Page 1

The MAB

Homefront

Autumn 2018

REGISTER YOUR TEAM FOR THE BAGS ‘N BUILDERS CORNHOLE TOURNAMENT!

ALSO IN THIS ISSUE

MONEY SAVING MEMBER BENEFITS BUILDERS BASH - GRAVEL PRODUCTS - DEC 6TH HOME AND GARDEN SHOW CONTRACTS COMING SOON OCTOBER IS CAREERS IN CONSTRUCTION MONTH! CARPENTER SHORTAGE REACHES NEW HIGH


The MAB

Homefront contents 4

Letter from the President

28-30 National News

4

Memo from the EO

5

PAC Corner

6-8

Membership

9-10

Staying Connected

1

Bags ‘n Builders

13

2018 Events

5

Money Saving Benefits

15-16

Contracting Concerns

13

Builders’ Bash

17, 19

MAB Update

18

Home and Garden Show

20

Realtors in the News

22

Careers in Construction Month

21-24

City, County and State

29

Carpenter Shortage

25-27

NDAB News

ON THE COVER

ADVERTISING DIRECTORY

The MAB Homefront || 2 || Autumn 2018

A-1 Evans Septic

8

Houston Engineering

19

Ackerman Estvold

15

Integrity Outdoor Living

2

Acme Tools

8

Kipp's Heating & Air

3

Acme Tools

11, 12

Landsiedel's Heating & Air Conditioning 2

All-State Contracting

9

Legacy Fence

3

Anderson Wade & Whitty

2

Lite-Form of Minot

24

B & B Insulation

9

Menards

back cover

Blake Krabseth

26

Mindt Construction

28

Bremer Bank

10

Minot Lumber and Hardware

25

Clean Tech

2

Minot Sash & Door

28

Coldwell Banker

back cover

Niess Impressions

10

Concrete Mobile

24

North Dakota Guaranty & Title

8

Connole & Somerville

28

North Star Steel

6

Dacotah Bank

29

Northern Prairie Home Improvement

16

Dakota Fence

back cover

Prairie Supply

3

Dawn Rasmussen

24

Ready Builders

16

Dig It Up

2

Real Builders

3

Farroh Roof Truss

29

ServPro

22

Ferguson

10

Signal Realtors

16

First International Bank & Trust

17

Souris River Designs

6

First Western Bank & Trust

28

SRT

3

First Western Insurance

5

SVR

16

Front Street Lighting

24

Tollefson's Carpetland

9

Future Builders

24

United Rentals

29

Glass Doctor

25

Verendrye Electric Cooperative

23

Grand Hotel

10

Watne Realtors

30

Gravel Products

16

Xcel Energy

back cover

MINOT ASSOCIATION OF BUILDERS


2018 BOARD OF DIRECTORS MELISSA FRANCISCO - PRESIDENT Dakota Stone and Granite

PAT BAILEY - VICE PRESIDENT

BOYD SIVERTSON

Pella Windows and Doors

SHANE LIDER

Muus Lumber & Hardware

Minot Lumber and Hardware

CHRIS DAHL - IMM. PAST PRESIDENT

KASPER ZIEGLER

ROB ORTS

PAT GRANER

AL SCHALL

BRUCE WALKER - SENIOR LIFE DIRECTOR

United Rentals

Verendrye Electric Northstar Steel

DAWN RASMUSSEN

Century 21 Action Realtors

PHIL RISBRUDT K & R Contracting

Burdick Job Corps Craft Builders

Coldwell Banker

JOE STENVOLD - LIFE DIRECTOR JAX Contracting

PLACE YOUR AD HERE! Call the MAB office to find out more. 852-0496

STAFF

Executive Officer: Elysha Head

2018 COMMITTEES EXECUTIVE

EVENTS

Melissa Francisco, Pat Bailey, Chris Dahl, Bruce Walker

Rob Orts, Phil Risbrudt, Lauri Hopwood, Amanda Geinert, Chris Dahl

HOME & GARDEN SHOW

PARADE OF HOMES

Kasper Ziegler, Loren Vannett, Sheila Melaas, Melissa Francisco, Morgan Bosch, Chelsea Gleich, Minda Stockdill, Mike Frank, Shane Lider

DelRae Zimmerman, Mataya Lafontaine, Kimberly Keller, Renata Buen, Pat Bailey

GUNS ‘N’ ROSES SHOOTOUT Pat Bailey, Casey Erickson

MEMBERSHIP Rob Orts, Dawn Rasmussen, Melissa Francisco, Chris Dahl

Your membership with MAB automatically enrolls you in: Minot Association of Builders North Dakota Association of Builders National Association of Home Builders

The MAB Homefront is the official publication of the Minot Association of Builders (MAB). The MAB Homefront is published four times per year to its members and others associated with the building industry. Neither the advertisers, nor MAB, will be responsible or liable for misinformation, misprints, typographical errors, herein contained. For advertising rates, resource file or address information, contact MAB. Suggestions, ideas and letters are always welcome! Minot Association of Builders (MAB) 606 Burdick Expressway West Suite B Minot, ND 58701 Phone: 701-852-0496 www.minotab.com | contact@minotab.com Like us! www.facebook.com/minotab Follow us! www.twitter.com/minotbuilders Pinterest with us! www.pinterest.com/minotab The MAB Homefront || 3 || Autumn 2018

2219 Elk Drive Minot, ND 58701 701-858-8061 MINOT ASSOCIATION OF BUILDERS


LETTER FROM THE PRESIDENT MELISSA FRANCISCO 2018 MAB PRESIDENT

A STRONG FINISH TO 2018 Labor Day is behind us, the first day of school has come and gone, the State Fair is over, and we’ll be driving hard to finish 2018 strong. Even as we plan to come out of the year with energy, I find myself reviewing our accomplishments thus far in 2018, and planning already for 2019. But perhaps even more broadly, fall seems like the right time to reflect on how we are doing as an industry. Is the MAB creating value for you as a member? Are we on top of industry trends and is our periscope up for future challenges you will face? Are we relevant? How can we create more value for you and make the business environment more favorable for your success?

I do believe we are relevant. As your industry association, we are achieving collectively what no single member could accomplish. We hope you close out 2018 in strength and that 2019 brings you continued success. Let’s finish the year strong and rise to even greater heights in 2019!

MEMO FROM THE EO ELYSHA HEAD MAB EXECUTIVE OFFICER

A YEAR OF PROGRESS We’ve arrived at the end of the year and it’s been a very busy and productive year. I wanted to give you a progress report on our activity for the year. Since I’ve begun work at the Minot Association of Builders, GUNS ‘N’ ROSES SHOOTOUT I can say with total certainty that we’ve revamped nearly Big changes happened to the Guns ‘n’ Roses Shootout! everything. That fact didn’t change in 2018. Below are a First, the event format is now a tournament format. Teams few changes that occurred this year! of 4 battled to become top dog! Find more details on the updates to the shootout later in the magazine. HOME AND GARDEN SHOW The Home and Garden Show is constantly evolving to MEMBERSHIP make it even better for MAB members and vendors. In We’re in the process of revamping our membership 2018, we adjusted the layout to help with the flow of traffic. committee right now! If you want to get involved, reach Overall, we heard good things about the change and will out to Elysha at contact@minotab.com or 852-0496 to find utilize it again in 2019. out more!

The MAB Homefront || 4 || Autumn 2018

MINOT ASSOCIATION OF BUILDERS


MEMBERSHIP

MEMBER BENEFITS

PAC CORNER

The MAB has brought together an array of members-only benefits that positively impact your bottom line. We seek companies that thoroughly understand the building industry and provide products at rates generally not available down the street. Give these folks a chance to see what they can do. We think you will find they can save you money and provide you better service.

VERIZON WIRELESS:: NPP offers members exclusive savings on a variety of Verizon Wireless services for business. Plus, you can also share Verizon discounts with your employees. Sign up today at www.mynpp.com.

SHERWIN WILLIAMS:: Time for a spring refresh? NPP members get exclusive discounts and personalized service from the nation’s largest specialty retailer of paints, coatings and painting supplies. Sign up today at www.mynpp.com.

The MAB Homefront || 5 || Autumn 2018

PRICELINE.COM:: Want to save on travel? Package your hotel, rental car and flight for savings of up to 25% OFF Priceline "On Sale" hotels! Use Priceline's convenient shopping cart technology for a seamless booking experience. Sign up today at www.mynpp.com.

The MAB donated more than $1,500 soft dollars to NDAB PAC after the Birdie with the Builders Golf Tournament! So what are soft dollars? Soft dollars are contributions not able to be attributed to a specific NAHB member and may be used for any purpose other than candidate or committee disbursements or donations. These funds help fund political fundraisers and events that support pro-housing candidate.

HARRY AND DAVID:: NPP members save on famous Harry & David gift baskets, fruit and gourmet food delivery for holidays, anniversaries, work events and more. Sign up today at www.mynpp.com.

MINOT ASSOCIATION OF BUILDERS


MEMBERSHIP

RENEWALS

We would like to extend a big THANK YOU to our members who renewed their membership or newsletter advertisement this season! Your continued support of the Minot Association of Builders helps us continue to work for you at a local, state and nationallevel. A-1 Evans Septic Tank Service | Cole Ritter www. a1evansseptic.com

Anderson, Wade & Whitty | Wayne Whitty www.andersonwadewhitty.com

Artistic Lights and Floors | Tory Holen www.artisticfloorsandlights.com

Burdick Job Corps | Kasper Ziegler www.quentinnburdick.jobcorps.gov

Christianson Heating | Chad Kinzell www.christiansonheating.com

Clean Tech | Chelsea Kirkhammer www.cleantechllc.us

Dacotah Bank | Lauri Hopwood www.dacotahbank.com

Dakota Stone and Granite | Melissa Francisco www.dakotastoneandgranite.com

Delzer Construction | Waylon Delzer www.delzerpostframe.com

Electric Service Co. | Ron Burckhard

First International Bank | Karen Engle www.firstintlbank.com

First Western Bank | Sabrina Hermann www.firstwestern.bank

Gateway Building Systems | Max Weppler www.gatewaybuilding.com

Gravel Products | Hallie Lock www.gravelproductsinc.com

Jost Construction | Darla Jost www.jostmasonryconstruction.com

Lowe’s Garden Center | Paul Beck www.lowesfloral.com

Menards | Jared Cowell www.menards.com

Miller Insulation | Todd Brady www.millerinsulation.com

Minot Builders Supply | Tom Phillion www.minotbuilderssupply.com

Montana Dakota Utilities | Todd Jensen www.montana-dakota.com

Northstar Steel, Inc. | Al Schall

OBASA Group | Jim Morken www.obasa.com

Peak Electric | Tim Peterson

Prairie Supply | Mitch Kraft www.prairiesupply.com

R & K Contractors | Darrel Kaylor

Ready Builders, Inc. | Stacey Abel www.readybuildersincminot.com

Redi-Rock | Ryan Holen www.redi-rock.com

Real Builders | Joel Feist www.realbuilders-nd.com

Sherwin Williams | Derek Klein www.sherwin-williams.com

Verendrye Electric | Rob Orts www.verendrye.com

Watne Realtors | Blake Krabseth www.minothomes.com

Winnelson | Bob Rodgers www.winsupplyinc.com XCEL Energy | Kathy Aas www.xcelenergy.com

The MAB Homefront || 6 || Autumn 2018

MINOT ASSOCIATION OF BUILDERS


MEMBERSHIP

MAB’S NEWEST MEMBERS

JULY - SEPTEMBER 2018 Joining the Minot Association of Builders is the first step to becoming more active in our industry. Please take a moment to welcome the newest members of our association.

TREND BUILDERS

YOU COULD BE THE NEWEST MEMBER OF THE MAB!

Chad Leier (701) 441-1090 trendbuilders@gmail.com

CONTACT US AT 701-852-0496 TO LEARN MORE!

ASHLEY LAWSON | BROKERS 12 ads@brokers12.com

BRANDY HALLAND | BROKERS 12 brandy@brokers12.com

ANGELA SIMONSON | BROKERS 12 angela@brokers12.com

KAUSHA BAKK | BROKERS 12 kausha@brokers12.com

TIFFANY ALBERTSON | BROKERS 12 tiffany@brokers12.com

MARK BICKLER | BROKERS 12 bicklerm@srt.com

KELSEY HUMPHREYS | BROKERS 12 ads@teamrockstars.com

JENNIFER VOLLMER | BROKERS 12 jennifer@brokers12.com

ALYX PEDERSON | BROKERS 12 alyx@brokers12com

DELRAE ZIMMERMAN | BROKERS 12 delrae@teamrockstars.com

MIKE BUSETH | ELITE REAL ESTATE mbuseth1@yahoo.com

NEIL GUSH | ELITE REAL ESTATE neilgush@minot.com

CASEY ERICKSON MUUS LUMBER AND HARDWARE casey.erickson@muuslumberandhardware.com

RON RUDSER MUUS LUMBER AND HARDWARE rmrudser@hotmail.com

LOREN VANNETT MUUS LUMBER AND HARDWARE loren.vannett@muuslumberandhardware.com

ART LAUTT MUUS LUMBER AND HARDWARE borse@minot.com

MEMBER ADVANTAGE OF THE FALL

Do you know how many discounts and services come with your MAB membership? Each quarter, we’ll highlight some of our favorites! NAHB is pleased to introduce Capital One® Spark Business®! Together, we want to help you put thousands of dollars back into your business. With the Spark® Cash credit card, you’ll earn unlimited 2% cash back on every purchase — plus, there is no annual fee to use your card. Head to www.nahb.org/savings to find out more! The MAB Homefront || 7 || Autumn 2018

top recruiters

Thanks to these members who have helped grow our MAB community by recruiting new companies to join our association. If you have a hot prospect, please contact Elysha Head (contact@minotab.com or 852-0496) and she’ll take it from there! (Reported thru 09/27/2018 from NAHB)

STATESMEN: (500-999 Credits) John Coughlin (501.5) SUPER SPIKES: (250-499 Credits) Bruce Walker (358) Todd Brady (353.5) Joe Stenvold (316.5) ROYAL SPIKES: (150-249 Credits) Gary Kramlich (206.5) Joel Feist (188) RED SPIKES: (100-149 Credits) Greg Aasmundstad (116) GREEN SPIKES: (50-99 Credits) Rob Orts (101.5) Jim Montgomery (75.5) Bill Huber (68) John Lund (67.5) Dave Lebrun (65.5) Cindy Snay (59.5) Kal Larson (56) Karen Engle (54) LIFE SPIKES: (25-49 Credits) Joe Kraft (40) Pam Karpenko (34) Mitch Kraft (29) BLUE SPIKES: (6-24 Credits) Eric Wanner (20) Clyde Thorne (18) Lauri Hopwood (15) Matt Geinert (13.5) Leonard Niess (9.5) Dwight Flygare (9) Stacey Abel (7.5) Kevin Connole (7) Phil Risbrudt (6) CANDIDATES: (1-5 Credits) Christopher Dahl (5) Todd VanDusen (4.5) Elysha Head (4) Pat Bailey (3) Steve Siemieniewski (2) Dale Zarr (1) Melissa Francisco (1) Al Schall (0.5)

MINOT ASSOCIATION OF BUILDERS


MEMBERSHIP

MEMBER SPOTLIGHT READY BUILDERS IS HARD AT WORK! Water is going in at the Galusha Ranch Addition! Lots are available for sale now, give them a call for more information! Ready Builders Inc. Stacey Abel 701-839-0149

SPRINKLERS PLUS finished up a sprinkler/drip irrigation at SuduWOK! Call Sprinklers Plus at (701) 852-1493 for help with your commercial or residential sprinkler needs.

TOWN & COUNTRY CREDIT UNION team members in Minot participated in a Habitat for Humanity - Northern Lights Chapter building project! The MAB Homefront || 8 || Autumn 2018

MINOT ASSOCIATION OF BUILDERS


STAYING CONNECTED

TECH MAKES HOME BUILDING EASIER AND MORE AFFORDABLE With construction costs rising and an ongoing land and labor shortage, it’s no secret that today’s home builders are struggling. New home inventory has dropped in recent months and prices on these properties remain high, sitting at a median sale price of $328,700 as of July, more than $73,000 over the national average. But all hope isn’t lost for cash-strapped buyers on the hunt for new construction. In fact, if they’re willing to get a little non-traditional in their approach, a great deal might not be that hard to come by—even in today’s competitive market.

DIGITIZING HOMEBUILDING With the help of a new digital platform called Edgewise, buyers can purchase new and in-the-works properties from builders, all online. The tool lets users reserve lots, make and negotiate offers, pay deposits, upload financial documents and even make design choices and upgrades to their property in its built-in “Design Studio.” Buyers can also get updates—via photos and videos—as their home’s build progresses. Streamline, a Philadelphia-based real estate developer, was one of the first builders to come on board the platform. According to Tristin Fletcher, director of sales and marketing at the company, Edgewise has made buying new construction more accessible—and more affordable—for many Americans. CUTTING OUT THE MIDDLEMAN Though buyers can certainly use real estate agents to aid in their Edgewise purchase, the platform is designed with direct buyer-to-builder transactions in mind. Builders pay a flat fee to list properties on the platform— usually around 1% of the purchase price. Using an agent to list that same property? That would cost 6% of the sales price. Because builders are able to save so much (about $15,000 on a $300,000 home, for example), they can typically make properties more affordable, as well as offer financial incentives to buyers. Streamline’s Fletcher confirms as much, saying pre-

The MAB Homefront || 9 || Autumn 2018

construction buyers get the best deals. They also have more opportunity to customize the home to their needs and preferences. Edgewise can also help cut costs when a community is built -out—and builders are ready to clear out inventory and move on. Builders using Edgewise also get the benefit of built-in customer management tools, payment processing and other services that would cost extra to bring in-house. For smaller builders, who have “razor thin” margins, this can be a game-changer.

“The main takeaway is that with more breathing room on their costs, builders have more flexibility to offer promotions, discounts, etc.,” Juncosa said. “The end result is that homes are more affordable for buyers and more profitable for builders. It’s a win-win for the main parties.” A MORE MILLENNIAL EXPERIENCE So far, Edgewise buyers have been largely Millennials. Though this could be due to the large share this cohort commands in the overall housing market, the platform’s more digital, streamlined experience may also play a role. Take early Edgewise buyers Kimberly and Tom Lehman, for example. In their late 20s at the time, the two Millennials started off their home buying process using a traditional agent, but eventually cut ties. In the end, the pair bought their new home solo using Edgewise’s tools. On top of the “very easy” experience, according to Kimberly, the couple was able to customize the property to their needs completely. On top of all this, the Lehmans were able to reserve their home with just a $1,000 deposit—a fraction of what most builders require on new construction. When their home’s build was delayed, Edgewise also covered the couple’s rent (about $9,000 total) until the property was finalized. Though their purchase and move are long over, the Lehmans might not be done interacting with Edgewise yet. The platform is planning to roll out additional features to improve postpurchase life as well. Community portals, warranty repair tools and more are in the works.

MINOT ASSOCIATION OF BUILDERS


STAYING CONNECTED

NO POWER? NO PROBLEM. Passive survivability features keep homeowners comfortable when a storm takes out the power. Storm-related outages are a fact of life. In March 2018, a nor'easter left more than 2 million people on the East Coast without power. Hurricane Irma put out the lights for 7.6 million in September 2017. New Hampshire residents still talk about the 2008 ice storm that left two-thirds of the state's residents in the dark, some of them for weeks. Today, builders can create resilient homes that stand up to wind, rain, and snow, and then maintain occupant comfort for days without power. "It's called passive survivability," says Alex Wilson, president of the Resilient Design Institute in Brattleboro, Vt. "It's about building homes that remain habitable if they lose power.” Homes built with passive survivability features always include a super-efficient envelope with good insulation and air sealing and energy-efficient windows that take advantage of passive solar gain and natural ventilation. Solar panels and home batteries can further improve a home’s resilience during an outage.

PLACE YOUR AD HERE! Call the MAB office to find out more. 852-0496

Sealing the Envelope The building envelope needs code-mandated structural features such as tiedowns to resist uplift and shear panels to keep the frame from racking in high wind zones, as well as meticulous waterproofing that includes the window manufacturer's recommended flashing. In areas subject to windborne debris, impact-resistant windows reduce the chance of a breach that would let wind and water through. Air pressure cycling during a hurricane can pull windows from their openings so make sure to use the clips or bolts required by the manufacturer.

After the storm passes, good insulation, careful air sealing and high R-value glass will help keep the home livable. "Passive survivability relies on the sustainable design features that have been actively promoted by the green building community," says Wilson. Even if the power never goes out, sustainbilty practices improve a builder’s reputation: a home with a waterproof envelope is less prone to mold and mildew. Insulation, air sealing and high-performance windows reduce monthly utility bills. Resilient Design Some builders are implementing passive survivability features in all their homes. Thrive Builders in Denver will complete more than 200 homes this year that qualify for the DOE's Net Zero energy certification. "We've decided to make Zero Energy a part of the brand," says CEO Gene Myers. All of Thrive's homes include solar panels and battery backup. "If there's an outage you will still have power. One battery can carry basic lighting, a refrigerator/freezer, and the furnace or heat pumps," says Myers. While some builders offer these as options, Thrive has made them standard equipment.

The MAB Homefront || 10 || Autumn 2018

MINOT ASSOCIATION OF BUILDERS


EVENTS CALENDAR

2018 UPCOMING EVENTS OCT. 18

OCT. 19

NOV. 7

NOV. 29

www.nahb.org/savings The MAB Homefront || 13 || Autumn 2018

MINOT ASSOCIATION OF BUILDERS


2018 MINOT ASSOCIATION OF BUILDERS THE MAB HOMEFRONT ADVERTISING RATE AGREEMENT

The Minot Association of Builders is pleased to provide our members with a quarterly, full-color, 32 page magazine, The MAB Homefront. This publication is a great opportunity for you to showcase your business to members and their organizations. The MAB Homefront informs readers of building trends, local updates, legislative issues and upcoming events. Full color ad placements are available throughout the magazine. Your advertisement is an investment that very likely will direct your business in the right direction. Our goal at the Association is to promote members to do business with members, what a great opportunity to showcase your products and talents. Sincerely, Elysha Head Executive Officer, Minot Association of Builders

2018 MAB HOMEFRONT ADVERTISING RATES Ad Size

Specifications

Investment

Brick and Block Business Card (Yearly Rate)

2.54” W x 1.67” H

$120.00

Double Up Draft - Vertical Placement (Yearly Rate)

2.54” W x 3.34” H

$240.00

Double Up Draft - Horizontal Placement (Yearly Rate)

5.08” W x 1.67” H

$240.00

Triple Slot Tooling - Vertical Placement (Yearly Rate)

2.5” W x 5.12” H

$360.00

Triple Slot Tooling - Horizontal Placement (Yearly Rate)

7.62” W x 1.67” H

$360.00

Third Page Plaster Master (Yearly Rate)

7.62” W x 3.34” H

$648.00

Half Page Header (Yearly Rate)

8.5” W x 5.5” H

$800.00

Major Beam Full Page (PRICED PER SEASON - 4 seasons per calendar year)

8.5” W x 11’ H

$300.00 per season OR $1000 (if entire year purchased)

CALL THE MINOT ASSOCIATION OF BUILDERS TODAY - 701-852-0496 Customer’s Business Name: Customer’s Business Contact: Customer’s Business Address: Phone Number:

Email:

Advertising Agreement (Circle Choice):

Brick and Block · Double Up Draft (V) · Double Up Draft (H) · Triple Slot Tooling (V) · Triple Slot Tooling (H) · Third Page Plaster Master · Half Page Header · Major Beam Full Page

Customer’s Signature Subject to Conditions Stated Below:

All advertisements are subject to cancellation if payment is not made 2 weeks after advertisement request.

MAKE CHECKS PAYABLE TO:

Minot Association of Builders · 606 Burdick Expressway West Suite B · Minot, ND 58701 · 701-852-0496

EMAIL AD COPY TO ELYSHA AT: contact@minotab.com

The MAB Homefront || 14 || Autumn 2018

MINOT ASSOCIATION OF BUILDERS


CONTRACTING CONCERNS

HOUSING'S SUMMER SOFT PATCH CONTINUES Rising interest rates and declining housing affordability caused housing demand to weaken slightly this summer. On a seasonally adjusted annual basis, the pace of new home sales in each of the previous three months was slower than any other month so far this year. This soft data for both sales and single-family starts coincided with declines in resale activity, as some buyers pulled back from a market that saw notable increases in home prices largely driven by low inventory. The softening demand has also led to a recent deceleration of home price growth. Nonetheless, the single-family and multifamily markets continue to expand. Multifamily starts are up 8% on a year-to-date basis through August. Single-family starts are up 6% and new, single-family home sales are up 7%. Home builder confidence continues to be solid, and macroeconomic conditions remain strong, with improved GDP growth and a hot labor market. Looking forward, NAHB is forecasting continued, modest growth for residential construction, tempered by rising interest rates. Indeed, the Federal Reserve raised the federal funds rate by 25 basis points this week — the third such rate hike of 2018. While this indicates the economy is continuing to perform well, it is also a sign that the cost of buying a home will continue to increase in the months ahead.

–NAHB Chief Economist Robert Dietz

The MAB Homefront || 15 || Autumn 2018

MINOT ASSOCIATION OF BUILDERS


CONTRACTING CONCERNS

U.S. CAN’T AFFORD TO BE AN INFASTRUCTURE DROPOUT

Specializing In All Types of Real Estate 701-852-3505 1541 South Broadway*Minot 800-735-4065 office@signalrealtors.com

College students with a D+ average would be unceremoniously picked up in mom’s SUV and hauled back home in disgrace. Handed out in 2017 by the American Society of Civil Engineers (ASCE), U.S. infrastructure’s D+ is considerably more complex, infinitely more expensive – and yet, says ASCE Executive Director Tom Smith, completely reversible. If anyone can take us to school on solving the mess, it’s Tom. In addition to undergraduate and graduate degrees in engineering, he has a law degree from Washington & Lee University and is a certified association executive (CAE) as well as Envision Sustainability Professional (ENV-SP). Before being appointed to his current position in 2015, Tom served as ASCE’s deputy executive director and was general counsel before that. Yes, the 16 categories rated by ASCE are suffering from dire neglect, and yes, the cost to reverse Ds to Bs is a mind-frosting $2 trillion over 10 years. But when Tom delivers the keynote address at the Infrastructure Imperative conference this Nov. 13-15 in Cleveland, attendees will learn the challenges are solvable through sustained strategic investment, bold leadership, and comprehensive planning. Describe your feelings and mood of your ASCE colleagues about the 2017 report card. Tom: I’m an eternal optimist! We’ve had more success each time educating folks on the severity of the problem and, in many ways, changed the conversation when it comes to understanding the problem. You heard a great deal of discussion about it during the presidential election, and the current administration has had a fair amount of focus on construction. But having been at this as long as I have, there’s also a certain amount of concern and a certain amount of frustration and impatience. As a nation, we’ve let this go for so long that now, frankly, there’s a certain amount of The MAB Homefront || 16 || Autumn 2018

urgency. Do you think the public is fully informed? Tom: At some level, yes. They sit in traffic, and they’re frustrated with that. If you’ve traveled abroad and compared [us] with other places, you see how badly we’re falling behind. So a segment of the population understands it because they’re experiencing it, but I don’t think people understand the extent of the problem. Why? Because so much infrastructure is out-of-sight-out-of-mind. Until you have a crisis, until you have that water line break that’s in your town or neighborhood, you don’t really appreciate it. You might read about it in the paper; it’s happening in some other city, so it’s not impacting you directly. People don’t appreciate infrastructure until it disappears one day and you can’t ride the metro, you can’t get drinking water, you don’t have power. I know eyes gloss over when they see all the zeros associated with infrastructure needs. But think of your house or your car. Try not maintaining those for just a few months – or go for a year – and you can imagine what will happen, especially with a car. If you’re not changing fluids and doing basic maintenance, it’s amazing how fast it deteriorates ... and it’s amazing how much more the cost goes up the longer you don’t maintain it.

Two trillion dollars is an almost unfathomable sum ... can we really get there? Tom: It’s not spending; it’s investing. Investing in infrastructure creates jobs, moves your economy forward, makes you globally competitive. There’s really no choice. Is it a large number? Yes. Relative to the entire budget? No. And are there solutions? Absolutely. A lot of it will be leadership. It’s going to require our industry to speak with one powerful voice – to make sure people understand the extent of the problem and the solutions. MINOT ASSOCIATION OF BUILDERS


MAB UPDATE

THE GUNS ‘N’ ROSES SHOOTOUT WAS A KNOCKOUT! Best Shot – Individual Steve Kukowski – 74 out of 75 Best Shot – Team Muus Lumber (240 out of 300) Team Scores Muus Lumber – 240 Future Builders – 239 Town & Country – 214 Steen Construction – 207 MRPC – 207 MRPC – 197 Core & Main – 197 First Western Insurance – 192 United Rentals – 170 Door Prize Winners Justin Hochhalter Collin Smith Eric Wanner Matt Geinert Kyle Morey Jim Duffy Wes Thomas Best Team Theme Jim Duffy Dean Graves Wes Thomas Doug Steltzer Best Individual Attire David Buen THANK YOU TO OUR SPONSORS! Minot Rifle and Pistol Club, Town & Country Credit Union, Sportsman’s Loft, First Western Insurance, Minot Automotive, Scheels, Core & Main and Muus Lumber and Hardware

The MAB Homefront || 17 || Autumn 2018

MINOT ASSOCIATION OF BUILDERS


FRIDAY, MARCH 1ST 12 PM - 7 PM SATURDAY, MARCH 2ND 10 AM - 5 PM

NDSF CENTER MAGIC PLACE ROOM CHECK OUT THE NEW WAYS TO PROMOTE YOUR BUSINESS AT WWW.MINOTAB.COM/HOMESHOW!

Want to be a vendor? Select your booth space and register online at

www.minotab.com/homeshow

FOR MORE INFORMATION HEAD TO WWW.MINOTAB.COM/HOMESHOW The MAB Homefront || 18 || Autumn 2018

MINOT ASSOCIATION OF BUILDERS


MAB UPDATE

BIRDIE WITH THE BUILDERS WAS A HIT! Tourney 1st Place Winner – General Equipment Tourney 2nd Place Winner – Steen Construction Tourney 3rd Place Winner – Brady Martz Highest Score – Landsiedel, Alex, Dunn, Jensen Golf Poker – Wayne Johnson – $220 Winner Men’s Longest Drive Contest – Justin Aberle Women’s Longest Drive Contest – Dawn Phillion Best Team Theme Award – Verendrye Electric Closest to the Pin – Hole 5 – Pat Bailey Closest to the Pin – Hole 7 – Jill Alex Closest to the Pin – Hole 10 – Mark Peterick Closest to the Pin – Hole 11 – James Grandy Closest to the Pin – Hole 13 – Casey Schriock Longest Putt – Chad Ransom OutDrive the Pro – Justin Aberle Putting Contest – Sid Belzer Golf Tee Guess – Chris Knittel Builder Ball Drop – Brock Deslauriers Best Tee Box Partner – Pella Windows

The MAB Homefront || 19 || Autumn 2018

THANK YOU TO OUR 2018 SPONSORS First Western Bank, Town & Country Credit Union, SVR, Ryan Chevrolet, Bremer Bank, Minot Lumber & Hardware, North Star Steel, Coldwell Banker 1st Minot Realty, Muus Lumber and Hardware, Verendrye Electric, Connole and Sommerville, Heartland Pella, Century 21, Houston Engineering, First International Bank, Rolling Hills Lumber, Minot Builders Supply, ND Guaranty, Ackerman Estvold, Midco, Minot Sash & Door, Tollefson’s Carpetland, Creative Printing, Sundre Sand & Gravel, Marketplace Foods, General Equipment, Dacotah Bank, Brady Martz, Gravel Products, Berman Insurance

MINOT ASSOCIATION OF BUILDERS


REALTORS IN THE NEWS

COLDWELL BANKER Lorell Seibold was the Agent of the Month for August at Coldwell Banker 1st Minot Realty. Lorell can be reached at 701-720-7214996 or 701-852-0136 or emailed at seibold@srt.com Lori Henderson was the Agent of the Month for August at Coldwell Banker 1st Minot Realty. Lori can be reached at 701-721-0158 or 701-852-0136 or emailed at lorihenderson@srt.com. Meet Your Realtor - Dawn VerBruggen I have been with Coldwell Banker Real Estate for 15 years. I specialize in Residential, Relocation and new build construction, having sold many homes in the Minot area. I offer each individual customer an extensive array of personalized professional services. I have the Strength, skills and strategies to help you buy or sell your home quickly and efficiently. I am a full time resident in Minot. I have 2 boys, Cole and Jesse. I have had local businesses in Minot since 1989. I can be reached at 701-720-2034 or visit my website at HomesinMinot.com.

BROKERS 12

WATNE REALTORS Hi! I’m Janea Martell and I’d like the opportunity to earn your business. I have a passion for helping others, so being a REALTOR is a natural fit for me. I understand that change is hard, whether it’s moving into a new house and community or out of a home that holds many memories. Let me be there by your side to help with the transition every step of the way. Trust me, I know the feeling, I’ve been there. My husband, Brian and I moved to Minot from MN and love the area. When I’m not working with a homeowner or soon to be homeowner, you’ll find us out enjoying fishing, hunting or watching the gorgeous North Dakota sunsets. We’re blessed with 5 children and 5 grandchildren that are amazing! Contact me by phone at 320 -333-5264 or by email at janea@minothomes.com. I can’t wait to meet you!

Congratulations, Judy Hoskin, Sales Professional at Watne Realtors for August, 2018. Judy can be reached by calling 721-3837 or 852-1156 and by email at judyh@minothomes.com.

Congratulations, Carrie Montoya, Top Producer at Watne Realtors for August, 2018. Carrie can be reached by calling 2400709 or 852-1156 and by email at carriecornhusker@aol.com

THE MAB GOES MOBILE Share your cell phone number to receive periodic alerts about events and special member -only offers! Head to the link below to sign up! www.minotab.com/ texting The MAB Homefront || 20 || Autumn 2018

MINOT ASSOCIATION OF BUILDERS


CITY, COUNTY AND STATE

MINOT BUILDING PERMITS 1200 1000 800 600 400 200 0

840 1056 363 292

LUMBER, OSB PRICES RETREAT IN AUGUST

1133 598 191

209 60 38 95 2 43

181

47

2011 2012 2013 2014 2015 2016 2017 2018 Single Family

Multi-Family

Perhaps the most concerning news in the report was the relatively sharp increase in prices paid for gypsum products. Prices have climbed 6.1% (seasonally adjusted) since a twomonth reprieve that saw the gypsum index decline 3.3% between May and July. February to April 2016 was the last two -month period in which gypsum prices rose by 6% or more.

WARD COUNTY BUILDING PERMITS 43

50 40 30 20 10 0

33 18 5 2012

17

4

5

2013

2014

Single Family

$600 $550 $500 $450 $400 $350 $300 $250

2

2015

9

2

9 6

2016

2017

From January to August of 2017, the price index of gypsum products rose 3.9%. The index has more than doubled that pace in 2018, having increased 8.2%, year-to-date. On a more sanguine note, softwood lumber and OSB prices each decreased substantially in August (not seasonally adjusted). Softwood lumber fell 9.6%, its largest monthly decline per the PPI in over seven years (May 2011).

Commercial

2015-2018 LUMBER PRICES

2015

2016

2017

Residential construction goods input prices declined, on average, in August as large monthly increases and decreases offset each other, according to the latest Producer Price Index (PPI) release by the Bureau of Labor Statistics. Although the index for inputs to residential construction fell by 0.5% (not seasonally adjusted), it has increased more than twice as much in 2018 (+4.9%) as it did over the same period in 2017 (+2.0).

Similarly, the index for prices paid for OSB (and waferboard) decreased by 11.8% in August, the largest such decline since July 2013. As expected, the August PPI release captured more decreases in prices paid for softwood lumber that began in mid-June. Even after accounting for the most recent price movements, the average price paid for softwood lumber in 2018 remains the highest on record according to Random Lengths data—22.0% above the prior record set in 1997.

2018

The prices listed below provide an overview of the behaviors within the U.S. framing lumber pricing market. The information is sourced each week using the Random Lengths Framing Lumber Composite, which is comprised using prices from the highest volume-producing regions of the U.S. and Canada. Information provided by Random Lengths.

The index for ready-mix concrete (RMC) prices fell (-0.1%), the fourth consecutive monthly decrease after increasing in 10 of the preceding 11 months (seasonally adjusted). After an uncharacteristically large monthly increase in March—when the index rose 3.3%–the PPI for RMC has fallen back in line with its long-run trend.

MINOT BUILDING PERMITS - AUGUST 2018

BUILDING PERMIT TYPE

NUMBER OF PERMITS

PERMIT VALUATION

Single Family Dwelling Townhouse Dwellings Relocation Residential Industrial/Agricultural Minot Structures Other Than Buildings Residential Remodel Residential Addition Commercial Remodel Commercial Addition Detached Garages and Carports Attached Garages and Carports Accessory Buildings Decks Egress Windows Mobile Homes Temporary Structures Demolition Residential Demolition Commercial TOTAL

6 2 2 1 1 7 3 13 2 9 1 6 5 2 3 5 13 1 82

$371,000.00 $20,000.00 $10,000.00 $364,000.00 $17,000.00 $237,000.00 $213,200.00 $1,204,000.00 $348,000.00 $1,806,000.00 $85,000.00 $33,000.00 $39,000.00 $12,000.00 $7,000.00 $5,000.00 $89,500.00 $59,000.00 $3,294,300.00

The MAB Homefront || 21 || Autumn 2018

MINOT ASSOCIATION OF BUILDERS


CITY, COUNTY AND STATE

MINOT CITY COUNCIL PASSES 2019 BUDGET

GOVERNOR BURGUM DECLARES OCTOBER CAREERS IN CONSTRUCTION MONTH

Minot’s City Council approved the budget at their meeting on September 26th. The $179 million budget is a $37 million increase from last year, due largely to investments in flood protection and the Northwest Area Water Supply project. City officials say 14 percent of the budget is covered by property tax. The council approved the budget by a vote of 6-1, with Alderman Shannon Straight as the lone ‘no’ vote. “I feel that it puts us on a fiscally responsible and sustainable path, and gets us away from collectively kicking a lot of this spending down the road for future budgeting generations to worry about,” said Minot Mayor Shaun Sipma. “I'm not keen on the fact that we have to raise taxes but I think, based on my experience in city government and the priorities of the administration as set based on our directives, I think we've done about everything we can to minimize expenses, and I think that we've done everything we can to maximize resources,” said Aldrerman Stephan Podrygula.

PLACE YOUR AD HERE! Call the MAB office to find out more. 852-0496

of Minot The MAB Homefront || 22 || Autumn 2018

MINOT ASSOCIATION OF BUILDERS


CITY, COUNTY AND STATE

MINOT NAMED CITY OF THE YEAR Minot is the North Dakota League of Cities’ 2018 City of the Year. The award, given in a category for larger cities in the state, was announced at the NDLC’s annual conference this past weekend in Grand Forks. “It truly is an honor to receive this recognition from the North Dakota League of Cities,” Minot Mayor Shaun Sipma said in a prepared statement. “We certainly thank them for this award and for recognizing some of our major past achievements, but we also know our great city has much work ahead as we continue to move forward in creating a more resilient community.”

Several accomplishments were key to Minot earning the recognition, according to NDLC Executive Director Blake Crosby, who presented the award. Those projects include: • Completion of the three-year, $29 million downtown Minot infrastructure project that helped revitalize downtown and prepare it for future development. • Ongoing work on the Northwest Area Water Supply project to provide a source of reliable drinking water for Minot and other cities in the region. • The ongoing Mouse River Enhanced Flood Protection project that will ultimately protect the entire basin from future flooding. • Completion of a flood wall to protect the Minot Water Treatment Plant from future flooding. • The introduction of automated garbage collection. The downtown infrastructure improvement project was a major accomplishment in providing an incentive for developers and businesses to consider downtown, said Roger Reich, president of the Downtown Business & Professional Association.

The MAB Homefront || 23 || Autumn 2018

“That project will probably keep us going for another 100 years. It was a trying time,” he said of the three years of construction, “but the city did a great job of trying to keep ahead of it and keep business owners informed on what was happening and trying to keep everything on track. In the end, I think it’s a great deal.”

John MacMartin, president of the Minot Area Chamber of Commerce, said it can be difficult in the day-to-day of living and working in Minot to gain the broader perspective that enables a community to see how far it’s actually come. The NDLC award shows that other cities are seeing positive things happening when they look at Minot, he said. “Awards that you get from your peers are some of the best,” he said. “To be recognized as City of the Year by our peers – meaning the cities in the state of North Dakota – is an extreme compliment.” “Minot has been doing so many great things for years, and it’s really an honor that the NDLC has recognized us as a major municipal leader,” City Manager Tom Barry said in a news release from the city. “Bringing focus to our accomplishments has been one of my major goals since I started with the city less than two years ago. Expect more in the coming years.” “Minot exemplifies the North Dakota spirit we are all so proud of,” Crosby said in the release. “When something bad happens, we don’t wallow in self-pity. We get up, dust ourselves off, check for scrapes and bruises, and get to work. The Magic City is alive and well.”

The City of the Year honor was established in 1984 to recognize North Dakota cities for the quality, number and progressiveness of activities undertaken in the community. This is the first time Minot has won the award.

MINOT ASSOCIATION OF BUILDERS


Extend Your Construction Season!

CITY, COUNTY AND STATE

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Park South Apartments, the City of Minot’s first affordable housing rehabilitation project supported by the National Disaster Resilience (NDR) Program, is complete. Local and state official celebrated the project’s completion with a ribbon cutting on Tuesday, Aug. 21.

that live at Park South have a place to live that is both safe and desirable,” said NDHFA Executive Director Jolene Kline.

The project received additional support through the North Dakota Department of Commerce, $714,950 from the Governor’s Community Development Block Grant Discretionary Funds for the The apartment building is one of the first storm water management work that projects in the country completed benefitted the whole neighborhood; and between the recipients of the 13 NDR an interest-rate buy down from Bank of grants provided by the U.S. Department North Dakota’s FlexPACE program. The of Housing and Urban Development total project cost exceeded $7.4 million. (HUD) program. “Minot was extremely fortunate to “We’re proud that Minot continues to be receive the NDR Funds, and we are an example for how the NDR Program is pleased that this project really expected to help communities,” said demonstrates how the private sector Mayor Shaun Sipma. “This project was a can work with the public sector to great first step for what we want to do as provide affordable housing for our a city with HUD using NDR, and it’s a community,” said Essential Living great illustration of what all three levels President Bruce Walker. “Working with of government working together can the City of Minot, North Dakota Housing accomplish with the private sector.” Finance Agency, and our other project partners has been a very positive The City of Minot received a $74.3 experience.” million HUD grant through the NDR program, $21 million is designated for Located at 234 14th Ave SE, Park South affordable multifamily housing. It was constructed in 1948 and originally awarded $1.97 million to Essential Living served as a convent. It was converted Inc., the non-profit owner of Park South, into apartments in the 1980s with the last to renovate the building’s 35 existing major renovation taking place at that apartments and add five new units. time. Essential Living updated all of the Seventy-five percent of Park South’s existing units’ kitchens and bathrooms, apartments are now reserved for income plumbing, electrical, hardware and -qualified households, four of these units flooring. are fully handicapped accessible. The building’s common areas were also renovated, asbestos was abated, the “The project completion on a timely original coal burning boiler was basis fulfils a critical commitment the replaced, and a new entrance, air city made in 2016 when HUD approved conditioning and an elevator were the NDR Action Plan,” said Disaster added. Resilience Program Manager John Zakian. “Park South’s completion is a Many of Park South’s tenants lived at the milestone for the City of Minot in property prior to the renovation. The carrying out the goal of fulfilling unmet developer phased construction so that housing needs in the community.” those households would not be displaced during the renovation. Essential Living also received $2.23 Currently, 22 of the building’s 40 million from North Dakota Housing apartments are rented. Individuals who Finance Agency (NDHFA) through the would like to learn more about Park Housing Incentive Fund. The state’s South can contact the property program supports the development and manager, 1st Minot Management, at (701) preservation of affordable multifamily 839-7505. Information is also available rental housing targeted to low- to online, www.essentiallivingminot.com. moderate-income households and essential service workers. Essential Living plans to construct affordable patio homes on the five acres “The assistance North Dakota Housing that adjoins Park South. If they are able Finance Agency provided through the to secure the financing needed, Walker Housing Incentive Fund extended the anticipates starting that project next affordability of these homes, and year. ensures that the individuals and families The MAB Homefront || 24 || Autumn 2018

MINOT ASSOCIATION OF BUILDERS


NDAB NEWS KIM SCHNEIDER

NDAB CHIEF EXECUTIVE OFFICER

HEADING TO THE POLLS November 6, 2018 is the official general election day. It is the day that North Dakota citizens, and everyone across the nation, will head to the poll to cast their vote for those they feel will best represent their views. Regardless of your political views, election day is a very important time and is about exercising your right to vote.

If you are unavailable to go to your polling location on election day or maybe you prefer to cast your vote from the comfort of your own home, absentee voting is also an option. You can receive an absentee ballot by submitting a request with the valid information required to vote through the ND Secretary of State.

In North Dakota, voters will select one United States Senator, one United States Representative, Secretary of State, Attorney General, and several other statewide executives and judicial branch offices. Voters who live in odd-numbered legislative districts will also select their representatives to the ND House of Representatives and North Dakota Senate. Voters may also face any number of constitutional amendments, initiated measures, or referred measures placed on the ballot by petition.

To learn more about voting in North Dakota or to educate yourself on which candidates and issues will be on the November ballots, please visit the ND Secretary of States website at www.sos.nd.gov. Voter information, candidate information, dates, locations and even election results will all be made available here.

Since North Dakota is the only state without voter registration, we want to ensure you are prepared to vote. Below is some information to know ahead of time:

"Nobody will ever deprive the American people of the right to vote except the American people themselves and the only way they could do this is by not voting." -Franklin D. Roosevelt Take care,

In order to vote in North Dakota, you must be: • A citizen of the United States; • Eighteen years or older on the day of election; • A resident of North Dakota; • A resident in the precinct at least thirty days immediately preceding any election; and • Able to provide a North Dakota driver’s license, nondriver ID, or tribal ID that includes your current residential address and date of birth. Ensure that your identification included your name, current residential or mailing address and date of birth.

Kim Schneider

PLACE YOUR AD HERE! LUMBER

BUILDING MATERIALS

Call the MAB office to find out more. 852-0496

OPEN 7:30 AM TO 5:30 PM MON-FRI

COMPLETE LINE OF BUILDING MATERIALS FOR EVERY NEED The MAB Homefront || 25 || Autumn 2018

MINOT ASSOCIATION OF BUILDERS


NDAB NEWS DAN LINDQUIST NDAB 2018 PRESIDENT

Recent natural disasters remind us that our lives can quickly be turned upside down with little warning. As a homeowner, there are actions you can take to prevent or mitigate damage and life-threatening situations. I’m including some tips and resources here but before I do, I want to tell you how you can help your local community when people need life-giving blood due to an illness or injury. I am proud to announce that NDAB is hosting a Battle of the Builders Blood Drive at each area throughout October and early November. Donating blood takes approximately 15 to 30 minutes of your time and helps to replenish blood banks which serve your area hospitals that need ongoing support. The first blood drive kicks off on October 4 in Bismarck followed by Dickinson on October 8, Williston on October 17 and Minot on October 19. We continue with November 6 in Grand Forks and the final drive on November 7 in Fargo. As the date for your local event approaches, I encourage members to schedule an appointment through the link available via NDAB emails or on the NDAB Facebook events. Also, you do not have to be a member to donate so please invite a family member or friend to join you!

to see what wireless emergency alerts are offered by your state or local public safety officials and sign up to receive the latest news. DEVISE A SHELTER PLAN. Depending on the emergency, you may be required to evacuate or seek shelter in another location. Or, you may be advised to stay at home and shelter-in-place. Review the recommended shelter plans for the type of disasters that are likely to affect your area. For example, with a tornado warning, you should seek shelter in a basement or an interior room on the lowest level away from corners, windows, doors and outside walls. CREATE AN EVACUATION PLAN. If necessary, you’ll need to have an evacuation plan. You may have a few days to prepare or you may need to leave your home immediately. That’s why it’s important to assemble supplies ahead of time. DEVELOP A HOUSEHOLD COMMUNICATION PLAN. Your family or other household members may not all be together when disaster strikes. That’s why it’s important to know how you will communicate with the members of your household during a disaster. Visit the Federal Emergency Management Agency’s (FEMA’s) Ready.gov website for more information.

Here are a few emergency preparedness tips:

See you at Battle of the Builders! SIGN UP FOR EMERGENCY ALERTS. Discuss with your family or household members how you will each receive emergency alerts and warnings. Check

Dan Lindquist

PLACE YOUR AD HERE! CALL THE MAB OFFICE TO FIND OUT MORE.

852-0496

The MAB Homefront || 26 || Autumn 2018

MINOT ASSOCIATION OF BUILDERS


NDAB NEWS

AROUND THE STATE DICKINSON AREA BUILDERS ASSOC. LINDSAY LANGE, EXECUTIVE OFFICER 701-483-0044 | DICKINSONAREABUILDERS.COM

• • •

Planning is underway for the 2019 Home Show. Planning will begin soon for our annual Christmas Party. DABA is excited to partner with the Dickinson Area Chamber of Commerce to help grow and improve the Dickinson Builders Exchange.

HOME BUILDERS ASSOC. OF FARGO-MOORHEAD BRYCE JOHNSON, CHIEF EXECUTIVE OFFICER 701-232-5846 | HBAFM.COM • The 3rd annual HBA Happy Hour to celebrate the Fall Parade of Homes and Remodel Home Tour is Oct. 9. This parking lot party is hosted at Floor to Ceiling Carpet One and features free Junkyard Brewing Company beer, food, dessert demos by Nichole's Fine Pastry and prize drawings!

• •

($259,900) and highest priced home ($1,250,000).

• Members from across the state are welcome to join the BMHBA for its Fall Awards Mixer and Board Elections on Oct. 23. Information and registration is available online at bmhba.com/ events.

FORX BUILDERS ASSOCIATION STACY ANDERSON, EXECUTIVE OFFICER 701-746-4536 | FORXBUILDERS.COM • Forx Builders Association hosted their 25th Annual Golf Outing at Valley Golf Course on September 12th. We had 116 registered golfers and despite cooler temperatures, 118 golfers turned out! It was a great time of networking, friendly competition, food and fun • Our General Membership Meeting is scheduled for Monday October 8th at the CanadInn Grand Forks. We are pleased to announce that UND's new Athletics Director, Bill Chaves, will be our guest speaker. • Get your tossing arm ready....the 2nd Annual Bean Bag Tournament and Chili Cook Off is set for Saturday November 17th.

The HBA of F-M's final member meeting of the year is Oct. 25. The Awards Gala & Annual Meeting is a chance to recognize members for their volunteer efforts and present the HBA's NDAB 2018 PROFESSIONAL BUILDERS highest honors. In addition, Randy Noel, NAHB Chairman of the • Don Dabbert Jr.-Dabbert Custom Homes Board, will speak • Todd Williams-Todd Williams HBA of F-M Remodelers Council members engaged in • Construction, LLC community service at the end of August to build a ramp for a • Mike Workman-Jordahl Custom Homes man fighting stage-four small-cell lung cancer, bone cancer and liver cancer. • Charles Bon-C’est Bon Construction, Inc. • Vern Hanson-Hanson Bros., Inc. HBA of F-M Public Issues Committee members and board of directors enjoyed socializing with candidates and current • Eric Berg-Eric Berg Construction, Inc. legislators at the Legislative Social. • Michael Bullinger-Western Productions The Fall Parade of Homes and Remodeled Home Tour ran the • Jason Eid-Eid-Co Homes last weekend in September and first weekend in October. There • Tom Spaeth-Accent Kitchen & Bath were over 54 homes and 5 remodel projects. • Mark Spriggs-M & J Construction, Inc.

WESTERN AREA BUILDERS ASSOCIATION AMBER ELIZONDO, EXECUTIVE OFFICER 701-572-5744 | WILLISTONBUILDERS.COM • Exciting news Williston Area Builders Association has proudly been serving Williams, Divide, Burke, Mountrail and McKenzie counties. We are not just Williston and have officially changed our name to the Western Area Builders Association! • 2019 Home and Garden Show planning has begun! We are looking to add more “Kids” items at the event. Kids will get the parents in the door! BISMARCK MANDAN HOMEBUILDERS ASSOC. DOT FRANK, EXECUTIVE OFFICER 701-222-2400 | BMHBA.COM • The 2018 Fall Parade of Homes was Sept. 27-30. More than 30 homes where featured with a wide spread between the lowest

• • • • • • • • •

Tyrone Leslie-Heritage Homes Todd Halle-T & S Custom Homes, Inc. Robert Leslie-Designer Homes Charles Zach-Zach Construction, Inc. John Gunkelman-Dakota Construction Greg Krueger-Krueger Construction Robert Kochmann-Kochmann Brothers Homes, Inc. Gary Orth-Cornerstone Specialties

THE NDAB IS PROUD TO ANNOUNCE A NEW PROGRAM THIS YEAR FOR OUR ASSOCIATES. APPLY NOW! FOR MORE INFORMATION ABOUT NDAB’S PROFESSIONAL BUILDERS PROGRAM OR THE NDAB’S PROFESSIONAL ASSOCIATES PROGRAM CONTACT SARA@NDBUILD.COM OR 701-222-2401.

Back your PAC … your PAC backs you!

NDAB-PAC is the North Dakota Association of Builders’ Political Action Committee. It is a non-partisan political action committee that provides support for candidates who are friends of the building industry. Contact NDAB at (800) 326-4746, (701) 222-2401 or info@ndbuild.com to contribute or learn more! North Dakota Association of Builders ❖ 1701 Burnt Boat Drive, Suite 201, Bismarck, ND 58503-0801 ❖ 701/222-2401 or 800/326-4746 ❖ www.ndbuild.com The MAB Homefront || 27 || Autumn 2018

MINOT ASSOCIATION OF BUILDERS


NATIONAL NEWS

LEGAL MORASS MUDDIES THE WATERS ON THE WOTUS RULE A recent ruling by the U.S. District Court for South Carolina means that for the foreseeable future, roughly half of U.S. states will be abiding by one set of rules pertaining to waters of the United States while the rest will abide by different rules. A brief background: Between 1986 and 2015, the Environmental Protection Agency and U.S. Army Corps of Engineers operated under the 1986 definition of the Clean Water Act term “waters of the United States.” In August 2015, the EPA promulgated a new definition of waters of the United States that was known as the WOTUS rule. Litigation ensued in multiple courts around the country. Soon thereafter, the Court of Appeals for the Sixth Circuit enjoined the WOTUS rule nationwide, which prevented its implementation. Thus, the 1986 definition was still in effect. The Sixth’s Circuit’s decision was overturned by the Supreme Court in 2018. However, before the Supreme Court’s decision took effect, the EPA finalized a rule that added an “applicability date” to the 2015 WOTUS rule. This rule postponed the applicability of the WOTUS rule until 2020. Therefore, nationwide, the EPA and Corps of Engineers still applied the 1986 definition of waters of the United States. On Aug. 16, 2018, the District Court for South Carolina ruled that the EPA had improperly added the applicability date to the 2015 WOTUS Rule. The judge explained that the EPA had restricted the topics that the public could comment on when it proposed to add the applicability date. According to the court, this restriction denied the public a meaningful opportunity to comment on the applicability date rule. Thus, it nullified the applicability date rule nationwide. This decision leaves the regulated community in a state of disarray. Other courts have previously enjoined, or prohibited, application of the 2015 WOTUS rule.

PLACE YOUR AD HERE! Call the MAB office to find out more. 852-0496

So where do things stand now? In 24 states (see below), the 1986 definition of waters of the United States is applicable. In the remaining 26 states, the 2015 WOTUS rule defines the term “waters of the United States.” It is not clear whether the administration plans to appeal the South Carolina court’s ruling, or whether it will seek a stay of the court’s ruling pending appeal. However, NAHB’s coalition had already asked a court in Texas to enjoin the 2015 WOTUS rule nationwide and recently reiterated that request. According to EPA’s current regulatory agenda, the rule repealing the 2015 WOTUS rule is expected to be finalized by November of this year. Moreover, the Trump administration’s proposed version of a new regulatory definition of WOTUS consistent with the president’s guidelines contained within his executive order on this issue is expected by October.

Given the legal confusion created by the U.S. District Court for South Carolina ruling coupled with various WOTUS-related rulemakings expected from EPA and the Corps of Engineers over the coming months, NAHB will provide regular updates as the situation develops. The MAB Homefront || 28 || Autumn 2018

MINOT ASSOCIATION OF BUILDERS

PLACE YOUR AD HERE! Call the MAB office to find out more. 852-0496


NATIONAL NEWS

HOUSE APPROVES 3 TAX REFORM BILLS; NO PLANS FOR SENATE ACTION The House approved a package of three tax bills known collectively as “Tax Reform 2.0” that are intended to build on the enactment of last year’s Tax Cuts and Jobs Act (TCJA). However, the Senate is not expected to act on any of the measures prior to the election. The Protecting Family and Small Business Tax Cuts of 2018 (H.R. 6760) would make permanent the provisions of the TCJA that are scheduled to expire on Dec. 31, 2025. The Family Savings Act of 2018 (H.R. 6757) focuses on promoting individual and retirement savings.

The American Innovation Act of 2018 (H.R. 6756) would provide start-up businesses with new tax benefits.

SHORTAGE OF ROUGH CARPENTERS CLIMBS TO RECORD HIGH Three-fourths of the total cost of building a typical home goes to subcontractors. So as they get harder to find, it’s getting especially hard for projects to stay on schedule and on budget. Single-family builders who responded to a recent NAHB survey listed which workers they are struggling the most to find. Topping the list: shortages of rough carpenters were reported by 90% of builders — the highest-ever portion for any occupation in residential construction in the survey’s history. NAHB economist Paul Emrath wrote about the findings in Eye On Housing and offered possible explanations for the severe shortage of subcontractors: One is that workers who were laid off during the housing downturn and subsequently started their own businesses have since returned to work for larger companies. Regardless of the reasons, the widespread shortages continue to restrain the pace of construction, further driving up construction costs, which are increasingly being absorbed by the home buyer. However, the shortages are also affecting builders’ bottom lines by causing lost or canceled sales and making some projects unprofitable.

“Housing affordability is at a 10-year low, and that means it will become increasingly difficult to pass along higher construction costs to home buyers,” NAHB Chief Economist Robert Dietz wrote in the latest issue of Eye on the Economy. “Builders in many markets may find supply-related cost increases will slow sales now more than in recent years due to elevated pricing.” Making matters worse, shortages are likely to intensify in the near term for some markets, particularly those in and around the Carolinas. “As the impact of Hurricane Florence affects North and South Carolina — home to 9% of the nation’s single-family construction — and other parts of the Mid-Atlantic, we can expect increased demand for construction workers and higher building material costs as the region recovers,” Dietz noted. “As we saw last year in the wake of the storms that devastated portions of Texas and Florida, these impacts will lower production volume while increasing costs for a number of months in and around the affected regions.”

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The MAB Homefront || 29 || Autumn 2018

MINOT ASSOCIATION OF BUILDERS


NATIONAL NEWS

FAA BILL INCLUDES KEY HOUSING AFFORDABILITY PROVISIONS The House has passed a five-year Federal Aviation Administration (FAA) reauthorization bill that contains a key provision championed by NAHB that will delay a major building and affordability barrier that would have started in the Pacific Northwest and quickly spread throughout the country. NAHB also posted important wins on the codes side of the ledger that will boost housing affordability. At issue is a 2016 biological opinion issued by the National Marine Fisheries Service that would have required the National Flood Insurance Program to take the Endangered Species Act into consideration when building and updating flood maps, among a number of other programmatic changes.

These requirements would have drastically limited the location and size of development, added red tape and dramatically increased costs. The Federal Emergency Management Agency (FEMA) manages the development of the flood maps at the federal level, and any changes in the rules to creating and maintaining maps would affect the entire country, regardless of the location of the initial Fisheries Service ruling. The intent of the flood insurance program was never to protect endangered species, but to ensure the safety of development in the floodplain. NAHB will continue to work with Congress, and the states that are in line to be immediately affected — Oregon, California and Florida — to ensure that new construction continues to be safe and affordable, and not unnecessarily burdened. Moreover, at NAHB’s urging, the legislation assures that states will be able to receive funds from FEMA if they adopt either of the two latest editions of the relevant consensus-based codes, such as the 2018 or 2015 editions of the International Building Code or International Residential Code. Some lawmakers had urged that funds be made available only if states adopted the most recent building consensus code. NAHB successfully argued that this criteria would be too restrictive and needlessly harm housing affordability. This provision on the two-code cycle has a five-year sunset. In another important win, we also worked with lawmakers to preserve the ability of states to amend the latest building codes to address the specific needs of local communities. This will encourage, through voluntary incentives, the construction of resilient homes, infrastructure and communities. The Senate is expected to pass the FAA reauthorization bill next week.

The MAB Homefront || 30 || Autumn 2018

MINOT ASSOCIATION OF BUILDERS


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Profile for Minot Association of Builders

MAB Fall 2018 Magazine  

MAB Fall 2018 Magazine  

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