May 2012 Building Buzz

Bismarck-Mandan Home Builders Association

Building Buzz

May 2012 Issue 5 www.bmhba.com

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

Mark Your Calendars!

The Annual Builders Meeting will be held May 8 at Jack’s Steakhouse.

All builders are invited to attend.

Join us at the Spring GMM on May 17 at the Radisson Hotel to find out the Spring Parade of Homes winners!

The Annual Picnic will be June 14 at the Post in Mandan. There will be a silent auction, 50/50 drawing and lots of good food!

If you would like more information about these events or to register, contact the HBA office at 222-2400.

Inside This Issue Permit Report

2

Membership Highlight

5

Mind Over Material

President’s Letter

3

Calendar of Events

4

2012 New Members

4

News & Events Spring Parade Recap Bismarck Builder City Roundtable Opens Door for Communication

6

Letter to the Editor

8

National News

9

NDAB News

10

HBA News from Around the State

11

Page 2

Bismarck-Mandan Home Builders Association

Building Buzz

Building Buzz Publisher/Editor Layout Editor/Writer

Scan to visit the website: bmhba.com

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

Permit Report Through March 2012 Bismarck/Burleigh permit reports are available online at: www.bismarck.org

Bismarck City Permits

YTD 2012

YTD 2011

YTD New Residential Single Family Detached Single Family Attached Duplex 3 or 4 Unit 5+ Unit YTD Residential Garages YTD New Commercial YTD Alter Public

109/$20.8M 77/$13.79M 26/$3.44M 0/$0M 5/$2.91M 1/$.665M 9/$.085M 19/$4.74M 2/$.025M

9/$1.435M 9/$1.435M 0/$0M 0/$0M 0/$0M 0/$0M 1/$.014M 14/$1.93M 2/$.425M

Permit Report Through March 2012 Mandan Permit Reports are available online at: www.cityofmandan.com

Mandan City Permits

YTD 2012

YTD 2011

YTD New Residential Single Family Duplex Condos Apartments YTD Remodel and Additions YTD New Commercial YTD Alter Commercial

29/$8.062M 24/$6.39M 0/$0M 4/$.862M 1/$.810M 25/$.256M 6/$.312M 10/$.483M

13/$3.67M 12/$3.17M 0/$0M 0/$0M 1/$.500M 31/$.484M 0/$0M 5/$.057M

Morton County Permits Only Report at Year End

Congratulations to our Spring Parade of Homes Grand Prize Winners,

Mike Vincent and Betty Nelson!

Building Buzz

Bismarck-Mandan Home Builders Association

Page 3

A Word from Our President:

National Membership Month—We Encourage You to Do Business with Members and Recruit Non-Members You Already Work With

Recently I received a call from a realtor that I have worked with in the past. She told me that she had an out of state builder contact her who wanted to Chad construct Moldenhauer homes in our President, area and BMHBA wanted to know what advice I had for him. One of my first suggestions was that he become a member of the BMHBA. There is no doubt that many of you have been contacted by, or are working with new builders and subcontractors. Please encourage these businesses which are new to our area to become members of our association. For the $375 yearly fee, membership offers several advantages to builders and subcontractors such as: · Membership gains you access to networking events throughout the year. These are a great opportunity to build relationships with other members, develop new business and maintain old clients. · Membership gives you an avenue to get your voice heard in local government. There are many regulations that affect our industry, and the BMHBA has the ability to weigh in on those regulations and changes, often times before they turn into law. · Membership opens the door to exclusive marketing opportunities.

The annual Spring and Fall Parade of Homes is crucial for builders and subcontractors to display their work

and establish a reputation for themselves. The Home Show is also an excellent way to get the word out and drum up new business. ·Members have access to education though our state and national association. Our industry is always changing with new products and new techniques. Members can gain knowledge and gain the certifications they need through educational offerings by the association. Some examples of courses offered by the BMHBA are basement insulation techniques, and updates on building codes and OSHA requirements. Member pricing for BMHBA courses is almost always more affordable than third party education sources, as well. · Membership can save you money. With programs such as member advantage through our national association, members are able to save money on business costs like FedEx services, Verizon plans and even GM vehicles. For more information on how to access these discounts, go to www.nahb.org/ ma.

Our association is only as strong as its members and everyone in

our industry is benefited by the work that we do. Consequently, it is also important to encourage the existing businesses that you work with to become members if they are not already. By working with BMHBA members we partner with businesses that are invested in the industry and we reinforce our own commitment to it and our association. For more information, or a list of our current members, please visit our website at www.bmhba.com, or call the office at 222-2400. I look forward to working with our new members as our industry continues to grow.

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Bismarck-Mandan Home Builders Association

Calendar of Events May 8 Annual Builders Meeting—Jack’s Steakhouse May 16 Bonded Builder Warranty Info Meeting—Doublewood Inn May 17 Spring GMM—Radisson Hotel May 22 BMHBA Board Meeting & New Member BBQ—BMHBA Office June 14 Annual Picnic—The Post June 26 BMHBA Board Meeting July 19 Annual PAC Golf Tournament— Apple Creek Golf Course July 24 BMHBA Board Meeting August 23 Sporting Clay Shoot—Capital City Sporting Clays *All Board Meetings are held at the BMHBA Office

Building Buzz

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

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

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

SECRETARY/TREASURER Minda Lloyd ND Guaranty & Title Co. 201 4th 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

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

BOARD MEMBER Mike Hopfauf Hopfauf Custom Builders PO Box 425 Mandan, ND 58554 Phone: (701) 663-7691

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

BOARD MEMBER Greg Zenker Ferguson Enterprises 2817 37 Street 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.

We look forward to helping them build their businesses and build our community. The 2012 new members are:

Anyleaks, Inc. Mind Over Material Arrow Service Team Mr. Squeegee Window Cleaning Blend Home Design Prairie Supply, Inc. Boulder Homes Satellites Plus Dove Painting Service Master Fireside Custom Professional Homes Services G & J Awning & Specials Delivery Canvas Structural Materials GR-8 Builders Titan Machinery Granite Creations Weisz & Sons, Inc. Hunt Construction

Bismarck-Mandan Home Builders Association

Building Buzz

Page 5

Membership Highlight Mind Over Material Makes Ornamental Ironwork Personal Mind Over Material, LLC Justin Rode, Owner Phone: 701-793-9858 justin@mindovermaterial.com www.mindovermaterial.com

sculpture. Justin is one of the only people in North Dakota who practice the art of blacksmithing full Justin Rode, owner of Mind Over time.

Material, is an artist at heart. He According to his graduated with a degree in fine arts website, “[Mind from MSUM in 2005 and even Over Material’s] helped run a co-op art gallery in primary objective is to provide the Fargo for a time. Justin’s love for art, most unique and innovative sculpture and metalworking metalwork in the region.” This starts transformed into his Bismarckwith their approach to projects. based company, Mind Over Material, There are no standard products to a year ago. pick from when working with Mind Mind Over Material specializes in Over Material. Each project begins ornamental ironwork, railings, with a consultation with the client/ furniture, blacksmithing and homeowner. Consistency is a top priority to Justin, so every project starts with a look at the other metal products which will be used in the home so they can incorporate some of the same shapes, finishes, etc. Then considering budget constraints and those design elements, the original metalwork

piece is created.

What sets Mind Over Material apart from it’s competitors? Their strong focus on design and the fact that they love what they do—or as Justin likes to put it, “the postproject euphoria.” This is the feeling you get when you conquer the challenge and create the project as you envisioned—the happy “I did it” feeling.

Mind Over Material has two employees year round, plus seasonal help. Justin says the biggest challenge to his business is educating the public and builders on what sets his company apart (custom work/no cookie cutter products) and how the experience and pricing reflects that.

To see more work by Mind Over Material visit their website at www.mindovermaterial.com.

Page 6

Building Buzz

Bismarck-Mandan Home Builders Association

BMHBA News and Events Spring Parade of Homes: Two Weekends, 30 Homes, 22 Builders

Despite some windy, dreary weather, the Spring Parade of Homes was deemed a success with recordbreaking ticket sales. The 30-home Parade featured homes ranging from $190,000 to over $500,000.

Come to the Spring GMM to place your guess of how many tickets were sold for a chance to win a prize!

Special thanks to our ticket sponsors again this year: North Dakota Guaranty & Title Company,

Mandan Guaranty & Title Company, Montana-Dakota Utilities and Kupper Chevrolet.

Also, special thanks to CorwinChurchill Appliance and Eggers Audio Video for providing the generous grand prizes for the Parade.

Thanks to the Parade Committee for all their hard work and to all the builders who entered their homes.

The Fall Parade of Homes is set for Sept. 27-30.

May Events: Builders Meeting set for May 8, Spring GMM May 17 Now that the Spring Parade of Homes is completed, it’s time for BMHBA builders to get together and discuss their concerns with the association and set the dates for the 2013 Parades. The Builders Meeting will once again be held at Jack’s Steakhouse on May 8. Social begins at 5:30 p.m., dinner at 6:30. Dinner is on the BMHBA, and cash bar will be available. Come get to know the other builders and voice your opinion.

The NDAB is now offering the Bonded Builder Warranty Program to all HBA members in ND. To learn more about the program, attend the free informational session on May 16 at 8 a.m. at the Doublewood Inn. Call the BMHBA at 222-2400 or NDAB at 222-2401 for more information.

Also, after the Spring Parade, we have to give away the awards! The Spring GMM will be held May 17 at the Radisson Hotel where the Judges’ and People’s Choice Awards will be presented. Social starts at 5:30 p.m., dinner at 6:15. All members are encouraged to attend and show their support for the builders! For more information or to RSVP for either event contact the office at 222-2400 or email chelsea@bmhba.com.

The NDAB Golf Tournament is in Bismarck this year on June 21 at Hawktree Golf Course.

For more info or to register go to www.ndbuild.com

Bismarck Builder City Roundtable Opens Door for Communication With Bismarck city employees, two city commissioners, community stakeholders and BMHBA Board representatives in attendance, the Builder-City Roundtable discussion covered a variety of subjects and seemed to accomplish it’s goal of encouraging communication between the City and the BMHBA. The two biggest issues discussed were the lot shortage/lack of affordable housing and the need for the City and the BMHBA to get ahead and stay ahead of development/ building in our area to facilitate the inevitable growth due to the influx of oil-related employees in the western half of the state. We hope to continue discussions like this in the future.

A full summary of the roundtable discussion, along with builder input survey results can be found at www.bmhba.wordpress.com or on our website at www.bmhba.com.

The Annual Picnic Silent Auction needs your help!

The Annual Picnic will be held June 14 at The Post.

What type of items?

Gift baskets, gift cards, tools, electronics, home goods, etc.

All proceeds from the silent auction go to the BSC Scholarship Fund to provide 3 scholarships per year for students in the building trades.

Ready to give back to the future of the industry?

Let us know below what you plan to donate. We’ll come pick it up or you can drop it off at the office when it’s ready. Thanks in advance for your generosity!

Call 222.2400  Fax 250.9730  Email chelsea@bmhba.com

Items to Donate: Company: Contact Name: Will you drop it off?

Or should we pick it up?

Building Buzz

Bismarck-Mandan Home Builders Association

Page 7

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Bismarck-Mandan Home Builders Association

Building Buzz

Measure 2 Will Slow Down the Development Process A Letter to the Editor by BMHBA Executive Officer Roxy Jacobson

As the executive officer of the Bismarck-Mandan Home Builders Association (BMBHA), I’ve been able to see firsthand how important it is to be able to work in cooperation with city governments on local issues, like infrastructure funding/ planning. This is more important than ever as our communities are growing rapidly with the influx of people related to the oil industry.

Builders and subcontractors are working their hardest to keep up with demand. The BMHBA and the City of Bismarck are working on ways to help with infrastructure, so that more lots can then be developed and sold for housing. However, if Measure 2 was to pass and all the funds needed for infrastructure must be allocated by the state, this would greatly slow down the development

process. It would take the power to find and fund an efficient solution away from the city and force city officials to lobby the legislature for funds for new roads, water and sewer systems. They would then be going up against the police and fire departments, school systems and others from across the state in an attempt to convince the legislature of the importance of their project versus the others.

No one knows the needs of your community better than those who live and work there every day. We need those people, our city and county commissioners, to be able to allocate funds for projects our communities need in a timely manner. And we, as the community residents, need to be able to speak directly with them about our

concerns. Despite the money from the oil industry, the timing of Measure 2 is all wrong. In this time of major growth for our state, we need to be able to move quickly and efficiently to keep up with the demands on our communities at the local level.

On the surface, abolishing property taxes sounds like a great idea. But when you consider everything property taxes currently fund, and how difficult it would be to reinstate taxes if the “legislature will figure it out” concept for funding our local entities doesn’t work out, you realize that passing Measure 2 is the wrong decision and changing our constitution could have drastic consequences.

I strongly urge you to vote NO on Measure 2.

Building Buzz

Bismarck-Mandan Home Builders Association

Page 9

National News: Home Builders Urge Congress to Provide Certainty and Permanency in Tax Code

On April 18, the National Association of Home Builders (NAHB) called on Congress to simplify the tax code as part of a comprehensive tax reform effort in order to help small businesses to continue to serve as an engine of economic growth.

Testifying on behalf of NAHB before the House Small Business Committee, Maryland home builder Marty Mitchell said that given the huge complexities in tax law, today’s complicated federal tax system acts as a burden and hindrance on small businesses, which serve as the backbone of the economy.

“The home building community supports simplifying the tax code as part of a comprehensive tax reform process,” said Mitchell. “Such an effort should only occur after a

thoughtful and deliberate vetting process that examines proposed changes, necessary transition rules and economic impacts.”

Most small businesses, including the vast majority in the residential construction sector, are organized as pass-thru entities and therefore report and pay individual tax rates on their net business income. Thus, for small businesses, which traditionally serve as the nation’s foremost job creators, individual income tax rates are business tax rates.

“Therefore, NAHB strongly supports extending the 2001 and 2003 income tax cuts now scheduled to expire at the end of 2012 in order to improve the business environment in this country,” said Mitchell. “We need permanency in the tax code and certainty for small businesses.”

Absent congressional action, the top marginal tax rate will jump from 35 percent to 39.6 percent along with rate increases at the lower brackets.

NAHB is also urging lawmakers to extend the current 15 percent rate on dividends and capital gains, which is important to small business owners.

A higher capital gains tax rate could also affect the multifamily sector, as the sale of apartment buildings can give rise to capital gains as part of the development and operation process.

He also stressed that it is critical that the mortgage interest deduction, which has been part of the tax system since 1913 and plays an indispensible role in promoting homeownership, should not be curtailed or eliminated as part of any tax reform effort.

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Bismarck-Mandan Home Builders Association

Building Buzz

Building Buzz

Bismarck-Mandan Home Builders Association

Page 11

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