Builders' Digest | Jul-Sep 2012

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table of contents Special Section: 2012 Legislative Review {center section)

Legislative ‘12 Review

Executive Board Profile {pg 14} 4 Executive Director Letter

16 PROFILE: Executive Board

30 MN Green Path: One Year In

Kerry Mulcrone

6 A Word From Our President 8 News

32 Remodeling Q&A 18 PROFILE: Executive Board

36 Welcome New Members

Shawn Nelson

10 Events Calendar

20 Top 25 Builders

37 Member Spikelight

12 BATC’s New Logo

26 Q&A with BATC’s Board of Directors

38 Parade of Homes Update

28 BATC 2012 Partners

42 Foundation News

14 PROFILE: Executive Board Pamela Belz

52 Member News SPECIAL SECTION: Legislative Review

Advertising Directory Air Mechanical, Inc. Andersen Windows ..................................................2, 3 Brush Masters ...............................................................5 The Builders Group......................................................34 CenterPoint Energy......................................................13 Central Marble Products, Inc......................................17 Erosion Works .............................................................53 Hedberg Landscape & Masonry Supplies ................33 IDC-Automatic.............................................................43 In-Focus Systems...........................................................9 Installed Building Solutions, LLC................................15 Lampert Lumber ..........................................................47 Lyman Lumber Co........................................................31 Marvin Windows & Doors............................................7 Menards- Apple Valley...............................................11 Midwest Home Magazine..........................................39 Minnesota Department of Health .............................21 Molin Concrete Products Company...........................39 Orion Home Systems ..................................................11

NEWS EVERYDAY ON THE BLOG: WWW.BATC.ORG/BLOG

Polar Cheverolet................................Inside Front Cover ProBuild........................................................................19 Sam’s Lawn & Landscaping, Inc. ...............................51 Schwieters Companies, Inc..................................17, 51 Shaw/Stewart Lumber Co..........................................49 Solar Midwest, Inc./Solatube....................................51 Southview Design.......................................................39 Stein Insurance Agency..............................................15 SuperAmerica Fleet ....................................................54 Synergy Products, LLC..................................Back Cover Tremco Barrier Solutions ............................................35 Trimpac, Inc..................................................................49 Warners’ Stellian Co., Inc.............................................1 Wells Fargo Home Mortgage.....................................45 Woodmax, LLC ..................................Inside Back Cover

FRESH NEWS ON THE BLOG. WWW.BATC.ORG/BLOG

JULY/SEPTEMBER 2012

BUILDERS’ DIGEST

3

|| EXECUTIVE

DIRECTOR LETTER

BATC’S WORKERS COMP PROGRAM UPDATE

David Siegel BATC Executive Director

If you are interested in the TBG program: A number of member insurance companies at BATC carry the product.

Contact Dennis Medo, dmedo@tbg.com or 651-389-1043 for a list of agents

4

BUILDERS’ DIGEST

The Builders Group (TBG), BATC’s self-insured workers compensation insurance program, held its annual meeting May 24th at its Eagan headquarters. During the meeting, CEO Stu Thompson shared insights into the challenges our industry has faced over the past several years, and was pleased to report that they’re seeing gradually improving health. Thompson reported that in 2011, industry payrolls of participating members increased an impressive 18 percent. In addition, reported premiums increased 17 percent, a positive sign for TBG. In sharing more good news, Thompson said new members grew by 89, an increase of 14 percent. That is welcome news after two very difficult years in 2009 and 2010.

During recessionary times, claims generally rise, and such was the case during the dark years of 2009 and 2010. Payrolls and premiums decreased by as much as 40 percent during these years, while claim counts and severity increased. One major issue was the lack of light-duty jobs to return injured workers to the job. “The 2009 and 2010 years will likely go down as some of the worst ever due to the economic conditions during those years,” Thompson wrote in his financial report to the Board. And making the situation worse, even as claims were rising, investment income was dropping substantially.

In sharing more positive news about 2011, Thompson

JULY/SEPTEMBER 2012

reported that incurred losses decreased 5.6 percent, and claim severity decreased 18.8 percent. “So far, we have survived the worst economic slowdown since the Great Depression without having to assess our members,” said Thompson, adding, “that has not been the case with construction funds in other states.”

TBG was formed in 1997 by BATC, BAM and The Builders Exchanges of St. Paul and Minneapolis. Designed to offer stable, long-term workers’ compensation insurance for the construction industry of Minnesota to members of these associations. TBG has a renewal rate of 97 percent, which speaks loudly to its success. In part that’s because its board of directors is comprised of leading individuals from our industry.

BATC Member Carol Nelson, New Spaces, serves as TBG’s Board chair. BATC Past President Lowell Pratt was reelected on May 24th to the TBG Board representing BATC. Pratt has served in this role since 2009 and does an excellent job bringing the issues of BATC members to TBG for consideration. TBG is known for its excellent service and aggressive claims handling (it has a higher ratio of claims representatives to cases than other insurance programs). It’s also widely touted for its pay-as-you-go premium opportunity (which virtually eliminates dreaded end-of-year audits).

WE HID IT. A nail is hidden somewhere in every issue of the Builders’ Digest, including the one you’re holding right now.

It could be anywhere – tucked into a photo or stuck in a drawing… in a margin… in the text body… even used as an exclamation point at the end of a headline. It resembles a real-life nail and looks something like this…

FIND THIS The nail above is just an example – it is not the real one hidden for this issue’s contest. We’ve concealed the real one elsewhere in this issue, and it could be a different color or size. Keep in mind, the Spike Club logo’s nail does not “Wahoo! Page 23! I just count. love this game!” said When Tarry Logsdon with memRBC Tile & Stone bers of the April-June 2012 issue of the find the Builders’ Digest nail, they can email or fax a note to the Builders Association of the Twin Cities, telling what page it’s on. Participants will be entered into a drawing to win a business-card size ad in this publication or a set of member labels (non-electronic version).

All other entries receive $20 in BATC Bucks. Entries must be received by August 15, 2012.

Found It.

Found the nail? Email the page number of your guess to casey@batc.org.

Or, mail or fax to: BATC Nail Hunt, 2960 Centre Pointe Dr., Roseville, MN 55113 Fax: 651.697.7575.

NEWS EVERYDAY ON THE BLOG: WWW.BATC.ORG/BLOG

|| A

WORD FROM OUR PRESIDENT Executive Director David Siegel

HALF-TIME REPORT

Curt Christensen Lee Lyn Construction, LLC

BATC’s recently completed branding study revealed a strong BATC brand personality: rock solid, influential, respected, trusted, focused and action-oriented. Our Board of Directors, committees, councils and staff are committed to embracing and living that brand personality as we move forward to serve your needs.

The next step was to ensure that our graphic identity presented BATC and all of our other brands in the best way possible. We asked our BATC staff marketing and design team to go to work. They needed to combine elements that have earned recognition in the market already, such as our red color, house icon and Parade of Homes type font. They also were charged with bringing all of BATC’s various products and faces into a cohesive, understandable family of logos.

The result is a strong, rock-solid interpretation of our brands.

Take a look on page 12 and let me know what you think. Our roll-out of the new logos will take place over the next several 6

BUILDERS’ DIGEST

months as we use up current printed materials.

I also hope you’ll proudly display the new BATC logo on your literature, on your website (please link to BATC) and in your window (your own window cling should have arrived with your mailed 2012/2013 Membership Directory). We even have one member who asked for extra window clings to display in his trucks, saying “It gives me more credibility.” If you need to download the logo for your own materials, you can get it at the association website, batc.org Along with the revitalizing of our mission, vision and brand position, our seven-year-old Parade of Homes website needed an update too. We are hard at work on the website redesign and the excitement is building.

With our new site, we’ll have major improvements in our functionality. For example, members will be able to enter their homes online, placing their location directly onto the online maps (our goal is for this to be live in November). The new site will have its own integrated mobile version to ensure we’re positioned to serve the growing use of smart phones and tablets.

And, it will offer many enhancements that builders and remodelers can take advantage of to promote their companies to our site visitors.

In my last column, I mentioned Housing First, our independent expenditure fund (Super PAC) for legislative candidates. We’ve already had

JULY/SEPTEMBER 2012

several members commit dollars to the fund, and our BATC board did as well. We will have a substantial war chest to make independent expenditures on behalf of candidates who support housing before this fall’s election.

I’d love to see you all attend our first Housing First fundraiser on July 17 at Bridgewater in downtown Minneapolis. Details can be found on our website at batc.org.

Senate Majority Leader Dave Senjem is the featured speaker.

Housing First is just one part of the wide advocacy program that BATC pursues. Despite many successes, we know our government affairs program could be even better with more resources. To that end, our Board of Directors has approved a Dues Task Force to consider ways to increase BATC’s capacity to serve you. Watch for notices for three town halls that BATC will be hosting to gather feedback from members. We strongly encourage you to attend as we share some ideas about strengthening our ability to provide benefit to you.

Editor & Director of Marketing Wendy Danks Publishing Manager Dawnita Parmely Graphics Coordinator Casey Hafner Accounting Manager Ron DeCoux Administrative Assistant Heather Litchy Administrative Assistant/Publishing Linda Jacobson Advertising Sales Kori Meewes Brad Meewes BATC Foundation Executive Director Jan Berg Communications Coordinator Katy Ervin Director of Administrative Services Maxine Miller EXECUTIVE BOARD President Curt Christensen Lee Lyn Construction LLC Builder Vice President Pamela Belz Senior Housing Partners Associate Vice President John Zirbes Lyman Lumber Past Associate Vice President Jon Coty, Lampert Lumber Co. Secretary Kerry Mulcrone Kerry & Co. Treasurer Shawn Nelson New Spaces Immeditate Past President Rich Riemersma Imperial Homes, Inc. Past President Council Representative Rick Kot R.A. Kot Homes, Inc.

Director of Public Policy & MN Green Path Executive Director James Vagle Education Coordinator Beth Graham Marketing & Events Manager Nicole Coon Membership Director Deb Earl Public Policy Assistant Mary Schweich Receptionist Dawn Marka

BOARD OF DIRECTORS BATC RemodelersSM Bob Michels, Bob Michels Construction, Inc. Large Volume Builders Chris Contreras Ryland Homes Membership Pattie Martin Glowing Hearth & Home Parade of Homes Paul Donnay Donnay Homes, Inc. Public Policy Jason McCarty Westwood Professional Services, Inc. Small Volume Builders Larry Cramer, L. Cramer Designers & Builders National Directors Kathe Ostrom C.N. Ostrom & Son At-Large Member Marv McDaris Pulte Homes of MN At-Large Member Todd Polifka Brush Masters

There’s no lull in the action at BATC. Change is a constant these days, but with our branding strategy, we know what to change, and what core values can never be compromised. Halfway through my term as President, I can safely say BATC continues to drive hard to serve you most effectively.

The BUILDERS’ DIGEST magazine is the official publication of the Builders Association of the Twin Cities (BATC). The BUILDERS’ DIGEST is published and distributed four times per year to its members and others associated with the building industry. Neither the advertisers, nor the BATC, will be responsible or liable for misinformation, misprints, typographical errors, etc., herein contained. For advertising rates, resource file or address change information, contact the BATC. Suggestions, ideas and letters are welcome. If circumstances require, the BATC reserves the right to increase or decrease the number of BUILDERS’ DIGEST issues published on an annual basis.

Builders Association of the Twin Cities (BATC) 2960 Centre Pointe Drive Roseville, MN 55113-1182 Phone: 651-697-1954 • batc.org Fax: 651-697-7599 • paradeofhomes.org

Visit your local Marvin dealer today for more information and to discuss solutions for your next project.

M A RV I N D E S I G N G A L L E RY

by Shaw/Stewart 645 Johnson St. NE Minneapolis 612-331-3128 MDGbySS.com

Arrow Building Centers 14 Locations Minnesota and Wisconsin 651-439-3138 ABC-CLC.com

Automated Building ComponentsMillwork Division Chanhassen 952-937-9060 ABCMillwork.com

Custom Millwork, Inc. 2298 N 2nd St. North Saint Paul 651-770-2356 CustomMillworkInc.com

Fullerton-The Builder’s Choice Ellsworth - 715-273-5032 Glencoe - 320-864-5103 Osceola - 715-294-2000 Watertown - 952-955-2237 FullertonLBR.com

Whether it’s remodeling or replacement, Marvin® has a solution. The broadest range of products combined with the most energy efficient options available means there’s no better partner for exceeding your clients’ needs. It’s all part of four generations of innovation and craftsmanship backed by an unwavering commitment to service and support from local retailers. Get a closer look at our extraordinary range of replacement and remodeling options with our new, updated catalog. Only at pros.myMarvin.com/catalog

Lampert Lumber Apple Valley - Lake Elmo North Branch – Rockford Northfield – St Croix Falls 651-695-3600 LampertLumber.com

Scherer Bros. Lumber Co. Arden Hills Hopkins Shakopee 952-938-2741 SchererBros.com

©201 2 Marvin Windows and Doors. All rights reserved. ®Registered trademark of Marvin Windows and Doors.

ENERGY STAR and the ENERGY STAR certification mark are registered U.S. marks.

Spring Lake Park Lumber 8329 Central Ave. NE Minneapolis 763-784-3062 SLPLumber.com

|| NEWS

BAM is proud to announce its newest members-only benefit - a general liability insurance solution that offers not only good insurance, but the right insurance for each builder,

Larry Larson and Mike Hoppe

plus a special risk management program designed for broader coverage with the side benefit of very competitive pricing.

Corporate Four has been involved with the builders association for years and offers a comprehensive program for the Minnesota residential construction industry specifically designed to increase the insurability of association members.

Their program can lower your cost for insurance while better protecting your assets.

BAM is excited to offer Corporate Four to its members and we encourage you to give Mike Hoppe or Larry Larson a call see if this solution will work for you.

For more information, contact Mike or Larry at 952-893-9218 or visit www.corporatefour.com

8

BUILDERS’ DIGEST

Focusing on BATC’s Board Room We want to send out a big thank you to In-Focus Systems for putting our board room in focus! Dennis, Brett and the gang sponsored an upgrade of the audio/video capabilities in our Board Room. No more fuzzy pictures leaking off both side of the screen, no more cords snaking across the floor, no more temperamental projector choosing which laptops to ignore.

Thanks to In-Focus, which put together the perfect A/V package for us, now you’ll see crisp, sharp images that fit the screen, you’ll see integrated video, and with our wireless keyboard and mouse, the big old orange cord has moved on to a better life in the warehouse. As an added bonus, In-Focus helped set up our foyer TV so now you can catch upcoming events and other BATC news as you enter the building.

In-Focus Systems has been a BATC member since 2006 and in business since 2001. You’ve seen

Brett and Dennis at our networking events. In-Focus was a Royalty sponsor at last winter’s Minnesota Builders Show, Dennis Galligan serves on the Associates Committee and Brett Remme currently serves on both the Parade of Homes and Awards committees. The full-service company brings its expertise in electronics and new technology to homeowners and commercial businesses as well as BATC’s builders

and remodelers. They match their clients' needs with the latest in technology, from televisions to security, central vacs to smart control systems.

Thanks again to everyone at InFocus Systems. And next time you’re in the Board Room, getting treated to state-of-the-art presentations, grab a candy from our new In-Focus crystal candy dish. Besides doing great A/V, they also have exceptional taste in table ware.

IBS Free Expo Pass

Toot-Toot...

You can’t afford to miss International Builders Show (IBS) 2013 as the world’s largest annual light construction show returns to the glittering lights of Las Vegas, January 22-24.

If you’re involved in the home building industry, IBS has

We have to toot our own horn for a second, the Parade of Homes Remodelers Showcase® was honored as one of MN’s Best by the Star Tribune...

everything you need to create and build on opportunity.

Want to attend for FREE? Good news! NAHB members can register for a FREE EXPO PASS in September. See more than 900 building industry exhibitors spread over 400,000+ net square feet at no cost! Plus, ALL spouse registrations (regardless of membership) are also free in September!

Registration opens September 4 at buildersshow.com.

Don’t miss your one chance to get a free expo pass – make sure you register by September 30!

Kot Recieves Life Director Honor Rick Kot, R.A. Kot Homes, Past Presidents' Advisory Council Representative on our Executive Board, was named Life Director of the National Association of Home Builders. Rick has been a huge advocate for BATC and the industry since he started his homebuilding firm in 1998. He has served on multiple committees at BATC, served on the Board of Directors and was elected President in 2004. He currently serves as the Builder Vice President at the Builders Association of Minnesota.

JULY/SEPTEMBER 2012

Screen shot taken from http://www.startribune.com/lifestyle/bestofmn/149685145.html

BAM Announces Endorsement of Corporate Four Insurance

NEWS EVERYDAY ON THE BLOG: WWW.BATC.ORG/BLOG

|| EVENTS

COMING AUG.

UP

MN Exteriors Showroom Mixer August 2, 2012 Minnesota Exteriors, Inc. Join us and other BATC members at Minnesota Exteriors Showroom in Osseo where they will showcase products like siding, windows, roofing, doors, gutters and more!

Refreshments will be served.

Register at www.batc.org

JULY Boat Cruise on Lake Minnetonka hosted by BATC RemodelersSM Council July 12, 2012 Lake Minnetonka You don’t have to be a remodeler to join us as we sail the lake, dine and network.

Register at www.batc.org

Woodland Hill Winery Wine Tasting July 18, 2012 Woodland Hill Winery What goes better together than sampling great wines while networking with your peers? BATC's Young Professionals Committee invites you to an evening of fine wines and spirits at Woodland Hill Winery.

Register at www.batc.org

Golf Tournament at Prestwick GC August 7, 2012 Prestwick Golf Course Tee up for a great day at the links.

Register at www.batc.org

SMC Mocha Meeting August 8, 2012 Peace Coffee Don't miss this Mocha Meeting.

Network with your creative and knowledgeable peers in a roundtable format and share ideas on what’s working, what’s not and what’s hot.

Register at www.batc.org

SEPT.

OCT.

Parade of Homes® September 8-30, 2012

Awards of Excellence Gala

View more information at www.paradeofhomes.org

October 13, 2012 Marriott Minneapolis SW

Professional Women in Building Council Luncheon September 11, 2012 BATC Seminar Room Join BATC’s female movers and shakers!

Register at www.batc.org

BATC Remodelers Round Table September 18, 2012 BATC Seminar Room Get together with other remodelers to share your thoughts, concerns and ideas. BATC Remodelers Round Table discussions are designed to bring this important niche together to learn and grow.

Register at www.batc.org

October 18, 2012 BATC Seminar Room Marketing to the fastest growing demographic segment? Then you need to be here!

Register at www.batc.org

Get Googled October 23, 2012 BATC Seminar Room We’re bringing Ben from Google back for several new seminars.

Don’t miss it!

Register at www.batc.org

Past Directors Dinner Chili Cook-Off Mixer

October 25, 2012

September 18, 2012 BATC Seminar Room

Meet up with BATC past & present leaders.

Register at www.batc.org

Get your spicy on! Cook or just eat.

Register at www.batc.org

August 23 - September 3, 2012 MN State Fair Grounds

Member Orientation

Developers Council Luncheon

September 19, 2012 BATC Board Room

October 29, 2012 BATC Seminar Room

Whether you are a new member or have been around for 20+ years Come check out what BATC is all about!

Register at www.batc.org

Calling all land developers!

Register at www.batc.org

We’ll be handing out Guidebooks while we feast on fair food! Join us at our booth. Look for details online by mid-summer.

Parade of Homes Remodelers Showcase® September 28-30, 2012

See batc.org for details

BUILDERS’ DIGEST

50+ Housing Council Luncheon

Parade of Homes® Booth at the State Fair

We’ve got a sweet summer of events planned.

10

The night BATC’s best come out and shine.

Register at www.batc.org

JULY/SEPTEMBER 2012

View more information at www.paradeofhomes.org

find it all at www.batc.org

NEWS EVERYDAY ON THE BLOG: WWW.BATC.ORG/BLOG

Your Dream.

Our Details.

NOV.

DEC.

Edsel Charles’ Forecast

Professional Women in Building Council Luncheon

November 8, 2012 BATC Seminar Room He’s back with new market graphics data!

Register at www.batc.org

Design Charrette November 8, 2012 BATC Seminar Room Get expert advice as you speed date with top BATC designers.

Register at www.batc.org

Dinner Meeting / BATC Buck Auction / 2013 Board Announced November 13, 2012 BATC Seminar Room Spend all those bucks on fabulous stuff!

Register at www.batc.org

Parade of Homes / Remodelers Showcase® Entry Deadline Day

December 4, 2012 BATC Seminar Room Girl Power is our middle name.

Join us.

Register at www.batc.org

BATC RemodelersSM Council Holiday Lunch December 5, 2012 BATC Seminar Room Ring in the holidays with us.

Register at www.batc.org

Holiday Food Drive Member Mixer December 6, 2012 BATC Seminar Room

Photo courtesy of Classic Homes

Trusted, reliable, unconditional customer satisfaction from Orion Home Systems. It’s enough to make you hurry home.

Photo courtesy of Denali Homes

Call us at 651.994.0666 to arrange your obligation free consulation today.

Photo courtesy of Denali Homes

www.orionhomesystems.com

Bring non-perishable food to make someone else’s holiday a bit brighter.

Register at www.batc.org

November 14, 2012 BATC Office View more info at www.batc.org

Be in the know, you know.

Member Orientation November 29, 2012 BATC Board Room Whether you are a new member or have been around for 20+ years Come check out what BATC is all about!

View more info at www.batc.org

50+ Housing Council Luncheon November 29, 2012 BATC Seminar Room You don’t have to be an old fogie to get a lot out of this!

Register at www.batc.org

We Love to Text...

Are you always on the go-go and would love a quick last minute text to remind you of upcoming BATC events?

We can do that! To make sure your’re signed up, simply text, “BATC” to 90210.

That’s it.

NEWS EVERYDAY ON THE BLOG: WWW.BATC.ORG/BLOG

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JULY/SEPTEMBER 2012

BUILDERS’ DIGEST

11

|| BRANDING

DRUM ROLL PLEASE Introducing BATC’s New Logo Family The past half-decade has been challenging.

It’s also marked some radical changes — in the industry, in the way consumers operate, and the world of communications. BATC has worked hard to understand and share these changes with our members and our various constituents. In recognizing the changed nature of our world, we invested in a branding exercise with Beehive PR to

make sure we were providing the best balance of resources, advocacy, and marketing to serve our members into the future. As part of that work, we recognized the need to make sure all of our brands worked together — both in action and in the way we look.

The new BATC logo family was carefully designed to retain key elements of the

brand equity we have built over the past 60-plus years, while creating a look that reflects both who we are and who we aspire to be. We also wanted to find a strong, simple image that will stand for BATC in everything we do. This is the new BATC. Please let us know what you think!

BUILDERS ASSOCIATION

OF THE TWIN CITIES Parade of Homes

P RE S EN TE D B Y

P RE S EN T ED B Y

REMODELERS

12

BUILDERS’ DIGEST

SALES & MARKETING

JULY/SEPTEMBER 2012

50+ HOUSING

PROFESSIONAL WOMEN IN BUILDING

EDUCATION

DEVELOPERS

NEWS EVERYDAY ON THE BLOG: WWW.BATC.ORG/BLOG

GIVING

Y U

MORE SALES WITH NATURAL GAS

BUILD A HOME THAT SELLS FASTER AND FOR MORE MONEY What do your customers want in a home?1 s Natural gas heating, water heating and cooking are preferred by more than 70 percent of homeowners.

s Almost 75 percent of homeowners would recommend a home with natural gas to their friends.

s More than 85 percent of homeowners using natural gas for heating, water heating, cooking and clothes drying prefer natural gas for these appliances.

Sell your home faster with natural gas!2 s An overwhelming majority of builders agree – new homes with natural gas equipment generally sell quicker than those without any natural gas equipment.

s Of the 101 builders in this region that responded to the survey, more than 70 percent reported that their homes with natural gas equipment sell faster.

Increase your profits with natural gas!2 New single-family homes with natural gas appliances are selling for an average of 6 percent more than homes featuring electric appliances.

Add more to your bottom line with rebates Earn rebates up to $500 when you install high-efficiency natural gas furnaces, boilers, programmable thermostats, water heaters and fireplaces in the homes you build on CenterPoint Energy’s service lines. Learn more at CenterPointEnergy.com/MNBuilderRebates.

Learn about more ways you can benefit from building with natural gas. Contact David Poretti at 612-321-4386 (800-234-5800 ext. 4386) or David.Poretti@ CenterPointEnergy.com.

From the National Association of Home Builders Homeowner Energy Preference Survey 1

Reference: 2010 New Homeowner Energy Preference Survey, prepared by Woodland O’Brien & Scott – Consultants to the Housing Industry, St. Paul, MN

2

Reference: Special Report on Price Differential of Gas vs. Electric Homes, November 2010, prepared by Economics & Housing Policy Group of the National Association of Home Builders, Washington, DC.

|| EXECUTIVE

BOARD PROFILE

Pamela is very involved in our Housing First efforts. See page 42 for details

PEOPLE, PASSION AND PURPOSE Meet Pamela Belz Project Developer for Senior Housing Partners (Presbyterian Homes and Services) and 2012 BATC Builder Vice President Written by Wendy Danks

Pamela Belz, BATC’s next President, has a resumé that is simply powerful. Beginning a quarter-century ago (she must have been about 10), Pamela has become one of the most respected movers and shakers of the industry. She started as a project manager developing residential neighborhoods in 1987 and never looked back.

She’s garnered wisdom as she gained experience from some of the icons of the industry.

She’s worked for private companies, served some time lobbying for the Builders Association of Minnesota, and run her own development business.

Through it all, she says what keeps her motivated is “three words: people, passion and purpose.”

The deep recession in housing led Pamela back to her first housing love; in 2009 she “redi14

BUILDERS’ DIGEST

says. “Seeing the smiles that rected my energy to senior happen as residents move into housing development, which is their new home and enjoy their what I had gone to school for new spaces really keeps me originally.” As project developer going.” for Senior Housing Another pasPartners, she “When I sion for Pamela is builds new senior recognize a in the political housing campuses arena, she loves as well as redeveldevelopment oping existing hurdle that was “the purposeful work of leveling campuses that removed because the regulatory need repositioning. of the work BATC playing field for Pamela mandoes, I know we the industry.” She’s first in line whenages the entire are doing great ever there’s a need process: design, to reach out to entitlements, perwork.” local or state legismitting, financing, - Pamela lators. And, she’s construction, furbeen a driving force in the creniture, fixtures and equipment ation of BATC’s Independent -- all the way to moving resiExpenditure PAC, Housing dents from old buildings to the First, currently serving as its new. “It’s a most chaotic, comchair. plex and gratifying process and “When I recognize a develI love it! I feel like I have finally opment hurdle that was found my purpose,” Pamela

JULY/SEPTEMBER 2012

removed because of the work BATC does,” Pamela says with passion. “I know we are doing great work.”

But it’s not all work, or people, for Pamela. Her free time is spent on the trail or in the show ring with her horse and with the “light of her life,” her two new puppies. She says the number one thing on her bucket list is to “compete in a three-day eventing trial (dressage, jumping and cross country). What a rush!”

She says her favorite movies are “Seabiscuit and Secretariat, horse movies of course! But more importantly, they’re inspirational stories of people who demonstrated courage, determination and perseverance, and who made their dreams happen.” That sounds a great deal like Pamela’s journey through the housing industry.

NEWS EVERYDAY ON THE BLOG: WWW.BATC.ORG/BLOG

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|| EXECUTIVE

BOARD PROFILE

Attend the August 8th Sales and Marketing Council Mocha Meeting and you just might run into Kerry.

See page 10 for details.

TEACHING IS IN HER BLOOD Meet Kerry Mulcrone President at Kerry & Co. and 2012 BATC Secretary Written by Wendy Danks Kerry Mulcrone began her housing career a little over a quarter-century ago, too (what’s with these ladies starting work at age 10?). She’s always been a go-getter. She earned a Masters degree in education and spent some time as a teacher before discovering her talents in new home sales.

Kerry started out as a new home sales agent but quickly moved up to sales manager and finally vice president of sales and marketing. All the while, she used her teaching skills in new and interesting ways, and sold a whole lot of new houses.

Fast forward to 2006 when Kerry took the NAHB MIRM courses at BATC. Not only did she ace the courses and write a dynamic case study to earn her MIRM, instructor Roger Fiehn also asked her to get up in front of class to cover some 16

BUILDERS’ DIGEST

Home Builders speakers’ circuit. of the material. That was the And she’s a regular speaker and start of something a lot bigger presenter each year at the Interfor Kerry. national Builders Show.

With the industry downBATC is lucky to have turn, Kerry decided the time Kerry as an was right to go active member. into business and “I’ve grown my She’s chaired the start her own network and circle Sales and Marsales training of friends through keting Council company. “I perand the Large sonally educate, my BATC Volume Builders motivate and conaffiliation, and committee. “I sult both builders have been blessed joined to become and their sales involved in teams on both with so many Industry-related sales and marketfriendships that activities and ing Initiatives,” continue to stand receive cutting she says. edge Kerry’s skill in the test of time.” knowledge,” front of an audi- Kerry Kerry explains. ence has made her “I’ve grown my network and a high-demand speaker for circle of friends through my builders and Home Builders BATC affiliation, and have been Association’s around the counblessed with so many friendtry as well. She’s partnered ships that continue to stand the with other high-profile sales test of time.” and marketing professionals on I get motivated when the National Association of

JULY/SEPTEMBER 2012

together we create great things that help people prosper as individuals and companies.

Their “Moments of Celebration” are my motivating moments that let me know I am in the right place!

Like most high-energy professionals, Kerry does know how to play. She spends time with her husband, kids and granddaughter, Ella, on their boat during the summer, at their home in Florida during the winter, and she finally made it to Hawaii (on her bucket list) last winter. But no matter where she is, she’ll tell you she still finds time to sneak out to tour a few model homes!

She also loves inspirational books and movies, and is well known for making her students read and watch them too (including her own NAHB Bookstore top sellers). “I say if you don’t fill up your own energy tank, who will!”

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We Love to Text.

Are you always on the go-go and would love a quick last minute text to remind you of upcoming BATC events?

We can do that! To make sure your’re signed up, simply text, “BATC” to 90210.

That’s it.

NEWS EVERYDAY ON THE BLOG: WWW.BATC.ORG/BLOG

JULY/SEPTEMBER 2012

BUILDERS’ DIGEST

17

|| EXECUTIVE

BOARD PROFILE

Join the conversation on September 18th at the BATC Remodelers Round Table

INSPIRED BY CHALLENGE Meet Shawn Nelson President at New Spaces and 2012 BATC Treasurer Written by Wendy Danks

BATC has plenty of successful second- and even third-generation builders and remodelers.

For Shawn Nelson, however, it was more than a matter of simply following in dad’s (or mom’s) footsteps. In Shawn’s case both his dad, Doug (BATC President in 2005), and his mom, Carol (who has served on the TBG board since 2001), set a great example and a high bar.

Then, of course, there was the desire to prove something.

“I had a teacher once tell me that I shouldn’t go to work in the remodeling industry for a small family company, that it was a waste of my talents,” he explains. “I was upset by the disrespect shown towards builders and remodelers. It made me want to succeed at my company and also help others in the industry be successful and professional.”

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BUILDERS’ DIGEST

with clients after their project is That’s Shawn in a nutshell. finished and hearing the stories He has pretty much taken over about how much the reigns at New Spaces as Doug “I was upset by of a change the remodel has made and Carol have the disrespect in their family’s slowed down and are enjoying semishown towards life, and how fun the process was retirement. He’s builders and working with our picked up where remodelers.

It team. It is a very Doug left off by becoming an made me want to gratifying business to be able to see exceptional public succeed at my the results of our speaker, teaching company and also design, construcfor BATC and holding remodel- help others in the tion, and services.”

If business is ing seminars and industry be one of Shawns webinars when he successful and talents, being a has a spare dad is the other. moment. professional.”

He and his wife He’s definitely - Shawn Ann are the proud made the right parents of two lovely daughters, career choice, and finds plenty Stasia (11) and Emma (8). They of satisfaction in being great at spend plenty of time hanging what he does, and for making a out and just being a family. difference in peoples lives. He Shawn even lets the girls coif says a big motivation is “talking

JULY/SEPTEMBER 2012

his hair, although he claims he lost the photo where he had a headfull of pigtails decorated with several stuffed animals.

Like a lot of his generation, Shawn’s just a little bit of a geek; ask him about technology and see his eyes light up. He also say’s his favorite TV show (when he gets the time to watch) is The Big Bang Theory.

And, of course, he listens to public radio.

Shawn still likes a challenge. As if running a successful remodeling firm isn’t enough, he “occasionally looks into going to law school or getting a PHD in economics.” although he knows that “both are tough to find decent programs that allow you to attend school and work full time, especially with kids.” We’re not betting that he won’t figure it out one of these days.

NEWS EVERYDAY ON THE BLOG: WWW.BATC.ORG/BLOG

|| MARKETING 2011 Top Ranked Builders Twin Cities Region

25

By Gross Revenue from Residential Sales Activity for Calendar Year 2011

TOP BUILDERS RANKED

1.

Lennar — Minneapolis/St. Paul gross rev. $113,732,524 units 312

2.

The Pulte Group gross rev. $77,351,682

units

239

3.

D.R. Horton, Inc. — Minnesota gross rev. $65,260,000 units 227

4.

Ryland Homes — Twin Cities Division gross rev. $53,980,000 units 190

5.

Mattamy Homes gross rev. $45,420,000

units

160

6.

Capstone Builders gross rev. $29,854,039

units

101

Hanson Builders, Inc. gross rev. $29,716,635

units

50

7.

8.

K. Hovnanian Homes of Minnesota gross rev. $25,756,400 units 102

9.

LDK Builders gross rev. $24,774,592

units

60

10. Charles Cudd De Novo, LLC gross rev. $23,839,000

Results from a survey by the Builders Association of the Twin Cities (BATC) show that Lennar - Minneapolis/St. Paul was the region’s top ranked builder once again in 2011. Lennar has held the top spot since 2006.

Rankings are based on annual gross revenue as reported by respondents for for-sale housing. Lennar reported gross revenue at $113.7 million, with 312 total housing units closed in the 2011 calendar year.

"Lennar is honored to be named the Twin Cities’ number one home builder for six consecutive years,” says Bill Burgess, division president. ”We have recognized that today’s new home buyer wants extraordinary designs and architectural details along with newer advancing technologies and ever increasing energy efficiency in their homes. At Lennar, we continually adapt and improve our homes to meet today’s home buyers’ needs. In addition, our locations and community amenities have made Lennar the clear choice for Twin City home buyers.”

In fact, all of the top five ranked builders held the same ranking as they did in both 2009 and 2010, and are national firms with corporate offices located outside of Minnesota. Following Lennar were The Pulte Group (marketing homes under both Pulte Homes and Centex Homes) with almost $80 million in revenue and 239 housing units closed, followed by D.R. HortonMinnesota with $65.2 million revenue and 227 housing units, Ryland Homes with revenue of almost $54 million and 190 units, and Mattamy Homes at $45.4 million and 160 units.

Rankings are based on information provided by survey respondents. Respondent information is believed to be reliable. Each company has verified information to the best degree possible.

Commercial construction firms building rental or senior housing were not included in this ranking. Fieldstone Homes, a local residential builder which, according to Keystone Reports data, may have been included in the top 25, declined to participate.

units

18

gross rev. $22,074,246 * 12 . Gonyea Homes

units

72

gross rev. $18,432,392

units

33

11. KEYLAND Homes

13. Youngfield Homes DBA Country Joe Homes gross rev. $15,463,264

units

37

14. Hans Hagen Homes, Inc. gross rev. $14,752,000

units

62

units

47

15. Sharper Homes gross rev. $13,282,000

16. McDonald Construction, Inc. gross rev. $12,850,000

units

24

units

29

units

36

17. Donnay Homes, Inc gross rev. $11,865,000

18. GBI Homes, Inc. gross rev. $11,800,266

19. Homes by Tradition, LLC gross rev. $11,673,866

units

25

units

15

units

32

20. NIH Homes, LLC gross rev. $10,612,996

21. Ron Clark Construction gross rev. $10,373,562

22. Brandl/Anderson Homes gross rev. $8,583,715

units

29

23. Charles Merritt Homes, Inc. gross rev. $7,552,499

units

28

24. Twin Cities Habitat for Humanity, Inc. *Rottlund Homes, no longer in business, permitted 43 units for a value of $21,337,001 as reported by Keystone Reports. Commercial construction companies constructing rental or senior housing, and not members of the Builders Association of the Twin Cities were not included in this ranking. Rankings are based on information provided by survey respondents. Respondent information is believed to be reliable. Each company has verified information to the best degree possible

20

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gross rev. $6,780,264

units

46

units

10

25. Swanson Homes gross rev. $6,743,000

NEWS EVERYDAY ON THE BLOG: WWW.BATC.ORG/BLOG

How the GOLD STANDARD can help sell more homes • Radon resistant homes are higher quality, with improved energy efficiency because of the state-of-the-art construction methods used. • Higher quality, radon resistant built homes attract more buyers, resulting in more sales and greater profits.

www.HEALTH.STATE.MN.US/GOLDSTANDARD To order a free radon resistant toolkit contact: Tom Standke - 651-201-5209 tom.standke@state.mn.us

|| PROFILE

Chris Contreras

Todd Polifka

Ryland Homes BATC Large Volume Builders Committee

Brush Masters BATC At-Large Member, Associates Committee Chair

Q&A Get to know BATC’S Board of Directors We’re getting to the nuts and bolts of BATC’s leadership by asking questions that get at the heart of their passions and in the head of their personal philosophies.

What’s Your Role at BATC?

How did you get involved at BATC?

When I first arrived to the Twin Cities, I was surprised that no one within my organization was involved in the Builders Association. The first committee I joined was the Large Volume Builders Committee. It was a good time to meet all of my peers within the cities and talk about the issues that specifically affected us. The second year I was vice co-chair of this committee and decided to join the Parade of HomesSM Committee as well. Last year I moved to be the Chairman of the Large Volume Builder Committee and I still serve on the Parade of Homes Committee.

I was first introduced to BATC back in 2003 while working for a smaller remodeler before getting more involved while earning a CAPS certification and CGR certification.

My current role with BATC is as a Member at large seat and Chair of the Associates Committee, which has responsibility for the MN Builders Show and golf event.

What is your most memorable BATC moment?

Like getting to know your leadership team? Stay tuned, more to come in each issue!

I do not think that I have a “most memorable” moment, however I continue to be humbled at the selfless service that so many of our members give to the Builders Association. They are not paid, and we rarely say thanks, but they continue to give their time and knowledge to make the homebuilding and remodeling business better for everybody. I admire when we can put our competitive dispositions aside to try and make the industry better.

How has BATC helped your business?

Stay Tuned...

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BUILDERS’ DIGEST

The Parade of Homes has been the main connection between my company and BATC. Being able to provide my company’s perspective on this event has really helped us take advantage of the traffic that this event brings.

JULY/SEPTEMBER 2012

What is your most memorable BATC moment?

I’ve got a couple. My earliest memorable moment was when I met Doug Nelson during some certification classes. Doug told me about BATC and what a great association it was. He was one of my early influences (but don’t tell him!). The other one would be working with KC Chermak and Mike Swanson on the start of MN GreenStar while I was President of NARI. But most of all, I have truly enjoyed all of the great people and the way that they have stuck together to make this one of the best industries in the world!

How has BATC helped your business?

At Brush Masters, BATC has helped our business by being an avenue to brand and market our company to all of the great companies involved. We have taken great passion in supporting our industry, clients and potential clients. We look forward to continuing our relationship in this awesome industry.

NEWS EVERYDAY ON THE BLOG: WWW.BATC.ORG/BLOG

GOLF TOURNAMENT AT PRESTWICK GC AUGUST 7, 2012 Register at www.batc.org SPONSORSHIPS STILL AVAILABLE

photo gallery

Spring Parade of HomesSM Limo Tour April 1 - On April 1st, the winner of our Home & Garden booth Limo Tour giveaway, Janet Jezior of Stillwater and seven of her gal pals enjoyed champagne and snacks as they toured the spring Dream Homes and Dream Remodeled Home in a fancy white limo.

They had a great time.

From left to right, top to bottom: 1. Panelists included Dan Ballintine, Larkin Hoffman;

George Cundy, Cundy Santine Architects; and Shawn Nelson, New Spaces 2. Dan Ballentine answered plenty of questions 3. Cherie Poissant, Murphy Bros. 4. Lois Caswell, Pratt Homes 5. Q & A with the attendees

50+ Housing Council Working with Your Aging 50+ Customer May 17 - Panelists shared tips and successes for working with mature (we refuse to say old) customers.

Sponsored by:

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JULY/SEPTEMBER 2012

NEWS EVERYDAY ON THE BLOG: WWW.BATC.ORG/BLOG

photo gallery

Membership Luncheon with Susan Marvin Speaking April 5 - April’s membership luncheon was held at the Metropolitan in St. Louis Park and brought plenty of folks out to hear industry insights from Marvin Window’s Susan Marvin.

From left to right, top to bottom: 1. Seth Donnohue, Arrow Building Center with Bill Clemen, Lampert Lumber 2. Larry Cramer, L.

Cramer Design Build and Kathy Trimble, Kathy Trimble Custom Homes 3. Brett Remme, In-Focus Systems and BATC President Curt Christensen, Lee Lyn Construction 4. Gabe Karber, Marvin Windows and Doors; John Kramer, John Kraemer & Sons; with Jamie Flaws and Sara Soli, Midwest Home Magazine 5. Ron Schumacher, Arrow Building Center with Jon Coty, Lampert Lumber 6. David Majeski, Arrow Building Center with guest, Steve McCarron, McCarron’s Building Center 7. Brenda Beam Pehrson with Scot Waggoner, w.b. Builders 8. Daryl Doehr and Dale Loefler, Marvin Windows and Doors with guest Alan Judd, Window Store Home Improvements and Butch Sprenger, Destiny Homes 9. Speaker Susan Marvin, Marvin Windows and Doors with Kerry Mulcrone, Kerry & Co. 10. Jodi Milbradt and Jeff Demeneghi, Employer Solutions Group 12. Susan Marvin with Curt Christensen 13. Pete Scherer and Katie Harms, Scherer Bros. Lumber and Jan Berg, BATC Foundation Executive Director 14. Lunch at the Met was delish!

NEWS EVERYDAY ON THE BLOG: WWW.BATC.ORG/BLOG

JULY/SEPTEMBER 2012

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photo gallery

SLH Homes Systems, a Sure Lock Homes Company Showroom Mixer May 3 - What an evening!

Excellent wine, wonderful food and a great showroom to boot (members loved the leather theater seating, were there magic fingers in there?)

Sponsored by:

From left to right, top to bottom: 1. Liz Sprenger, Destiny Homes with Brett Remme, In-Focus Systems 2 and 3. SLH Home Systems spread included wine from local winerry, Warehouse Winery, and an incredible array of noshes 3. The registration table was getting crowded 4. Kathy Trimble, Kathy Trimble Custom Homes with Jon Coty, Lampert Lumber 5. Mike Hoppe, Corporate 4 Insurance Agency, JoLynn Johnson, Crystal Kitchen Center and Craig Weber, Bridgewater Construction laid claim to some of those comfy theater chairs 6. SLH owner Don Hain took a few minutes to welcome and thank the crowd for coming 7. John Laning and Mark Hartman from Menards Apple Valley 8. Lisa Schneegans with Referral Buzz chatting with SLH’s Tracy Hains 9. and 10. BATC Members enjoying the evening 11. What’d we say about Mike Hoppe and JoLynn Johnson hogging the chairs? 12. Jon Coty with Butch Sprenger, Destiny Homes 26

BUILDERS’ DIGEST

JULY/SEPTEMBER 2012

NEWS EVERYDAY ON THE BLOG: WWW.BATC.ORG/BLOG

photo gallery

Young Professionals Manage Your Online Business Identity Panel May 22 - Panelists, including Google guru Ben Theis, gave BATC members tips and cautions to successfully manage their online presence.

Sponsored by:

From left to right, top to bottom: 1. Guests got to pop a fish balloon for extra BATC bucks, discounted registration and to win a fishing

tackle box to help promote BATC’s upcoming Walleye Invitational 2. YP Vice Chair Tara Niebeling, Midwest Home Magazine, with Chair Tarry Logsdon, RBC Tile and Stone welcomed attendees 3. Guests enjoyed popping those fish balloons 4. 5, and 6. Attendees were keeping notes and paying attention 7. Google local rep, panelist Ben Theis 8. Panelist Evan Carpenter Periscope 9. Kelly Anderson, Bond Tile & Stone was on hand to tell first hand the perils of online identity problems 11. Panelist Ryan Lewandowski, Ackmann and Dickenson 12. and 13. Panelists provided lots of great information

NEWS EVERYDAY ON THE BLOG: WWW.BATC.ORG/BLOG

JULY/SEPTEMBER 2012

BUILDERS’ DIGEST

27

Building STRONGER Together

2012 BATC PARTNERS DIAMOND LEVEL PARTNER

PLATINUM LEVEL PARTNERS

GOLD LEVEL PARTNERS

SILVER LEVEL PARTNERS “The Garage Door Place”

BRONZE LEVEL PARTNERS

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BUILDERS’ DIGEST

JULY/SEPTEMBER 2012

NEWS EVERYDAY ON THE BLOG: WWW.BATC.ORG/BLOG

Legislative ‘12 Review “Phenomenal strength.”

- 2011 BEEHIVE BRANDING STUDY SURVEY RESPONSE

2012 Session: A Mixed Bag for the Home Building Industry For BATC, the 2012 legislative session was a mixed bag. On the positive side, we continued a strong defense of the industry.

For business groups like BATC, preventing harmful legislation is the first priority of any legislative session, and it’s no small feat. As pundits say, any time the legislature is in session, mischief may be afoot.

In that regard, 2012 was a good year in that we avoided new impact fees and protected the gains we’ve made over the past 10 years battling regulatory fees and improving the land use approval process. We also won the elimination of the 2 percent withholding requirement for general contractors working with independent contractors, the elimination of the Independent Contractor Exemption Certificate (ICEC) program, and changes in the online education requirements for builder credits, possibly opening another avenue for BATC to serve its members.

Our industry supported these efforts and we consider them victories.

On the disappointing side, the Governor once again vetoed language that would prohibit a fire sprinkler mandate, the second veto in two years. Also, our multi-year effort to reform and better balance development contracts, park fees, and moratoria processes fell just short amidst unexpected and fierce opposition from environmental groups focused on frac-sand mining in greater Minnesota.

We focused on these two issues and of course, we are frustrated that we couldn’t get into the end zone. However, regarding development contracts, park fees and moratoria, we advanced the issue much further than we have in the past five years, and increased awareness of the need for reform.

We’ll once again be trumpeting our cause in the upcoming session. Regarding fire sprinklers, our focus there now returns to the codes process.

A Strong Team The advocacy work on behalf of the homebuilding industry is undertaken by a

large team comprised of members, staff, lobbyists and attorneys from BATC, Builders Association of Minnesota (BAM), Central Minnesota Builders Association (CMBA) and Rochester Area Builders Association (RAB). We recognize and thank the entire team for their tireless work and contributions, as well as our many engaged members who reached out to their legislators, attended hearings and testified (see our team on page 3).

Future of Opportunity Looking ahead, 2013 will shepherd a new era at the State Capitol. An unusually high number of incumbent retirements coupled with redrawn legislative districts will mean substantial turnover in the legislature this November.

BATC is well prepared to influence these new legislators through our Housing First Super PAC, BATC Day on the Hill, our lobbying team’s efforts, grassroots advocacy program, new Legislator of the Year Award, and more.

“It is very important to have a voice at the legislative level. BATC has a very strong voice at the Capitol. This is THE most important thing BATC can do for its members.”

- 2011 BEEHIVE BRANDING STUDY SURVEY RESPONSE

By The Numbers: 2011-12 Biennium Senate Bill Introductions

2,625 House Bill Introductions

3,052 Bills Passed by the Legislature & Presented to the Governor:

299 Governor’s Vetoes

55 0

Legislative Overrides

The Team

Dave Siegel, CAE, IOM

James Vagle

Mary Schweich

Peter Coyle

BATC Executive Director

BATC Public Policy Director

BATC Public Policy Assistant

Attorney and Lobbyist, Larkin Hoffman Attorneys BATC Lobbyist

Julie Perrus

Curt Christensen

Jason McCarty

Pam Perri

Attorney and Lobbyist, Larkin Hoffman Attorneys BATC Lobbyist

Lee-Lyn Construction, BATC President

Westwood Professional Services BATC Public Policy Committee Chair

BAM Executive Vice President

Larry Redmond

Brian Halloran

Keith Kylmala

Chad Kompelien

Lobbyist, Redmond & Associates

Lobbyist, Redmond & Associates

Klymala Truss Klymala Truss, BAM President

Kompelien Custom Homes, BAM Government Affairs Chair

Public Policy Committee Members Pamela Belz Senior Housing Partners

Larry Frank Arcon Development

Greg Livermont Andersen Windows

David Pattberg Centra Homes, LLC

Morgan Bickel Lennar

Paul Heuer Stantec

Scott Blom ProBuild

Jim Johnston Emeritus Member

Jason McCarty Westwood Professional Services, Inc.

Ian Peterson Pulte Homes of Minnesota, LLC

Peter Coyle Larkin Hoffman Attorneys

Bill Keenan Builders Development & Finance, Inc.

Bob Michels Bob Michels Construction, Inc.

Joseph Springer Fredrikson & Byron, P.A.

George Cundy Cundy, Santine & Associates, Architects, LLC

Rick Kot R.a. Kot Homes, Inc.

Robert Engstrom Robert Engstrom Companies

Frank Kottschade North American Realty, Inc. Gary Kraemer John Kraemer & Sons, Inc.

Michael Noonan Noonan Land Development Ryan Ohr IKO Kathe Ostrom C.N. Ostrom & Son, Inc.

Jim Stanton Shamrock Builders Mike Swanson Weis Builders Steve Williams JMS Custom Homes, LLC

2 0 1 2 L E G I S L A T I V E R E V I E W | F O L L O W U S A T W W W. B A T C . O R G / B L O G

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3

Issue: Fire Sprinkler Mandate Prohibition BATC SUPPORTED AUTHORS Sen. Jeremy Miller (R-Winona) Rep. Mike LeMieur (R-Little Falls)

4

|

Prohibition on Fire Sprinkler Mandate Doused with Gubernatorial Veto It is both frustrating and disappointing to report that the bill containing the prohibition on a fire sprinkler mandate, which was placed before the governor with bipartisan support this session, fell victim to the red pen.

Our strategy was to place the prohibition on a piece of legislation that was highly desirable to the Governor. In that regard, our efforts were successful, as we explain below. We met with legislative leadership and made our case, with significant results. Further, we heavily lobbied Twin Cities Democrats to shore up their support against this onerous provision.

The fire sprinkler prohibition for single family homes was amended onto SF 1717, a Department of Labor and Industry Housekeeping bill. This action and the language in the bill mirrored the 2011 legislation, where the mandate prohibition, as well as a requirement for a builder to make a written offer and estimate to a prospective homeowner, were passed out of the legislature and vetoed by the Governor. The veto came despite strong bipartisan support for the industry position, with a house vote of 87-40 and a Senate vote of 48-17. In his veto message, the Governor cited a preference for this issue to be decided through the administrative process used to

update our building code, which is currently underway. Dayton accepted the policy arguments forwarded by the fire services: “I take very seriously the concerns which fire safety professionals have expressed about the safety of home residents, their properties, and the lives of the men and women who courageously risk their lives to fight those fires. They are concerned that newly-built homes burn more quickly, and that more firefighters are injured when floors collapse during fires. They contend that, with sprinkler systems in place, fires could be more readily contained, resulting in fewer injuries and deaths to homeowners and firefighters,” wrote Dayton, in his veto message issued 5/7/2012.

More than 35 states have defeated fire sprinkler mandate, but that argument failed to sway this Governor. Also of concern is that the Governor cited fire safety in newly built homes as a rationale for a veto. Substantial, independent data supports the fact that new homes are more fire safe than older homes. New homes are built with technological innovations including advanced heating and electrical systems as well as insulation and thermal barriers which provide fewer ignition sources and slow down a fire if one does start.

2 0 1 2 L E G I S L A T I V E R E V I E W | F O L L O W U S A T W W W. B A T C . O R G / B L O G

Fire fatalities overwhelmingly occur in homes without smoke alarms or with alarms that don’t operate. All new homes built in Minnesota require interconnected smoke alarms on every level, which sound quickly and don’t require homeowner battery replacement.

New homes have emergency escape and rescue windows in every bedroom, allowing residents to exit rapidly. The overall residential fire death rate has dropped by more than half (58 percent) since the 1980s, according to the Centers for Disease Control data.

With the Governor’s veto, the advocacy focus now moves to the code update process at the Department of Labor and Industry (DLI), which is currently underway. A recommendation from the Commissioner of DLI on the code update draft, which will include the fire sprinkler issue, is expected in the next few months. It’s anticipated that the proposed code, whether it does or does not contain the fire sprinkler mandate, will be challenged, and a hearing will be held before an Administrative Law Judge (ALJ). Our industry is already beginning its preparation for this next phase. Depending on the outcome at the anticipated ALJ, it’s also possible that the fire sprinkler issue could be addressed again at the legislature next session.

HOUSE SENATE

BATC SUPPORTED AUTHORS Rep. Mike Beard (R-Shakopee) Sen. Ray Vandeveer (R-Forest Lake)

Today, the homeowner purchasing a new singlefamily home priced at $250,000 is spending on average $62,500 on regulatory costs – NAHB Regulatory Cost Study

Issue: Land Use – Moratoria, Development Contracts, Park Fees BATC Dug Deep on Land Use Bill, but Frac Sand Buried our Gains For several years BATC has attempted to advance meaningful reform to the land use rules regarding moratoria, development contracts, and a new addition in 2012, park fees. A 2011 study by NAHB revealed the average total regulatory costs in the final price of a newly-built home are 25 percent, and as high as 36 percent in some areas. Today, the homeowner purchasing a new single family home priced at $250,000 is spending on average $62,500 on regulatory costs.

Today, the homeowner purchasing a new single family home priced at $250,000 is spending on average $62,500 on regulatory costs – NAHB Regulatory Cost Study The growing regulatory footprint and associated costs are not only unfair, they are unsustainable and further threaten the housing market in Minnesota. Of the 25 percent-plus of the final price point of a home attributable to regulation, the vast majority of costs occur during the development process. This measure proposed reasonable reforms to create greater efficiency in the land use approval and regulatory processes.

The House and Senate bills made dramatic advances, but ultimately succumbed to powerful opposition led by the environmental community concerned with

frac-sand mining. BATC’s efforts were lambasted in environmental blogs across the country and an array of more than 15 environmental groups clogged legislators’ phone lines with calls. With a clear understanding of the challenges ahead, BATC will once again bring this issue to the legislature in 2013.

SF 270/HF 389 contained the following: • A municipality could require a reasonable portion of buildable land of any proposed subdivision be dedicated to the public or preserved for public use.

• Defined fair market value as the value negotiated between the municipality and the applicant, or the market value of the property as determined by independent appraisals.

• Established a grandfathered right for complete development applications when a local government authorizes a temporary moratorium and also establishes a standard notice and public hearing requirement prior to imposition of a temporary moratorium.

• The bill limited a city’s ability to require conditions that are not expressly authorized by statute or mutually agreed upon by all parties.

The MN House passed a

trimmed-down version of the bill by a vote of 76-53. Our House author, Representative Mike Beard, stood firm against fierce opposition and carried enough votes in the House. But, following a lengthy and partisan debate, SF 270 failed to pass the Senate floor. The bill received 33 aye votes and 31 nay votes. However, Senate rules require a majority vote of all Senate members for a bill to pass, which is 34 votes. All DFL members voted against the bill and were joined by four GOP Senators: Carlson (Bemidji), Miller (Winona), Dahms (Redwood Falls), and Howe (Red Wing). Each of these GOP Senators resides in greater Minnesota, where the grassroots pressure had been especially intense following the bill’s initial hearing in late January.

Opposition to the bill came mainly from environmental groups and local officials concerned about changes to their ability to regulate frac-sand mining operations and other controversial or unforeseen developments. While BATC achieved commitment from the major public associations (League of MN Cities, Ass’n of MN Counties, Ass’n of MN Townships) to remain neutral on the bill, the strong push in greater Minnesota utilizing politically-divisive rhetoric became a challenge for many legislators in an election year.

2 0 1 2 L E G I S L A T I V E R E V I E W | F O L L O W U S A T W W W. B A T C . O R G / B L O G

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5

HOUSE SENATE

SIGNED INTO LAW BATC Neutral on Sub-Contractor Registration BATC Supportive of On-line Continuing Education; Tax Withholding & ICEC Repeal Provisions AUTHORS Rep. Tim Sanders (R-Blaine) Sen. John Pederson (R-St. Cloud)

Issue: DLI Housekeeping Sub-Contractor Registration Despite Registration, The Industry Registers a Win With Repeals The MN Department of Labor and Industry (DLI) sought several changes relating to the classification of independent contractors, and BAM reluctantly agreed in exchange for repeal of the two percent withholding requirement and the ICEC requirements. The most notable provision in the bill directs the commissioner to implement a pilot project, effective July 1, 2012, to register persons performing public or private sector commercial or residential building construction or improvement services.

The main purpose of the pilot project is to evaluate whether the information obtained through registration assists the Departments of Labor and Industry, Revenue, and Employment and Economic Development to enforce laws related to misclassification of employees. This is not a new issue to the legislature.

Previous attempts include requiring tax withholdings and the independent contractor exemption certificate (ICEC), which were both eliminated in this bill to make way for the registration pilot project.

Sub-Contractor registration Pilot Project The pilot project requires the commissioner of DLI to report to the legislature by January 1, 2014, on needed changes to the program and possible registration fees to finance misclassification laws. No fee may be charged during the pilot phase of the project. The pilot project sunsets on

6

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June 30, 2014, unless extended by the legislature.

Who must register?

All persons performing public or private sector commercial or residential construction or improvement services must register Registration under the pilot project does not apply to: • persons licensed, certified, or registered under chapters 299M (fire protection industry) or 326B (construction codes); • persons holding an independent contractor exemption certificate that is in effect on September 15, 2012; • persons under sections 326B.197 (gas, heating, ventilation, cooling, air conditioning, fuel burning, or refrigeration work) or 326B.46 (plumbing); • an employee employed by a person performing construction services if the person is in compliance with employment laws at the time the services were performed; • architects or professional engineers in professional practice under section 326.02; • school districts or technical colleges; or • persons providing construction services on a volunteer basis, including but not limited to Habitat for Humanity and BATC Foundation, and their individual volunteers when engaged in activities on their behalf.

2 0 1 2 L E G I S L A T I V E R E V I E W | F O L L O W U S A T W W W. B A T C . O R G / B L O G

Who is an Independent Contractor?

An individual is an independent contractor and not an employee of the person for whom the individual is performing services in the course of the person's trade, business, profession, or occupation, if: • maintains a separate business with the worker's own office, equipment, materials, and other facilities; holds or has applied for a federal employer ID number or has filed business or self-employment income tax returns in the previous year; • is operating under contract to perform the specific services for the person, for specific amounts of money and under which the worker controls the means of performing the services; • is incurring the main expense related to the services the worker is performing under the contract; • is responsible for the satisfactory completion of the services that the worker has contracted to perform and is liable for failure to complete the services; • receives compensation on a commission, per-job or competitive bid basis only; • may realize a profit or loss under the contract; • has continuing and recurring business liabilities or obligations; and • the success or failure of the

CONTINUED >> DLI Housekeeping - Sub-Contractor Registration

worker's business depends on the relationship of business receipts to expenditures.

Pilot project application The bill requires electronic registration for the pilot project. It strikes current law language related to applications for independent contractor exemption certificates and replaces it with new application information including: • name, business address, physical address, phone number, and email address; • federal employee ID number if applicable; • evidence of active status of business filings with secretary of state if applicable; • whether the applicant has employees at the time of application; • names of other persons with ownership interest in the business entity who are not otherwise identified and the percentage of interest ownership by each person. (shareholders with less than 10 percent ownership in a publicly traded corporation need not be provided) • information documenting compliance with workers

•

•

compensation and unemployment insurance laws; certification that the person signing the application has reviewed it, determined the information is true and accurate, and determined that the person signing is authorized to do so; and a signed authorization for DOLI to verify the information on the application.

Elimination of the two percent withholding requirement Existing law which required general contractors to withhold a portion of the taxes (two percent) when utilizing independent contractors was eliminated. The industry has opposed this onerous requirement for years, the elimination is a big win for general contractors who utilize independent contractors.

Elimination of the Independent Contractor Exemption Certificate requirements The Independent Contractor Exemption Certificate (ICEC) requirements were also eliminated in this bill. The ICEC had not been nearly as effective as originally anticipated by DLI. Previously, the law required individuals (not corporations, LLCs or partner-

ships) who work as independent contractors in the building construction industry to obtain from the DLI an ICEC. For purposes of the state workers' compensation, unemployment insurance, wage and hour, occupational safety and health laws, and state and federal tax withholding, individuals doing residential and commercial construction work without an ICEC are considered employees of the contractor for whom they are working.

The subcontractor registration pilot project replaces the ICEC program, which was repealed.

On-line Continuing Education Also included in SF 1653 is a provision expanding course approvals for on-line education courses to include both the International Distance Education Certification Center (IDECC) and the International Association for Continuing Education and Training (IACET). The IACET option will provide a more efficient option for course approvals, extending on-line continuing education to more builders. BATC is actively studying the delivery of on-line education and looks forward to exploring the newly authorized approval option.

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7

HOUSE SENATE

BATC SUPPORTED AUTHORS Rep. Carolyn McElfatrick (R-Deer River) Sen. Al DeKruif (R-Madison Lake)

HOUSE SENATE

SIGNED INTO LAW BATC SUPPORTED AUTHORS Sen. Bill Ingebrigtsen (R-Alexandria) Rep. Dan Fabian (R-Roseau)

Issue: Contractor Recovery Fund Over the past decade of challenged budgets the legislature has repeatedly turned to dedicated funds to help balance the budget. One of the targets has been the Contractor’s Recovery Fund, which not only received a one-time raid, but was also scheduled for an on-going

annual transfer to the general fund.

This transfer, coupled with the sharp downturn in the construction industry, posed a structural problem for the fund. Chapter 289 was introduced to address this.

Chapter 289 was passed unanimously by the legislature in the

closing days of session. The bill eliminates the on-going, scheduled transfer of roughly $1.5 million dollars from the Contractor Recovery Fund to the state’s general fund each year. This will go into effect in Fiscal year 2014.

Issue: Environmental Permitting A leading business community objective designed to speed up the environmental permit applications process for businesses and local governments was signed into law this session. This bill captures the spirit of much of BATC’s advocacy focus over the past decade; streamlined and efficient approvals in the development process saves time,

money, and can have a significant effect on project feasibility. The new law builds upon a similar one passed last year, and directs the Minnesota Pollution Control Agency and the Minnesota Department of Natural Resources to act on any permit application within 150 days of submission. Previously, an application had to be "substan-

tially completed" for consideration.

The bill received overwhelming bipartisan support.

The bill also requires the commissioner of the MN Department of Employment and Economic Development to coordinate administration of state permits, and allows businesses to hire private permit managers.

Issue: Met Council Staggered Terms BATC NEUTRAL AUTHORS Rep. Peggy Scott (R-Andover) Sen. Benjamin Kruse (R-Brooklyn Park)

Governor Dayton vetoed a bill providing for staggered terms for the Metropolitan Council. The legislation would have established staggered terms for Council members following reapportionment of Council districts in 2013. The primary objective of the bill was to provide continuity while retaining institutional knowledge during gubernatorial transitions. The move would also moderate the

inefficiencies of major swings in policy development that can occur with changes in the Governor’s office.

In his veto message, Dayton indicated that the current structure has been in place since 1994 and has served the state well. Allowing the Metropolitan Council to stagger terms, Dayton stated that a Governor would be forced to wait until two years into their term

before selecting his or her entire Metropolitan Council. In an a rare moment of executive branch consensus, Dayton concurred with his predecessor, Governor Tim Pawlenty, who vetoed a similar measure in 2008, echoing that the veto “was the result reforms intended to increase Metropolitan Council accountability, and this bill reduces that accountability.”

“BATC is my eyes and my ears on issues that I need to be concerned about.”

- 2011 BEEHIVE BRANDING STUDY SURVEY RESPONSE

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2 0 1 2 L E G I S L A T I V E R E V I E W | F O L L O W U S A T W W W. B A T C . O R G / B L O G

Issue: Tax Bill BATC SUPPORTED AUTHORS Rep. Greg Davids R-Preston Sen. Julianne Ortman R-Chanhassen

Early in the session, the Governor and legislative leaders expressed interest in a tax bill, though the proposals differed significantly. Both were aimed at providing business relief, but the Governor’s included closing a tax break for Minnesota companies with foreign operations.

At the end of session, two bills were sent to Governor Dayton in an attempt to provide tax relief for businesses. Following

the veto of the first tax bill, the legislature approved a renegotiated package of tax breaks with smaller cuts for businesses than the bill Dayton previously vetoed.

Despite this, the Governor again wielded his veto pen. The bill would have cost the state roughly $46 million over the next year.

Over the upcoming biennial budget, the cost to the state would have been around $73 million. The vetoed proposal drew

less from the state's budget reserves to pay for following: • a property tax freeze for businesses is limited to only one year; • a tax credit meant to encourage research and development.; • an up-to-$3,000 business credit for each veteran hired would have been granted for the first 1,250 eligible veterans hired after July 1.

Issue: Civil Justice Reforms Four civil justice reform bills aimed at bringing greater fairness to individuals and businesses was passed by the legislature on to the Governor, where he vetoed them all. The bills were introduced with strong backing from the Minnesota business community. The broad objectives of the measures were to provide greater access to justice for Minnesotans in a swifter and less expensive process. For the business community, the need to align Minnesota with other states is important for stability and competitiveness in the business climate. Nationally, tort reform has segued into stronger job markets for the states which have passed the measures.

Class Action, Interlocutory Appeal AUTHORS Rep. Doug Wardlow (R-Eagan) Sen. Julianne Ortman (R-Chanhassen)

The decision on certification of a class in a class-action suit is confirmed to be correct prior to commencement of litigation on the case. The bill would also have modified the threshold in conciliation court claims from $7500 to $10,000 and from $4,000 to $5,000 if the claim involved a consumer credit transaction.

Offer of SettlementProportionate Attorney Fees AUTHORS Rep. Pat Mazorol (R-Bloomington) Rep. Scott Newman (R-Hutchinson)

This bill would have required the court consider the reasonableness of any award of attorney fees in relation and proportion to the damages awarded in the underlying civil case.

AUTHORS Rep. Pat Mazorol (R-Bloomington)

calendar month, reported on a monthly basis in the latest statistical release of the board of governors of the Federal Reserve System.

Sen. Julianne Ortman (R-Chanhassen)

Regulating Interest Rates on Verdicts, Awards, and Judgments This bill would have reduced prejudgment interest rate to a market-based rate for individuals and businesses, down from a flat rate of 10 percent. The interest rate would be established annually by the state court administrator, who would determine the rate from the one-year constant maturity Treasury yield for the most recent

AUTHORS Rep. Doug Wardlow (R-Eagan) Sen. Julianne Ortman (R-Chanhassen)

Statute of Limitations Reductions Minnesota currently has the longest general statute of limitations in the country at six years. The bill would have reduced general statute of limitations for civil actions from six to four years.

2 0 1 2 L E G I S L A T I V E R E V I E W | F O L L O W U S A T W W W. B A T C . O R G / B L O G

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9

vote report

House of Representatives

Bills: 1. Fire Sprinkler Floor Vote - BATC Support 2. Land Use Floor Vote - BATC Support 3. DLI Housekeeping (Ind. Contractors; On-line Education) - BATC Support on-line Education; Neutral on Sub-Contractor 4. Environmental Permitting - BATC Support 5. Statute of Limitations - BATC Support 6. Construction code fund transfer to the general fund eliminated - BATC Support 7. Tax Bill - BATC Support a Voted with the preferred position

10 |

Rep. Jim Abeler

48B

R

Rep. Susan Allen

61B

DFL

Rep. Paul Anderson

13A

R

Rep. Diane Anderson

38A

R

Rep. Bruce Anderson

19A

R

Rep. Sarah Anderson

43A

R

Rep. Tom Anzelc

03A

DFL

Rep. Joe Atkins

39B

DFL

Rep. King Banaian

15B

R

Rep. Bob Barrett

17B

R

Rep. Michael Beard

35A

R

Rep. John Benson

43B

DFL

Rep. Mike Benson

30B

R

Rep. Kurt Bills

37B

R

Rep. Kathy Brynaert

23B

DFL

Rep. Mark Buesgens

35B

R

Rep. Lyndon Carlson, Sr.

45B

DFL

Rep. Bobby Joe Champion

58B

DFL

Rep. Karen Clark

61A

DFL

Rep. Tony Cornish

24B

R

Rep. Roger Crawford

08B

R

Rep. Kurt Daudt

17A

R

Rep. Greg Davids

31B

R

Rep. Jim Davnie

62A

DFL

Rep. Matt Dean

52B

R

Rep. Bob Dettmer

52A

R

Rep. David Dill

06A

DFL

Rep. Denise Dittrich

47A

DFL

Rep. Connie Doepke

33B

R

Rep. Keith Downey

41A

R

Rep. Steve Drazkowski

28B

R

Rep. Kent Eken

02A

DFL

Rep. Sondra Erickson

16A

R

Rep. Dan Fabian

01A

R

Rep. Andrew Falk

20A

DFL

Rep. Mary Franson

11B

R

r Voted against the preferred position

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Rep. Patti Fritz

26B

DFL

Rep. Pat Garofalo

36B

R

Rep. Kerry Gauthier

07B

DFL

Rep. Steve Gottwalt

15A

R

Rep. Marion Greene

60A

DFL

Rep. Mindy Greiling

54A

DFL

Rep. Glenn Gruenhagen

25A

R

Rep. Bob Gunther

24A

R

Rep. Tom Hackbarth

48A

R

Rep. Rod Hamilton

22B

R

Rep. David Hancock

02B

R

Rep. Rick Hansen

39A

DFL

Rep. Alice Hausman

66B

DFL

Rep. Debra Hilstrom

46B

DFL

Rep. Bill Hilty

08A

DFL

Rep. Mary Liz Holberg

36A

R

Rep. Joe Hoppe

34B

R

Rep. Frank Hornstein

60B

DFL

Rep. Melissa Hortman

47B

DFL

Rep. Larry Hosch

14B

DFL

Rep. Larry Howes

04B

R

Rep. Thomas Huntley

07A

DFL

Rep. Sheldon Johnson

67B

DFL

Rep. Phyllis Kahn

59B

DFL

Rep. Kory Kath

26A

DFL

Rep. Tim Kelly

28A

R

Rep. Andrea Kieffer

56B

R

Rep. Deb Kiel

01B

R

Rep. Mary Kiffmeyer

16B

R

Rep. Kate Knuth

50B

DFL

Rep. John Kriesel

57A

R

Rep. Carolyn Laine

50A

DFL

Rep. Morrie Lanning

09A

R

Rep. Ernie Leidiger

34A

R

Rep. Mike LeMieur

12B

R

Rep. Ann Lenczewski

40B

DFL

Rep. John Lesch

66A

DFL

Rep. Tina Liebling

30A

DFL

Rep. Leon Lillie

55A

DFL

Rep. Diane Loeffler

59A

DFL

Rep. Kathy Lohmer

56A

R

Rep. Jenifer Loon

42B

R

Rep. Tara Mack

37A

R

Rep. Tim Mahoney

67A

DFL

Rep. Carlos Mariani

65B

DFL

Rep. Paul Marquart

09B

DFL

Rep. Pat Mazorol

41B

R

Rep. Joe McDonald

19B

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Rep. Carolyn McElfatrick

03B

R

Rep. Carol McFarlane

53B

R

Rep. Denny McNamara

57B

R

Rep. Carly Melin

05B

DFL

Rep. Rena Moran

65A

DFL

Rep. Terry Morrow

23A

DFL

Rep. Joe Mullery

58A

DFL

Rep. Mark Murdock

10B

R

Rep. Erin Murphy

64A

DFL

Rep. Mary Murphy

06B

DFL

Rep. Rich Murray

27A

R

Rep. Pam Myhra

40A

R

Rep. Michael Nelson

46A

DFL

Rep. Bud Nornes

10A

R

Rep. Kim Norton

29B

DFL

Rep. Tim O’Driscoll

14A

R

Rep. Michael Paymar

64B

DFL

Rep. Gene Pelowski, Jr.

31A

DFL

Rep. Joyce Peppin

32A

R

Rep. John Persell

04A

DFL

Rep. Branden Petersen

49B

R

Rep. Sandra Peterson

45A

DFL

Rep. Jeanne Poppe

27B

DFL

Rep. Duane Quam

29A

R

Rep. Tom Rukavina

05A

DFL

Rep. Linda Runbeck

53A

R

Rep. Tim Sanders

51A

R

Rep. Bev Scalze

54B

DFL

Rep. Joe Schomacker

22A

R

Rep. Peggy Scott

49A

R

Rep. Ron Shimanski

18A

R

Rep. Steve Simon

44A

DFL

Rep. Nora Slawik

55B

DFL

Rep. Linda Slocum

63B

DFL

Rep. Steve Smith

33A

R

Rep. Kirk Stensrud

42A

R

Rep. Chris Swedzinski

21A

R

Rep. Paul Thissen

63A

DFL

Rep. Tom Tillberry

51B

DFL

Rep. Paul Torkelson

21B

R

Rep. Dean Urdahl

18B

R

Rep. Bruce Vogel

13B

R

Rep. Jean Wagenius

62B

DFL

Rep. John Ward

12A

DFL

Rep. Doug Wardlow

38B

R

Rep. Torrey Westrom

11A

R

Rep. Ryan Winkler

44B

DFL

Rep. Kelby Woodard

25B

R

Rep. Kurt Zellers

32B

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vote report

Senate

Bills: 1. Fire Sprinkler Floor Vote - BATC Support 2. Land Use Floor Vote - BATC Support 3. DLI Housekeeping (Ind. Contractors; On-line Education) - BATC Support on-line Education; Neutral on Sub-Contractor 4. Environmental Permitting - BATC Support 5. Statute of Limitations - BATC Support 6. Construction code fund transfer to the general fund eliminated - BATC Support 7. Tax Bill - BATC Support a Voted with the preferred position

y Did Not Vote/Was Absent

r Voted against the preferred position

Sen. Thomas Bakk

6

DFL

Sen. Michelle Benson

49

R

Sen. Terri Bonoff

43

DFL

Sen. David Brown

16

R

Sen. John Carlson

4

R

Sen. Roger Chamberlain

53

R

Sen. Richard Cohen

64

DFL

Sen. Gary Dahms

21

R

Sen. Ted Daley

38

R

Sen. Al DeKruif

25

R

Sen. Scott Dibble

60

DFL

Sen. Kari Dziedzic

59

DFL

Sen. Chris Eaton

46

DFL

Sen. Michelle Fischbach

14

R

Sen. Paul Gazelka

12

R

Sen. Chris Gerlach

37

R

Sen. Joe Gimse

13

R

Sen. Barb Goodwin

50

DFL

Sen. Dan Hall

40

R

Sen. David Hann

42

R

Sen. John Harrington

67

DFL

Sen. Jeff Hayden

61

DFL

Sen. Linda Higgins

58

DFL

Sen. Gretchen Hoffman

10

R

Sen. John Howe

28

R

Sen. Bill Ingebrigtsen

11

R

Sen. Michael Jungbauer

48

R

Sen. Kenneth Kelash

63

DFL

Sen. Amy Koch

19

R

Sen. Lyle Koenen & Gary Kubly

20

DFL

Sen. Benjamin Kruse

47

R

Sen. Keith Langseth

9

DFL

Sen. Ron Latz

44

DFL

Sen. Ted Lillie

56

DFL

Sen. Warren Limmer

32

R

Sen. Tony Lourey

8

DFL

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2 0 1 2 L E G I S L AT I V E R E V I E W | F O L LO W U S AT W W W. B AT C . O R G / B LO G

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Sen. Doug Magnus

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Sen. John Marty

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Sen. Mary Jo McGuire

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Sen. James Metzen

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Sen. Geoff Michel

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Sen. Jeremy Miller

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Sen. Carla Nelson

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Sen. Scott Newman

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Sen. Sean Nienow

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Sen. Gen Olson

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Sen. Julianne Ortman

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Sen. Sandra Pappas

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Sen. Mike Parry

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Sen. John Pederson

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Sen. Roger Reinert

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Sen. Ann Rest

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Sen. Claire Robling

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Sen. Julie Rosen

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Sen. Tom Saxhaug

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Sen. David Senjem

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Sen. Kathy Sheran

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Sen. Katie Sieben

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Sen. Rod Skoe

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Sen. LeRoy Stumpf

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Sen. Patricia Torres Ray

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Sen. Ray Vandeveer

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Sen. Pam Wolf

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Industry Related News. batc.org/blog

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“BATC is always good about coming to us in late summer with ideas for the upcoming session.

They ask. They’re clear and they listen.

That’s all I can really ask from an industry group.”

- 2011 BEEHIVE BRANDING STUDY SURVEY RESPONSE

2 0 1 2 L E G I S L A T I V E R E V I E W | F O L L O W U S A T W W W. B A T C . O R G / B L O G

For more information: James Vagle 651-697-7578 or James@batc.org

About Housing First

Housing First Leadership Committee

In 2010, BATC founded the Housing First Fund. Housing First is an Independent Expenditure Fund registered with the Minnesota Campaign Finance and Public Disclosure Board. These funds are often referred to as ‘Super PACs’.

Pamela Belz Chair, Senior Housing Partners

[

[

The Housing First mission: Housing First’s mission is to engage in political communications that advance the message of the homebuilding and remodeling industry through issue advocacy and candidate endorsements, complimenting BATC’s advocacy efforts and core mission.

Housing First supports legislative candidates through independent expenditures supporting their candidacy. The Housing First Fund is not affiliated with any political party – it's focused solely on supporting pro-homebuilding industry candidates to elected office.

Who Does Housing First Support?

Housing First supports candidates that support our home building industry by making independent expenditures to support their elections. It is not affiliated with any political party, rather it supports candidates that are part of the ‘home builder party’.

In the 2010 elections, Housing First supported three candidates for election to the Minnesota Legislature. All three won elections and proved to be strong supporters of BATC’s legislative platform.

2012 Election Unprecedented Importance 2012 will likely bring the largest turnover of Minnesota legislators in over a generation.

This is due to redistricting changes and strong attrition through legislative retirements.

Housing First has the chance to impact elections and increase awareness of key homebuilding issues in a way that we will not see for at least another decade.

Charlie Bradburn ABC Millwork Bill Burgess Lennar Jason McCarty Westwood Professional Services Kathe Ostrom CN Ostrom & Son Jim Stanton Shamrock Builders Curt Swanson Swanson Homes

Who Can Contribute to Housing First?

Both individuals and corporations can contribute to Housing First. In 2010, Minnesota Law was amended to specifically allow corporations to make independent expenditures in support of or in opposition to political candidates.

The Home Building and Remodeling Regulatory Pressures Continue to Mount •

A 2011 study by NAHB revealed the average total regulatory costs in the final price of a newly-built home are 25 percent, and as high as 36 percent in some areas. Today, the homeowner purchasing a new single family home priced at $250,000 is spending on average $62,500 on regulatory costs. The growing regulatory footprint and costs are not only unfair, they are unsustainable and further threaten the housing market in Minnesota. Of the 25 percent+ of the final price point of a home attributable to regulation, the vast majority of costs occur during the development process.

•

Following a challenging legislative session, it is clear that home builders need to have a stronger political voice. Regulation continues to increase and we need legislative champions to help us advance our policy priorities. Supporting the election of home building champions is a must. Issues like fire sprinkler mandates, park fee reforms, and others can be helped by electing pro-housing candidates.

ENSURE TH E H OM E BUI LDI NG I NDUSTR Y IS HEARD - CONTRI B UTE TO HOUSING FI RST

|| GREEN

MINNESOTA’S GREEN PATH:

ONE YEAR IN One year ago, BATC opened MN Green Path for business.

In developing the program, we learned that most green building programs don’t work for most of the market. We innovated, and built a program that could get more builders and homeowners on our path.

A year later, MN’s Green Path is growing as a market-driven green certification program that begins by participating in the two most valued areas – energy efficiency and indoor environmental quality.

The good news is that we have surpassed our first year goals for program participation.

We’ve also gained a deeper understanding of what our builders and their customers want and need in this space.

This feedback will guide the evolution of the program, which is certain to change with the shifting landscape.

AVERAGE

HERS Index in Green Path Certified Homes

60.22 The average MN Green Path home is nearly 40% more efficient than the code-built home nationally, 20% more efficient than the MN code-built home and substantially more efficient than existing homes!

SEEN IN THE

33

BATC Builders and Remodelers have entered projects in MN Green Path.

Here’s what they had to say about the program and what they’ve learned:

50%

of their prospective homeowners are interested in learning more about green building, 25% are very interested in it.

Homeowners are most interested in energy efficiency and MN Green Path’s Home Performance Reports (HPR). They’re least interested in site, recycling, and resource conservation.

75%

14

Watch Green Path builders on video at www.mngreenpath.org

BATC Members have supported the MN Green Path Program through sponsorships. See page 41 for a list.

30

BUILDERS’ DIGEST

+

NEW HOMES

Fall 2011

Industry watchdog McGraw-Hill projects a major spike in energy-efficient/green home certification in the next five years, with nearly half of all projects tested and certified.

We also expect changes in Minnesota’s energy code that could require most of the current compliment of voluntary base requirements for MN Green Path. MN Green Path is well-positioned to meet this demand by maintaining a platform that allows for market choice and flexibility.

JULY/SEPTEMBER 2012

HOMES ARE ALL 3 DREAM MN GREEN PATH

12 25 2 20+ 2

TOTAL NUMBER OF MN GREEN PATH HOMES THAT HAVE BEEN IN THE PARADE OF HOMESSM EVENTS

Our goal remains to create voluntary green certification that is responsive to the market and is workable for our members, all of whom are doing more with fewer resources.

COMPANIES

of participating builders said that MN GP participation was somewhat valuable; 25% said it was very valuable

of participating builders stated that they would recommend MN GP certification to a fellow builder.

Looking Ahead MEMBER

75%

NEW HOMES

REMODELED HOMES

NEW HOMES

Spring 2012

REMODELED HOMES

Fall 2012

STILL TAKING ENTRIES...

PROGRAM PARTICIPATION

115

Homes entered in

MN GP

Nearly 20% have already achieved final certification.

WWW.MNGREENPATH.ORG

NEWS EVERYDAY ON THE BLOG: WWW.BATC.ORG/BLOG

|| REMODELING

JOIN THE BATC REMODELERSSM COUNCIL as we share remodeling tips and ideas in each issue of the Builders’ Digest.

DON’T MISS our round-tables in person, either. Register to attend the BATC Remodelers Round Table Discussions during 2012 – the next one will be held on September 18th at 3:00 pm prior to the Member “Chili Cookoff” Mixer. Reserve your spot online at www.batc.org.

Q&A ROUNDTABLE DISCUSSION: MARKETING STRATEGY

Our Panel:

What was your most effective marketing strategy during the economic down turn?

Gary Knight, Knight Construction

GARY: Keeping our name out in front of our potential clients and letting them know we are still in business and strong. We have continued to market in various print ads, home shows, and the Remodelers Showcase® is key. We are trying to be as visible as we can on Facebook too.

JOLYNN : Hiring a marketing and public relations person to work in my office two days a week. He has a personal relationship with all types of media. He knows what to promote, who to talk with and how to make it of interest to them. He also plans all the events and works with the advertising salespeople. If it is not in your budget to have a PR person on staff, hire one by the hour (they charge about $100 an hour) or work out how many hours you want a month.

We don't have time to do all the marketing, nor do we have the connections a

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BUILDERS’ DIGEST

PR person has to get published.

JAMES: What down turn?

For us it is evaluating and identifying who our target customer is continually, and finding the best way to create and build on those relationships. Today's consumer has become more diligent in their selection of contractors due to the negative publicity brought onto our industry by a minority of the contractors out there.

We constantly try to enhance our brand, build relationships and then once we earn that trust, we take care of them during and after the sale. Past customers and referrals have to be the focal point of any marketing campaign. Then you build on that to fill in the gap. Annually about 15 percent of our work will need to come from new sources such as direct mail, internet, post cards, home shows, and the Remodelers Showcase. Doing an annual

JULY/SEPTEMBER 2012

marketing plan ensures that you stay focused, on budget, then you create measureable data for the years to follow.

BOB: All of our marketing efforts have been focused to build and drive our customer base to our upgraded website. We’ve increased our advertising budget; continually have completed projects professionally photographed for use on our website; simplified and upgraded the look on our website; and made sure our website is set up for viewing photos with tablet devices.

BJORN: So many times in marketing we hear about “low hanging fruit” when referring to past clients or most cost effective and efficient marketing - strategy, tactics, actions and vehicles. We like to look at things a bit differently at Ispiri. We like the two words “lasting

impressions” and “engaged ambassadors” better; you cannot have the latter without the first. The past client open houses and phone call initiatives we have created are simple and effective.

When you find a meaningful and relevant way to stay in touch and keep your clients remembering who transformed their homes and their lives for the better, they will likely keep talking about you to their friends.

1) Call them twice a year to let them know you miss them and that you are really proud of their home.

2) Show their home periodically to the world by throwing intimate neighborhood parties with just the right food and wines (partner with local restaurants) to enhance the event.

Prepare to enjoy some quality referrals – simple!

JoLynn Johnson Crystal Kitchen Center

James Madsen James Barton Design Build

Bob Michels Bob Michels Construction

Bjorn Freudenthal Ispiri

NEWS EVERYDAY ON THE BLOG: WWW.BATC.ORG/BLOG

Masonry Selection Center: 975 Nathan Ln. N. Plymouth, MN 55441 Appointments: 763-225-0551 Masonry Warehouse: 1135 Nathan Ln. N. Phone: 763-225-0540

www.hedbergrocks.com NEWS EVERYDAY ON THE BLOG: WWW.BATC.ORG/BLOG

JULY/SEPTEMBER 2012

BUILDERS’ DIGEST

33

START PLANNING FOR 2013...

ADVERTISE HERE. 6,000+ Builders, Remodelers and Contractors receive the January 2013 Issue in their mailbox...don’t miss this chance to be seen!

DO YOU HAVE WHAT IT TAKES? To join over 320 BATC members who already write their Workers’ Compensation with The Builders Group (TBG).

Join the #1 Self-Insured Workers’ Compensation Fund for the Construction Industry of Minnesota! )RU PRUH LQIRUPDWLRQ RU WR ÀQG DQ DJHQW For more information, or to find an agent near you,contact contactDennis Tina Morales TBG: near you, Medo at at TBG: Phone: (651) 203-6793 Phone: (651) 389-1043 Fax: (651) 389-1141 Fax: (651) 389-1141 Email: WPRUDOHV#WEJPQ FRP dmedo@tbgmn.com Email: Or,visit visitus us at at www.tbgmn.com TBGMN.com Or

34

BUILDERS’ DIGEST

JULY/SEPTEMBER 2012

NEWS EVERYDAY ON THE BLOG: WWW.BATC.ORG/BLOG

|| MEMBERS

Welcome New BATC Members Joining the Builders Association of the Twin Cities is the first step in becoming more active in your industry and in working to gain more business. The following companies have joined BATC over the last three months.

Please take a moment to welcome the newest members of our association.

NEW MEMBERS Admit One, Inc. 7513 Washington Avenue S. Edina, MN 55439 Lance Anderson 952-240-6262 lance@admitonecinema.com

P.O. Box 10695 White Bear Township, MN 55110 Raymond Pruban 651-426-0584 rpruban@amariscustomhomes.com

Aquarius Water Conditioning & Plumbing, Inc. 3180 Country Drive Little Canada, MN 55117 Jeff Dougherty 651-777-0448 info@aquariuswaterconditioning.com

Kolbe Gallery Twin Cities

Norbord, Inc.

7545 Washington Avenue S. Edina, MN 55439 Ron Hopkins 866-460-4403 rhopkins@kolbe-kolbe.com www.kolbe-kolbe.com

5660 Arthur Street NE Fridley, MN 55432 John Haluska 612-281-0700 john.haluska@norbord.com www.kolnorbord.com

M. Kozulla Corp. Remodelers & Builders

Norton Homes, LLC

13483 Fenway Boulevard Circle N. Hugo, MN 55038 Kevin Johnson 651-429-8444 kevin@drytechonline.com www.drytechonline.com

P.O. Box 240546 Apple Valley, MN 55124 Mark Kozulla 612-418-4477 mkozullacorp@frontiernet.net www.mkozullacorp.com

Gold Key Real Estate Services 1108 Highland Avenue Northfield, MN 55057 Kathleen Hanson 612-205-1133 kathleen@KathleenHanson.com www.GoldKeyRealEstateServices.com

Harrington Contracting Services, LLC

Barrier Exterior, LLC 5101 Highway 55, #5000 Minneapolis, MN 55422 Garen Nitzschke 763-546-1008 garenn@barrierexteriors.com

8411 W. 126th Street Savage, MN 55378 Trevor Braaten 952-496-3350 trevor@braatencreativewoods.com www.braatencreativewoods.com

Caliber Funding 7760 France Avenue S., 11th Floor Minneapolis, MN 55435 David Welsch 651-295-6394 david.welsch@caliberfunding.com

Central States Insulation Wholesale, Inc. 9792 Ulysses Street NE Blaine, MN 55434 Chad Peterson 763-786-2900 chad@centralstatesinsulation.com www.centralstatesinsulation.com

18215 – 45th Avenue N., Suite D Plymouth, MN 55447 Chris Norton 763-559-2991 info@nortonhomes.com www.nortonhomes.com

Olson Builders, Inc. M.R. Hebert & Associates, Inc. 23300 Grandview Trail Lakeville, MN 55044 Mark Hebert 952-461-4195 suehebert@msn.com www.heberthomes.com

12084 Gantry Lane Apple Valley, MN 55124 Scott Olson 612-598-2983 olsonbuild@gmail.com www.olsonbuilders.org

OnSite Manomin Resawn Timbers

13947 Eidelweiss Street NW Andover, MN 55304 Mike Harrington 612-987-2997 mike@harringtonmn.com www.harringtonmn.com

Braaten Creative Woods

BUILDERS’ DIGEST

3141 Fernbrook Lane N. Plymouth, MN 55447 Brandon Haug 763-450-2208 info@NewLineRoofing.com www.NewLineRoofing.com

Drytech Co., LLC

Amaris Custom Homes

36

New Line Roofing

P.O. Box 577 Circle Pines, MN 55014 James Julkowski 612-685-5291 james@julkowskiinc.com www.julkowskiinc.com

P.O. Box 64110 St. Paul, MN 55164 Brent Barsness 651-683-1834 bbarsness@dart.net www.dartportablestorage.com

992 Inwood Avenue N. Oakdale, MN 55128 C. Alden Pearson 651-224-9000 info@aldenpearson.com

120 Plato Boulevard W. St. Paul, MN 55107 Richard Berg 651-224-7728 richard@ciiflooring.com

Julkowski, Inc.

19808 Dawson Lane Farmington, MN 55024 Stephen Ayers 612-703-1216 sgayers@aol.com

Dart Portable Storage

Alden Pearson, P.A.

Contract Interiors, Inc.

Creekstone Ventures, LLC

P.O. Box 417 Hugo, MN 55038 Sarah Londerville 651-464-1771 sarah@mrtimbers.com www.mrtimbers.com

95 Woodlynn Avenue St. Paul, MN 55117 Russell Holm 651-429-3781 russ@onsitesanitation.com www.onsitesanitation.com

Palen Contracting, LLC

The House Dressing Company

Mark of Excellence Homes

4700 Lexington Avenue, Suite C Shoreview, MN 55126 Joe Palen 651-426-2572 joe@palencontracting.com

3322 W. 32nd Street Minneapolis, MN 55416 Terence Hughes 952-920-8301 Terence@housedressingcompany.com www.housedressingcompany.com

2120 Otter Lake Drive White Bear Lake, MN 55110 Mark Smith 612-490-0558 markmoeinc@aol.com

iGreen Designs, Inc.

Minnesota Rental Association

Pro Time Construction Services, Inc.

1000 Boone Avenue N., #200 Golden Valley, MN 55427 Justin Hayes 952-826-2222 justinh@igreendesigns.com www.igreendesigns.com

3218 Berwick Knoll Brooklyn Park, MN 55443 Terry St. Martin 763-424-6155 minnesotarental@mac.com www.MinnesotaRental.com

19338 Carson Circle NW Elk River, MN 55330 Brent Christenson 763-350-3652 brent@protimeconstruction.com www.protimeconstruction.com

JKath design build + reinvent

Mittelstaedt Homes, LLC

Richland Homes

W10881 – 435th Avenue Prescott, WI 54021 Dean Mittelstaedt 715-792-2566 dean@mittelstaedtbros.com www.mittelstaedtbros.com

959 Vine Circle Jordan, MN 55352 Matt Logeais 952-237-2363 matt@richlandhomes.net www.richlandhomes.net

3715 Wilds Ridge NW Prior Lake, MN 55372 Jesse Kath 952-923-1468 jesse@jkath.com www.jkath.com

Jeff Belzers Chevrolet Box 965 Lakeville, MN 55044 George Miller 952-469-6820 JULY/SEPTEMBER 2012

If you’re aware of prospective BATC members, please let Membership Director, Deb Earl know; Deb@batc.org or 651-697-7562.

NEWS EVERYDAY ON THE BLOG: WWW.BATC.ORG/BLOG

SPIKE

Rock-Tops, LLC

||

1960 County Road 90, #100 Maple Plain, MN 55359 Barry Balzer 763-479-2948 rocktops@frontiernet.net www.rocktops.com

Satoree Design 1612 West Lake Street Minneapolis, MN 55408 Heidi Pierce 612-823-0022 orders@satoreedesign.com www.satoreedesign.com

MEMBER{ SPIKELIGHT

SourceOne Graphics, Inc. 7703 Central Avenue NE Spring Lake Park, MN 55432 Paul Cowan 763-786-5500 pcowan@sourceonegraphics.net www.sourceonegraphics.net

Suncrest Builders/ Wausau Homes 5159 Main Street Box 382 Maple Plain, MN 55359 Julie Johnson 763-479-5555 julie.johnson@suncrestbuilders.com www.suncrestbuilders.com

Thane Hawkins Polar Chevrolet, Inc. 1801 E. County Road F White Bear Lake, MN 55110 Tim Skaar 651-429-7791

If every member were to recruit one new member to BATC this year alone, the Builders Association would double in size. We realize that this is some pretty simple math but, when you add up the numbers, the value of membership is greatly strengthened and the face of the organization remains true to the industry it represents when we continue to grow together.

Thank you to all of our members who recruited new members in the last quarter. For an updated Spike listing visit www.batc.org.

Tremco Barrier Solutions

NEW MEMBERS

NEW MEMBERS

LAST QUARTER

LAST QUARTER

{

{

HELP

NEW MEMBERS

{

6402 E. Main Street Reynoldsburg, OH 43068 Erik Schremp 952-221-6010 Eschremp@tremcoinc.com www.tremcobarriersolutions.com

Curt Christensen Lee Lyn Construction, L.L.C.

Larry Cramer L. Cramer Designers & Builders

Pamela Belz Senior Housing Partners

LAST QUARTER

3

Bob Michels Bob Michels Construction, Inc.

STRENGTHEN

OUR

2

1

Janice Berg BATC Foundation Pattie Martin Glowing Hearth & Home Shawn Nelson New Spaces Craig Plekkenpol Plekkenpol Builders Inc.

ASSOCIATION

Do Business with a BATC Member.

See complete list of spike points at www.batc.org

NEWS EVERYDAY ON THE BLOG: WWW.BATC.ORG/BLOG

JULY/SEPTEMBER 2012

BUILDERS’ DIGEST

37

|| PARADE

OF HOMES

NEW LOGO, NEW WEBSITE, NEW ENTHUSIASM IN THE MARKET...

Get set for a great fall Parade of HomesSM and Remodelers Showcase®!

New Logo As part of our branding work, we’ve updated our logos just a bit, bringing them a little closer to our overall BATC brand.

New Website We’ve been working hard to build out our brand new www.ParadeofHomes.org to launch with the fall tours. We’re extending the new graphic look while updating the site to work more effectively with the changes in how people interact online. We’re also pleased to have acquired ParadeofHomes.com this year. We’ll still promote the .org URL, but the folks who type in .com out of habit will find us right away.

New Enthusiasm in the Market We were thrilled to see survey results and anecdotal reports from builders and remodelers concluding that the spring tours were really successful. Reported traffic was up over 140 percent from spring 2011.

And, many members have reported they’re busier than they’ve been in five years with real sales!

As we write for this issue of the Builders’ Digest, we’re still taking entries and advertising reservations, but anticipate a great turnout.

Join Us At the State Fair We’re once again handing out guidebooks at the State Fair at our space next to Dinos on Carnes. Sign up for a shift and be a part of the fun!

Thanks to all the volunteers last year! Look for sign-up information at batc.org.

38

BUILDERS’ DIGEST

JULY/SEPTEMBER 2012

NEWS EVERYDAY ON THE BLOG: WWW.BATC.ORG/BLOG

NOA H W OL F PH OTOGR A PHY

Structural Precast Concrete For 2-Level Garages

I want my clients to be

Happy.

Having been a client herself, Wendy Rostal of Rostal Design, feels confident when she recommends Southview Design. “I know my clients are in good hands with Southview. They care about the end result and will work with you until you are completely satisfied.”

Wendy says she chooses Southview because, “I want my clients to be happy.”

Sport Court Under Garage

What Would uld You Put Under YOUR Garage?

www.molin.com Phone: hone: 651-786-7722 Email: sales@molin.com

MIDWEST HOME proud sponsor of

THE2012 ROMAAWARDS PLUS: DON SHELBY'S ECO-FRIENDLY HOUSE ®

2012

LUXURY

HO ME TO UR

DAVIDSALMELA DESIGNS A DREAMCABIN

PROG RAM IN SIDE

FIRED UP FOR GRILL SEASON

style Summit Ave.

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A gran granddSt. Paul duplex duplex houses houses three generations under one roof

midwesthomemag.com NEWS EVERYDAY ON THE BLOG: WWW.BATC.ORG/BLOG

JULY/SEPTEMBER 2012

BUILDERS’ DIGEST

39

photo gallery

MN Green Path Car Giveaway Event April 13 - Fourteen finalists brought their scratch off tickets to BATC to find out which one was the lucky new owner of a Volkswagen Jetta TDI from Schmelz Countryside.

See MN Green Path list of sponsors on page 55.

From left to right, top to bottom: 1. Winner Matthew Olson with his fiance were all smiles after Matthew chose the winning key that

opened the door to his new car 2. and 3. These iPod nano winners came to the giveaway to get their prize and see who won the big one 4. Hopeful finalists waiting to find out who won 5. Finalists gathered around the car waiting for their turn to select a key from the fish bowl 6. Matthew Olson discovering the key he chose was the right one! 7. and 8. More iPod winners show off their prize 9.

Mike Swanson, MN Green Path board president kept a keen eye on the contestants as they chose a key 10. No matter how hard some of the finalists tried, their key just didn’t work 11. Our thanks to Schmelz Countryside for partnering to give away a car, here Jonathan Schmelz and John Schmelz surround Matthew and his fiance 12. and 13. Finalists waiting patiently with their scratch off ticket 40

BUILDERS’ DIGEST

JULY/SEPTEMBER 2012

NEWS EVERYDAY ON THE BLOG: WWW.BATC.ORG/BLOG

Thank You to Our 2012 Sponsors Pioneer Sponsor:

Guide Sponsors:

Advocate Sponsors:

Enthusiast Sponsors:

NEWS EVERYDAY ON THE BLOG: WWW.BATC.ORG/BLOG

JULY/SEPTEMBER 2012

BUILDERS’ DIGEST

41

|| FOUNDATION

PROFILE

Left: 2005 Builders Outreach Foundation Ground Breaking Below: Jerry Peterson

A True Believer Written by Katie Harms, BATC Foundation Vice Chair

Jerry Peterson carries an old BOF mug. No matter where he is, someone will ask about it.

Jerry loves that because it always opens the door to wonderful conversation. It allows Jerry the opportunity to talk about something very near and dear to his heart, the BATC Foundation.

Our Foundation has had many wonderful people who have donated countless hours to the betterment of our organization. We would like to take this opportunity to thank Jerry for all he does for our organization.

Jerry joined both the St. Paul Builders Association and the Minneapolis Builders Association in 1983 as a partner in JJ Vanderson. While the company he represents has changed (he now represents Trilite Stone as a Builders Rep.), his commitment to volunteerism hasn’t wavered.

Jerry started out volunteer-

42

BUILDERS’ DIGEST

ing on several committees and was active on the St. Paul Area Builders Association Board when it merged with the Minneapolis Builders Association in 1992. Jerry continued his involvement in BATC serving on the board for six years and, at one time, held the position of Associate Vice President. Some of the committees that Jerry was involved in were Membership, Associates and of course BOF, which has become the BATC Foundation. When Jerry was extremely involved, he would sometimes spend five to six hours a day at BATC. You might think that perhaps Jerry had very little time to actually make a living, but that's just not the case. Jerry has not only been very successful in his business ventures, he's even recruited many new companies for BATC with 265 Spike credits to prove it! All told, Jerry has spent 19

JULY/SEPTEMBER 2012

years on the Foundation as a founding member. The early days of BOF involved a committed group of 10 - 12 people who vetted projects, worked to raise money and spent countless hours on site doing the work that needed to be done. Jerry remembers handling many egress windows, hanging sheetrock, painting, staining, and simply being jack-of-alltrades. Many home honey-do lists got set aside to complete the projects that the early organization set out to do. After a couple of years working as an ad hoc group, Jerry suggested that BOF raise $500,000 so that the group had working capital and the ability to earn interest.

That was the start of where we are today. Jerry’s pride in this organization bubbles from within. He feels fulfilled seeing the gratitude of the people this organization helps, and he is

humbled by the ability to touch someone’s life in a personal and meaningful way. Jerry truly enjoys seeing people in their new space made possible by the Foundation. What does the future hold for Jerry? He continues to be full of ideas and excitement about the direction that the BATC Foundation has taken. He continues to be active in his quiet, thoughtful way. His family knows that the BATC Foundation is very important to him, which leads me to believe that a few more honey-do lists will be set aside. Jerry will continue to work as a sales rep for Tri-lite stone which I am sure you will all agree, is a solid business for a rock solid guy.

Thank you Jerry. Perhaps we shall reward you with a new mug - you can bet it will have BATC Foundation prominently displayed.

NEWS EVERYDAY ON THE BLOG: WWW.BATC.ORG/BLOG

|| FOUNDATION

For more information about our projects, fundraisers, or to donate, please contact Executive Director Jan Berg, 651-697-7562, jan@batc.org.

PARTNERSHIPS & PROJECTS IN 2012 Rebuilding Together Twin Cities Partnership

NEWS FROM THE FOUNDATION A new partnership and new renovation ventures aren’t the only developments at the BATC Foundation. This year, an updated logo in conjunction with a strategic branding analysis has given BATC’s charitable arm a fresh

new facelift, and a newly rejuvenated look that will serve to strengthen their mission, vision and branding efforts. I guess the saying fits, ‘Everything old is new again’ for the Foundation in 2012. New partnerships and new

projects continue to shape the Foundation so that they can grow and expand in the area that they know best - serving the Twin Cities community ... One Home at a Time

BEHIND THE NEW LOGO Stemming from an in-depth branding analysis that BATC participated in earlier this year, the Foundation has also been working with Beehive PR to further focus their goals going forward.

This strategic planning exercise will help the Foundation meet their vision so that they can con-

tinue to renovate and build in partnership with other charitable organizations in the Twin Cities.

The new logo is one of the first

steps in this process. Stay tuned for more BATC Foundation updates coming bimonthly in the BATC Foundation E-Newsletter.

2012 Foundation Leadership: Front row: Jan Berg, Executive Director; Mike McCalvy, BATC Emeritus member; Pat Hegseth, Great Plains Millwork; Carey Shaich, Nesbit Agencies; Dean Soderbeck, Soderbeck Design & Construction Middle Row: Donna Hill, Donna Hill and Associates; Sara Anderson, chair; Bob Bennett, Fireside Hearth and Home; John Zirbes, Lyman Lumber; Katie Harms, Scherer Bros. Lumber; Scott Jenewein, Camria; Jerry Peterson, Tri-Lite Stone. Top Row: Matt Hanish, JMS Custom Homes; Trace Mills, Ryland Homes; Stephen Roche, Showcase Renovations; Steve Williams, JMS Custom Homes; and Patrick Jacobson, Lake Country Builders.

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The Foundation has partnered with Rebuilding Together Twin Cities and builder partner, Ironwood Carpentry, to repair three North Minneapolis homes to contribute to the safety and well being of the families who live there.

Jablonski Accessibility Project Awad & Koontz Architects Builders Inc. and Kuhl Design & Build are remodeling the home of Jack Jablonski, a High School sophomore who took a paralyzing hit during a hockey game last December.

The Foundation will manage the incoming donations and funding process of the project.

Silent Auction Needs The Foundation is looking for volunteers willing to donate to the BATC Foundation’s silent auction at the Awards of Excellence Gala on October 13. If you are interested in helping contact Jan Berg (jan@batc.org) at 651.697.7563

NEWS EVERYDAY ON THE BLOG: WWW.BATC.ORG/BLOG

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photo gallery

Young Professionals Giving Back April 18 - For the second year in a row, BATC’s Young Professionals joined forces to pack meals for Feed My Starving Children.

Good deeds combined with good company to make a great evening.

Sponsored by:

From left to right, top to bottom: 1. Tarry Logsdon, RBC Tile & Stone; Heather Litchy, BATC YP Staffer; Ryan Ohr, IKO; and Kelly Davert, Mingle working hard. 2. Tara Niebeling, Midwest Home Magazine and Heather Litchy showed off their lovely hair nets 3. Tarry Logsdon, RBC Tile & Stone; Heather Litchy, BATC YP Staffer; Ryan Ohr, IKO 4. Jim Fuschetta, Ferguson Kitchen Bath & Lighting Gallery firing up Justin Spoelstra, Preferred Interactive 5. Hey, the YP Gang’s All Here 6. Turning boxes of bulk grain into dinner for hungry children. 7. Jim Fuschetta washing up 8. Referral Buzz’ Nate and Noelle Valberg looked fetching in their hair nets too 9 Just what is Justin doing behind his back? 10. Tarry Logsdon and Julie Warner, Warners’ Stellian 12. The gang working hard!

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NEWS EVERYDAY ON THE BLOG: WWW.BATC.ORG/BLOG

Why Builders Choose Us With 125 years of experience Lampert Lumber provides exceptional service.

Our professionally trained sales staff is there to meet your every need. )HHO FRQĂ€GHQW \RX DUH JHWWLQJ WKH YHU\ EHVW ZLWK RXU TXDOLW\ SURGXFWV

Lampert Lumber has recently launched the Lampert Lumber Professional Builder program.

The program has been established to provide a rigorous unbiased review of a builder’s business practices and business relationships. The review focuses on the practices that are most important to homeowners in selecting a home builder or remodeler.

Please contact us to see if you qualify for this exciting new program.

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photo gallery

Member Appreciation BBQ Mixer June 4 - Rubbing elbows is what BATC mixers are all about. And when it’s outside, it’s even better.

The day was perfect for a tent, barbecue and a lot of networking.

Sponsored by:

Grill Provided by:

Member Appreciation BBQ Mixer: (from left to right, top to bottom) 1. BATC helped members get into rubbing elbows by giving away bottles of BATC’s own Memphis Rub to all atttendees, as well as spicing up the burgers 2. Shelby Allen, Gary Insurance with Andy Michels, Bob Michels Construction 3. John Vandermyde, JJ Vanderson; Curt Christensen, Lee Lyn Construction; Mike Edwards, Quality Insulation; Bob Bennett, Fireside Hearth and Home 4. Pete Hartman, Todd Cardinal and Ron Miller from our evening’s sponsor ProBuild 5. The BATC Bob Quad: Bob Rohweder, Warners’ Stellian; Bob Bennett, Fireside Hearth and Home; Bob Cremers, Builders Club; and Bob Michels, Bob Michels Construction 6. BATC’s men manned the grills, Brad Meewes and Ron DeCoux flipping like pro’s 7. Dishing up some great eats: Darin Trees, Suburban Chevrolet; Jon Coty, Lampert Yards; and James Vagle, BATC with Justin Spoelstra, Preferred Interactive in the background 8. A big tent and lots of sun made the day perfect 9. Mary Jean Dupuis (MJ) from MJ’s Contract Appliance with Mike Marta, Steven Cabinets and Monique Janu, MJ’s 10. Kathe Ostrom, C.N. Ostrom and Sons with Brenda Beam Pehrson 11. Blongoball (the coolest name for ladder golf) in the parking lot was a challenge 12. Mike Edwards, Quality Insulation with Klaus and Lisa Schneegans, Referral Buzz 13. Mike Keenan, Abbotts Paint and Carpet; Al TeWinkel, On the Green; and George Cundy, Cundy Santine Architects 48

BUILDERS’ DIGEST

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NEWS EVERYDAY ON THE BLOG: WWW.BATC.ORG/BLOG

Attend Events.

Earn BATC Bucks

Wi ndo and Trim Specia

Your Door

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NEWS EVERYDAY ON THE BLOG: WWW.BATC.ORG/BLOG

butors of:

JULY/SEPTEMBER 2012

BUILDERS’ DIGEST

49

photo gallery

Spring Board in DC June 6-8 - BATC members were pleased to find Minnesota Congressman and Senators welcoming and receptive to their message.

From left to right, top to bottom: 1. Back Row: David Siegel, BATC Executive Director; Craig Plekkenpol, Plekkenpol Builders; Curt

Christensen, Lee Lyn Construction; Mike Gohman, M. Gohman Construcion in St. Cloud; Curt Swanson, Swanson Homes. Front Row: Pamela Belz, Senior Housing Partners; Joe Weis, Weis Builders; Deb Christensen, Lee Lyn Construction; MN District 6 Representative Michelle Bachman; Len Pratt, Pratt Homes; Nancy Gohman; and Jane DeAustin, CMBA 2.Curt Swanson, Curt and Deb Christensen, and Pamela Belz 3. Meeting with Representative Bachman 4. Curt Christensen, BATC President, looking presidential in front of the US Capital building 5. Shawn Nelson, New Spaces; Craig Plekkenpol, Plekkenpol Builders; Deb and Curt Christensen, Lee Lyn Construction; Mike McCalvy, BATC Emeritus member, MN Senator Al Franken, Diana and Mike Coats and Steve Buss from Rochester; Len Pratt, Pratt Homes; with David Siegel and James Vagle, BATC in front.

BATC Walleye Fishing Tournament: (from left to right, top to bottom) 1. Sponsor Aaronwood Finish Carpentry got top billing 2. Biggest fish winner, Jeremy Jackson of Centra Homes won $100 for his 29-incher 3. Jeremy and teammate, Brian Schelling from Lyman Lumber took home the first place prize ($800) with the weightiest catch for the day 4. and 5. An al fresco picnic dinner wrapped up a great day.

BATC Walleye Fishing Tournament June 15 - 42 BATC Anglers invated Lake Mille Lacs to test their skill against the mighty walleye -- talk about invasive species!

Sponsored by:

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NEWS EVERYDAY ON THE BLOG: WWW.BATC.ORG/BLOG

• • • •

NEWS EVERYDAY ON THE BLOG: WWW.BATC.ORG/BLOG

JULY/SEPTEMBER 2012

BUILDERS’ DIGEST

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|| MEMBER

NEWS

STAYING CONNECTED Welcome to Member News. This is the place to learn about what's happening in the lives of BATC members. We feature awards, births, marriages, condolences, promotions, new hires, and all sorts of other milestones. So remember to send us all your important news!

Awards/Honors Uponor Employee Receives Worldwide Honor Devin Abellon, business development manager for Uponor Engineering Services, was named a Distinguished Lecturer for the American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE), joining a select group of 71 professionals worldwide.

Uponor-usa.com

firms and 12 corporate legal departments with a single mission: to attract, recruit, advance, and retain attorneys of color in the Twin Cities legal community.

MILESTONES AND COOL STUFF Beautiful Baby Girl

Diversityinpractice.org.

Orfield Receives Consumer Excellence Award

Jeff and Tammy Harrison of Knight Construction Design, Inc. are happy to announce the birth of daughter Allie Lynn Harrison, born April 10th. This is the Harrison’s third child.

Orfield Design & Construction, Inc. is the proud recipient of a 2012 Achievement in Consumer Excellence (ACE) award for providing an elite level of service to consumers in five areas: quality, responsiveness, meeting deadlines, professionalism and communication.

Orfielddesign.com

Eric Skare, product manager of Fire Safety at Uponor, was accepted to the Underwriters Laboratories, Inc. (UL) Standards Technical Panel (STP) for 1821, the standard for safety on Thermoplastic Sprinkler Pipe and Fittings for Fire Protection Service.

www.larkinhoffman.com

ON THE MOVE www.knightremodeling.com

Life Director Achievement

What Happens at Lamperts...

Congratulations to Rick Kot, R. A. Kot Homes Inc, whose commitment to the National Association of Home Builders’ Board has earned him the title of Life Director. This prestigious honor is awarded to members who have served as a voting director for ten or more years, attending at least two meetings of the Board per year.

Jeremiah Rygh, of Custom One Homes, Lampert Lumber’s winner of a $1,000 travel voucher to Las Vegas won at the Minnesota Builders Show in February!

RAKothomes.com

Larkin Hoffman Receives Twin Cities Diversity in Practice Larkin Hoffman, Daly & Lindgren, Ltd, was recently accepted as a member of Twin Cities Diversity in Practice, an association of 27 law JULY/SEPTEMBER 2012

Come visit Rubble Tile’s beautiful new showroom in St. Louis Park that specializes in “fashionforward” tile with style. www.rubbletile.com

Tile & Stone Opens New Facility The new 40,000-square-foot Minnesota Tile & Stone showroom in Minnetonka is now open! The unique model, designed by Tanek Inc. and constructed by RJ Ryan, aims to change how homeowners shop and how designers work with their clients.

Uponor-usa.com

BUILDERS’ DIGEST

Larkin Hoffman Daly & Lindgren Ltd. is pleased to announce that Julie L. Perrus and Michael J. Mergens have been elected as shareholders of the firm.

Ready to Show!

Uponor is On Fire

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Larkin Hoffman Names New Shareholders

www.lampertlumber.com

www.mntile.com NEWS EVERYDAY ON THE BLOG: WWW.BATC.ORG/BLOG

NEW PEOPLE & PROMOTIONS Westwood Welcomes One More

Got News?

Send it on over!

Westwood Professional Services, Inc. is pleased to announce the addition of senior transportation engineer John Hagen, to the firm’s land group. Hagen is a registered professional engineer and Professional Traffic Operations Engineer with nearly 20 years of experience.

nesses in the southern U.S. market before accepting the position of Vice President of U.S. Sales in May.

www.westwoodps.com

Facing Cancer Stoically

Brent Noonan Named Vice President of U.S. Sales for Uponor Noonan has served as Uponor’s South regional sales director since 2010, where he was responsible for providing leadership for the profitable growth of the heating, plumbing and fire sprinkler busi-

Wishing a Speedy Recovery

Leaving Behind a Lasting Legacy

Our thoughts and prayers go out to Brian VanderLee, advertising sales rep at the Star Tribune, who was attacked and seriously injured in on June 16th. Brian has undergone multiple brain surgeries, but is now home and recuperating. A benefit fund has been set up to help with Brian's medical bills.

Donations are accepted at any TCF Bank location.

Our deepest sympathy to Roy and Ruth Lecy of Lecy Bros. Homes & Remodeling on the death of Roy’s mother, Audrey Lecy, who passed away on May 4th at the age of 87.

With eight grandchildren, four great grandchildren, and one great-great grandchild, we know she will be greatly missed.

CONDOLENCES

Uponor-usa.com

GET WELL SOON

John Biancini of APEX Construction Management, LLC. is battling cancer with great bravado, receiving a positive prognosis for a full recovery. After undergoing chemotherapy/radiation treatment, John expects to be back on the road sometime in June.

For updates on his progress, visit www.caringbridge.org/visit/johnbiancini

A Mom Who will be Greatly Missed Our hearts go out to Jon Coty, (Lampert Lumber and BATC’s immediate past Associate Vice President), on the loss of his mom, Iris Coty, on June 12th after a courageous battle with ALS. At 76 years young, Iris leaves a tremendous hole in the lives of Jon, his dad and two brothers and their families, including five grandchildren and four great-grandchildren.

Hugs to Jon in this difficult time.

www.lecybros.com

A Celebration of Life We’re very sorry to share the sad news that John Austin passed away unexpectedly in April at just 48 years old. John had been a long-time member of Plekkenpol Builders, and more recently worked for JLM Design and Build.

Our heart breaks for John’s family and we send them our heartfelt condolences.

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It is a 10” geotextile fabric sewn together and filled with recycled wood product. It’s reusable and can be easily moved to another location. The Minnesota Mulch Log is a very effective perimeter control device and is more aesthetically pleasing providing a great alternative to silt fence.

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JULY/SEPTEMBER 2012

BUILDERS’ DIGEST

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Attend Events.

Earn BATC Bucks Be in the know, you know.

GetWe Text Alerts.

Love to Text.

Sign Up by Texting “BATC” to 90120

Are you always on the go-go and would love a quick last minute text to remind you of upcoming BATC events?

We can do that! To make sure your’re signed up, simply text, “BATC” to 90210.

That’s it.

NEWS EVERYDAY ON THE BLOG: WWW.BATC.ORG/BLOG

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