was in 2005 the economic impact of the now smaller trade surpluses on the overall economy is much smaller
The second problem of roads to nowhere massive over building of plant leading to ruinous excess capacity along with the construction of uninhabited ghost towns is being rectified And rectified they can be because these destructive outcomes are the direct result of policies pursued by the central government that are now being overhauled GDP growth targets are being reduced artificially low interest rates earned by savers are likely to rise in the near future and the currency which has been profoundly undervalued is slowly appreciating Collectively these policies will curb wasteful overinvestment and slowly replace it with increased domestic consumption and reduced exports
As for the substantial dodgy debt on the books of local and regional governments and shadow banks due to weakening housing prices and raw land values that act as collateral for many loans here the problem is serious That said Chinarsquos debt is about 25 of GDP giving the central government ample room to borrow should it be necessary Moreover the central government is beginning to force local and regional governments to sell some of the $7 trillion in assets they own in an effort to shore up their financial condition
Moreover with $4 trillion in foreign reserves and the ability to weaken the Chinese currency at will to boost exports China has tools other nations donrsquot have Lastly expect Beijing to re-stimulate sagging housing markets by relaxing home-purchase requirements and local governments to augment this policy by giving residency benefits to out-of-towners to further boost demand Combining the above with looser monetary policy makes me think that those making key policy decisions the brightest minds in the nation will see to it that China comes through this relatively unscathed
Beijing Balancing 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
WwwRochesterAreaBuilderscomJune 2014 | 23
NONE
MEMBERSHIPS PENDINGNONE
The firms listed below have applied for membership in the Rochester Area Builders Any member who objects to admission of any applicant shall notify the RAB Board of Directors in writing of the objection before
the next Board of Directors meeting
MEMBERSHIP TOTAL 453RETENTION RATE 929
As of 43014
WE WELCOME THE FOLLOWING NEW MEMBERS IN APRIL
Membership Information
Membership Renewals as of 43014
One Year
Altra Federal Credit Union 2013JE Dunn Construction 2013The Kitchen Design Studio 2013West Bank 2013Xcel Energy 2013
Two to Four Years
Elias Construction LLC 2011Lacina Siding amp Windows Inc 2011Solar Connection Inc 2011Chladek Construction LLC 2010MEP Associates 2010Rochester Asphalt Inc 2010Wildwood Sports Bar and Grill 2010
Five to Nine Years
Beckleyrsquos Office Products 2009Beetles Bar amp Grill Inc 2008Data-Smart Computers Inc 2008HDR Architecture 2008Legends Concrete Inc 2007RCON Homes Inc 2007Michael Jack LLC 2006WA Insurance 2006Anderson Construction 2005
Ten to 19 Years
Scott Berberich Construction LLC 2004First General Services of SE MN 2003Todd Eidem Construction Inc 2002Ames Construction Inc 2001Expert Insulation Inc 2001HiMEC at Home 2001Habitat for Humanity - Rochester Area 2000Home Improvement Professionals Inc 1999
25 Years amp More
Countryside Builders LLC 1989Radcliffe Homes amp Remodeling 1988Thomas Tool amp Supply 1987Kreofsky Building Supplies 1985Tile Superstore amp More 1985Barrier Free Access Inc 1984RampM Development Company 1970
NEW APPLICANTS
FAT WILLYrsquoS BAR amp GRILL
4325 Maine Ave SERochester MN 55904Phone 507- 206-4301
Contact Bill HendersonAssociate Member
RestaurantBarSponsored by
David Kane Kane amp Johnson Architects Inc
KAHLER HOSPITALITY GROUP
20 2nd Avenue SWRochester MN 55902Phone 507- 280-6200
Contact Marnie GlynnAssociate Member
HotelSponsored byNone Listed
MANUFACTURERrsquoS BANK amp TRUST
2020 2nd Street SWRochester MN 55902Phone 507- 226-8460
Contact Thomas HeepkeAssociate Member
BankSponsored by
Sue Hanson Rochester Title amp Escrow Company Inc
SAWYER CONSTRUCTION SERVICES INC9472 65th Street NE
Elgin MN 55932Phone 507-272-1740Contact Marv Sawyer
Associate MemberLawn CareTree Service
Sponsored byChristy Buchan Energy Products amp Design Inc
wwwRochesterAreaBuilderscom24 | June 2014
Put your membershipto work nowMoney-saving discounts that benefit yourbusiness your employees and your family
wwwnahborgMA
National Association of Home Builders
R
WwwRochesterAreaBuilderscomJune 2014 | 7
Business
Contact Name
Nature of Business
Payment Method (Please Circle) Check Credit Card
Credit Card Number Security Code
Yes No
Signature Event Sponsors
faxing it to Rochester Area Builders at 507-282-6351
If you would like to mail in the form please mail it to
Rochester Area Builders
108 Elton Hills Ln NW
Rochester MN 55901
Please note that Rochester Area Builders will
ability of your business to the Green Building
respond to you by August 22 2014 with the
final decision Space is limited so sign up
fast
GREENbuildingEXPO
GREENbuildingEXPO
C
M
Y
CM
MY
CY
CMY
K
RFP - Registration-pdf 5222014 13237 PM
wwwRochesterAreaBuilderscom8 | June 2014
April GMMAssociation Scrapbook
WwwRochesterAreaBuilderscomJune 2014 | 9
Association ScrapbookMay Networking Night
wwwRochesterAreaBuilderscom10 | June 2014
Studs Struts amp StilettosAssociation Scrapbook
WwwRochesterAreaBuilderscomJune 2014 | 11
Association Scrapbook
Click here to see the entire gallery of photos including all the designs on our Facebook Page
Studs Struts amp Stilettos
wwwRochesterAreaBuilderscom12 | June 2014
To Session or not to Session
That is the question that Matt answers
in this monthrsquos
Itrsquos time for another installment of ldquoHey Matt whatrsquos up with thatrdquo This weekrsquos topic is the recently closed MN Legislative Session
ldquoHey Matt I heard that this Legislative Session was being called an lsquoUnsessionrsquo Whatrsquos up with thatrdquo
Whew what a fast and busy legislative session the ldquounsessionrdquo turned out to be The Governor earlier this year requested that lawmakers take this session to focus on two main things the Bonding Bill and cleaning up Minnesotarsquos Laws Because the Governor asked this of lawmakers the session was dubbed the ldquounsessionrdquo While lawmakers did clean up a lot of language in existing laws and repealed unnecessary ones they were busy making strides in a lot of other areas as well Passing laws on topics as far ranging as Bullying and Legalized Medical Marijuana this session was anything BUT the ldquounsessionrdquo
Two things I wanted to cover Fire Sprinklers and the Bonding Bill First the Bonding Bill The Bonding Bill is basically a giant construction bill giving communities money for projects that they wouldnrsquot be able to afford without state assistance The reason it is called the ldquoBonding Billrdquo is because the state borrows money for these projects This includes projects like the Mayo Civic Center rehabilitation and expansion This year lawmakers passed over a $1 Billion bonding bill and construction package Rochester
received $35 Million in funding for the Mayo Civic Center This was the biggest single project in the Bonding Bill and kudos to the city for all their hard work on finally getting this included in the Bonding Bill
Fire Sprinklers We found ourselves at the legislature again trying to prevent a single family home indoor fire sprinkler mandate This has been an uphill battle from the beginning The Governor has twice vetoed stand-alone legislation that was passed with bipartisan support We received a lack-luster ruling from our administrative law judge hearing in February All the odds were against us so it was a bit of a miracle that we became the political bargaining chip that we did Here is how it happened
Senator Senjem had previously unsuccessfully tried to add an amendment to the Bonding Bill regarding the prohibition of a fire sprinkler mandate However he was able to craft an amendment that was added to the language in the Senatersquos version of the Bonding Bill This is important because in a Bonding Bill the Governor has the power to what is called ldquoline-item vetordquo certain projects This means that the Governor can take the Bonding Bill and scratch certain projects from it after the legislature has passed it through both houses of the legislature Rochester should remember when Governor Pawlenty line-itemed the Mayo Civic Center funding from the 2010 bonding bill But I digress While the Governor is able to veto certain projects the
WwwRochesterAreaBuilderscomJune 2014 | 13
Governor does not have the power to line-item veto policy in the Bonding bill This means that if the Governor wanted to prevent the legislature from passing a prohibition on the mandate of fire sprinklers in single family homes he would have to veto the ENTIRE $1 BILLION BONDING BILL Politically we thought there was no way he would do something like that especially in an election year so that is why what Senator Senjem did was so important for us
Now for what happened next The House and the Senate both have to pass versions of a Bonding Bill and then it usually has to be resolved in what is called the conference committee It was apparent the House of Representatives was not going to include the fire sprinkler language Senator Senjem had gotten inserted into the Senate version Then the Governor held a press conference the sole purpose of which was to say that he would veto the Bonding Bill if it included any language regarding the prohibition of a fire sprinkler mandate in single family homes This was the moment we had been waiting for Money cannot buy the kind of press you get from a Governor threatening to veto a $1 Billion bonding bill All of a sudden the public wanted to know what was going on with these fire sprinklers After years of fighting the conversation had reached the public That is the good news The bad news is that because the legislature was operating under a tight schedule the DFL leadership of the Senate and the House negotiated a bonding bill that did
not include language regarding fire sprinklers So we were officially out of the bonding bill
While it is disappointing we didnrsquot get the result we wanted we got a lot of free press out of the situation which is invaluable when trying to get the public on your side of an issue The final date when fire sprinklers will be required in single family homes larger than 4500 sq ft is unknown but it appears it will be sometime in early 2015
What a session the ldquounsessionrdquo turned out to be
If you have any questions ideas or anything at all you want to talk to me about give me a call Or email
Matt
Hey Matt I heard that this Legislative Session was being called an ldquoUnsessionrdquo Whatrsquos up with that
wwwRochesterAreaBuilderscom14 | June 2014
Erosion and Sediment Control at Residential Construction SitesSpring is here and so is the rain As you move into construction mode this year be sure your site adequately provides erosion and sediment control (ESC) ndash no matter how big or small the storm Planning and good practices are essential for keeping sediment on site and preventing enforcement actions Follow the steps below to be prepared for the next rain
bull Before breaking ground review the approved Grading Plan for your site to verify grades on your lot and on adjacent properties (if you have questions on the Grading Plan please contact us)
bull Review the approved grading plan for your site and the adjacent properties to be sure that drainage easements ditches slopes and conveyance areas have correct grades and positive drainage
bull Preserve existing vegetation and topsoil on-site preserving existing vegetation is especially important around the perimeter By preserving existing vegetation this may save you from installing additional perimeter sediment control measures and saving topsoil can save you and the homeowner money
bull Insure that perimeter and internal ESC BMPs are properly anchored and functioning Perimeter sediment control measures are required at all downslope locations on-site
bull Provide stabilized vehicle entrances and exits at your site Options to prevent track-out of sediment onto streets include rock entrances wood chips and mud mats Be certain that your subcontractors are aware of and use the designated access points
bull All area catch basins should have appropriate inlet protection installed in order to prevent soil and debris from entering the storm sewer and draining to our receiving waters Sediment must be regularly removed from inlet protection to prevent street flooding
bull Develop and utilize a concrete washout management plan and facility or return concrete
POOR ESC
WwwRochesterAreaBuilderscomJune 2014 | 15
The MPCA recently informed the City of Rochester that no comments were received on the Cityrsquos new storm water permit application during the public notice period which ended May 1st Therefore MPCA will extend permit coverage to the City under the August 2013 permit and the Cityrsquos effective date will be Thursday May 8th
Under the new 2013 permit the City must continue the permit activities already in place and meet the added requirements The new tasks that the City must address before May 7 2015 include
bull Completing a storm water management plan updatebull Preparing a new storm water ordinance that incorporates the new permit requirementsbull Updating all standard operating procedures and preparing new enforcement response proceduresbull Assessing the Cityrsquos status in meeting Total Maximum Daily Load Waste Load Allocationsbull Developing a pond effectiveness assessment planbull Enhancing the City facilities and operations inventorybull Creating an employee and business technical education program
Of particular interest to RAB members will be the new ordinance The City expects to have a draft ready for public review by October Any questions about the new permit can be directed to Barb Huberty at bhubertyrochestermngov
UPDATE New State Storm Water Permit
washout to the concrete vendor No liquid or solid concrete waste from washout operations can be in contact with the ground
bull Keep a clean construction site One of the biggest complaints the City receives about construction sites is the construction debris and litter Create and use a garbage corral or dumpster and empty them before they overflow Ask contractors to compact their debris so it doesnrsquot blow out of the container on windy days
bull Place topsoil and vegetate all exposed soil areas as soon as fine grading is complete The City of Rochester standards require a minimum of 4rdquo of topsoil on disturbed areas donrsquot substitute subsoil for topsoil
bull Learn more about useful storm water management practices and state construction storm water permit requirements at the MPCA website wwwpcastatemnuswaterstormwater
Rochester residents want good water quality and quality construction Improper ESC on construction sites has a direct negative impact on our waterways Be proactive and take the time to properly inspect and maintain your ESC best management practices to stabilize your construction site and prevent unintentional water pollution
For more information about this topic please contact Mike Kraszewski (328-2431) or Kevin Kuisle (328-2457) at the Rochester Public Works Department
GOOD ESC
wwwRochesterAreaBuilderscom16 | June 2014
WwwRochesterAreaBuilderscomJune 2014 | 17
Committee UpdatesNOMINATING COMMITTEECHAIRPERSON John Eckerman Boldt Construction
The Nominating Committee will be meeting soon to discuss nominations for the 2015 Board of Directors as well as chairpersons for our many committees and councils If you would like to recommend a member for a position or if you would like to recommend yourself please call John at the office 282-7698 We are always looking for new people to be involved in the management of our association
SHOWCASE COMMITTEECHAIRPERSON Brandon Vagt XRG Concepts
The Fall Showcase of Homes is scheduled for September 13th 14th and 20th 21st Have you started building a home to enter in the Showcase Itrsquos a wonderful opportunity to have your home seen by thousands of potential customers Information packets have been mailed to residential builders and the first of three deadlines is June 19th
Committee ChairpersonsAMBASSADORSGreg Hird First Alliance Credit UnionAWARDSTBABUILDING MAINTENANCETJ Schutz Advanced Building Center IncBUILDING SAFETY ADVISORYMickey Elias Elias Construction LLCCOMMUNITY RELATIONSTony Kunz Hillerrsquos Flooring AmericaDISPUTE RESOLUTIONJohn Kuntz Kuntz Electric IncEDUCATIONVacantEXECUTIVEKevin Worden Rochester Area Habitat for HumanityFASHION SHOWKaren Blissenbach Design Studio BFINANCECarla Kilpatrick Home Federal Savings BankGOLF OUTINGLindsey Rippentrop Olmsted National BankGOVERNMENT AFFAIRSJohn Eckerman The Boldt CompanyGREEN BUILDINGKelly OrsquoMarro XRG Concepts LLCHOME SHOW ndash 2013Jeff Kalmes Hillers Flooring AmericaMARKETINGRob Easthouse Electrical Solutions amp ServiceMEMBERSHIP amp RETENTIONDan Bochman Kruse LumberNOMINATINGKerk Johnson Schwickertrsquos Tecta America LLC PERSONNELKevin Worden Rochester Area Habitat for HumanityPROGRAMDan Plizga Weis Builders IncPUBLIC WORKS ADVISORYJeff Broberg McGhie amp Betts - a Division of WSB amp Associates IncSHOWCASE OF HOMESBrandon Vagt XRG Concepts LLCSPIKE CLUBJay Burke Heartwood Homes of Rochester IncSPORTING CLAYSJames Coyle Kane amp Johnson Architects Inc
CouncilsBER EXECUTIVE COMMITTEEJJ Webster Kraus-Anderson Construction CompanyCBC EXECUTIVE COMMITTEEChris Terry Knutson Construction ServicesDEVELOPMENT COUNCILJohn Sipple Rochester Area Appraisals LLCREMODELERS EXECUTIVE COMMITTEESam Peyton Kingrsquos Flooring LLCREMODELERS TOURKaren Blissenbach Design Studio B
wwwRochesterAreaBuilderscom18 | June 2014
May MeetingThank you to Kingrsquos Flooring for sponsor-
ing the May Meeting held at the RAB Office We had a nice turnout and
enjoyed the beautiful weather as we sat outside and networked and enjoyed the lunch that Kingrsquos Flooring provided We
hope to see you all again in June
construction fashion expose
WwwRochesterAreaBuilderscomJune 2014 | 19
Members2014 Commercial Builders Council107 Members as of 123113AB Systems IncAccord Electric IncAdvanced DisposalAlpha Video amp AudioAssociated BankAlvin E Benike IncThe Blue Book
of Building amp Construction
The Boldt CompanyBraun Intertec
CorporationBriese Iron Works IncBrock White CompanyCO Brown AgencyCambriaCarpet OneCentury Painting amp
Decorating LLCChosen Valley Testing
IncConstruction
Partnership IncCounselor Realty of
Rochester IncCounty Materials
CorporationCRW architecture +
design group incCustom AlarmCustom
Communications IncDunlap amp SeegerEastwood Bankeci llcElcor ConstructionEnergy Panel StructuresEnergy Products amp
Design IncEnventisExpert Insulation IncFerguson EnterprisesFriedrich Construction
IncGerhardsGoodin CompanyHaley Comfort Systems
(Authorized FireSide Dealer)
WL Hall CompanyHGA Architects and
EngineersHDR ArchitectureHeartman InsuranceHillerrsquos Flooring AmericaHiMec at HomeHome Federal Savings
BankHunt Electric
CorporationKampM Glass CompanyKampS Heating AC
Plumbing amp ElectricalKane amp Johnson
Architects IncKey Builders IncKnutson Construction
ServicesKomitt Concrete IncKraus-Anderson
Construction CompanyKreofsky Building
SuppliesKruse LumberKuntz Electric IncKwik Trip IncLeitzen Concrete
Products IncEd Lunn Construction
IncMarvin Windows amp
DoorsMavo Systems IncMcGhie amp Betts Inc
McGough ConstructionMEC Construction IncMEP AssociatesMerchants BankMerit Contracting IncMinnesota Energy
Resources CorporationMinnwest BankNickelson Painting IncOlmsted National BankOnSitePalmer Soderberg IncPella Windows amp DoorsPeoplersquos Energy
CooperativePompeii Painting IncPrehn Building Sales
IncPremier Bank RochesterProBuild Company LLCReliable Contractors
Inc Rochester Area
Appraisals LLCRochester Area
Economic Development Inc
Rochester Public Utilities
Rochester Ready Mix Concrete Co
Rochester Sign Service Inc
Rochester Title amp Escrow Company Inc
Ryan Electric of Rochester Inc
Schoeppner IncSchwab LLCSchwickertrsquos Tecta
America LLCStantecStructural Design
Group IncSuperior MechanicalTamarack Materials of
Rochester IncThink Mutual BankTonna Mechanical IncTSP Architects amp
EngineersTW Construction
Solutions LLCUnited RentalsThe Urban StudioUS BankValor Mechanical IncVeit CompaniesVertical Limit
ConstructionViking Automatic
Sprinkler CompanyViking Electric SupplyWeis Builders IncWells Fargo Bank
Minnesota NAWendland UtzWidseth Smith NoltingYaggy Colby Associates
BUILDERS COUNCILCOMMERCIAL
a d i v i s i o n o f R o c h e s t e r A r e a B u i l d e r s I n c
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
June MeetingCome to the June meeting and hear an in depth discussion of the Comprehensive Housing Needs Assessment for Olmsted County conducted by Maxfield Research Inc The study projects housing demand for submarkets in the Olmsted County Market Area from 2013 through 2030 It also provides recommendations on the amount and types of housing that could be built to satisfy demand from current and future residents over the next decade and beyond
June MEETINGDATE Wednesday June 4th 2014TIME Registration amp Networking at 700 AM Program at 730 AMPLACE Ramada Hotel amp Conference CenterPROGRAM Olmsted County Comprehensive Housing Needs AssessmentSPEAKERS Matt Mullins Vice President Maxfield Research Inc
wwwRochesterAreaBuilderscom20 | June 2014
2014 VALUATION 2013 VALUATION
New Residential Single Family Dwelling 25 5531411 39 9046592
Townhome Dwelling 0 0 0 0
Two-Family Houses 0 0 0 0
Multi-Family Bldgs 0 0 0 0
Manufactured Home 0 0 0 0 Existing Residential Deck Addition 19 107504 11 39350
Room Addition 3 278763 4 569729
Porch Additions 0 0 1 15925
Other Additions 0 0 0 0
Basement Finish 29 342255 27 294745
Alterations 50 516115 36 341383
Multi-Family Addition 0 0 0 0
Multi-Family Alterations 2 113000 5 40095 New Commercial Assembly (Church) 0 0 0 0
Assembly (General) 0 0 0 0
Assembly (RestaurantBar) 1 1561000 1 198000
Business 0 0 1 300000
Education 0 0 0 0
FactoryIndustrial 0 0 0 0
Institution 0 0 0 0
Mercantile 0 0 0 0
Miscelaneous 0 0 0 0
Utility (General) 1 130000 0 0
Residential (CareAssisted Living) 0 0 0 0
Storage (General) 1 45000 1 56000
Storage (Warehouse) 0 0 0 0 Existing CommercialAddition 8 5812413 1 3669000
Alterations 34 5984762 32 5633723
Structural Shell 0 0 0 0
ldquoWhite Boxrdquo 1 15000 0 0
Interior Demolition Only 3 48500 1 39775
Other Phased Permits 0 0 0 0
Other ConstructionBusiness Signs 15 106565 23 175223
Advertising Sign 1 18000 0 0
Footings amp Foundations 2 220000 0 0
Demolition 3 0
Rochester Building Permits April 2014
January 33 39 27 20 3 13 3 6 19 11
February 31 31 19 13 1 8 8 20 15 14
March 59 37 30 29 16 27 24 32 29 28
April 58 58 44 27 29 25 19 29 39 25
TOTAL 181 165 122 89 49 73 54 87 102 78
May 77 69 50 30 33 20 14 22 27
June 81 59 43 36 36 12 26 32 33
July 58 36 60 23 21 23 8 39 39
August 69 36 43 28 26 15 18 38 21
September 65 31 33 28 33 10 19 22 23
October 71 49 34 19 31 14 16 23 34
November 40 38 23 26 30 21 20 22 26
December 60 23 11 16 15 12 16 14 22
TOTAL 702 506 417 302 274 200 191 299 326 78
Single Family Homes
Year To Date Statistics 2014 2013 NO VALUATION NO VALUATION
Building Permits Issued to Date 617 99659586 576 55353067
Single Family Dwelling 78 19118519 102 23271991
Multi-Family Buildings Total Units 39 1 3702052 0 0
Trade Permits Issued to Date 2163 22421315 2077 19001370
Electrical 719 10304793 649 10630028
Electrical (Temp Service) 65 14350 79 23350
Mechanical 570 4962388 543 4383007
Gas Piping 135 348756 141 120700
Fireplace 113 303426 117 283801
Hydronic System 57 1939043 40 736592
Plumbing 504 4548559 508 2823892
Total Permits YTD 2780 122180901 2653 74354437
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
WwwRochesterAreaBuilderscomJune 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
MARCH 2014
New Residential NUMBER VALUATION
Single Family Detached 7 1027450
Existing Residential
Basement Finish 5 81500
Alterations 1 $500
ByronBuilding Permits
MARCH 2014
New Residential NUMBER VALUATION
Single Family 3 455000
Existing Residential NUMBER VALUATION
Heating 1 3600
Basement Finish 1 20000
Pine IslandBuilding Permits
wwwRochesterAreaBuilderscom22 | June 2014
Much has recently been made of the notion that China has enough serious structural problems with its economy that chances are good it will experience a ldquohard landingrdquo defined as economic growth quickly slowing from 75 today to the low single digits This slowdown would weaken commodity prices hurting developing nations and reduce Chinese imports of high-quality finished goods from developed nations also hurting the US Europe and Japan While the Chinese economy has problems many are chronic and I believe the government has sufficient resources to manage the acute ones and avoid a hard landing
The key problems the Chinese economy suffers from are threefold a profound overreliance on large trade surpluses massive government overinvestment in infrastructure and a weak financial system that has resulted in both bad loans made by irresponsible local and regional governments and a highly leveraged and lightly regulated shadow banking system (sound familiar) that may well implode
The first problem is fading away After running trade surpluses in the $45 billionyear range through 2003 they skyrocketed to $400 billionyear by the end of 2008 However that highpoint coincided with the Great Recession which resulted in a huge contraction in trade and simultaneously an effort by many nations to boost exports to help their domestic economies As a result Chinese trade surpluses have averaged about $300 billionyear (about two-thirds of that with the US) since early 2009 and show no discernable upward trend Moreover as the Chinese economy is about twice as big today as it was in 2005 the economic impact of the now smaller trade surpluses on the overall economy is much smaller
The second problem of roads to nowhere massive over building of plant leading to ruinous excess capacity along with the construction of uninhabited ghost towns is being rectified And rectified they can be because these destructive outcomes are the direct result of policies pursued by the central government that are now being overhauled GDP growth targets are being reduced artificially low interest rates earned by savers are likely to rise in the near future and the currency which has been profoundly undervalued is slowly appreciating Collectively these policies will curb wasteful overinvestment and slowly replace it with increased domestic consumption and reduced exports
As for the substantial dodgy debt on the books of local and regional governments and shadow banks due to weakening housing prices and raw land values that act as collateral for many loans here the problem is serious That said Chinarsquos debt is about 25 of GDP giving the central government ample room to borrow should it be necessary Moreover the central government is beginning to force local and regional governments to sell some of the $7 trillion in assets they own in an effort to shore up their financial condition
Moreover with $4 trillion in foreign reserves and the ability to weaken the Chinese currency at will to boost exports China has tools other nations donrsquot have Lastly expect Beijing to re-stimulate sagging housing markets by relaxing home-purchase requirements and local governments to augment this policy by giving residency benefits to out-of-towners to further boost demand Combining the above with looser monetary policy makes me think that those making key policy decisions the brightest minds in the nation will see to it that China comes through this relatively unscathed
Beijing Balancing 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
WwwRochesterAreaBuilderscomJune 2014 | 23
NONE
MEMBERSHIPS PENDINGNONE
The firms listed below have applied for membership in the Rochester Area Builders Any member who objects to admission of any applicant shall notify the RAB Board of Directors in writing of the objection before
the next Board of Directors meeting
MEMBERSHIP TOTAL 453RETENTION RATE 929
As of 43014
WE WELCOME THE FOLLOWING NEW MEMBERS IN APRIL
Membership Information
Membership Renewals as of 43014
One Year
Altra Federal Credit Union 2013JE Dunn Construction 2013The Kitchen Design Studio 2013West Bank 2013Xcel Energy 2013
Two to Four Years
Elias Construction LLC 2011Lacina Siding amp Windows Inc 2011Solar Connection Inc 2011Chladek Construction LLC 2010MEP Associates 2010Rochester Asphalt Inc 2010Wildwood Sports Bar and Grill 2010
Five to Nine Years
Beckleyrsquos Office Products 2009Beetles Bar amp Grill Inc 2008Data-Smart Computers Inc 2008HDR Architecture 2008Legends Concrete Inc 2007RCON Homes Inc 2007Michael Jack LLC 2006WA Insurance 2006Anderson Construction 2005
Ten to 19 Years
Scott Berberich Construction LLC 2004First General Services of SE MN 2003Todd Eidem Construction Inc 2002Ames Construction Inc 2001Expert Insulation Inc 2001HiMEC at Home 2001Habitat for Humanity - Rochester Area 2000Home Improvement Professionals Inc 1999
25 Years amp More
Countryside Builders LLC 1989Radcliffe Homes amp Remodeling 1988Thomas Tool amp Supply 1987Kreofsky Building Supplies 1985Tile Superstore amp More 1985Barrier Free Access Inc 1984RampM Development Company 1970
NEW APPLICANTS
FAT WILLYrsquoS BAR amp GRILL
4325 Maine Ave SERochester MN 55904Phone 507- 206-4301
Contact Bill HendersonAssociate Member
RestaurantBarSponsored by
David Kane Kane amp Johnson Architects Inc
KAHLER HOSPITALITY GROUP
20 2nd Avenue SWRochester MN 55902Phone 507- 280-6200
Contact Marnie GlynnAssociate Member
HotelSponsored byNone Listed
MANUFACTURERrsquoS BANK amp TRUST
2020 2nd Street SWRochester MN 55902Phone 507- 226-8460
Contact Thomas HeepkeAssociate Member
BankSponsored by
Sue Hanson Rochester Title amp Escrow Company Inc
SAWYER CONSTRUCTION SERVICES INC9472 65th Street NE
Elgin MN 55932Phone 507-272-1740Contact Marv Sawyer
Associate MemberLawn CareTree Service
Sponsored byChristy Buchan Energy Products amp Design Inc
wwwRochesterAreaBuilderscom24 | June 2014
Put your membershipto work nowMoney-saving discounts that benefit yourbusiness your employees and your family
wwwnahborgMA
National Association of Home Builders
R
wwwRochesterAreaBuilderscom8 | June 2014
April GMMAssociation Scrapbook
WwwRochesterAreaBuilderscomJune 2014 | 9
Association ScrapbookMay Networking Night
wwwRochesterAreaBuilderscom10 | June 2014
Studs Struts amp StilettosAssociation Scrapbook
WwwRochesterAreaBuilderscomJune 2014 | 11
Association Scrapbook
Click here to see the entire gallery of photos including all the designs on our Facebook Page
Studs Struts amp Stilettos
wwwRochesterAreaBuilderscom12 | June 2014
To Session or not to Session
That is the question that Matt answers
in this monthrsquos
Itrsquos time for another installment of ldquoHey Matt whatrsquos up with thatrdquo This weekrsquos topic is the recently closed MN Legislative Session
ldquoHey Matt I heard that this Legislative Session was being called an lsquoUnsessionrsquo Whatrsquos up with thatrdquo
Whew what a fast and busy legislative session the ldquounsessionrdquo turned out to be The Governor earlier this year requested that lawmakers take this session to focus on two main things the Bonding Bill and cleaning up Minnesotarsquos Laws Because the Governor asked this of lawmakers the session was dubbed the ldquounsessionrdquo While lawmakers did clean up a lot of language in existing laws and repealed unnecessary ones they were busy making strides in a lot of other areas as well Passing laws on topics as far ranging as Bullying and Legalized Medical Marijuana this session was anything BUT the ldquounsessionrdquo
Two things I wanted to cover Fire Sprinklers and the Bonding Bill First the Bonding Bill The Bonding Bill is basically a giant construction bill giving communities money for projects that they wouldnrsquot be able to afford without state assistance The reason it is called the ldquoBonding Billrdquo is because the state borrows money for these projects This includes projects like the Mayo Civic Center rehabilitation and expansion This year lawmakers passed over a $1 Billion bonding bill and construction package Rochester
received $35 Million in funding for the Mayo Civic Center This was the biggest single project in the Bonding Bill and kudos to the city for all their hard work on finally getting this included in the Bonding Bill
Fire Sprinklers We found ourselves at the legislature again trying to prevent a single family home indoor fire sprinkler mandate This has been an uphill battle from the beginning The Governor has twice vetoed stand-alone legislation that was passed with bipartisan support We received a lack-luster ruling from our administrative law judge hearing in February All the odds were against us so it was a bit of a miracle that we became the political bargaining chip that we did Here is how it happened
Senator Senjem had previously unsuccessfully tried to add an amendment to the Bonding Bill regarding the prohibition of a fire sprinkler mandate However he was able to craft an amendment that was added to the language in the Senatersquos version of the Bonding Bill This is important because in a Bonding Bill the Governor has the power to what is called ldquoline-item vetordquo certain projects This means that the Governor can take the Bonding Bill and scratch certain projects from it after the legislature has passed it through both houses of the legislature Rochester should remember when Governor Pawlenty line-itemed the Mayo Civic Center funding from the 2010 bonding bill But I digress While the Governor is able to veto certain projects the
WwwRochesterAreaBuilderscomJune 2014 | 13
Governor does not have the power to line-item veto policy in the Bonding bill This means that if the Governor wanted to prevent the legislature from passing a prohibition on the mandate of fire sprinklers in single family homes he would have to veto the ENTIRE $1 BILLION BONDING BILL Politically we thought there was no way he would do something like that especially in an election year so that is why what Senator Senjem did was so important for us
Now for what happened next The House and the Senate both have to pass versions of a Bonding Bill and then it usually has to be resolved in what is called the conference committee It was apparent the House of Representatives was not going to include the fire sprinkler language Senator Senjem had gotten inserted into the Senate version Then the Governor held a press conference the sole purpose of which was to say that he would veto the Bonding Bill if it included any language regarding the prohibition of a fire sprinkler mandate in single family homes This was the moment we had been waiting for Money cannot buy the kind of press you get from a Governor threatening to veto a $1 Billion bonding bill All of a sudden the public wanted to know what was going on with these fire sprinklers After years of fighting the conversation had reached the public That is the good news The bad news is that because the legislature was operating under a tight schedule the DFL leadership of the Senate and the House negotiated a bonding bill that did
not include language regarding fire sprinklers So we were officially out of the bonding bill
While it is disappointing we didnrsquot get the result we wanted we got a lot of free press out of the situation which is invaluable when trying to get the public on your side of an issue The final date when fire sprinklers will be required in single family homes larger than 4500 sq ft is unknown but it appears it will be sometime in early 2015
What a session the ldquounsessionrdquo turned out to be
If you have any questions ideas or anything at all you want to talk to me about give me a call Or email
Matt
Hey Matt I heard that this Legislative Session was being called an ldquoUnsessionrdquo Whatrsquos up with that
wwwRochesterAreaBuilderscom14 | June 2014
Erosion and Sediment Control at Residential Construction SitesSpring is here and so is the rain As you move into construction mode this year be sure your site adequately provides erosion and sediment control (ESC) ndash no matter how big or small the storm Planning and good practices are essential for keeping sediment on site and preventing enforcement actions Follow the steps below to be prepared for the next rain
bull Before breaking ground review the approved Grading Plan for your site to verify grades on your lot and on adjacent properties (if you have questions on the Grading Plan please contact us)
bull Review the approved grading plan for your site and the adjacent properties to be sure that drainage easements ditches slopes and conveyance areas have correct grades and positive drainage
bull Preserve existing vegetation and topsoil on-site preserving existing vegetation is especially important around the perimeter By preserving existing vegetation this may save you from installing additional perimeter sediment control measures and saving topsoil can save you and the homeowner money
bull Insure that perimeter and internal ESC BMPs are properly anchored and functioning Perimeter sediment control measures are required at all downslope locations on-site
bull Provide stabilized vehicle entrances and exits at your site Options to prevent track-out of sediment onto streets include rock entrances wood chips and mud mats Be certain that your subcontractors are aware of and use the designated access points
bull All area catch basins should have appropriate inlet protection installed in order to prevent soil and debris from entering the storm sewer and draining to our receiving waters Sediment must be regularly removed from inlet protection to prevent street flooding
bull Develop and utilize a concrete washout management plan and facility or return concrete
POOR ESC
WwwRochesterAreaBuilderscomJune 2014 | 15
The MPCA recently informed the City of Rochester that no comments were received on the Cityrsquos new storm water permit application during the public notice period which ended May 1st Therefore MPCA will extend permit coverage to the City under the August 2013 permit and the Cityrsquos effective date will be Thursday May 8th
Under the new 2013 permit the City must continue the permit activities already in place and meet the added requirements The new tasks that the City must address before May 7 2015 include
bull Completing a storm water management plan updatebull Preparing a new storm water ordinance that incorporates the new permit requirementsbull Updating all standard operating procedures and preparing new enforcement response proceduresbull Assessing the Cityrsquos status in meeting Total Maximum Daily Load Waste Load Allocationsbull Developing a pond effectiveness assessment planbull Enhancing the City facilities and operations inventorybull Creating an employee and business technical education program
Of particular interest to RAB members will be the new ordinance The City expects to have a draft ready for public review by October Any questions about the new permit can be directed to Barb Huberty at bhubertyrochestermngov
UPDATE New State Storm Water Permit
washout to the concrete vendor No liquid or solid concrete waste from washout operations can be in contact with the ground
bull Keep a clean construction site One of the biggest complaints the City receives about construction sites is the construction debris and litter Create and use a garbage corral or dumpster and empty them before they overflow Ask contractors to compact their debris so it doesnrsquot blow out of the container on windy days
bull Place topsoil and vegetate all exposed soil areas as soon as fine grading is complete The City of Rochester standards require a minimum of 4rdquo of topsoil on disturbed areas donrsquot substitute subsoil for topsoil
bull Learn more about useful storm water management practices and state construction storm water permit requirements at the MPCA website wwwpcastatemnuswaterstormwater
Rochester residents want good water quality and quality construction Improper ESC on construction sites has a direct negative impact on our waterways Be proactive and take the time to properly inspect and maintain your ESC best management practices to stabilize your construction site and prevent unintentional water pollution
For more information about this topic please contact Mike Kraszewski (328-2431) or Kevin Kuisle (328-2457) at the Rochester Public Works Department
GOOD ESC
wwwRochesterAreaBuilderscom16 | June 2014
WwwRochesterAreaBuilderscomJune 2014 | 17
Committee UpdatesNOMINATING COMMITTEECHAIRPERSON John Eckerman Boldt Construction
The Nominating Committee will be meeting soon to discuss nominations for the 2015 Board of Directors as well as chairpersons for our many committees and councils If you would like to recommend a member for a position or if you would like to recommend yourself please call John at the office 282-7698 We are always looking for new people to be involved in the management of our association
SHOWCASE COMMITTEECHAIRPERSON Brandon Vagt XRG Concepts
The Fall Showcase of Homes is scheduled for September 13th 14th and 20th 21st Have you started building a home to enter in the Showcase Itrsquos a wonderful opportunity to have your home seen by thousands of potential customers Information packets have been mailed to residential builders and the first of three deadlines is June 19th
Committee ChairpersonsAMBASSADORSGreg Hird First Alliance Credit UnionAWARDSTBABUILDING MAINTENANCETJ Schutz Advanced Building Center IncBUILDING SAFETY ADVISORYMickey Elias Elias Construction LLCCOMMUNITY RELATIONSTony Kunz Hillerrsquos Flooring AmericaDISPUTE RESOLUTIONJohn Kuntz Kuntz Electric IncEDUCATIONVacantEXECUTIVEKevin Worden Rochester Area Habitat for HumanityFASHION SHOWKaren Blissenbach Design Studio BFINANCECarla Kilpatrick Home Federal Savings BankGOLF OUTINGLindsey Rippentrop Olmsted National BankGOVERNMENT AFFAIRSJohn Eckerman The Boldt CompanyGREEN BUILDINGKelly OrsquoMarro XRG Concepts LLCHOME SHOW ndash 2013Jeff Kalmes Hillers Flooring AmericaMARKETINGRob Easthouse Electrical Solutions amp ServiceMEMBERSHIP amp RETENTIONDan Bochman Kruse LumberNOMINATINGKerk Johnson Schwickertrsquos Tecta America LLC PERSONNELKevin Worden Rochester Area Habitat for HumanityPROGRAMDan Plizga Weis Builders IncPUBLIC WORKS ADVISORYJeff Broberg McGhie amp Betts - a Division of WSB amp Associates IncSHOWCASE OF HOMESBrandon Vagt XRG Concepts LLCSPIKE CLUBJay Burke Heartwood Homes of Rochester IncSPORTING CLAYSJames Coyle Kane amp Johnson Architects Inc
CouncilsBER EXECUTIVE COMMITTEEJJ Webster Kraus-Anderson Construction CompanyCBC EXECUTIVE COMMITTEEChris Terry Knutson Construction ServicesDEVELOPMENT COUNCILJohn Sipple Rochester Area Appraisals LLCREMODELERS EXECUTIVE COMMITTEESam Peyton Kingrsquos Flooring LLCREMODELERS TOURKaren Blissenbach Design Studio B
wwwRochesterAreaBuilderscom18 | June 2014
May MeetingThank you to Kingrsquos Flooring for sponsor-
ing the May Meeting held at the RAB Office We had a nice turnout and
enjoyed the beautiful weather as we sat outside and networked and enjoyed the lunch that Kingrsquos Flooring provided We
hope to see you all again in June
construction fashion expose
WwwRochesterAreaBuilderscomJune 2014 | 19
Members2014 Commercial Builders Council107 Members as of 123113AB Systems IncAccord Electric IncAdvanced DisposalAlpha Video amp AudioAssociated BankAlvin E Benike IncThe Blue Book
of Building amp Construction
The Boldt CompanyBraun Intertec
CorporationBriese Iron Works IncBrock White CompanyCO Brown AgencyCambriaCarpet OneCentury Painting amp
Decorating LLCChosen Valley Testing
IncConstruction
Partnership IncCounselor Realty of
Rochester IncCounty Materials
CorporationCRW architecture +
design group incCustom AlarmCustom
Communications IncDunlap amp SeegerEastwood Bankeci llcElcor ConstructionEnergy Panel StructuresEnergy Products amp
Design IncEnventisExpert Insulation IncFerguson EnterprisesFriedrich Construction
IncGerhardsGoodin CompanyHaley Comfort Systems
(Authorized FireSide Dealer)
WL Hall CompanyHGA Architects and
EngineersHDR ArchitectureHeartman InsuranceHillerrsquos Flooring AmericaHiMec at HomeHome Federal Savings
BankHunt Electric
CorporationKampM Glass CompanyKampS Heating AC
Plumbing amp ElectricalKane amp Johnson
Architects IncKey Builders IncKnutson Construction
ServicesKomitt Concrete IncKraus-Anderson
Construction CompanyKreofsky Building
SuppliesKruse LumberKuntz Electric IncKwik Trip IncLeitzen Concrete
Products IncEd Lunn Construction
IncMarvin Windows amp
DoorsMavo Systems IncMcGhie amp Betts Inc
McGough ConstructionMEC Construction IncMEP AssociatesMerchants BankMerit Contracting IncMinnesota Energy
Resources CorporationMinnwest BankNickelson Painting IncOlmsted National BankOnSitePalmer Soderberg IncPella Windows amp DoorsPeoplersquos Energy
CooperativePompeii Painting IncPrehn Building Sales
IncPremier Bank RochesterProBuild Company LLCReliable Contractors
Inc Rochester Area
Appraisals LLCRochester Area
Economic Development Inc
Rochester Public Utilities
Rochester Ready Mix Concrete Co
Rochester Sign Service Inc
Rochester Title amp Escrow Company Inc
Ryan Electric of Rochester Inc
Schoeppner IncSchwab LLCSchwickertrsquos Tecta
America LLCStantecStructural Design
Group IncSuperior MechanicalTamarack Materials of
Rochester IncThink Mutual BankTonna Mechanical IncTSP Architects amp
EngineersTW Construction
Solutions LLCUnited RentalsThe Urban StudioUS BankValor Mechanical IncVeit CompaniesVertical Limit
ConstructionViking Automatic
Sprinkler CompanyViking Electric SupplyWeis Builders IncWells Fargo Bank
Minnesota NAWendland UtzWidseth Smith NoltingYaggy Colby Associates
BUILDERS COUNCILCOMMERCIAL
a d i v i s i o n o f R o c h e s t e r A r e a B u i l d e r s I n c
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
June MeetingCome to the June meeting and hear an in depth discussion of the Comprehensive Housing Needs Assessment for Olmsted County conducted by Maxfield Research Inc The study projects housing demand for submarkets in the Olmsted County Market Area from 2013 through 2030 It also provides recommendations on the amount and types of housing that could be built to satisfy demand from current and future residents over the next decade and beyond
June MEETINGDATE Wednesday June 4th 2014TIME Registration amp Networking at 700 AM Program at 730 AMPLACE Ramada Hotel amp Conference CenterPROGRAM Olmsted County Comprehensive Housing Needs AssessmentSPEAKERS Matt Mullins Vice President Maxfield Research Inc
wwwRochesterAreaBuilderscom20 | June 2014
2014 VALUATION 2013 VALUATION
New Residential Single Family Dwelling 25 5531411 39 9046592
Townhome Dwelling 0 0 0 0
Two-Family Houses 0 0 0 0
Multi-Family Bldgs 0 0 0 0
Manufactured Home 0 0 0 0 Existing Residential Deck Addition 19 107504 11 39350
Room Addition 3 278763 4 569729
Porch Additions 0 0 1 15925
Other Additions 0 0 0 0
Basement Finish 29 342255 27 294745
Alterations 50 516115 36 341383
Multi-Family Addition 0 0 0 0
Multi-Family Alterations 2 113000 5 40095 New Commercial Assembly (Church) 0 0 0 0
Assembly (General) 0 0 0 0
Assembly (RestaurantBar) 1 1561000 1 198000
Business 0 0 1 300000
Education 0 0 0 0
FactoryIndustrial 0 0 0 0
Institution 0 0 0 0
Mercantile 0 0 0 0
Miscelaneous 0 0 0 0
Utility (General) 1 130000 0 0
Residential (CareAssisted Living) 0 0 0 0
Storage (General) 1 45000 1 56000
Storage (Warehouse) 0 0 0 0 Existing CommercialAddition 8 5812413 1 3669000
Alterations 34 5984762 32 5633723
Structural Shell 0 0 0 0
ldquoWhite Boxrdquo 1 15000 0 0
Interior Demolition Only 3 48500 1 39775
Other Phased Permits 0 0 0 0
Other ConstructionBusiness Signs 15 106565 23 175223
Advertising Sign 1 18000 0 0
Footings amp Foundations 2 220000 0 0
Demolition 3 0
Rochester Building Permits April 2014
January 33 39 27 20 3 13 3 6 19 11
February 31 31 19 13 1 8 8 20 15 14
March 59 37 30 29 16 27 24 32 29 28
April 58 58 44 27 29 25 19 29 39 25
TOTAL 181 165 122 89 49 73 54 87 102 78
May 77 69 50 30 33 20 14 22 27
June 81 59 43 36 36 12 26 32 33
July 58 36 60 23 21 23 8 39 39
August 69 36 43 28 26 15 18 38 21
September 65 31 33 28 33 10 19 22 23
October 71 49 34 19 31 14 16 23 34
November 40 38 23 26 30 21 20 22 26
December 60 23 11 16 15 12 16 14 22
TOTAL 702 506 417 302 274 200 191 299 326 78
Single Family Homes
Year To Date Statistics 2014 2013 NO VALUATION NO VALUATION
Building Permits Issued to Date 617 99659586 576 55353067
Single Family Dwelling 78 19118519 102 23271991
Multi-Family Buildings Total Units 39 1 3702052 0 0
Trade Permits Issued to Date 2163 22421315 2077 19001370
Electrical 719 10304793 649 10630028
Electrical (Temp Service) 65 14350 79 23350
Mechanical 570 4962388 543 4383007
Gas Piping 135 348756 141 120700
Fireplace 113 303426 117 283801
Hydronic System 57 1939043 40 736592
Plumbing 504 4548559 508 2823892
Total Permits YTD 2780 122180901 2653 74354437
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
WwwRochesterAreaBuilderscomJune 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
MARCH 2014
New Residential NUMBER VALUATION
Single Family Detached 7 1027450
Existing Residential
Basement Finish 5 81500
Alterations 1 $500
ByronBuilding Permits
MARCH 2014
New Residential NUMBER VALUATION
Single Family 3 455000
Existing Residential NUMBER VALUATION
Heating 1 3600
Basement Finish 1 20000
Pine IslandBuilding Permits
wwwRochesterAreaBuilderscom22 | June 2014
Much has recently been made of the notion that China has enough serious structural problems with its economy that chances are good it will experience a ldquohard landingrdquo defined as economic growth quickly slowing from 75 today to the low single digits This slowdown would weaken commodity prices hurting developing nations and reduce Chinese imports of high-quality finished goods from developed nations also hurting the US Europe and Japan While the Chinese economy has problems many are chronic and I believe the government has sufficient resources to manage the acute ones and avoid a hard landing
The key problems the Chinese economy suffers from are threefold a profound overreliance on large trade surpluses massive government overinvestment in infrastructure and a weak financial system that has resulted in both bad loans made by irresponsible local and regional governments and a highly leveraged and lightly regulated shadow banking system (sound familiar) that may well implode
The first problem is fading away After running trade surpluses in the $45 billionyear range through 2003 they skyrocketed to $400 billionyear by the end of 2008 However that highpoint coincided with the Great Recession which resulted in a huge contraction in trade and simultaneously an effort by many nations to boost exports to help their domestic economies As a result Chinese trade surpluses have averaged about $300 billionyear (about two-thirds of that with the US) since early 2009 and show no discernable upward trend Moreover as the Chinese economy is about twice as big today as it was in 2005 the economic impact of the now smaller trade surpluses on the overall economy is much smaller
The second problem of roads to nowhere massive over building of plant leading to ruinous excess capacity along with the construction of uninhabited ghost towns is being rectified And rectified they can be because these destructive outcomes are the direct result of policies pursued by the central government that are now being overhauled GDP growth targets are being reduced artificially low interest rates earned by savers are likely to rise in the near future and the currency which has been profoundly undervalued is slowly appreciating Collectively these policies will curb wasteful overinvestment and slowly replace it with increased domestic consumption and reduced exports
As for the substantial dodgy debt on the books of local and regional governments and shadow banks due to weakening housing prices and raw land values that act as collateral for many loans here the problem is serious That said Chinarsquos debt is about 25 of GDP giving the central government ample room to borrow should it be necessary Moreover the central government is beginning to force local and regional governments to sell some of the $7 trillion in assets they own in an effort to shore up their financial condition
Moreover with $4 trillion in foreign reserves and the ability to weaken the Chinese currency at will to boost exports China has tools other nations donrsquot have Lastly expect Beijing to re-stimulate sagging housing markets by relaxing home-purchase requirements and local governments to augment this policy by giving residency benefits to out-of-towners to further boost demand Combining the above with looser monetary policy makes me think that those making key policy decisions the brightest minds in the nation will see to it that China comes through this relatively unscathed
Beijing Balancing 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
WwwRochesterAreaBuilderscomJune 2014 | 23
NONE
MEMBERSHIPS PENDINGNONE
The firms listed below have applied for membership in the Rochester Area Builders Any member who objects to admission of any applicant shall notify the RAB Board of Directors in writing of the objection before
the next Board of Directors meeting
MEMBERSHIP TOTAL 453RETENTION RATE 929
As of 43014
WE WELCOME THE FOLLOWING NEW MEMBERS IN APRIL
Membership Information
Membership Renewals as of 43014
One Year
Altra Federal Credit Union 2013JE Dunn Construction 2013The Kitchen Design Studio 2013West Bank 2013Xcel Energy 2013
Two to Four Years
Elias Construction LLC 2011Lacina Siding amp Windows Inc 2011Solar Connection Inc 2011Chladek Construction LLC 2010MEP Associates 2010Rochester Asphalt Inc 2010Wildwood Sports Bar and Grill 2010
Five to Nine Years
Beckleyrsquos Office Products 2009Beetles Bar amp Grill Inc 2008Data-Smart Computers Inc 2008HDR Architecture 2008Legends Concrete Inc 2007RCON Homes Inc 2007Michael Jack LLC 2006WA Insurance 2006Anderson Construction 2005
Ten to 19 Years
Scott Berberich Construction LLC 2004First General Services of SE MN 2003Todd Eidem Construction Inc 2002Ames Construction Inc 2001Expert Insulation Inc 2001HiMEC at Home 2001Habitat for Humanity - Rochester Area 2000Home Improvement Professionals Inc 1999
25 Years amp More
Countryside Builders LLC 1989Radcliffe Homes amp Remodeling 1988Thomas Tool amp Supply 1987Kreofsky Building Supplies 1985Tile Superstore amp More 1985Barrier Free Access Inc 1984RampM Development Company 1970
NEW APPLICANTS
FAT WILLYrsquoS BAR amp GRILL
4325 Maine Ave SERochester MN 55904Phone 507- 206-4301
Contact Bill HendersonAssociate Member
RestaurantBarSponsored by
David Kane Kane amp Johnson Architects Inc
KAHLER HOSPITALITY GROUP
20 2nd Avenue SWRochester MN 55902Phone 507- 280-6200
Contact Marnie GlynnAssociate Member
HotelSponsored byNone Listed
MANUFACTURERrsquoS BANK amp TRUST
2020 2nd Street SWRochester MN 55902Phone 507- 226-8460
Contact Thomas HeepkeAssociate Member
BankSponsored by
Sue Hanson Rochester Title amp Escrow Company Inc
SAWYER CONSTRUCTION SERVICES INC9472 65th Street NE
Elgin MN 55932Phone 507-272-1740Contact Marv Sawyer
Associate MemberLawn CareTree Service
Sponsored byChristy Buchan Energy Products amp Design Inc
wwwRochesterAreaBuilderscom24 | June 2014
Put your membershipto work nowMoney-saving discounts that benefit yourbusiness your employees and your family
wwwnahborgMA
National Association of Home Builders
R
WwwRochesterAreaBuilderscomJune 2014 | 9
Association ScrapbookMay Networking Night
wwwRochesterAreaBuilderscom10 | June 2014
Studs Struts amp StilettosAssociation Scrapbook
WwwRochesterAreaBuilderscomJune 2014 | 11
Association Scrapbook
Click here to see the entire gallery of photos including all the designs on our Facebook Page
Studs Struts amp Stilettos
wwwRochesterAreaBuilderscom12 | June 2014
To Session or not to Session
That is the question that Matt answers
in this monthrsquos
Itrsquos time for another installment of ldquoHey Matt whatrsquos up with thatrdquo This weekrsquos topic is the recently closed MN Legislative Session
ldquoHey Matt I heard that this Legislative Session was being called an lsquoUnsessionrsquo Whatrsquos up with thatrdquo
Whew what a fast and busy legislative session the ldquounsessionrdquo turned out to be The Governor earlier this year requested that lawmakers take this session to focus on two main things the Bonding Bill and cleaning up Minnesotarsquos Laws Because the Governor asked this of lawmakers the session was dubbed the ldquounsessionrdquo While lawmakers did clean up a lot of language in existing laws and repealed unnecessary ones they were busy making strides in a lot of other areas as well Passing laws on topics as far ranging as Bullying and Legalized Medical Marijuana this session was anything BUT the ldquounsessionrdquo
Two things I wanted to cover Fire Sprinklers and the Bonding Bill First the Bonding Bill The Bonding Bill is basically a giant construction bill giving communities money for projects that they wouldnrsquot be able to afford without state assistance The reason it is called the ldquoBonding Billrdquo is because the state borrows money for these projects This includes projects like the Mayo Civic Center rehabilitation and expansion This year lawmakers passed over a $1 Billion bonding bill and construction package Rochester
received $35 Million in funding for the Mayo Civic Center This was the biggest single project in the Bonding Bill and kudos to the city for all their hard work on finally getting this included in the Bonding Bill
Fire Sprinklers We found ourselves at the legislature again trying to prevent a single family home indoor fire sprinkler mandate This has been an uphill battle from the beginning The Governor has twice vetoed stand-alone legislation that was passed with bipartisan support We received a lack-luster ruling from our administrative law judge hearing in February All the odds were against us so it was a bit of a miracle that we became the political bargaining chip that we did Here is how it happened
Senator Senjem had previously unsuccessfully tried to add an amendment to the Bonding Bill regarding the prohibition of a fire sprinkler mandate However he was able to craft an amendment that was added to the language in the Senatersquos version of the Bonding Bill This is important because in a Bonding Bill the Governor has the power to what is called ldquoline-item vetordquo certain projects This means that the Governor can take the Bonding Bill and scratch certain projects from it after the legislature has passed it through both houses of the legislature Rochester should remember when Governor Pawlenty line-itemed the Mayo Civic Center funding from the 2010 bonding bill But I digress While the Governor is able to veto certain projects the
WwwRochesterAreaBuilderscomJune 2014 | 13
Governor does not have the power to line-item veto policy in the Bonding bill This means that if the Governor wanted to prevent the legislature from passing a prohibition on the mandate of fire sprinklers in single family homes he would have to veto the ENTIRE $1 BILLION BONDING BILL Politically we thought there was no way he would do something like that especially in an election year so that is why what Senator Senjem did was so important for us
Now for what happened next The House and the Senate both have to pass versions of a Bonding Bill and then it usually has to be resolved in what is called the conference committee It was apparent the House of Representatives was not going to include the fire sprinkler language Senator Senjem had gotten inserted into the Senate version Then the Governor held a press conference the sole purpose of which was to say that he would veto the Bonding Bill if it included any language regarding the prohibition of a fire sprinkler mandate in single family homes This was the moment we had been waiting for Money cannot buy the kind of press you get from a Governor threatening to veto a $1 Billion bonding bill All of a sudden the public wanted to know what was going on with these fire sprinklers After years of fighting the conversation had reached the public That is the good news The bad news is that because the legislature was operating under a tight schedule the DFL leadership of the Senate and the House negotiated a bonding bill that did
not include language regarding fire sprinklers So we were officially out of the bonding bill
While it is disappointing we didnrsquot get the result we wanted we got a lot of free press out of the situation which is invaluable when trying to get the public on your side of an issue The final date when fire sprinklers will be required in single family homes larger than 4500 sq ft is unknown but it appears it will be sometime in early 2015
What a session the ldquounsessionrdquo turned out to be
If you have any questions ideas or anything at all you want to talk to me about give me a call Or email
Matt
Hey Matt I heard that this Legislative Session was being called an ldquoUnsessionrdquo Whatrsquos up with that
wwwRochesterAreaBuilderscom14 | June 2014
Erosion and Sediment Control at Residential Construction SitesSpring is here and so is the rain As you move into construction mode this year be sure your site adequately provides erosion and sediment control (ESC) ndash no matter how big or small the storm Planning and good practices are essential for keeping sediment on site and preventing enforcement actions Follow the steps below to be prepared for the next rain
bull Before breaking ground review the approved Grading Plan for your site to verify grades on your lot and on adjacent properties (if you have questions on the Grading Plan please contact us)
bull Review the approved grading plan for your site and the adjacent properties to be sure that drainage easements ditches slopes and conveyance areas have correct grades and positive drainage
bull Preserve existing vegetation and topsoil on-site preserving existing vegetation is especially important around the perimeter By preserving existing vegetation this may save you from installing additional perimeter sediment control measures and saving topsoil can save you and the homeowner money
bull Insure that perimeter and internal ESC BMPs are properly anchored and functioning Perimeter sediment control measures are required at all downslope locations on-site
bull Provide stabilized vehicle entrances and exits at your site Options to prevent track-out of sediment onto streets include rock entrances wood chips and mud mats Be certain that your subcontractors are aware of and use the designated access points
bull All area catch basins should have appropriate inlet protection installed in order to prevent soil and debris from entering the storm sewer and draining to our receiving waters Sediment must be regularly removed from inlet protection to prevent street flooding
bull Develop and utilize a concrete washout management plan and facility or return concrete
POOR ESC
WwwRochesterAreaBuilderscomJune 2014 | 15
The MPCA recently informed the City of Rochester that no comments were received on the Cityrsquos new storm water permit application during the public notice period which ended May 1st Therefore MPCA will extend permit coverage to the City under the August 2013 permit and the Cityrsquos effective date will be Thursday May 8th
Under the new 2013 permit the City must continue the permit activities already in place and meet the added requirements The new tasks that the City must address before May 7 2015 include
bull Completing a storm water management plan updatebull Preparing a new storm water ordinance that incorporates the new permit requirementsbull Updating all standard operating procedures and preparing new enforcement response proceduresbull Assessing the Cityrsquos status in meeting Total Maximum Daily Load Waste Load Allocationsbull Developing a pond effectiveness assessment planbull Enhancing the City facilities and operations inventorybull Creating an employee and business technical education program
Of particular interest to RAB members will be the new ordinance The City expects to have a draft ready for public review by October Any questions about the new permit can be directed to Barb Huberty at bhubertyrochestermngov
UPDATE New State Storm Water Permit
washout to the concrete vendor No liquid or solid concrete waste from washout operations can be in contact with the ground
bull Keep a clean construction site One of the biggest complaints the City receives about construction sites is the construction debris and litter Create and use a garbage corral or dumpster and empty them before they overflow Ask contractors to compact their debris so it doesnrsquot blow out of the container on windy days
bull Place topsoil and vegetate all exposed soil areas as soon as fine grading is complete The City of Rochester standards require a minimum of 4rdquo of topsoil on disturbed areas donrsquot substitute subsoil for topsoil
bull Learn more about useful storm water management practices and state construction storm water permit requirements at the MPCA website wwwpcastatemnuswaterstormwater
Rochester residents want good water quality and quality construction Improper ESC on construction sites has a direct negative impact on our waterways Be proactive and take the time to properly inspect and maintain your ESC best management practices to stabilize your construction site and prevent unintentional water pollution
For more information about this topic please contact Mike Kraszewski (328-2431) or Kevin Kuisle (328-2457) at the Rochester Public Works Department
GOOD ESC
wwwRochesterAreaBuilderscom16 | June 2014
WwwRochesterAreaBuilderscomJune 2014 | 17
Committee UpdatesNOMINATING COMMITTEECHAIRPERSON John Eckerman Boldt Construction
The Nominating Committee will be meeting soon to discuss nominations for the 2015 Board of Directors as well as chairpersons for our many committees and councils If you would like to recommend a member for a position or if you would like to recommend yourself please call John at the office 282-7698 We are always looking for new people to be involved in the management of our association
SHOWCASE COMMITTEECHAIRPERSON Brandon Vagt XRG Concepts
The Fall Showcase of Homes is scheduled for September 13th 14th and 20th 21st Have you started building a home to enter in the Showcase Itrsquos a wonderful opportunity to have your home seen by thousands of potential customers Information packets have been mailed to residential builders and the first of three deadlines is June 19th
Committee ChairpersonsAMBASSADORSGreg Hird First Alliance Credit UnionAWARDSTBABUILDING MAINTENANCETJ Schutz Advanced Building Center IncBUILDING SAFETY ADVISORYMickey Elias Elias Construction LLCCOMMUNITY RELATIONSTony Kunz Hillerrsquos Flooring AmericaDISPUTE RESOLUTIONJohn Kuntz Kuntz Electric IncEDUCATIONVacantEXECUTIVEKevin Worden Rochester Area Habitat for HumanityFASHION SHOWKaren Blissenbach Design Studio BFINANCECarla Kilpatrick Home Federal Savings BankGOLF OUTINGLindsey Rippentrop Olmsted National BankGOVERNMENT AFFAIRSJohn Eckerman The Boldt CompanyGREEN BUILDINGKelly OrsquoMarro XRG Concepts LLCHOME SHOW ndash 2013Jeff Kalmes Hillers Flooring AmericaMARKETINGRob Easthouse Electrical Solutions amp ServiceMEMBERSHIP amp RETENTIONDan Bochman Kruse LumberNOMINATINGKerk Johnson Schwickertrsquos Tecta America LLC PERSONNELKevin Worden Rochester Area Habitat for HumanityPROGRAMDan Plizga Weis Builders IncPUBLIC WORKS ADVISORYJeff Broberg McGhie amp Betts - a Division of WSB amp Associates IncSHOWCASE OF HOMESBrandon Vagt XRG Concepts LLCSPIKE CLUBJay Burke Heartwood Homes of Rochester IncSPORTING CLAYSJames Coyle Kane amp Johnson Architects Inc
CouncilsBER EXECUTIVE COMMITTEEJJ Webster Kraus-Anderson Construction CompanyCBC EXECUTIVE COMMITTEEChris Terry Knutson Construction ServicesDEVELOPMENT COUNCILJohn Sipple Rochester Area Appraisals LLCREMODELERS EXECUTIVE COMMITTEESam Peyton Kingrsquos Flooring LLCREMODELERS TOURKaren Blissenbach Design Studio B
wwwRochesterAreaBuilderscom18 | June 2014
May MeetingThank you to Kingrsquos Flooring for sponsor-
ing the May Meeting held at the RAB Office We had a nice turnout and
enjoyed the beautiful weather as we sat outside and networked and enjoyed the lunch that Kingrsquos Flooring provided We
hope to see you all again in June
construction fashion expose
WwwRochesterAreaBuilderscomJune 2014 | 19
Members2014 Commercial Builders Council107 Members as of 123113AB Systems IncAccord Electric IncAdvanced DisposalAlpha Video amp AudioAssociated BankAlvin E Benike IncThe Blue Book
of Building amp Construction
The Boldt CompanyBraun Intertec
CorporationBriese Iron Works IncBrock White CompanyCO Brown AgencyCambriaCarpet OneCentury Painting amp
Decorating LLCChosen Valley Testing
IncConstruction
Partnership IncCounselor Realty of
Rochester IncCounty Materials
CorporationCRW architecture +
design group incCustom AlarmCustom
Communications IncDunlap amp SeegerEastwood Bankeci llcElcor ConstructionEnergy Panel StructuresEnergy Products amp
Design IncEnventisExpert Insulation IncFerguson EnterprisesFriedrich Construction
IncGerhardsGoodin CompanyHaley Comfort Systems
(Authorized FireSide Dealer)
WL Hall CompanyHGA Architects and
EngineersHDR ArchitectureHeartman InsuranceHillerrsquos Flooring AmericaHiMec at HomeHome Federal Savings
BankHunt Electric
CorporationKampM Glass CompanyKampS Heating AC
Plumbing amp ElectricalKane amp Johnson
Architects IncKey Builders IncKnutson Construction
ServicesKomitt Concrete IncKraus-Anderson
Construction CompanyKreofsky Building
SuppliesKruse LumberKuntz Electric IncKwik Trip IncLeitzen Concrete
Products IncEd Lunn Construction
IncMarvin Windows amp
DoorsMavo Systems IncMcGhie amp Betts Inc
McGough ConstructionMEC Construction IncMEP AssociatesMerchants BankMerit Contracting IncMinnesota Energy
Resources CorporationMinnwest BankNickelson Painting IncOlmsted National BankOnSitePalmer Soderberg IncPella Windows amp DoorsPeoplersquos Energy
CooperativePompeii Painting IncPrehn Building Sales
IncPremier Bank RochesterProBuild Company LLCReliable Contractors
Inc Rochester Area
Appraisals LLCRochester Area
Economic Development Inc
Rochester Public Utilities
Rochester Ready Mix Concrete Co
Rochester Sign Service Inc
Rochester Title amp Escrow Company Inc
Ryan Electric of Rochester Inc
Schoeppner IncSchwab LLCSchwickertrsquos Tecta
America LLCStantecStructural Design
Group IncSuperior MechanicalTamarack Materials of
Rochester IncThink Mutual BankTonna Mechanical IncTSP Architects amp
EngineersTW Construction
Solutions LLCUnited RentalsThe Urban StudioUS BankValor Mechanical IncVeit CompaniesVertical Limit
ConstructionViking Automatic
Sprinkler CompanyViking Electric SupplyWeis Builders IncWells Fargo Bank
Minnesota NAWendland UtzWidseth Smith NoltingYaggy Colby Associates
BUILDERS COUNCILCOMMERCIAL
a d i v i s i o n o f R o c h e s t e r A r e a B u i l d e r s I n c
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
June MeetingCome to the June meeting and hear an in depth discussion of the Comprehensive Housing Needs Assessment for Olmsted County conducted by Maxfield Research Inc The study projects housing demand for submarkets in the Olmsted County Market Area from 2013 through 2030 It also provides recommendations on the amount and types of housing that could be built to satisfy demand from current and future residents over the next decade and beyond
June MEETINGDATE Wednesday June 4th 2014TIME Registration amp Networking at 700 AM Program at 730 AMPLACE Ramada Hotel amp Conference CenterPROGRAM Olmsted County Comprehensive Housing Needs AssessmentSPEAKERS Matt Mullins Vice President Maxfield Research Inc
wwwRochesterAreaBuilderscom20 | June 2014
2014 VALUATION 2013 VALUATION
New Residential Single Family Dwelling 25 5531411 39 9046592
Townhome Dwelling 0 0 0 0
Two-Family Houses 0 0 0 0
Multi-Family Bldgs 0 0 0 0
Manufactured Home 0 0 0 0 Existing Residential Deck Addition 19 107504 11 39350
Room Addition 3 278763 4 569729
Porch Additions 0 0 1 15925
Other Additions 0 0 0 0
Basement Finish 29 342255 27 294745
Alterations 50 516115 36 341383
Multi-Family Addition 0 0 0 0
Multi-Family Alterations 2 113000 5 40095 New Commercial Assembly (Church) 0 0 0 0
Assembly (General) 0 0 0 0
Assembly (RestaurantBar) 1 1561000 1 198000
Business 0 0 1 300000
Education 0 0 0 0
FactoryIndustrial 0 0 0 0
Institution 0 0 0 0
Mercantile 0 0 0 0
Miscelaneous 0 0 0 0
Utility (General) 1 130000 0 0
Residential (CareAssisted Living) 0 0 0 0
Storage (General) 1 45000 1 56000
Storage (Warehouse) 0 0 0 0 Existing CommercialAddition 8 5812413 1 3669000
Alterations 34 5984762 32 5633723
Structural Shell 0 0 0 0
ldquoWhite Boxrdquo 1 15000 0 0
Interior Demolition Only 3 48500 1 39775
Other Phased Permits 0 0 0 0
Other ConstructionBusiness Signs 15 106565 23 175223
Advertising Sign 1 18000 0 0
Footings amp Foundations 2 220000 0 0
Demolition 3 0
Rochester Building Permits April 2014
January 33 39 27 20 3 13 3 6 19 11
February 31 31 19 13 1 8 8 20 15 14
March 59 37 30 29 16 27 24 32 29 28
April 58 58 44 27 29 25 19 29 39 25
TOTAL 181 165 122 89 49 73 54 87 102 78
May 77 69 50 30 33 20 14 22 27
June 81 59 43 36 36 12 26 32 33
July 58 36 60 23 21 23 8 39 39
August 69 36 43 28 26 15 18 38 21
September 65 31 33 28 33 10 19 22 23
October 71 49 34 19 31 14 16 23 34
November 40 38 23 26 30 21 20 22 26
December 60 23 11 16 15 12 16 14 22
TOTAL 702 506 417 302 274 200 191 299 326 78
Single Family Homes
Year To Date Statistics 2014 2013 NO VALUATION NO VALUATION
Building Permits Issued to Date 617 99659586 576 55353067
Single Family Dwelling 78 19118519 102 23271991
Multi-Family Buildings Total Units 39 1 3702052 0 0
Trade Permits Issued to Date 2163 22421315 2077 19001370
Electrical 719 10304793 649 10630028
Electrical (Temp Service) 65 14350 79 23350
Mechanical 570 4962388 543 4383007
Gas Piping 135 348756 141 120700
Fireplace 113 303426 117 283801
Hydronic System 57 1939043 40 736592
Plumbing 504 4548559 508 2823892
Total Permits YTD 2780 122180901 2653 74354437
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
WwwRochesterAreaBuilderscomJune 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
MARCH 2014
New Residential NUMBER VALUATION
Single Family Detached 7 1027450
Existing Residential
Basement Finish 5 81500
Alterations 1 $500
ByronBuilding Permits
MARCH 2014
New Residential NUMBER VALUATION
Single Family 3 455000
Existing Residential NUMBER VALUATION
Heating 1 3600
Basement Finish 1 20000
Pine IslandBuilding Permits
wwwRochesterAreaBuilderscom22 | June 2014
Much has recently been made of the notion that China has enough serious structural problems with its economy that chances are good it will experience a ldquohard landingrdquo defined as economic growth quickly slowing from 75 today to the low single digits This slowdown would weaken commodity prices hurting developing nations and reduce Chinese imports of high-quality finished goods from developed nations also hurting the US Europe and Japan While the Chinese economy has problems many are chronic and I believe the government has sufficient resources to manage the acute ones and avoid a hard landing
The key problems the Chinese economy suffers from are threefold a profound overreliance on large trade surpluses massive government overinvestment in infrastructure and a weak financial system that has resulted in both bad loans made by irresponsible local and regional governments and a highly leveraged and lightly regulated shadow banking system (sound familiar) that may well implode
The first problem is fading away After running trade surpluses in the $45 billionyear range through 2003 they skyrocketed to $400 billionyear by the end of 2008 However that highpoint coincided with the Great Recession which resulted in a huge contraction in trade and simultaneously an effort by many nations to boost exports to help their domestic economies As a result Chinese trade surpluses have averaged about $300 billionyear (about two-thirds of that with the US) since early 2009 and show no discernable upward trend Moreover as the Chinese economy is about twice as big today as it was in 2005 the economic impact of the now smaller trade surpluses on the overall economy is much smaller
The second problem of roads to nowhere massive over building of plant leading to ruinous excess capacity along with the construction of uninhabited ghost towns is being rectified And rectified they can be because these destructive outcomes are the direct result of policies pursued by the central government that are now being overhauled GDP growth targets are being reduced artificially low interest rates earned by savers are likely to rise in the near future and the currency which has been profoundly undervalued is slowly appreciating Collectively these policies will curb wasteful overinvestment and slowly replace it with increased domestic consumption and reduced exports
As for the substantial dodgy debt on the books of local and regional governments and shadow banks due to weakening housing prices and raw land values that act as collateral for many loans here the problem is serious That said Chinarsquos debt is about 25 of GDP giving the central government ample room to borrow should it be necessary Moreover the central government is beginning to force local and regional governments to sell some of the $7 trillion in assets they own in an effort to shore up their financial condition
Moreover with $4 trillion in foreign reserves and the ability to weaken the Chinese currency at will to boost exports China has tools other nations donrsquot have Lastly expect Beijing to re-stimulate sagging housing markets by relaxing home-purchase requirements and local governments to augment this policy by giving residency benefits to out-of-towners to further boost demand Combining the above with looser monetary policy makes me think that those making key policy decisions the brightest minds in the nation will see to it that China comes through this relatively unscathed
Beijing Balancing 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
WwwRochesterAreaBuilderscomJune 2014 | 23
NONE
MEMBERSHIPS PENDINGNONE
The firms listed below have applied for membership in the Rochester Area Builders Any member who objects to admission of any applicant shall notify the RAB Board of Directors in writing of the objection before
the next Board of Directors meeting
MEMBERSHIP TOTAL 453RETENTION RATE 929
As of 43014
WE WELCOME THE FOLLOWING NEW MEMBERS IN APRIL
Membership Information
Membership Renewals as of 43014
One Year
Altra Federal Credit Union 2013JE Dunn Construction 2013The Kitchen Design Studio 2013West Bank 2013Xcel Energy 2013
Two to Four Years
Elias Construction LLC 2011Lacina Siding amp Windows Inc 2011Solar Connection Inc 2011Chladek Construction LLC 2010MEP Associates 2010Rochester Asphalt Inc 2010Wildwood Sports Bar and Grill 2010
Five to Nine Years
Beckleyrsquos Office Products 2009Beetles Bar amp Grill Inc 2008Data-Smart Computers Inc 2008HDR Architecture 2008Legends Concrete Inc 2007RCON Homes Inc 2007Michael Jack LLC 2006WA Insurance 2006Anderson Construction 2005
Ten to 19 Years
Scott Berberich Construction LLC 2004First General Services of SE MN 2003Todd Eidem Construction Inc 2002Ames Construction Inc 2001Expert Insulation Inc 2001HiMEC at Home 2001Habitat for Humanity - Rochester Area 2000Home Improvement Professionals Inc 1999
25 Years amp More
Countryside Builders LLC 1989Radcliffe Homes amp Remodeling 1988Thomas Tool amp Supply 1987Kreofsky Building Supplies 1985Tile Superstore amp More 1985Barrier Free Access Inc 1984RampM Development Company 1970
NEW APPLICANTS
FAT WILLYrsquoS BAR amp GRILL
4325 Maine Ave SERochester MN 55904Phone 507- 206-4301
Contact Bill HendersonAssociate Member
RestaurantBarSponsored by
David Kane Kane amp Johnson Architects Inc
KAHLER HOSPITALITY GROUP
20 2nd Avenue SWRochester MN 55902Phone 507- 280-6200
Contact Marnie GlynnAssociate Member
HotelSponsored byNone Listed
MANUFACTURERrsquoS BANK amp TRUST
2020 2nd Street SWRochester MN 55902Phone 507- 226-8460
Contact Thomas HeepkeAssociate Member
BankSponsored by
Sue Hanson Rochester Title amp Escrow Company Inc
SAWYER CONSTRUCTION SERVICES INC9472 65th Street NE
Elgin MN 55932Phone 507-272-1740Contact Marv Sawyer
Associate MemberLawn CareTree Service
Sponsored byChristy Buchan Energy Products amp Design Inc
wwwRochesterAreaBuilderscom24 | June 2014
Put your membershipto work nowMoney-saving discounts that benefit yourbusiness your employees and your family
wwwnahborgMA
National Association of Home Builders
R
wwwRochesterAreaBuilderscom10 | June 2014
Studs Struts amp StilettosAssociation Scrapbook
WwwRochesterAreaBuilderscomJune 2014 | 11
Association Scrapbook
Click here to see the entire gallery of photos including all the designs on our Facebook Page
Studs Struts amp Stilettos
wwwRochesterAreaBuilderscom12 | June 2014
To Session or not to Session
That is the question that Matt answers
in this monthrsquos
Itrsquos time for another installment of ldquoHey Matt whatrsquos up with thatrdquo This weekrsquos topic is the recently closed MN Legislative Session
ldquoHey Matt I heard that this Legislative Session was being called an lsquoUnsessionrsquo Whatrsquos up with thatrdquo
Whew what a fast and busy legislative session the ldquounsessionrdquo turned out to be The Governor earlier this year requested that lawmakers take this session to focus on two main things the Bonding Bill and cleaning up Minnesotarsquos Laws Because the Governor asked this of lawmakers the session was dubbed the ldquounsessionrdquo While lawmakers did clean up a lot of language in existing laws and repealed unnecessary ones they were busy making strides in a lot of other areas as well Passing laws on topics as far ranging as Bullying and Legalized Medical Marijuana this session was anything BUT the ldquounsessionrdquo
Two things I wanted to cover Fire Sprinklers and the Bonding Bill First the Bonding Bill The Bonding Bill is basically a giant construction bill giving communities money for projects that they wouldnrsquot be able to afford without state assistance The reason it is called the ldquoBonding Billrdquo is because the state borrows money for these projects This includes projects like the Mayo Civic Center rehabilitation and expansion This year lawmakers passed over a $1 Billion bonding bill and construction package Rochester
received $35 Million in funding for the Mayo Civic Center This was the biggest single project in the Bonding Bill and kudos to the city for all their hard work on finally getting this included in the Bonding Bill
Fire Sprinklers We found ourselves at the legislature again trying to prevent a single family home indoor fire sprinkler mandate This has been an uphill battle from the beginning The Governor has twice vetoed stand-alone legislation that was passed with bipartisan support We received a lack-luster ruling from our administrative law judge hearing in February All the odds were against us so it was a bit of a miracle that we became the political bargaining chip that we did Here is how it happened
Senator Senjem had previously unsuccessfully tried to add an amendment to the Bonding Bill regarding the prohibition of a fire sprinkler mandate However he was able to craft an amendment that was added to the language in the Senatersquos version of the Bonding Bill This is important because in a Bonding Bill the Governor has the power to what is called ldquoline-item vetordquo certain projects This means that the Governor can take the Bonding Bill and scratch certain projects from it after the legislature has passed it through both houses of the legislature Rochester should remember when Governor Pawlenty line-itemed the Mayo Civic Center funding from the 2010 bonding bill But I digress While the Governor is able to veto certain projects the
WwwRochesterAreaBuilderscomJune 2014 | 13
Governor does not have the power to line-item veto policy in the Bonding bill This means that if the Governor wanted to prevent the legislature from passing a prohibition on the mandate of fire sprinklers in single family homes he would have to veto the ENTIRE $1 BILLION BONDING BILL Politically we thought there was no way he would do something like that especially in an election year so that is why what Senator Senjem did was so important for us
Now for what happened next The House and the Senate both have to pass versions of a Bonding Bill and then it usually has to be resolved in what is called the conference committee It was apparent the House of Representatives was not going to include the fire sprinkler language Senator Senjem had gotten inserted into the Senate version Then the Governor held a press conference the sole purpose of which was to say that he would veto the Bonding Bill if it included any language regarding the prohibition of a fire sprinkler mandate in single family homes This was the moment we had been waiting for Money cannot buy the kind of press you get from a Governor threatening to veto a $1 Billion bonding bill All of a sudden the public wanted to know what was going on with these fire sprinklers After years of fighting the conversation had reached the public That is the good news The bad news is that because the legislature was operating under a tight schedule the DFL leadership of the Senate and the House negotiated a bonding bill that did
not include language regarding fire sprinklers So we were officially out of the bonding bill
While it is disappointing we didnrsquot get the result we wanted we got a lot of free press out of the situation which is invaluable when trying to get the public on your side of an issue The final date when fire sprinklers will be required in single family homes larger than 4500 sq ft is unknown but it appears it will be sometime in early 2015
What a session the ldquounsessionrdquo turned out to be
If you have any questions ideas or anything at all you want to talk to me about give me a call Or email
Matt
Hey Matt I heard that this Legislative Session was being called an ldquoUnsessionrdquo Whatrsquos up with that
wwwRochesterAreaBuilderscom14 | June 2014
Erosion and Sediment Control at Residential Construction SitesSpring is here and so is the rain As you move into construction mode this year be sure your site adequately provides erosion and sediment control (ESC) ndash no matter how big or small the storm Planning and good practices are essential for keeping sediment on site and preventing enforcement actions Follow the steps below to be prepared for the next rain
bull Before breaking ground review the approved Grading Plan for your site to verify grades on your lot and on adjacent properties (if you have questions on the Grading Plan please contact us)
bull Review the approved grading plan for your site and the adjacent properties to be sure that drainage easements ditches slopes and conveyance areas have correct grades and positive drainage
bull Preserve existing vegetation and topsoil on-site preserving existing vegetation is especially important around the perimeter By preserving existing vegetation this may save you from installing additional perimeter sediment control measures and saving topsoil can save you and the homeowner money
bull Insure that perimeter and internal ESC BMPs are properly anchored and functioning Perimeter sediment control measures are required at all downslope locations on-site
bull Provide stabilized vehicle entrances and exits at your site Options to prevent track-out of sediment onto streets include rock entrances wood chips and mud mats Be certain that your subcontractors are aware of and use the designated access points
bull All area catch basins should have appropriate inlet protection installed in order to prevent soil and debris from entering the storm sewer and draining to our receiving waters Sediment must be regularly removed from inlet protection to prevent street flooding
bull Develop and utilize a concrete washout management plan and facility or return concrete
POOR ESC
WwwRochesterAreaBuilderscomJune 2014 | 15
The MPCA recently informed the City of Rochester that no comments were received on the Cityrsquos new storm water permit application during the public notice period which ended May 1st Therefore MPCA will extend permit coverage to the City under the August 2013 permit and the Cityrsquos effective date will be Thursday May 8th
Under the new 2013 permit the City must continue the permit activities already in place and meet the added requirements The new tasks that the City must address before May 7 2015 include
bull Completing a storm water management plan updatebull Preparing a new storm water ordinance that incorporates the new permit requirementsbull Updating all standard operating procedures and preparing new enforcement response proceduresbull Assessing the Cityrsquos status in meeting Total Maximum Daily Load Waste Load Allocationsbull Developing a pond effectiveness assessment planbull Enhancing the City facilities and operations inventorybull Creating an employee and business technical education program
Of particular interest to RAB members will be the new ordinance The City expects to have a draft ready for public review by October Any questions about the new permit can be directed to Barb Huberty at bhubertyrochestermngov
UPDATE New State Storm Water Permit
washout to the concrete vendor No liquid or solid concrete waste from washout operations can be in contact with the ground
bull Keep a clean construction site One of the biggest complaints the City receives about construction sites is the construction debris and litter Create and use a garbage corral or dumpster and empty them before they overflow Ask contractors to compact their debris so it doesnrsquot blow out of the container on windy days
bull Place topsoil and vegetate all exposed soil areas as soon as fine grading is complete The City of Rochester standards require a minimum of 4rdquo of topsoil on disturbed areas donrsquot substitute subsoil for topsoil
bull Learn more about useful storm water management practices and state construction storm water permit requirements at the MPCA website wwwpcastatemnuswaterstormwater
Rochester residents want good water quality and quality construction Improper ESC on construction sites has a direct negative impact on our waterways Be proactive and take the time to properly inspect and maintain your ESC best management practices to stabilize your construction site and prevent unintentional water pollution
For more information about this topic please contact Mike Kraszewski (328-2431) or Kevin Kuisle (328-2457) at the Rochester Public Works Department
GOOD ESC
wwwRochesterAreaBuilderscom16 | June 2014
WwwRochesterAreaBuilderscomJune 2014 | 17
Committee UpdatesNOMINATING COMMITTEECHAIRPERSON John Eckerman Boldt Construction
The Nominating Committee will be meeting soon to discuss nominations for the 2015 Board of Directors as well as chairpersons for our many committees and councils If you would like to recommend a member for a position or if you would like to recommend yourself please call John at the office 282-7698 We are always looking for new people to be involved in the management of our association
SHOWCASE COMMITTEECHAIRPERSON Brandon Vagt XRG Concepts
The Fall Showcase of Homes is scheduled for September 13th 14th and 20th 21st Have you started building a home to enter in the Showcase Itrsquos a wonderful opportunity to have your home seen by thousands of potential customers Information packets have been mailed to residential builders and the first of three deadlines is June 19th
Committee ChairpersonsAMBASSADORSGreg Hird First Alliance Credit UnionAWARDSTBABUILDING MAINTENANCETJ Schutz Advanced Building Center IncBUILDING SAFETY ADVISORYMickey Elias Elias Construction LLCCOMMUNITY RELATIONSTony Kunz Hillerrsquos Flooring AmericaDISPUTE RESOLUTIONJohn Kuntz Kuntz Electric IncEDUCATIONVacantEXECUTIVEKevin Worden Rochester Area Habitat for HumanityFASHION SHOWKaren Blissenbach Design Studio BFINANCECarla Kilpatrick Home Federal Savings BankGOLF OUTINGLindsey Rippentrop Olmsted National BankGOVERNMENT AFFAIRSJohn Eckerman The Boldt CompanyGREEN BUILDINGKelly OrsquoMarro XRG Concepts LLCHOME SHOW ndash 2013Jeff Kalmes Hillers Flooring AmericaMARKETINGRob Easthouse Electrical Solutions amp ServiceMEMBERSHIP amp RETENTIONDan Bochman Kruse LumberNOMINATINGKerk Johnson Schwickertrsquos Tecta America LLC PERSONNELKevin Worden Rochester Area Habitat for HumanityPROGRAMDan Plizga Weis Builders IncPUBLIC WORKS ADVISORYJeff Broberg McGhie amp Betts - a Division of WSB amp Associates IncSHOWCASE OF HOMESBrandon Vagt XRG Concepts LLCSPIKE CLUBJay Burke Heartwood Homes of Rochester IncSPORTING CLAYSJames Coyle Kane amp Johnson Architects Inc
CouncilsBER EXECUTIVE COMMITTEEJJ Webster Kraus-Anderson Construction CompanyCBC EXECUTIVE COMMITTEEChris Terry Knutson Construction ServicesDEVELOPMENT COUNCILJohn Sipple Rochester Area Appraisals LLCREMODELERS EXECUTIVE COMMITTEESam Peyton Kingrsquos Flooring LLCREMODELERS TOURKaren Blissenbach Design Studio B
wwwRochesterAreaBuilderscom18 | June 2014
May MeetingThank you to Kingrsquos Flooring for sponsor-
ing the May Meeting held at the RAB Office We had a nice turnout and
enjoyed the beautiful weather as we sat outside and networked and enjoyed the lunch that Kingrsquos Flooring provided We
hope to see you all again in June
construction fashion expose
WwwRochesterAreaBuilderscomJune 2014 | 19
Members2014 Commercial Builders Council107 Members as of 123113AB Systems IncAccord Electric IncAdvanced DisposalAlpha Video amp AudioAssociated BankAlvin E Benike IncThe Blue Book
of Building amp Construction
The Boldt CompanyBraun Intertec
CorporationBriese Iron Works IncBrock White CompanyCO Brown AgencyCambriaCarpet OneCentury Painting amp
Decorating LLCChosen Valley Testing
IncConstruction
Partnership IncCounselor Realty of
Rochester IncCounty Materials
CorporationCRW architecture +
design group incCustom AlarmCustom
Communications IncDunlap amp SeegerEastwood Bankeci llcElcor ConstructionEnergy Panel StructuresEnergy Products amp
Design IncEnventisExpert Insulation IncFerguson EnterprisesFriedrich Construction
IncGerhardsGoodin CompanyHaley Comfort Systems
(Authorized FireSide Dealer)
WL Hall CompanyHGA Architects and
EngineersHDR ArchitectureHeartman InsuranceHillerrsquos Flooring AmericaHiMec at HomeHome Federal Savings
BankHunt Electric
CorporationKampM Glass CompanyKampS Heating AC
Plumbing amp ElectricalKane amp Johnson
Architects IncKey Builders IncKnutson Construction
ServicesKomitt Concrete IncKraus-Anderson
Construction CompanyKreofsky Building
SuppliesKruse LumberKuntz Electric IncKwik Trip IncLeitzen Concrete
Products IncEd Lunn Construction
IncMarvin Windows amp
DoorsMavo Systems IncMcGhie amp Betts Inc
McGough ConstructionMEC Construction IncMEP AssociatesMerchants BankMerit Contracting IncMinnesota Energy
Resources CorporationMinnwest BankNickelson Painting IncOlmsted National BankOnSitePalmer Soderberg IncPella Windows amp DoorsPeoplersquos Energy
CooperativePompeii Painting IncPrehn Building Sales
IncPremier Bank RochesterProBuild Company LLCReliable Contractors
Inc Rochester Area
Appraisals LLCRochester Area
Economic Development Inc
Rochester Public Utilities
Rochester Ready Mix Concrete Co
Rochester Sign Service Inc
Rochester Title amp Escrow Company Inc
Ryan Electric of Rochester Inc
Schoeppner IncSchwab LLCSchwickertrsquos Tecta
America LLCStantecStructural Design
Group IncSuperior MechanicalTamarack Materials of
Rochester IncThink Mutual BankTonna Mechanical IncTSP Architects amp
EngineersTW Construction
Solutions LLCUnited RentalsThe Urban StudioUS BankValor Mechanical IncVeit CompaniesVertical Limit
ConstructionViking Automatic
Sprinkler CompanyViking Electric SupplyWeis Builders IncWells Fargo Bank
Minnesota NAWendland UtzWidseth Smith NoltingYaggy Colby Associates
BUILDERS COUNCILCOMMERCIAL
a d i v i s i o n o f R o c h e s t e r A r e a B u i l d e r s I n c
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
June MeetingCome to the June meeting and hear an in depth discussion of the Comprehensive Housing Needs Assessment for Olmsted County conducted by Maxfield Research Inc The study projects housing demand for submarkets in the Olmsted County Market Area from 2013 through 2030 It also provides recommendations on the amount and types of housing that could be built to satisfy demand from current and future residents over the next decade and beyond
June MEETINGDATE Wednesday June 4th 2014TIME Registration amp Networking at 700 AM Program at 730 AMPLACE Ramada Hotel amp Conference CenterPROGRAM Olmsted County Comprehensive Housing Needs AssessmentSPEAKERS Matt Mullins Vice President Maxfield Research Inc
wwwRochesterAreaBuilderscom20 | June 2014
2014 VALUATION 2013 VALUATION
New Residential Single Family Dwelling 25 5531411 39 9046592
Townhome Dwelling 0 0 0 0
Two-Family Houses 0 0 0 0
Multi-Family Bldgs 0 0 0 0
Manufactured Home 0 0 0 0 Existing Residential Deck Addition 19 107504 11 39350
Room Addition 3 278763 4 569729
Porch Additions 0 0 1 15925
Other Additions 0 0 0 0
Basement Finish 29 342255 27 294745
Alterations 50 516115 36 341383
Multi-Family Addition 0 0 0 0
Multi-Family Alterations 2 113000 5 40095 New Commercial Assembly (Church) 0 0 0 0
Assembly (General) 0 0 0 0
Assembly (RestaurantBar) 1 1561000 1 198000
Business 0 0 1 300000
Education 0 0 0 0
FactoryIndustrial 0 0 0 0
Institution 0 0 0 0
Mercantile 0 0 0 0
Miscelaneous 0 0 0 0
Utility (General) 1 130000 0 0
Residential (CareAssisted Living) 0 0 0 0
Storage (General) 1 45000 1 56000
Storage (Warehouse) 0 0 0 0 Existing CommercialAddition 8 5812413 1 3669000
Alterations 34 5984762 32 5633723
Structural Shell 0 0 0 0
ldquoWhite Boxrdquo 1 15000 0 0
Interior Demolition Only 3 48500 1 39775
Other Phased Permits 0 0 0 0
Other ConstructionBusiness Signs 15 106565 23 175223
Advertising Sign 1 18000 0 0
Footings amp Foundations 2 220000 0 0
Demolition 3 0
Rochester Building Permits April 2014
January 33 39 27 20 3 13 3 6 19 11
February 31 31 19 13 1 8 8 20 15 14
March 59 37 30 29 16 27 24 32 29 28
April 58 58 44 27 29 25 19 29 39 25
TOTAL 181 165 122 89 49 73 54 87 102 78
May 77 69 50 30 33 20 14 22 27
June 81 59 43 36 36 12 26 32 33
July 58 36 60 23 21 23 8 39 39
August 69 36 43 28 26 15 18 38 21
September 65 31 33 28 33 10 19 22 23
October 71 49 34 19 31 14 16 23 34
November 40 38 23 26 30 21 20 22 26
December 60 23 11 16 15 12 16 14 22
TOTAL 702 506 417 302 274 200 191 299 326 78
Single Family Homes
Year To Date Statistics 2014 2013 NO VALUATION NO VALUATION
Building Permits Issued to Date 617 99659586 576 55353067
Single Family Dwelling 78 19118519 102 23271991
Multi-Family Buildings Total Units 39 1 3702052 0 0
Trade Permits Issued to Date 2163 22421315 2077 19001370
Electrical 719 10304793 649 10630028
Electrical (Temp Service) 65 14350 79 23350
Mechanical 570 4962388 543 4383007
Gas Piping 135 348756 141 120700
Fireplace 113 303426 117 283801
Hydronic System 57 1939043 40 736592
Plumbing 504 4548559 508 2823892
Total Permits YTD 2780 122180901 2653 74354437
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
WwwRochesterAreaBuilderscomJune 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
MARCH 2014
New Residential NUMBER VALUATION
Single Family Detached 7 1027450
Existing Residential
Basement Finish 5 81500
Alterations 1 $500
ByronBuilding Permits
MARCH 2014
New Residential NUMBER VALUATION
Single Family 3 455000
Existing Residential NUMBER VALUATION
Heating 1 3600
Basement Finish 1 20000
Pine IslandBuilding Permits
wwwRochesterAreaBuilderscom22 | June 2014
Much has recently been made of the notion that China has enough serious structural problems with its economy that chances are good it will experience a ldquohard landingrdquo defined as economic growth quickly slowing from 75 today to the low single digits This slowdown would weaken commodity prices hurting developing nations and reduce Chinese imports of high-quality finished goods from developed nations also hurting the US Europe and Japan While the Chinese economy has problems many are chronic and I believe the government has sufficient resources to manage the acute ones and avoid a hard landing
The key problems the Chinese economy suffers from are threefold a profound overreliance on large trade surpluses massive government overinvestment in infrastructure and a weak financial system that has resulted in both bad loans made by irresponsible local and regional governments and a highly leveraged and lightly regulated shadow banking system (sound familiar) that may well implode
The first problem is fading away After running trade surpluses in the $45 billionyear range through 2003 they skyrocketed to $400 billionyear by the end of 2008 However that highpoint coincided with the Great Recession which resulted in a huge contraction in trade and simultaneously an effort by many nations to boost exports to help their domestic economies As a result Chinese trade surpluses have averaged about $300 billionyear (about two-thirds of that with the US) since early 2009 and show no discernable upward trend Moreover as the Chinese economy is about twice as big today as it was in 2005 the economic impact of the now smaller trade surpluses on the overall economy is much smaller
The second problem of roads to nowhere massive over building of plant leading to ruinous excess capacity along with the construction of uninhabited ghost towns is being rectified And rectified they can be because these destructive outcomes are the direct result of policies pursued by the central government that are now being overhauled GDP growth targets are being reduced artificially low interest rates earned by savers are likely to rise in the near future and the currency which has been profoundly undervalued is slowly appreciating Collectively these policies will curb wasteful overinvestment and slowly replace it with increased domestic consumption and reduced exports
As for the substantial dodgy debt on the books of local and regional governments and shadow banks due to weakening housing prices and raw land values that act as collateral for many loans here the problem is serious That said Chinarsquos debt is about 25 of GDP giving the central government ample room to borrow should it be necessary Moreover the central government is beginning to force local and regional governments to sell some of the $7 trillion in assets they own in an effort to shore up their financial condition
Moreover with $4 trillion in foreign reserves and the ability to weaken the Chinese currency at will to boost exports China has tools other nations donrsquot have Lastly expect Beijing to re-stimulate sagging housing markets by relaxing home-purchase requirements and local governments to augment this policy by giving residency benefits to out-of-towners to further boost demand Combining the above with looser monetary policy makes me think that those making key policy decisions the brightest minds in the nation will see to it that China comes through this relatively unscathed
Beijing Balancing 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
WwwRochesterAreaBuilderscomJune 2014 | 23
NONE
MEMBERSHIPS PENDINGNONE
The firms listed below have applied for membership in the Rochester Area Builders Any member who objects to admission of any applicant shall notify the RAB Board of Directors in writing of the objection before
the next Board of Directors meeting
MEMBERSHIP TOTAL 453RETENTION RATE 929
As of 43014
WE WELCOME THE FOLLOWING NEW MEMBERS IN APRIL
Membership Information
Membership Renewals as of 43014
One Year
Altra Federal Credit Union 2013JE Dunn Construction 2013The Kitchen Design Studio 2013West Bank 2013Xcel Energy 2013
Two to Four Years
Elias Construction LLC 2011Lacina Siding amp Windows Inc 2011Solar Connection Inc 2011Chladek Construction LLC 2010MEP Associates 2010Rochester Asphalt Inc 2010Wildwood Sports Bar and Grill 2010
Five to Nine Years
Beckleyrsquos Office Products 2009Beetles Bar amp Grill Inc 2008Data-Smart Computers Inc 2008HDR Architecture 2008Legends Concrete Inc 2007RCON Homes Inc 2007Michael Jack LLC 2006WA Insurance 2006Anderson Construction 2005
Ten to 19 Years
Scott Berberich Construction LLC 2004First General Services of SE MN 2003Todd Eidem Construction Inc 2002Ames Construction Inc 2001Expert Insulation Inc 2001HiMEC at Home 2001Habitat for Humanity - Rochester Area 2000Home Improvement Professionals Inc 1999
25 Years amp More
Countryside Builders LLC 1989Radcliffe Homes amp Remodeling 1988Thomas Tool amp Supply 1987Kreofsky Building Supplies 1985Tile Superstore amp More 1985Barrier Free Access Inc 1984RampM Development Company 1970
NEW APPLICANTS
FAT WILLYrsquoS BAR amp GRILL
4325 Maine Ave SERochester MN 55904Phone 507- 206-4301
Contact Bill HendersonAssociate Member
RestaurantBarSponsored by
David Kane Kane amp Johnson Architects Inc
KAHLER HOSPITALITY GROUP
20 2nd Avenue SWRochester MN 55902Phone 507- 280-6200
Contact Marnie GlynnAssociate Member
HotelSponsored byNone Listed
MANUFACTURERrsquoS BANK amp TRUST
2020 2nd Street SWRochester MN 55902Phone 507- 226-8460
Contact Thomas HeepkeAssociate Member
BankSponsored by
Sue Hanson Rochester Title amp Escrow Company Inc
SAWYER CONSTRUCTION SERVICES INC9472 65th Street NE
Elgin MN 55932Phone 507-272-1740Contact Marv Sawyer
Associate MemberLawn CareTree Service
Sponsored byChristy Buchan Energy Products amp Design Inc
wwwRochesterAreaBuilderscom24 | June 2014
Put your membershipto work nowMoney-saving discounts that benefit yourbusiness your employees and your family
wwwnahborgMA
National Association of Home Builders
R
WwwRochesterAreaBuilderscomJune 2014 | 11
Association Scrapbook
Click here to see the entire gallery of photos including all the designs on our Facebook Page
Studs Struts amp Stilettos
wwwRochesterAreaBuilderscom12 | June 2014
To Session or not to Session
That is the question that Matt answers
in this monthrsquos
Itrsquos time for another installment of ldquoHey Matt whatrsquos up with thatrdquo This weekrsquos topic is the recently closed MN Legislative Session
ldquoHey Matt I heard that this Legislative Session was being called an lsquoUnsessionrsquo Whatrsquos up with thatrdquo
Whew what a fast and busy legislative session the ldquounsessionrdquo turned out to be The Governor earlier this year requested that lawmakers take this session to focus on two main things the Bonding Bill and cleaning up Minnesotarsquos Laws Because the Governor asked this of lawmakers the session was dubbed the ldquounsessionrdquo While lawmakers did clean up a lot of language in existing laws and repealed unnecessary ones they were busy making strides in a lot of other areas as well Passing laws on topics as far ranging as Bullying and Legalized Medical Marijuana this session was anything BUT the ldquounsessionrdquo
Two things I wanted to cover Fire Sprinklers and the Bonding Bill First the Bonding Bill The Bonding Bill is basically a giant construction bill giving communities money for projects that they wouldnrsquot be able to afford without state assistance The reason it is called the ldquoBonding Billrdquo is because the state borrows money for these projects This includes projects like the Mayo Civic Center rehabilitation and expansion This year lawmakers passed over a $1 Billion bonding bill and construction package Rochester
received $35 Million in funding for the Mayo Civic Center This was the biggest single project in the Bonding Bill and kudos to the city for all their hard work on finally getting this included in the Bonding Bill
Fire Sprinklers We found ourselves at the legislature again trying to prevent a single family home indoor fire sprinkler mandate This has been an uphill battle from the beginning The Governor has twice vetoed stand-alone legislation that was passed with bipartisan support We received a lack-luster ruling from our administrative law judge hearing in February All the odds were against us so it was a bit of a miracle that we became the political bargaining chip that we did Here is how it happened
Senator Senjem had previously unsuccessfully tried to add an amendment to the Bonding Bill regarding the prohibition of a fire sprinkler mandate However he was able to craft an amendment that was added to the language in the Senatersquos version of the Bonding Bill This is important because in a Bonding Bill the Governor has the power to what is called ldquoline-item vetordquo certain projects This means that the Governor can take the Bonding Bill and scratch certain projects from it after the legislature has passed it through both houses of the legislature Rochester should remember when Governor Pawlenty line-itemed the Mayo Civic Center funding from the 2010 bonding bill But I digress While the Governor is able to veto certain projects the
WwwRochesterAreaBuilderscomJune 2014 | 13
Governor does not have the power to line-item veto policy in the Bonding bill This means that if the Governor wanted to prevent the legislature from passing a prohibition on the mandate of fire sprinklers in single family homes he would have to veto the ENTIRE $1 BILLION BONDING BILL Politically we thought there was no way he would do something like that especially in an election year so that is why what Senator Senjem did was so important for us
Now for what happened next The House and the Senate both have to pass versions of a Bonding Bill and then it usually has to be resolved in what is called the conference committee It was apparent the House of Representatives was not going to include the fire sprinkler language Senator Senjem had gotten inserted into the Senate version Then the Governor held a press conference the sole purpose of which was to say that he would veto the Bonding Bill if it included any language regarding the prohibition of a fire sprinkler mandate in single family homes This was the moment we had been waiting for Money cannot buy the kind of press you get from a Governor threatening to veto a $1 Billion bonding bill All of a sudden the public wanted to know what was going on with these fire sprinklers After years of fighting the conversation had reached the public That is the good news The bad news is that because the legislature was operating under a tight schedule the DFL leadership of the Senate and the House negotiated a bonding bill that did
not include language regarding fire sprinklers So we were officially out of the bonding bill
While it is disappointing we didnrsquot get the result we wanted we got a lot of free press out of the situation which is invaluable when trying to get the public on your side of an issue The final date when fire sprinklers will be required in single family homes larger than 4500 sq ft is unknown but it appears it will be sometime in early 2015
What a session the ldquounsessionrdquo turned out to be
If you have any questions ideas or anything at all you want to talk to me about give me a call Or email
Matt
Hey Matt I heard that this Legislative Session was being called an ldquoUnsessionrdquo Whatrsquos up with that
wwwRochesterAreaBuilderscom14 | June 2014
Erosion and Sediment Control at Residential Construction SitesSpring is here and so is the rain As you move into construction mode this year be sure your site adequately provides erosion and sediment control (ESC) ndash no matter how big or small the storm Planning and good practices are essential for keeping sediment on site and preventing enforcement actions Follow the steps below to be prepared for the next rain
bull Before breaking ground review the approved Grading Plan for your site to verify grades on your lot and on adjacent properties (if you have questions on the Grading Plan please contact us)
bull Review the approved grading plan for your site and the adjacent properties to be sure that drainage easements ditches slopes and conveyance areas have correct grades and positive drainage
bull Preserve existing vegetation and topsoil on-site preserving existing vegetation is especially important around the perimeter By preserving existing vegetation this may save you from installing additional perimeter sediment control measures and saving topsoil can save you and the homeowner money
bull Insure that perimeter and internal ESC BMPs are properly anchored and functioning Perimeter sediment control measures are required at all downslope locations on-site
bull Provide stabilized vehicle entrances and exits at your site Options to prevent track-out of sediment onto streets include rock entrances wood chips and mud mats Be certain that your subcontractors are aware of and use the designated access points
bull All area catch basins should have appropriate inlet protection installed in order to prevent soil and debris from entering the storm sewer and draining to our receiving waters Sediment must be regularly removed from inlet protection to prevent street flooding
bull Develop and utilize a concrete washout management plan and facility or return concrete
POOR ESC
WwwRochesterAreaBuilderscomJune 2014 | 15
The MPCA recently informed the City of Rochester that no comments were received on the Cityrsquos new storm water permit application during the public notice period which ended May 1st Therefore MPCA will extend permit coverage to the City under the August 2013 permit and the Cityrsquos effective date will be Thursday May 8th
Under the new 2013 permit the City must continue the permit activities already in place and meet the added requirements The new tasks that the City must address before May 7 2015 include
bull Completing a storm water management plan updatebull Preparing a new storm water ordinance that incorporates the new permit requirementsbull Updating all standard operating procedures and preparing new enforcement response proceduresbull Assessing the Cityrsquos status in meeting Total Maximum Daily Load Waste Load Allocationsbull Developing a pond effectiveness assessment planbull Enhancing the City facilities and operations inventorybull Creating an employee and business technical education program
Of particular interest to RAB members will be the new ordinance The City expects to have a draft ready for public review by October Any questions about the new permit can be directed to Barb Huberty at bhubertyrochestermngov
UPDATE New State Storm Water Permit
washout to the concrete vendor No liquid or solid concrete waste from washout operations can be in contact with the ground
bull Keep a clean construction site One of the biggest complaints the City receives about construction sites is the construction debris and litter Create and use a garbage corral or dumpster and empty them before they overflow Ask contractors to compact their debris so it doesnrsquot blow out of the container on windy days
bull Place topsoil and vegetate all exposed soil areas as soon as fine grading is complete The City of Rochester standards require a minimum of 4rdquo of topsoil on disturbed areas donrsquot substitute subsoil for topsoil
bull Learn more about useful storm water management practices and state construction storm water permit requirements at the MPCA website wwwpcastatemnuswaterstormwater
Rochester residents want good water quality and quality construction Improper ESC on construction sites has a direct negative impact on our waterways Be proactive and take the time to properly inspect and maintain your ESC best management practices to stabilize your construction site and prevent unintentional water pollution
For more information about this topic please contact Mike Kraszewski (328-2431) or Kevin Kuisle (328-2457) at the Rochester Public Works Department
GOOD ESC
wwwRochesterAreaBuilderscom16 | June 2014
WwwRochesterAreaBuilderscomJune 2014 | 17
Committee UpdatesNOMINATING COMMITTEECHAIRPERSON John Eckerman Boldt Construction
The Nominating Committee will be meeting soon to discuss nominations for the 2015 Board of Directors as well as chairpersons for our many committees and councils If you would like to recommend a member for a position or if you would like to recommend yourself please call John at the office 282-7698 We are always looking for new people to be involved in the management of our association
SHOWCASE COMMITTEECHAIRPERSON Brandon Vagt XRG Concepts
The Fall Showcase of Homes is scheduled for September 13th 14th and 20th 21st Have you started building a home to enter in the Showcase Itrsquos a wonderful opportunity to have your home seen by thousands of potential customers Information packets have been mailed to residential builders and the first of three deadlines is June 19th
Committee ChairpersonsAMBASSADORSGreg Hird First Alliance Credit UnionAWARDSTBABUILDING MAINTENANCETJ Schutz Advanced Building Center IncBUILDING SAFETY ADVISORYMickey Elias Elias Construction LLCCOMMUNITY RELATIONSTony Kunz Hillerrsquos Flooring AmericaDISPUTE RESOLUTIONJohn Kuntz Kuntz Electric IncEDUCATIONVacantEXECUTIVEKevin Worden Rochester Area Habitat for HumanityFASHION SHOWKaren Blissenbach Design Studio BFINANCECarla Kilpatrick Home Federal Savings BankGOLF OUTINGLindsey Rippentrop Olmsted National BankGOVERNMENT AFFAIRSJohn Eckerman The Boldt CompanyGREEN BUILDINGKelly OrsquoMarro XRG Concepts LLCHOME SHOW ndash 2013Jeff Kalmes Hillers Flooring AmericaMARKETINGRob Easthouse Electrical Solutions amp ServiceMEMBERSHIP amp RETENTIONDan Bochman Kruse LumberNOMINATINGKerk Johnson Schwickertrsquos Tecta America LLC PERSONNELKevin Worden Rochester Area Habitat for HumanityPROGRAMDan Plizga Weis Builders IncPUBLIC WORKS ADVISORYJeff Broberg McGhie amp Betts - a Division of WSB amp Associates IncSHOWCASE OF HOMESBrandon Vagt XRG Concepts LLCSPIKE CLUBJay Burke Heartwood Homes of Rochester IncSPORTING CLAYSJames Coyle Kane amp Johnson Architects Inc
CouncilsBER EXECUTIVE COMMITTEEJJ Webster Kraus-Anderson Construction CompanyCBC EXECUTIVE COMMITTEEChris Terry Knutson Construction ServicesDEVELOPMENT COUNCILJohn Sipple Rochester Area Appraisals LLCREMODELERS EXECUTIVE COMMITTEESam Peyton Kingrsquos Flooring LLCREMODELERS TOURKaren Blissenbach Design Studio B
wwwRochesterAreaBuilderscom18 | June 2014
May MeetingThank you to Kingrsquos Flooring for sponsor-
ing the May Meeting held at the RAB Office We had a nice turnout and
enjoyed the beautiful weather as we sat outside and networked and enjoyed the lunch that Kingrsquos Flooring provided We
hope to see you all again in June
construction fashion expose
WwwRochesterAreaBuilderscomJune 2014 | 19
Members2014 Commercial Builders Council107 Members as of 123113AB Systems IncAccord Electric IncAdvanced DisposalAlpha Video amp AudioAssociated BankAlvin E Benike IncThe Blue Book
of Building amp Construction
The Boldt CompanyBraun Intertec
CorporationBriese Iron Works IncBrock White CompanyCO Brown AgencyCambriaCarpet OneCentury Painting amp
Decorating LLCChosen Valley Testing
IncConstruction
Partnership IncCounselor Realty of
Rochester IncCounty Materials
CorporationCRW architecture +
design group incCustom AlarmCustom
Communications IncDunlap amp SeegerEastwood Bankeci llcElcor ConstructionEnergy Panel StructuresEnergy Products amp
Design IncEnventisExpert Insulation IncFerguson EnterprisesFriedrich Construction
IncGerhardsGoodin CompanyHaley Comfort Systems
(Authorized FireSide Dealer)
WL Hall CompanyHGA Architects and
EngineersHDR ArchitectureHeartman InsuranceHillerrsquos Flooring AmericaHiMec at HomeHome Federal Savings
BankHunt Electric
CorporationKampM Glass CompanyKampS Heating AC
Plumbing amp ElectricalKane amp Johnson
Architects IncKey Builders IncKnutson Construction
ServicesKomitt Concrete IncKraus-Anderson
Construction CompanyKreofsky Building
SuppliesKruse LumberKuntz Electric IncKwik Trip IncLeitzen Concrete
Products IncEd Lunn Construction
IncMarvin Windows amp
DoorsMavo Systems IncMcGhie amp Betts Inc
McGough ConstructionMEC Construction IncMEP AssociatesMerchants BankMerit Contracting IncMinnesota Energy
Resources CorporationMinnwest BankNickelson Painting IncOlmsted National BankOnSitePalmer Soderberg IncPella Windows amp DoorsPeoplersquos Energy
CooperativePompeii Painting IncPrehn Building Sales
IncPremier Bank RochesterProBuild Company LLCReliable Contractors
Inc Rochester Area
Appraisals LLCRochester Area
Economic Development Inc
Rochester Public Utilities
Rochester Ready Mix Concrete Co
Rochester Sign Service Inc
Rochester Title amp Escrow Company Inc
Ryan Electric of Rochester Inc
Schoeppner IncSchwab LLCSchwickertrsquos Tecta
America LLCStantecStructural Design
Group IncSuperior MechanicalTamarack Materials of
Rochester IncThink Mutual BankTonna Mechanical IncTSP Architects amp
EngineersTW Construction
Solutions LLCUnited RentalsThe Urban StudioUS BankValor Mechanical IncVeit CompaniesVertical Limit
ConstructionViking Automatic
Sprinkler CompanyViking Electric SupplyWeis Builders IncWells Fargo Bank
Minnesota NAWendland UtzWidseth Smith NoltingYaggy Colby Associates
BUILDERS COUNCILCOMMERCIAL
a d i v i s i o n o f R o c h e s t e r A r e a B u i l d e r s I n c
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
June MeetingCome to the June meeting and hear an in depth discussion of the Comprehensive Housing Needs Assessment for Olmsted County conducted by Maxfield Research Inc The study projects housing demand for submarkets in the Olmsted County Market Area from 2013 through 2030 It also provides recommendations on the amount and types of housing that could be built to satisfy demand from current and future residents over the next decade and beyond
June MEETINGDATE Wednesday June 4th 2014TIME Registration amp Networking at 700 AM Program at 730 AMPLACE Ramada Hotel amp Conference CenterPROGRAM Olmsted County Comprehensive Housing Needs AssessmentSPEAKERS Matt Mullins Vice President Maxfield Research Inc
wwwRochesterAreaBuilderscom20 | June 2014
2014 VALUATION 2013 VALUATION
New Residential Single Family Dwelling 25 5531411 39 9046592
Townhome Dwelling 0 0 0 0
Two-Family Houses 0 0 0 0
Multi-Family Bldgs 0 0 0 0
Manufactured Home 0 0 0 0 Existing Residential Deck Addition 19 107504 11 39350
Room Addition 3 278763 4 569729
Porch Additions 0 0 1 15925
Other Additions 0 0 0 0
Basement Finish 29 342255 27 294745
Alterations 50 516115 36 341383
Multi-Family Addition 0 0 0 0
Multi-Family Alterations 2 113000 5 40095 New Commercial Assembly (Church) 0 0 0 0
Assembly (General) 0 0 0 0
Assembly (RestaurantBar) 1 1561000 1 198000
Business 0 0 1 300000
Education 0 0 0 0
FactoryIndustrial 0 0 0 0
Institution 0 0 0 0
Mercantile 0 0 0 0
Miscelaneous 0 0 0 0
Utility (General) 1 130000 0 0
Residential (CareAssisted Living) 0 0 0 0
Storage (General) 1 45000 1 56000
Storage (Warehouse) 0 0 0 0 Existing CommercialAddition 8 5812413 1 3669000
Alterations 34 5984762 32 5633723
Structural Shell 0 0 0 0
ldquoWhite Boxrdquo 1 15000 0 0
Interior Demolition Only 3 48500 1 39775
Other Phased Permits 0 0 0 0
Other ConstructionBusiness Signs 15 106565 23 175223
Advertising Sign 1 18000 0 0
Footings amp Foundations 2 220000 0 0
Demolition 3 0
Rochester Building Permits April 2014
January 33 39 27 20 3 13 3 6 19 11
February 31 31 19 13 1 8 8 20 15 14
March 59 37 30 29 16 27 24 32 29 28
April 58 58 44 27 29 25 19 29 39 25
TOTAL 181 165 122 89 49 73 54 87 102 78
May 77 69 50 30 33 20 14 22 27
June 81 59 43 36 36 12 26 32 33
July 58 36 60 23 21 23 8 39 39
August 69 36 43 28 26 15 18 38 21
September 65 31 33 28 33 10 19 22 23
October 71 49 34 19 31 14 16 23 34
November 40 38 23 26 30 21 20 22 26
December 60 23 11 16 15 12 16 14 22
TOTAL 702 506 417 302 274 200 191 299 326 78
Single Family Homes
Year To Date Statistics 2014 2013 NO VALUATION NO VALUATION
Building Permits Issued to Date 617 99659586 576 55353067
Single Family Dwelling 78 19118519 102 23271991
Multi-Family Buildings Total Units 39 1 3702052 0 0
Trade Permits Issued to Date 2163 22421315 2077 19001370
Electrical 719 10304793 649 10630028
Electrical (Temp Service) 65 14350 79 23350
Mechanical 570 4962388 543 4383007
Gas Piping 135 348756 141 120700
Fireplace 113 303426 117 283801
Hydronic System 57 1939043 40 736592
Plumbing 504 4548559 508 2823892
Total Permits YTD 2780 122180901 2653 74354437
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
WwwRochesterAreaBuilderscomJune 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
MARCH 2014
New Residential NUMBER VALUATION
Single Family Detached 7 1027450
Existing Residential
Basement Finish 5 81500
Alterations 1 $500
ByronBuilding Permits
MARCH 2014
New Residential NUMBER VALUATION
Single Family 3 455000
Existing Residential NUMBER VALUATION
Heating 1 3600
Basement Finish 1 20000
Pine IslandBuilding Permits
wwwRochesterAreaBuilderscom22 | June 2014
Much has recently been made of the notion that China has enough serious structural problems with its economy that chances are good it will experience a ldquohard landingrdquo defined as economic growth quickly slowing from 75 today to the low single digits This slowdown would weaken commodity prices hurting developing nations and reduce Chinese imports of high-quality finished goods from developed nations also hurting the US Europe and Japan While the Chinese economy has problems many are chronic and I believe the government has sufficient resources to manage the acute ones and avoid a hard landing
The key problems the Chinese economy suffers from are threefold a profound overreliance on large trade surpluses massive government overinvestment in infrastructure and a weak financial system that has resulted in both bad loans made by irresponsible local and regional governments and a highly leveraged and lightly regulated shadow banking system (sound familiar) that may well implode
The first problem is fading away After running trade surpluses in the $45 billionyear range through 2003 they skyrocketed to $400 billionyear by the end of 2008 However that highpoint coincided with the Great Recession which resulted in a huge contraction in trade and simultaneously an effort by many nations to boost exports to help their domestic economies As a result Chinese trade surpluses have averaged about $300 billionyear (about two-thirds of that with the US) since early 2009 and show no discernable upward trend Moreover as the Chinese economy is about twice as big today as it was in 2005 the economic impact of the now smaller trade surpluses on the overall economy is much smaller
The second problem of roads to nowhere massive over building of plant leading to ruinous excess capacity along with the construction of uninhabited ghost towns is being rectified And rectified they can be because these destructive outcomes are the direct result of policies pursued by the central government that are now being overhauled GDP growth targets are being reduced artificially low interest rates earned by savers are likely to rise in the near future and the currency which has been profoundly undervalued is slowly appreciating Collectively these policies will curb wasteful overinvestment and slowly replace it with increased domestic consumption and reduced exports
As for the substantial dodgy debt on the books of local and regional governments and shadow banks due to weakening housing prices and raw land values that act as collateral for many loans here the problem is serious That said Chinarsquos debt is about 25 of GDP giving the central government ample room to borrow should it be necessary Moreover the central government is beginning to force local and regional governments to sell some of the $7 trillion in assets they own in an effort to shore up their financial condition
Moreover with $4 trillion in foreign reserves and the ability to weaken the Chinese currency at will to boost exports China has tools other nations donrsquot have Lastly expect Beijing to re-stimulate sagging housing markets by relaxing home-purchase requirements and local governments to augment this policy by giving residency benefits to out-of-towners to further boost demand Combining the above with looser monetary policy makes me think that those making key policy decisions the brightest minds in the nation will see to it that China comes through this relatively unscathed
Beijing Balancing 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
WwwRochesterAreaBuilderscomJune 2014 | 23
NONE
MEMBERSHIPS PENDINGNONE
The firms listed below have applied for membership in the Rochester Area Builders Any member who objects to admission of any applicant shall notify the RAB Board of Directors in writing of the objection before
the next Board of Directors meeting
MEMBERSHIP TOTAL 453RETENTION RATE 929
As of 43014
WE WELCOME THE FOLLOWING NEW MEMBERS IN APRIL
Membership Information
Membership Renewals as of 43014
One Year
Altra Federal Credit Union 2013JE Dunn Construction 2013The Kitchen Design Studio 2013West Bank 2013Xcel Energy 2013
Two to Four Years
Elias Construction LLC 2011Lacina Siding amp Windows Inc 2011Solar Connection Inc 2011Chladek Construction LLC 2010MEP Associates 2010Rochester Asphalt Inc 2010Wildwood Sports Bar and Grill 2010
Five to Nine Years
Beckleyrsquos Office Products 2009Beetles Bar amp Grill Inc 2008Data-Smart Computers Inc 2008HDR Architecture 2008Legends Concrete Inc 2007RCON Homes Inc 2007Michael Jack LLC 2006WA Insurance 2006Anderson Construction 2005
Ten to 19 Years
Scott Berberich Construction LLC 2004First General Services of SE MN 2003Todd Eidem Construction Inc 2002Ames Construction Inc 2001Expert Insulation Inc 2001HiMEC at Home 2001Habitat for Humanity - Rochester Area 2000Home Improvement Professionals Inc 1999
25 Years amp More
Countryside Builders LLC 1989Radcliffe Homes amp Remodeling 1988Thomas Tool amp Supply 1987Kreofsky Building Supplies 1985Tile Superstore amp More 1985Barrier Free Access Inc 1984RampM Development Company 1970
NEW APPLICANTS
FAT WILLYrsquoS BAR amp GRILL
4325 Maine Ave SERochester MN 55904Phone 507- 206-4301
Contact Bill HendersonAssociate Member
RestaurantBarSponsored by
David Kane Kane amp Johnson Architects Inc
KAHLER HOSPITALITY GROUP
20 2nd Avenue SWRochester MN 55902Phone 507- 280-6200
Contact Marnie GlynnAssociate Member
HotelSponsored byNone Listed
MANUFACTURERrsquoS BANK amp TRUST
2020 2nd Street SWRochester MN 55902Phone 507- 226-8460
Contact Thomas HeepkeAssociate Member
BankSponsored by
Sue Hanson Rochester Title amp Escrow Company Inc
SAWYER CONSTRUCTION SERVICES INC9472 65th Street NE
Elgin MN 55932Phone 507-272-1740Contact Marv Sawyer
Associate MemberLawn CareTree Service
Sponsored byChristy Buchan Energy Products amp Design Inc
wwwRochesterAreaBuilderscom24 | June 2014
Put your membershipto work nowMoney-saving discounts that benefit yourbusiness your employees and your family
wwwnahborgMA
National Association of Home Builders
R
wwwRochesterAreaBuilderscom12 | June 2014
To Session or not to Session
That is the question that Matt answers
in this monthrsquos
Itrsquos time for another installment of ldquoHey Matt whatrsquos up with thatrdquo This weekrsquos topic is the recently closed MN Legislative Session
ldquoHey Matt I heard that this Legislative Session was being called an lsquoUnsessionrsquo Whatrsquos up with thatrdquo
Whew what a fast and busy legislative session the ldquounsessionrdquo turned out to be The Governor earlier this year requested that lawmakers take this session to focus on two main things the Bonding Bill and cleaning up Minnesotarsquos Laws Because the Governor asked this of lawmakers the session was dubbed the ldquounsessionrdquo While lawmakers did clean up a lot of language in existing laws and repealed unnecessary ones they were busy making strides in a lot of other areas as well Passing laws on topics as far ranging as Bullying and Legalized Medical Marijuana this session was anything BUT the ldquounsessionrdquo
Two things I wanted to cover Fire Sprinklers and the Bonding Bill First the Bonding Bill The Bonding Bill is basically a giant construction bill giving communities money for projects that they wouldnrsquot be able to afford without state assistance The reason it is called the ldquoBonding Billrdquo is because the state borrows money for these projects This includes projects like the Mayo Civic Center rehabilitation and expansion This year lawmakers passed over a $1 Billion bonding bill and construction package Rochester
received $35 Million in funding for the Mayo Civic Center This was the biggest single project in the Bonding Bill and kudos to the city for all their hard work on finally getting this included in the Bonding Bill
Fire Sprinklers We found ourselves at the legislature again trying to prevent a single family home indoor fire sprinkler mandate This has been an uphill battle from the beginning The Governor has twice vetoed stand-alone legislation that was passed with bipartisan support We received a lack-luster ruling from our administrative law judge hearing in February All the odds were against us so it was a bit of a miracle that we became the political bargaining chip that we did Here is how it happened
Senator Senjem had previously unsuccessfully tried to add an amendment to the Bonding Bill regarding the prohibition of a fire sprinkler mandate However he was able to craft an amendment that was added to the language in the Senatersquos version of the Bonding Bill This is important because in a Bonding Bill the Governor has the power to what is called ldquoline-item vetordquo certain projects This means that the Governor can take the Bonding Bill and scratch certain projects from it after the legislature has passed it through both houses of the legislature Rochester should remember when Governor Pawlenty line-itemed the Mayo Civic Center funding from the 2010 bonding bill But I digress While the Governor is able to veto certain projects the
WwwRochesterAreaBuilderscomJune 2014 | 13
Governor does not have the power to line-item veto policy in the Bonding bill This means that if the Governor wanted to prevent the legislature from passing a prohibition on the mandate of fire sprinklers in single family homes he would have to veto the ENTIRE $1 BILLION BONDING BILL Politically we thought there was no way he would do something like that especially in an election year so that is why what Senator Senjem did was so important for us
Now for what happened next The House and the Senate both have to pass versions of a Bonding Bill and then it usually has to be resolved in what is called the conference committee It was apparent the House of Representatives was not going to include the fire sprinkler language Senator Senjem had gotten inserted into the Senate version Then the Governor held a press conference the sole purpose of which was to say that he would veto the Bonding Bill if it included any language regarding the prohibition of a fire sprinkler mandate in single family homes This was the moment we had been waiting for Money cannot buy the kind of press you get from a Governor threatening to veto a $1 Billion bonding bill All of a sudden the public wanted to know what was going on with these fire sprinklers After years of fighting the conversation had reached the public That is the good news The bad news is that because the legislature was operating under a tight schedule the DFL leadership of the Senate and the House negotiated a bonding bill that did
not include language regarding fire sprinklers So we were officially out of the bonding bill
While it is disappointing we didnrsquot get the result we wanted we got a lot of free press out of the situation which is invaluable when trying to get the public on your side of an issue The final date when fire sprinklers will be required in single family homes larger than 4500 sq ft is unknown but it appears it will be sometime in early 2015
What a session the ldquounsessionrdquo turned out to be
If you have any questions ideas or anything at all you want to talk to me about give me a call Or email
Matt
Hey Matt I heard that this Legislative Session was being called an ldquoUnsessionrdquo Whatrsquos up with that
wwwRochesterAreaBuilderscom14 | June 2014
Erosion and Sediment Control at Residential Construction SitesSpring is here and so is the rain As you move into construction mode this year be sure your site adequately provides erosion and sediment control (ESC) ndash no matter how big or small the storm Planning and good practices are essential for keeping sediment on site and preventing enforcement actions Follow the steps below to be prepared for the next rain
bull Before breaking ground review the approved Grading Plan for your site to verify grades on your lot and on adjacent properties (if you have questions on the Grading Plan please contact us)
bull Review the approved grading plan for your site and the adjacent properties to be sure that drainage easements ditches slopes and conveyance areas have correct grades and positive drainage
bull Preserve existing vegetation and topsoil on-site preserving existing vegetation is especially important around the perimeter By preserving existing vegetation this may save you from installing additional perimeter sediment control measures and saving topsoil can save you and the homeowner money
bull Insure that perimeter and internal ESC BMPs are properly anchored and functioning Perimeter sediment control measures are required at all downslope locations on-site
bull Provide stabilized vehicle entrances and exits at your site Options to prevent track-out of sediment onto streets include rock entrances wood chips and mud mats Be certain that your subcontractors are aware of and use the designated access points
bull All area catch basins should have appropriate inlet protection installed in order to prevent soil and debris from entering the storm sewer and draining to our receiving waters Sediment must be regularly removed from inlet protection to prevent street flooding
bull Develop and utilize a concrete washout management plan and facility or return concrete
POOR ESC
WwwRochesterAreaBuilderscomJune 2014 | 15
The MPCA recently informed the City of Rochester that no comments were received on the Cityrsquos new storm water permit application during the public notice period which ended May 1st Therefore MPCA will extend permit coverage to the City under the August 2013 permit and the Cityrsquos effective date will be Thursday May 8th
Under the new 2013 permit the City must continue the permit activities already in place and meet the added requirements The new tasks that the City must address before May 7 2015 include
bull Completing a storm water management plan updatebull Preparing a new storm water ordinance that incorporates the new permit requirementsbull Updating all standard operating procedures and preparing new enforcement response proceduresbull Assessing the Cityrsquos status in meeting Total Maximum Daily Load Waste Load Allocationsbull Developing a pond effectiveness assessment planbull Enhancing the City facilities and operations inventorybull Creating an employee and business technical education program
Of particular interest to RAB members will be the new ordinance The City expects to have a draft ready for public review by October Any questions about the new permit can be directed to Barb Huberty at bhubertyrochestermngov
UPDATE New State Storm Water Permit
washout to the concrete vendor No liquid or solid concrete waste from washout operations can be in contact with the ground
bull Keep a clean construction site One of the biggest complaints the City receives about construction sites is the construction debris and litter Create and use a garbage corral or dumpster and empty them before they overflow Ask contractors to compact their debris so it doesnrsquot blow out of the container on windy days
bull Place topsoil and vegetate all exposed soil areas as soon as fine grading is complete The City of Rochester standards require a minimum of 4rdquo of topsoil on disturbed areas donrsquot substitute subsoil for topsoil
bull Learn more about useful storm water management practices and state construction storm water permit requirements at the MPCA website wwwpcastatemnuswaterstormwater
Rochester residents want good water quality and quality construction Improper ESC on construction sites has a direct negative impact on our waterways Be proactive and take the time to properly inspect and maintain your ESC best management practices to stabilize your construction site and prevent unintentional water pollution
For more information about this topic please contact Mike Kraszewski (328-2431) or Kevin Kuisle (328-2457) at the Rochester Public Works Department
GOOD ESC
wwwRochesterAreaBuilderscom16 | June 2014
WwwRochesterAreaBuilderscomJune 2014 | 17
Committee UpdatesNOMINATING COMMITTEECHAIRPERSON John Eckerman Boldt Construction
The Nominating Committee will be meeting soon to discuss nominations for the 2015 Board of Directors as well as chairpersons for our many committees and councils If you would like to recommend a member for a position or if you would like to recommend yourself please call John at the office 282-7698 We are always looking for new people to be involved in the management of our association
SHOWCASE COMMITTEECHAIRPERSON Brandon Vagt XRG Concepts
The Fall Showcase of Homes is scheduled for September 13th 14th and 20th 21st Have you started building a home to enter in the Showcase Itrsquos a wonderful opportunity to have your home seen by thousands of potential customers Information packets have been mailed to residential builders and the first of three deadlines is June 19th
Committee ChairpersonsAMBASSADORSGreg Hird First Alliance Credit UnionAWARDSTBABUILDING MAINTENANCETJ Schutz Advanced Building Center IncBUILDING SAFETY ADVISORYMickey Elias Elias Construction LLCCOMMUNITY RELATIONSTony Kunz Hillerrsquos Flooring AmericaDISPUTE RESOLUTIONJohn Kuntz Kuntz Electric IncEDUCATIONVacantEXECUTIVEKevin Worden Rochester Area Habitat for HumanityFASHION SHOWKaren Blissenbach Design Studio BFINANCECarla Kilpatrick Home Federal Savings BankGOLF OUTINGLindsey Rippentrop Olmsted National BankGOVERNMENT AFFAIRSJohn Eckerman The Boldt CompanyGREEN BUILDINGKelly OrsquoMarro XRG Concepts LLCHOME SHOW ndash 2013Jeff Kalmes Hillers Flooring AmericaMARKETINGRob Easthouse Electrical Solutions amp ServiceMEMBERSHIP amp RETENTIONDan Bochman Kruse LumberNOMINATINGKerk Johnson Schwickertrsquos Tecta America LLC PERSONNELKevin Worden Rochester Area Habitat for HumanityPROGRAMDan Plizga Weis Builders IncPUBLIC WORKS ADVISORYJeff Broberg McGhie amp Betts - a Division of WSB amp Associates IncSHOWCASE OF HOMESBrandon Vagt XRG Concepts LLCSPIKE CLUBJay Burke Heartwood Homes of Rochester IncSPORTING CLAYSJames Coyle Kane amp Johnson Architects Inc
CouncilsBER EXECUTIVE COMMITTEEJJ Webster Kraus-Anderson Construction CompanyCBC EXECUTIVE COMMITTEEChris Terry Knutson Construction ServicesDEVELOPMENT COUNCILJohn Sipple Rochester Area Appraisals LLCREMODELERS EXECUTIVE COMMITTEESam Peyton Kingrsquos Flooring LLCREMODELERS TOURKaren Blissenbach Design Studio B
wwwRochesterAreaBuilderscom18 | June 2014
May MeetingThank you to Kingrsquos Flooring for sponsor-
ing the May Meeting held at the RAB Office We had a nice turnout and
enjoyed the beautiful weather as we sat outside and networked and enjoyed the lunch that Kingrsquos Flooring provided We
hope to see you all again in June
construction fashion expose
WwwRochesterAreaBuilderscomJune 2014 | 19
Members2014 Commercial Builders Council107 Members as of 123113AB Systems IncAccord Electric IncAdvanced DisposalAlpha Video amp AudioAssociated BankAlvin E Benike IncThe Blue Book
of Building amp Construction
The Boldt CompanyBraun Intertec
CorporationBriese Iron Works IncBrock White CompanyCO Brown AgencyCambriaCarpet OneCentury Painting amp
Decorating LLCChosen Valley Testing
IncConstruction
Partnership IncCounselor Realty of
Rochester IncCounty Materials
CorporationCRW architecture +
design group incCustom AlarmCustom
Communications IncDunlap amp SeegerEastwood Bankeci llcElcor ConstructionEnergy Panel StructuresEnergy Products amp
Design IncEnventisExpert Insulation IncFerguson EnterprisesFriedrich Construction
IncGerhardsGoodin CompanyHaley Comfort Systems
(Authorized FireSide Dealer)
WL Hall CompanyHGA Architects and
EngineersHDR ArchitectureHeartman InsuranceHillerrsquos Flooring AmericaHiMec at HomeHome Federal Savings
BankHunt Electric
CorporationKampM Glass CompanyKampS Heating AC
Plumbing amp ElectricalKane amp Johnson
Architects IncKey Builders IncKnutson Construction
ServicesKomitt Concrete IncKraus-Anderson
Construction CompanyKreofsky Building
SuppliesKruse LumberKuntz Electric IncKwik Trip IncLeitzen Concrete
Products IncEd Lunn Construction
IncMarvin Windows amp
DoorsMavo Systems IncMcGhie amp Betts Inc
McGough ConstructionMEC Construction IncMEP AssociatesMerchants BankMerit Contracting IncMinnesota Energy
Resources CorporationMinnwest BankNickelson Painting IncOlmsted National BankOnSitePalmer Soderberg IncPella Windows amp DoorsPeoplersquos Energy
CooperativePompeii Painting IncPrehn Building Sales
IncPremier Bank RochesterProBuild Company LLCReliable Contractors
Inc Rochester Area
Appraisals LLCRochester Area
Economic Development Inc
Rochester Public Utilities
Rochester Ready Mix Concrete Co
Rochester Sign Service Inc
Rochester Title amp Escrow Company Inc
Ryan Electric of Rochester Inc
Schoeppner IncSchwab LLCSchwickertrsquos Tecta
America LLCStantecStructural Design
Group IncSuperior MechanicalTamarack Materials of
Rochester IncThink Mutual BankTonna Mechanical IncTSP Architects amp
EngineersTW Construction
Solutions LLCUnited RentalsThe Urban StudioUS BankValor Mechanical IncVeit CompaniesVertical Limit
ConstructionViking Automatic
Sprinkler CompanyViking Electric SupplyWeis Builders IncWells Fargo Bank
Minnesota NAWendland UtzWidseth Smith NoltingYaggy Colby Associates
BUILDERS COUNCILCOMMERCIAL
a d i v i s i o n o f R o c h e s t e r A r e a B u i l d e r s I n c
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
June MeetingCome to the June meeting and hear an in depth discussion of the Comprehensive Housing Needs Assessment for Olmsted County conducted by Maxfield Research Inc The study projects housing demand for submarkets in the Olmsted County Market Area from 2013 through 2030 It also provides recommendations on the amount and types of housing that could be built to satisfy demand from current and future residents over the next decade and beyond
June MEETINGDATE Wednesday June 4th 2014TIME Registration amp Networking at 700 AM Program at 730 AMPLACE Ramada Hotel amp Conference CenterPROGRAM Olmsted County Comprehensive Housing Needs AssessmentSPEAKERS Matt Mullins Vice President Maxfield Research Inc
wwwRochesterAreaBuilderscom20 | June 2014
2014 VALUATION 2013 VALUATION
New Residential Single Family Dwelling 25 5531411 39 9046592
Townhome Dwelling 0 0 0 0
Two-Family Houses 0 0 0 0
Multi-Family Bldgs 0 0 0 0
Manufactured Home 0 0 0 0 Existing Residential Deck Addition 19 107504 11 39350
Room Addition 3 278763 4 569729
Porch Additions 0 0 1 15925
Other Additions 0 0 0 0
Basement Finish 29 342255 27 294745
Alterations 50 516115 36 341383
Multi-Family Addition 0 0 0 0
Multi-Family Alterations 2 113000 5 40095 New Commercial Assembly (Church) 0 0 0 0
Assembly (General) 0 0 0 0
Assembly (RestaurantBar) 1 1561000 1 198000
Business 0 0 1 300000
Education 0 0 0 0
FactoryIndustrial 0 0 0 0
Institution 0 0 0 0
Mercantile 0 0 0 0
Miscelaneous 0 0 0 0
Utility (General) 1 130000 0 0
Residential (CareAssisted Living) 0 0 0 0
Storage (General) 1 45000 1 56000
Storage (Warehouse) 0 0 0 0 Existing CommercialAddition 8 5812413 1 3669000
Alterations 34 5984762 32 5633723
Structural Shell 0 0 0 0
ldquoWhite Boxrdquo 1 15000 0 0
Interior Demolition Only 3 48500 1 39775
Other Phased Permits 0 0 0 0
Other ConstructionBusiness Signs 15 106565 23 175223
Advertising Sign 1 18000 0 0
Footings amp Foundations 2 220000 0 0
Demolition 3 0
Rochester Building Permits April 2014
January 33 39 27 20 3 13 3 6 19 11
February 31 31 19 13 1 8 8 20 15 14
March 59 37 30 29 16 27 24 32 29 28
April 58 58 44 27 29 25 19 29 39 25
TOTAL 181 165 122 89 49 73 54 87 102 78
May 77 69 50 30 33 20 14 22 27
June 81 59 43 36 36 12 26 32 33
July 58 36 60 23 21 23 8 39 39
August 69 36 43 28 26 15 18 38 21
September 65 31 33 28 33 10 19 22 23
October 71 49 34 19 31 14 16 23 34
November 40 38 23 26 30 21 20 22 26
December 60 23 11 16 15 12 16 14 22
TOTAL 702 506 417 302 274 200 191 299 326 78
Single Family Homes
Year To Date Statistics 2014 2013 NO VALUATION NO VALUATION
Building Permits Issued to Date 617 99659586 576 55353067
Single Family Dwelling 78 19118519 102 23271991
Multi-Family Buildings Total Units 39 1 3702052 0 0
Trade Permits Issued to Date 2163 22421315 2077 19001370
Electrical 719 10304793 649 10630028
Electrical (Temp Service) 65 14350 79 23350
Mechanical 570 4962388 543 4383007
Gas Piping 135 348756 141 120700
Fireplace 113 303426 117 283801
Hydronic System 57 1939043 40 736592
Plumbing 504 4548559 508 2823892
Total Permits YTD 2780 122180901 2653 74354437
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
WwwRochesterAreaBuilderscomJune 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
MARCH 2014
New Residential NUMBER VALUATION
Single Family Detached 7 1027450
Existing Residential
Basement Finish 5 81500
Alterations 1 $500
ByronBuilding Permits
MARCH 2014
New Residential NUMBER VALUATION
Single Family 3 455000
Existing Residential NUMBER VALUATION
Heating 1 3600
Basement Finish 1 20000
Pine IslandBuilding Permits
wwwRochesterAreaBuilderscom22 | June 2014
Much has recently been made of the notion that China has enough serious structural problems with its economy that chances are good it will experience a ldquohard landingrdquo defined as economic growth quickly slowing from 75 today to the low single digits This slowdown would weaken commodity prices hurting developing nations and reduce Chinese imports of high-quality finished goods from developed nations also hurting the US Europe and Japan While the Chinese economy has problems many are chronic and I believe the government has sufficient resources to manage the acute ones and avoid a hard landing
The key problems the Chinese economy suffers from are threefold a profound overreliance on large trade surpluses massive government overinvestment in infrastructure and a weak financial system that has resulted in both bad loans made by irresponsible local and regional governments and a highly leveraged and lightly regulated shadow banking system (sound familiar) that may well implode
The first problem is fading away After running trade surpluses in the $45 billionyear range through 2003 they skyrocketed to $400 billionyear by the end of 2008 However that highpoint coincided with the Great Recession which resulted in a huge contraction in trade and simultaneously an effort by many nations to boost exports to help their domestic economies As a result Chinese trade surpluses have averaged about $300 billionyear (about two-thirds of that with the US) since early 2009 and show no discernable upward trend Moreover as the Chinese economy is about twice as big today as it was in 2005 the economic impact of the now smaller trade surpluses on the overall economy is much smaller
The second problem of roads to nowhere massive over building of plant leading to ruinous excess capacity along with the construction of uninhabited ghost towns is being rectified And rectified they can be because these destructive outcomes are the direct result of policies pursued by the central government that are now being overhauled GDP growth targets are being reduced artificially low interest rates earned by savers are likely to rise in the near future and the currency which has been profoundly undervalued is slowly appreciating Collectively these policies will curb wasteful overinvestment and slowly replace it with increased domestic consumption and reduced exports
As for the substantial dodgy debt on the books of local and regional governments and shadow banks due to weakening housing prices and raw land values that act as collateral for many loans here the problem is serious That said Chinarsquos debt is about 25 of GDP giving the central government ample room to borrow should it be necessary Moreover the central government is beginning to force local and regional governments to sell some of the $7 trillion in assets they own in an effort to shore up their financial condition
Moreover with $4 trillion in foreign reserves and the ability to weaken the Chinese currency at will to boost exports China has tools other nations donrsquot have Lastly expect Beijing to re-stimulate sagging housing markets by relaxing home-purchase requirements and local governments to augment this policy by giving residency benefits to out-of-towners to further boost demand Combining the above with looser monetary policy makes me think that those making key policy decisions the brightest minds in the nation will see to it that China comes through this relatively unscathed
Beijing Balancing 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
WwwRochesterAreaBuilderscomJune 2014 | 23
NONE
MEMBERSHIPS PENDINGNONE
The firms listed below have applied for membership in the Rochester Area Builders Any member who objects to admission of any applicant shall notify the RAB Board of Directors in writing of the objection before
the next Board of Directors meeting
MEMBERSHIP TOTAL 453RETENTION RATE 929
As of 43014
WE WELCOME THE FOLLOWING NEW MEMBERS IN APRIL
Membership Information
Membership Renewals as of 43014
One Year
Altra Federal Credit Union 2013JE Dunn Construction 2013The Kitchen Design Studio 2013West Bank 2013Xcel Energy 2013
Two to Four Years
Elias Construction LLC 2011Lacina Siding amp Windows Inc 2011Solar Connection Inc 2011Chladek Construction LLC 2010MEP Associates 2010Rochester Asphalt Inc 2010Wildwood Sports Bar and Grill 2010
Five to Nine Years
Beckleyrsquos Office Products 2009Beetles Bar amp Grill Inc 2008Data-Smart Computers Inc 2008HDR Architecture 2008Legends Concrete Inc 2007RCON Homes Inc 2007Michael Jack LLC 2006WA Insurance 2006Anderson Construction 2005
Ten to 19 Years
Scott Berberich Construction LLC 2004First General Services of SE MN 2003Todd Eidem Construction Inc 2002Ames Construction Inc 2001Expert Insulation Inc 2001HiMEC at Home 2001Habitat for Humanity - Rochester Area 2000Home Improvement Professionals Inc 1999
25 Years amp More
Countryside Builders LLC 1989Radcliffe Homes amp Remodeling 1988Thomas Tool amp Supply 1987Kreofsky Building Supplies 1985Tile Superstore amp More 1985Barrier Free Access Inc 1984RampM Development Company 1970
NEW APPLICANTS
FAT WILLYrsquoS BAR amp GRILL
4325 Maine Ave SERochester MN 55904Phone 507- 206-4301
Contact Bill HendersonAssociate Member
RestaurantBarSponsored by
David Kane Kane amp Johnson Architects Inc
KAHLER HOSPITALITY GROUP
20 2nd Avenue SWRochester MN 55902Phone 507- 280-6200
Contact Marnie GlynnAssociate Member
HotelSponsored byNone Listed
MANUFACTURERrsquoS BANK amp TRUST
2020 2nd Street SWRochester MN 55902Phone 507- 226-8460
Contact Thomas HeepkeAssociate Member
BankSponsored by
Sue Hanson Rochester Title amp Escrow Company Inc
SAWYER CONSTRUCTION SERVICES INC9472 65th Street NE
Elgin MN 55932Phone 507-272-1740Contact Marv Sawyer
Associate MemberLawn CareTree Service
Sponsored byChristy Buchan Energy Products amp Design Inc
wwwRochesterAreaBuilderscom24 | June 2014
Put your membershipto work nowMoney-saving discounts that benefit yourbusiness your employees and your family
wwwnahborgMA
National Association of Home Builders
R
WwwRochesterAreaBuilderscomJune 2014 | 13
Governor does not have the power to line-item veto policy in the Bonding bill This means that if the Governor wanted to prevent the legislature from passing a prohibition on the mandate of fire sprinklers in single family homes he would have to veto the ENTIRE $1 BILLION BONDING BILL Politically we thought there was no way he would do something like that especially in an election year so that is why what Senator Senjem did was so important for us
Now for what happened next The House and the Senate both have to pass versions of a Bonding Bill and then it usually has to be resolved in what is called the conference committee It was apparent the House of Representatives was not going to include the fire sprinkler language Senator Senjem had gotten inserted into the Senate version Then the Governor held a press conference the sole purpose of which was to say that he would veto the Bonding Bill if it included any language regarding the prohibition of a fire sprinkler mandate in single family homes This was the moment we had been waiting for Money cannot buy the kind of press you get from a Governor threatening to veto a $1 Billion bonding bill All of a sudden the public wanted to know what was going on with these fire sprinklers After years of fighting the conversation had reached the public That is the good news The bad news is that because the legislature was operating under a tight schedule the DFL leadership of the Senate and the House negotiated a bonding bill that did
not include language regarding fire sprinklers So we were officially out of the bonding bill
While it is disappointing we didnrsquot get the result we wanted we got a lot of free press out of the situation which is invaluable when trying to get the public on your side of an issue The final date when fire sprinklers will be required in single family homes larger than 4500 sq ft is unknown but it appears it will be sometime in early 2015
What a session the ldquounsessionrdquo turned out to be
If you have any questions ideas or anything at all you want to talk to me about give me a call Or email
Matt
Hey Matt I heard that this Legislative Session was being called an ldquoUnsessionrdquo Whatrsquos up with that
wwwRochesterAreaBuilderscom14 | June 2014
Erosion and Sediment Control at Residential Construction SitesSpring is here and so is the rain As you move into construction mode this year be sure your site adequately provides erosion and sediment control (ESC) ndash no matter how big or small the storm Planning and good practices are essential for keeping sediment on site and preventing enforcement actions Follow the steps below to be prepared for the next rain
bull Before breaking ground review the approved Grading Plan for your site to verify grades on your lot and on adjacent properties (if you have questions on the Grading Plan please contact us)
bull Review the approved grading plan for your site and the adjacent properties to be sure that drainage easements ditches slopes and conveyance areas have correct grades and positive drainage
bull Preserve existing vegetation and topsoil on-site preserving existing vegetation is especially important around the perimeter By preserving existing vegetation this may save you from installing additional perimeter sediment control measures and saving topsoil can save you and the homeowner money
bull Insure that perimeter and internal ESC BMPs are properly anchored and functioning Perimeter sediment control measures are required at all downslope locations on-site
bull Provide stabilized vehicle entrances and exits at your site Options to prevent track-out of sediment onto streets include rock entrances wood chips and mud mats Be certain that your subcontractors are aware of and use the designated access points
bull All area catch basins should have appropriate inlet protection installed in order to prevent soil and debris from entering the storm sewer and draining to our receiving waters Sediment must be regularly removed from inlet protection to prevent street flooding
bull Develop and utilize a concrete washout management plan and facility or return concrete
POOR ESC
WwwRochesterAreaBuilderscomJune 2014 | 15
The MPCA recently informed the City of Rochester that no comments were received on the Cityrsquos new storm water permit application during the public notice period which ended May 1st Therefore MPCA will extend permit coverage to the City under the August 2013 permit and the Cityrsquos effective date will be Thursday May 8th
Under the new 2013 permit the City must continue the permit activities already in place and meet the added requirements The new tasks that the City must address before May 7 2015 include
bull Completing a storm water management plan updatebull Preparing a new storm water ordinance that incorporates the new permit requirementsbull Updating all standard operating procedures and preparing new enforcement response proceduresbull Assessing the Cityrsquos status in meeting Total Maximum Daily Load Waste Load Allocationsbull Developing a pond effectiveness assessment planbull Enhancing the City facilities and operations inventorybull Creating an employee and business technical education program
Of particular interest to RAB members will be the new ordinance The City expects to have a draft ready for public review by October Any questions about the new permit can be directed to Barb Huberty at bhubertyrochestermngov
UPDATE New State Storm Water Permit
washout to the concrete vendor No liquid or solid concrete waste from washout operations can be in contact with the ground
bull Keep a clean construction site One of the biggest complaints the City receives about construction sites is the construction debris and litter Create and use a garbage corral or dumpster and empty them before they overflow Ask contractors to compact their debris so it doesnrsquot blow out of the container on windy days
bull Place topsoil and vegetate all exposed soil areas as soon as fine grading is complete The City of Rochester standards require a minimum of 4rdquo of topsoil on disturbed areas donrsquot substitute subsoil for topsoil
bull Learn more about useful storm water management practices and state construction storm water permit requirements at the MPCA website wwwpcastatemnuswaterstormwater
Rochester residents want good water quality and quality construction Improper ESC on construction sites has a direct negative impact on our waterways Be proactive and take the time to properly inspect and maintain your ESC best management practices to stabilize your construction site and prevent unintentional water pollution
For more information about this topic please contact Mike Kraszewski (328-2431) or Kevin Kuisle (328-2457) at the Rochester Public Works Department
GOOD ESC
wwwRochesterAreaBuilderscom16 | June 2014
WwwRochesterAreaBuilderscomJune 2014 | 17
Committee UpdatesNOMINATING COMMITTEECHAIRPERSON John Eckerman Boldt Construction
The Nominating Committee will be meeting soon to discuss nominations for the 2015 Board of Directors as well as chairpersons for our many committees and councils If you would like to recommend a member for a position or if you would like to recommend yourself please call John at the office 282-7698 We are always looking for new people to be involved in the management of our association
SHOWCASE COMMITTEECHAIRPERSON Brandon Vagt XRG Concepts
The Fall Showcase of Homes is scheduled for September 13th 14th and 20th 21st Have you started building a home to enter in the Showcase Itrsquos a wonderful opportunity to have your home seen by thousands of potential customers Information packets have been mailed to residential builders and the first of three deadlines is June 19th
Committee ChairpersonsAMBASSADORSGreg Hird First Alliance Credit UnionAWARDSTBABUILDING MAINTENANCETJ Schutz Advanced Building Center IncBUILDING SAFETY ADVISORYMickey Elias Elias Construction LLCCOMMUNITY RELATIONSTony Kunz Hillerrsquos Flooring AmericaDISPUTE RESOLUTIONJohn Kuntz Kuntz Electric IncEDUCATIONVacantEXECUTIVEKevin Worden Rochester Area Habitat for HumanityFASHION SHOWKaren Blissenbach Design Studio BFINANCECarla Kilpatrick Home Federal Savings BankGOLF OUTINGLindsey Rippentrop Olmsted National BankGOVERNMENT AFFAIRSJohn Eckerman The Boldt CompanyGREEN BUILDINGKelly OrsquoMarro XRG Concepts LLCHOME SHOW ndash 2013Jeff Kalmes Hillers Flooring AmericaMARKETINGRob Easthouse Electrical Solutions amp ServiceMEMBERSHIP amp RETENTIONDan Bochman Kruse LumberNOMINATINGKerk Johnson Schwickertrsquos Tecta America LLC PERSONNELKevin Worden Rochester Area Habitat for HumanityPROGRAMDan Plizga Weis Builders IncPUBLIC WORKS ADVISORYJeff Broberg McGhie amp Betts - a Division of WSB amp Associates IncSHOWCASE OF HOMESBrandon Vagt XRG Concepts LLCSPIKE CLUBJay Burke Heartwood Homes of Rochester IncSPORTING CLAYSJames Coyle Kane amp Johnson Architects Inc
CouncilsBER EXECUTIVE COMMITTEEJJ Webster Kraus-Anderson Construction CompanyCBC EXECUTIVE COMMITTEEChris Terry Knutson Construction ServicesDEVELOPMENT COUNCILJohn Sipple Rochester Area Appraisals LLCREMODELERS EXECUTIVE COMMITTEESam Peyton Kingrsquos Flooring LLCREMODELERS TOURKaren Blissenbach Design Studio B
wwwRochesterAreaBuilderscom18 | June 2014
May MeetingThank you to Kingrsquos Flooring for sponsor-
ing the May Meeting held at the RAB Office We had a nice turnout and
enjoyed the beautiful weather as we sat outside and networked and enjoyed the lunch that Kingrsquos Flooring provided We
hope to see you all again in June
construction fashion expose
WwwRochesterAreaBuilderscomJune 2014 | 19
Members2014 Commercial Builders Council107 Members as of 123113AB Systems IncAccord Electric IncAdvanced DisposalAlpha Video amp AudioAssociated BankAlvin E Benike IncThe Blue Book
of Building amp Construction
The Boldt CompanyBraun Intertec
CorporationBriese Iron Works IncBrock White CompanyCO Brown AgencyCambriaCarpet OneCentury Painting amp
Decorating LLCChosen Valley Testing
IncConstruction
Partnership IncCounselor Realty of
Rochester IncCounty Materials
CorporationCRW architecture +
design group incCustom AlarmCustom
Communications IncDunlap amp SeegerEastwood Bankeci llcElcor ConstructionEnergy Panel StructuresEnergy Products amp
Design IncEnventisExpert Insulation IncFerguson EnterprisesFriedrich Construction
IncGerhardsGoodin CompanyHaley Comfort Systems
(Authorized FireSide Dealer)
WL Hall CompanyHGA Architects and
EngineersHDR ArchitectureHeartman InsuranceHillerrsquos Flooring AmericaHiMec at HomeHome Federal Savings
BankHunt Electric
CorporationKampM Glass CompanyKampS Heating AC
Plumbing amp ElectricalKane amp Johnson
Architects IncKey Builders IncKnutson Construction
ServicesKomitt Concrete IncKraus-Anderson
Construction CompanyKreofsky Building
SuppliesKruse LumberKuntz Electric IncKwik Trip IncLeitzen Concrete
Products IncEd Lunn Construction
IncMarvin Windows amp
DoorsMavo Systems IncMcGhie amp Betts Inc
McGough ConstructionMEC Construction IncMEP AssociatesMerchants BankMerit Contracting IncMinnesota Energy
Resources CorporationMinnwest BankNickelson Painting IncOlmsted National BankOnSitePalmer Soderberg IncPella Windows amp DoorsPeoplersquos Energy
CooperativePompeii Painting IncPrehn Building Sales
IncPremier Bank RochesterProBuild Company LLCReliable Contractors
Inc Rochester Area
Appraisals LLCRochester Area
Economic Development Inc
Rochester Public Utilities
Rochester Ready Mix Concrete Co
Rochester Sign Service Inc
Rochester Title amp Escrow Company Inc
Ryan Electric of Rochester Inc
Schoeppner IncSchwab LLCSchwickertrsquos Tecta
America LLCStantecStructural Design
Group IncSuperior MechanicalTamarack Materials of
Rochester IncThink Mutual BankTonna Mechanical IncTSP Architects amp
EngineersTW Construction
Solutions LLCUnited RentalsThe Urban StudioUS BankValor Mechanical IncVeit CompaniesVertical Limit
ConstructionViking Automatic
Sprinkler CompanyViking Electric SupplyWeis Builders IncWells Fargo Bank
Minnesota NAWendland UtzWidseth Smith NoltingYaggy Colby Associates
BUILDERS COUNCILCOMMERCIAL
a d i v i s i o n o f R o c h e s t e r A r e a B u i l d e r s I n c
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
June MeetingCome to the June meeting and hear an in depth discussion of the Comprehensive Housing Needs Assessment for Olmsted County conducted by Maxfield Research Inc The study projects housing demand for submarkets in the Olmsted County Market Area from 2013 through 2030 It also provides recommendations on the amount and types of housing that could be built to satisfy demand from current and future residents over the next decade and beyond
June MEETINGDATE Wednesday June 4th 2014TIME Registration amp Networking at 700 AM Program at 730 AMPLACE Ramada Hotel amp Conference CenterPROGRAM Olmsted County Comprehensive Housing Needs AssessmentSPEAKERS Matt Mullins Vice President Maxfield Research Inc
wwwRochesterAreaBuilderscom20 | June 2014
2014 VALUATION 2013 VALUATION
New Residential Single Family Dwelling 25 5531411 39 9046592
Townhome Dwelling 0 0 0 0
Two-Family Houses 0 0 0 0
Multi-Family Bldgs 0 0 0 0
Manufactured Home 0 0 0 0 Existing Residential Deck Addition 19 107504 11 39350
Room Addition 3 278763 4 569729
Porch Additions 0 0 1 15925
Other Additions 0 0 0 0
Basement Finish 29 342255 27 294745
Alterations 50 516115 36 341383
Multi-Family Addition 0 0 0 0
Multi-Family Alterations 2 113000 5 40095 New Commercial Assembly (Church) 0 0 0 0
Assembly (General) 0 0 0 0
Assembly (RestaurantBar) 1 1561000 1 198000
Business 0 0 1 300000
Education 0 0 0 0
FactoryIndustrial 0 0 0 0
Institution 0 0 0 0
Mercantile 0 0 0 0
Miscelaneous 0 0 0 0
Utility (General) 1 130000 0 0
Residential (CareAssisted Living) 0 0 0 0
Storage (General) 1 45000 1 56000
Storage (Warehouse) 0 0 0 0 Existing CommercialAddition 8 5812413 1 3669000
Alterations 34 5984762 32 5633723
Structural Shell 0 0 0 0
ldquoWhite Boxrdquo 1 15000 0 0
Interior Demolition Only 3 48500 1 39775
Other Phased Permits 0 0 0 0
Other ConstructionBusiness Signs 15 106565 23 175223
Advertising Sign 1 18000 0 0
Footings amp Foundations 2 220000 0 0
Demolition 3 0
Rochester Building Permits April 2014
January 33 39 27 20 3 13 3 6 19 11
February 31 31 19 13 1 8 8 20 15 14
March 59 37 30 29 16 27 24 32 29 28
April 58 58 44 27 29 25 19 29 39 25
TOTAL 181 165 122 89 49 73 54 87 102 78
May 77 69 50 30 33 20 14 22 27
June 81 59 43 36 36 12 26 32 33
July 58 36 60 23 21 23 8 39 39
August 69 36 43 28 26 15 18 38 21
September 65 31 33 28 33 10 19 22 23
October 71 49 34 19 31 14 16 23 34
November 40 38 23 26 30 21 20 22 26
December 60 23 11 16 15 12 16 14 22
TOTAL 702 506 417 302 274 200 191 299 326 78
Single Family Homes
Year To Date Statistics 2014 2013 NO VALUATION NO VALUATION
Building Permits Issued to Date 617 99659586 576 55353067
Single Family Dwelling 78 19118519 102 23271991
Multi-Family Buildings Total Units 39 1 3702052 0 0
Trade Permits Issued to Date 2163 22421315 2077 19001370
Electrical 719 10304793 649 10630028
Electrical (Temp Service) 65 14350 79 23350
Mechanical 570 4962388 543 4383007
Gas Piping 135 348756 141 120700
Fireplace 113 303426 117 283801
Hydronic System 57 1939043 40 736592
Plumbing 504 4548559 508 2823892
Total Permits YTD 2780 122180901 2653 74354437
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
WwwRochesterAreaBuilderscomJune 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
MARCH 2014
New Residential NUMBER VALUATION
Single Family Detached 7 1027450
Existing Residential
Basement Finish 5 81500
Alterations 1 $500
ByronBuilding Permits
MARCH 2014
New Residential NUMBER VALUATION
Single Family 3 455000
Existing Residential NUMBER VALUATION
Heating 1 3600
Basement Finish 1 20000
Pine IslandBuilding Permits
wwwRochesterAreaBuilderscom22 | June 2014
Much has recently been made of the notion that China has enough serious structural problems with its economy that chances are good it will experience a ldquohard landingrdquo defined as economic growth quickly slowing from 75 today to the low single digits This slowdown would weaken commodity prices hurting developing nations and reduce Chinese imports of high-quality finished goods from developed nations also hurting the US Europe and Japan While the Chinese economy has problems many are chronic and I believe the government has sufficient resources to manage the acute ones and avoid a hard landing
The key problems the Chinese economy suffers from are threefold a profound overreliance on large trade surpluses massive government overinvestment in infrastructure and a weak financial system that has resulted in both bad loans made by irresponsible local and regional governments and a highly leveraged and lightly regulated shadow banking system (sound familiar) that may well implode
The first problem is fading away After running trade surpluses in the $45 billionyear range through 2003 they skyrocketed to $400 billionyear by the end of 2008 However that highpoint coincided with the Great Recession which resulted in a huge contraction in trade and simultaneously an effort by many nations to boost exports to help their domestic economies As a result Chinese trade surpluses have averaged about $300 billionyear (about two-thirds of that with the US) since early 2009 and show no discernable upward trend Moreover as the Chinese economy is about twice as big today as it was in 2005 the economic impact of the now smaller trade surpluses on the overall economy is much smaller
The second problem of roads to nowhere massive over building of plant leading to ruinous excess capacity along with the construction of uninhabited ghost towns is being rectified And rectified they can be because these destructive outcomes are the direct result of policies pursued by the central government that are now being overhauled GDP growth targets are being reduced artificially low interest rates earned by savers are likely to rise in the near future and the currency which has been profoundly undervalued is slowly appreciating Collectively these policies will curb wasteful overinvestment and slowly replace it with increased domestic consumption and reduced exports
As for the substantial dodgy debt on the books of local and regional governments and shadow banks due to weakening housing prices and raw land values that act as collateral for many loans here the problem is serious That said Chinarsquos debt is about 25 of GDP giving the central government ample room to borrow should it be necessary Moreover the central government is beginning to force local and regional governments to sell some of the $7 trillion in assets they own in an effort to shore up their financial condition
Moreover with $4 trillion in foreign reserves and the ability to weaken the Chinese currency at will to boost exports China has tools other nations donrsquot have Lastly expect Beijing to re-stimulate sagging housing markets by relaxing home-purchase requirements and local governments to augment this policy by giving residency benefits to out-of-towners to further boost demand Combining the above with looser monetary policy makes me think that those making key policy decisions the brightest minds in the nation will see to it that China comes through this relatively unscathed
Beijing Balancing 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
WwwRochesterAreaBuilderscomJune 2014 | 23
NONE
MEMBERSHIPS PENDINGNONE
The firms listed below have applied for membership in the Rochester Area Builders Any member who objects to admission of any applicant shall notify the RAB Board of Directors in writing of the objection before
the next Board of Directors meeting
MEMBERSHIP TOTAL 453RETENTION RATE 929
As of 43014
WE WELCOME THE FOLLOWING NEW MEMBERS IN APRIL
Membership Information
Membership Renewals as of 43014
One Year
Altra Federal Credit Union 2013JE Dunn Construction 2013The Kitchen Design Studio 2013West Bank 2013Xcel Energy 2013
Two to Four Years
Elias Construction LLC 2011Lacina Siding amp Windows Inc 2011Solar Connection Inc 2011Chladek Construction LLC 2010MEP Associates 2010Rochester Asphalt Inc 2010Wildwood Sports Bar and Grill 2010
Five to Nine Years
Beckleyrsquos Office Products 2009Beetles Bar amp Grill Inc 2008Data-Smart Computers Inc 2008HDR Architecture 2008Legends Concrete Inc 2007RCON Homes Inc 2007Michael Jack LLC 2006WA Insurance 2006Anderson Construction 2005
Ten to 19 Years
Scott Berberich Construction LLC 2004First General Services of SE MN 2003Todd Eidem Construction Inc 2002Ames Construction Inc 2001Expert Insulation Inc 2001HiMEC at Home 2001Habitat for Humanity - Rochester Area 2000Home Improvement Professionals Inc 1999
25 Years amp More
Countryside Builders LLC 1989Radcliffe Homes amp Remodeling 1988Thomas Tool amp Supply 1987Kreofsky Building Supplies 1985Tile Superstore amp More 1985Barrier Free Access Inc 1984RampM Development Company 1970
NEW APPLICANTS
FAT WILLYrsquoS BAR amp GRILL
4325 Maine Ave SERochester MN 55904Phone 507- 206-4301
Contact Bill HendersonAssociate Member
RestaurantBarSponsored by
David Kane Kane amp Johnson Architects Inc
KAHLER HOSPITALITY GROUP
20 2nd Avenue SWRochester MN 55902Phone 507- 280-6200
Contact Marnie GlynnAssociate Member
HotelSponsored byNone Listed
MANUFACTURERrsquoS BANK amp TRUST
2020 2nd Street SWRochester MN 55902Phone 507- 226-8460
Contact Thomas HeepkeAssociate Member
BankSponsored by
Sue Hanson Rochester Title amp Escrow Company Inc
SAWYER CONSTRUCTION SERVICES INC9472 65th Street NE
Elgin MN 55932Phone 507-272-1740Contact Marv Sawyer
Associate MemberLawn CareTree Service
Sponsored byChristy Buchan Energy Products amp Design Inc
wwwRochesterAreaBuilderscom24 | June 2014
Put your membershipto work nowMoney-saving discounts that benefit yourbusiness your employees and your family
wwwnahborgMA
National Association of Home Builders
R
wwwRochesterAreaBuilderscom14 | June 2014
Erosion and Sediment Control at Residential Construction SitesSpring is here and so is the rain As you move into construction mode this year be sure your site adequately provides erosion and sediment control (ESC) ndash no matter how big or small the storm Planning and good practices are essential for keeping sediment on site and preventing enforcement actions Follow the steps below to be prepared for the next rain
bull Before breaking ground review the approved Grading Plan for your site to verify grades on your lot and on adjacent properties (if you have questions on the Grading Plan please contact us)
bull Review the approved grading plan for your site and the adjacent properties to be sure that drainage easements ditches slopes and conveyance areas have correct grades and positive drainage
bull Preserve existing vegetation and topsoil on-site preserving existing vegetation is especially important around the perimeter By preserving existing vegetation this may save you from installing additional perimeter sediment control measures and saving topsoil can save you and the homeowner money
bull Insure that perimeter and internal ESC BMPs are properly anchored and functioning Perimeter sediment control measures are required at all downslope locations on-site
bull Provide stabilized vehicle entrances and exits at your site Options to prevent track-out of sediment onto streets include rock entrances wood chips and mud mats Be certain that your subcontractors are aware of and use the designated access points
bull All area catch basins should have appropriate inlet protection installed in order to prevent soil and debris from entering the storm sewer and draining to our receiving waters Sediment must be regularly removed from inlet protection to prevent street flooding
bull Develop and utilize a concrete washout management plan and facility or return concrete
POOR ESC
WwwRochesterAreaBuilderscomJune 2014 | 15
The MPCA recently informed the City of Rochester that no comments were received on the Cityrsquos new storm water permit application during the public notice period which ended May 1st Therefore MPCA will extend permit coverage to the City under the August 2013 permit and the Cityrsquos effective date will be Thursday May 8th
Under the new 2013 permit the City must continue the permit activities already in place and meet the added requirements The new tasks that the City must address before May 7 2015 include
bull Completing a storm water management plan updatebull Preparing a new storm water ordinance that incorporates the new permit requirementsbull Updating all standard operating procedures and preparing new enforcement response proceduresbull Assessing the Cityrsquos status in meeting Total Maximum Daily Load Waste Load Allocationsbull Developing a pond effectiveness assessment planbull Enhancing the City facilities and operations inventorybull Creating an employee and business technical education program
Of particular interest to RAB members will be the new ordinance The City expects to have a draft ready for public review by October Any questions about the new permit can be directed to Barb Huberty at bhubertyrochestermngov
UPDATE New State Storm Water Permit
washout to the concrete vendor No liquid or solid concrete waste from washout operations can be in contact with the ground
bull Keep a clean construction site One of the biggest complaints the City receives about construction sites is the construction debris and litter Create and use a garbage corral or dumpster and empty them before they overflow Ask contractors to compact their debris so it doesnrsquot blow out of the container on windy days
bull Place topsoil and vegetate all exposed soil areas as soon as fine grading is complete The City of Rochester standards require a minimum of 4rdquo of topsoil on disturbed areas donrsquot substitute subsoil for topsoil
bull Learn more about useful storm water management practices and state construction storm water permit requirements at the MPCA website wwwpcastatemnuswaterstormwater
Rochester residents want good water quality and quality construction Improper ESC on construction sites has a direct negative impact on our waterways Be proactive and take the time to properly inspect and maintain your ESC best management practices to stabilize your construction site and prevent unintentional water pollution
For more information about this topic please contact Mike Kraszewski (328-2431) or Kevin Kuisle (328-2457) at the Rochester Public Works Department
GOOD ESC
wwwRochesterAreaBuilderscom16 | June 2014
WwwRochesterAreaBuilderscomJune 2014 | 17
Committee UpdatesNOMINATING COMMITTEECHAIRPERSON John Eckerman Boldt Construction
The Nominating Committee will be meeting soon to discuss nominations for the 2015 Board of Directors as well as chairpersons for our many committees and councils If you would like to recommend a member for a position or if you would like to recommend yourself please call John at the office 282-7698 We are always looking for new people to be involved in the management of our association
SHOWCASE COMMITTEECHAIRPERSON Brandon Vagt XRG Concepts
The Fall Showcase of Homes is scheduled for September 13th 14th and 20th 21st Have you started building a home to enter in the Showcase Itrsquos a wonderful opportunity to have your home seen by thousands of potential customers Information packets have been mailed to residential builders and the first of three deadlines is June 19th
Committee ChairpersonsAMBASSADORSGreg Hird First Alliance Credit UnionAWARDSTBABUILDING MAINTENANCETJ Schutz Advanced Building Center IncBUILDING SAFETY ADVISORYMickey Elias Elias Construction LLCCOMMUNITY RELATIONSTony Kunz Hillerrsquos Flooring AmericaDISPUTE RESOLUTIONJohn Kuntz Kuntz Electric IncEDUCATIONVacantEXECUTIVEKevin Worden Rochester Area Habitat for HumanityFASHION SHOWKaren Blissenbach Design Studio BFINANCECarla Kilpatrick Home Federal Savings BankGOLF OUTINGLindsey Rippentrop Olmsted National BankGOVERNMENT AFFAIRSJohn Eckerman The Boldt CompanyGREEN BUILDINGKelly OrsquoMarro XRG Concepts LLCHOME SHOW ndash 2013Jeff Kalmes Hillers Flooring AmericaMARKETINGRob Easthouse Electrical Solutions amp ServiceMEMBERSHIP amp RETENTIONDan Bochman Kruse LumberNOMINATINGKerk Johnson Schwickertrsquos Tecta America LLC PERSONNELKevin Worden Rochester Area Habitat for HumanityPROGRAMDan Plizga Weis Builders IncPUBLIC WORKS ADVISORYJeff Broberg McGhie amp Betts - a Division of WSB amp Associates IncSHOWCASE OF HOMESBrandon Vagt XRG Concepts LLCSPIKE CLUBJay Burke Heartwood Homes of Rochester IncSPORTING CLAYSJames Coyle Kane amp Johnson Architects Inc
CouncilsBER EXECUTIVE COMMITTEEJJ Webster Kraus-Anderson Construction CompanyCBC EXECUTIVE COMMITTEEChris Terry Knutson Construction ServicesDEVELOPMENT COUNCILJohn Sipple Rochester Area Appraisals LLCREMODELERS EXECUTIVE COMMITTEESam Peyton Kingrsquos Flooring LLCREMODELERS TOURKaren Blissenbach Design Studio B
wwwRochesterAreaBuilderscom18 | June 2014
May MeetingThank you to Kingrsquos Flooring for sponsor-
ing the May Meeting held at the RAB Office We had a nice turnout and
enjoyed the beautiful weather as we sat outside and networked and enjoyed the lunch that Kingrsquos Flooring provided We
hope to see you all again in June
construction fashion expose
WwwRochesterAreaBuilderscomJune 2014 | 19
Members2014 Commercial Builders Council107 Members as of 123113AB Systems IncAccord Electric IncAdvanced DisposalAlpha Video amp AudioAssociated BankAlvin E Benike IncThe Blue Book
of Building amp Construction
The Boldt CompanyBraun Intertec
CorporationBriese Iron Works IncBrock White CompanyCO Brown AgencyCambriaCarpet OneCentury Painting amp
Decorating LLCChosen Valley Testing
IncConstruction
Partnership IncCounselor Realty of
Rochester IncCounty Materials
CorporationCRW architecture +
design group incCustom AlarmCustom
Communications IncDunlap amp SeegerEastwood Bankeci llcElcor ConstructionEnergy Panel StructuresEnergy Products amp
Design IncEnventisExpert Insulation IncFerguson EnterprisesFriedrich Construction
IncGerhardsGoodin CompanyHaley Comfort Systems
(Authorized FireSide Dealer)
WL Hall CompanyHGA Architects and
EngineersHDR ArchitectureHeartman InsuranceHillerrsquos Flooring AmericaHiMec at HomeHome Federal Savings
BankHunt Electric
CorporationKampM Glass CompanyKampS Heating AC
Plumbing amp ElectricalKane amp Johnson
Architects IncKey Builders IncKnutson Construction
ServicesKomitt Concrete IncKraus-Anderson
Construction CompanyKreofsky Building
SuppliesKruse LumberKuntz Electric IncKwik Trip IncLeitzen Concrete
Products IncEd Lunn Construction
IncMarvin Windows amp
DoorsMavo Systems IncMcGhie amp Betts Inc
McGough ConstructionMEC Construction IncMEP AssociatesMerchants BankMerit Contracting IncMinnesota Energy
Resources CorporationMinnwest BankNickelson Painting IncOlmsted National BankOnSitePalmer Soderberg IncPella Windows amp DoorsPeoplersquos Energy
CooperativePompeii Painting IncPrehn Building Sales
IncPremier Bank RochesterProBuild Company LLCReliable Contractors
Inc Rochester Area
Appraisals LLCRochester Area
Economic Development Inc
Rochester Public Utilities
Rochester Ready Mix Concrete Co
Rochester Sign Service Inc
Rochester Title amp Escrow Company Inc
Ryan Electric of Rochester Inc
Schoeppner IncSchwab LLCSchwickertrsquos Tecta
America LLCStantecStructural Design
Group IncSuperior MechanicalTamarack Materials of
Rochester IncThink Mutual BankTonna Mechanical IncTSP Architects amp
EngineersTW Construction
Solutions LLCUnited RentalsThe Urban StudioUS BankValor Mechanical IncVeit CompaniesVertical Limit
ConstructionViking Automatic
Sprinkler CompanyViking Electric SupplyWeis Builders IncWells Fargo Bank
Minnesota NAWendland UtzWidseth Smith NoltingYaggy Colby Associates
BUILDERS COUNCILCOMMERCIAL
a d i v i s i o n o f R o c h e s t e r A r e a B u i l d e r s I n c
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
June MeetingCome to the June meeting and hear an in depth discussion of the Comprehensive Housing Needs Assessment for Olmsted County conducted by Maxfield Research Inc The study projects housing demand for submarkets in the Olmsted County Market Area from 2013 through 2030 It also provides recommendations on the amount and types of housing that could be built to satisfy demand from current and future residents over the next decade and beyond
June MEETINGDATE Wednesday June 4th 2014TIME Registration amp Networking at 700 AM Program at 730 AMPLACE Ramada Hotel amp Conference CenterPROGRAM Olmsted County Comprehensive Housing Needs AssessmentSPEAKERS Matt Mullins Vice President Maxfield Research Inc
wwwRochesterAreaBuilderscom20 | June 2014
2014 VALUATION 2013 VALUATION
New Residential Single Family Dwelling 25 5531411 39 9046592
Townhome Dwelling 0 0 0 0
Two-Family Houses 0 0 0 0
Multi-Family Bldgs 0 0 0 0
Manufactured Home 0 0 0 0 Existing Residential Deck Addition 19 107504 11 39350
Room Addition 3 278763 4 569729
Porch Additions 0 0 1 15925
Other Additions 0 0 0 0
Basement Finish 29 342255 27 294745
Alterations 50 516115 36 341383
Multi-Family Addition 0 0 0 0
Multi-Family Alterations 2 113000 5 40095 New Commercial Assembly (Church) 0 0 0 0
Assembly (General) 0 0 0 0
Assembly (RestaurantBar) 1 1561000 1 198000
Business 0 0 1 300000
Education 0 0 0 0
FactoryIndustrial 0 0 0 0
Institution 0 0 0 0
Mercantile 0 0 0 0
Miscelaneous 0 0 0 0
Utility (General) 1 130000 0 0
Residential (CareAssisted Living) 0 0 0 0
Storage (General) 1 45000 1 56000
Storage (Warehouse) 0 0 0 0 Existing CommercialAddition 8 5812413 1 3669000
Alterations 34 5984762 32 5633723
Structural Shell 0 0 0 0
ldquoWhite Boxrdquo 1 15000 0 0
Interior Demolition Only 3 48500 1 39775
Other Phased Permits 0 0 0 0
Other ConstructionBusiness Signs 15 106565 23 175223
Advertising Sign 1 18000 0 0
Footings amp Foundations 2 220000 0 0
Demolition 3 0
Rochester Building Permits April 2014
January 33 39 27 20 3 13 3 6 19 11
February 31 31 19 13 1 8 8 20 15 14
March 59 37 30 29 16 27 24 32 29 28
April 58 58 44 27 29 25 19 29 39 25
TOTAL 181 165 122 89 49 73 54 87 102 78
May 77 69 50 30 33 20 14 22 27
June 81 59 43 36 36 12 26 32 33
July 58 36 60 23 21 23 8 39 39
August 69 36 43 28 26 15 18 38 21
September 65 31 33 28 33 10 19 22 23
October 71 49 34 19 31 14 16 23 34
November 40 38 23 26 30 21 20 22 26
December 60 23 11 16 15 12 16 14 22
TOTAL 702 506 417 302 274 200 191 299 326 78
Single Family Homes
Year To Date Statistics 2014 2013 NO VALUATION NO VALUATION
Building Permits Issued to Date 617 99659586 576 55353067
Single Family Dwelling 78 19118519 102 23271991
Multi-Family Buildings Total Units 39 1 3702052 0 0
Trade Permits Issued to Date 2163 22421315 2077 19001370
Electrical 719 10304793 649 10630028
Electrical (Temp Service) 65 14350 79 23350
Mechanical 570 4962388 543 4383007
Gas Piping 135 348756 141 120700
Fireplace 113 303426 117 283801
Hydronic System 57 1939043 40 736592
Plumbing 504 4548559 508 2823892
Total Permits YTD 2780 122180901 2653 74354437
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
WwwRochesterAreaBuilderscomJune 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
MARCH 2014
New Residential NUMBER VALUATION
Single Family Detached 7 1027450
Existing Residential
Basement Finish 5 81500
Alterations 1 $500
ByronBuilding Permits
MARCH 2014
New Residential NUMBER VALUATION
Single Family 3 455000
Existing Residential NUMBER VALUATION
Heating 1 3600
Basement Finish 1 20000
Pine IslandBuilding Permits
wwwRochesterAreaBuilderscom22 | June 2014
Much has recently been made of the notion that China has enough serious structural problems with its economy that chances are good it will experience a ldquohard landingrdquo defined as economic growth quickly slowing from 75 today to the low single digits This slowdown would weaken commodity prices hurting developing nations and reduce Chinese imports of high-quality finished goods from developed nations also hurting the US Europe and Japan While the Chinese economy has problems many are chronic and I believe the government has sufficient resources to manage the acute ones and avoid a hard landing
The key problems the Chinese economy suffers from are threefold a profound overreliance on large trade surpluses massive government overinvestment in infrastructure and a weak financial system that has resulted in both bad loans made by irresponsible local and regional governments and a highly leveraged and lightly regulated shadow banking system (sound familiar) that may well implode
The first problem is fading away After running trade surpluses in the $45 billionyear range through 2003 they skyrocketed to $400 billionyear by the end of 2008 However that highpoint coincided with the Great Recession which resulted in a huge contraction in trade and simultaneously an effort by many nations to boost exports to help their domestic economies As a result Chinese trade surpluses have averaged about $300 billionyear (about two-thirds of that with the US) since early 2009 and show no discernable upward trend Moreover as the Chinese economy is about twice as big today as it was in 2005 the economic impact of the now smaller trade surpluses on the overall economy is much smaller
The second problem of roads to nowhere massive over building of plant leading to ruinous excess capacity along with the construction of uninhabited ghost towns is being rectified And rectified they can be because these destructive outcomes are the direct result of policies pursued by the central government that are now being overhauled GDP growth targets are being reduced artificially low interest rates earned by savers are likely to rise in the near future and the currency which has been profoundly undervalued is slowly appreciating Collectively these policies will curb wasteful overinvestment and slowly replace it with increased domestic consumption and reduced exports
As for the substantial dodgy debt on the books of local and regional governments and shadow banks due to weakening housing prices and raw land values that act as collateral for many loans here the problem is serious That said Chinarsquos debt is about 25 of GDP giving the central government ample room to borrow should it be necessary Moreover the central government is beginning to force local and regional governments to sell some of the $7 trillion in assets they own in an effort to shore up their financial condition
Moreover with $4 trillion in foreign reserves and the ability to weaken the Chinese currency at will to boost exports China has tools other nations donrsquot have Lastly expect Beijing to re-stimulate sagging housing markets by relaxing home-purchase requirements and local governments to augment this policy by giving residency benefits to out-of-towners to further boost demand Combining the above with looser monetary policy makes me think that those making key policy decisions the brightest minds in the nation will see to it that China comes through this relatively unscathed
Beijing Balancing 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
WwwRochesterAreaBuilderscomJune 2014 | 23
NONE
MEMBERSHIPS PENDINGNONE
The firms listed below have applied for membership in the Rochester Area Builders Any member who objects to admission of any applicant shall notify the RAB Board of Directors in writing of the objection before
the next Board of Directors meeting
MEMBERSHIP TOTAL 453RETENTION RATE 929
As of 43014
WE WELCOME THE FOLLOWING NEW MEMBERS IN APRIL
Membership Information
Membership Renewals as of 43014
One Year
Altra Federal Credit Union 2013JE Dunn Construction 2013The Kitchen Design Studio 2013West Bank 2013Xcel Energy 2013
Two to Four Years
Elias Construction LLC 2011Lacina Siding amp Windows Inc 2011Solar Connection Inc 2011Chladek Construction LLC 2010MEP Associates 2010Rochester Asphalt Inc 2010Wildwood Sports Bar and Grill 2010
Five to Nine Years
Beckleyrsquos Office Products 2009Beetles Bar amp Grill Inc 2008Data-Smart Computers Inc 2008HDR Architecture 2008Legends Concrete Inc 2007RCON Homes Inc 2007Michael Jack LLC 2006WA Insurance 2006Anderson Construction 2005
Ten to 19 Years
Scott Berberich Construction LLC 2004First General Services of SE MN 2003Todd Eidem Construction Inc 2002Ames Construction Inc 2001Expert Insulation Inc 2001HiMEC at Home 2001Habitat for Humanity - Rochester Area 2000Home Improvement Professionals Inc 1999
25 Years amp More
Countryside Builders LLC 1989Radcliffe Homes amp Remodeling 1988Thomas Tool amp Supply 1987Kreofsky Building Supplies 1985Tile Superstore amp More 1985Barrier Free Access Inc 1984RampM Development Company 1970
NEW APPLICANTS
FAT WILLYrsquoS BAR amp GRILL
4325 Maine Ave SERochester MN 55904Phone 507- 206-4301
Contact Bill HendersonAssociate Member
RestaurantBarSponsored by
David Kane Kane amp Johnson Architects Inc
KAHLER HOSPITALITY GROUP
20 2nd Avenue SWRochester MN 55902Phone 507- 280-6200
Contact Marnie GlynnAssociate Member
HotelSponsored byNone Listed
MANUFACTURERrsquoS BANK amp TRUST
2020 2nd Street SWRochester MN 55902Phone 507- 226-8460
Contact Thomas HeepkeAssociate Member
BankSponsored by
Sue Hanson Rochester Title amp Escrow Company Inc
SAWYER CONSTRUCTION SERVICES INC9472 65th Street NE
Elgin MN 55932Phone 507-272-1740Contact Marv Sawyer
Associate MemberLawn CareTree Service
Sponsored byChristy Buchan Energy Products amp Design Inc
wwwRochesterAreaBuilderscom24 | June 2014
Put your membershipto work nowMoney-saving discounts that benefit yourbusiness your employees and your family
wwwnahborgMA
National Association of Home Builders
R
WwwRochesterAreaBuilderscomJune 2014 | 15
The MPCA recently informed the City of Rochester that no comments were received on the Cityrsquos new storm water permit application during the public notice period which ended May 1st Therefore MPCA will extend permit coverage to the City under the August 2013 permit and the Cityrsquos effective date will be Thursday May 8th
Under the new 2013 permit the City must continue the permit activities already in place and meet the added requirements The new tasks that the City must address before May 7 2015 include
bull Completing a storm water management plan updatebull Preparing a new storm water ordinance that incorporates the new permit requirementsbull Updating all standard operating procedures and preparing new enforcement response proceduresbull Assessing the Cityrsquos status in meeting Total Maximum Daily Load Waste Load Allocationsbull Developing a pond effectiveness assessment planbull Enhancing the City facilities and operations inventorybull Creating an employee and business technical education program
Of particular interest to RAB members will be the new ordinance The City expects to have a draft ready for public review by October Any questions about the new permit can be directed to Barb Huberty at bhubertyrochestermngov
UPDATE New State Storm Water Permit
washout to the concrete vendor No liquid or solid concrete waste from washout operations can be in contact with the ground
bull Keep a clean construction site One of the biggest complaints the City receives about construction sites is the construction debris and litter Create and use a garbage corral or dumpster and empty them before they overflow Ask contractors to compact their debris so it doesnrsquot blow out of the container on windy days
bull Place topsoil and vegetate all exposed soil areas as soon as fine grading is complete The City of Rochester standards require a minimum of 4rdquo of topsoil on disturbed areas donrsquot substitute subsoil for topsoil
bull Learn more about useful storm water management practices and state construction storm water permit requirements at the MPCA website wwwpcastatemnuswaterstormwater
Rochester residents want good water quality and quality construction Improper ESC on construction sites has a direct negative impact on our waterways Be proactive and take the time to properly inspect and maintain your ESC best management practices to stabilize your construction site and prevent unintentional water pollution
For more information about this topic please contact Mike Kraszewski (328-2431) or Kevin Kuisle (328-2457) at the Rochester Public Works Department
GOOD ESC
wwwRochesterAreaBuilderscom16 | June 2014
WwwRochesterAreaBuilderscomJune 2014 | 17
Committee UpdatesNOMINATING COMMITTEECHAIRPERSON John Eckerman Boldt Construction
The Nominating Committee will be meeting soon to discuss nominations for the 2015 Board of Directors as well as chairpersons for our many committees and councils If you would like to recommend a member for a position or if you would like to recommend yourself please call John at the office 282-7698 We are always looking for new people to be involved in the management of our association
SHOWCASE COMMITTEECHAIRPERSON Brandon Vagt XRG Concepts
The Fall Showcase of Homes is scheduled for September 13th 14th and 20th 21st Have you started building a home to enter in the Showcase Itrsquos a wonderful opportunity to have your home seen by thousands of potential customers Information packets have been mailed to residential builders and the first of three deadlines is June 19th
Committee ChairpersonsAMBASSADORSGreg Hird First Alliance Credit UnionAWARDSTBABUILDING MAINTENANCETJ Schutz Advanced Building Center IncBUILDING SAFETY ADVISORYMickey Elias Elias Construction LLCCOMMUNITY RELATIONSTony Kunz Hillerrsquos Flooring AmericaDISPUTE RESOLUTIONJohn Kuntz Kuntz Electric IncEDUCATIONVacantEXECUTIVEKevin Worden Rochester Area Habitat for HumanityFASHION SHOWKaren Blissenbach Design Studio BFINANCECarla Kilpatrick Home Federal Savings BankGOLF OUTINGLindsey Rippentrop Olmsted National BankGOVERNMENT AFFAIRSJohn Eckerman The Boldt CompanyGREEN BUILDINGKelly OrsquoMarro XRG Concepts LLCHOME SHOW ndash 2013Jeff Kalmes Hillers Flooring AmericaMARKETINGRob Easthouse Electrical Solutions amp ServiceMEMBERSHIP amp RETENTIONDan Bochman Kruse LumberNOMINATINGKerk Johnson Schwickertrsquos Tecta America LLC PERSONNELKevin Worden Rochester Area Habitat for HumanityPROGRAMDan Plizga Weis Builders IncPUBLIC WORKS ADVISORYJeff Broberg McGhie amp Betts - a Division of WSB amp Associates IncSHOWCASE OF HOMESBrandon Vagt XRG Concepts LLCSPIKE CLUBJay Burke Heartwood Homes of Rochester IncSPORTING CLAYSJames Coyle Kane amp Johnson Architects Inc
CouncilsBER EXECUTIVE COMMITTEEJJ Webster Kraus-Anderson Construction CompanyCBC EXECUTIVE COMMITTEEChris Terry Knutson Construction ServicesDEVELOPMENT COUNCILJohn Sipple Rochester Area Appraisals LLCREMODELERS EXECUTIVE COMMITTEESam Peyton Kingrsquos Flooring LLCREMODELERS TOURKaren Blissenbach Design Studio B
wwwRochesterAreaBuilderscom18 | June 2014
May MeetingThank you to Kingrsquos Flooring for sponsor-
ing the May Meeting held at the RAB Office We had a nice turnout and
enjoyed the beautiful weather as we sat outside and networked and enjoyed the lunch that Kingrsquos Flooring provided We
hope to see you all again in June
construction fashion expose
WwwRochesterAreaBuilderscomJune 2014 | 19
Members2014 Commercial Builders Council107 Members as of 123113AB Systems IncAccord Electric IncAdvanced DisposalAlpha Video amp AudioAssociated BankAlvin E Benike IncThe Blue Book
of Building amp Construction
The Boldt CompanyBraun Intertec
CorporationBriese Iron Works IncBrock White CompanyCO Brown AgencyCambriaCarpet OneCentury Painting amp
Decorating LLCChosen Valley Testing
IncConstruction
Partnership IncCounselor Realty of
Rochester IncCounty Materials
CorporationCRW architecture +
design group incCustom AlarmCustom
Communications IncDunlap amp SeegerEastwood Bankeci llcElcor ConstructionEnergy Panel StructuresEnergy Products amp
Design IncEnventisExpert Insulation IncFerguson EnterprisesFriedrich Construction
IncGerhardsGoodin CompanyHaley Comfort Systems
(Authorized FireSide Dealer)
WL Hall CompanyHGA Architects and
EngineersHDR ArchitectureHeartman InsuranceHillerrsquos Flooring AmericaHiMec at HomeHome Federal Savings
BankHunt Electric
CorporationKampM Glass CompanyKampS Heating AC
Plumbing amp ElectricalKane amp Johnson
Architects IncKey Builders IncKnutson Construction
ServicesKomitt Concrete IncKraus-Anderson
Construction CompanyKreofsky Building
SuppliesKruse LumberKuntz Electric IncKwik Trip IncLeitzen Concrete
Products IncEd Lunn Construction
IncMarvin Windows amp
DoorsMavo Systems IncMcGhie amp Betts Inc
McGough ConstructionMEC Construction IncMEP AssociatesMerchants BankMerit Contracting IncMinnesota Energy
Resources CorporationMinnwest BankNickelson Painting IncOlmsted National BankOnSitePalmer Soderberg IncPella Windows amp DoorsPeoplersquos Energy
CooperativePompeii Painting IncPrehn Building Sales
IncPremier Bank RochesterProBuild Company LLCReliable Contractors
Inc Rochester Area
Appraisals LLCRochester Area
Economic Development Inc
Rochester Public Utilities
Rochester Ready Mix Concrete Co
Rochester Sign Service Inc
Rochester Title amp Escrow Company Inc
Ryan Electric of Rochester Inc
Schoeppner IncSchwab LLCSchwickertrsquos Tecta
America LLCStantecStructural Design
Group IncSuperior MechanicalTamarack Materials of
Rochester IncThink Mutual BankTonna Mechanical IncTSP Architects amp
EngineersTW Construction
Solutions LLCUnited RentalsThe Urban StudioUS BankValor Mechanical IncVeit CompaniesVertical Limit
ConstructionViking Automatic
Sprinkler CompanyViking Electric SupplyWeis Builders IncWells Fargo Bank
Minnesota NAWendland UtzWidseth Smith NoltingYaggy Colby Associates
BUILDERS COUNCILCOMMERCIAL
a d i v i s i o n o f R o c h e s t e r A r e a B u i l d e r s I n c
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
June MeetingCome to the June meeting and hear an in depth discussion of the Comprehensive Housing Needs Assessment for Olmsted County conducted by Maxfield Research Inc The study projects housing demand for submarkets in the Olmsted County Market Area from 2013 through 2030 It also provides recommendations on the amount and types of housing that could be built to satisfy demand from current and future residents over the next decade and beyond
June MEETINGDATE Wednesday June 4th 2014TIME Registration amp Networking at 700 AM Program at 730 AMPLACE Ramada Hotel amp Conference CenterPROGRAM Olmsted County Comprehensive Housing Needs AssessmentSPEAKERS Matt Mullins Vice President Maxfield Research Inc
wwwRochesterAreaBuilderscom20 | June 2014
2014 VALUATION 2013 VALUATION
New Residential Single Family Dwelling 25 5531411 39 9046592
Townhome Dwelling 0 0 0 0
Two-Family Houses 0 0 0 0
Multi-Family Bldgs 0 0 0 0
Manufactured Home 0 0 0 0 Existing Residential Deck Addition 19 107504 11 39350
Room Addition 3 278763 4 569729
Porch Additions 0 0 1 15925
Other Additions 0 0 0 0
Basement Finish 29 342255 27 294745
Alterations 50 516115 36 341383
Multi-Family Addition 0 0 0 0
Multi-Family Alterations 2 113000 5 40095 New Commercial Assembly (Church) 0 0 0 0
Assembly (General) 0 0 0 0
Assembly (RestaurantBar) 1 1561000 1 198000
Business 0 0 1 300000
Education 0 0 0 0
FactoryIndustrial 0 0 0 0
Institution 0 0 0 0
Mercantile 0 0 0 0
Miscelaneous 0 0 0 0
Utility (General) 1 130000 0 0
Residential (CareAssisted Living) 0 0 0 0
Storage (General) 1 45000 1 56000
Storage (Warehouse) 0 0 0 0 Existing CommercialAddition 8 5812413 1 3669000
Alterations 34 5984762 32 5633723
Structural Shell 0 0 0 0
ldquoWhite Boxrdquo 1 15000 0 0
Interior Demolition Only 3 48500 1 39775
Other Phased Permits 0 0 0 0
Other ConstructionBusiness Signs 15 106565 23 175223
Advertising Sign 1 18000 0 0
Footings amp Foundations 2 220000 0 0
Demolition 3 0
Rochester Building Permits April 2014
January 33 39 27 20 3 13 3 6 19 11
February 31 31 19 13 1 8 8 20 15 14
March 59 37 30 29 16 27 24 32 29 28
April 58 58 44 27 29 25 19 29 39 25
TOTAL 181 165 122 89 49 73 54 87 102 78
May 77 69 50 30 33 20 14 22 27
June 81 59 43 36 36 12 26 32 33
July 58 36 60 23 21 23 8 39 39
August 69 36 43 28 26 15 18 38 21
September 65 31 33 28 33 10 19 22 23
October 71 49 34 19 31 14 16 23 34
November 40 38 23 26 30 21 20 22 26
December 60 23 11 16 15 12 16 14 22
TOTAL 702 506 417 302 274 200 191 299 326 78
Single Family Homes
Year To Date Statistics 2014 2013 NO VALUATION NO VALUATION
Building Permits Issued to Date 617 99659586 576 55353067
Single Family Dwelling 78 19118519 102 23271991
Multi-Family Buildings Total Units 39 1 3702052 0 0
Trade Permits Issued to Date 2163 22421315 2077 19001370
Electrical 719 10304793 649 10630028
Electrical (Temp Service) 65 14350 79 23350
Mechanical 570 4962388 543 4383007
Gas Piping 135 348756 141 120700
Fireplace 113 303426 117 283801
Hydronic System 57 1939043 40 736592
Plumbing 504 4548559 508 2823892
Total Permits YTD 2780 122180901 2653 74354437
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
WwwRochesterAreaBuilderscomJune 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
MARCH 2014
New Residential NUMBER VALUATION
Single Family Detached 7 1027450
Existing Residential
Basement Finish 5 81500
Alterations 1 $500
ByronBuilding Permits
MARCH 2014
New Residential NUMBER VALUATION
Single Family 3 455000
Existing Residential NUMBER VALUATION
Heating 1 3600
Basement Finish 1 20000
Pine IslandBuilding Permits
wwwRochesterAreaBuilderscom22 | June 2014
Much has recently been made of the notion that China has enough serious structural problems with its economy that chances are good it will experience a ldquohard landingrdquo defined as economic growth quickly slowing from 75 today to the low single digits This slowdown would weaken commodity prices hurting developing nations and reduce Chinese imports of high-quality finished goods from developed nations also hurting the US Europe and Japan While the Chinese economy has problems many are chronic and I believe the government has sufficient resources to manage the acute ones and avoid a hard landing
The key problems the Chinese economy suffers from are threefold a profound overreliance on large trade surpluses massive government overinvestment in infrastructure and a weak financial system that has resulted in both bad loans made by irresponsible local and regional governments and a highly leveraged and lightly regulated shadow banking system (sound familiar) that may well implode
The first problem is fading away After running trade surpluses in the $45 billionyear range through 2003 they skyrocketed to $400 billionyear by the end of 2008 However that highpoint coincided with the Great Recession which resulted in a huge contraction in trade and simultaneously an effort by many nations to boost exports to help their domestic economies As a result Chinese trade surpluses have averaged about $300 billionyear (about two-thirds of that with the US) since early 2009 and show no discernable upward trend Moreover as the Chinese economy is about twice as big today as it was in 2005 the economic impact of the now smaller trade surpluses on the overall economy is much smaller
The second problem of roads to nowhere massive over building of plant leading to ruinous excess capacity along with the construction of uninhabited ghost towns is being rectified And rectified they can be because these destructive outcomes are the direct result of policies pursued by the central government that are now being overhauled GDP growth targets are being reduced artificially low interest rates earned by savers are likely to rise in the near future and the currency which has been profoundly undervalued is slowly appreciating Collectively these policies will curb wasteful overinvestment and slowly replace it with increased domestic consumption and reduced exports
As for the substantial dodgy debt on the books of local and regional governments and shadow banks due to weakening housing prices and raw land values that act as collateral for many loans here the problem is serious That said Chinarsquos debt is about 25 of GDP giving the central government ample room to borrow should it be necessary Moreover the central government is beginning to force local and regional governments to sell some of the $7 trillion in assets they own in an effort to shore up their financial condition
Moreover with $4 trillion in foreign reserves and the ability to weaken the Chinese currency at will to boost exports China has tools other nations donrsquot have Lastly expect Beijing to re-stimulate sagging housing markets by relaxing home-purchase requirements and local governments to augment this policy by giving residency benefits to out-of-towners to further boost demand Combining the above with looser monetary policy makes me think that those making key policy decisions the brightest minds in the nation will see to it that China comes through this relatively unscathed
Beijing Balancing 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
WwwRochesterAreaBuilderscomJune 2014 | 23
NONE
MEMBERSHIPS PENDINGNONE
The firms listed below have applied for membership in the Rochester Area Builders Any member who objects to admission of any applicant shall notify the RAB Board of Directors in writing of the objection before
the next Board of Directors meeting
MEMBERSHIP TOTAL 453RETENTION RATE 929
As of 43014
WE WELCOME THE FOLLOWING NEW MEMBERS IN APRIL
Membership Information
Membership Renewals as of 43014
One Year
Altra Federal Credit Union 2013JE Dunn Construction 2013The Kitchen Design Studio 2013West Bank 2013Xcel Energy 2013
Two to Four Years
Elias Construction LLC 2011Lacina Siding amp Windows Inc 2011Solar Connection Inc 2011Chladek Construction LLC 2010MEP Associates 2010Rochester Asphalt Inc 2010Wildwood Sports Bar and Grill 2010
Five to Nine Years
Beckleyrsquos Office Products 2009Beetles Bar amp Grill Inc 2008Data-Smart Computers Inc 2008HDR Architecture 2008Legends Concrete Inc 2007RCON Homes Inc 2007Michael Jack LLC 2006WA Insurance 2006Anderson Construction 2005
Ten to 19 Years
Scott Berberich Construction LLC 2004First General Services of SE MN 2003Todd Eidem Construction Inc 2002Ames Construction Inc 2001Expert Insulation Inc 2001HiMEC at Home 2001Habitat for Humanity - Rochester Area 2000Home Improvement Professionals Inc 1999
25 Years amp More
Countryside Builders LLC 1989Radcliffe Homes amp Remodeling 1988Thomas Tool amp Supply 1987Kreofsky Building Supplies 1985Tile Superstore amp More 1985Barrier Free Access Inc 1984RampM Development Company 1970
NEW APPLICANTS
FAT WILLYrsquoS BAR amp GRILL
4325 Maine Ave SERochester MN 55904Phone 507- 206-4301
Contact Bill HendersonAssociate Member
RestaurantBarSponsored by
David Kane Kane amp Johnson Architects Inc
KAHLER HOSPITALITY GROUP
20 2nd Avenue SWRochester MN 55902Phone 507- 280-6200
Contact Marnie GlynnAssociate Member
HotelSponsored byNone Listed
MANUFACTURERrsquoS BANK amp TRUST
2020 2nd Street SWRochester MN 55902Phone 507- 226-8460
Contact Thomas HeepkeAssociate Member
BankSponsored by
Sue Hanson Rochester Title amp Escrow Company Inc
SAWYER CONSTRUCTION SERVICES INC9472 65th Street NE
Elgin MN 55932Phone 507-272-1740Contact Marv Sawyer
Associate MemberLawn CareTree Service
Sponsored byChristy Buchan Energy Products amp Design Inc
wwwRochesterAreaBuilderscom24 | June 2014
Put your membershipto work nowMoney-saving discounts that benefit yourbusiness your employees and your family
wwwnahborgMA
National Association of Home Builders
R
wwwRochesterAreaBuilderscom16 | June 2014
WwwRochesterAreaBuilderscomJune 2014 | 17
Committee UpdatesNOMINATING COMMITTEECHAIRPERSON John Eckerman Boldt Construction
The Nominating Committee will be meeting soon to discuss nominations for the 2015 Board of Directors as well as chairpersons for our many committees and councils If you would like to recommend a member for a position or if you would like to recommend yourself please call John at the office 282-7698 We are always looking for new people to be involved in the management of our association
SHOWCASE COMMITTEECHAIRPERSON Brandon Vagt XRG Concepts
The Fall Showcase of Homes is scheduled for September 13th 14th and 20th 21st Have you started building a home to enter in the Showcase Itrsquos a wonderful opportunity to have your home seen by thousands of potential customers Information packets have been mailed to residential builders and the first of three deadlines is June 19th
Committee ChairpersonsAMBASSADORSGreg Hird First Alliance Credit UnionAWARDSTBABUILDING MAINTENANCETJ Schutz Advanced Building Center IncBUILDING SAFETY ADVISORYMickey Elias Elias Construction LLCCOMMUNITY RELATIONSTony Kunz Hillerrsquos Flooring AmericaDISPUTE RESOLUTIONJohn Kuntz Kuntz Electric IncEDUCATIONVacantEXECUTIVEKevin Worden Rochester Area Habitat for HumanityFASHION SHOWKaren Blissenbach Design Studio BFINANCECarla Kilpatrick Home Federal Savings BankGOLF OUTINGLindsey Rippentrop Olmsted National BankGOVERNMENT AFFAIRSJohn Eckerman The Boldt CompanyGREEN BUILDINGKelly OrsquoMarro XRG Concepts LLCHOME SHOW ndash 2013Jeff Kalmes Hillers Flooring AmericaMARKETINGRob Easthouse Electrical Solutions amp ServiceMEMBERSHIP amp RETENTIONDan Bochman Kruse LumberNOMINATINGKerk Johnson Schwickertrsquos Tecta America LLC PERSONNELKevin Worden Rochester Area Habitat for HumanityPROGRAMDan Plizga Weis Builders IncPUBLIC WORKS ADVISORYJeff Broberg McGhie amp Betts - a Division of WSB amp Associates IncSHOWCASE OF HOMESBrandon Vagt XRG Concepts LLCSPIKE CLUBJay Burke Heartwood Homes of Rochester IncSPORTING CLAYSJames Coyle Kane amp Johnson Architects Inc
CouncilsBER EXECUTIVE COMMITTEEJJ Webster Kraus-Anderson Construction CompanyCBC EXECUTIVE COMMITTEEChris Terry Knutson Construction ServicesDEVELOPMENT COUNCILJohn Sipple Rochester Area Appraisals LLCREMODELERS EXECUTIVE COMMITTEESam Peyton Kingrsquos Flooring LLCREMODELERS TOURKaren Blissenbach Design Studio B
wwwRochesterAreaBuilderscom18 | June 2014
May MeetingThank you to Kingrsquos Flooring for sponsor-
ing the May Meeting held at the RAB Office We had a nice turnout and
enjoyed the beautiful weather as we sat outside and networked and enjoyed the lunch that Kingrsquos Flooring provided We
hope to see you all again in June
construction fashion expose
WwwRochesterAreaBuilderscomJune 2014 | 19
Members2014 Commercial Builders Council107 Members as of 123113AB Systems IncAccord Electric IncAdvanced DisposalAlpha Video amp AudioAssociated BankAlvin E Benike IncThe Blue Book
of Building amp Construction
The Boldt CompanyBraun Intertec
CorporationBriese Iron Works IncBrock White CompanyCO Brown AgencyCambriaCarpet OneCentury Painting amp
Decorating LLCChosen Valley Testing
IncConstruction
Partnership IncCounselor Realty of
Rochester IncCounty Materials
CorporationCRW architecture +
design group incCustom AlarmCustom
Communications IncDunlap amp SeegerEastwood Bankeci llcElcor ConstructionEnergy Panel StructuresEnergy Products amp
Design IncEnventisExpert Insulation IncFerguson EnterprisesFriedrich Construction
IncGerhardsGoodin CompanyHaley Comfort Systems
(Authorized FireSide Dealer)
WL Hall CompanyHGA Architects and
EngineersHDR ArchitectureHeartman InsuranceHillerrsquos Flooring AmericaHiMec at HomeHome Federal Savings
BankHunt Electric
CorporationKampM Glass CompanyKampS Heating AC
Plumbing amp ElectricalKane amp Johnson
Architects IncKey Builders IncKnutson Construction
ServicesKomitt Concrete IncKraus-Anderson
Construction CompanyKreofsky Building
SuppliesKruse LumberKuntz Electric IncKwik Trip IncLeitzen Concrete
Products IncEd Lunn Construction
IncMarvin Windows amp
DoorsMavo Systems IncMcGhie amp Betts Inc
McGough ConstructionMEC Construction IncMEP AssociatesMerchants BankMerit Contracting IncMinnesota Energy
Resources CorporationMinnwest BankNickelson Painting IncOlmsted National BankOnSitePalmer Soderberg IncPella Windows amp DoorsPeoplersquos Energy
CooperativePompeii Painting IncPrehn Building Sales
IncPremier Bank RochesterProBuild Company LLCReliable Contractors
Inc Rochester Area
Appraisals LLCRochester Area
Economic Development Inc
Rochester Public Utilities
Rochester Ready Mix Concrete Co
Rochester Sign Service Inc
Rochester Title amp Escrow Company Inc
Ryan Electric of Rochester Inc
Schoeppner IncSchwab LLCSchwickertrsquos Tecta
America LLCStantecStructural Design
Group IncSuperior MechanicalTamarack Materials of
Rochester IncThink Mutual BankTonna Mechanical IncTSP Architects amp
EngineersTW Construction
Solutions LLCUnited RentalsThe Urban StudioUS BankValor Mechanical IncVeit CompaniesVertical Limit
ConstructionViking Automatic
Sprinkler CompanyViking Electric SupplyWeis Builders IncWells Fargo Bank
Minnesota NAWendland UtzWidseth Smith NoltingYaggy Colby Associates
BUILDERS COUNCILCOMMERCIAL
a d i v i s i o n o f R o c h e s t e r A r e a B u i l d e r s I n c
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
June MeetingCome to the June meeting and hear an in depth discussion of the Comprehensive Housing Needs Assessment for Olmsted County conducted by Maxfield Research Inc The study projects housing demand for submarkets in the Olmsted County Market Area from 2013 through 2030 It also provides recommendations on the amount and types of housing that could be built to satisfy demand from current and future residents over the next decade and beyond
June MEETINGDATE Wednesday June 4th 2014TIME Registration amp Networking at 700 AM Program at 730 AMPLACE Ramada Hotel amp Conference CenterPROGRAM Olmsted County Comprehensive Housing Needs AssessmentSPEAKERS Matt Mullins Vice President Maxfield Research Inc
wwwRochesterAreaBuilderscom20 | June 2014
2014 VALUATION 2013 VALUATION
New Residential Single Family Dwelling 25 5531411 39 9046592
Townhome Dwelling 0 0 0 0
Two-Family Houses 0 0 0 0
Multi-Family Bldgs 0 0 0 0
Manufactured Home 0 0 0 0 Existing Residential Deck Addition 19 107504 11 39350
Room Addition 3 278763 4 569729
Porch Additions 0 0 1 15925
Other Additions 0 0 0 0
Basement Finish 29 342255 27 294745
Alterations 50 516115 36 341383
Multi-Family Addition 0 0 0 0
Multi-Family Alterations 2 113000 5 40095 New Commercial Assembly (Church) 0 0 0 0
Assembly (General) 0 0 0 0
Assembly (RestaurantBar) 1 1561000 1 198000
Business 0 0 1 300000
Education 0 0 0 0
FactoryIndustrial 0 0 0 0
Institution 0 0 0 0
Mercantile 0 0 0 0
Miscelaneous 0 0 0 0
Utility (General) 1 130000 0 0
Residential (CareAssisted Living) 0 0 0 0
Storage (General) 1 45000 1 56000
Storage (Warehouse) 0 0 0 0 Existing CommercialAddition 8 5812413 1 3669000
Alterations 34 5984762 32 5633723
Structural Shell 0 0 0 0
ldquoWhite Boxrdquo 1 15000 0 0
Interior Demolition Only 3 48500 1 39775
Other Phased Permits 0 0 0 0
Other ConstructionBusiness Signs 15 106565 23 175223
Advertising Sign 1 18000 0 0
Footings amp Foundations 2 220000 0 0
Demolition 3 0
Rochester Building Permits April 2014
January 33 39 27 20 3 13 3 6 19 11
February 31 31 19 13 1 8 8 20 15 14
March 59 37 30 29 16 27 24 32 29 28
April 58 58 44 27 29 25 19 29 39 25
TOTAL 181 165 122 89 49 73 54 87 102 78
May 77 69 50 30 33 20 14 22 27
June 81 59 43 36 36 12 26 32 33
July 58 36 60 23 21 23 8 39 39
August 69 36 43 28 26 15 18 38 21
September 65 31 33 28 33 10 19 22 23
October 71 49 34 19 31 14 16 23 34
November 40 38 23 26 30 21 20 22 26
December 60 23 11 16 15 12 16 14 22
TOTAL 702 506 417 302 274 200 191 299 326 78
Single Family Homes
Year To Date Statistics 2014 2013 NO VALUATION NO VALUATION
Building Permits Issued to Date 617 99659586 576 55353067
Single Family Dwelling 78 19118519 102 23271991
Multi-Family Buildings Total Units 39 1 3702052 0 0
Trade Permits Issued to Date 2163 22421315 2077 19001370
Electrical 719 10304793 649 10630028
Electrical (Temp Service) 65 14350 79 23350
Mechanical 570 4962388 543 4383007
Gas Piping 135 348756 141 120700
Fireplace 113 303426 117 283801
Hydronic System 57 1939043 40 736592
Plumbing 504 4548559 508 2823892
Total Permits YTD 2780 122180901 2653 74354437
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
WwwRochesterAreaBuilderscomJune 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
MARCH 2014
New Residential NUMBER VALUATION
Single Family Detached 7 1027450
Existing Residential
Basement Finish 5 81500
Alterations 1 $500
ByronBuilding Permits
MARCH 2014
New Residential NUMBER VALUATION
Single Family 3 455000
Existing Residential NUMBER VALUATION
Heating 1 3600
Basement Finish 1 20000
Pine IslandBuilding Permits
wwwRochesterAreaBuilderscom22 | June 2014
Much has recently been made of the notion that China has enough serious structural problems with its economy that chances are good it will experience a ldquohard landingrdquo defined as economic growth quickly slowing from 75 today to the low single digits This slowdown would weaken commodity prices hurting developing nations and reduce Chinese imports of high-quality finished goods from developed nations also hurting the US Europe and Japan While the Chinese economy has problems many are chronic and I believe the government has sufficient resources to manage the acute ones and avoid a hard landing
The key problems the Chinese economy suffers from are threefold a profound overreliance on large trade surpluses massive government overinvestment in infrastructure and a weak financial system that has resulted in both bad loans made by irresponsible local and regional governments and a highly leveraged and lightly regulated shadow banking system (sound familiar) that may well implode
The first problem is fading away After running trade surpluses in the $45 billionyear range through 2003 they skyrocketed to $400 billionyear by the end of 2008 However that highpoint coincided with the Great Recession which resulted in a huge contraction in trade and simultaneously an effort by many nations to boost exports to help their domestic economies As a result Chinese trade surpluses have averaged about $300 billionyear (about two-thirds of that with the US) since early 2009 and show no discernable upward trend Moreover as the Chinese economy is about twice as big today as it was in 2005 the economic impact of the now smaller trade surpluses on the overall economy is much smaller
The second problem of roads to nowhere massive over building of plant leading to ruinous excess capacity along with the construction of uninhabited ghost towns is being rectified And rectified they can be because these destructive outcomes are the direct result of policies pursued by the central government that are now being overhauled GDP growth targets are being reduced artificially low interest rates earned by savers are likely to rise in the near future and the currency which has been profoundly undervalued is slowly appreciating Collectively these policies will curb wasteful overinvestment and slowly replace it with increased domestic consumption and reduced exports
As for the substantial dodgy debt on the books of local and regional governments and shadow banks due to weakening housing prices and raw land values that act as collateral for many loans here the problem is serious That said Chinarsquos debt is about 25 of GDP giving the central government ample room to borrow should it be necessary Moreover the central government is beginning to force local and regional governments to sell some of the $7 trillion in assets they own in an effort to shore up their financial condition
Moreover with $4 trillion in foreign reserves and the ability to weaken the Chinese currency at will to boost exports China has tools other nations donrsquot have Lastly expect Beijing to re-stimulate sagging housing markets by relaxing home-purchase requirements and local governments to augment this policy by giving residency benefits to out-of-towners to further boost demand Combining the above with looser monetary policy makes me think that those making key policy decisions the brightest minds in the nation will see to it that China comes through this relatively unscathed
Beijing Balancing 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
WwwRochesterAreaBuilderscomJune 2014 | 23
NONE
MEMBERSHIPS PENDINGNONE
The firms listed below have applied for membership in the Rochester Area Builders Any member who objects to admission of any applicant shall notify the RAB Board of Directors in writing of the objection before
the next Board of Directors meeting
MEMBERSHIP TOTAL 453RETENTION RATE 929
As of 43014
WE WELCOME THE FOLLOWING NEW MEMBERS IN APRIL
Membership Information
Membership Renewals as of 43014
One Year
Altra Federal Credit Union 2013JE Dunn Construction 2013The Kitchen Design Studio 2013West Bank 2013Xcel Energy 2013
Two to Four Years
Elias Construction LLC 2011Lacina Siding amp Windows Inc 2011Solar Connection Inc 2011Chladek Construction LLC 2010MEP Associates 2010Rochester Asphalt Inc 2010Wildwood Sports Bar and Grill 2010
Five to Nine Years
Beckleyrsquos Office Products 2009Beetles Bar amp Grill Inc 2008Data-Smart Computers Inc 2008HDR Architecture 2008Legends Concrete Inc 2007RCON Homes Inc 2007Michael Jack LLC 2006WA Insurance 2006Anderson Construction 2005
Ten to 19 Years
Scott Berberich Construction LLC 2004First General Services of SE MN 2003Todd Eidem Construction Inc 2002Ames Construction Inc 2001Expert Insulation Inc 2001HiMEC at Home 2001Habitat for Humanity - Rochester Area 2000Home Improvement Professionals Inc 1999
25 Years amp More
Countryside Builders LLC 1989Radcliffe Homes amp Remodeling 1988Thomas Tool amp Supply 1987Kreofsky Building Supplies 1985Tile Superstore amp More 1985Barrier Free Access Inc 1984RampM Development Company 1970
NEW APPLICANTS
FAT WILLYrsquoS BAR amp GRILL
4325 Maine Ave SERochester MN 55904Phone 507- 206-4301
Contact Bill HendersonAssociate Member
RestaurantBarSponsored by
David Kane Kane amp Johnson Architects Inc
KAHLER HOSPITALITY GROUP
20 2nd Avenue SWRochester MN 55902Phone 507- 280-6200
Contact Marnie GlynnAssociate Member
HotelSponsored byNone Listed
MANUFACTURERrsquoS BANK amp TRUST
2020 2nd Street SWRochester MN 55902Phone 507- 226-8460
Contact Thomas HeepkeAssociate Member
BankSponsored by
Sue Hanson Rochester Title amp Escrow Company Inc
SAWYER CONSTRUCTION SERVICES INC9472 65th Street NE
Elgin MN 55932Phone 507-272-1740Contact Marv Sawyer
Associate MemberLawn CareTree Service
Sponsored byChristy Buchan Energy Products amp Design Inc
wwwRochesterAreaBuilderscom24 | June 2014
Put your membershipto work nowMoney-saving discounts that benefit yourbusiness your employees and your family
wwwnahborgMA
National Association of Home Builders
R
WwwRochesterAreaBuilderscomJune 2014 | 17
Committee UpdatesNOMINATING COMMITTEECHAIRPERSON John Eckerman Boldt Construction
The Nominating Committee will be meeting soon to discuss nominations for the 2015 Board of Directors as well as chairpersons for our many committees and councils If you would like to recommend a member for a position or if you would like to recommend yourself please call John at the office 282-7698 We are always looking for new people to be involved in the management of our association
SHOWCASE COMMITTEECHAIRPERSON Brandon Vagt XRG Concepts
The Fall Showcase of Homes is scheduled for September 13th 14th and 20th 21st Have you started building a home to enter in the Showcase Itrsquos a wonderful opportunity to have your home seen by thousands of potential customers Information packets have been mailed to residential builders and the first of three deadlines is June 19th
Committee ChairpersonsAMBASSADORSGreg Hird First Alliance Credit UnionAWARDSTBABUILDING MAINTENANCETJ Schutz Advanced Building Center IncBUILDING SAFETY ADVISORYMickey Elias Elias Construction LLCCOMMUNITY RELATIONSTony Kunz Hillerrsquos Flooring AmericaDISPUTE RESOLUTIONJohn Kuntz Kuntz Electric IncEDUCATIONVacantEXECUTIVEKevin Worden Rochester Area Habitat for HumanityFASHION SHOWKaren Blissenbach Design Studio BFINANCECarla Kilpatrick Home Federal Savings BankGOLF OUTINGLindsey Rippentrop Olmsted National BankGOVERNMENT AFFAIRSJohn Eckerman The Boldt CompanyGREEN BUILDINGKelly OrsquoMarro XRG Concepts LLCHOME SHOW ndash 2013Jeff Kalmes Hillers Flooring AmericaMARKETINGRob Easthouse Electrical Solutions amp ServiceMEMBERSHIP amp RETENTIONDan Bochman Kruse LumberNOMINATINGKerk Johnson Schwickertrsquos Tecta America LLC PERSONNELKevin Worden Rochester Area Habitat for HumanityPROGRAMDan Plizga Weis Builders IncPUBLIC WORKS ADVISORYJeff Broberg McGhie amp Betts - a Division of WSB amp Associates IncSHOWCASE OF HOMESBrandon Vagt XRG Concepts LLCSPIKE CLUBJay Burke Heartwood Homes of Rochester IncSPORTING CLAYSJames Coyle Kane amp Johnson Architects Inc
CouncilsBER EXECUTIVE COMMITTEEJJ Webster Kraus-Anderson Construction CompanyCBC EXECUTIVE COMMITTEEChris Terry Knutson Construction ServicesDEVELOPMENT COUNCILJohn Sipple Rochester Area Appraisals LLCREMODELERS EXECUTIVE COMMITTEESam Peyton Kingrsquos Flooring LLCREMODELERS TOURKaren Blissenbach Design Studio B
wwwRochesterAreaBuilderscom18 | June 2014
May MeetingThank you to Kingrsquos Flooring for sponsor-
ing the May Meeting held at the RAB Office We had a nice turnout and
enjoyed the beautiful weather as we sat outside and networked and enjoyed the lunch that Kingrsquos Flooring provided We
hope to see you all again in June
construction fashion expose
WwwRochesterAreaBuilderscomJune 2014 | 19
Members2014 Commercial Builders Council107 Members as of 123113AB Systems IncAccord Electric IncAdvanced DisposalAlpha Video amp AudioAssociated BankAlvin E Benike IncThe Blue Book
of Building amp Construction
The Boldt CompanyBraun Intertec
CorporationBriese Iron Works IncBrock White CompanyCO Brown AgencyCambriaCarpet OneCentury Painting amp
Decorating LLCChosen Valley Testing
IncConstruction
Partnership IncCounselor Realty of
Rochester IncCounty Materials
CorporationCRW architecture +
design group incCustom AlarmCustom
Communications IncDunlap amp SeegerEastwood Bankeci llcElcor ConstructionEnergy Panel StructuresEnergy Products amp
Design IncEnventisExpert Insulation IncFerguson EnterprisesFriedrich Construction
IncGerhardsGoodin CompanyHaley Comfort Systems
(Authorized FireSide Dealer)
WL Hall CompanyHGA Architects and
EngineersHDR ArchitectureHeartman InsuranceHillerrsquos Flooring AmericaHiMec at HomeHome Federal Savings
BankHunt Electric
CorporationKampM Glass CompanyKampS Heating AC
Plumbing amp ElectricalKane amp Johnson
Architects IncKey Builders IncKnutson Construction
ServicesKomitt Concrete IncKraus-Anderson
Construction CompanyKreofsky Building
SuppliesKruse LumberKuntz Electric IncKwik Trip IncLeitzen Concrete
Products IncEd Lunn Construction
IncMarvin Windows amp
DoorsMavo Systems IncMcGhie amp Betts Inc
McGough ConstructionMEC Construction IncMEP AssociatesMerchants BankMerit Contracting IncMinnesota Energy
Resources CorporationMinnwest BankNickelson Painting IncOlmsted National BankOnSitePalmer Soderberg IncPella Windows amp DoorsPeoplersquos Energy
CooperativePompeii Painting IncPrehn Building Sales
IncPremier Bank RochesterProBuild Company LLCReliable Contractors
Inc Rochester Area
Appraisals LLCRochester Area
Economic Development Inc
Rochester Public Utilities
Rochester Ready Mix Concrete Co
Rochester Sign Service Inc
Rochester Title amp Escrow Company Inc
Ryan Electric of Rochester Inc
Schoeppner IncSchwab LLCSchwickertrsquos Tecta
America LLCStantecStructural Design
Group IncSuperior MechanicalTamarack Materials of
Rochester IncThink Mutual BankTonna Mechanical IncTSP Architects amp
EngineersTW Construction
Solutions LLCUnited RentalsThe Urban StudioUS BankValor Mechanical IncVeit CompaniesVertical Limit
ConstructionViking Automatic
Sprinkler CompanyViking Electric SupplyWeis Builders IncWells Fargo Bank
Minnesota NAWendland UtzWidseth Smith NoltingYaggy Colby Associates
BUILDERS COUNCILCOMMERCIAL
a d i v i s i o n o f R o c h e s t e r A r e a B u i l d e r s I n c
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
June MeetingCome to the June meeting and hear an in depth discussion of the Comprehensive Housing Needs Assessment for Olmsted County conducted by Maxfield Research Inc The study projects housing demand for submarkets in the Olmsted County Market Area from 2013 through 2030 It also provides recommendations on the amount and types of housing that could be built to satisfy demand from current and future residents over the next decade and beyond
June MEETINGDATE Wednesday June 4th 2014TIME Registration amp Networking at 700 AM Program at 730 AMPLACE Ramada Hotel amp Conference CenterPROGRAM Olmsted County Comprehensive Housing Needs AssessmentSPEAKERS Matt Mullins Vice President Maxfield Research Inc
wwwRochesterAreaBuilderscom20 | June 2014
2014 VALUATION 2013 VALUATION
New Residential Single Family Dwelling 25 5531411 39 9046592
Townhome Dwelling 0 0 0 0
Two-Family Houses 0 0 0 0
Multi-Family Bldgs 0 0 0 0
Manufactured Home 0 0 0 0 Existing Residential Deck Addition 19 107504 11 39350
Room Addition 3 278763 4 569729
Porch Additions 0 0 1 15925
Other Additions 0 0 0 0
Basement Finish 29 342255 27 294745
Alterations 50 516115 36 341383
Multi-Family Addition 0 0 0 0
Multi-Family Alterations 2 113000 5 40095 New Commercial Assembly (Church) 0 0 0 0
Assembly (General) 0 0 0 0
Assembly (RestaurantBar) 1 1561000 1 198000
Business 0 0 1 300000
Education 0 0 0 0
FactoryIndustrial 0 0 0 0
Institution 0 0 0 0
Mercantile 0 0 0 0
Miscelaneous 0 0 0 0
Utility (General) 1 130000 0 0
Residential (CareAssisted Living) 0 0 0 0
Storage (General) 1 45000 1 56000
Storage (Warehouse) 0 0 0 0 Existing CommercialAddition 8 5812413 1 3669000
Alterations 34 5984762 32 5633723
Structural Shell 0 0 0 0
ldquoWhite Boxrdquo 1 15000 0 0
Interior Demolition Only 3 48500 1 39775
Other Phased Permits 0 0 0 0
Other ConstructionBusiness Signs 15 106565 23 175223
Advertising Sign 1 18000 0 0
Footings amp Foundations 2 220000 0 0
Demolition 3 0
Rochester Building Permits April 2014
January 33 39 27 20 3 13 3 6 19 11
February 31 31 19 13 1 8 8 20 15 14
March 59 37 30 29 16 27 24 32 29 28
April 58 58 44 27 29 25 19 29 39 25
TOTAL 181 165 122 89 49 73 54 87 102 78
May 77 69 50 30 33 20 14 22 27
June 81 59 43 36 36 12 26 32 33
July 58 36 60 23 21 23 8 39 39
August 69 36 43 28 26 15 18 38 21
September 65 31 33 28 33 10 19 22 23
October 71 49 34 19 31 14 16 23 34
November 40 38 23 26 30 21 20 22 26
December 60 23 11 16 15 12 16 14 22
TOTAL 702 506 417 302 274 200 191 299 326 78
Single Family Homes
Year To Date Statistics 2014 2013 NO VALUATION NO VALUATION
Building Permits Issued to Date 617 99659586 576 55353067
Single Family Dwelling 78 19118519 102 23271991
Multi-Family Buildings Total Units 39 1 3702052 0 0
Trade Permits Issued to Date 2163 22421315 2077 19001370
Electrical 719 10304793 649 10630028
Electrical (Temp Service) 65 14350 79 23350
Mechanical 570 4962388 543 4383007
Gas Piping 135 348756 141 120700
Fireplace 113 303426 117 283801
Hydronic System 57 1939043 40 736592
Plumbing 504 4548559 508 2823892
Total Permits YTD 2780 122180901 2653 74354437
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
WwwRochesterAreaBuilderscomJune 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
MARCH 2014
New Residential NUMBER VALUATION
Single Family Detached 7 1027450
Existing Residential
Basement Finish 5 81500
Alterations 1 $500
ByronBuilding Permits
MARCH 2014
New Residential NUMBER VALUATION
Single Family 3 455000
Existing Residential NUMBER VALUATION
Heating 1 3600
Basement Finish 1 20000
Pine IslandBuilding Permits
wwwRochesterAreaBuilderscom22 | June 2014
Much has recently been made of the notion that China has enough serious structural problems with its economy that chances are good it will experience a ldquohard landingrdquo defined as economic growth quickly slowing from 75 today to the low single digits This slowdown would weaken commodity prices hurting developing nations and reduce Chinese imports of high-quality finished goods from developed nations also hurting the US Europe and Japan While the Chinese economy has problems many are chronic and I believe the government has sufficient resources to manage the acute ones and avoid a hard landing
The key problems the Chinese economy suffers from are threefold a profound overreliance on large trade surpluses massive government overinvestment in infrastructure and a weak financial system that has resulted in both bad loans made by irresponsible local and regional governments and a highly leveraged and lightly regulated shadow banking system (sound familiar) that may well implode
The first problem is fading away After running trade surpluses in the $45 billionyear range through 2003 they skyrocketed to $400 billionyear by the end of 2008 However that highpoint coincided with the Great Recession which resulted in a huge contraction in trade and simultaneously an effort by many nations to boost exports to help their domestic economies As a result Chinese trade surpluses have averaged about $300 billionyear (about two-thirds of that with the US) since early 2009 and show no discernable upward trend Moreover as the Chinese economy is about twice as big today as it was in 2005 the economic impact of the now smaller trade surpluses on the overall economy is much smaller
The second problem of roads to nowhere massive over building of plant leading to ruinous excess capacity along with the construction of uninhabited ghost towns is being rectified And rectified they can be because these destructive outcomes are the direct result of policies pursued by the central government that are now being overhauled GDP growth targets are being reduced artificially low interest rates earned by savers are likely to rise in the near future and the currency which has been profoundly undervalued is slowly appreciating Collectively these policies will curb wasteful overinvestment and slowly replace it with increased domestic consumption and reduced exports
As for the substantial dodgy debt on the books of local and regional governments and shadow banks due to weakening housing prices and raw land values that act as collateral for many loans here the problem is serious That said Chinarsquos debt is about 25 of GDP giving the central government ample room to borrow should it be necessary Moreover the central government is beginning to force local and regional governments to sell some of the $7 trillion in assets they own in an effort to shore up their financial condition
Moreover with $4 trillion in foreign reserves and the ability to weaken the Chinese currency at will to boost exports China has tools other nations donrsquot have Lastly expect Beijing to re-stimulate sagging housing markets by relaxing home-purchase requirements and local governments to augment this policy by giving residency benefits to out-of-towners to further boost demand Combining the above with looser monetary policy makes me think that those making key policy decisions the brightest minds in the nation will see to it that China comes through this relatively unscathed
Beijing Balancing 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
WwwRochesterAreaBuilderscomJune 2014 | 23
NONE
MEMBERSHIPS PENDINGNONE
The firms listed below have applied for membership in the Rochester Area Builders Any member who objects to admission of any applicant shall notify the RAB Board of Directors in writing of the objection before
the next Board of Directors meeting
MEMBERSHIP TOTAL 453RETENTION RATE 929
As of 43014
WE WELCOME THE FOLLOWING NEW MEMBERS IN APRIL
Membership Information
Membership Renewals as of 43014
One Year
Altra Federal Credit Union 2013JE Dunn Construction 2013The Kitchen Design Studio 2013West Bank 2013Xcel Energy 2013
Two to Four Years
Elias Construction LLC 2011Lacina Siding amp Windows Inc 2011Solar Connection Inc 2011Chladek Construction LLC 2010MEP Associates 2010Rochester Asphalt Inc 2010Wildwood Sports Bar and Grill 2010
Five to Nine Years
Beckleyrsquos Office Products 2009Beetles Bar amp Grill Inc 2008Data-Smart Computers Inc 2008HDR Architecture 2008Legends Concrete Inc 2007RCON Homes Inc 2007Michael Jack LLC 2006WA Insurance 2006Anderson Construction 2005
Ten to 19 Years
Scott Berberich Construction LLC 2004First General Services of SE MN 2003Todd Eidem Construction Inc 2002Ames Construction Inc 2001Expert Insulation Inc 2001HiMEC at Home 2001Habitat for Humanity - Rochester Area 2000Home Improvement Professionals Inc 1999
25 Years amp More
Countryside Builders LLC 1989Radcliffe Homes amp Remodeling 1988Thomas Tool amp Supply 1987Kreofsky Building Supplies 1985Tile Superstore amp More 1985Barrier Free Access Inc 1984RampM Development Company 1970
NEW APPLICANTS
FAT WILLYrsquoS BAR amp GRILL
4325 Maine Ave SERochester MN 55904Phone 507- 206-4301
Contact Bill HendersonAssociate Member
RestaurantBarSponsored by
David Kane Kane amp Johnson Architects Inc
KAHLER HOSPITALITY GROUP
20 2nd Avenue SWRochester MN 55902Phone 507- 280-6200
Contact Marnie GlynnAssociate Member
HotelSponsored byNone Listed
MANUFACTURERrsquoS BANK amp TRUST
2020 2nd Street SWRochester MN 55902Phone 507- 226-8460
Contact Thomas HeepkeAssociate Member
BankSponsored by
Sue Hanson Rochester Title amp Escrow Company Inc
SAWYER CONSTRUCTION SERVICES INC9472 65th Street NE
Elgin MN 55932Phone 507-272-1740Contact Marv Sawyer
Associate MemberLawn CareTree Service
Sponsored byChristy Buchan Energy Products amp Design Inc
wwwRochesterAreaBuilderscom24 | June 2014
Put your membershipto work nowMoney-saving discounts that benefit yourbusiness your employees and your family
wwwnahborgMA
National Association of Home Builders
R
wwwRochesterAreaBuilderscom18 | June 2014
May MeetingThank you to Kingrsquos Flooring for sponsor-
ing the May Meeting held at the RAB Office We had a nice turnout and
enjoyed the beautiful weather as we sat outside and networked and enjoyed the lunch that Kingrsquos Flooring provided We
hope to see you all again in June
construction fashion expose
WwwRochesterAreaBuilderscomJune 2014 | 19
Members2014 Commercial Builders Council107 Members as of 123113AB Systems IncAccord Electric IncAdvanced DisposalAlpha Video amp AudioAssociated BankAlvin E Benike IncThe Blue Book
of Building amp Construction
The Boldt CompanyBraun Intertec
CorporationBriese Iron Works IncBrock White CompanyCO Brown AgencyCambriaCarpet OneCentury Painting amp
Decorating LLCChosen Valley Testing
IncConstruction
Partnership IncCounselor Realty of
Rochester IncCounty Materials
CorporationCRW architecture +
design group incCustom AlarmCustom
Communications IncDunlap amp SeegerEastwood Bankeci llcElcor ConstructionEnergy Panel StructuresEnergy Products amp
Design IncEnventisExpert Insulation IncFerguson EnterprisesFriedrich Construction
IncGerhardsGoodin CompanyHaley Comfort Systems
(Authorized FireSide Dealer)
WL Hall CompanyHGA Architects and
EngineersHDR ArchitectureHeartman InsuranceHillerrsquos Flooring AmericaHiMec at HomeHome Federal Savings
BankHunt Electric
CorporationKampM Glass CompanyKampS Heating AC
Plumbing amp ElectricalKane amp Johnson
Architects IncKey Builders IncKnutson Construction
ServicesKomitt Concrete IncKraus-Anderson
Construction CompanyKreofsky Building
SuppliesKruse LumberKuntz Electric IncKwik Trip IncLeitzen Concrete
Products IncEd Lunn Construction
IncMarvin Windows amp
DoorsMavo Systems IncMcGhie amp Betts Inc
McGough ConstructionMEC Construction IncMEP AssociatesMerchants BankMerit Contracting IncMinnesota Energy
Resources CorporationMinnwest BankNickelson Painting IncOlmsted National BankOnSitePalmer Soderberg IncPella Windows amp DoorsPeoplersquos Energy
CooperativePompeii Painting IncPrehn Building Sales
IncPremier Bank RochesterProBuild Company LLCReliable Contractors
Inc Rochester Area
Appraisals LLCRochester Area
Economic Development Inc
Rochester Public Utilities
Rochester Ready Mix Concrete Co
Rochester Sign Service Inc
Rochester Title amp Escrow Company Inc
Ryan Electric of Rochester Inc
Schoeppner IncSchwab LLCSchwickertrsquos Tecta
America LLCStantecStructural Design
Group IncSuperior MechanicalTamarack Materials of
Rochester IncThink Mutual BankTonna Mechanical IncTSP Architects amp
EngineersTW Construction
Solutions LLCUnited RentalsThe Urban StudioUS BankValor Mechanical IncVeit CompaniesVertical Limit
ConstructionViking Automatic
Sprinkler CompanyViking Electric SupplyWeis Builders IncWells Fargo Bank
Minnesota NAWendland UtzWidseth Smith NoltingYaggy Colby Associates
BUILDERS COUNCILCOMMERCIAL
a d i v i s i o n o f R o c h e s t e r A r e a B u i l d e r s I n c
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
June MeetingCome to the June meeting and hear an in depth discussion of the Comprehensive Housing Needs Assessment for Olmsted County conducted by Maxfield Research Inc The study projects housing demand for submarkets in the Olmsted County Market Area from 2013 through 2030 It also provides recommendations on the amount and types of housing that could be built to satisfy demand from current and future residents over the next decade and beyond
June MEETINGDATE Wednesday June 4th 2014TIME Registration amp Networking at 700 AM Program at 730 AMPLACE Ramada Hotel amp Conference CenterPROGRAM Olmsted County Comprehensive Housing Needs AssessmentSPEAKERS Matt Mullins Vice President Maxfield Research Inc
wwwRochesterAreaBuilderscom20 | June 2014
2014 VALUATION 2013 VALUATION
New Residential Single Family Dwelling 25 5531411 39 9046592
Townhome Dwelling 0 0 0 0
Two-Family Houses 0 0 0 0
Multi-Family Bldgs 0 0 0 0
Manufactured Home 0 0 0 0 Existing Residential Deck Addition 19 107504 11 39350
Room Addition 3 278763 4 569729
Porch Additions 0 0 1 15925
Other Additions 0 0 0 0
Basement Finish 29 342255 27 294745
Alterations 50 516115 36 341383
Multi-Family Addition 0 0 0 0
Multi-Family Alterations 2 113000 5 40095 New Commercial Assembly (Church) 0 0 0 0
Assembly (General) 0 0 0 0
Assembly (RestaurantBar) 1 1561000 1 198000
Business 0 0 1 300000
Education 0 0 0 0
FactoryIndustrial 0 0 0 0
Institution 0 0 0 0
Mercantile 0 0 0 0
Miscelaneous 0 0 0 0
Utility (General) 1 130000 0 0
Residential (CareAssisted Living) 0 0 0 0
Storage (General) 1 45000 1 56000
Storage (Warehouse) 0 0 0 0 Existing CommercialAddition 8 5812413 1 3669000
Alterations 34 5984762 32 5633723
Structural Shell 0 0 0 0
ldquoWhite Boxrdquo 1 15000 0 0
Interior Demolition Only 3 48500 1 39775
Other Phased Permits 0 0 0 0
Other ConstructionBusiness Signs 15 106565 23 175223
Advertising Sign 1 18000 0 0
Footings amp Foundations 2 220000 0 0
Demolition 3 0
Rochester Building Permits April 2014
January 33 39 27 20 3 13 3 6 19 11
February 31 31 19 13 1 8 8 20 15 14
March 59 37 30 29 16 27 24 32 29 28
April 58 58 44 27 29 25 19 29 39 25
TOTAL 181 165 122 89 49 73 54 87 102 78
May 77 69 50 30 33 20 14 22 27
June 81 59 43 36 36 12 26 32 33
July 58 36 60 23 21 23 8 39 39
August 69 36 43 28 26 15 18 38 21
September 65 31 33 28 33 10 19 22 23
October 71 49 34 19 31 14 16 23 34
November 40 38 23 26 30 21 20 22 26
December 60 23 11 16 15 12 16 14 22
TOTAL 702 506 417 302 274 200 191 299 326 78
Single Family Homes
Year To Date Statistics 2014 2013 NO VALUATION NO VALUATION
Building Permits Issued to Date 617 99659586 576 55353067
Single Family Dwelling 78 19118519 102 23271991
Multi-Family Buildings Total Units 39 1 3702052 0 0
Trade Permits Issued to Date 2163 22421315 2077 19001370
Electrical 719 10304793 649 10630028
Electrical (Temp Service) 65 14350 79 23350
Mechanical 570 4962388 543 4383007
Gas Piping 135 348756 141 120700
Fireplace 113 303426 117 283801
Hydronic System 57 1939043 40 736592
Plumbing 504 4548559 508 2823892
Total Permits YTD 2780 122180901 2653 74354437
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
WwwRochesterAreaBuilderscomJune 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
MARCH 2014
New Residential NUMBER VALUATION
Single Family Detached 7 1027450
Existing Residential
Basement Finish 5 81500
Alterations 1 $500
ByronBuilding Permits
MARCH 2014
New Residential NUMBER VALUATION
Single Family 3 455000
Existing Residential NUMBER VALUATION
Heating 1 3600
Basement Finish 1 20000
Pine IslandBuilding Permits
wwwRochesterAreaBuilderscom22 | June 2014
Much has recently been made of the notion that China has enough serious structural problems with its economy that chances are good it will experience a ldquohard landingrdquo defined as economic growth quickly slowing from 75 today to the low single digits This slowdown would weaken commodity prices hurting developing nations and reduce Chinese imports of high-quality finished goods from developed nations also hurting the US Europe and Japan While the Chinese economy has problems many are chronic and I believe the government has sufficient resources to manage the acute ones and avoid a hard landing
The key problems the Chinese economy suffers from are threefold a profound overreliance on large trade surpluses massive government overinvestment in infrastructure and a weak financial system that has resulted in both bad loans made by irresponsible local and regional governments and a highly leveraged and lightly regulated shadow banking system (sound familiar) that may well implode
The first problem is fading away After running trade surpluses in the $45 billionyear range through 2003 they skyrocketed to $400 billionyear by the end of 2008 However that highpoint coincided with the Great Recession which resulted in a huge contraction in trade and simultaneously an effort by many nations to boost exports to help their domestic economies As a result Chinese trade surpluses have averaged about $300 billionyear (about two-thirds of that with the US) since early 2009 and show no discernable upward trend Moreover as the Chinese economy is about twice as big today as it was in 2005 the economic impact of the now smaller trade surpluses on the overall economy is much smaller
The second problem of roads to nowhere massive over building of plant leading to ruinous excess capacity along with the construction of uninhabited ghost towns is being rectified And rectified they can be because these destructive outcomes are the direct result of policies pursued by the central government that are now being overhauled GDP growth targets are being reduced artificially low interest rates earned by savers are likely to rise in the near future and the currency which has been profoundly undervalued is slowly appreciating Collectively these policies will curb wasteful overinvestment and slowly replace it with increased domestic consumption and reduced exports
As for the substantial dodgy debt on the books of local and regional governments and shadow banks due to weakening housing prices and raw land values that act as collateral for many loans here the problem is serious That said Chinarsquos debt is about 25 of GDP giving the central government ample room to borrow should it be necessary Moreover the central government is beginning to force local and regional governments to sell some of the $7 trillion in assets they own in an effort to shore up their financial condition
Moreover with $4 trillion in foreign reserves and the ability to weaken the Chinese currency at will to boost exports China has tools other nations donrsquot have Lastly expect Beijing to re-stimulate sagging housing markets by relaxing home-purchase requirements and local governments to augment this policy by giving residency benefits to out-of-towners to further boost demand Combining the above with looser monetary policy makes me think that those making key policy decisions the brightest minds in the nation will see to it that China comes through this relatively unscathed
Beijing Balancing 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
WwwRochesterAreaBuilderscomJune 2014 | 23
NONE
MEMBERSHIPS PENDINGNONE
The firms listed below have applied for membership in the Rochester Area Builders Any member who objects to admission of any applicant shall notify the RAB Board of Directors in writing of the objection before
the next Board of Directors meeting
MEMBERSHIP TOTAL 453RETENTION RATE 929
As of 43014
WE WELCOME THE FOLLOWING NEW MEMBERS IN APRIL
Membership Information
Membership Renewals as of 43014
One Year
Altra Federal Credit Union 2013JE Dunn Construction 2013The Kitchen Design Studio 2013West Bank 2013Xcel Energy 2013
Two to Four Years
Elias Construction LLC 2011Lacina Siding amp Windows Inc 2011Solar Connection Inc 2011Chladek Construction LLC 2010MEP Associates 2010Rochester Asphalt Inc 2010Wildwood Sports Bar and Grill 2010
Five to Nine Years
Beckleyrsquos Office Products 2009Beetles Bar amp Grill Inc 2008Data-Smart Computers Inc 2008HDR Architecture 2008Legends Concrete Inc 2007RCON Homes Inc 2007Michael Jack LLC 2006WA Insurance 2006Anderson Construction 2005
Ten to 19 Years
Scott Berberich Construction LLC 2004First General Services of SE MN 2003Todd Eidem Construction Inc 2002Ames Construction Inc 2001Expert Insulation Inc 2001HiMEC at Home 2001Habitat for Humanity - Rochester Area 2000Home Improvement Professionals Inc 1999
25 Years amp More
Countryside Builders LLC 1989Radcliffe Homes amp Remodeling 1988Thomas Tool amp Supply 1987Kreofsky Building Supplies 1985Tile Superstore amp More 1985Barrier Free Access Inc 1984RampM Development Company 1970
NEW APPLICANTS
FAT WILLYrsquoS BAR amp GRILL
4325 Maine Ave SERochester MN 55904Phone 507- 206-4301
Contact Bill HendersonAssociate Member
RestaurantBarSponsored by
David Kane Kane amp Johnson Architects Inc
KAHLER HOSPITALITY GROUP
20 2nd Avenue SWRochester MN 55902Phone 507- 280-6200
Contact Marnie GlynnAssociate Member
HotelSponsored byNone Listed
MANUFACTURERrsquoS BANK amp TRUST
2020 2nd Street SWRochester MN 55902Phone 507- 226-8460
Contact Thomas HeepkeAssociate Member
BankSponsored by
Sue Hanson Rochester Title amp Escrow Company Inc
SAWYER CONSTRUCTION SERVICES INC9472 65th Street NE
Elgin MN 55932Phone 507-272-1740Contact Marv Sawyer
Associate MemberLawn CareTree Service
Sponsored byChristy Buchan Energy Products amp Design Inc
wwwRochesterAreaBuilderscom24 | June 2014
Put your membershipto work nowMoney-saving discounts that benefit yourbusiness your employees and your family
wwwnahborgMA
National Association of Home Builders
R
WwwRochesterAreaBuilderscomJune 2014 | 19
Members2014 Commercial Builders Council107 Members as of 123113AB Systems IncAccord Electric IncAdvanced DisposalAlpha Video amp AudioAssociated BankAlvin E Benike IncThe Blue Book
of Building amp Construction
The Boldt CompanyBraun Intertec
CorporationBriese Iron Works IncBrock White CompanyCO Brown AgencyCambriaCarpet OneCentury Painting amp
Decorating LLCChosen Valley Testing
IncConstruction
Partnership IncCounselor Realty of
Rochester IncCounty Materials
CorporationCRW architecture +
design group incCustom AlarmCustom
Communications IncDunlap amp SeegerEastwood Bankeci llcElcor ConstructionEnergy Panel StructuresEnergy Products amp
Design IncEnventisExpert Insulation IncFerguson EnterprisesFriedrich Construction
IncGerhardsGoodin CompanyHaley Comfort Systems
(Authorized FireSide Dealer)
WL Hall CompanyHGA Architects and
EngineersHDR ArchitectureHeartman InsuranceHillerrsquos Flooring AmericaHiMec at HomeHome Federal Savings
BankHunt Electric
CorporationKampM Glass CompanyKampS Heating AC
Plumbing amp ElectricalKane amp Johnson
Architects IncKey Builders IncKnutson Construction
ServicesKomitt Concrete IncKraus-Anderson
Construction CompanyKreofsky Building
SuppliesKruse LumberKuntz Electric IncKwik Trip IncLeitzen Concrete
Products IncEd Lunn Construction
IncMarvin Windows amp
DoorsMavo Systems IncMcGhie amp Betts Inc
McGough ConstructionMEC Construction IncMEP AssociatesMerchants BankMerit Contracting IncMinnesota Energy
Resources CorporationMinnwest BankNickelson Painting IncOlmsted National BankOnSitePalmer Soderberg IncPella Windows amp DoorsPeoplersquos Energy
CooperativePompeii Painting IncPrehn Building Sales
IncPremier Bank RochesterProBuild Company LLCReliable Contractors
Inc Rochester Area
Appraisals LLCRochester Area
Economic Development Inc
Rochester Public Utilities
Rochester Ready Mix Concrete Co
Rochester Sign Service Inc
Rochester Title amp Escrow Company Inc
Ryan Electric of Rochester Inc
Schoeppner IncSchwab LLCSchwickertrsquos Tecta
America LLCStantecStructural Design
Group IncSuperior MechanicalTamarack Materials of
Rochester IncThink Mutual BankTonna Mechanical IncTSP Architects amp
EngineersTW Construction
Solutions LLCUnited RentalsThe Urban StudioUS BankValor Mechanical IncVeit CompaniesVertical Limit
ConstructionViking Automatic
Sprinkler CompanyViking Electric SupplyWeis Builders IncWells Fargo Bank
Minnesota NAWendland UtzWidseth Smith NoltingYaggy Colby Associates
BUILDERS COUNCILCOMMERCIAL
a d i v i s i o n o f R o c h e s t e r A r e a B u i l d e r s I n c
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
June MeetingCome to the June meeting and hear an in depth discussion of the Comprehensive Housing Needs Assessment for Olmsted County conducted by Maxfield Research Inc The study projects housing demand for submarkets in the Olmsted County Market Area from 2013 through 2030 It also provides recommendations on the amount and types of housing that could be built to satisfy demand from current and future residents over the next decade and beyond
June MEETINGDATE Wednesday June 4th 2014TIME Registration amp Networking at 700 AM Program at 730 AMPLACE Ramada Hotel amp Conference CenterPROGRAM Olmsted County Comprehensive Housing Needs AssessmentSPEAKERS Matt Mullins Vice President Maxfield Research Inc
wwwRochesterAreaBuilderscom20 | June 2014
2014 VALUATION 2013 VALUATION
New Residential Single Family Dwelling 25 5531411 39 9046592
Townhome Dwelling 0 0 0 0
Two-Family Houses 0 0 0 0
Multi-Family Bldgs 0 0 0 0
Manufactured Home 0 0 0 0 Existing Residential Deck Addition 19 107504 11 39350
Room Addition 3 278763 4 569729
Porch Additions 0 0 1 15925
Other Additions 0 0 0 0
Basement Finish 29 342255 27 294745
Alterations 50 516115 36 341383
Multi-Family Addition 0 0 0 0
Multi-Family Alterations 2 113000 5 40095 New Commercial Assembly (Church) 0 0 0 0
Assembly (General) 0 0 0 0
Assembly (RestaurantBar) 1 1561000 1 198000
Business 0 0 1 300000
Education 0 0 0 0
FactoryIndustrial 0 0 0 0
Institution 0 0 0 0
Mercantile 0 0 0 0
Miscelaneous 0 0 0 0
Utility (General) 1 130000 0 0
Residential (CareAssisted Living) 0 0 0 0
Storage (General) 1 45000 1 56000
Storage (Warehouse) 0 0 0 0 Existing CommercialAddition 8 5812413 1 3669000
Alterations 34 5984762 32 5633723
Structural Shell 0 0 0 0
ldquoWhite Boxrdquo 1 15000 0 0
Interior Demolition Only 3 48500 1 39775
Other Phased Permits 0 0 0 0
Other ConstructionBusiness Signs 15 106565 23 175223
Advertising Sign 1 18000 0 0
Footings amp Foundations 2 220000 0 0
Demolition 3 0
Rochester Building Permits April 2014
January 33 39 27 20 3 13 3 6 19 11
February 31 31 19 13 1 8 8 20 15 14
March 59 37 30 29 16 27 24 32 29 28
April 58 58 44 27 29 25 19 29 39 25
TOTAL 181 165 122 89 49 73 54 87 102 78
May 77 69 50 30 33 20 14 22 27
June 81 59 43 36 36 12 26 32 33
July 58 36 60 23 21 23 8 39 39
August 69 36 43 28 26 15 18 38 21
September 65 31 33 28 33 10 19 22 23
October 71 49 34 19 31 14 16 23 34
November 40 38 23 26 30 21 20 22 26
December 60 23 11 16 15 12 16 14 22
TOTAL 702 506 417 302 274 200 191 299 326 78
Single Family Homes
Year To Date Statistics 2014 2013 NO VALUATION NO VALUATION
Building Permits Issued to Date 617 99659586 576 55353067
Single Family Dwelling 78 19118519 102 23271991
Multi-Family Buildings Total Units 39 1 3702052 0 0
Trade Permits Issued to Date 2163 22421315 2077 19001370
Electrical 719 10304793 649 10630028
Electrical (Temp Service) 65 14350 79 23350
Mechanical 570 4962388 543 4383007
Gas Piping 135 348756 141 120700
Fireplace 113 303426 117 283801
Hydronic System 57 1939043 40 736592
Plumbing 504 4548559 508 2823892
Total Permits YTD 2780 122180901 2653 74354437
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
WwwRochesterAreaBuilderscomJune 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
MARCH 2014
New Residential NUMBER VALUATION
Single Family Detached 7 1027450
Existing Residential
Basement Finish 5 81500
Alterations 1 $500
ByronBuilding Permits
MARCH 2014
New Residential NUMBER VALUATION
Single Family 3 455000
Existing Residential NUMBER VALUATION
Heating 1 3600
Basement Finish 1 20000
Pine IslandBuilding Permits
wwwRochesterAreaBuilderscom22 | June 2014
Much has recently been made of the notion that China has enough serious structural problems with its economy that chances are good it will experience a ldquohard landingrdquo defined as economic growth quickly slowing from 75 today to the low single digits This slowdown would weaken commodity prices hurting developing nations and reduce Chinese imports of high-quality finished goods from developed nations also hurting the US Europe and Japan While the Chinese economy has problems many are chronic and I believe the government has sufficient resources to manage the acute ones and avoid a hard landing
The key problems the Chinese economy suffers from are threefold a profound overreliance on large trade surpluses massive government overinvestment in infrastructure and a weak financial system that has resulted in both bad loans made by irresponsible local and regional governments and a highly leveraged and lightly regulated shadow banking system (sound familiar) that may well implode
The first problem is fading away After running trade surpluses in the $45 billionyear range through 2003 they skyrocketed to $400 billionyear by the end of 2008 However that highpoint coincided with the Great Recession which resulted in a huge contraction in trade and simultaneously an effort by many nations to boost exports to help their domestic economies As a result Chinese trade surpluses have averaged about $300 billionyear (about two-thirds of that with the US) since early 2009 and show no discernable upward trend Moreover as the Chinese economy is about twice as big today as it was in 2005 the economic impact of the now smaller trade surpluses on the overall economy is much smaller
The second problem of roads to nowhere massive over building of plant leading to ruinous excess capacity along with the construction of uninhabited ghost towns is being rectified And rectified they can be because these destructive outcomes are the direct result of policies pursued by the central government that are now being overhauled GDP growth targets are being reduced artificially low interest rates earned by savers are likely to rise in the near future and the currency which has been profoundly undervalued is slowly appreciating Collectively these policies will curb wasteful overinvestment and slowly replace it with increased domestic consumption and reduced exports
As for the substantial dodgy debt on the books of local and regional governments and shadow banks due to weakening housing prices and raw land values that act as collateral for many loans here the problem is serious That said Chinarsquos debt is about 25 of GDP giving the central government ample room to borrow should it be necessary Moreover the central government is beginning to force local and regional governments to sell some of the $7 trillion in assets they own in an effort to shore up their financial condition
Moreover with $4 trillion in foreign reserves and the ability to weaken the Chinese currency at will to boost exports China has tools other nations donrsquot have Lastly expect Beijing to re-stimulate sagging housing markets by relaxing home-purchase requirements and local governments to augment this policy by giving residency benefits to out-of-towners to further boost demand Combining the above with looser monetary policy makes me think that those making key policy decisions the brightest minds in the nation will see to it that China comes through this relatively unscathed
Beijing Balancing 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
WwwRochesterAreaBuilderscomJune 2014 | 23
NONE
MEMBERSHIPS PENDINGNONE
The firms listed below have applied for membership in the Rochester Area Builders Any member who objects to admission of any applicant shall notify the RAB Board of Directors in writing of the objection before
the next Board of Directors meeting
MEMBERSHIP TOTAL 453RETENTION RATE 929
As of 43014
WE WELCOME THE FOLLOWING NEW MEMBERS IN APRIL
Membership Information
Membership Renewals as of 43014
One Year
Altra Federal Credit Union 2013JE Dunn Construction 2013The Kitchen Design Studio 2013West Bank 2013Xcel Energy 2013
Two to Four Years
Elias Construction LLC 2011Lacina Siding amp Windows Inc 2011Solar Connection Inc 2011Chladek Construction LLC 2010MEP Associates 2010Rochester Asphalt Inc 2010Wildwood Sports Bar and Grill 2010
Five to Nine Years
Beckleyrsquos Office Products 2009Beetles Bar amp Grill Inc 2008Data-Smart Computers Inc 2008HDR Architecture 2008Legends Concrete Inc 2007RCON Homes Inc 2007Michael Jack LLC 2006WA Insurance 2006Anderson Construction 2005
Ten to 19 Years
Scott Berberich Construction LLC 2004First General Services of SE MN 2003Todd Eidem Construction Inc 2002Ames Construction Inc 2001Expert Insulation Inc 2001HiMEC at Home 2001Habitat for Humanity - Rochester Area 2000Home Improvement Professionals Inc 1999
25 Years amp More
Countryside Builders LLC 1989Radcliffe Homes amp Remodeling 1988Thomas Tool amp Supply 1987Kreofsky Building Supplies 1985Tile Superstore amp More 1985Barrier Free Access Inc 1984RampM Development Company 1970
NEW APPLICANTS
FAT WILLYrsquoS BAR amp GRILL
4325 Maine Ave SERochester MN 55904Phone 507- 206-4301
Contact Bill HendersonAssociate Member
RestaurantBarSponsored by
David Kane Kane amp Johnson Architects Inc
KAHLER HOSPITALITY GROUP
20 2nd Avenue SWRochester MN 55902Phone 507- 280-6200
Contact Marnie GlynnAssociate Member
HotelSponsored byNone Listed
MANUFACTURERrsquoS BANK amp TRUST
2020 2nd Street SWRochester MN 55902Phone 507- 226-8460
Contact Thomas HeepkeAssociate Member
BankSponsored by
Sue Hanson Rochester Title amp Escrow Company Inc
SAWYER CONSTRUCTION SERVICES INC9472 65th Street NE
Elgin MN 55932Phone 507-272-1740Contact Marv Sawyer
Associate MemberLawn CareTree Service
Sponsored byChristy Buchan Energy Products amp Design Inc
wwwRochesterAreaBuilderscom24 | June 2014
Put your membershipto work nowMoney-saving discounts that benefit yourbusiness your employees and your family
wwwnahborgMA
National Association of Home Builders
R
wwwRochesterAreaBuilderscom20 | June 2014
2014 VALUATION 2013 VALUATION
New Residential Single Family Dwelling 25 5531411 39 9046592
Townhome Dwelling 0 0 0 0
Two-Family Houses 0 0 0 0
Multi-Family Bldgs 0 0 0 0
Manufactured Home 0 0 0 0 Existing Residential Deck Addition 19 107504 11 39350
Room Addition 3 278763 4 569729
Porch Additions 0 0 1 15925
Other Additions 0 0 0 0
Basement Finish 29 342255 27 294745
Alterations 50 516115 36 341383
Multi-Family Addition 0 0 0 0
Multi-Family Alterations 2 113000 5 40095 New Commercial Assembly (Church) 0 0 0 0
Assembly (General) 0 0 0 0
Assembly (RestaurantBar) 1 1561000 1 198000
Business 0 0 1 300000
Education 0 0 0 0
FactoryIndustrial 0 0 0 0
Institution 0 0 0 0
Mercantile 0 0 0 0
Miscelaneous 0 0 0 0
Utility (General) 1 130000 0 0
Residential (CareAssisted Living) 0 0 0 0
Storage (General) 1 45000 1 56000
Storage (Warehouse) 0 0 0 0 Existing CommercialAddition 8 5812413 1 3669000
Alterations 34 5984762 32 5633723
Structural Shell 0 0 0 0
ldquoWhite Boxrdquo 1 15000 0 0
Interior Demolition Only 3 48500 1 39775
Other Phased Permits 0 0 0 0
Other ConstructionBusiness Signs 15 106565 23 175223
Advertising Sign 1 18000 0 0
Footings amp Foundations 2 220000 0 0
Demolition 3 0
Rochester Building Permits April 2014
January 33 39 27 20 3 13 3 6 19 11
February 31 31 19 13 1 8 8 20 15 14
March 59 37 30 29 16 27 24 32 29 28
April 58 58 44 27 29 25 19 29 39 25
TOTAL 181 165 122 89 49 73 54 87 102 78
May 77 69 50 30 33 20 14 22 27
June 81 59 43 36 36 12 26 32 33
July 58 36 60 23 21 23 8 39 39
August 69 36 43 28 26 15 18 38 21
September 65 31 33 28 33 10 19 22 23
October 71 49 34 19 31 14 16 23 34
November 40 38 23 26 30 21 20 22 26
December 60 23 11 16 15 12 16 14 22
TOTAL 702 506 417 302 274 200 191 299 326 78
Single Family Homes
Year To Date Statistics 2014 2013 NO VALUATION NO VALUATION
Building Permits Issued to Date 617 99659586 576 55353067
Single Family Dwelling 78 19118519 102 23271991
Multi-Family Buildings Total Units 39 1 3702052 0 0
Trade Permits Issued to Date 2163 22421315 2077 19001370
Electrical 719 10304793 649 10630028
Electrical (Temp Service) 65 14350 79 23350
Mechanical 570 4962388 543 4383007
Gas Piping 135 348756 141 120700
Fireplace 113 303426 117 283801
Hydronic System 57 1939043 40 736592
Plumbing 504 4548559 508 2823892
Total Permits YTD 2780 122180901 2653 74354437
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
WwwRochesterAreaBuilderscomJune 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
MARCH 2014
New Residential NUMBER VALUATION
Single Family Detached 7 1027450
Existing Residential
Basement Finish 5 81500
Alterations 1 $500
ByronBuilding Permits
MARCH 2014
New Residential NUMBER VALUATION
Single Family 3 455000
Existing Residential NUMBER VALUATION
Heating 1 3600
Basement Finish 1 20000
Pine IslandBuilding Permits
wwwRochesterAreaBuilderscom22 | June 2014
Much has recently been made of the notion that China has enough serious structural problems with its economy that chances are good it will experience a ldquohard landingrdquo defined as economic growth quickly slowing from 75 today to the low single digits This slowdown would weaken commodity prices hurting developing nations and reduce Chinese imports of high-quality finished goods from developed nations also hurting the US Europe and Japan While the Chinese economy has problems many are chronic and I believe the government has sufficient resources to manage the acute ones and avoid a hard landing
The key problems the Chinese economy suffers from are threefold a profound overreliance on large trade surpluses massive government overinvestment in infrastructure and a weak financial system that has resulted in both bad loans made by irresponsible local and regional governments and a highly leveraged and lightly regulated shadow banking system (sound familiar) that may well implode
The first problem is fading away After running trade surpluses in the $45 billionyear range through 2003 they skyrocketed to $400 billionyear by the end of 2008 However that highpoint coincided with the Great Recession which resulted in a huge contraction in trade and simultaneously an effort by many nations to boost exports to help their domestic economies As a result Chinese trade surpluses have averaged about $300 billionyear (about two-thirds of that with the US) since early 2009 and show no discernable upward trend Moreover as the Chinese economy is about twice as big today as it was in 2005 the economic impact of the now smaller trade surpluses on the overall economy is much smaller
The second problem of roads to nowhere massive over building of plant leading to ruinous excess capacity along with the construction of uninhabited ghost towns is being rectified And rectified they can be because these destructive outcomes are the direct result of policies pursued by the central government that are now being overhauled GDP growth targets are being reduced artificially low interest rates earned by savers are likely to rise in the near future and the currency which has been profoundly undervalued is slowly appreciating Collectively these policies will curb wasteful overinvestment and slowly replace it with increased domestic consumption and reduced exports
As for the substantial dodgy debt on the books of local and regional governments and shadow banks due to weakening housing prices and raw land values that act as collateral for many loans here the problem is serious That said Chinarsquos debt is about 25 of GDP giving the central government ample room to borrow should it be necessary Moreover the central government is beginning to force local and regional governments to sell some of the $7 trillion in assets they own in an effort to shore up their financial condition
Moreover with $4 trillion in foreign reserves and the ability to weaken the Chinese currency at will to boost exports China has tools other nations donrsquot have Lastly expect Beijing to re-stimulate sagging housing markets by relaxing home-purchase requirements and local governments to augment this policy by giving residency benefits to out-of-towners to further boost demand Combining the above with looser monetary policy makes me think that those making key policy decisions the brightest minds in the nation will see to it that China comes through this relatively unscathed
Beijing Balancing 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
WwwRochesterAreaBuilderscomJune 2014 | 23
NONE
MEMBERSHIPS PENDINGNONE
The firms listed below have applied for membership in the Rochester Area Builders Any member who objects to admission of any applicant shall notify the RAB Board of Directors in writing of the objection before
the next Board of Directors meeting
MEMBERSHIP TOTAL 453RETENTION RATE 929
As of 43014
WE WELCOME THE FOLLOWING NEW MEMBERS IN APRIL
Membership Information
Membership Renewals as of 43014
One Year
Altra Federal Credit Union 2013JE Dunn Construction 2013The Kitchen Design Studio 2013West Bank 2013Xcel Energy 2013
Two to Four Years
Elias Construction LLC 2011Lacina Siding amp Windows Inc 2011Solar Connection Inc 2011Chladek Construction LLC 2010MEP Associates 2010Rochester Asphalt Inc 2010Wildwood Sports Bar and Grill 2010
Five to Nine Years
Beckleyrsquos Office Products 2009Beetles Bar amp Grill Inc 2008Data-Smart Computers Inc 2008HDR Architecture 2008Legends Concrete Inc 2007RCON Homes Inc 2007Michael Jack LLC 2006WA Insurance 2006Anderson Construction 2005
Ten to 19 Years
Scott Berberich Construction LLC 2004First General Services of SE MN 2003Todd Eidem Construction Inc 2002Ames Construction Inc 2001Expert Insulation Inc 2001HiMEC at Home 2001Habitat for Humanity - Rochester Area 2000Home Improvement Professionals Inc 1999
25 Years amp More
Countryside Builders LLC 1989Radcliffe Homes amp Remodeling 1988Thomas Tool amp Supply 1987Kreofsky Building Supplies 1985Tile Superstore amp More 1985Barrier Free Access Inc 1984RampM Development Company 1970
NEW APPLICANTS
FAT WILLYrsquoS BAR amp GRILL
4325 Maine Ave SERochester MN 55904Phone 507- 206-4301
Contact Bill HendersonAssociate Member
RestaurantBarSponsored by
David Kane Kane amp Johnson Architects Inc
KAHLER HOSPITALITY GROUP
20 2nd Avenue SWRochester MN 55902Phone 507- 280-6200
Contact Marnie GlynnAssociate Member
HotelSponsored byNone Listed
MANUFACTURERrsquoS BANK amp TRUST
2020 2nd Street SWRochester MN 55902Phone 507- 226-8460
Contact Thomas HeepkeAssociate Member
BankSponsored by
Sue Hanson Rochester Title amp Escrow Company Inc
SAWYER CONSTRUCTION SERVICES INC9472 65th Street NE
Elgin MN 55932Phone 507-272-1740Contact Marv Sawyer
Associate MemberLawn CareTree Service
Sponsored byChristy Buchan Energy Products amp Design Inc
wwwRochesterAreaBuilderscom24 | June 2014
Put your membershipto work nowMoney-saving discounts that benefit yourbusiness your employees and your family
wwwnahborgMA
National Association of Home Builders
R
WwwRochesterAreaBuilderscomJune 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
MARCH 2014
New Residential NUMBER VALUATION
Single Family Detached 7 1027450
Existing Residential
Basement Finish 5 81500
Alterations 1 $500
ByronBuilding Permits
MARCH 2014
New Residential NUMBER VALUATION
Single Family 3 455000
Existing Residential NUMBER VALUATION
Heating 1 3600
Basement Finish 1 20000
Pine IslandBuilding Permits
wwwRochesterAreaBuilderscom22 | June 2014
Much has recently been made of the notion that China has enough serious structural problems with its economy that chances are good it will experience a ldquohard landingrdquo defined as economic growth quickly slowing from 75 today to the low single digits This slowdown would weaken commodity prices hurting developing nations and reduce Chinese imports of high-quality finished goods from developed nations also hurting the US Europe and Japan While the Chinese economy has problems many are chronic and I believe the government has sufficient resources to manage the acute ones and avoid a hard landing
The key problems the Chinese economy suffers from are threefold a profound overreliance on large trade surpluses massive government overinvestment in infrastructure and a weak financial system that has resulted in both bad loans made by irresponsible local and regional governments and a highly leveraged and lightly regulated shadow banking system (sound familiar) that may well implode
The first problem is fading away After running trade surpluses in the $45 billionyear range through 2003 they skyrocketed to $400 billionyear by the end of 2008 However that highpoint coincided with the Great Recession which resulted in a huge contraction in trade and simultaneously an effort by many nations to boost exports to help their domestic economies As a result Chinese trade surpluses have averaged about $300 billionyear (about two-thirds of that with the US) since early 2009 and show no discernable upward trend Moreover as the Chinese economy is about twice as big today as it was in 2005 the economic impact of the now smaller trade surpluses on the overall economy is much smaller
The second problem of roads to nowhere massive over building of plant leading to ruinous excess capacity along with the construction of uninhabited ghost towns is being rectified And rectified they can be because these destructive outcomes are the direct result of policies pursued by the central government that are now being overhauled GDP growth targets are being reduced artificially low interest rates earned by savers are likely to rise in the near future and the currency which has been profoundly undervalued is slowly appreciating Collectively these policies will curb wasteful overinvestment and slowly replace it with increased domestic consumption and reduced exports
As for the substantial dodgy debt on the books of local and regional governments and shadow banks due to weakening housing prices and raw land values that act as collateral for many loans here the problem is serious That said Chinarsquos debt is about 25 of GDP giving the central government ample room to borrow should it be necessary Moreover the central government is beginning to force local and regional governments to sell some of the $7 trillion in assets they own in an effort to shore up their financial condition
Moreover with $4 trillion in foreign reserves and the ability to weaken the Chinese currency at will to boost exports China has tools other nations donrsquot have Lastly expect Beijing to re-stimulate sagging housing markets by relaxing home-purchase requirements and local governments to augment this policy by giving residency benefits to out-of-towners to further boost demand Combining the above with looser monetary policy makes me think that those making key policy decisions the brightest minds in the nation will see to it that China comes through this relatively unscathed
Beijing Balancing 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
WwwRochesterAreaBuilderscomJune 2014 | 23
NONE
MEMBERSHIPS PENDINGNONE
The firms listed below have applied for membership in the Rochester Area Builders Any member who objects to admission of any applicant shall notify the RAB Board of Directors in writing of the objection before
the next Board of Directors meeting
MEMBERSHIP TOTAL 453RETENTION RATE 929
As of 43014
WE WELCOME THE FOLLOWING NEW MEMBERS IN APRIL
Membership Information
Membership Renewals as of 43014
One Year
Altra Federal Credit Union 2013JE Dunn Construction 2013The Kitchen Design Studio 2013West Bank 2013Xcel Energy 2013
Two to Four Years
Elias Construction LLC 2011Lacina Siding amp Windows Inc 2011Solar Connection Inc 2011Chladek Construction LLC 2010MEP Associates 2010Rochester Asphalt Inc 2010Wildwood Sports Bar and Grill 2010
Five to Nine Years
Beckleyrsquos Office Products 2009Beetles Bar amp Grill Inc 2008Data-Smart Computers Inc 2008HDR Architecture 2008Legends Concrete Inc 2007RCON Homes Inc 2007Michael Jack LLC 2006WA Insurance 2006Anderson Construction 2005
Ten to 19 Years
Scott Berberich Construction LLC 2004First General Services of SE MN 2003Todd Eidem Construction Inc 2002Ames Construction Inc 2001Expert Insulation Inc 2001HiMEC at Home 2001Habitat for Humanity - Rochester Area 2000Home Improvement Professionals Inc 1999
25 Years amp More
Countryside Builders LLC 1989Radcliffe Homes amp Remodeling 1988Thomas Tool amp Supply 1987Kreofsky Building Supplies 1985Tile Superstore amp More 1985Barrier Free Access Inc 1984RampM Development Company 1970
NEW APPLICANTS
FAT WILLYrsquoS BAR amp GRILL
4325 Maine Ave SERochester MN 55904Phone 507- 206-4301
Contact Bill HendersonAssociate Member
RestaurantBarSponsored by
David Kane Kane amp Johnson Architects Inc
KAHLER HOSPITALITY GROUP
20 2nd Avenue SWRochester MN 55902Phone 507- 280-6200
Contact Marnie GlynnAssociate Member
HotelSponsored byNone Listed
MANUFACTURERrsquoS BANK amp TRUST
2020 2nd Street SWRochester MN 55902Phone 507- 226-8460
Contact Thomas HeepkeAssociate Member
BankSponsored by
Sue Hanson Rochester Title amp Escrow Company Inc
SAWYER CONSTRUCTION SERVICES INC9472 65th Street NE
Elgin MN 55932Phone 507-272-1740Contact Marv Sawyer
Associate MemberLawn CareTree Service
Sponsored byChristy Buchan Energy Products amp Design Inc
wwwRochesterAreaBuilderscom24 | June 2014
Put your membershipto work nowMoney-saving discounts that benefit yourbusiness your employees and your family
wwwnahborgMA
National Association of Home Builders
R
wwwRochesterAreaBuilderscom22 | June 2014
Much has recently been made of the notion that China has enough serious structural problems with its economy that chances are good it will experience a ldquohard landingrdquo defined as economic growth quickly slowing from 75 today to the low single digits This slowdown would weaken commodity prices hurting developing nations and reduce Chinese imports of high-quality finished goods from developed nations also hurting the US Europe and Japan While the Chinese economy has problems many are chronic and I believe the government has sufficient resources to manage the acute ones and avoid a hard landing
The key problems the Chinese economy suffers from are threefold a profound overreliance on large trade surpluses massive government overinvestment in infrastructure and a weak financial system that has resulted in both bad loans made by irresponsible local and regional governments and a highly leveraged and lightly regulated shadow banking system (sound familiar) that may well implode
The first problem is fading away After running trade surpluses in the $45 billionyear range through 2003 they skyrocketed to $400 billionyear by the end of 2008 However that highpoint coincided with the Great Recession which resulted in a huge contraction in trade and simultaneously an effort by many nations to boost exports to help their domestic economies As a result Chinese trade surpluses have averaged about $300 billionyear (about two-thirds of that with the US) since early 2009 and show no discernable upward trend Moreover as the Chinese economy is about twice as big today as it was in 2005 the economic impact of the now smaller trade surpluses on the overall economy is much smaller
The second problem of roads to nowhere massive over building of plant leading to ruinous excess capacity along with the construction of uninhabited ghost towns is being rectified And rectified they can be because these destructive outcomes are the direct result of policies pursued by the central government that are now being overhauled GDP growth targets are being reduced artificially low interest rates earned by savers are likely to rise in the near future and the currency which has been profoundly undervalued is slowly appreciating Collectively these policies will curb wasteful overinvestment and slowly replace it with increased domestic consumption and reduced exports
As for the substantial dodgy debt on the books of local and regional governments and shadow banks due to weakening housing prices and raw land values that act as collateral for many loans here the problem is serious That said Chinarsquos debt is about 25 of GDP giving the central government ample room to borrow should it be necessary Moreover the central government is beginning to force local and regional governments to sell some of the $7 trillion in assets they own in an effort to shore up their financial condition
Moreover with $4 trillion in foreign reserves and the ability to weaken the Chinese currency at will to boost exports China has tools other nations donrsquot have Lastly expect Beijing to re-stimulate sagging housing markets by relaxing home-purchase requirements and local governments to augment this policy by giving residency benefits to out-of-towners to further boost demand Combining the above with looser monetary policy makes me think that those making key policy decisions the brightest minds in the nation will see to it that China comes through this relatively unscathed
Beijing Balancing 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
WwwRochesterAreaBuilderscomJune 2014 | 23
NONE
MEMBERSHIPS PENDINGNONE
The firms listed below have applied for membership in the Rochester Area Builders Any member who objects to admission of any applicant shall notify the RAB Board of Directors in writing of the objection before
the next Board of Directors meeting
MEMBERSHIP TOTAL 453RETENTION RATE 929
As of 43014
WE WELCOME THE FOLLOWING NEW MEMBERS IN APRIL
Membership Information
Membership Renewals as of 43014
One Year
Altra Federal Credit Union 2013JE Dunn Construction 2013The Kitchen Design Studio 2013West Bank 2013Xcel Energy 2013
Two to Four Years
Elias Construction LLC 2011Lacina Siding amp Windows Inc 2011Solar Connection Inc 2011Chladek Construction LLC 2010MEP Associates 2010Rochester Asphalt Inc 2010Wildwood Sports Bar and Grill 2010
Five to Nine Years
Beckleyrsquos Office Products 2009Beetles Bar amp Grill Inc 2008Data-Smart Computers Inc 2008HDR Architecture 2008Legends Concrete Inc 2007RCON Homes Inc 2007Michael Jack LLC 2006WA Insurance 2006Anderson Construction 2005
Ten to 19 Years
Scott Berberich Construction LLC 2004First General Services of SE MN 2003Todd Eidem Construction Inc 2002Ames Construction Inc 2001Expert Insulation Inc 2001HiMEC at Home 2001Habitat for Humanity - Rochester Area 2000Home Improvement Professionals Inc 1999
25 Years amp More
Countryside Builders LLC 1989Radcliffe Homes amp Remodeling 1988Thomas Tool amp Supply 1987Kreofsky Building Supplies 1985Tile Superstore amp More 1985Barrier Free Access Inc 1984RampM Development Company 1970
NEW APPLICANTS
FAT WILLYrsquoS BAR amp GRILL
4325 Maine Ave SERochester MN 55904Phone 507- 206-4301
Contact Bill HendersonAssociate Member
RestaurantBarSponsored by
David Kane Kane amp Johnson Architects Inc
KAHLER HOSPITALITY GROUP
20 2nd Avenue SWRochester MN 55902Phone 507- 280-6200
Contact Marnie GlynnAssociate Member
HotelSponsored byNone Listed
MANUFACTURERrsquoS BANK amp TRUST
2020 2nd Street SWRochester MN 55902Phone 507- 226-8460
Contact Thomas HeepkeAssociate Member
BankSponsored by
Sue Hanson Rochester Title amp Escrow Company Inc
SAWYER CONSTRUCTION SERVICES INC9472 65th Street NE
Elgin MN 55932Phone 507-272-1740Contact Marv Sawyer
Associate MemberLawn CareTree Service
Sponsored byChristy Buchan Energy Products amp Design Inc
wwwRochesterAreaBuilderscom24 | June 2014
Put your membershipto work nowMoney-saving discounts that benefit yourbusiness your employees and your family
wwwnahborgMA
National Association of Home Builders
R
WwwRochesterAreaBuilderscomJune 2014 | 23
NONE
MEMBERSHIPS PENDINGNONE
The firms listed below have applied for membership in the Rochester Area Builders Any member who objects to admission of any applicant shall notify the RAB Board of Directors in writing of the objection before
the next Board of Directors meeting
MEMBERSHIP TOTAL 453RETENTION RATE 929
As of 43014
WE WELCOME THE FOLLOWING NEW MEMBERS IN APRIL
Membership Information
Membership Renewals as of 43014
One Year
Altra Federal Credit Union 2013JE Dunn Construction 2013The Kitchen Design Studio 2013West Bank 2013Xcel Energy 2013
Two to Four Years
Elias Construction LLC 2011Lacina Siding amp Windows Inc 2011Solar Connection Inc 2011Chladek Construction LLC 2010MEP Associates 2010Rochester Asphalt Inc 2010Wildwood Sports Bar and Grill 2010
Five to Nine Years
Beckleyrsquos Office Products 2009Beetles Bar amp Grill Inc 2008Data-Smart Computers Inc 2008HDR Architecture 2008Legends Concrete Inc 2007RCON Homes Inc 2007Michael Jack LLC 2006WA Insurance 2006Anderson Construction 2005
Ten to 19 Years
Scott Berberich Construction LLC 2004First General Services of SE MN 2003Todd Eidem Construction Inc 2002Ames Construction Inc 2001Expert Insulation Inc 2001HiMEC at Home 2001Habitat for Humanity - Rochester Area 2000Home Improvement Professionals Inc 1999
25 Years amp More
Countryside Builders LLC 1989Radcliffe Homes amp Remodeling 1988Thomas Tool amp Supply 1987Kreofsky Building Supplies 1985Tile Superstore amp More 1985Barrier Free Access Inc 1984RampM Development Company 1970
NEW APPLICANTS
FAT WILLYrsquoS BAR amp GRILL
4325 Maine Ave SERochester MN 55904Phone 507- 206-4301
Contact Bill HendersonAssociate Member
RestaurantBarSponsored by
David Kane Kane amp Johnson Architects Inc
KAHLER HOSPITALITY GROUP
20 2nd Avenue SWRochester MN 55902Phone 507- 280-6200
Contact Marnie GlynnAssociate Member
HotelSponsored byNone Listed
MANUFACTURERrsquoS BANK amp TRUST
2020 2nd Street SWRochester MN 55902Phone 507- 226-8460
Contact Thomas HeepkeAssociate Member
BankSponsored by
Sue Hanson Rochester Title amp Escrow Company Inc
SAWYER CONSTRUCTION SERVICES INC9472 65th Street NE
Elgin MN 55932Phone 507-272-1740Contact Marv Sawyer
Associate MemberLawn CareTree Service
Sponsored byChristy Buchan Energy Products amp Design Inc
wwwRochesterAreaBuilderscom24 | June 2014
Put your membershipto work nowMoney-saving discounts that benefit yourbusiness your employees and your family
wwwnahborgMA
National Association of Home Builders
R
wwwRochesterAreaBuilderscom24 | June 2014
Put your membershipto work nowMoney-saving discounts that benefit yourbusiness your employees and your family
wwwnahborgMA
National Association of Home Builders
R
top related