Chalk Line November/December 2014
MAGAZINE
VOTER’S GUIDE INSIDE
INSIDE THIS ISSUE TOUR OF HOMES AWARD WINNERS GET OUT AND VOTE! 2015 BUYER’S GUIDE ADVERTISING AVAILABLE
NATIONAL REACH. LOCAL EXPERTISE.
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CONTENT FEATURE PAGE 8-9 VOTER’S GUIDE Find a list of TAHC and WAHC endorsed candidates. Cover photo: Tour of Homes Award Winning Bathroom by The Artisans Group. Photo by: Ramsay Photography
Page 4
PRESIDENT’S COLUMNGET OUT AND VOTE! Page 6
CONNECT WITH YOUR CUSTOMERS2015 BUYER’S GUIDE
13
MEMBERSHIP CONTEST STANDINGS
Page 7
MESSAGE FROM THE EXECUTIVE OFFICER Page 10
LATEST GOVERNMENT AFFAIRS ISSUES Page 12
NEW/RENEWING MEMBERS Page 14
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TOUR OF HOMES WRAP UP
BUILDER CONFIDENCE DIPS IN OCTOBER
NOVEMBER/DECEMBER 2014
Interested in sharing your expertise, opinions or comments with Chalk Line readers? Please contact Angela White at angela@omb.org or (360) 754-0912 to discuss the opportunity to write content for Chalk Line.
Looking Ahead November 4-Executive Committee/Board of Directors Meetings at Great Floors. November 4-Nothing But Networking at Great Floors. November 6-7-BIAW Board Meeting at Suncadia. November 6-Grays Harbor Chapter Meeting at the Wine Sellars in Aberdeen. November 11-OMB Office Closed in Observation of Veteran’s Day. November 18-Remodelers Council Meeting at the Olympia Master Builders Office. November 19-Lewis County Chapter Meeting at Ramblin’ Jack’s Ribeye. November 20-Coffee Connection & Member Benefits Overview location TBA. November 27 & 28-OMB Office Closed in Observation of Thankgiving.
UPCOMING EDUCATION CLASSES November 6 & 7-OSHA 10 HOUR Class at the Olympia Master Builders Office. (Call 360.754.0912 or email sally@omb.org to register) November 12-Profitable Business through Quality Practices at the Olympia Master Builders Office. (Call 360.352.7800 to register) November 13-ABC’s of Claims Management at the Olympia Master Builders Office. (Call 360.352.7800 to register) November 18-Claims Free Class at the Olympia Master Builders Office. (Call 360.352.7800 to register) November 18-Certified Signal Person Class at the Olympia Master Builders Office. (Call 360.754.0912 or email sally@omb.org to register) November 21-First Aid/CPR Class at the Olympia Master Builders Office. (Call 360.754.0912 or email sally@omb.org to register) December 9-Scheduling Class at the Olympia Master Builders Office. (Call 360.352.7800 to register)
For more details on these upcoming OMB events, go to www.omb.org.
Chalk Line • 3
FROM THE
2014 President Get out and VOTE!
W John McKinlay PRESIDENT
“The basis of our political system is the right of the people to make and to alter their constitutions of government.” -George Washington
“Nobody will ever deprive the American people of the right to vote except the American people themselves and the only way they could do this is by not voting.” -Franklin D. Roosevelt
ith Election Day fast approaching we all need to remember how important it is to exercise our right to VOTE. We also need to make sure we are encouraging our employees, coworkers, friends and families to vote. Why? Voting matters. When we don’t vote, we allow others to decide for us, without our input or consent. It is an important duty we share as citizens of this nation. It’s how we protect our interests and make change happen. And most importantly, the candidates and issues on the ballot have a direct effect on our personal lives and our abilities to do our jobs. Over the last couple of years I have had people ask me, “how did this happen,” in reference to a new regulation, a new code or a new or increased fee that has had a negative outcome for a property owner, builder or a business. My only answer is, “not taking voting seriously.” People that hold local office have a direct effect on everything from building codes to the Critical Areas Ordinance. These people have great power over the building industry and business in general. They make choices daily that affect our industry, and their leadership sets the agenda and tone for the staff you work with in your local jurisdictions. Each year, The Affordable Housing Council (TAHC) evaluates and interviews candidates for elected office to identify housing and
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business friendly candidates. The list of candidates endorsed by TAHC can be found on page 9. I realize that this may seem like an off year with no high-profile race but even in the off years your vote matters. For example, Bud Blake is a candidate running for Thurston County Commissioner against incumbent Karen Valenzuela and the last time I checked only 619 votes separated the two candidates out of the 14,923 ballots cast, and predictions are the race will be even closer in November. Mr. Blake has made a pledge to “set the conditions for small businesses to thrive here and not be forced to relocate to surrounding counties.” Having someone like Bud Blake elected would bring a different perspective to the County Commission that we haven’t had in years. This is a prime example of why you should VOTE! The Government Affairs program is and always will be a top priority for your Association. Accomplishments in this program are partly due to the ability of staff and members to work with elected officials who understand what the housing industry brings to the local economy and who actually encourage growth. Our Executive Officer, Troy Nichols, touches more on this in his column on page 7. I feel that we need to set a new, business friendly tone in Thurston County and we can do that by voting.
Chalk Line Official Publication of the Olympia Master Builders 1211 State Avenue NE, Olympia WA 98506 Phone: (360) 754-0912 www.omb.org
The Olympia Master Builders is a professional trade association representing nearly 550 member companies located in Thurston, Lewis, Grays Harbor, Mason and Pacific Counties. Our members come from all sectors of the building trades and they are committed to “building strong communities, one home at a time.” Executive Committee
President John McKinlay First Vice President Scott Nolan Treasurer Ron Deering Associate Vice President Tina Allen Second Associate Vice President Kim Asay Secretary Rusty Ruiz Immediate Past President Janine Ezzell Builder at Large Mike Auderer
Builder Directors Scott Bergford, Bob Clark, Andy Gruhn, John Kaufman, John Johnson, Adam Kugel
Associate Directors Jeff Klingberg, Holly Constantine, Heath Howerton, Jon Jones
Legal Counsel Jay Goldstein
National Directors Bob Kagy, Karen McClennen, John McKinlay
State Directors Tina Allen, Mike Auderer, Ray Bonney, Ron Deering, Tim Dickey, Erik Jensen, Bob Kagy, Harv Lillegard, Bob Love, Karen McClennen, John McKinlay, Aaron Nester, Scott Nolan, Carmen Rowe
Lewis County Chapter
President Erik Jensen First Vice President John Johnson Assoc. Vice President Becky Rieger Secretary Rick Borovec Builder Directors: Don Koidahl, Dave Danton, Associate Directors: Carmen Rowe, Jason Kunz
Qualified Signal Person Certification A Qualified Signal Person is a signal person who meets the requirements of WAC 296-155-53302.
November 19, 2014 • 1:00 to 5:00 at the OMB office. 1211 State Avenue NE, Olympia, WA 98506
$85.00 members/$100.00 non-members. Call 360-754-0912 to register. This applies to construction activities which involve cranes, derricks, and powered industrial trucks which have been configured to hoist and lower by means of a winch or hook.
A Qualified Signal Person is required when: •Point of operation is not in full view of operator. •View of direction of travel is obstructed. •Site specific safety concerns which the operator or person handling the load determines it necessary •Working near energized power lines and a dedicated spotter is used, this spotter must also be a qualified signal person Signal Person Qualification Requirements •Know and understand the type(s) of signals which will be used. •Competent in the application of the type of signals used. •Have a basic understanding of equipment operation and limitations, crane dynamics, and boom deflection.
Some truss companies are requiring a qualified signal person to be on your crew during delivery of trusses. In the event of an L&I visit to a work site where a qualified signal person is required but is not present, the general contractor, the person receiving the product, and the boom operator are all individually at risk of being fined $2,500 for the first offense, and $25,000 for the second offense. If a qualified signal person is required and there is no one on site who can provide proof of third party qualifications then boom operators could be instructed to cease operations.
Cornerstone Partners
Cornerstone Partners recognizes member companies whose financial support have made our association programs possible. Contact Amanda Cassman at amanda@omb.org or (360) 754-0912 for information on this program.
GRANITE LEVEL-$5,000 Investment
Mason County Chapter
President Aaron Nester Associate Vice President Mike Gill Secretary Bob Love
Grays Harbor Chapter
QUARTZ LEVEL-$3,000 Investment
President Harv Lillegard Associate Vice President Rusty Ruiz Secretary Rhonda Sturgeon
Association Staff
Executive Officer Troy Nichols Accountant Sally Darrow Communications DIrector Angela White Government Affairs Director Adam Frank Events Director Brianna Bedell Membership Marketing Coordinator Amanda Cassman
MARBLE LEVEL-$1,000 Investment • Chicago Title • Contractors Insurance NW, Inc. • Dickey’s Remodel & Repair • Lew Rents • MDK Construction, Inc. • Olympia Construction, Inc. • Puget Sound Energy • Scott Homes, Inc. • Sunset Insurance Agency, LLC • Umpqua Bank • Veteran’s United Home Loans of Puget Sound Chalk Line • 5
The 2015 Buyer’s Guide Will Connect You With Customers 2015 Buyer’s Guide Advertising Rates Advertisements
Cost Back cover-Full Color $1,500 (8.5” x11” includes bleed) Inside Front or Inside Back-Full Color, (8.5” x11” includes bleed)
$1,200
Full Page-Full Color, (7.5” x 10”)
$1,000
Half Page Full Color,
$700
(horizontal 7.5” x 4.75” or vertical 3.75” x 10”) Quarter Page Full Color, (horizontal 7.5” x 2.25” or vertical 3.5” x 4.75” ) Eighth Page-Full Color, (3.5 x 2.25”)
I
t’s not too late to make sure your company is prominately displayed in the 2015 OMB Printed Buyer’s Guide. The Buyer’s Guide is product and service listing all OMB members. The Guide also includes industry related articles and information for consumers. A minimum of 10,000 guides will be printed and the Guide is featured in flippable form at omb.org. An ad in the printed guide will be seen by thousands of potential customers. The Guides land in the hands of the public in many different ways, including OMB Home Shows, other public events, and placement at high traffic retail businesses. This year OMB is offering an opportunity to purchase a discounted enhanced listing on omb.org if you purchase 6 • Chalk Line
$500 $200
an ad in the printed Buyer’s Guide. An enhanced listing is prominently displayed at the top of your selected product and service categories on omb.org in the online, searchable version of the Buyer’s Guide. The enhanced listing includes your logo and a short paragraph of additional information. This is a great way to promote awards, certifications, niche markets and events. The 2015 Printed Buyer’s Guide and an enhanced listing is a great way to make sure you are connecting with your customers. Purchase your ad in the Buyer’s Guide by November 7 by contacting Amanda at amanda@omb. org or (360) 754-0912.
Are you an Olympia Master Builders member who doesn’t qualify for the Building Industry Association of Washington (BIAW) Health Insurance Program? o, If s B e M O Choic h t t l e Heacan meeds! r ne you
OMB
Health offers Choice :
• Plan s for s elf individ employee d uals • Gro betwe up plans fo r en 1-1 ,000 ebusinesses • Hea mploy lth Sav ees ings A c counts • Hea (HSA) lth Reim Arrang b ement ursement s (HRA ) • and e t o m ore qu ison e e r r pa af For an com t: ers l c p ta uild and con ster B a 12 ia M .09 mp 0.754 y l O 36
OMB is not a licensed insurance agency and cannot provide benefit details or advice on which health plan will meet our members needs the best. All insurance plans offered through the OMB Health Choice program are provided through a licensed agent.
FROM THE
EXECUTIVE OFFICER Why Electing Pro-business Candidates in November Matters The old adage is true – government is the business partner you never asked for. Don’t believe me? Take a look at these two examples of how the folks elected to local office can make a direct impact on the business climate in your local county, for better or worse.
Troy Nichols EXECUTIVE OFFICER
H
appy Election Season!
By now you’ve probably had your fill of election ads on TV, campaign flyers in your mailbox, fundraising emails on your computers, and pestering GOTV calls on your phone. I’m sure you’re thinking that November 4th can’t get here soon enough. Look, I completely understand. As someone who has worked in the political realm in the Pacific Northwest for more than two decades, often times I’ve been the one mailing those flyers or orchestrating those GOTV phone calls on behalf of legislative candidates. I’ve gone door-to-door and volunteered on congressional campaigns. I know it can be frustrating and invasive at times – but it’s also extremely important. All of that campaign activity doesn’t come cheap and it can be VERY expensive. And you know why? Because the outcome of elections in this country, whether federal, state, or even local, MATTER. That much. Think about it.
cheered last April’s announcement in press releases. Now, Thurston County landowners and builders find themselves in gopher “limbo,” as the USFWS recently announced it will not be conducting site visits between November 1 and May 31 when the gophers are hibernating. Without a site visit to determine if the gophers are present, Thurston County will not be issuing building permits in areas that contain gopher soils. This effectively shuts down any new development in south Thurston County for more than half a year.
OMB has been very successful lobbying Lewis County elected officials to avoid imposing costly impact fees on new development. Several years ago Lewis County was presented with a development proposal to create the Fully Contained Community (FCC) of Birchfield. Under state statute, creating an FCC could have triggered the Still think campaign imposition of impact season is botherfees throughout the “The next time you find some and elections ENTIRE county. yourself frustrated at don’t matter? Think yet another political TV again. Instead of arbitrarily commercial interruptimposing these fees, The next time you OMB staff and Lewis ing the football game find yourself frusCounty Chapter memyou’re watching, or trated at yet another bers were able to work you answer the door to political TV commerwith county officials in crafting a proposal that yet another a volunteer cial interrupting the passing out campaign football game you’re limits the fees to the FCC itself, and avoids literature, channel that watching, or you answer the door to yet adding thousands of frustration into action.“ another a volunteer dollars to the cost of passing out camnew construction projpaign literature, channel that frustraects county-wide. tion into action. Tell your family and Contrast that business friendly friends to vote for the candidate of scenario with the listing of the Mayour choice. Make it clear to your emzama pocket gopher as “threatened” ployees and business partners what’s by the US Fish & Wildlife Service at stake if your candidate loses. (USFWS) under the Endangered SpeThe other guys want their candidate cies Act. Thurston County’s elected to win very badly. You need to want commissioners not only pressed yours to win even more. for and supported the listing, but
Chalk Line • 7
D E V O R P AP
ELECT 20
These candidates have been endorsed by The Affordable Housing Council (TAHC), O Housing Council (WAHC), the Building Industry Association of Washington’s Political didates who understand and value what the home building industry and small busine
Candidates endorsed in
KEY RACES STATE SENATOR 35th DISTRICT TIM SHELDON (D)
STATE REPRESENTATIVE 35th DISTRICT POS. 2 DREW MACEWEN (R)
STATE REP. CANDID 35th DISTRICT POS DAN GRIFFEY (R
Senator Sheldon has served his Mason County constituents with distinction for many years. He’s a pro-business Democrat who demonstrates his commitment through his voting record, not platitudes and empty promises. Senator Sheldon’s reelection is central to maintaining the current pro-builder and pro-taxpayer majority in the Washington State Senate.
Representative MacEwen is a small business owner from Mason County who has quickly earned a reputation in Olympia as a thoughtful, hardworking legislator. With so few lawmakers who have real-world business experience serving in the Legislature, it is crucial that we send Rep. MacEwen back to Olympia for a second term.
Dan Griffey has been local firefighter in Mas County for over 27 ye He’s running against a incumbent who claim be pro-business, but h anti-business and anti-taxpayer voting rec say otherwise. Electin Dan Griffey to the stat Legislature is an impo ant step toward finally installing a pro-builde and pro-taxpayer maj in the Washington Sta House of Representat
TIONS 014
Tuesday, November 4, 2014
OMB’s Political Action Committee and/or the Washington Affordable l Action Committee. Both TAHC and WAHC focus endorsements on caness bring to our local and state economy.
Complete List of Endorsed Candidates in OMB’s Five County Area The Affordable Housing Council (TAHC), has endorsed the following candidates. THURSTON COUNTY ASSESSOR CAROL PERSON THURSTON COUNTY PUD COMMISSIONER DISTRICT 2 RUSS OLSEN THURSTON COUNTY PUD COMMISSIONER DISTRICT 3 DENNIS PULSIPHER THURSTON COUNTY COMMISSIONER DISTRICT 3 BUD BLAKE
DATE S. 1 R)
STATE REPRESENTATIVE 2nd DISTRICT POS. 2 J.T. WILCOX (R)
COMMISSIONER CANDIDATE THURSTON COUNTY BUD BLAKE (I)
a son ears. an ms to her cord ng te orty er jority ate tives.
Representative Wilcox, formerly of Wilcox Family Farms along the Nisqually River, has a demonstrated understanding and commitment to pro-builder positions in the state Legislature. As the current House Republican Floor Leader, his reelection is vital to keeping our issues front and center during the next legislative session.
Bud Blake is a military veteran with private sector experience. He’s running against an incumbent who is decidedly anti-builder and anti-business. A victory in this race is a critical first step in fixing the business climate in Thurston County and allowing local home builders and business owners to prosper.
Washington Affordable Housing Council (WAHC), has endorsed the following candidates. 2nd DISTRICT HOUSE POS. 1 GRAHAM HUNT (R) POS. 2 J.T. WILCOX (R) 19th DISTRICT HOUSE POS. 1 DEAN TAKKO (D) POS. 2 BRIAN BLAKE (D) 20th DISTRICT HOUSE POS. 1 RICHARD DEBOLT (R) POS. 2 ED ORCUTT (R) 35th DISTRICT SENATE TIM SHELDON (D HOUSE POS. 1 DAN GRIFFEY (R) POS. 2 DREW MACEWEN (R)
Credit to the House of Representatives for the headshots of MacEwen,Wilcox, and Sheldon
The Latest Government Affairs Highlights Olympia Master Builders (OMB) is currently working on and/or monitoring many issues related to the building industry. Here are a few recent highlights:
City of Olympia
Thurston County
Comprehensive Plan Update – The Olympia
Permitting With Gophers – OMB participated in a
City Council continues its work on the Comprehensive Plan Update (Comp Plan). Recently, the council met in a work session to discuss public comments related to the prescriptive language found in the draft Comp Plan. The discussion was surprisingly encouraging, with many members of the council concluding that the Comp Plan should be a broad policy document, and not a prescriptive bible of “thou shalts” and “thou shalt nots.” Mayor Stephen Buxbaum argued (and many council members agreed) that a compelling case must be made each time a particular action is required of an individual citizen or business, adding that the Comp Plan is a space for broad and flexible policy direction, and not for specific, mandatory regulations. OMB will continue to monitor how this discussion plays out as the council moves toward adoption of the Comp Plan.
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meeting with Thurston County legal counsel in October. The County has announced that site visits with US Fish & Wildlife (USFWS) will not occur between November 1 and May 31. This means that projects within gopher soils that have not been visited by USFWS will not move forward until site visits resume in late Spring 2015. County officials, who are unwilling to assume the slight risk of being held liable for any takings of gophers, will not issue a permit if gophers are found on a property—perhaps even until the Habitat Conservation Plan is in place, which could be several years from now. This means, however, that the county is willing to assume the risk of being sued for a regulatory taking by a property owner whose permit has been denied or delayed. Participants in the October meeting urged county planners to work to create some sort of pathway that could allow some permitting to continue during the seven long months in which site visits will not be done. County planners and legal counsel said that they have begun considering options for such a pathway, and will continue to do so.
Lewis County Fully Contained Community Impact Fees – OMB
met with Lewis County officials in September to work out the details of the county’s plan to allow the Birchfield Fully Contained Community (FCC) to move forward. Under state law, the county is required to impose impact fees in order to approve a FCC. Several years ago, OMB successfully lobbied the county to avoid imposing impact fees throughout the county, and the county has instead worked out a plan to limit the impact fees to the FCC itself. OMB has examined the draft ordinance, and was given the opportunity to clarify language in the ordinance relating to the collection of school impact fees. OMB is grateful to Lewis County staff for their hard work and collaborative efforts on this issue, and for their willingness to address OMB’s concerns. The county commissioners hope to consider the ordinance before the end of the year.
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10 • Chalk Line
To get more involved in the OMB Government Affairs Program, contact Adam Frank at adam@omb.org or (360) 754-0912.
OMB Celebrates Tour of Homes Award Winners!
Top left: Benchmark Communities was awarded Judges’ Choice Best of Show. Photo courtesy of Benchmark Communities. Bottom left: Loretta Law of Benchmark Communities accepts the Award from OMB President John McKinlay of Olympia Overhead Doors. Top right: The Artisans Group was awarded Best of Show People’s Choice. Photo courtesy of The Artisans Group. Middle right: The Artisans Group staff and homeowners accept their award from McKinlay.
Thank you sponsors: Main Event: Sunset Air & Olympia Federal Savings Silver: Pro-Build Bronze: South Sound Solar Media: The Olympian & MIXX 96.1 KXXO
PEOPLE’S CHOICE Best of Show Best Remodel Best Curb Appeal Best Kitchen Best Master Bath Best Floor Plan JUDGES’ CHOICE
The Artisans Group Lifespan Construction Hansen Construction Group Lifespan Construction The Artisans Group The Artisans Group
Best of Show Best Remodel Best Curb Appeal Best Kitchen Best Master Bath Best Floor Plan
Benchmark Communities Trillium Construction J.Kerzie Homes LLC Lifespan Construction The Artisans Group The Artisans Group The 2014 Tour of Homes Awards winners. Chalk Line • 11
Welcome New Members Thank You Renewing Members September 2014 September-October 2014 DO BUSINESS WITH A MEMBER TODAY! Shipp Construction, Inc. Ken Shipp 262 Larmon Rd Ethel, WA 98542 (360) 262-9260 shipp.cindymidill@yahoo.com Sponsor: Merrilee DeForest
Backflo Pro’s, Inc Scott Mayfeild 855 trosper rd sw #108-230 Tumwater, WA 98512 (360) 951-6130 office@backflopros.com Sponsor: Tina Allen Edward Jones Ben Lamb 1401 4th ave E. Suite 201 Olympia, WA 98506 (360) 705-9054 ben.lamb@edwardjones.com Sponsor: John Erwin, CAPS, CGR, CGP
The Supply Guy David Sotherland PO BOX 8007 Lacey, WA 98509 253-531-8600 thesupplyguy26@hotmail.com Sponsor: Janine Ezzell
DO BUSINESS WITH A MEMBER TODAY! 25+ Years
5-9 Years
First American Title and Escrow Kell-Chuck Glass Smithco Homebuilders Puget Sound Energy
Capital City Stove & Grill Bayshore Construction Frontstream Payments Allied Electric Service, Inc.
20-15 Years
Pacific Air Heating & Air Conditioning, Inc. John Easter Roofing, Inc. Exodus Engineering, Inc. Radcliff Construction, Inc. Bliss & Skeen CPA’s Lossing Construction Thurston County Chamber of Commerce Evergreen State Builders
Doors Unlimited, Inc. Kaufman Construction & Development, Inc. Holroyd Company, Inc.
15-19 Years Floor Technology, Inc. Lacey Door & Millwork Kinney’s, Inc. Andrew Spear Construction, LLC Olympic Telephone Scott Homes, Inc.
10-14 Years
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2-4 Years
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Wells Fargo Advisors, LLC Willapa Logging Co., Inc. Capitol Lumber, Inc. Dan Sallee Construction, LLC Weatherguard Roofing, Inc. Express Employment Professionals Heritage Restoration, Inc. Goebel Septic Tank Service, Inc. Town & Country Roofing, Inc. Sunset Chevrolet Olympia Supply Co. Dennis Company Hung Right Doors, LLC Coastal Construction Group, Inc.
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For more info about BiiP— scan this code. How YOU can become a BiiP agent— scan this code. BIAW is not a licensed insurance broker or agent. In referring the user to an insurance company or licensed agent, BIAW is not selling insurance or providing coverage advice or counsel relative to coverage. BIAW does not solicit, take, or process insurance applications, nor does it negotiate or execute insurance contracts. For policy questions, or to obtain insurance, please contact a licensed member agent or broker. BIAW is paid an advertising fee by the participating insurers.
12 • Chalk Line
Bob Kagy
e Bobk@printnw.net p 360.456.4545
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Photos below are courtesy of the Residence Inn® Marriot Portland.
Contest Standings Congrats! Karen McClennen, The Olympian Angel Anderson, AFLAC John McKinlay, Olympia Overhead Doors Rusty Ruiz, Hung Right Doors, LLC Kim Asay, Umpqua Bank Doug Karman, FrontStream Payments Paul Muldoon, Wells Fargo Advisors Carmen Rowe, Jessica Jensen Law PS Debbi Boyd, Altman Insurance Agency Tina Allen, Great Floors
9 5 5 5 4 4 3 3 3 3
One more member needed: Erik Jensen, Jensen Hall Construction, Inc. 2 Scott Bergford, Scott Homes 2 Mike Auderer, Olympia Construction, Inc. 2 Two more members needed: Bob Kagy, Print NW Rob Rice, Rob Rice Homes Harv Lillegard, Lillegard Construction Jay Goldstein, J.A. Goldstein Law Office, PLLC Scott Nolan, Four Leaf Carpet Cleaning
1 1 1 1 1
Mark Kitabayashi, Windermere Real Estate/Puyallup, Inc. 1 Tim Dickey, Dickey’s Remodel & Repair 1 Steve Waltemate, SAW Construction Co., Inc. 1 Roger Reeves 1 Carmen Smith, R L Smith Logging, Inc. 1 Chris Medrzycki, J.A. Goldstein Law Office, PLLC 1 Ross Erwin, Cabinets By Trivonna 1 Janine Ezzell, Chicago Title 1 Merrilee DeForest, Strategy Insurance Brokers, LLC 1 John Erwin, John Erwin Remodeling, Inc. 1
Chalk Line • 13
Builder Confidence Dips in October
Angela White Communications Director
N
ew single-family builder confidence in the housing market dropped five points nationally to a 54 in October, but confidence is still good according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). Local builders mostly agree with the statistic. “After the HMI posted a nine-year high in September, it’s not surprising to see the number drop in October,” said NAHB Chief Economist David Crowe. “However, historically low mortgage interest rates, steady job gains, and significant pent-up demand all point to continued growth of the housing market.” Kellen Mangan of High Definition Homes shared that he has seen a slight improvement in the market as a whole but feels an absence of the move up buyer in the Olympia area in the $300k-450k price range. He contributes this to a lack of equity in current homes. He stated that the higher end $500k plus homes have kept his business going over the last year. Mangan also showed concern about the affordability of building homes in the mid-$200k price range in the near future. “Builders that are having any
14 • Chalk Line
success building in the mid-$200k range Andy Gruhn of Northwest Family have been building on devalued properHomes, Inc. is hoping for a consistent ties that were purchased for less than the next six months. “I am looking for cost to create,” stated Mangan. “Going business to stabilize. Six months with forward with the land values a bit higher, no highs and no lows would make me cost of materials seeing a significant happy,” Gruhn said. increase, and permits, impact fees and government regulations accounting for Local builder Dana Clark of Home 10 percent of your total Resource Company, “Going forward with the Inc. said they saw a costs it will be almost impossible to build land values a bit higher, shift in 2011 from homes in the mid-$200k new, custom cost of materials seeing building range.” single-family homes to a significant increase, their bread and butter Mike Buehler of of today, small remodel and permits, impact Buehler Homes, LLC jobs. “We have eight fees and government of Olympia said he long term employees regulations accounting that we think of as is staying busy. “My confidence is up from a for 10 percent of your partners,” stated Clark. year ago but not huge- total costs it will be “My husband Bob and ly,” explained Buehler. I have been able to almost impossible to “Things are picking up keep busy by working and I am being contact- build homes in the ten times harder than ed more by customers we ever have.” Home mid-$200k range.” wanting to build new Resource Company, Inc., -Kellen Mangan homes but I think the hasn’t built a new home High Definition Homes surge could be due to this year but they are the news of impending starting some quality price increases in the housing market. I remodel projects. think people may be trying to beat the increase.” NAHB has been surveying builder members seasonally for 30 years on their The market locally is better but not perceptions on current single-family great, agrees Mike Auderer of Olympia home sales and expected sales for the Construction, Inc. “Builders aren’t seeing next six months. The HMI survey also has a ton of action in Thurston County,” Audbuilders rate prospective buyer traffic erer stated. “At Olympia Construction we from high to very high, average or law to are building a few custom, single-family very low. According to NAHB, any numhomes right now, but lending is still tight ber over 50 indicates more builders view which makes it harder for potential buythe market as good than poor. ers to finance their dream homes.”
Chalk Line • 15
PRSRT STD U.S. POSTAGE
PAID
OLYMPIA, WA PERMIT #159
1211 STATE AVE. NE OLYMPIA, WA 98506 $1.25 per copy 360-754-0912 800-456-6473 www.omb.org
Don’t trash it - donate it! Habitat for Humanity now accepts donations at the Thurston County Waste and Recovery Center at 2420 Hogum Bay Road NE in Lacey. Your donation supports Habitat’s mission, keeps valuable resources out of the landfill, saves on trash disposal costs, and is tax deductible.
For information, call (360) 956-3456 or visit ThurstonSolidWaste.org/greenbuilding