July 2012 Building Buzz

Bismarck-Mandan Home Builders Association

Building Buzz July 2012 Issue 7

www.bmhba.com The PAC Golf Tournament will be held July 19 at Apple Creek Country Club.

More info on page 6.

Don’t Shoot!

Sporting Clay Shoot August 23. More info on page 6.

What’s Inside: 2 Permit Report 3 President’s Letter 4 Calendar of Events 4 2012 New Members

5 Membership Highlight

8 City Beat

6 News & Events

9 NAHB Board Meeting

BlackRidge BANK

Summer Events NDAB Board Meeting Highlights

Election Results

10 NDAB News

Page 2

July 2012

BMHBA Building Buzz

Building Buzz Publisher/Editor: Roxanne Jacobson Layout Editor/Writer: Chelsea Gleich Published by the Bismarck-Mandan Home Builders Association 2600 Gateway Ave., Suite 1 Bismarck, ND 58503 Phone: 701.222.2400 Fax: 701.250.9730

Your membership is three-in-one: BMHBA, NDAB and NAHB

Scan to visit www.bmhba.com

Like Us! www.facebook.com/bmhba Follow Us! www.twitter.com/bmhba

Professionals building our community through promotion of home ownership, education and legislation since 1958.

Bismarck-Mandan Permit Reports Through May 2012 BISMARCK - monthly/yearly permit reports can be found at www.bismarck.org Permit Type

YTD 2012

YTD 2011

New Residential

Single Family Detached

Single Family Attached Duplex

3 or 4 Unit

5+ Unit Residential Garages New Commercial Alter Public

239/$60.14M 168/$29.9M 51/$8.2M 4/$1.32M 12/$6.83M 4/$13.89M 24/$.23M 27/$6.04M 3/$.048M

92/$16.08M 80/$14.25M 12/$1.83M 0/$0M 0/$0M 0/$0M 21/$.20M 21/$3.12M 5/$2.33M

MANDAN - monthly/yearly permit reports can be found at www.cityofmandan.com Permit Type

YTD 2012

YTD 2011

New Residential

Single Family

Two Family Condos Apartments Remodel and Additions New Commercial Alter Commercial

69/$19.96M 62/$15.02M 0/$0M 4/$.86M 3/$4.08M 51/$.72M 9/$5.14M 15/$.66M

47/$12.26M 28/$7.71M 1/$1.17M 16/$2.44M 2/$1.27M 46/$.62M 3/$2.04M 9/$.16M

July 2012

BMHBA Building Buzz

Page 3

A Word from Our President: The City of Bismarck Takes Swift Action to Address Builder Concerns On April 5th, we had a roundtable discussion with officials and commissioners from the City of Bismarck. The main focus of the discussion Chad Moldenhauer was to identify Board President some of the bottlenecks in the departments which are directly connected to home building, such as permitting, planning and engineering. With the rapid increase in demand for housing, the fact of the matter is that the workload in these departments has increased exponentially - far beyond what can be handled with the same staff under normal working conditions.

In their meeting on May 22nd, the Bismarck City Commission took several key steps to alleviate some of the concerns that were shared at the roundtable by adopting a proposal put together by City Administrator Bill Wocken. The proposal called for the immediate hiring of a residential plans examiner, a temporary building inspector for the construction season, overtime for the inspections

and engineering departments, and finally, the proposal expedited a study which would review the process of development approval as well as the possible implementation of computerized permitting, site plan reviews and web-based permit tracking. However, probably the most remarkable thing that happened that day was the fact that the city decided to use the revenues coming in from permits in order to put these items into effect immediately instead of waiting for the year-end budget cycle as discussed previously. Consequently, more of the money generated from construction activities will stay in the departments which serve construction instead of being siphoned by the city’s general fund.

We are fortunate to have leadership in our community at the commission and the department levels who are willing to adapt quickly, just as we all have in our own businesses.

The coming months are likely to bring about more changes

as well. The BMHBA will be part of a development and growth task force, which will further refine the city’s processes and give feedback on new changes as well as suggest additional ones. In addition, members of the BMHBA have been asked to sit on a Bismarck Green Space Committee which is developing a proposed requirement of park/community space in new developments, as well as on an Affordable Housing Task Force charged with opening up new affordable housing options. Our association is uniquely situated to shape the growth of our community and each of our members can be a part of that growth. If you have suggestions, comments or concerns, please share them with myself or another board member.

Page 4

BMHBA Building Buzz

Calendar of Events July 19: Annual PAC Golf Tournament at Apple Creek Country Club July 24: BMHBA Board Meeting August 23: Sporting Clay Shoot at Capital City Sporting Clays Shooting Complex August 28: BMHBA Board Meeting September 25: BMHBA Board Meeting September 27-30: Fall Parade of Homes *All Board Meetings are held at the BMHBA office

July 2012

2012 Board of Directors

PRESIDENT Chad Moldenhauer K & L Homes, Inc. PO Box 7188 Bismarck, ND 58501 Phone: (701) 258-4584

1ST VICE PRESIDENT Eric Brenden Northwest Contracting 3420 E Century Ave. Bismarck, ND 58503 Phone: (701) 255-7727

SECRETARY/TREASURER Minda Lloyd ND Guaranty & Title Co. 201 45h Ave. NW Mandan, ND 58554 Phone: (701) 663-5362

BOARD MEMBER Scott Moran Hallmark Homes 7404 Moonlite Rd. Bismarck, ND 58503 Phone: (701) 471-7634

PAST PRESIDENT Scott Duchsherer Prairie Aire Homes, Inc. 843 Longhorn Drive Bismarck, ND 58503 Phone: (701) 258-5733

BOARD MEMBER Paula Haider Haider Glass Specialties 1717 Commerce St. Ste. A Bismarck, ND 58504 Phone: (701) 250-6787

BOARD MEMBER C.J. Schorsch Fleck’s Furniture & Appliance 313 East Main Ave. Bismarck, ND 58501 Phone: (701) 323-0891

2ND VICE PRESIDENT Vance Vetter Vance Vetter Homes 2500 Railroad Ave., Unit A Bismarck, ND 58501 Phone: (701) 751-8218

BOARD MEMBER Mike Hopfauf Hopfauf Custom Builders PO Box 425 Mandan, ND 58554 Phone: (701) 663-7691 BOARD MEMBER Greg Zenker Ferguson Enterprises 2817 37th St. NW Mandan, ND 58554 Phone: (701) 663-2446

2012 New Members

We would like to thank our new members for joining us, and welcome them to the association. If you know any of these members, please encourage them to get involved and attend BMHBA functions with you.

AME Coatings Anyleaks, Inc. Arrow Service Team Blend Home Design Boulder Homes Dove Painting Fireside Custom Homes G & J Awning & Canvas GR-8 Builders Granite Creations Hunt Construction Les Mowing

Mind Over Material Mr. Squeegee Window Cleaning OSI/ISI/Sunny Maids Prairie Supply, Inc. Satellites Plus ServiceMaster Professional Services Specials Delivery Structural Materials Titan Machinery Weisz & Sons, Inc.

July 2012

BMHBA Building Buzz

Membership Highlight

Page 5

Whether Commercial or Residential, BlackRidge BANK Offers “A New Way of Thinking” Submitted by BlackRidge BANK BlackRidgeBANK opened in the Bismarck-Mandan market in 2008 as a loan production office while waiting for the construction of it's new bank facility, completed in the spring of 2009. While relatively young , BlackRidgeBANK's staff and Holding Company are no "new kids on the block."

BlackRidge Financial, (the bank’s holding company) was created by five former executives of Community First Bankshares, which was sold to Bank of the West in 2004.

In 2006, they began by raising capital and purchasing established banks in the Brainerd, MN lakes area and the Alexandria, MN area. Eager to take the unique brand of community banking to larger metropolitan areas, the company opened a new location in Fargo, ND in 2007 followed by Bismarck in 2008. In October of 2011, BlackRidge Financial merged its 3 charters and 10 banks into one North Dakota charter under the BlackRidgeBANK name. The BlackRidgeBANK leadership team is made up of professional bankers and staff with vast experience and a deep understanding of community.

They appreciate the trust you've placed in their bank and are dedicated to insuring that you receive the products you need and the service you expect.

Head of the Mortgage Lending Our Bismarck Dept. at BlackRidge staff is made BANK, Brent Goetz up of seasoned professionals

who have but one ultimate goal in mind; to help you, their customer, become as profitable as possible. It's pretty simple; your success is their success.

Primarily a commercial bank, BlackRidgeBANK is made up of BlackRidge BANK’s location at 3703 Lockport St. in people who listen Bismarck. You can contact them at 751-3300 or visit and take time to www.blackridgebank.com. understand where BlackRidgeBANK and its entire staff you are going are poised to help the Bismarckand what you want to accomplish.

Mandan area grow. Bismarck area Although we are commercial based, President John Jessen heads his we are extremely proud of our retail team of professionals which include: growth and service to our area.

Joel Kostelecky - Vice President, BlackRidgeBANK provides a wide Commercial Lending; Larry Rolfson variety of products and services - Vice President, Relationship geared to convenience and customer Development; Kristen Butler - Vice satisfaction.

President, Client Services; Kayla Our newest addition, Brent Goetz, Kraus - Lending and Client Services; who heads our Mortgage Lending Katie Chorne - Loan Administration; Dept., is committed to providing Brent Goetz - Mortgage Lending; Anna knowledge and insight to assist his Busta - Client Services; and Samantha clients. Whether refinancing your Borner - Client Services. home, buying for the first time, For all your banking needs, investing in a property or splurging on both commercial and residential, a vacation home, Brent can help. You experience "A New Way of Thinking." can reach him online, by stopping by Experience BlackRidgeBANK. the bank or calling 701-751-4719.

Community focused,

BUILDERS & DEVELOPERS: Public Input Meeting on Green Space Ordinance July 18 at 6 p.m.

Bismarck Public Library

Contact the BMHBA office for more info.

Page 6

BMHBA Building Buzz

BMHBA News & Events

Take Aim this Summer at the Golf Tournament and Sporting Clay Shoot!

BMHBA summers are full of fun - first the picnic, followed by the Annual PAC Golf Tournament in July and rounded out the Sporting Clay Shoot in August!

On July 19, Apple Creek Country Club will host a full course of golfers in the Annual PAC Golf Tournament.

Registration begins at 11 with a shotgun start at noon. Mulligans and entrance into the hole-in-one contests and chipping contest will be available during registration. The tournament concludes with a steak

dinner and awards.

If golf isn’t your thing, try out the Sporting Clay Shoot on August 23 at Capital City Sporting Clays Shooting Complex. Join us for a fun afternoon followed by a barbecue and prizes!

We are looking for shooting station sponsors, so if you’re interested contact the office. The cost for each shooter is $50 and the registration forms will be out soon.

Hope to see you at these fun events!

The North Dakota Association of Builders hosted their Summer Board Meeting June 20-21 at the Comfort Inn in Bismarck. Three board members and two staff attended the meeting on behalf of the BMHBA. Some highlights of the meeting were: Secretary of State Al Jaeger started off the meeting with an explanation of how and why his office works the way it does. The biggest takeaway from his talk was the reason why they shortened their hours. With over 1800 contractor license applications since Jan. 1, 2012, they just couldn’t keep up. By cutting their public hours, turnaround time has decreased from about 6 weeks to 3 or 4 weeks.

Dave Lanpher, a real estate agent on the ND Real Estate Appraisal Board, also spoke to the group. He made it clear that ND is only meeting the minimum federal guidelines for appraiser requirements, not making it more difficult than federal law requires.

Dave mentioned that we are getting more appraisers each year and that if you experience a timeliness problem with an appraiser, you should report it to the board and ask the homeowner to submit a complaint as well.

During the Senior Officers Report, the importance of representation of the locals at national was discussed. Ken Callahan of the Williston Area Builders Association stressed how our ND directors need to take the responsibility as such to heart and make an impact at the national level. He recognized Vance Vetter and Eric Brenden from the BMHBA as first-time attendees, and a great example for other new attendees to follow.

We were also joined by a representative from NAHB BuildPAC who hand delivered our splitback check from donations.

Thank you to everyone who donates to PAC each year. That is how everything on the national level is possible.

NDAB Summer Board Meeting Highlights

July 2012

Housing Incentive Fund Donation = Dollar-for-Dollar Tax Credit

If you donate to the ND Housing Incentive Fund, you will get a dollar-fordollar tax credit in return.

Funds in the Housing incentive Fund then help finance the development of affordable multifamily housing.

You will be recognized for your donation, get a break on your taxes and help build affordable housing in your community.

WIN-WIN-WIN! For more info, visit ndhfa. org.

July 2012

BMHBA Building Buzz

Page 7

Page 8

BMHBA Building Buzz

July 2012

City Beat: Measure 2 Defeated at the Polls, Commissioners Elected

By Chelsea Gleich

The ND primary election on June 12 had one of the highest voter participation numbers for a primary in recent history. This was most likely due to the highly contentious measures on the ballot.

The BMHBA was a member of the Keep It Local ND Coalition to oppose Measure 2 (the proposal to eliminate property taxes). In an effort to promote the coalition, the BMHBA donated PAC funds, Roxy attended Keep It Local ND meetings to determine strategy, we encouraged the coalition on facebook by sharing their page and news articles, Roxy submitted a letter to the editor, and we helped to put together/ display yard signs.

Apparently all that work paid off, as over 75% of voters, voted no on Measure 2! Thank you to everyone

143185 Bismarck HBA News Ad.indd 1

who helped support the coalition and defeat this flawed measure. It was great to see all the different groups work so well together, and we hope to continue those working relationships should another issue like this come up in the future.

We would also like to congratulate our newest members of city and county commission. In Bismarck, we look forward to working with Parrell Grossman and Mike Seminary again as members of the City Commission.

Jerry Woodcox and Brian Bitner

will also continue their terms as commissioners on the Burleigh County level. While the new Morton County commissioners will not be decided until November, we will get the opportunity to work with two new faces in local government in Mandan. Mike Braun and Arlyn VanBeek (incoming mayor) join incumbent Sandra Tibke on the Mandan City Commission.

One of our main goals at the BMHBA is to forge strong working relationships with members of local government so we are able to work together to help our community grow in ways that are beneficial to our industry and our community as a whole. We look forward to working with the newly elected commissioners and mayor to help the Bismarck-Mandan community grow.

6/25/12 11:23 AM

July 2012

BMHBA Building Buzz

Page 9

Three Members Represent BMHBA at National Spring Board Meeting in Washington, D.C.

By Chelsea Gleich The National Association of Home Builders’ Spring Board of Directors Meeting and Legislative Conference was held June 5-9 in Washington, D.C. North Dakota made a strong showing at the meeting, including three representatives from BismarckMandan – NDAB President Eddy Mitzel, BMHBA First Vice President Eric Brenden and Second Vice President Vance Vetter.

The North Dakota representatives were able to meet with Congressmen Rick Berg, Kent Conrad and John Hoeven to voice their concerns about various legislative issues affecting our industry. These meetings seemed to be very productive. Sen. Hoeven was impressed by the sheer number in the North Dakota HBA group, saying it was one of the biggest groups they’ve had.

The Board of Directors Meeting segment of the trip actually consisted of more than one meeting. First, the individual committee meetings were held, followed by the caucus meetings.

A caucus meeting is a smaller board meeting made up of a group of states in a specific geographical region.

North Dakota is in Area 10 which also includes: South Dakota, Minnesota, Iowa and Wisconsin. A specific goal of our caucus members was to ensure that NAHB is financially stable since they have lost nearly 100,000 members since 2007. NAHB representatives believe that the membership numbers should level off at the current level of approximately 145,000. While NAHB has financial reserves to cover some of the lost income, it is still imperative that they develop a new business model so they can sustain the organization at this level. NAHB Chairman Barry Rutenberg and First Vice Chairman Rick Judson were in attendance at the Area 10 Caucus meeting and responded to these concerns by

agreeing to develop a strategic plan for the association based on current membership numbers, as well as develop guidelines for the use of reserve money.

Following the caucus meetings, the national directors from each HBA all met together for the official board meeting. As the Spring Board meeting always revolves around legislative issues, those were the highlighted items on the agenda. The top legislative priorities from North Dakota discussed were construction lending/mortgage requirements (as outlined in H. R. 1755 and S. 2078), lead paint legislation (S. 2148), tax issues/keeping the mortgage interest deduction, housing finance/ GSE reform, infrastructure issues/ Southwest Water and the Red River diversion.

In an interview, attendees Eddy Mitzel and Eric Brenden discussed the first two legislative issues more thoroughly. The goal of the construction lending legislation is to ease the current lending process, making it simpler for construction companies to get the loans needed to finance their projects and keep up with demand, Eddy explained. The NDAB thanked Congressman Berg for co-sponsoring this bill.

The lead paint legislation is also very important to our industry. As Eric explained it, the proposed legislation would reinstate the opt-out option for remodeling projects in “target housing” where young children and/ or pregnant women would not be present. The NDAB is happy to report that Sen. Hoeven has co-sponsored this bill.

The top issues discussed in regards to the association itself were the strategic plan to be developed, a new website for NAHB, a potential dues increase (national dues have not increased for over 10 years), and the decrease in vendors at IBS.

Anderson Windows, a major vendor at the show each year, has wavered on participation this year. Eddy asked that any members who work with Anderson Windows talk to their contacts and encourage them to join the show again. This would be a great help to increase show revenues.

In Washington, D.C. it is easy to see your PAC dollars at work. However, sometimes back in North Dakota it is harder to see the impact. If you want to know what your PAC dollars do for you, look no further. Due to NAHB Build-PAC advocacy efforts (fighting expensive regulations, etc.), the housing industry saved $5.7 billion in 2011. The restoration of higher FHAbacked mortgage loan limits alone saved the industry $1.9 billion.

NAHB is truly making a difference in the housing industry on a daily basis. Eric stressed the importance of the legislative conference. Being able to speak to our congressmen faceto-face and show them that housing needs to be a priority for our state and the nation makes a world of difference. As Eddy put it, “the only way to show we mean business is to show up.” There were great North Dakotan representatives at the Spring Board Meeting, but we can always use more. “Thank you Eric and Vance for attending the meeting on behalf of the BMHBA,” said Eddy. “I would like to continue the great trend they started as first-time attendees and see two more representatives come to play and help us fight the fight…. what happens does affect us and saves us money.”

Page 10

BMHBA Building Buzz

July 2012

July 2012

BMHBA Building Buzz

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