FOUNDATIONS AUGUST - SEPTEMBER

AUG - SEPT 2021

September November December October August June July 2021 2021 2021 2021 2021 2021

ROCHESTER AREA BUILDERS, INC.

Remodelers PAGE 17 FOR DETAILS

HOME SHOW BOOTH REGISTRATION INFORMATION

12

SPORTING CLAYS TEAM REGISTRATION FULL

13

JOB SHADOWING OPPORTUNITY TO BE APART OF SOMETHING BIG

24

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.

2 | AUGUST - SEPTEMBER 2021

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

Online Permit Submission

UPDATE!

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, Website

Rebekah Fierst, Rebekah@RochesterAreaBuilders.com

Ambassadors, Awards, Builders, Bags & Brews, Commercial Builders Council,

Community Relations,

Education, Membership, Fashion Show,

Program, Remodelers Council,

Executive & Remodelers Tour, 40 Below

GOVERNMENT & PUBLIC AFFAIRS CONSULTANT

Rick Dold, Rick@GodwinDold.com

BOARD OF DIRECTORS PRESIDENT

Luke Stier, Stier Construction, Inc. VICE PRESIDENT Becky Holmen, Haley Lighting SECRETARY

Jennifer Mitchell, Edina Realty TREASURER

Jesse Buhl, MedCity Consulting PAST PRESIDENT

Alissa Moe, Bremer Bank DIRECTORS

Adam Giannini, Meyer Borgman Johnson Jennifer Lawver, ERH Developing, Inc. Tom Leimer, Knutson Construction Jason Scrimshaw, Kimley-Horn & Associates, Inc. Kevin Reckinger, Bricewood, LLC Charlie Sweeney, Kraus-Anderson Construction Melissa Barbour, TLS Companies, LLC Megan Gallagher, Solar Connection

BUILDERS EXCHANGE COUNCIL CHAIR

Kurt Hoeger, United Rentals

COMMERCIAL BUILDERS COUNCIL CHAIR Jim Oeltjenbruns, F&M Community Bank DEVELOPMENT COUNCIL CHAIR Hal Henderson, HGA Architects & Engineers

When submitting your permit online doing the following will greatly improve your chances of acceptance, speedy processing, and approval.

1. Use your PDF software to optimize your plan before submitting

a.

Optimizing the plan allows the city departments to more effectively process your submittal within the system.

b.

Optimizing the plan will also improve the City’s ability to efficiently review your plans.

2. Only submit one Drawing per permit that includes all building and site plan information

a.

The drawing should include the mechanical and plumbing information.

b.

Any other plan information you submit should be submitted as additional information and not as a drawing.

c.

You are allowed as much information as you need for your submittal, but each submittal should only have one drawing.

d.

Submitting more than one drawing may cause the rejection of your submittal.

e.

In the event your submittal is not rejected with more than one drawing, having more than one drawing results in multiple approvals within each which delays the process and approval of your application.

Use the link below to check the status of permits filed with the City of Rochester Agency Counter: https://rochestermn.agencycounter.com/m/home

REMODELERS COUNCIL CHAIR

Kailee Klevan, Beyond Kitchens 40 BELOW CHAIR Katie Olson, Kimley-Horn & Associates, Inc. NATIONAL LIFE DIRECTORS

Steve Buss, Cornerstone Builders & Real Estate, Inc. NATIONAL DIRECTORS Dana Hlebichuk, Widseth

Levi Kaiser, Benike Construction (Rep) Todd Severson, TLS Companies, LLC STATE DIRECTORS

Mike Allen, Mike Allen Homes, LLC Jean DeWitz, DeWitz Home Builders, Inc. (Rep) Kathy Einck, Maplewood Homes.LLC John McGuine, JM Consulting Dan Severson, Dan Severson Builders, Inc.,

Kenneth Bush, Bush Companies

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.

3 | FOUNDATIONS NEWSLTR

NETWORKING NIGHT 8 17

RECAP

11

UPDATE..............................................................2

Online permit update

RAB CALENDAR...................................................4

21

24

NOMINATING COMMITTEE REPORT.....................15

2021

FALL SHOWCASE/TOUR ....................................17

September 2021

2021Information

2021 CALENDAR..................................................5

NAHB EYE ON HOUSING.....................................18

LETTER FROM RAB PRESIDENT............................6

Luke Stier, Stier Construction, 2021 RAB President

FEDERAL RESERVE BANK OF MINNEAPOLIS..........6

Survey

NEW MEMBER WELCOME.....................................7

August 2021

AUGUST NETWORKING NIGHT.............................8

Tulip Tree/Valor Mechanical

MEMBER APPRECIATION NIGHT...........................9

Congratulations Honorary Members

BUILDERS, BAGS & BREWS................................11

Recap

HOME SHOW.....................................................12

Booth Registration Information

SPORTING CLAY SHOOT ....................................13

Registration Closed!

COMMUNITY DEVELOPMENT..............................14

Online Permit Process

Lot Values Surge at Record Breaking Pace

STUDS, STRUTS & STILETTOS............................21

Ticket Information

JOB SHADOWING..............................................24

Host Information

NAHB EYE ON HOUSING.....................................25

Rising Job Openings

NAHB EYE ON HOUSING.....................................28

What Areas Grew the Most? Single-Family Home Building in 2020

BUILDING PERMITS...........................................30

Rochester, Byron & Pine Island

OLMSTED BUILDING PERMITS ...........................31

July 2021

SEMR HISTORICAL OVERVIEW............................31 July 2021

NAHB EYE ON HOUSING.....................................32

More Young Workers Join the Construction Labor Force

4 | AUGUST - SEPTEMBER 2021

September 2021 Sunday

Monday

Tuesday

Wednesday

Thursday 1

7:30 AM CBC Exec.

Committee

Friday

Saturday

2

3

4

9

10

11

16

17

18

11:30 AM Program Committee

12:00 PM Showcase Committee 5

6 8:00 AM Remodelers Council Exec.

7

11:30 AM Executive Committee

8

7:30 AM Green Building Committee

12:00 PM Sporting Clays Committee

12:00 PM Government Affairs Committee 4:30 PM 40 Below Executive Committee

12

13

12:00 PM Ambassadors Committee

7:30 AM Membership Committee

3:00 PM Board Meeting

15

3:30 PM Builders Exchange Board of Trustees

14

Remodelers

19

20

21

11:30 AM Fashion Show Committee

22

23

24

25

11:30 AM Community Relations Committee 3:00 PM Development Services Advisory Committee

Remodelers

4:30 PM 40 Below Event - Building Connections 26

27

28 11:30 AM Home Show Committee

29

30

4:00 PM CBC Annual Social

5:00 PM General Membership Meeting (DoubleTree)

MEETINGS ARE NOW BEING HELD IN PERSON UNLESS NOTIFIED DIFFERENTLY BY JOHN

5 | FOUNDATIONS NEWSLTR

AUGUST

31 Networking Night @ Tulip Tree Studios & Valor Mechanical

SEPTEMBER 6 Office Closed – Labor Day 16 Sporting Clay Shoot 18 Youth Sporting Clay Shoot 18-19 Remodelers Tour

18-19, 25-26 Fall Showcase of Homes 28 General Membership Meeting @ DoubleTree

OCTOBER

14 Studs, Struts & Stilettos @ Mayo Civic Center 26 Networking Night @ Cambria

NOVEMBER TBD Past Presidents Dinner 18 Celebration of Leaders Dinner 25-26 Office Closed – Thanksgiving Holiday

DECEMBER 10 Holiday Party @ The Hilton 23-24 Office Closed – Christmas Holiday

FUTURE DATES International Builders Show RAB Home Show

February 8-10, 2022 – Orlando, FL February 4-6, 2022 – Mayo Civic Center

6 | AUGUST - SEPTEMBER 2021

6 | FOUNDATIONS NEWSLTR

FROM THE PRESIDENT 7-9:30 pm. Tickets go on sale midSeptember.

LUKE STIER President

Rochester Area Builders, Inc

I hope you have had a chance to enjoy this summer and made the best of our short Minnesota season.

We were fortunate to make a quick get away with the kids recently and went to Wisconsin Dells. Not our typical vacation or go to spot, but the kids had a blast, and it was good to escape for a bit. Summer isn’t over yet, right? Let’s hope not! I still have at least half a dozen campfires and get togethers in me.

Did you hate History class in high school? Did you lose interest easily?

Well then, we have the perfect class for you! This years’ Studs Struts and Stilettos theme is “strut through history” and all designs will be inspired by a historical figure, event, or period. Come and see the crazy creative side of our members and their incredible talents. These designers pour a lot of time and effort into these creations, and it all goes to a great cause. They also have a ton of fun creating them and would love to see you in the crowd supporting them and Habitat for Humanity. Event is held October 14th

Make sure you have your calendars marked for the annual Fall Showcase of Homes, and the Remodelers Tour! Come and support your fellow members and experience the incredible spaces they have created. Fall Showcase of Homes is two weekends: Saturday & Sunday September 18-19, & 25-26, 11 am to 5pm each day. The Remodelers Tour will be held on September 18th & 19th, from 11am5pm. Admission is free for both events.

Our annual Sporting Clay Shoot is full and sold out in a hurry! We are still welcoming sponsors. If you are interested in supporting this event, please contact Shelly.

We will once again be partnering with the Kasson Mantorville Carpentry program and offering the opportunity to host students for the Job Shadow program this year and are looking for businesses to participate. Help strengthen our local industry and prepare our future workforce! Hosts would spend 2.5 to 3 hours with students on October 7th. Let Rebekah know if you are interested.

Lastly, for all members interested in joining the board, please contact me or John to get your hat in the ring. See page 15 within RAB update for details.

The Minneapolis Fed closely watches trends in the construction sector, a bellwether for the broader economy. We are taking the pulse of the industry across the Ninth District, which covers Minnesota, the Dakotas, Montana, NW Wisconsin and Michigan’s Upper Peninsula.

We are partnering with construction/ trade groups for your feedback, so please take 5 minutes to help the Minneapolis Fed better understand business conditions for your firm.

If you receive a survey alert from multiple partners, please only respond to the survey once.

All responses are anonymous.

We expect to share respondent comments with survey partners, policymakers, and the general public to better spotlight challenges facing the construction sector. To maintain anonymity, please do not include any self-identifying information in comments.

Once the survey is closed, results will be shared with partners (that sent you this survey) and, in turn, with members like you so everyone has better information on current conditions in the sector.

The Minneapolis Fed greatly appreciates your time and insights, and hopes your firm is in good health as we hopefully turn the corner from the pandemic.

Ron Wirtz Regional Outreach Director Federal Reserve Bank of Minneapolis 612.204.5262 ron.wirtz@mpls.frb.org

TAKE THE SURVEY Luke Stier Stier Construction 2021 RAB President

7 | FOUNDATIONS NEWSLTR

ROCHESTER AREA BUILDERS, INC.

MEMBERSHIP REPORT July 2021 Membership Total: Retention rate:

403 88.2

WELCOME

AUGUST 2021 MEMBER

COMMITTEE OPPORTUNITIES

As of July 31, 2021 As a member of Rochester Area Builders, you a have an opportunity to get involved in one of our many Committees. If you are interested in participating in one of the following listed below, please reach out to Shelly.

ONE TO FOUR YEARS Hyatt House Rochester Mayo Clinic Area....2020 City of Kasson..................................................2017 Tulip Tree Studios...........................................2017

FIVE TO NINE YEARS Madery Construction, LLC..........................................2016 GP Development, Inc...................................................2015 J&M Consulting.............................................................2015 Pine Island EDA.............................................................2015 Centurion Ridge, LLC...................................................2014 Custom Homes by Bradley, Inc................................2014 WHKS & Company.......................................................2013

TEN TO 19 YEARS Hunt Electric Corporation...........................................2006 Larry Newman Drywall..............................................2005 Somerby Golf Community..........................................2002

20 YEARS & MORE DeGeus Tile & Granite.....................................2001 ONB Bank..........................................................1996 Brinkman Builders, LLC..................................1995 PC Applications Consultants, Inc..................1995 Top Shop of Rochester, Inc.............................1995 Beacon Roofing Supply...................................1993 Haley Lighting..................................................1993 Hirshfield’s Decorating Center.......................1993 Bremer Bank....................................................1991 Brock White Company....................................1991 Dan Severson Builders, Inc............................1991 Premier Bank...................................................1991 Christian Brothers Cabinets..........................1990 Gerhards - The Kitchen & Bath Store...........1988 Express Employment Professionals.............1985 Ohly Law Office.................................................1982 Smith Schafer & Associates, Ltd...................1982 Kuehn Motor Company, Inc............................1981 Quality Overhead Door Company, Inc...........1981 Wilson Tibor & Maves, Ltd.............................1981

JODY HOCKING

Custom Cabinets (507) 512-1360

moderndesigncabinetry.com

• Ambassadors • Community Relations • Education • Golf Outing • Green Building • Home Show • Membership & Retention • Program • Showcase • Sporting Clay Shoot

8 | AUGUST - SEPTEMBER 2021

YOU’RE INVITED! COME NETWORK AND

CHECK OUT OUR NEW HOME! WHO: You, Our Fellow Rochester Area Builders Members

WHAT: Monthly Networking Night WHERE: Tuesday, August 31 | 4:30 - 6:30 p.m.

WHEN: Our new office located at 1001 2nd Ave. NW in Stewartville (West of the bowling alley)

RSVP not required, but registrations on MemberZone appreciated!

9 | FOUNDATIONS NEWSLTR

Congratulations To Our New Honorary Members.

Thank You Alissa Moe For Your Service as President of Rochester Area Builders’ Board Of Directors.

2021 Honorary Members Jeff Broberg, Art Friedrich, David Kane, Chris Colby, Greg Hird, Jan Blevins

10 | AUGUST - SEPTEMBER 2021

11 | FOUNDATIONS NEWSLTR

BUILDERS, BAGS & BREWS

Thank you to everyone who participated in our first ever Builders, Bags & Brews! Despite the weather it was a fun day of friendly competition with great music, good company and delicious food/beverage all while raising funds for Jeremiah Program. Huge thank you to our Headlining Sponsor, Home Federal, for helping make this new event happen!

Congratulations to Brian Klein and Scott Orr, the Inaugural 2021 Builders, Bags & Brews Champs! We can’t wait to do this event again next year!

PRESENTED BY

BENEFITING RAB

FORTY

BELoW CONNECTING. BUILDING. ENGAGING.

HEADLINING SPONSOR

12 | AUGUST - SEPTEMBER 2021

ROCHESTER AREA BUILDERS HOME SHOW 43 Annual rd

FEBRUARY 4, 5, & 6, 2022 ALL BOOTHS ON ONE FLOOR! CHECK OUT THE 2022 HOME SHOW MAP

1.

Ease of entrance for a�endees, right off the skyway.

2.

Easy access to the exhibit space (only one Ballroom door won’t be open, due to the �cket booth).

3.

Less Confusion. One floor, one area. No need to worry about if a�endees saw all the exhibitors.

4.

New booth spaces in the Ballroom lobby area.

5.

Friday night ac�vity area and theseminar areas more visible and integrated with the rest of the show.

BOOTH REGISTRATION IS OPEN! RESERVE YOUR BOOTH TODAY! Registra�on and Exhibitor Informa�on can be found HERE.

Please contact Shelly with ques�ons.

13 | FOUNDATIONS NEWSLTR

Rochester Area Builders Sporting Clay Shoot

EVENT IS FULL September 16, 2021 1:00–1:30 P.M. 1:30–2:00 P.M. 2:00 P.M. 5:00 P.M. 5:15 P.M. 6:00 P.M.

Registration & Mandatory Safety Talk Shooters Released to Opening Stations Shooting Starts Shooting Complete. Keg is Tapped Dinner Raffle Drawing!

Shooting (Clays & Shells) and Dinner: Individual: $175.00 per Person Teamss Dinner only: $25.00 per person Registration Includes: • 20 Stations with 100 clay targets & 100 Shells • BBQ Style Dinner & Beverages • Various Optional Games throughout Course • Prizes for High Team, Pri High Individual, and Low Individual

14 | AUGUST - SEPTEMBER 2021

City of Rochester, Minnesota 4001 W River Parkway NW, Suite 100 Rochester, MN 55901-7090

Phone: 507-328-2600 Fax: 507-328-2601 Email: buildingsafety@rochestermn.gov

The City of Rochester has launched new online services to streamline the permitting process.

Read the full press release here: https://www.rochestermn.gov/Home/Components/News/News/8361/1121 Highlights of these enhancements include new appliance permits, online trust account payments, and automatic issuance of permits.

What does this mean for you? Read on to find out!

New Appliance permits – Licensed contractors can now apply for appliance permits online through Citizen Access (furnace, air conditioner, water heaters, and the associated electrical for appliances) as well as pay for the permit using a Trust Account or Credit Card. The permit will automatically issue without going through administrative review. This fast, convenient process allows you to better serve your customers.

Trust Accounts in Citizen Access – All contractors with Trust Accounts can now use their trust accounts in Citizen Access to pay for permits by following these three easy steps.

1. Admin staff will intake your permit application, review it for accuracy, and formally accept the permit.

2. Upon acceptance, an automated email will be sent to the applicant, letting them know the permit is ready for payment.

3. The applicant will then log in to their Citizen Access account to make payment using either a Trust Account or a credit card.

Other Updates





The City of Rochester has implemented a new kiosk available in the Development Services Infrastructure Center lobby to assist our customers with online permit submission and payments.

One-on-one training is available! If you would like assistance navigating the Citizen Access portal, applying for permit applications, or scheduling inspections, please feel free to stop by or call our office at 507-328-2600 to schedule a training session.

A push toward paper-free! o You will no longer receive a copy of your permit and receipt in the mail. All documents are now available in Citizen Access for you to download at your convenience. o Residential projects no longer require documents on-site. Building permits, inspection cards, and approved plans are electronic, so no need to print your documents!

Step-by-step guidance, located here Applications, Forms, and Guides COMING SOON: Beginning early 2022, the Community Development Department will begin implementing a fully paperless permitting process which will eliminate all paper applications received via email, fax, or walk-in submissions. Stay tuned for further updates!

15 | FOUNDATIONS NEWSLTR

The Nominating Committee will be contacting members about placing their name in nomination for Board positions for 2021.

Board members can serve two terms of two years each.

Three builder directors and two associate directors will have their terms expiring and they are noted with an asterisk *: Current Board members and their status for 2022 Builders *

* *

Mike Allen Melissa Barber Jennifer Lawver Tom Leimer Jessica Markley Luke Stier Charlie Sweeney

Associates * *

Jesse Buhl Becky Holmen Megan Gallagher Adam Giannini Jennifer Mitchell Jason Scrimshaw

Term Expired 2nd Year of 1st Term 2nd Year of 2nd Term Term Expired 2nd year of 1st term Serving as Past President 2nd Year of 1st Term

Term Expired 1st Year of 2nd Term Serving Past President seat 1st Year of 2nd Term 1st Year of 2nd Term 2nd Year of 1st Term

If you are interested in participating on the Board of Directors or would like to suggest another member, please contact John Eischen at the RAB office 507-282-7698 or Luke Stier, 2021 RAB President at 507-3585115.

Nominations will also be taken from the floor at the September General Membership Meeting.

16 | AUGUST - SEPTEMBER 2021

17 | FOUNDATIONS NEWSLTR

2021

Free Admission

BigWeekends

Two

September 18-19 & 25-26, 2021 From 11:00 am to 5:00 pm

2021

One WeekendOnly September 18-19, 2021 From 11:00 am to 5:00 pm

For more information visit RochesterAreaBuilders.com PRESENTED BY

18 | AUGUST - SEPTEMBER 2021

Lot Values Surge at Record Breaking Pace

BY NATALIA SINIAVSKAIA on AUGUST 10, 2021 Lot values for single-family detached homes started in 2020 surged 18%, according to NAHB’s analysis of the Census Bureau’s Survey of Construction (SOC) data. As a result, the median lot price reached a new record high of $53,000.

Though an 18% jump in lot values is unprecedented, it is consistent with other significant building material price hikes and undeniable supply challenges that have been constraining the pandemic-fueled housing boom.

Even when adjusted for inflation, lot values are now approaching the record levels of the housing boom of 20052006 when half of lots were going for over $43,000, which is equivalent to about $55,000 when converted into inflationadjjusted 2020 dollars.

New England has been a division with the most expensive lots for decades and held on to the top position in 2020.

Half of all single-family detached (SFD) spec homes started in New England in 2020 report lot values in excess of $120,000. New England is known for strict local zoning regulations that often require very low densities. Therefore, it is not surprising that typical SFD spec homes started in New England are built on some of the largest and most expensive lots in the nation.

The Pacific division has the smallest lots. However, median lot value reached $103,000 in 2020, the second most expensive value in the nation and a new nominal record for the division. As a result, Pacific division lots stand out for being most expensive in the nation in terms of per acre costs.

Similarly, the neighboring Mountain division recorded a strong rise in lot values and set a new record with half of the lots priced at or above $73,000. This made Mountain division SFD lots third most expensive in the US. The West South Central Division, that includes Texas, posted the fastest lot value appreciation with the median rising 20% to $60,000. Just 8 years ago, half of the SFD lots were going for $30,000 or less – half of the current median.

At the other end of the lot value distribution are two divisions in the South – East South Central and South Atlantic – where most of the lots are sold for significantly less than the national median. Half of the SFD spec homes started in South Atlantic have lot values of $35,000 or less. The corresponding median in East South Central is $40,000.

The East South Central Division simultaneously records the second largest lots in the nation, thus defining some of the most economical lots as well as lowest per acre costs in the US.

For this analysis, median lot values were chosen over averages since averages tend to be heavily influenced by extreme outliers. In addition, the Census Bureau often masks extreme lot values on the public use SOC dataset making it difficult to calculate averages precisely but medians remain unaffected by these procedures.

This analysis is limited to single-family speculatively-built homes by year started and with reported sales prices. For custom homes built on owner’s land with either the owner or a builder acting as the general contractor, the corresponding land values are not reported in the SOC. Consequently, custom homes are excluded from the analysis.

19 | FOUNDATIONS NEWSLTR

Save the Date!

ISG Grand Opening RSVP TODAY! bit.ly/RochLaunch

WHEN

WHERE

S E P T E M B E R 9, 2 0 21 3:00-5:00 PM

ISG ROCHESTER OFFICE H3 Plaza 30 3rd Street, Suite 600 Rochester, MN 55904

ISG Office Tours, Appetizers, and Refreshments

Join us afterwards for ISG sponsored Thursdays Downtown event.

Architecture + Engineering + Environmental + Planning | ISGInc.com | #ISGRochLaunch

20 | AUGUST - SEPTEMBER 2021

Join Us!

Are you a female in the construction industry?

Looking to join a fun, supportive group?

NAWIC Chapter 346 based out of Rochester is now a 30+ member strong group. Our mission is to support and encourage the growth of women in the construction industry through networking, scholarships, and educational opportunities.

Visit nawicsemn.org or email info@nawicsemn.org for more information.

THANK YOU to our 2021 Scholarship Golf Outing Sponsors Golf Ball Sponsor

Golfer Gift Sponsor

Lunch Sponsor

Golf Cart Sponsor

Premium Hole Sponsor

Beverage Cart Sponsor

Contest Sponsors Rochester Area Builders Inc. ECSI System Integrators Legends Concrete Med City Installation

Follow us

@NAWICSEMN

Hole Sponsor

As always, we appreciate your continued support and generosity in promoting the success of women in construction!

21 | FOUNDATIONS NEWSLTR

Thursday, Oct 14, 14, 2021 Mayo Civic Center Auditorium Doors Open at 7 PM | Show at 8 PM

A BENEFIT FOR

#STRUTFORHUMANITY For more information or to purchase tickets, call 507.282.7698 or visit RochesterAreaBuilders.com PRESENTED BY

MEDIA SPONSOR

FOUNDATION SPONSOR

22 | AUGUST - SEPTEMBER 2021

DMC’s September Sustainability Series: EVs and Charging for Architects, Developers & Real Estate Professionals Wednesday, September 15, 2021, 12:00 – 1:30 p.m.

DMC’s September Sustainability Series, in partnership with the City of Rochester, will feature an exciting opportunity for the development community with Minnesota-based Shift2Electric presenting its continuing professional education course “EVs and Charging for Architects, Developers & Real Estate Professionals” with Jukka Kukkonen, Chief EV Educator and Strategist for Shift2Electric.

According to Shift2Electric, “our electric grid is becoming cleaner at an accelerating pace because Minnesota utilities are closing coal plants and transitioning to renewable energy,” providing the opportunity to shift our transportation sector to electric.

Rochester’s own public utility has made the commitment to be 100% renewable by 2030 and has projected approximately 15,000 EVs to be registered on the roads within Rochester by then.

Electric Vehicles (EVs) provide a new opportunity for cleaner and more efficient transportation. Current surveys show that about 30% of people would consider an EV as their next vehicle, and auto manufacturers are rapidly bringing new, exciting options to the market.

We know that most charging happens overnight, at home, which means residential and commercial developers alike need to be EV ready. In Rochester, almost 35% of all housing units are renter-occupied and this number is likely to increase as the urban population grows. Public and private development must work together to support the community’s charging infrastructure needs. This doesn’t mean a charging station in every parking spot, but does encourage properties to have affordable and future-proof designs by installing charging infrastructure now.

This 90-minute course will give participants an understanding of basic technologies behind the shift to electric, the latest market developments and EV models available in the US, how to incorporate charging infrastructure and installation, safety aspects, code developments, and more with time at the end for participant Q&A. Course details, available credit(s), and a full list of learning objectives can be viewed here. This presentation is sponsored by Fresh Energy. Participation in this DMC Sustainability Series course is free, access the Zoom link by visiting https://dmc.mn/events/#post12429.

23 | FOUNDATIONS NEWSLTR

Media Contact Jenna Bowman, Strategic Communications & Engagement Director Direct: 507-328-2913 | E-mail:jbowman@rochestermn.gov

Equity in the Built Environment; Establishing Career Pathways for Black, Indigenous, & People of Color (BIPOC) Women In March of 2021 the City of Rochester submitted its application in the first round of Bloomberg Philanthropies’ Global Mayors Challenge. Focusing on economic recovery and growth, the City hopes to address health, income, and labor disparities deepened by COVID-19, particularly for Black, Indigenous, and People of Color (BIPOC) women in Rochester. With well over 2,000 annual construction jobs generated by the Destination Medical Center (DMC) development initiative, intervention will be essential to ensure Rochester’s economic recovery over the next 20 years benefits the people of our community equitably.

Rochester was announced as a 2021 Global Mayors Challenge Champion City in June, one of 50 cities selected out of over 600 applicants across the world. Phase 2 of the application process gives Rochester a chance to test our idea over the next few months, bringing in community co-designers to assist in the development of solutions.

The co-design concept has quickly become a new and innovative type of community engagement that the City of Rochester is committed to. Community co-design aims to engage and elevate the voices that have historically been underrepresented in our typical government processes. With 40% of Black residents living in poverty and the level of unemployment among BIPOC women far higher than any other demographic group, BIPOC women have key perspectives in designing pathways for their increased participation in Rochester’s growing construction industry. View the City of Rochester’s “90 Second Pitch” discussing the importance of co-design within this process.

In addition to a mix of BIPOC women from the community, who are and are not within the construction industry, community co-designers also include local representatives in employment and education. Co-designer participants include Benike Construction, CRW Architecture + Design Group, Rochester Community and Technical College, Rochester Public Schools, and union representatives from Construction Partnership, Inc. Over the next 6 weeks community co-designers will engage in three, two hour sessions to share their lived experiences, perspectives, and knowledge as Rochester residents and from their identified community. In between sessions, each co-designer will spend time capturing and sharing the experiences of the broader communities they are a part of. Key themes identified earlier in the process included culture clash, overall knowledge and awareness of the industry and available jobs, and education opportunities. Insights from their conversations will be used to identify and inform the development of sustainable solutions in the built environment that will increase access and opportunities for BIPOC women in Rochester.

24 | AUGUST - SEPTEMBER 2021

JOB SHADOWING OPPORTUNITIES Rochester Area Builders provides job shadow opportunities for Kasson-Mantorville carpentry students. Our first opportunity to host is, October 7th, 8:30am - 11:45am.

We are looking for hosts in the following areas:

• Architect • Auto Body Repair/ • • • •

Mechanic Carpenter Closets CNC Machinist Construction Management

• • • • • • •

Drywall Electrician Engineer Excavation Financial Advisor Fire Protection Heavy Equipment Operator

• • • • • •

HVAC/Plumbing Interior Design Linesman Mason Painting Siding & Windows

Contact Rebekah for more information.

25 | FOUNDATIONS NEWSLTR

Rising Job Openings

BY ROBERT DIETZ ON AUGUST 9, 2021 In the June labor market data, job openings for the overall economy increased to 10.1 million open positions. What had been a challenge in certain sectors, like construction, is now a broad labor access issue as businesses seek workers as the economy reopens.

The count of open construction jobs increased in June to 339,000 unfilled positions, according to data from the BLS Job Openings and Labor Turnover Survey (JOLTS). The housing market remains underbuilt and requires additional labor, lots and lumber and building materials to add inventory.

Overall, hiring in the construction sector remained solid in June, increasing to a 4.8% rate. The postvirus peak rate of hiring occurred in May 2020 (10.3%) as a rebound took hold in home building and remodeling. Hiring has generally slowed since that time, with the exception of a weather-related rebound in March 2021. Hiring has been impeded due to a lack of workers.

Construction sector layoffs ticked up in June at a 2.5% rate. In April 2020, the layoff rate was 10.9%.

Since that time however, the sector layoff rate has been below 3%, with the exception of February 2021 due to weather effects.

The job openings rate in construction increased to 4.4% in May, with 339,000 open positions in the sector. This is higher than the 238,000 count recorded a year ago.

Looking forward, the construction job openings rate is likely to see increased upward pressure as both the residential and nonresidential construction sectors show gains. Attracting skilled labor will remain a key objective for construction firms in the coming quarters and will become more challenging as the rest of the economy recovers.

26 | AUGUST - SEPTEMBER 2021

ONB Bank is proud to be the Overall Event Sponsor for the

Rochester Area Builders

September 18-19, 25-26, 2021 Admission is FREE!

VISIT WITH US TODAY FOR YOUR HOME MORTGAGE PREAPPROVAL. Preapproval is subject to credit review.

CRYSTAL HUGHLEY REAL ESTATE BANKER

Rochester Location 975 34th Ave NW (507) 424-1571 NMLS ID#1389898

crystal.hughley@bankononb.com

bankonONB.com

27 | FOUNDATIONS NEWSLTR

Goodin Company carries a full complement of products for the markets we serve.

Are you in need of products for plumbing, HVAC, industrial, or pump and well applications?

We are your Source of Supply, serving the industry since 1937.

PLUMBING

HVAC

Goodin Company maintains a complete inventory in a wide range of major brand plumbing products for both residential and commercial plumbing contractors.

To support our plumbing inventory, we maintain showrooms in many of our branch locations.

Our HVAC division encompasses both hydronic and warm air heating as well as central and split system air conditioning equipment for residential and commercial systems. We also provide technical support in design and layout.

INDUSTRIAL

PUMP AND WELL

We supply a wide range of industrial pipe, valves, and fittings. To compliment our pipe inventory, we offer a complete in-house pipe fabrication service in which we are able to cut, thread and groove pipe to our customers’ specifications.

Goodin Company’s pump and well division maintains a complete inventory of pumps and repair parts for the residential water well drilling contractor, as well as the large commercial or municipal driller.

MINNEAPOLIS (612) 588-7811 ST. PAUL (651) 489-8831 DULUTH (218) 727-6670 DETROIT LAKES (218) 847-9211 ST. CLOUD (320) 259-6086

BRAINERD (218) 828-4242 ROCHESTER (507) 529-1284 FARGO (701) 298-3210 SIOUX FALLS (605) 332-3444 OMAHA (402) 331-6813 www.goodinco.com

EAU CLAIRE (715) 830-1800 WAUSAU (715) 675-2513 MADISON (608) 663-0331 MILWAUKEE (262) 781-1770 GREEN BAY (920) 884-9494

28 | AUGUST - SEPTEMBER 2021

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.

29 | FOUNDATIONS NEWSLTR

30 | JULY - AUGUST 2021

ROCHESTER BUILDING PERMITS NEW RESIDENTIAL

2021

Single Family Dwelling

21

7,045,254

18

5,810,385

Townhome Dwelling

4

1,268,180

0

0

Two-Family Houses

0

0

8

2,106,182

Manufactured Home

0

0

0

Multi-Family Bldgs (Units)

0

0

0

VALUATION 2020

VALUATION

JULY 2021

2012 2013 2014 2015 2016 2017 2018

2019 2020 2021

January

6

19

11

20

25

15

19

6

17

23

February

20

15

14

19

15

20

16

5

13

8

March

32

29

28

30

31

44

25

27

32

35

0

April

29

39

25

22

33

45

40

23

19

19

0

May

22

27

35

19

56

43

28

27

19

26

June

32

33

47

51

41

52

38

31

21

30

July

39

39

38

29

44

45

36

26

26

25

TOTAL

180

201

198

190

245

264

202

144

147

166

August

38

21

60

33

47

30

31

24

17

September

22

22

23

27

52

35

39

12

30

October

23

34

35

49

25

36

29

27

28

November

22

26

26

23

12

41

21

47

23

33

EXISTING RESIDENTIAL Deck Addition

26

371,095

51

435,438

Room Addition

3

249,000

2

205,000

Porch Additions

2

83,000

3

32,500

Other Additions

4

127,440

3

71,700

Basement Finish

10

134,738

19

373,718

Alterations

55

1,247,855

53

387,653

Multi-Family Addition

0

0

0

0

Multi-Family Alterations

6

133,924

9

505,986

December

14

22

27

42

37

25

34

21

TOTAL

299

326

369

369

418 429 347

289

266

166

*Total may differ as permits may have been voided.

NEW COMMERCIAL Assembly (Church)

0

0

0

0

Assembly (General)

0

0

0

0

Assembly (Restaurant/Bar)

1

475,583

0

0

Business

0

0

1

2,017,212

Education

0

0

0

0

Factory/Industrial

0

0

0

0

Institution

0

0

0

0

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)

1

516,450

0

0

Storage (General)

2

818,225

0

0

Storage (Parking Garage)

0

0

0

0

Storage (Warehouse)

0

0

1

383,600

Utility (General)

4

85,000

0

0

Utility (Private Garage)

0

0

0

0

YEAR TO DATE STATISTICS NO.

2021 VALUATION

BUILDING PERMITS ISSUED TO DATE

NO.

2020 VALUATION

1367

290,452,548

1085

102,313,501

Single Family Dwelling

146

50,285,923

123

36,418,559

Multi-Family Buildings Total Units: 127

1

14,800,000

1

10,640,000

TRADE PERMITS ISSUED TO DATE

6186

74,293,764

5521

61,290,967

Electrical

2382

34,088,110

2089

26,811,704

Electrical (Temp. Service)

139

50,005

157

59,125

1732

20,735,747

1526

18,667,659

Mechanical (Gas Piping)

365

490,252

340

547,677

Mechanical (Fireplace)

191

972,722

171

692,195

Mechanical (HVAC)

Mechanical (Hydronic) Plumbing TOTAL PERMITS YTD

99

5,395,865

92

2,694,753

1278

12,561,063

1146

11,817,854

7553

364,746,312

6606

261,603,979

EXISTING COMMERCIAL Addition

1

22,000

2

2,957,420

25

14,649,370

27

9,045,591

Structural Shell

0

0

0

0

“White Box”

0

0

0

0

Interior Demolition Only

0

0

0

0

Other Phased Permits

0

0

0

0

Alterations

OTHER CONSTRUCTION Business Signs

13

112,005

3

35,836

Advertising Signs

1

70,000

0

0

Footings & Foundations

1

1,265,000

14

0

Demolition

4

0

2

0

Information and downloads available at Rochester Building Safety Department’s website: https://www.rochestermn.gov/government/departments/building-safety/reports-building-permits/building-permits-2021

JULY 2021

PINE ISLAND

BUILDING PERMITS

NUMBER

VALUATION

Single Family Detached

NEW RESIDENTIAL

0

0

Single Family Attached

0

0

Basement Finish

1

20,000

Deck Addition

0

0

Existing Residential

31 | FOUNDATIONS NEWSLTR

OLMSTED COUNTY PERMITS YTD

2021

VALUATION

2020

VALUATION

15

3,779,520

29

10,087,860

Single Family-Attached

8

1,180,761

0

0

9

486,013

19

944,350

23

153,674

21

107,660

9

492,850

4

32,760

95

1,329,661

46

836,190

3

66,118

1

9,612

RESIDENTIAL Addition Alterations Garage Addition

NEW COMMERCIAL/INDUSTRIAL

VALUATION

Addition

1

121,056

1

422,867

Alterations

5

151,000

7

1,182,464

Re-roofing

1

3,900

2

8,250

14

303,733

7

183,664

9

0

31

0

133

1,004,003

119

1,223,974

70

735,013

71

971,841

413

19,118,783

363

16,740,446

Pool, Retaining Wall, etc.

Manufactured Homes

MISCELLANEOUS PERMITS Mechanical Plumbing

Recreational

0

0

0

Church/Religious

0

0

0

0

Industrial/Warehouse

1

2,162,198

0

0

Service/Repair Station

0

0

0

0

Store/Restaurant

1

336,786

1

355,968

Nonresidential Building

2

504,159

0

0

VALUATION $2,859,675 PERMITS 15

VALUATION $0 PERMITS 0

VALUATION $2,194,373 PERMITS 30

2020

OTHER STRUCTURES

Deck

2021

VALUATION

COMMERCIAL/INDUSTRIAL

Single Family-Detached Garage

2021

NEW RESIDENTIAL

JULY 2021

0

TOTAL PERMITS

BYRON NOW INCLUDED IN OLMSTED COUNTY PERMITS

OLMSTED COUNTY PERMITS JULY

2020

VALUATION $1,737,051 PERMITS 11

BYRON

VALUATION $0 PERMITS 0

VALUATION $0 PERMITS 0

EYOTA

VALUATION $750,413 PERMITS 24

MARION

VALUATION $18,900 PERMITS 8

ORONOCO TWP

VALUATION $257,313 PERMITS 3

VALUATION $103,676 PERMITS 2

QUINCY

VALUATION $929,242 PERMITS 19

VALUATION $614,877 PERMITS 19

STEWARTVILLE

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 7-2018

7-2019

7-2020

7-2021

7-2018

7-2019

7-2020

7-2021

7-2018

7-2019

7-2020

7-2021

7-2018

7-2019

7-2020

7-2021

7-2018

7-2019

7-2020

7-2021

7-2018

7-2019

7-2020

7-2021

7-2018

7-2019

7-2020

7-2021

7-2018

7-2019

7-2020

7-2021

7-2018

7-2019

7-2020

7-2021

7-2018

7-2019

7-2020

7-2021

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

7-2020

7-2021

Percent Change

YTD 2020 YTD 2021

706

750

+ 6.2%

4,221

4,316

+ 2.3%

673

600

- 10.8%

3,926

3,970

+ 1.1%

793

615

- 22.4%

3,512

3,571

+ 1.7%

48

21

- 56.3%

59

34

- 42.4%

$217,925

$260,000

+ 19.3%

$217,925

$243,800

+ 11.9%

$247,731

$289,207

+ 16.7%

$242,639

$273,718

+ 12.8%

98.3%

102.3%

+ 4.1%

97.3%

100.6%

+ 3.4%

198

164

- 17.2%

198

175

- 11.6%

1,067

711

- 33.4%

--

--

--

2.0

1.3

- 35.0%

--

--

--

Percent Change

Current as of August 4, 2021. All data from Southeast Minnesota REALTORS® and NorthstarMLS®. Provided by the Minnesota Association of REALTORS®. Report © 2021 ShowingTime. | 2

32 | AUGUST - SEPTEMBER 2021

More Young Workers Join the Construction Labor Force

BY NA ZHAO on AUGUST 3, 2021 The latest labor force statistics from the 2019 American Community Survey show that more young people are entering the construction trades. The share of workers under the age of 25 reached 10.8% in the construction industry in 2019, compared to only 9.7% in 2015.

Consequently, the median age of construction workforce is 41 in 2019, a year younger than in 2018. This is good news for the long-run objective of the industry bringing in a new generation of skilled labor, but more needs to be done.

However, the proportion of older construction workers, ages 55+, also increased from 18.1% to 20.3%. Simultaneously, the share of construction workers ages 25 to 54 decreased from 72.2% in 2015 to 69.0% in 2019. This change in age composition of construction labor force is largely because the last elements of the Baby Boomer generation are entering the 55+ group and a large share of skilled workers displaced during the Great Recession left the construction industry.

Compared to the workforce in all industries, construction has a relatively smaller share of younger workers, but a larger proportion of workers in their prime-working age. The chart above shows that, as of 2019, only 8.7% of

construction workers were 20-24 years old and 2.1% under 20, less than the employment share of these two age groups in all industries. Around 69% of construction workforce were in the prime working years of 25-54, compared to 63% in overall workforce.

The relative greater share of workers in construction in the 35-55 age group, mostly Gen X-ers, reveals the current challenge. Gen X is a smaller generational group than the Baby Boomers. The share of workers ages 55 and older was 20.3% in construction, implying that a substantial portion of workforce could retire in near future, highlight the need for more efforts in attracting talent in the industry.

33 | FOUNDATIONS NEWSLTR

PROFILE ENHANCEMENTS STANDARD

• Company name, address and phone number • Website, address map, and phone button • 5 categories

UPGRADED

ENHANCED

PREMIUM

(Includes Standard Listing)

(Includes Upgraded Listing)

(Includes Enhanced Listing)

• 12 categories • Company Description (200 characters) • Keywords (240 characters)

• Company Description (1600 characters)

• Logo on search results • Social networks can be added

• Keywords (unlimited characters)

• Hours of Operation

• 200 characters on search results

• Driving Directions

• Bulleted list

• Photo Gallery can be added • YouTube video can be added

• Logo on profile page

No additional Charge

$100 annually

$300 annually

$500 annually

BANNER ADS Construction Professionals Building Your Community

Choose from the following options for placement: • All Categories cost $599/year • Directory Search (plus results) cost $499/year • All Events on Member Information Center

cost $399/year

• Specific Category & Quick Link (plus letter)

cost $399/year

• 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 | AUGUST - SEPTEMBER 2021

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

nahb.org/Savings

35 | FOUNDATIONS NEWSLTR