FOUNDATIONS JANUARY - FEBRUARY

JAN - FEB 2020

FOUNDATIONS

NEWSLTR

ROCHESTER AREA BUILDERS, INC.

ROCHESTER AREA BUILDERS HOME SHOW FEB 7-9

Olesciis tisimo

Quias eic temo officid uciecent da ecatio earchilit emniset New Members!

Check out who joined RAB in January!

Education Classes Register for Continuing Education Classes.

Download our Apps!

There are TWO RAB apps!

8

14

28

D C

DEVELOPMENT COUNCIL a division of the Rochester Area Builders, Inc.

C OMMERCIAL C B UILDERS

OUNCIL

a division of Rochester Area Builders, Inc.

STAFF EXECUTIVE DIRECTOR John Eischen, John@RochesterAreaBuilders.com STAFF Shelly Bahlmann, Shelly@RochesterAreaBuilders.com

Golf Outing, Sporting Clays, Home Show, Directory, Newsletter, RAB Update Audra Bolduan, Audra@RochesterAreaBuilders.com

Builders Exchange Trustees and

Showcase Committee Rebekah Nielsen, Rebekah@RochesterAreaBuilders.com

Ambassadors, Awards, Community Relations,

Education, Membership, Fashion Show,

Program, Spike Club, Remodelers Council:

Executive & Remodelers Tour, 40 Below

GOVERNMENT & PUBLIC AFFAIRS CONSULTANT Rick Dold, Rick@GodwinDold.com

BOARD OF DIRECTORS PRESIDENT Alissa Moe, Bremer Bank VICE PRESIDENT Luke Stier, Stier Construction, Inc. SECRETARY Becky Holmen, Bright Ideas TREASURER Jesse Buhl, MedCity Consulting PAST PRESIDENT Jerry Jensen, Valor Mechanical, Inc. DIRECTORS Kenneth Bush, Rochester Asphalt & Concrete Adam Giannini, Meyer Borgman Johnson Spencer Holmen, TLS Companies Jennifer Lawver, ERH Developing, Inc. Tom Leimer, Knutson Construction Kevin Sternberg, Countryside Builders, LLC Kevin Reckinger, Bricewood, LLC Charlie Sweeney, Kraus-Anderson Construction Jennifer Mitchell, Edina Realty BUILDERS EXCHANGE COUNCIL REPRESENTATIVES John Honeck, Harris Company, (Chair) Kurt Hoeger, United Rentals, (Vice Chair) Jeremy Wohlfiel, Merit Contracting, Inc. (Past Chair) COMMERCIAL BUILDERS COUNCIL CHAIR Vanessa Hines, Eidseth Smith Nolting DEVELOPMENT COUNCIL CHAIR Hal Henderson, HGA Architects & Engineers REMODELERS COUNCIL CHAIR Jessica Markley, Elias Construction 40 BELOW CHAIR Katie Olson, Kimley-Horn & Associates, Inc. NATIONAL LIFE DIRECTORS Joe Weis, Weis Builders, Inc. Steve Buss, Cornerstone Builders & Real Estate, Inc. NATIONAL DIRECTORS Dana Hlebichuk, Widseth Smith Nolting Levi Kaiser, Alvin E. Benike, Inc., (Rep) STATE DIRECTORS Mike Allen, Mike Allen Homes, LLC Jean DeWitz, DeWitz Home Builders, Inc. (Rep) Kathy Einck, Maplewood Homes.LLC John McGuine, JM Consulting, David Pederson, Dunlap & Seeger Dan Severson, Dan Severson Builders, Inc.,

ROCHESTER AREA BUILDERS, INC.

2020 CALENDAR OF EVENTS JANUARY 28

General Membership Meeting @ DoubleTree by Hilton

FEBRUARY 7-9

13 25

Rochester Area Builders Home Show Continuing Education Classes @ Empire Events Center Networking Night @ Altra Federal Credit Union

MARCH 11

31

BAM Building Industry Day at the Capitol Networking Night @ Home Depot

APRIL 9

18-19 25-26 28

Studs, Struts & Stilettos: A Construction Fashion Expose @ Mayo Civic Center Spring Showcase of Homes Spring Showcase of Homes Networking Night @ Elias Construction Spec Home

MAY 25

Office Closed – Memorial Day

JUNE 1 30

RAB Golf Outing Networking Night @ Tulip Tree

JULY 3 TBD 28

Office Closed for Independence Day NAHB Mid-Year Board Meeting – TBD Member Appreciation Night @ Mayowood Stone Barn

AUGUST SEPTEMBER

7 10 19-20 19-20, 26-27 29

Office Closed – Labor Day Sporting Clay Shoot Remodelers Tour Fall Showcase of Homes General Membership Meeting @ DoubleTree by Hilton

OCTOBER 27

Networking Night @ Cambria

NOVEMBER TBD 19 26-27

Past Presidents Dinner Celebration of Leaders Dinner Office Closed – Thanksgiving Holiday

DECEMBER 4 24-25

Holiday Party @ TBD Office Closed – Christmas Holiday

MISSION STATEMENT The Rochester Area Builders, Inc, chartered in 1953, is a professional organization of commercial & residential builders, remodelers, developers and associated businesses dedicated to advancing the building industry in Southeast Minnesota.

We are the trusted voice of the industry, providing leadership, education, networking, and information resources to our members, community and government officials.

7 12 15

9 FEBRUARY CALENDAR

20 05

Whenever you see this icon, know you can register for that event/ meeting through the MemberPlus app.

LETTER FROM RAB PRESIDENT

Alissa Moe, Bremer Bank, 2020 RAB President

WELCOME NEW RAB MEMBERS

6-7 8 9 11

February 7-9

RAB BOARD GIVES BACK

Channel One

Home Show Volunteers Needed!

SCHOLARSHIP OPPORTUNITIES

19

SPRING SHOWCASE OF HOMES 2020

20

NAHB NOW

21

Save the Date!

Annual Awards Dinner

HOME SHOW

17

Post Secondary Scholarships

January New Members

GENERAL MEMBERSHIP MEETING

VOLUNTEER OPPORTUNITIES!

12-13

What is the ‘Missing Middle’ of Housing?

NAHB EYE ONE HOUSING

22

A Modest Increase in Core Inflation in December

GREEN BUILDING PUBLICATIONS

23

Next Generation Heating & Cooling Cold-Climate Air Source Heat Pumps

EDUCATION CLASSES

14

ROCHESTER BUILDING PERMITS

26

STUDS, STRUTS & STILETTOS

15

OLMSTED BUILDING PERMITS

27

NAHB EYE ONE HOUSING

16

SEMR HISTORICAL OVERVIEW

27

Sponsorship Deadline

Slow Rebound in Single-Family Permits in November

DECEMBER 2019

4 | JANUARY - FEBRUARY 2020

ROCHESTER AREA BUILDERS

Discover local Rochester Area Builders events!

Featuring up to date information on all RAB annual events

• HOME SHOW: interactive floorplan, speakers, attendees login • STUDS, STRUTS & STILETTOS: construction fashion expose • SPRING SHOWCASE OF HOMES: list of entries, photos, map, entry info, directions • FALL SHOWCASE OF HOMES: list of finished entries, photos, map, entry info, directions • REMODELERS TOUR: list of entries, before & after photos, map, entry info, directions

IT CAN ALLOW MEMBERS TO:

• • • • • • • •

Receive notifications from RAB Access the Member Information Center Search member listings by company or rep name Call or email a rep Map to members’ business location Update profile information View upcoming events Register, pay, and check in for events

5 | FOUNDATIONS NWSLTR

Click HERE to check out our online Calendar. ***Calendar may change at any given time.

Check the RAB Update for most current information.

6 | JANUARY - FEBRUARY 2020

Alissa Moe, Bremer Bank, serving as the 2020 President for Rochester Area Builders Board of Directors.

6 | FOUNDATIONS NWSLTR

7 | FOUNDATIONS NWSLTR

FROM THE PRESIDENT Education – 1 more class offering on February 13th

Greetings! It brings me so much joy to be writing the first of a year’s worth of letters for the RAB Newsletter. I hope that this publication will inform and inspire you on a monthly basis with all things related to the building and construction industry.

Alissa Moe President Rochester Area Builders, Inc

I cannot thank Jerry Jensen enough for his dedication to this association as 2019 President. He has proved to be a marvelous leader, mentor, and friend. I can step into the role of President of the board of directors confidently thanks to his guidance. In addition, I would like to extend a warm welcome to our new board members, and express gratitude for the former and returning board members. Thank you to the employers of these individuals for allowing and encouraging their involvement. Without them this association could not be what it is today, and the value they bring does not go unnoticed.

Our General Membership Meeting is taking place on January 28th. In addition

MEET THE 2020 RAB PRESIDENT Alissa Moe, Business Banker at Bremer Bank What is your hometown?

Lewiston, MN Family: Parents: Kimberly and Douglas Moe Brother: Hunter Moe How many years have you been a member of RAB? 5 When you’re not working, what is your favorite thing to do?

In the summer, you can find me on the golf course, hiking, rollerblading, riding my bike, or really doing anything outside. Other than that, I love to attend hot yoga classes and spend quality time with friends and family.

A book or movie I’d recommend is: The Power of Positive Thinking

My best advice is: The grass is greener where you water it.

If I wrote my autobiography, the title would be: I have several, depending on what the content would focus on: 1) Go With the Flow Moe 2) Less is Moe 3) Moe Money, Moe Problems 4) Moe-mentum 5) Moe-tivation …basically anything that I can work my last name into!

If I could learn any skill, I would learn how to: I would love to be fluent in multiple languages. I can speak Spanish (terribly) and I know a little sign language. 2020 resolution to brush up on both!

to awarding several members on their outstanding devotion and involvement within RAB, we will hold a vote to amend our bylaws, therefore your attendance would be greatly appreciated.

The deadline for Studs, Struts, and Stilettos entries is January 24th and the deadline for sponsorship opportunities is February 14th. This event is a staple in the Rochester community and an excellent opportunity for you to show off your creative side with a design entry or simply plan to attend the event for a fun filled night of entertainment!

Reminder that RAB holds CEU classes for Residential Building Contractors and Building Officials. These classes are submitted to the MN Department of Labor and Industry for residential builders, remodelers, roofers, and building officials CEU credit.

8 | JANUARY - FEBRUARY 2020

WELCOME NEW RAB MEMBERS JANUARY 2020 BRIGGS AND RABEHL BUILDERS, LLC

HOME PRO TRANSFORMATIONS

PAVEMAN DESIGNS, LLC

Mike Rabehl Residential Builder 507-513-4320 briggsandrabehlbuilders.com

Patrick Davidson Carpentry 507-361-2160

Justin Cady Concrete Contractor 507-995-8215 pavemandesigns.com

PAXTON ELECTRIC, LLC

RAHMAN HEATING, A/C & FIREPLACE

VIRGIL’S AUTO & TOWING

Brandon Paxton Electrical Contractor 507-202-3483 paxtonelectric.net

BillRahman Heating Contractor 507-710-4044 rahmanheatac.com

Terri Ufkin Automobile Sales & Service 507-288-3600 virgilsauto.com

9 | FOUNDATIONS NWSLTR

GENERAL MEMBERSHIP MEETING

Join us as we announce Rochester Area Builders’ annual award winners: Distinguished Service Award for Builder and Associate, Cornerstone Award, and Rising Star!

Tuesday, January 28th DoubleTree by Hilton 150 S Broadway

DESSERT SPONSOR:

5:00pm 6:00pm 7:00pm

Social Hour Dinner $25 & Announcements Presentation of Annual Awards “Travel Safety” with guest speaker, Deborah Pierce, Retired FBI Executive

REGISTRATION DEADLINE JANUARY 24TH Register HERE

10 | JANUARY - FEBRUARY 2020

41 Annual st

SHARI

from MasterChef Season 10 with Gordon Ramsay

Grab a date and bring them to the Home Show for Friday’s special 2 for 1 admission.

Enjoy a cooking demo on Friday from 6-7pm on the second floor outside the Ballroom by Celebrity Chef Shari Mukherjee from Season 10 of MasterChef with Gordon Ramsay.

11 | FOUNDATIONS NWSLTR

ROCHESTER AREA BUILDERS HOME SHOW FEB. 7-9

Mayo Civic Center Friday, February 7th * 3:00pm – 8:00pm (2 for 1 Date Night) Saturday, February 8th * 9:00am – 6:00pm (Furever Homes with Paws & Claws Humane Society) Sunday, February 9th * 11:00am – 4:00pm (Family Fun Day with Home Depot) For more information visit our website at RochesterAreaBuilders.com

Make your home #instaworthy.

SCAN DOWNLOAD SCANTO TO THE NEW DOWNLOAD NEW RAB EVENTS APP!

EVENT APP

Signature Event Sponsor: L A C I N A

SIDING

& WINDOWS, INC.

Because it’s your home.

12 | JANUARY - FEBRUARY 2020

RAB BOARD GIVES BACK TO THE COMMUNITY

13 | FOUNDATIONS NWSLTR

14 | JANUARY - FEBRUARY 2020

Residential Building Contractors & Building Officials Empire Event Center 1517 16th Street SW Rochester, MN 55902

Course Date: February 13th

One fee covers continental breakfast, lunch and all resource materials. Each 7 hour course includes at least 1 hour of energy to cover the energy requirement.

DLI approval pending.

REGISTRATION AVAILABLE ONLINE

at RochesterAreaBuilders.com

Questions Contact Rebekah 507.282.7698 Rebekah@RochesterAreaBuilders.com

RAB Members $89 / 7 Hour Course Non Members $109 / 7 Hour Course

15 | FOUNDATIONS NWSLTR

SPONSORSHIP DEADLINE FEBRUARY 14

CLICK HERE TO VIEW MORE INFORMATION ABOUT THE EVENT

PRESENTED BY:

A BENEFIT FOR:

APRIL 9, 2020 MAYO CIVIC CENTER Find us on Facebook! Click here to view pictures from past events and stay up to date with the latest news on Studs, Struts & Stilettos!

Follow us on STUDS, STRUTS & ST ET TOS

16 | JANUARY - FEBRUARY 2020

Slow Rebound in Single-Family Permits in November

BY DANUSHKA NANAYAKKARA-SKILLINGTON on JANUARY 15, 2020 Over the first eleven months of 2019, the total number of single-family permits issued year-to-date (YTD) nationwide reached 791,452. On a year-over-year (YoY) basis, this is a 1.0% decline over the November 2018 level of 799,679.

Year-to-date ending in November, single-family permits reported declines in three regions and a slight increase in the South. The Northeast reported the steepest decline by 5.0%. The West and Midwest declined by 3.8% and 4.9% respectively, compared to the same time period in 2018. The Northeast region had the highest growth in multifamily (30.1%) while the Midwest recorded the lowest growth in multifamily permits (0.6%) during the last 12 months as housing affordability concerns reduce production of both single-family and multifamily residences.

Between November 2018 YTD and November 2019 YTD, 18 states and the District of Columbia saw growth in singlefamily permits issued while 31 states registered a decline.

South Dakota recorded no change.

The District of Columbia recorded the highest growth rate during this time at 56.7% from 104 to 163, while singlefamily permits in Montana declined by 21.2%, from 2,504 in 2018 to 1,974 in 2019. The 10 states issuing the highest number of single-family permits combined accounted for 60.7% of the total single-family permits issued.

Year-to-date, ending in November 2019, the total number of multifamily permits issued nationwide reached 470,070.

This is 11.3% ahead of its level over the year 2018, 422,456.

Between November 2018 YTD and November 2019 YTD, 32 states and the District of Columbia recorded growth while 18 states recorded a decline in multifamily permits. Alabama led the way with a sharp rise (94.5%) in multifamily permits from 1,371 to 2,666, while North Dakota had the largest decline of 43.4% from 1,279 to 724. The 10 states issuing the highest number of multifamily permits combined accounted for 63.6% of the multifamily permits issued.

Year-to-date, ending in November 2019, the total number of multifamily permits issued nationwide reached 470,070. This is 11.3% ahead of its level over the year

2018, 422,456.

Between November 2018 YTD and November 2019 YTD, 32 states and the District of Columbia recorded growth while 18 states recorded a decline in multifamily permits. Alabama led the way with a sharp rise (94.5%) in multifamily permits from 1,371 to 2,666, while North Dakota had the largest decline of 43.4% from 1,279 to 724. The 10 states issuing the highest number of multifamily permits combined accounted for 63.6% of the multifamily permits issued.

17 | FOUNDATIONS NWSLTR

VOLUNTEER OPPORTUNITIES!

We are looking for volunteers to help in the following areas at the Home Show: Facilitate Move-in / Move-out of Exhibitors We need help with moving empty carts to the doors for exhibitors.

We will also need help getting signs set up before the show. We need help 4th, 5th & 6th.

Greet & Provide Information at Studs, Struts & Stilettos’ Display We are looking for volunteers to greet visitors, distribute save the date cards and answer general questions about Studs, Struts & Stilettos.

Greet & Provide Information at RAB’s Booth We are looking for volunteers to greet visitors, give directions, distribute brochures, and answer general questions at the Home Show.

(Info/Sign-up)

(More Info/Sign-up)

It’s a great opprortunity to tell attendees about your company and your involvement with the show!

Contact Rebekah with any questions

RAB Home Show February 7-9, 2020 Mayo Civic Center 30 Civic Center Dr SE Rochester, MN 55904

Create Opportunities

Achieve more than you believed possible.

WEALTH ADVISORY | OUTSOURCING AUDIT, TAX, AND CONSULTING

Paul Alberts, MBA, CPA, CCIFP Principal, Construction & Real Estate 507-280-2300 CLAconnect.com Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC-registered investment advisor ©2019 CliftonLarsonAllen LLP

18 | JANUARY - FEBRUARY 2020

OPENING FEBRUARY 3, 2020!

TO SERVE YOU BETTER,

THE CITY OF ROCHESTER BUILDING SAFETY DEPARTMENT IS MOVING TO A NEW LOCATION! Beginning February 3, 2020, the City of Rochester Building Safety Dept. will be located at the Development Services & Infrastructure Center at 4001 West River Parkway NW, Rochester, Minnesota 55901.

To allow us time to relocate,

Building Safety will be CLOSED

on Thursday, January 30 from 12-5 p.m. and on Friday, January 31 from 8 a.m.-5 p.m.

QUESTIONS? PLEASE

GIVE

US

WE'RE A

HAPPY

CALL

AT

TO

HELP.

507.328.2600.

19 | FOUNDATIONS NWSLTR

GRADUATING HIGH SCHOOL STUDENTS POST-SECONDARY SCHOLARSHIPS Rochester Area Builders, Inc. is proud to announce their 2020 scholarship program.

Either $1000 or $500 non-renewable scholarships are available for graduating high school seniors and college freshmen. Scholarships are made available through the Remodelers Council, the Commercial Builders Council, the Builders Exchange of Rochester, and the Youth Sporting Clay Shoot. Scholarships are for attendance in a post-secondary program in a construction-related field including technical school, trade school, apprenticeship, or college. Scholarship recipients will be announced in June 2020. To be eligible for any scholarships, applications must be postmarked by May 4, 2020.

Application can be found HERE. CRITERIA: 1.

Applicant must be a resident of Dodge, Fillmore, Goodhue, Houston, Mower, Olmsted, Steele, Wabasha, Winona counties; be recommended by a RAB or BER member; or participated in the RAB Youth Sporting Clay Shoot.

2.

Applicant must be accepted by a post-secondary program in a construction related field including technical school, trade school, apprenticeship, or college.

3.

Applicant must have a 2.5 or better G.P.A. – High School Transcript Required

4.

Applicant must demonstrate financial need.

5.

Scholarship will be paid directly to the school.

C OMMERCIAL C B UILDERS

OUNCIL

a division of Rochester Area Builders, Inc.

20 | JANUARY - FEBRUARY 2020

2020 Spring Showcase of

SAVE THE DATE

21 | FOUNDATIONS NWSLTR

What is the ‘Missing Middle’ of Housing?

Filed in Affordability, Education, Land Development, Multifamily on November 1, 2019 Jurisdictions such as Washington, D.C. are struggling with increasing housing supply because of restrictive zoning that limits density in high-demand neighborhoods. In the case of D.C., such zoning has resulted in less construction of new homes to meet demand, and more expansion of existing homes. This not only fails to help meet rising needs, but also increases home prices and puts homeownership further out of reach for many.

Less restrictive zoning would allow for more of what’s been termed “missing middle housing” and provide more solutions to an increasingly diverse range of income and generational housing needs.

Missing middle housing, as defined on missingmiddlehousing.com, is “a range of multi-unit or clustered housing types, compatible in scale with detached singlefamily homes.” In a recent NAHB webinar, Dan Parolek of Opticos Design, explained that it’s called “middle” for two reasons: because of its scale and because of its ability to deliver affordability to middleincome households. Whether in urban or suburban locations, these types of homes can take many forms, including bungalow courts, townhomes, duplexes or triplexes and courtyard apartments.

One of Parolek’s main points was that changing neighborhood zoning is an important first step to allow builders and developers to produce the sort of accommodating and affordable homes that today’s buyers want. This doesn’t always mean a single-family home with 3,000 square feet, or an apartment or condo in a luxurious high-rise tower. In fact,

according to Parolek, 59% of millennials are looking for missing middle housing in the for-sale and rental markets, versus 39% who are looking for single-family homes.

developed. These include rehabilitation of existing missing middle-type housing structures, smaller-scale urban infill developments, and the country’s first full neighborhood of missing middle housing.

Between 1990 and 2003, however, less than 10% of housing units produced would have classified as missing middle housing.

Part of the issue is that these types of homes don’t often fit within current zoning definitions of single-family or multifamily homes.

A replay of the webinar, Missing Middle Housing: Addressing Unmet Demand for Housing Choice, is now available. Register online to view the presentation, which is free to Multifamily Council members.

“There’s almost a new classification that needs to happen to define and effectively regulate these missing middle housing types,” Parolek added. One of the most effective tools his team has used is formbased codes. He highlighted his team’s work with the city of Cincinnati to directly embed missing middle housing types within a range of form-based zones as an example of what he sees as a growing trend across the country.

One challenge is the stigma surrounding upzoning because of what Parolek noted as “some really incompatible, fairly ugly multifamily buildings” produced in the 1960s through the 1980s. Today’s designs, however, are far more attractive and intentional in the way they fit into their surroundings. He explored projects his team has designed as examples of the types of missing middle housing communities that are currently being

NAHB’s new report developed with Opticos Design, Diversifying Housing Options with Smaller Lots and Smaller Homes, shines a light on how state and local policy changes and good design can address this “missing middle” in housing today. The report and additional materials are available through NAHB’s Land Use 101 toolkit.

22 | JANUARY - FEBRUARY 2020

GREAT TIME TO LOCK IN YOUR RATE

R E F I NAN C E YO U R H O M E GREG JOHNSON

JEANNE STRUCKMANN

LOAN ORIGINATOR

LOAN ORIGINATOR

Direct Line 507-258-2192 Email gjohnson@altra.org NMLS# 516974

Direct Line 507-421-7655 Email jstruckmann@altra.org NMLS# 411311

3833 Cascade Creek Rd. NW

(Corner of 19th St. & West Circle Drive)

123 16th Ave. SW, Suite 500 Rochester, MN

507-258-4500 • 800-755-0055 www.altra.org Contact Altra for more information. Equal Housing Lender. Federally insured by NCUA.

23 | FOUNDATIONS NWSLTR

A Rochester Area Builders Green Building Committee Publication

Next Generation Heating & Cooling Cold-Climate Air Source Heat Pumps Until recently, heat pumps have primarily been relegated to the milder winter climates of the southeastern United States due to an inability to operate in subfreezing temperatures.

However, technological advancements have now yielded hundreds of models that can operate efficiently in temperatures as low as 5°F, with some units performing down to -12°F, allowing year-round performance even in the cold climate of Chicago. These systems now represent an essential component for Zero Energy and Zero Energy Ready homes. ¹ A range of options exists for builders specifying heat pump HVAC systems: Ductless Mini Splits, Partially-Ducted Mini Splits, and Centralized ASHP systems. As technology continues to advance, air source heat pumps will likely be able to serve as the stand-alone heat system. It is important to note, however, these systems function optimally when passive design elements are incorporated into the design and construction of a home.

A research study conducted by the Center for Energy and Environment found opportunities for residents and utilities to reduce total site energy by 35% to 50%, when replacing propane or electric resistance heating for an air source heat pump. ²

Maine has installed 35,000 heat pumps already, and a recently passed state law envisions deploying an additional 100,000 by 2025. In Vermont, annual installations by the state efficiency utility, Efficiency Vermont, have surged from roughly 1,800 in 2015 to 6,000 this year. In total, Efficiency Vermont has installed more than 17,000 units. ³

1.

2.

3.

Rocky Mountain Institute, The Economics of Zero-Energy Homes Center for Energy and Environment, Cold-Climate Air Source Heat Pumps Scientific American, Cities Look to Natural Gas Bans to Curb Carbon Emissions

24 | JANUARY - FEBRUARY 2020

We’re in the offering NAHB members up to $1,000 business.

2018 Chevrolet Low Cab Forward 3500HD

2018 Chevrolet Express 2500 Cargo Van

2018 Chevrolet Silverado 2500HD

2018 GMC Sierra 1500

USING THE PRIVATE OFFER FOR NAHB MEMBERS IS EASY: 1. Get your NAHB Proof of Membership by logging into NAHB.org and obtaining your verification form.

2. Visit your local Chevrolet dealer and mention this Private Offer.

3. Select an eligible vehicle(s) to purchase or lease and present your NAHB proof of membership.

For even more value, combine this offer with the National Fleet Purchase Program and Business Choice Offers. For full details on the Private Offer, NAHB members should visit nahb.org/gm.

Example offer for NAHB members who are business owners purchasing a 2018 Chevrolet Express 2500 Cargo Van. Up to

$1,000 Private Offer1

+

$3,750

National Fleet Purchase Program (FVX)2

Up to

+

$1,200

Eligible Accessory Cash Allowance3

Up to

=

$5,950 In Potential Value

¹Private offer amount varies by model. City Express and Low Cab Forward receive a $250 Offer for both Fleet and Retail deliveries. Fleet deliveries on the Buick Enclave, Chevrolet Traverse, Silverado, Express, Suburban, Tahoe, GMC Acadia, Sierra, Savana, Yukon, XL receive a $1,000 Offer. All other Fleet or Retail deliveries receive a $500 Offer. Valid toward the purchase or lease of eligible new 2017 and 2018 model year vehicles. Offer excludes Chevrolet Bolt, Camaro, SS, Corvette, Sonic, Spark, Trax, Volt, Buick Cascada, LaCrosse, Regal, Verano, and all Cadillac vehicles. Additional GM models may be excluded from time to time at GM’s sole discretion. Customer must take delivery by 1/2/2019. Not compatible with some other offers. Not valid on prior purchases. See dealer for details. 2Offer available to qualified fleet customers through 1/2/2019. Not compatible with some other offers. Take delivery by 1/2/2019. See dealer for details. 3To qualify, vehicle must be used in the day-to-day operations of your business and not solely for personal/non-business-related transportation purposes. For complete program requirements, including information regarding offers, vehicles, equipment, options, warranties, and ordering, consult your dealer or visit www.gmbusinesschoice.com. Requires $500 minimum purchase. Cash Allowance will be equal to the amount spent up to $1,200. Not eligible on Associated Accessories from third-party independent suppliers. Not available with some other offers. Take delivery by 1/2/2019. See dealer for details. ©2018 General Motors, LLC. All rights reserved. The marks appearing in this ad are the trademarks or service marks of GM, its subsidiaries, affiliates, or licensors.

25 | FOUNDATIONS NWSLTR

Clements Chevrolet is your Commercial Vehicle Headquarters. We take the time to learn about your business challenges and offer real solutions. We find the work-ready vehicles needed to keep your business moving.

Tom Dunford 507-285-4760

If you or your business is in need of a new or pre-owned truck, van, SUV or car, please give Tom or Dale a call. For all January specials, go to clementsauto.com. Our Clements Clear Promise is to make buying a vehicle fast, fair & simple.

Dale Covington 507-298-5211

Clements Chevrolet Cadillac | 1000 12th Street SW | Rochester, MN 55902 | 507-289-0491 | clementsauto.worktrucksolutions.com

26 | JANUARY - FEBRUARY 2020

ROCHESTER BUILDING PERMITS 2019

VALUATION 2018

DECEMBER 2019

2010 2011 2012 2013 2014 2015 2016 2017 2018

VALUATION

2019

NEW RESIDENTIAL Single Family Dwelling

20

5,585,603

20

6,343,102

January

Townhome Dwelling

14

2,815,523

5

1,242,738

February

13

3

6

19

11

20

25

15

19

6

8

8

20

15

14

19

15

20

16

5

27

24

32

29

28

30

31

44

25

22

Two-Family Houses

0

0

0

0

March

Manufactured Home

0

0

0

0

April

25

19

29

39

25

22

33

45

40

24

Multi-Family Bldgs (Units)

0

78,800

0

0

May

20

14

22

27

35

19

56

43

28

27

June

12

26

32

33

47

51

41

52

38

31

July

23

8

39

39

38

29

44

45

36

26

August

15

18

38

21

60

33

47

30

31

24

September

10

19

22

22

23

27

52

35

39

12

October

14

16

23

34

35

49

25

36

29

27

November

21

20

22

26

26

23

12

41

21

47

December

12

16

14

22

27

42

37

33

25

34

TOTAL

188

175

285

304

342

327

381

406

322

254

*total may differ as permits have been TOTAL 200 191 may299 326voided.

369

369

418

429 347 289

EXISTING RESIDENTIAL Deck Addition

3

23,320

3

27,380

Room Addition

1

300,000

1

21,000

Porch Additions

1

15,000

0

0

Other Additions

1

17,000

0

0

Basement Finish

18

293,325

15

191,330

Alterations

32

566,519

27

213,774

Multi-Family Addition

0

0

0

0

Multi-Family Alterations

5

416,780

20

300

Assembly (Church)

0

0

0

0

Assembly (General)

0

0

0

0

Assembly (Restaurant/Bar)

0

0

1

377,768

Business

1

450,000

6

3,296,200

Education

0

0

0

0

Factory/Industrial

0

0

0

0

BUILDING PERMITS ISSUED TO DATE

Institution

0

0

0

0

*total may differ as permits may have been voided.

NEW COMMERCIAL

Mercantile

0

0

0

0

Miscellaneous

0

0

0

0

Residential (Apartment)

0

0

0

0

Residential (Care/Assisted Living)

0

0

0

0

Residential (Care/Hotel/Motel)

0

0

0

0

Storage (General)

1

16,000

0

0

Storage (Parking Garage)

0

0

0

0

Storage (Warehouse)

1

48,000

1

20,000

Utility (General)

0

0

0

0

Utility (Private Garage)

0

0

0

0

YEAR TO DATE STATISTICS

NO.

Addition

0

0

2

8,870,297

Alterations

5

416,780

20

11,540,040

Structural Shell

0

0

0

0

“White Box”

0

0

0

0

Interior Demolition Only

0

0

1

88,900

Other Phased Permits

0

0

0

0

OTHER CONSTRUCTION Business Signs

5

22,104

10

63,726

Advertising Signs

0

0

0

0

Footings & Foundations

0

0

2

195,000

Demolition

1

0

0

0

Information and downloads available at Rochester Building Safety Department’s website: https://www.rochestermn.gov/departments/building-safety/reports-building-permits/ building-permits-2019

NO.

2018 VALUATION

2270

483,468,201

2305

587,794,238

Single Family Dwelling

233

67,839,413

261

79,863,171

Multi-Family Buildings Total Units: 808

15

63,632,748

18

183,219,286

TRADE PERMITS ISSUED TO DATE

10301

119,021,884

10624

139,564,892

4068

52,116,853

3884

55,621,448

Electrical Electrical (Temp. Service)

265

145,496

273

78,100

2654

31,750,906

2783

42,811,617

Mechanical (Gas Piping)

642

1,118,595

678

1,403,961

Mechanical (Fireplace)

332

1,579,456

376

1,518,794

Mechanical (Hydronic)

209

13,418,929

191

9,120,034

2131

18,891,649

2439

29,010,938

12571

602,490,085

12929

727,359,130

Mechanical (HVAC)

Plumbing

EXISTING COMMERCIAL

2019 VALUATION

TOTAL PERMITS YTD

DECEMBER 2019

BYRON

BUILDING PERMITS

NUMBER

VALUATION

Single Family Attached

NEW RESIDENTIAL

0

0

Single Family Detached

2

809,800

Basement Finish

1

15,000

Deck Addition

0

0

Existing Residential

27 | FOUNDATIONS NWSLTR

OLMSTED COUNTY PERMITS YTD

2019

NEW RESIDENTIAL Single Family-Detached Single Family-Attached Garage

23

VALUATION

2018

6,529,647

VALUATION

21

VALUATION

COMMERCIAL/INDUSTRIAL

6,346,406

0

0

6

853,737

16

889,251

24

1,174,953

Addition

2018

VALUATION

5

7,224,369

0

0

Alterations

15

1,216,175

12

792,660

Re-roofing

0

0

2

20,648

Pool, Retaining Wall, etc.

12

335,287

10

362,182

Manufactured Homes

66

0

34

0

192

1,855,305

181

2,100,780

89

690,752

106

830,797

555

25,128,321

560

17,457,688

OTHER STRUCTURES

RESIDENTIAL Deck

36

168,594

45

209,828

Addition

19

1,704,992

12

335,709

Alterations

66

706,906

97

1,134,164

4

101,048

5

177,630

Garage Addition

2019

DECEMBER 2019

MISCELLANEOUS PERMITS Mechanical Plumbing

NEW COMMERCIAL/INDUSTRIAL Recreational

1

175,000

0

0

Church/Religious

0

0

0

0

Industrial/Warehouse

6

2,777,952

0

0

Store/Restaurant

0

0

0

0

Nonresidential Building

0

0

1

28,598

Service/Repair Station

0

0

1

1,720,360

TOTAL PERMITS

OLMSTED COUNTY PERMITS DECEMBER

Activity Overview Key metrics by report month and for year-to-date (YTD) starting from the first of the year.

Key Metrics

Historical Sparkbars

New Listings 12-2016

12-2017

12-2018

12-2019

12-2016

12-2017

12-2018

12-2019

12-2016

12-2017

12-2018

12-2019

12-2016

12-2017

12-2018

12-2019

12-2016

12-2017

12-2018

12-2019

12-2016

12-2017

12-2018

12-2019

12-2016

12-2017

12-2018

12-2019

12-2016

12-2017

12-2018

12-2019

12-2016

12-2017

12-2018

12-2019

12-2016

12-2017

12-2018

12-2019

Pending Sales

Closed Sales

Days on Market

Median Sales Price

Avg. Sales Price

Pct. of Orig. Price Received

Affordability Index

Homes for Sale

Months Supply

12-2018

12-2019

Percent Change

YTD 2018 YTD 2019

267

255

- 4.5%

7,488

7,382

- 1.4%

295

350

+ 18.6%

6,201

6,260

+ 1.0%

369

451

+ 22.2%

6,206

6,217

+ 0.2%

54

65

+ 20.4%

52

56

+ 7.7%

$184,000

$195,000

+ 6.0%

$191,835

$202,000

+ 5.3%

$209,034

$227,665

+ 8.9%

$218,350

$227,077

+ 4.0%

95.4%

95.0%

- 0.4%

97.0%

96.8%

- 0.2%

203

206

+ 1.5%

195

199

+ 2.1%

1,269

1,140

- 10.2%

--

--

--

2.5

2.2

- 12.0%

--

--

--

Percent Change

Current as of January 4, 2020. All data from Southeast Minnesota REALTORS® and NorthstarMLS®. Provided by the Minnesota Association of REALTORS®. Report © 2020 ShowingTime. | 2

28 | JANUARY - FEBRUARY 2020

ROCHESTER AREA BUILDERS, INC.

MEMBERSHIP REPORT DECEMBER 2019

MEMBERSHIP TOTAL: 454 RETENTION RATE: 89.7 As of December 31, 2019

A Modest Increase in Core Inflation in December

BY JING FU on JANUARY 14, 2020

ONE TO FOUR YEARS The Flooring Collective..........................................................2018 Compeer Financial..................................................................2018 KLHome Staging, LLC............................................................2018 Stewart Title..............................................................................2018 Weller Brothers Landscaping..............................................2018 Fillmore County EDA..............................................................2017 Highmark Builders, Inc..........................................................2017 Superior Water Conditioning...............................................2017 All Sons' Exteriors, Inc............................................................2016 Coulee Bank..............................................................................2016 Dickison Builders, LLC............................................................2016 Duke Aerial, Inc.........................................................................2016 Zen Custom Homes................................................................2016 Claremont EDA.........................................................................2015 ERH Developing, Inc................................................................2015

FIVE TO NINE YEARS Wells Concrete.........................................................................2014 First Alliance Credit Union....................................................2010

TEN TO 19 YEARS Tom Kalmes Construction, Inc.............................................2008 Crescent Electric Supply Company....................................2007 Derby Builders..........................................................................2007 Franklin Energy........................................................................2007 Markham Homes, LLC............................................................2007 W.L. Hall Company..................................................................2007 Kruger Electric, Inc.................................................................2006 Rochester Area Chamber of Commerce...........................2005 Bricewood, LLC.........................................................................2004 Powers Ventures.....................................................................2004 Space Concepts, Inc................................................................2004 Stantec........................................................................................2004 IntegraSpec Central/Jeff Mueller Construction.............2002 Meier Companies, Inc.............................................................2002 Associated Bank.......................................................................2000

20 YEARS & MORE Brauer Roofing, Inc..................................................................1999 Michael's Custom Cabinets, Inc...........................................1999 Construction Partnership, Inc..............................................1997 TSP, Inc. | Architecture, Engineering, Planning...............1997 Waste Management................................................................1997 CAPS Kitchen & Bath.............................................................1992 Greg Speedling Contracting, Inc.........................................1992 Summit Custom Homes, LLC...............................................1991 Region Millworks, Inc.............................................................1989 Culligan of Rochester & Kasson..........................................1987 Rochester Area Economic Development, Inc. (RAEDI).1987 Tile Superstore & More.........................................................1985 AB Systems, Inc.......................................................................1984 Wendland Utz...........................................................................1968 Wells Fargo Home Mortgage...............................................1964 Minnesota Energy Resources Corporation......................1960 Briese Iron Works, Inc............................................................1959 Rochester Ready Mix Concrete Company........................1959 Home Federal Savings Bank................................................1955 Post-Bulletin Company, LLC.................................................1955 U.S. Bank....................................................................................1955 Wells Fargo Bank Minnesota NA........................................1955 Kruse Lumber..........................................................................1954

The Bureau of Labor Statistics (BLS) reported that the Consumer Price Index (CPI) rose by 0.2% in December on a seasonally adjusted basis, following a 0.3% increase in November.

Excluding the volatile food and energy components, the “core” CPI increased by 0.1% in December, after rising 0.2% in November.

The food and energy indexes increased faster in December than last month.

The food index increased by 0.2% in December, after a 0.1% increase in November. The indexes for food at home and food away from home increased over the month. Meanwhile, the price index for a broad set of energy sources rose by 1.4% in December, after rising 0.8% in November and 2.7% in October.

The gasoline index rose by 2.8% in

December, while the electricity index declined by 0.5%. The index for utility gas service increased by 0.3% in December, the third consecutive monthly increase.

Over the past twelve months, on a not seasonally adjusted basis, the CPI rose by 2.3% in December, faster than a 2.1% increase in November. It was the largest gain since October 2018 on a year-over-year basis. Meanwhile, the “core” CPI increased by 2.3% over the past twelve months, the same increase as in the previous two months (October and November). The food index rose by 1.8%, and the energy index increased by 3.4% over the past twelve month.

29 | FOUNDATIONS NWSLTR

30 | JANUARY - FEBRUARY 2020

31 | FOUNDATIONS NWSLTR

Members Save Millions Put Your NAHB Membership to Work Now. Money-saving discounts that benefit you, your business and your family

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by Mitch Hagen, LLC ++DMC Plumbing Companies Viking Sprinkler Company + Viking Electric Supply Vision Homes & & e County EDA + Dolan's Landscape Center, Inc. + DoubleTree by Hilton + DreamMaker Bath & Kitchen + Duke Aerial, Inc.Warners' + Dunham Associates, Inc. Co., + Dunlap Seeger PA + Dynamic Remodeling, LLC + WA Insurance + Stellian Appliance Inc. + & Waste Management + J. LC + Eckert Construction, Inc. + ECSI System Integrators + Edel Construction, LLC + Edina Realty Home Services + Todd Eidem Construction, Inc. + Elcor Construction, Inc. + Elcor Realty Waugh Construction, LLC + Weis Builders, Inc. + Greg Wellik Construction + Wells Concrete + City of ElginFargo + Elias Construction, LLCFargo + Energy Panel Structures + Energy Products Design, Wells Bank MinnesotaLLC NA++Elite Concrete Lifting of Minnesota, LLC + Ellingson Companies + Elsmore Plumbing, Wells Home Mortgage + Wells Fargo Home & Mortgage Inc. +East EO Johnson Business Inc. ++Express Employment Extreme Panel + Wendland UtzTechnologies + Werner + ERH Developing, Inc. + Exclusive Home Builders & Remodelers + Expert Insulation, Electric West Bank + WestProfessionals Concord EDA+ + Jim Whiting City of Eyota +&EZGarden Fabricating, Inc.Inc. + F&M Feece Designs ++ Widseth FergusonSmith Enterprises & Nursery Center, + Community Bank + Fairway Outdoor Advertising, LLC + Fat Willy's Bar & Grill + Jeff WHKS & Company Nolting++Ferguson WildwoodTruck Sports Homes, + Fillmore County+EDA + First Alliance Credit + First Choice Homes, LLC + First Security Bank + R.Inc. Fleming Construction, Inc. + FloCore + Ford Metro, ntone TiborFamily & Maves, Ltd. Inc. + Wintrust Mortgage Wobig Construction, LLC +Union Women Communications, LLC + Workforce Development, + Wright Homes, Inc. + WSB & Associates, Inc. +Inc. WT n, Inc. + Franklin Energy Frattalone + Chris +Fritsch CustomHomes Homes, LLC + Gander Plumbing & Heating, Inc.= +RAB Dale Gathje Construction, Inc. + Steve Gentry Construction, gy + XRG Concepts, LLC ++ Your Home Companies, ImprovementInc. Company Zen Custom + Zillgitt Civil Design + Zimprovements Kitchen & Bath Store + Robert GillRochester Builder, Inc. + Area GodwinBuilders Dold + Goodin Company + GPis Development, Inc. + Grand Meadow EDA +to Great River Overhead Door + Green Lawncare Irrigation The Newsletter an unbeatable opportunity advertise to members and individuals Company of Rochester, LLCassociated + Habitat for Humanity - Rochester + Haley Systems + W.L. Hall and Company + Hamilton Plumbing + Hammer Homes, Inc. + Hanson with RAB. It is a Area source ofComfort valuable association industry information, and is published andConstruction emailed s, LLC + James Hardie Building Products + Harmony EDA + Harmony Insurance Group + Hartman Complete Lawncare, LLC + Hayfield Window & Door Company + HDR Architecture + monthly.

Foundations is sent to over 900 connected The +sizes of ads are under Display Heartman Insurance + Heartwood Homes of Rochester, Inc. + Brandon Henderson's Constructionindustry Plus, LLC + professionals.

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Ryan Electric, Inc. + Ryan Windows & Siding, Inc. + RyMark Construction, LLC + S&S Overhead Door, Inc. + Sargent's Landscape Nursery, Inc. + Schoeppner, Inc. + Schwab, LLC + Schwickert's Tecta America, LLC + Seavey Builders, Inc. + Dan Severson Builders, Inc. + Nick Severson Construction, LLC + Shanahan Building & Remodeling, LLC + Sherwin Williams Company + Short Elliott Hendrickson Inc. (SEH) + Sign Here, Inc. + S.L. Contracting, Inc. + Smart Home Innovations & Engineering, Inc. + Smart-HR + Smith Schafer & Associates, Ltd. + Solar Connection, Inc. + Somerby Golf Community + Sorenson's Appliance & TV, Inc. + Southeastern MN Multi-County HRA + Space Concepts, Inc. + Greg Speedling Contracting, Inc. + Spring Grove EDA + Spring Valley Overhead Door, Inc. + City of Spring Valley + St. Charles EDA + Stadsvold's Lawn & Landscape + Stantec + Sterling State Bank + Stevens Heating, Inc. + Stewartville EDA + Stier Construction, Inc. + Stone Expressions + StoneBridge Builders, LLC + Stonybrook Builders of Rochester, Inc. + Struve's Paint and Decorating + Robert Suk Law Office, PLLC + Summit Custom Homes, LLC + Summit Fire Protection Company + Sunbelt Rentals + Superior Mechanical + Superior Phone: (507) Attn: Shelly Water Conditioning + Craig Swanson Builders, Inc. + Bahlmann Swenke Ims Contracting, LLC 282-7698 + Kenny Sylvester Construction, LLC + Synergy Products + Tamarack Materials, Inc.108 + Thatcher Pools & Spas, Thiemann (507) Construction, Inc. + Thimijan Custom Homes, LLC + Fax: 282-6351 Elton Hills Ln Inc. NW+ Think Mutual Bank + Thomas Tool & Supply + Thompson's Garage Door and Openers + Tile Superstore & More + TLC Surfaces, LLC + TLS Mail: E-cal, Rochester, MN 55901 Companies, LLC + Tonna MechaniInc. +Shelly@RochesterAreaBuilders.com Top Shop of Rochester, Inc. + Total Electric of Rochester, Inc. + Townsquare Media Rochester + Tradesmen International, Inc. + Traditional Wood Builders + Tri Star Insulation + Tri-State Business Machines, Inc. + Tri-State Insulated Concrete Forms + TSP Architects & Engineers + Tulip Tree Studios + Turri Crane Service, Inc. + United Rentals + The Urban Studio, LLC + U.S. Bank + Valor Mechanical, Inc. + Val-U-Blinds + Veit Companies + Viking Automatic Sprinkler Company + Viking Electric Supply + Vision Homes & Remodeling, LLC + WA Insurance + Warners' Stellian Appliance Co., Inc. + Waste Management + J. Waugh Construction, LLC + Weis Builders, Inc. + Greg Wellik Construction + Wells Concrete + Wells Fargo Bank Minnesota NA + Wells Fargo Home Mortgage + Wells Fargo Home Mortgage East + Wendland Utz + Werner Electric + West Bank + West Concord EDA + Jim Whiting Nursery & Garden Center, Inc. + WHKS & Company + Widseth Smith Nolting + Wildwood Sports n Tibor & Maves, Ltd. + Wintrust Mortgage + Wobig Construction, LLC + Women Communications, LLC + Workforce Development, Inc. + Wright Homes, Inc. + WSB & Associates, Inc. + WT gy + XRG Concepts, LLC + Your Home Improvement Company + Zen Custom Homes + Zillgitt Civil Design + Zimprovements = RAB

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• Quick Link Only & Business Directory Map

cost $299/year

• Hot Deals, Job Postings, Marketspace, Weather

cost $299/year

Advertisers get higher placement in all assigned Directory categories.

Ads may be changed out periodically.

CONTACT: Audra Bolduan Audra@RochesterAreaBuilders.com

WEBSITE BROCHURE

34 | JANUARY - FEBRUARY 2020