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THIS ISSUE SPONSORED BY:
THE MAGAZ I NE FOR BATC MEMBERS
JULY - SEPT 2013
H O M EI N D O O RSPRINKLERSS T R E E TIMPROVEMENTPARK F EE SD E
S I G NPROFESSIONALL I C E N S U R ER A D O NAWARENESSSTATUTE OFR E
P O S EI NDEMN I F IC A T I O NE X T E N DP R O D U C
TSTEWARDSHIPPAINT TAX BILL
2013LEGISLATIVESESSIONREVIEW
INSIDE
SPECIALSECTION
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0DSOH*URYH&RRQ5DSLGV$SSOH9DOOH\(GLQD6W3DXO:RRGEXU\0SOV2XWOHW5RFKHVWHU
For over 50 years our family business has been powered by sons
and daughters. And now, with the installation of more than 400
solar panels and reflectors on the roof of our Saint Paul
headquarters, were benefiting from a good deal of SUN power. In
fact, up to 20% of our electricity now comes from Mother Nature.
This brings us nice, warm feelings.
Rest assured that Minnesotas appliance specialists now recycle
all packaging and replaced appliances responsibly to help ensure a
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now greener than ever
a Minnesota family-owned business
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4 Executive DirectorLetter
6 A Word From OurPresident
8 News
10 Events Calendar
12 COMPANY PROFILE:Gerhards
14 Remodelers Corner
18 BATC Board Q&A
24 PROFILE:Housing First Chair, Bill Burgess
62 Parade of HomesSM
64 Welcome NewMembers
66 Member Spike
69 Get Smart AboutYour InsuranceRisk Compliance
74 BATC Foundation
78 MN Green Path
82 Member News
NEWS EVERYDAY ON THE BLOG: WWW.BATC.ORG/BLOG JULY/SEPTEMBER 2013
BUILDERS DIGEST 3
Advertising DirectoryAndersen Windows . . . . . . . . . . . . .
. . . . . . . . . . .2, 3Bank of America . . . . . . . . . . . . .
. . . . . . . . . . . . . . .71Brock White Company . . . . . . . .
. . . . . . . . . . . . . . .81Brush Masters . . . . . . . . . . .
. . . . . . . . . . . . . . . . . .10CenterPoint Energy . . . . . .
. . . . . . . . . . . . . . . . . . .73Corporate 4 Insurance Agency
Inc. . . . . . . . . . . . . .69ECCO Midwest, Inc. . . . . . . . .
. . . . . . . . . . . . . . . . .15Erosion Works . . . . . . . . .
. . . . . . . . . . . . . . . . . . . .61Friendly Chevrolet . . . .
. . . . . . . . .Inside Front CoverHedberg Landscape & Masonry
Supplies . . . . . . .19IDC-Automatic . . . . . . . . . . . . . . .
. . . . . . . . . . . . . .11In-Focus Systems . . . . . . . . . . .
. . .Inside Back CoverInstalled Building Solutions . . . . . . . .
. . . . . . . . . .77J.B. O'Meara Company . . . . . . . . . . . . .
. . . . . . . . .75JL Schwieters Bldg. Supply/Const., Inc. . . . .
. . . . .8J&W Asphalt, Inc. . . . . . . . . . . . . . . . . . .
. . . . . . . .70James Hardie Building Products . . . . . . . . . .
. . . .84Jeff Belzers Chevrolet . . . . . . . . . .Inside Front
CoverLake Elmo Bank . . . . . . . . . . . . . . . . . . . . . . . .
. . . .65Lampert Lumber . . . . . . . . . . . . . . . . . . . . . .
. . . . . .17
Luther Brookdale Chevrolet . . . . .Inside Front CoverLyman
Lumber Co. . . . . . . . . . . . . . . . . . . . . . . . . .
.23Marvin Windows and Doors . . . . . . . . . . . . . . . . . .
.7Merit Chevrolet . . . . . . . . . . . . . . .Inside Front
CoverMinnesota Department of Health . . . . . . . . . . . . .
.5Molin Concrete Products Company . . . . . . . . . . . .65NAHB . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.61Orion Home Systems . . . . . . . . . . . . . . . . . . . . . . .
.81ProBuild . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . .21Residential Warranty Company, LLC . . . . . . . . .
. .65Schwieters Companies, Inc. . . . . . . . . . . . . . . . . .
.67Shaw/Stewart Lumber Co. . . . . . . . . . . . . . . . . . .
.83Southview Design . . . . . . . . . . . . . . . . . . . . . . . .
. .63Stein Insurance Agency . . . . . . . . . . . . . . . . . . . .
. .83Suburban Chevrolet . . . . . . . . . . . .Inside Front
CoverSynergy Products, LLC . . . . . . . . . . . . . . . .Back
CoverThermo-Tech Windows, Inc. . . . . . . . . . . . . . . . . .
.79Trimpac, Inc. . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . .61Walser Chevrolet . . . . . . . . . . . . . .Inside
Front CoverWarners' Stellian Co., Inc. . . . . . . . . . . . . . .
. . . . . . .1Wells Fargo Home Mortgage . . . . . . . . . . . . . .
. . . .9
table ofcontents
BATC 2013 President,Pamela Belz, Senior HousingPartners, looks
perfectly athome in DC as she heads into a meeting with
ThirdDistrict Representative ErikPaulsen.
2013 LEGISLATIVESESSION REVIEW
SPECIAL SECTION: PAGES 25-60
on the cover
-
WE HID IT.A nail is hidden somewhere inevery issue of the
Builders Digest, including the oneyoure holding right now.
It could be anywhere tuckedinto a photo or stuck in a draw-ing
in a margin in the textbody even used as an excla-mation point at
the end of aheadline. It resembles a real-lifenail and looks
something likethis
The nail above is just an example it is not the real one hidden
forthis issues contest. Weve con-cealed the real one elsewhere
inthis issue, and it could be a dif-ferent color or size. Keep
in
mind, the SpikeClub logos
nail doesnotcount.Whenmem-bers
find thenail, they
can email orfax a note to the Builders Associ-ation of the Twin
Cities, tellingwhat page its on. Participantswill be entered into a
drawing towin a business-card size ad in thispublication or a set
of memberlabels (non-electronic version).All other entries receive
$20 inBATC Bucks. Entries must be re-ceived by August 15, 2013.
Found the nail? Email the pagenumber of your guess to
[email protected].
Or, mail or fax to: BATC NailHunt, 2960 Centre Pointe Dr.,
Roseville, MN 55113Fax: 651.697.7575.
FINDTHIS
4 BUILDERS DIGEST JULY/SEPTEMBER 2013 NEWS EVERYDAY ON THE BLOG:
WWW.BATC.ORG/BLOG
|| EXECUTIVE DIRECTOR LETTER
Found It.Charlie Bradburn,
Automated Building Components
found the nail on page 52 of the April-June 2013
issue of theBuilders Digest
ITS A GAME CHANGER
When a single event ordecision has far-reachingand powerful
implications,we call it a game changer.Though the phrase hasbecome
clich, the world ofenergy efficiency and greencertification in
Minnesotatruly experienced a gamechanger in early June whenthe
NorthStarMLS went livewith two new fields allowingfor a Home Energy
RatingSystem (HERS) score andgreen certification identifica-tion.
The decision byNorthStarMLS was the resultof outreach by BATC,
andsuggests a bright future forBATCs Green Path Programand our Home
PerformanceReport (HPR).
We want to express ourstrong thanks and apprecia-tion to John
Mosey, CEO ofthe NorthStarMLS, his Boardof Directors, his staff
team,and the Realtor Associationsfor their support in this
neweffort to provide consumerswith valuable informationabout the
performance oftheir new or newly remod-eled home. On the BATCside,
recognition is due toour Green Path Committee,our Public Policy
DirectorJames Vagle, who spearheadsour Green Path program,Dawnita
Parmely, our Cre-ative Services Director whodesigned our HPR
andWendy Danks, our Market-ing and CommunicationsDirector, who has
integrated
Green Path deeply into ourParade of HomesSM andRemodelers
Showcase.
BATC has been engagedin the green building spacefor some five
years, the lasttwo with the Green Path pro-gram, and recognition
onNorthStarMLS of HERS andgreen certification has longbeen sought.
NorthStarMLSis one of the largest MLSservices in the country andits
acknowledgement of thegreen space in housing trulyis a game changer
in thelegitimacy it provides togreen building programs andthe data
that we can minefrom MLS regardingconsumer behavior. In
othermarkets in which the MLSdenotes green certification,certified
homes tend to sellfaster and at a premium. Thisalso positions our
market toreach the Millennial buyer,which research shows has
apreference for energyefficient and sustainablehousing.
If you are not yet familiarwith our Green Pathprogram, now is
the time toconsider putting the homesyou build on the Green
Paththrough energy tested oradvanced and master certifi-cation
options. Its one clearway to demonstrate to yourcustomers the
benefits ofnew and newly remodeledhomes against existing hous-ing
stock. In fact, we thinkits a game changer.
David SiegelBATC Executive Director
Read more aboutthe MN GreenPath/NorthstarMLSWinning Combination
onpage 78.
-
To order a free radon resistant toolkit contact:Tom Standke -
[email protected]
Can you tell the difference? We Cant.
Build to the Gold Standard for Radon Resistant New Construction
so the new homes you build
dont suck in radon*
www.HEALTH.STATE.MN.US/GOLDSTANDARDwww.HEALTH.ST
Does your house suck?
This house sucks This house doesnt
* Radon is a soil gas that causes lung cancer and 48% of
Minnesota homes have radon levels above the federal action
level.
-
6 BUILDERS DIGEST JULY/SEPTEMBER 2013 NEWS EVERYDAY ON THE BLOG:
WWW.BATC.ORG/BLOG
|| A WORD FROM OUR PRESIDENT
Fellow Members,We can breathe a sigh of relief at the closing
ofthe legislative session. In short, it was brutal.Our teamJames
Vagle, Pete Coyle, and JuliePerrus along with BAM, did a great
job.
Although we have some solid pro-housinglegislators who gave
their best, the currentpolitical makeup of the House, Senate
andGovernors office is not friendly enough tohousing. BATC played
incredible defense andwas successful in defeating or revising
initia-tives that would have harmed us all, such asexcessive park
fees, new street improvementdistricts, mandatory radon testing,
insuranceissues with sub-contractors, environmentalstewardship
requirements for paint and finishproducts, and of course the
mammoth pro-posal to tax B2B services like design, legal,payroll
and real estate commissions. Andalthough banning the Home Indoor
SprinklerSystem Mandate was broadly supported byboth parties, again
this year the Governorpromised a veto.
The next step for the sprinkler initiativewill be the
Administrative Law Judge (ALJ)process, which will begin when the
Depart-ment of Labor and Industry releases theSONAR (Statement of
Need and Reasonable-ness) on the new codes sometime thissummer.
This has been an extremely long and frus-trating journey. The
Governor said to let theprocess work, but again and again this
stops athis desk. The following provides a brief his-tory:
Our legislature has twice passed a billbanning the mandate and
twice the Gov-ernor vetoed. Language supported by BATC was
twiceamended onto omnibus bills receivingbroad bi-partisan support,
but under thethreat of a Governors veto, it wasremoved from both
bills in conferencecommittee reconciliation. In the code
development process theCode Advisory Committee twice voted noby
large margins. 40 of 42 other states have banned themandate; only
California has adopted in
full. Minnesota is one of eight who stillhavent resolved this
issue. The public overwhelmingly opposes theHome Indoor Sprinkler
System Mandate forall homes in two surveys taken over thepast two
years. At one point the Governor appeared tobe willing to discuss a
compromise fromthe two sides, then the next day steppedaway. It
would seem the process has workedand the people have spoken but the
Gov-ernor has not heard.
This unfortunately underscores the reasonthat political activity
is an essential element ofadvocacy efforts. Advocacy = lobbying
+research + legal action + political fundraising,and they are all
equally importantcomponents. One element of political activityis
participation in support of candidates forelection. BATCs Housing
First independentexpenditure fund is a crucial element. I amhappy
to say BATC has a blue ribbon team onHousing First. They are true
champions of ourindustry and they are reaching out to others
tocontribute. We are growing Housing First intoa major entity to
support pro-housing candi-dates in this next election cycle. Our
new duesstructure will ensure our advocacy effortsblossom, but
contributions are needed toboost us in the coming election
cycle.
Other groups like environmental interests,nursing, realtors, and
local governmentshave all exceeded housing in political pres-ence
and fundraising activity. The auto dealersand liquor lobby have
excelled in this fordecades. They are the first call
legislatorsmake when legislative issues affecting theirinterests
are considered.
We want to always be the first call legisla-tors make when
housing interests arise, notcities, fire chiefs and environmental
groups.This will happen through our continued com-mitment to
advocacy, partnership building,and our growing Housing First
political activ-ity. Please watch for and support HousingFirst
initiatives and functions.
There is much to be done, back to work!
Congratulations to our toplobbyist Peter Coyle andthe Larkin
Hoffman TeamBATC has worked with Pete Coyle asour chief lobbyist
for a number ofyears, so when we learned his firmwon the first ever
Lobbyist of theYear at the fourth annual Leaders inPublic Policy
Awards, we werethrilled. The Awards are sponsoredby Capitol Report
and Politics in Minnesota, and recognize individualsand
organizations that have madesignificant contributions toward
Min-nesotas political, public policy orcivic environment during the
2013session. The honor recognizes thatLarkin Hoffmans lobbying team
hadthe most successful year for theirclients at the Capitol in
2013.
We are very proud of our team fromLarkin Hoffman, and
wholeheartedlyconcur with their selection as toplobbyists. Thanks
to their hard work,we were able to turn what couldhave been a
disastrous legislativesession into one with a number ofsuccesses.
Read more about that inour special Legislative Session Wrapinside
this issue of Builders Digest.
You can send your congratulations toPete and the team at
[email protected].
Pamela BelzSenior Housing Partners
GOOD ON YOU
WE CAN NOW BREATHE A SIGH OF RELIEF
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Arrow Building Centers15 Locations
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Automated Building Components-Millwork DivisionChanhassen
952-937-9060ABCMillwork.com
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FullertonLBR.com
Lampert LumberApple Valley Lake ElmoNorth Branch RockfordNorthfi
eld St Croix Falls
651-695-3600LampertLumber.com
Scherer Bros. Lumber Co. Arden HillsHopkinsShakopee
952-938-2741SchererBros.com
Spring Lake Park Lumber 8329 Central Ave. NE
Minneapolis763-784-3062SLPLumber.com
Visit your local Marvin dealer today for more information and to
discuss solutions for your next project.
2013 Marvin Windows and Doors. All rights reserved. Registered
trademark of Marvin Windows and Doors. ENERGY STAR and the ENERGY
STAR certifi cation mark are registered U.S. marks.
Whether its remodeling or replacement, Marvin has a solution.
The broadest range of products combined with the most energy e@
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innovation and craftsmanship backed by an unwavering commitment to
service and support from local retailers. Get a closer look at our
extraordinary range of replacement and remodeling options with our
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3:23 PM
-
In June more than a dozen BATC membersjoined over 750 builders
from across the nationin Washington D.C. for the annual
National
Association of HomeBuilders (NAHB) Leg-islative Conference.They
were there to urgelawmakers to supportpolicies that will keepthe
housing recoverymoving forward andincrease housing oppor-tunities
for allAmericans. BATC mem-bers met with theelected officials
and/or
staff from all of our congressional and US Sen-ate offices,
including strong BATC supporterRep. Eric Paulsen (R) from
Minnesotas ThirdCongressional District.
Accounting ManagerRon DeCoux
Administrative &Membership Assistant
Heather Litchy
Advertising SalesKori MeewesBrad Meewes
BATC FoundationExecutive Director
Perri Graham
CommunicationsCoordinatorKaty Ervin
Director of Administrative
ServicesMaxine Miller
Director of Public Policy & MN Green Path
Executive DirectorJames Vagle
Education CoordinatorBeth Graham
Marketing & Events Manager Nicole Coon
Marketing AssistantChristina Martin
Membership DirectorDeb Earl
Public Policy Assistant
Mary Schweich
Receptionist Emily Petermann
The BUILDERS DIGEST magazine is the officialpublication of the
Builders Association of the TwinCities (BATC). The BUILDERS DIGEST
is publishedand distributed four times per year to its membersand
others associated with the building industry.
Neither the advertisers, nor BATC, will be responsible or liable
for misinformation,misprints, typographical errors, etc., herein
contained. For advertising rates,resource file or address change
information, contact BATC. Suggestions, ideas andletters are
welcome. If circumstances require, BATC reserves the right to
increase ordecrease the number of BUILDERS DIGEST issues published
on an annual basis.
Builders Association of the Twin Cities (BATC)2960 Centre Pointe
Drive, Roseville, MN 55113-1182Phone: 651-697-1954 | batc.org |
Fax: 651-697-7599 | paradeofhomes.org
PresidentPamela Belz
Senior Housing Partners
Builder Vice President
Shawn NelsonNew Spaces
Associate Vice President
Kerry MulcroneKerry & Co.
Past Associate Vice President
John ZirbesLyman Lumber Co.
SecretaryDaryl Doehr
Marvin Windows andDoors
TreasurerChris ContrerasRyland Homes
Immediate Past President
Curt ChristensenLee Lyn Construction,
LLC
Past President Council
RepresentativeDoug Nelson
Retired
EXECUTIVE BOARD
BOARD OF DIRECTORS
BATC RemodelersSMJolynn Johnson
Crystal Kitchen Center,Inc.
Large VolumeBuilders
Marv McDarisPulte Homes ofMinnesota, LLC
Membership Pattie Martin
Glowing Hearth &Home
Parade of HomesSMPaul Donnay
Donnay Homes, Inc.
Public Policy Jason McCarty
Westwood Professional Services, Inc.
Small VolumeBuilders
Gary KraemerJohn Kraemer & Sons
Inc.
National DirectorsKathe Ostrom
C.N. Ostrom & Son
At-Large MemberTodd Polifka
Brush Masters
At-Large MemberBrett Remme
In-Focus Systems
Executive DirectorDavid Siegel
Editor/Director of Marketing & CommunicationsWendy Danks
Creative Services Director/Graphic DesignerDawnita Parmely
Graphic DesignerLaurie Spartz
Creative Services CoordinatorCasey Hafner
8 BUILDERS DIGEST JULY/SEPTEMBER 2013 NEWS EVERYDAY ON THE BLOG:
WWW.BATC.ORG/BLOG
Rebates Anyone?BAMs Member Rebate Program helpedBATC members
earn $8,898.00 in 2012
(averaging $988.66 each) justby completing easy (no
receiptsrequired), quarterly onlineforms about purchased
materi-
als from 40 national manufacturers.
Learn more online at hbarebates.com (click on theBAM link).
BATC Open Golf TournamentFull, Dinner Spots RemainThe BATC Open
Golf Tournament set for August 6 at Prestwick Golf Club is SOLDOUT,
but the dinner-only option is still avail-able at just $45.Register
at www.BATC.org
ParadeofHomes.org Upgrades AvailableShowcase your company,
products and serv-ices with photos, testimonials, videos andmore to
the huge ParadeofHomes.org audi-ence. See page 22 for more
details.
Did you miss the BATC Golf Tournament?Dont fret, the BATC
FOUNDATION GOLFTOURNAMENT is just around the corner.Registration is
now open for the 1st AnnualFoundation Golf Tournament and its
fillingfast! Dont golf? Come just for the social hourand
dinner.
Scheduled for Tuesday, September 24 atthe Legends Golf Club in
Prior Lake. Recog-nized by Golf Digest as Best in State andTop 10
Best New Upscale Courses in Amer-ica, Legends is an 18-hole
championshipgolf course nestled in a wooded, yet marshyarea on the
border of Lakeville and PriorLake.
This golf tournament will benefit yourvery own BATC Foundation!
Come out, sup-port a great cause and have a greatafternoon of golf.
Contest and Tee sponsor-ships are available.
Questions? Contact Perri Graham, Exec-utive Director of the BATC
Foundation [email protected] or (651)697-7563.
Note: This is a BATC "BONUS BUCK" event, worth astaggering $100
(in BATC Bucks).
||NEWS
BATC Members Climb Capitol Hill
-
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Realizing a newly built dreamOur menu of simplified new
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Builder Best program Protect your interest rates while you build
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Call today for more information.
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10 BUILDERS DIGEST JULY/SEPTEMBER 2013 NEWS EVERYDAY ON THE
BLOG: WWW.BATC.ORG/BLOG
|| EVENTS
UPCOMING
Register at www.batc.org
JULYBATC Boat CruiseHosted by BATCRemodelersSM CouncilJuly 18,
2013Bayside Grill on Lake Minnetonka
Nothing says summer like a jauntaboard "The Queen of
Excelsior."Register at www.batc.org
July Member OrientationJuly 25, 2013BATC Board Room
Whether you are a NEW memberor have been around 20+ years,stop
by and see what BATC canoffer you and your company!Register at
www.batc.org
AUGUSTBATC Open Golf TournamentAugust 6, 2013Prestwick Golf
Club, Woodbury
Our day of balls, birdies andbuilders is SOLD OUT but
dinnerreservations are still available.Register at www.batc.org
SEPT.2013 SponsorshipLuncheonSeptember 10, 2013
BATC Seminar Room
Join us as we launch our 2014sponsorship opportunities andthank
our 2013 sponsors overlunch.Register with Heather at 651-697-7573
or [email protected]
BATC Clay ShootBrought to you by theYoung Professionals
September 17, 2013Minnesota Horse & Hunt Club,Prior Lake
BATC's first ever Clay Shoot. Fabulous prizes and buffet
dinner.Register at www.batc.org
BATC Foundation Golf TournamentSeptember 24, 2013Legends Golf
Club
The BATC Foundations first golftournament.A BATC Bonus Buck
event!Register at www.batc.org
OCT.Member OrientationOctober 15, 2013BATC Board Room
Whether you are a NEW memberor have been around 20+ years,stop
by and see what BATC canoffer you and your company!Register at
www.batc.org
Houzz EventOctober 15, 2013Earle Brown Heritage
Center,Minneapolis
Hear from Houzz directly how tobenefit from one of
housingshottest sites.Watch for more info. soon.
Awards of Excellence GalaOctober 24, 2013Lafayette Club
Join us as we honor the best ofthe best in the
homebuildingindustry.More info. at www.batc.org
find it all at www.batc.org
-
12 BUILDERS DIGEST JULY/SEPTEMBER 2013
THE KITCHEN ANDBATH STORE
ONCE-IN-A-LIFETIMEEXPERIENCE
A D V E R T O R I A L
Anyone in the business of designingquality kitchens and baths
will knowthat a state-of-the-art showroom with
quality products, expert staff and a stream-
lined selection process can make a big
difference. The staff at Gerhards: The
Kitchen and Bath Store (formally Kitchen
Craft) are expertly trained to handle every
kitchen and bath need from start to finish so
that the experience is truly one of a kind.
Our on-site design team, big screen
visualizing room and interactive display
vignettes make every Gerhards experience
easy and enjoyable. For many of our
customers, remodeling or designing a
kitchen or bath is a once in a lifetime experi-
ence so we work hard to make every trip to
our showroom an unforgettable one, said
Gerhards Store Manager, Cindy Thomes.
Our Parent Company, First Supply LLC,
-
ing showerheads
and body sprays.
It wont be long
before
customers start
singing praises
for the shower
selections,
including the tech
savvy Kohler Moxie
Showerhead + Wire-
less Speaker system.
This blue tooth device
will deliver seven
hours of wireless music
into your showerhead,
or remove it and you
can take it on the go.
In line with the
companys focus on
interactive displays,
customers can visualize
the look of their project
on a 63-inch TV in the
companys conference room.
Gerhards has the ability to display
any design concept on their big
screen so that customers can
really visualize the outcome, as
well as manipulate dozens of
design options.
Stop by and see this beautiful
showroom. You will be impressed.
Gerhards is open Monday
through Friday from 9-5, Thurs-
days from 9-8 and Saturdays from
10-2, or for your convenience, by
appointment. Visit their Twin
Cities location at 13540 Wayzata
Boulevard in Minnetonka or one
of their other twelve locations
throughout the Midwest.
13540 Wayzata Blvd.Minnetonka, MN 55305952.544.0458
Mon-Fri 9am - 5pmSat 10am - 2pmSun Closed
Right: The Gerhards conference roomfeatures an interactive 63 TV
displaysystem so that customers can easily
visualize their design options.
Below: Shower vignette featuringdozens of working showerheads
and
body sprays from Gerhards' top brands
located in Madison, Wisconsin, is
a fifth generation family business.
A solid track record and years of
experience working with builders,
remodelers, property managers,
plumbers and the retail public has
made the company a standout in
their field.
First Supply has made a huge
commitment to the Twin Cities
market with a 50,000-square-foot
distribution center in South St
Paul, along with one of the first
independently owned Kohler
stores in Edina, and now the
purchase of the Gerhards show-
room from Kitchen Craft last
February in Minnetonka.
The experienced staff at
Gerhards will walk you through
the selection process for kitchen
cabinets, countertops and bath
products with top brands such as
Kohler, Delta and Moen to name a
few. We sell tile, stone, hardware,
lights and have an interior
designer on our staff. We are a full
service showroom that can facili-
tate the interior process of your
remodeling or new construction
project from start to finish. The
stunning showroom, however,
can speak for itself.
Inside the 5,000 square foot
Minnetonka location, customers
will be impressed by six stunning
cabinet displays, a wine room, five
bath vignettes and custom enter-
tainment unit. Most impressive,
however, is the working shower
vignette featuring dozens of work-
NEWS EVERYDAY ON THE BLOG: WWW.BATC.ORG/BLOG JULY/SEPTEMBER 2013
BUILDERS DIGEST 13
-
JOIN THE BATC REMODELERS COUNCIL as weshare remodeling tips and
ideas in each issue in theBuilders Digest. Dont miss our
roundtables inperson, either. Watch BATC.org for details on the
OCTOBER 15TH REMODELERS ROUNDTABLE & HOUZZ EVENT
|| REMODELERS CORNER
Spending on home improvement andremodeling projects got off to a
slowstart this year, but that slowdown isntanticipated to last
long. The LIRA(Leading Indicator of RemodelingActivity) from the
Harvard Joint Cen-ter for Housing Studies expectsspending by
homeowners on improve-ment projects to accelerate as the
yearprogresses.
On top of the almost 10 percentgrowth reflected in U.S. Census
Bureaufigures for 2012, the LIRA projectsstrong gains in homeowner
remodelingspending continuing throughout 2013,with some moderation
in the pace ofgrowth toward the end of the year.
Existing home sales were upalmost nine percent last year,
andhouse prices are increasing in mostmarkets across the country,
says EricS. Belsky, managing director ofHarvards Joint Center for
Housing.This has increased the home equity
levels for most homeowners, encourag-ing them to reinvest in
their homes.
NAHB also mentioned the down-turn in the May 9th Eye on
theEconomy. They noted that the down-turn came on the heels of
stronggrowth through most of 2012.
Both the Joint Center and NAHBagreed on the probable culprit for
theslip. One possible explanation forremodelings slow start is the
generalchallenges faced by builders andremodelers from rising
building mate-rial costs and the availability ofworkers, noted
NAHB.
The strong growth that weve seenrecently is putting pressure on
the cur-rent capacity of the homeimprovement industry, says
KermitBaker, director of the RemodelingFutures Program at the Joint
Center.Contractors and subcontractors arehaving more difficulty
finding skilledlabor, and building materials costs are
unusually volatile for this stage of arecovery.
While the national news is a bit ofa downer, the good news is
that theJoint Center is anticipating a 20 per-cent increase in
remodeling spendingby the end of 2013.
The other good news is that BATCsremodelers are incredibly
upbeat. TheParade of Homes Remodelers Show-case remodelers reported
good springtraffic, with Jolynn Johnson, CrystalKitchen Center
remarking it was thebest event in 18 years.
What a fabulous showcase! Thetraffic was steady and people
weregreat. We had many quality conversa-tions and great feedback.
People seemeager to update their homes in 2013,said Becky Zweber,
Novare Renovation& Design.
The fall Remodelers Showcase isset for September 27-29. We hope
tosee you all there.
14 BUILDERS DIGEST JULY/SEPTEMBER 2013 NEWS EVERYDAY ON THE
BLOG: WWW.BATC.ORG/BLOG
photogallery
June Remodelers RoundtableJUNE 18, 2013 - Programmatic Media and
DigitalTrends was the topic of the most recent Remod-elers
Roundtable. Simply stated programmaticbuying is the automated
pur-chase of data-driven, tar-geted ads. Attendeesreceived an
overview ofhow their ads could be de-livered to specific usersbased
on the users webbrowsing history.
Sponsored by:
1 2
REMODELING PROJECTSPENDING PREDICTEDTO RISE
June Remodelers Roundtable: 1. Star Tribune online gurus Tim
Haley andMarie Ross (not shown) explained the newest developments
in online target-ing. 2. First row (left to right:) Jolynn Johnson,
Crystal Kitchen Center, Inc.;Samantha Grose, JP & Co.; Ron
Sonnek, Sicora, Inc.; and Bryan Ogle, OgleConstruction,
Maintenance, Services, Inc.; Second Row (left to right): Kim-berly
Bednar, Brush Masters and James Julkowski, Julkowski, Inc.
-
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Dont be left on shore!
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Q&A
18 BUILDERS DIGEST JULY/SEPTEMBER 2013 NEWS EVERYDAY ON THE
BLOG: WWW.BATC.ORG/BLOG
|| BATC BOARD OF DIRECTORS
JOLYNN JOHNSONCrystal Kitchen Center, Inc.BATC Remodelers
CouncilChair
GARY KRAEMERPresident, John Kraemer& Sons, Inc.Small Volume
BuildersCommittee Chair
Why did you become involvedwith BATC? JOLYNN: Crystal Kitchen
Centerfirst became involved with BATCto be a part of the
RemodelersShowcase. Weve since beenmembers of BATC for over
18years. I joined BATCs RemodelersCouncil around 2006. My
philoso-phy is that if Im going to be apart of something I need to
betruly involved, and not just sit onthe sidelines. By being a part
ofthe Council, I get information thatI might not otherwise be aware
offor a long time. I also get to helpmake the Council better.
How has your BATC membership added value toyour business?
JOLYNN:With the knowledgethat I obtain it helps me to beaware of
what is happening (e.g.:lead laws) in the industry,
whichalternately helps the bottomline. Being in the
RemodelersShowcase helps find futureclients and the advantage of
let-ting them see our work in anon-threatening environment.Getting
to know other remodel-ers, builders and associates helpswith
networking and developingfriends for life
What about your job inspiresyou the most? JOLYNN:Working on a
great/fundesign and making my clientshappy!
Whats your favorite room inthe house to remodel? JOLYNN:
Definitely the Kitchen!Ive been designing and remodel-ing kitchens
for the past 30 yearsand I still find it exciting. No twopeople are
the same and no twokitchens are the same, so itsalways fun.When it
comes to
remodeling or building new,why do you prefer remodel-ing?JOLYNN:
Remodeling is green,there are more challenges, and ifyou start with
really good bonesyou can make any space evenbetter.
Name one thing thats on yourbucket list? JOLYNN: Retirement!!!
Travelingwill always be something that Ilook forward to.
What was the best adviceyouve ever received orgiven? JOLYNN:
Nineteen years ago asthe new owner of CKC, Jeff Ham-mer, the owner
of Crystal CabinetWorks in Princeton, told me youcant move
mountains by your-self and its only money.Several years later I got
to saythose same words back to him!
Whats your favorite app? JOLYNN: Youre talking to some-one who
is computer illiterate! Ihad to look at my iPad to evenanswer this
question! On vaca-tion I use my currency app. On aday-to-day basis
I enjoy theMahjong solitaire matchinggame. I couldnt live without
myphone though. I just love being soconnected (well, most the
timeanyway).
Why did you first becomeinvolved with BATC? GARY: I have always
beenimpressed with and appreciativeof the builders, associates
andstaff members who devote somuch time and energy into mak-ing
this one of the best tradeassociations in the state. Havingbeen
involved in the buildingbusiness my entire life I feel thatit was
time for me to give backand do my part to improve thisgreat
industry. We joined BATC in1984 and have been a Memberevery year
since.
What is your role as Chair ofBATCs Small Volume
BuildersCommittee? GARY: Like much of the work atBATC, the staff
does most of theheavy lifting. I am there to runthe committee
meetings and getfeedback and opinions from otherSmall Volume
Builders withregard to every aspect of Associa-tion work and
interaction. As amember of the BATC Board, I helpbring forward the
opinions andagenda of the Small VolumeBuilders.
How has your BATC membership added value toyour business? GARY:
Everyone knows that thereis strength in numbers. We are inone of
the most competitiveindustries on earth, yet by work-ing together
through BATC,builders and associates have astrong voice at the
State Capitol.We have the first and best Paradeof Homes in the
nation, and wehave access to great continuingeducation. The list
goes on andon. Our company gains a tremen-dous amount of added
value andwill always be a part of BATC.
What about your job inspiresyou the most?
GARY: The interaction with peo-ple, and being part of a team!
Ilove working closely with ourclients, associates,
architects,interior designers and everyoneinvolved on our team. I
coachedbaseball for the last 24 summersand I love leading and being
partof a team that always gives theirbest and has a chance to win.
Iam inspired to give my best everyday and never let my
teammatesdown.
Whats the biggest advantage of being a smallvolume builder?
GARY: Having the time to get toknow and serve our great
clients.Many of my good friends havebuilt or remodeled with us
andmany clients that I did not knowbefore working with them
havebecome good friends.
What was the best adviceyouve ever received orgiven? GARY:Hard
work beats talentwhen talent doesnt work hard! Ialso like Nothing
beats fun for agood time.
Name one thing thats on yourbucket list. GARY: I would love to
go intoouter space and orbit the earth! Iwould also like to see the
Vikingswin a Super Bowl, but that is alittle farther fetched.
Whats the farthest placeyouve traveled to? GARY: So far it is
Rome, Italy. Mywife and I love to travel and arehoping to see
Australia and NewZealand some day.
What one technological deviceyou couldnt live without? GARY:My
iPhone! I had it surgi-cally attached to my hand and itwould be
painful to remove!
-
20 BUILDERS DIGEST JULY/SEPTEMBER 2013 NEWS EVERYDAY ON THE
BLOG: WWW.BATC.ORG/BLOG
photogallery
ReBuild Happy Hour
ReBuild Happy Hour, hosted by Mingle: (from left to right, top
to bottom) 1. Kelly Aitkin with Deb Earl, BATC 2. Adam Ohlgart,
Creative Lighting, with Brett Remme, In-Focus Systems 3. Shelby
Allen, Gary Insurancenter and Mark Searles, Admit One 4.
KellyDavert (at right), Mingle, welcomed attendees and introduced
panelists Mark Allen, David Siegel, Dan Peinovich, Camaron
Wooleyand Casey Van Winkle 5. David Siegel, BATC 6. Panelists Casey
Van Winkle and Mark Allen 7. YPs paid attention and asked a lot
ofquestions 8. Just one of the cool vignettes at Mingle 9. Dan
Peinovich and Cameron Wooley 10. This kitchen display showed
offwhite cabinetry beautifully 11. Small-space laundry genius
APRIL 9, 2013 - BATC's Young Professionals Committee and the
Minneapolis AreaAssociation of Realtors' (MAAR) YoPro Group joined
forces over happy hour at MingleCabinetry Furnishings Design to
discuss the current marketplace and address what's to comefor both
industries.
Hosted at Minglesstunning showroom
1
4 6
8 97
5
2 3
Presented by:
10 11
Panel of Experts: David Siegel (BATC), Dan Peinovich (Bell
Mortgage), Cameron Woolley (Ryland Homes), Mark Allen (MAAR), Casey
Van Winkle (First Class Mortgage), and John Canny (RE/MAX Advantage
Plus).
Exclusive Sponsor:
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still reach the huge ParadeofHomes.org audience with a Premium
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22 BUILDERS DIGEST JULY/SEPTEMBER 2013 NEWS EVERYDAY ON THE
BLOG: WWW.BATC.ORG/BLOG
to be part of our growing resourceUPGRADE
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Please contact Casey Hafner ([email protected], 651-697-7569) for
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All BATC members receive a Business Card listing with name,
address and phone number at no charge.
2011
STATS
JAN 1 - MAY 31
VISITS191,000
UNIQUE VISITS131,225
PAGE VIEWS1.3 MILLION
2012
VISITS250,000
UNIQUE VISITS172,000
PAGE VIEWS1.4 MILLION
2013
VISITS198,187
UNIQUE VISITS137,470
PAGE VIEWS1 MILLION
2011191,000
VISITS
TSAATSSTTA
2011250,000
VISITS
2012191,000
VISITS
TS
Y 31
198,187VISITS
2013250,000
2012AN 1 - MA AY 31J
1.3 MILLIONAG PPAGE VIEWS
131,225UNIQUE VISITS
VISITS
1.4 MILLIONAGE VIEWSPPAGE VIEWS
172,000UNIQUE VISITS
VISITS
1.3 MILLIONAGE VIEWS
131,225UNIQUE VISITS
VISITS
1 MILLIONAGE VIEWSPPAGE VIEWS
137,470UNIQUE VISITS
VISITS
1.4 MILLIONAGE VIEWS
172,000UNIQUE VISITS
-
24 BUILDERS DIGEST JULY/SEPTEMBER 2013 NEWS EVERYDAY ON THE
BLOG: WWW.BATC.ORG/BLOG
|| PROFILE
As division president forthe States largest homebuilding firm,
Lennar, BillBurgess faces challenges andsucceeds in getting
toughjobs done everyday. So whenoutgoing chair and 2013BATC
President, Pamela Belzwas looking for the nextchair for Housing
First, ourIndependent ExpenditureFund or Super PAC, Bill washer
natural first choice. And,with a challenging electionyear ahead, we
are all luckythat he said yes.
Bill is stepping up at acritical time. He explains,there are
enough outsideinterests wanting to influencehomebuilding and often
in away thats not beneficial tothe industry. I think itsimportant
for us to get organ-ized, to have a voice, and tobe able to do
that, you haveto have a Super PAC. Wehave to be able to raise
fundsto support legislators thatsupport us.
The recent legislativesession presented numerouschallenges. Our
lobbyistsplayed defense much of the
session,successfullypushingback legisla-tion that issure to
reap-pear nextyear (readmore in
BATCs legislativewrap). While wewere pleased tobuild strong,
bi-partisan support onthe indoor sprinklermandate issue inseveral
cases helpedby the dollars weinvested on races in 2012 Governor
Dayton was simplynot going to back down.
Thats why, for theupcoming legislative cycle,we need to be even
moreproactive, Bill insists. Weset an ambitious goal tosupport pro
homebuildingcandidates in the House andalso in the gubernatorial
raceto make an impact on theseraces. This means we proba-bly need
to raise around$700,000.
Now thats an aggressivegoal, he says. But, every-body that weve
talked tofrom our Associate members,Remodelers, to our Small,Medium
and Large VolumeBuilders everybody under-stands the situation were
inas an industry. Were justbeginning to come out of thispast
housing depression andwe cant afford to haveadverse legislation put
in ourway that will negativelyimpact our recovery.
The first step to reachingthat goal was to get buy infrom
members and BATCsboard. We went to the BATC
board with our plan, anddiscovered that they under-stand how
important thiselection cycle is, agreeing to amatching fund up
to$300,000, says Bill. I thinkwere well on the way. Theresa lot
needed and we still needto raise a lot more funds, butI think
everybody under-stands and is receptive to it.
No one who knows Bill issurprised at the passion andeffort hes
devoting to Hous-ing First. His success atLennar exemplifies the
samequalities.
Born and raised in Illi-nois, Bill attended NorthCentral College
there andthen joined Chicago-basedCambridge Homes in
theirpurchasing division. In 1997,Bill moved to Lundgren
Bros.Construction (LBC), then thefourth largest homebuilder inthe
Twin Cities, as their VicePresident of Purchasing.When US Home
acquiredLBC, he took over purchas-
ing for both Orrin Thompsonand LBC. Then in 2008, Billtook over
as President ofLennar. Hes been able tokeep Lennar as the
top-ranked builder in the regionevery year since.
Bill is married to Ann andthey have four kids. Katie,the oldest
at 32, is an entre-preneur in her own right,running her own
insuranceagency. Shelby is 18 andheading to the University ofSouth
Dakota to major inbusiness. The two youngest,Emily, 15, and Will,
12, arestill at home and keep thingsinteresting along with
theirboxer Molly and adoptedfeline, Todd.
Its clear that Bills familyis incredibly important tohim and a
great supportsystem. But his final wordswere clearly to
BATCmembers, Help support anddefend our industry, donateto Housing
First!
OUR SUPER PACS SUPER CHAIRMeet Bill BurgessHousing First Chair
and President, Lennar
Written by Wendy Danks
I THINK ITSIMPORTANT FORUS TO GETORGANIZED, TOHAVE A VOICE,AND
TO BE ABLETO DO THAT, YOUHAVE TO HAVE ASUPER PAC. WEHAVE TO BE
ABLETO RAISE FUNDSTO SUPPORTLEGISLATORSTHAT SUPPORTUS.
For more information onHousing First, contact James Vagle,Public
Policy Directorat 651-697-7578.To donate, contactMary Schweich
at651-697-7572.
-
H O M E I N D O O R SPRINKLERSSTREET IMPROVEMENT PARK FEESDESIGN
PROFESSIONAL L I C ENSURRADON AWARENESS STATUTE OREPOSE
INDEMNIFICATION EXTENDPRODUCT STEWARDSHIP PAINT TAX BIL
2013 LEGISLATIVESESSION REVIEW
-
A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES
2013 Legislative Wrap-Up 1
The 2013 legislative session was a remarkable journey for BATC
andour lobbying team. After the November elections we knew we
wouldface unique challenges at the Capitol with the DFL leading
theHouse, Senate and Governors Office for the first time in nearly
25years. Our lobbying teams primary goal was to work to reduce
theregulatory footprint that has grown throughout our industry over
thepast two decades, while blocking or moderating proposals that
wouldadd even more regulations and costs.
Perhaps not surprisingly, our team spent the vast majority of
theirtime on the latter. The volume of proposals offered that our
industryopposed was high. All of this was on top of our primary
policy issue,prohibiting the mandate of home indoor sprinkler
systems in singlefamily homes over 4,500 square feet.
With that as the background, Im especially pleased to sharemuch
good news in this legislative session review. Our team was ableto
successfully stop, redirect and modify most of the proposals we
op-posed. The disappointment of the session undoubtedly lies with
thenear-miss we had in passing a sprinkler mandate prohibition into
law. However, I am confident we did every-thing we could to pursue
this legislative avenue to solve this issue. We are not giving up,
however, and wewill continue to work through other options in
opposition to a sprinkler system mandate.
Finally, Id like to thank our team. Their task is ambitious and
challenging, and Im pleased to join thisgroup of professionals from
BATC and our affiliates at BAM in working to create a better
regulatory envi-ronment for you and your business. As a BATC
member, YOU are part of our advocacy team. BATCsBoard of Directors
has made long-term, strategic investments in advocacy to ensure
that we are able to suc-cessfully represent and protect our
industrys interests. This recap details the major issues that
BATCworked on this session. I hope you find it to be a useful and
insightful member resource.
Thank you for your support for BATC and our industry. Best
regards,
Pamela BelzSenior Housing Partners and 2013 BATC President
ME S S AG E F ROM TH E
PRESIDENT
-
2 2013 Legislative Wrap-Up A MEMBER BENEFIT OF THE BUILDERS
ASSOCIATION OF THE TWIN CITIES
-
A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES
2013 Legislative Wrap-Up 3
SESSION OVERVIEW
HOME INDOOR SPRINKLER MANDATE PROHIBITION
-------------------------- 7
STREET IMPROVEMENT DISTRICTS
--------------------------------------------------------------
9
PARK FEES FAIR MARKET VALUE
--------------------------------------------------------------
11
PARK FEES PARK FACILITIES FEE
----------------------------------------------------------------
12
DESIGN PROFESSIONALS LICENSURE
------------------------------------------------------ 13
INDEMNIFICATION
------------------------------------------------------------------------------------------
15
RADON AWARENESS ACT
------------------------------------------------------------------------------
17
STATUTE OF REPOSE
----------------------------------------------------------------------------------------
19
EXTENDED PRODUCT STEWARDSHIP PAINT
-------------------------------------- 21
TAX BILL
----------------------------------------------------------------------------------------------------------------
23
APPENDICES
A --------------------------------------------------------------
STATUTE OF REPOST - CHAPTER 21
B ------------------------------------------ MN RADON AWARENESS
ACT - CHAPTER 43
C -------------------------------------- PARK FEES - FAIR MARKET
VALUE - CHAPTER 85
D --------------------------------------------------------------
INDEMNIFICATION - CHAPTER 88
E ------------------------------------ PAINT STEWARDSHIP PROGRAM
- CHAPTER 114
TABLE OFCONTENTS
-
4 2013 Legislative Wrap-Up A MEMBER BENEFIT OF THE BUILDERS
ASSOCIATION OF THE TWIN CITIES
The 2013 legislative session will be remembered for the strong
re-emergence of the states DFL party, whichcontrolled both the
Minnesota House and Senate as well as the Governors office for the
first time in a gen-eration. Collectively, DFL leaders set out
ambitious goals to bring structural, progressive changes to
Min-nesotas budget and government services. The road to completion
was hectic at times, with tax proposalscoming and going up to the
final minutes of the session. But, in the end, the session came to
an on-time andorderly conclusion with a host of historic
changes.
2013 Legislative Session by the numbers:Senate Bills Introduced:
1682House Bills Introduced: 1862Bills Presented to the Governor:
81Bills Signed by the Governor: 81Bills Vetoed by the Governor:
0
For BATC members, the session was dominated by proposals that
raised questions and concerns. The re-sults were mostly positive,
although the sprinkler mandate discussion remains unresolved after
three years ofhard work seeking a solution.
BATCs legislative efforts occur in concert with our statewide
federation partner, the Builders Associa-tion of Minnesota (BAM).
We engage the services of Larkin Hoffman, one of the most highly
respected lob-bying firms in the state. (In fact, Larkin Hoffman
just received the first ever Lobbyist of the Year award fromthe
Capitol Report and Politics in Minnesota). We also brought on board
one of the areas best issue-ori-ented public relations firms, Himle
Rapp, to provide exceptional messaging and other support this
session aswe worked in opposition to the home indoor sprinkler
system mandate. And of course, we engage you, ourmembers. Through a
variety of communications and committees, you provide feedback,
help us prioritize is-sues and tell our story to your
legislators.
Its our honor to represent our members at the Capitol and with
regulatory agencies. Were fortunate tohave a strong mix of
dedicated individuals with significant experience in the
homebuilding and legislativearenas anchoring our legislative team.
Read on for more about how the 2013 legislative session
unfolded.
13 LEGISLATIVESE S S ION REV I EW
-
A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES
2013 Legislative Wrap-Up 5
THE TEAM
DAVID SIEGELBATC EXECUTIVE
DIRECTOR
JAMES VAGLEBATC PUBLIC
POLICY DIRECTOR
PETER COYLEATTORNEY &
LOBBYIST, LARKINHOFFMAN
JULIE PERRUSATTORNEY &
LOBBYIST, LARKINHOFFMAN
MARY SCHWEICHBATC PUBLIC
POLICY ASSISTANT
PAMELA BELZBATC PRESIDENT
TODD RAPPHIMLE RAPP
SUSIE BELLHIMLE RAPP
JASON MCCARTYBATC PUBLIC POLICYCOMMITTEE CHAIR
REMI STONEBAM EXECUTIVEVICE PRESIDENT
LARRY REDMONDLOBBYIST, REDMOND
& ASSOCIATES
BRIAN HALLORANLOBBYIST, REDMOND
& ASSOCIATES
-
6 2013 Legislative Wrap-Up A MEMBER BENEFIT OF THE BUILDERS
ASSOCIATION OF THE TWIN CITIES
THE SPRINKLERI S SUE GALVAN I Z ED
UNFORTUNATELY,THE GOVERNORTWICE BLOCKED
THE OPPORTUN I T Y TO
LEAVE SPRINKLERSAS A HOMEOWNER
CHOICE
OUR MEMBERSHIP
-
A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES
2013 Legislative Wrap-Up 7
Sprinkler Mandate ProhibitionBATC Position: Support Sprinkler
Mandate Prohibition
Outcome: Provision failed in Conference Committee twice; is now
expected to be addressed at theAdministrative Law Judge level later
in 2013
ISSUE BACKGROUND:
BATCs top priority in the session was the removal of the home
indoor sprinkler system mandate currentlyin the draft Minnesota
building code. This mandate would require sprinkler systems in all
homes 4,500square feet (includes finished/unfinished basements) and
above. In 2011 and 2012, BATC & BAM success-fully advanced
bills through the legislature to remove the mandate. However, both
bills were vetoed by Gov-ernor Dayton.
The home indoor sprinkler system mandate as proposed in the code
would increase the cost of a newfour-bedroom, three-bathroom home
by $9,000. If the home uses private well water, as many
communitiesin the Twin Cities do, the costs can range from $15,000
to $20,000 once water pump and well improve-ments are considered.
This cost does not include annual maintenance, higher property
taxes, or the cost ifthe home indoor sprinkler system were to
malfunction.
2013 ACTIVITY:
Early in the session, BATCs lobbying team focused its efforts on
education. We worked to explain the im-portance of ensuring that
home sprinklers are a choice, not a mandate to newly elected
legislators. We ex-pected this issue to re-emerge prominently near
the end of session, which it did. In late April, theMinnesota
Senate adopted an amendment authored by Sen. David Senjem
(R-Rochester) to the omnibusEconomic Development bill authored by
Senator David Tomassoni (DFL-Chisholm) to remove the sprin-kler
mandate from the forthcoming building code. The vote was an
impressive 47-17 in favor of the amend-ment. We were heartened by
this strong bipartisan vote, but the headwinds in Conference
Committee wereagainst us, and the sprinkler mandate prohibition did
not make it into the final committee report. While wehad strong
Senate support, the House rejected our position, citing a potential
veto of the entire omnibus billfrom Governor Dayton if the
sprinkler language was included.
In the final days of the session, Sen. Senjem again successfully
amended the sprinkler mandate prohibi-tion language onto the
omnibus Game and Fish bill. That language was also removed in
Conference Com-mittee reconciliation.
BATC members deserve a special mention for their exceptional
work in making our case and buildingmomentum for our story. A
growing, bipartisan super-majority of the legislature agrees with
our core mes-sage: we build exceptionally safe homes, and while
some regulation is necessary, this particular regulation
isgovernment overreach that the public solidly opposes.
Looking ahead, we will continue to look for any avenues to
address this issue through the administrativelaw judge process, and
in future legislative sessions.
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8 2013 Legislative Wrap-Up A MEMBER BENEFIT OF THE BUILDERS
ASSOCIATION OF THE TWIN CITIES
STREET IMPROVEMENT DISTRICTS
CREATE A NEW MECHANISM FORLOCAL GOVERNMENTS
WE SUCCESSFULLYNEGOTIATED A CARVE OUT
FOR NEW HOMES
TO COLLECT DOLLARSFOR STREET MAINTENANCE
BATC MEMBERS ALREADY PAY
STREET FEESAT THE TIME OF DEVELOPMENT
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A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES
2013 Legislative Wrap-Up 9
Street Improvement Districts(HF 745/SF 607)
Senate Author: Senator Jim Carlson (DFL-Eagan)
House Author: Representative Ron Erhardt (DFL-Edina)
BATC Position: Oppose original bill; neutral following BATC
amendment adoption
Outcome: Provision failed in omnibus Tax and omnibus
Transportation bills
ISSUE BACKGROUND:
Proposed by the League of MN Cities for the past decade in an
effort to create another tool for local govern-ments to raise
revenue for street improvements, the initiative allowed cities to
create districts in which theycan collect fees from new and
existing properties. The fees must be connected to a streets
improvementplan, but unlike existing special assessment authority
the fee is not subject to the benefits test to ensure it
isproportionate for the property value increase associated with the
infrastructure improvement.
2013 ACTIVITY:
BATC objected to the proposal because new development already
pays for street improvements and otherinfrastructure related to our
projects. These are ultimately rolled into the lot costs, and we
shouldnt have topay twice.
Prior to the committee deadline we successfully negotiated an
amendment that exempts new develop-ment from street improvement
districts for three years following the development of the project.
The lan-guage specifically exempts unoccupied parcels which covers
model and spec homes.
This issue is a top priority for local government groups who
feel that this would be a more cost-effectiveway to maintain roads
and infrastructure. The resistance was especially strong from a
diverse coalition ofbusiness, higher education, religious and
non-profit groups who claimed that this was a duplicative
propertytax, essentially an end-run on the benefits test required
for assessments today.
The issue was vetted at multiple stops and bounced between the
omnibus Tax and omnibus Transporta-tion Finance bills. In the end,
there was not sufficient support among DFL conferees to support the
bill andit failed to pass into law. However, looking ahead, it is
very likely that this bill will pick up where it left off inthe
2014 session.
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10 2013 Legislative Wrap-Up A MEMBER BENEFIT OF THE BUILDERS
ASSOCIATION OF THE TWIN CITIES
PARKSWEVE ALWAYS AGREED THAT THEYARE AN IMPORTANT AMENIT Y
BATCS INFLUENCEHELPED ENSURETHAT PARK FEES ARE FAIRLY PRICED
BUT FEES MUST
BE FAIR&
NOT A CASH COWFOR LOCAL GOVERNMENTS
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A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES
2013 Legislative Wrap-Up 11
Minneapolis Park Dedication Fee Fair Market Value(HF 321/SF
99)
Senate Author: Senator Scott Dibble (DFL-Minneapolis)
House Author: Representative Frank Hornstein
(DFL-Minneapolis)
BATC Position: Support Fair Market Value Provisions
Outcome: Provision passed in the Economic Development omnibus
bill and was signed into law asChapter 85
ISSUE BACKGROUND:
The City of Minneapolis has long sought specific authority to
charge a park dedication fee on new commer-cial and residential
development, but there was lingering uncertainty as to how the fee
could be adminis-tered. The proposal required a nexus between the
development paying the fee and the park creation andimprovement.
The city also capped the park dedication fee at $1,500, placing it
among the lowest in themetro area. Additionally, this bill was
amended to include BATCs fair market value provision.
2013 ACTIVITY:
In discussions with Minneapolis Park Board representatives and
the League of MN Cities, we were able torevive our park dedication
fair-market value language from 2012 as an amendment. That language
creates apathway to fairer, more accurate park fees by clarifying a
process for negotiation between the developer andthe city for park
fee rates. If that outcome is unsatisfactory, the developer can
request a third-party ap-praisal. Park fees are unreasonably high
in many cities because the high-point land values are used as
thebasis for the fee. The fair market language would allow for an
adjustment of the fees based on actual landvalues today.
The House passed the bill which included our fair market value
language. The Senate struggled to passthe bill as a stand-alone in
the floor debate, so the bill was moved to the omnibus Economic
DevelopmentFinance bill where both the minneapolis park fee and the
fair market value provisions were passed as part ofthe larger
measure.
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12 2013 Legislative Wrap-Up A MEMBER BENEFIT OF THE BUILDERS
ASSOCIATION OF THE TWIN CITIES
Park Facilities Fee(HF 511/SF 606)
Senate Author: Senator Alice Johnson (DFL-Blaine)
House Author: Representative Jerry Newton (DFL-Coon Rapids)
BATC Position: Opposed to the bill
Outcome: Provision stalled and was not brought forth for a
hearing
ISSUE BACKGROUND:
This bill would create a new authority for local governments to
raise revenue for parks in the form of a parkfacilities fee, which
would be tacked on to annual property taxes. The city council would
have to create aplan and fee schedule via ordinance and public
hearing, but the park facilities fee would create a
dedicatedrevenue stream for park creation very similar to the
street improvement concept favored by cities.
2013 ACTIVITY:
In a moment of dj vu for our lobbying team, this bill mimicked
the street improvements initiative in thatit was another
duplicative regulatory tool for local governments to extract funds
from new developments.As homebuilders, we already pay park fees at
the time of development or building permit. Its unfair to
dou-ble-tax new development for parks. After being scheduled for
hearing in the House Government Opera-tions Committee twice, the
bill was removed from consideration for the 2013 legislative
session.
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A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES
2013 Legislative Wrap-Up 13
Design Professionals Bill(HF 1052)
Senate Author: Senator Jim Carlson (DFL-Eagan)
House Author: Representative Debra Hilstrom (DFL-Brooklyn
Center)
BATC Position: Monitoring, pending clarification on remodeling
industry impact
Outcome: Bill laid over in committee; likely to come back in
2014
ISSUE BACKGROUND:
The long-time controversial design licensing bill appeared late
in the 2013 committee season in an informa-tional hearing in the
House Commerce Committee. BATC monitors this issue closely as there
has been sig-nificant concern about the impact of this bill on our
remodeling and design members. Major concernsinclude hindering our
members ability to perform services in connection with the planning
or design of in-terior spaces, preparation of documents relative to
non-load bearing interior construction, programming,space planning,
finishes, furniture, fixtures and equipment except in one- and
two-family dwellings and lim-ited decorating consultation.
2013 ACTIVITY:
House Commerce Committee Chair Rep. Joe Atkins DFL-Inver Grove
Heights introduced this as an issuethat will not disappear and an
informational hearing was held to discuss the issue of licensed
interior de-
CONCERN ABOUTTHE IMPACT OFINTERIOR DESIGNLICENSURETHIS BILL WAS
HEARD BUTDID NOT MOVE THIS SESSION
WE CONTINUE TO ENGAGE
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14 2013 Legislative Wrap-Up A MEMBER BENEFIT OF THE BUILDERS
ASSOCIATION OF THE TWIN CITIES
sign (HF 1052). The chief author of the bill in the House, Rep.
Debra Hilstrom DFL, Brooklyn Centerbegan the hearing by emphasizing
the exemptions from the bill where interior design licensure would
notapply or restrict:
Architects, landscape architects, and engineers; Retail
consultants for finishes, furnishings or cabinetry on behalf of a
retailer; Salesperson selling surface materials, window treatments,
displays, etc.; Residential designers, including kitchen or bath
designer working within interior exempt spaces.
Concerns against the licensure proposal focused on general
opposition to the occupational licensure as a re-strictive measure
that limits professional opportunities, noting that just three
states currently license interiordesigners. No amendments were
offered and no votes were taken during the hearing, which means
this willnot become law in 2013. Rep. Hilstrom closed the
informational hearing by stating the requirements ofthis bill
pertain to licensed interior designers and not the broader interior
design profession. Its been recog-nized for over 21 years in
Minnesota that interior design of non-exempt spaces does affect the
health, safetyand welfare of the public and its time to change this
to a licensed practice.
BATC has shared our interest and concern regarding the
potentially negative impacts that this bill couldhave on our
industry with proponents of the legislation. These legislators have
expressed a willingness towork with us to find common ground as
this issue moves forward next session.
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A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES
2013 Legislative Wrap-Up 15
Indemnification/Risk Transfer(HF 644/SF 561)
Senate Author: Senator Vicki Jensen (DFL-Owatonna)
House Author: Representative Joe Atkins (DFL-Inver Grove
Heights)
BATC Position: Neutral on final bill
Outcome: Provision passed and was signed into law as Chapter
88
ISSUE BACKGROUND:
As introduced, this bill attempted to change construction
contract indemnification and insurance clauses bymaking them void
and unenforceable. The MN Subcontractors Association began the
session by pressingfor a blanket prohibition on these
provisions.
2013 ACTION:
As introduced, this initiative had the potential to upset the
long-established methodology by which thehomebuilding industry and
the insurance industry have been operating. The bill moved through
the com-mittee process and attracted significant opposition from
commercial contractors and local governments whoserve as general
contractors on municipal projects.
At the heart of the debate was a discussion about individual
company responsibility and the concernthat sub-contractors are
vulnerable to being held liable for the mistakes and claims made
against the gen-
DEBATE ABOUT HOW GENERAL CONTRACTORS &THEIR SUB-CONTRACTORS
AND TRADE PARTNERS
HANDLE INSURANCEAND INDEMNIFICATIONG R A B B E D T H E S P O T L
I G H T
THAT ATTEMPTS TO STRIKE A MIDDLE GROUNDOF PROTECTION FOR
SUB-CONTRACTORS
WITHOUT UPSETTING THEI NDUS TRY IN SURANCE MARKE T
A BILL WAS PASSED
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16 2013 Legislative Wrap-Up A MEMBER BENEFIT OF THE BUILDERS
ASSOCIATION OF THE TWIN CITIES
eral contractor and for which a sub-contractor had no
involvement. This was balanced by lengthy discus-sions on the
unique and inter-connected nature of our industry, which has led to
the long-established risktransfer and indemnification model.
The final bill permits contract clauses to allow for workers
compensation, performance or paymentbonds, project-specific
insurance and builders risk policies. This bill also protected
contract clauses that re-quire insurance coverage for vicarious
liability and warranty liability (homebuilders statutory warranties
aswell as express and implied warranties).
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A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES
2013 Legislative Wrap-Up 17
Minnesota Radon Awareness Act(HF 662/SF 887)
Senate Author: Senator John Marty (DFL-Roseville)
House Author: Representative Carolyn Laine (DFL-Columbia
Heights)
BATC Position: Support Fair Market Value Provisions
Outcome: Provision passed and was signed into law as Chapter
43
ISSUE BACKGROUND:
Two bills aimed at raising public awareness of the health risks
associated with radon were introduced in the2013 session. The
first, Janets Law, required radon testing to be performed prior to
completing a real es-tate transaction. The Healthy Homes Radon
Disclosure Act required real estate transactions to include(1)
disclosure language that spells out the health risks associated
with radon, and (2) a statement from theMinnesota Department of
Health urging potential homeowners to have a radon test
performed.
RADON AWARENESSWAS PROMINENT THIS SESSION
WHILE THE TESTING MANDATE
DIDNT PASSIN TO L AWA DISCLOSURE ON THEHEALTH RISKS
ASSOCIATEWITH RADON EXPOSUREWILL NOW BE REQUIRED IN ALL
RESIDENTIAL TRANSACTIONS
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18 2013 Legislative Wrap-Up A MEMBER BENEFIT OF THE BUILDERS
ASSOCIATION OF THE TWIN CITIES
Newly built homes are currently required to install a passive
radon mitigation systemthese proposalsdont attempt to change that.
The disclosure and testing requirements would apply to newly built
homes atthe time of homeowner transaction.
2013 ACTION:
Janets Law (the mandatory testing bill) did not make the policy
deadline and stalled for the session. TheHealthy Homes Radon
Disclosure Act (mandatory disclosure bill) passed and now requires
a mandatorystatement:
The Minnesota Department of Health strongly recommends that
ALLhomebuyers have an indoor radon test performed prior to purchase
or takingoccupancy, and recommends having the radon levels
mitigated if elevatedradon concentrations are found. Elevated radon
concentrations can easily bereduced by a qualified, certified, or
licensed, if applicable, radon mitigator.
Every buyer of any interest in residential real property is
notified that theproperty may present exposure to dangerous levels
of indoor radon gas thatmay place the occupants at risk of
developing radon-induced lung cancer.Radon, a Class A human
carcinogen, is the leading cause of lung cancer innonsmokers and
the second leading cause overall. The seller of any interest
inresidential real property is required to provide the buyer with
any informationon radon test results of the dwelling.
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A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES
2013 Legislative Wrap-Up 19
Statute of Repose(HF 450/SF 392)
Senate Author: Senator Ron Latz (DFL-St. Louis Park)
House Author: Representative Joe Atkins (DFL-Inver Grove
Heights)
BATC Position: Neutral on final bill
Outcome: Provision passed and was signed into law as Chapter
21
ISSUE BACKGROUND:
This bill proposed to modify the limits for contribution and
indemnity actions for damages based on servicesor construction to
improve real property. It aimed to extend by two years the current
window for contribu-tion and indemnity claims (otherwise known as
the statute of repose) of 12 years, bringing it to a total of
14years.
2013 ACTION:
The bill moved through the process with little discussion and
passed unanimously in both bodies. The addi-tional two years does
not affect the 10-year warranty or any homeowner actions against
the builder. How-ever, in a scenario where a homeowner alleges a
defect near year 10 of the warranty and does not initiatelegal
action until near year 12 of the statute of repose, the additional
two-year extension would allow forcontribution and indemnity claims
by participating firms in a construction dispute.
THE WARRANTY DEBATES.CHANGES TO STATUTE OF REPOSEFOR
CONSTRUCTION CLAIMS
BUILD IN A WINDOWFOR CONTRIBUTION & INDEMNITYACTIONS BETWEEN
BUSINESSES
WHILE MAINTAINING THE10-YEAR WARRANTY AS IS
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20 2013 Legislative Wrap-Up A MEMBER BENEFIT OF THE BUILDERS
ASSOCIATION OF THE TWIN CITIES
ENVIRONMENTALAWARENESS & PRODUCTSTEWARDSHIP CONTINUESTO
EXPAND IN OUR
INDUSTRYTHIS SESSION THE PAINT INDUSTRYWAS REQUIRED TO CREATE
A
STEWARDSHIP
PLANTHAT THE S TATE WILLAPPROVE AND OVERSEE
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A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES
2013 Legislative Wrap-Up 21
Extended Producer Responsibility(HF 865/SF 639)
Senate Author: Senator Chris Eaton (DFL-Brooklyn Center)
House Author: Representative Mike Sundin (DFL-Esko)
BATC Position: Neutral
Outcome: Provision passed as part of the omnibus Environment
Finance bill, Chapter 114
ISSUE BACKGROUND:
Product stewardship means that all parties involved in
designing, manufacturing, selling and using a producttake
responsibility for environmental impacts at every stage of that
products life.
In particular, product stewardship requires manufacturers to
share in the financial and physical responsi-bility for collecting
and recycling products at the end of their useful lives. When
manufacturers share thecosts of recycling products, they have an
incentive to use recycled materials in new products and
designproducts to be less toxic and easier to recycle,
incorporating environmental concerns into the earliest phasesof
product design.
This bill required architectural paint manufacturers in
Minnesota to organize and implement waste col-lection and recycling
programs. It also required manufacturers of those products to
identify which itemsthey accept and to develop a system to collect
items, plus detail a public outreach and promotion plan.
Theproposal required approval by the MPCA and implementation by
2015. (This plan was modeled after re-quirements for the collection
and recycling of electronic products the state enacted in
2007.)
2013 ACTION:
The bill cleared policy committees in both bodies and was folded
into the Omnibus Environment Financebill, which passed and was
signed by Governor Dayton.
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22 2013 Legislative Wrap-Up A MEMBER BENEFIT OF THE BUILDERS
ASSOCIATION OF THE TWIN CITIES22 2013 Legislative Wrap-Up A MEMBER
BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES
THE BUDGETTAXES ARE GOING UPON HIGH-INCOME EARNERS
SMOKERS & SOMEB2B TRANSACTIONS
THE GOP CONTENDSTHAT THIS IS A VERY REALTHREAT TO OUR
ECONOMIC
RECOVERY& REGIONAL COMPETITIVENESS
DFL CLAIMSTHE BUDGET IS HONEST &ADDITIONAL FUNDS ARE NEEDED
TO
BOOST EDUCATION& MAINTAIN QUALITY OF LIFE
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A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES
2013 Legislative Wrap-Up 23
Tax BillSenate Author: Senator Rod Skoe (DFL-Clearbrook)
House Author: Representative Ann Lenczewski
(DFL-Bloomington)
BATC Position: Oppose B2B Sales Tax; Income Tax Provisions
Outcome: B2B Income Tax and B2B Sales Tax provisions passed in
the Tax omnibus bill and wassigned into law as Chapter 143
ISSUE BACKGROUND:
The key element in Governor Daytons original tax overhaul was to
lower and broaden Minnesotas sales taxon personal and business
services. The proposed broadening of the tax to business services
included legal,public relations, design, advertising, and
engineering services, among others, and was met with universal
op-position from business groups throughout the state. For most
BATC members the business-to-business salestax would increase
project costs considerably.
In mid-March, Governor Mark Dayton surprised many observers when
he announced he was droppinghis proposal to extend the sales tax to
business-to-business transactions. This set the race to final tax
nego-tiations between the Governor, House and Senate in motion. All
parties wanted increased revenue to makestructural budget changes,
but the pathways to reach that goal were varied. The final bill was
passed justminutes before adjournment.
2013 ACTION:
The state will raise an additional $2 billion in tax revenue to
offset an earlier projected $627 million deficit(as well as funding
new spending).
Smokers will pay double the existing cigarette tax as the tax
increases from $1.23 a pack to $2.83 a pack(an increase of $1.60
per pack).
High-income earners will see an income tax increase. The rate
will be 9.85 percent for those making$250,000 filing married-joint
and for single filers making $150,000 or more.
The business-to-business sales tax will become law including
warehouse and storage sales tax (excludesfarm products,
refrigerated storage, and electronic data storage) and sales tax on
electronic and commercialequipment and repair (to include farm and
capital equipment).
The tax bill also includes financing to help Rochester handle
the planned expansion of the Mayo Clinic,a project which BATC
supported.
Much of the spending will be geared toward education and
property tax relief.
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Thank YouWe want to thank all BATC members for their support,
advocacy and commitment to our shared cause tocreate a better
legislative environment within which your businesses can operate
more effectively. It is anhonor to represent this industry.
24 2013 Legislative Wrap-Up A MEMBER BENEFIT OF THE BUILDERS
ASSOCIATION OF THE TWIN CITIES
We encourage you to stay in touchwith us in the legislative
interim
The Voice, BATCs weekly e-newsletter
Twitter
STAYIN TOUCH
BATC: @batctc
Housing First: @housing_first
James Vagle: @jvags
David Siegel: @davidsiegel1
Follow our BATCs blog atblog.batconline.org
JASON McCARTY, ChairWestwood ProfessionalServices
MARY SCHWEICHBATC, Public Policy Assistant
PAMELA BELZSenior Housing Partners
MORGAN BICKEL Lennar
SCOTT BLOMProBuild
GEORGE CUNDYCundy, Santine & Associate
ROBERT ENGSTROMRobert EngstromCompanies
LARRY FRANKArcon Development, Inc.
PAUL HEUERStantec
BILL KEENAN - Builders Development &Finance
RICK KOTR.A. Kot Homes, Inc.
FRANK KOTTSCHADENorth American Realty, Inc.
GREG LIVERMONTAndersen Windows
BOB MICHELSBob Michels Construction,Inc.
SHAWN NELSONNew Spaces
RYAN OHRIKO
KATHLEEN OSTROMC.N. Ostrom & Son, Inc.
RICK PACKERCentra Homes, LLC
DAVID PATTBERGCentra Homes, LLC
ALDEN PEARSONAcumen Legal Advisors,PLLC
IAN PETERSONPulte Homes of MinnesotaLLC
WILLIAN PRITCHARDPrudential
RICHARD RIEMEERSMAImperial Homes, Inc.
ROB SHAINESSCapstone Law, LLC
JOSEPH SPRINGERFredrikson & Byron, P.A.
JIM STANTONShamrock Builders, Inc
STEVE WILLIAMSJMS Custom Homes
PUBLIC POLICYC O M M I T T E E
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A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES
2013 Legislative Wrap-Up APPENDICE A
Appendices
Statute of ReposeCHAPTER 21--H.F.No. 450
Section 1. Minnesota Statutes 2012, section 541.051, is amended
to read:
541.051 LIMITATION OF ACTION FOR DAMAGES BASED ON SERVICES OR
CONSTRUCTION TOIMPROVE REAL PROPERTY.
Subdivision 1. Limitation; service or construction of real
property; improvements. (a) Exceptwhere fraud is involved, no
action by any person in contract, tort, or otherwise to recover
damages for anyinjury to property, real or personal, or for bodily
injury or wrongful death, arising out of the defective andunsafe
condition of an improvement to real property, shall be brought
against any person performing orfurnishing the design, planning,
supervision, materials, or observation of construction or
construction ofthe improvement to real property or against the
owner of the real property more than two years after dis-covery of
the injury, nor in any event shall such a cause of action accrue
more than ten years after sub-stantial completion of the
construction. Date of substantial completion shall be determined by
the datewhen construction is sufficiently completed so that the
owner or the owner's representative can occupy oruse the
improvement for the intended purpose.
(b) Notwithstanding paragraph (a), an action for contribution or
indemnity arising out of the defectiveand unsafe condition of an
improvement to real property may be brought no later than two years
afterthe cause of action for contribution or indemnity has accrued,
regardless of whether it accrued before orafter the ten-year period
referenced in paragraph (a), provided that in no event may an
action for contri-bution or indemnity be brought more than 14 years
after substantial completion of the construction.
(c) For purposes of paragraph (a), a cause of action accrues
upon discovery of the injury; provided,however, that in the case of
an action for contribution or indemnity under. For purposes of
paragraph (b),a cause of action for contribution or indemnity
accrues upon the earlier of commencement of the actionagainst the
party seeking contribution or indemnity, or payment of a final
judgment, arbitration award, orsettlement arising out of the
defective and unsafe condition.
(d) Nothing in this section shall apply to actions for damages
resulting from negligence in the mainte-nance, operation or
inspection of the real property improvement against the owner or
other person in pos-session.
(e) The limitations prescribed in this section do not apply to
the manufacturer or supplier of any equip-ment or machinery
installed upon real property.
Subd. 2. Action allowed; limitation. Notwithstanding the
provisions of subdivision 1, paragraph (a),in the case of a cause
of action described in subdivision 1, paragraph (a), which accrues
during the ninthor tenth year after substantial completion of the
construction, an action to recover damages may bebrought within two
years after the date on which the cause of action accrued, but in
no event may suchan action be brought more than 12 years after
substantial completion of the construction. Nothing in
thissubdivision shall limit the time for bringing an action for
contribution or indemnity.
Subd. 3. Not construed. Nothing in this section shall be
construed as extending the period pre-scribed by the laws of this
state for the bringing of any action.
Subd. 4. Applicability. For the purposes of actions based on
breach of the statutory warranties setforth in section 327A.02, or
to actions based on breach of an express written warranty, such
actions shallbe brought within two years of the discovery of the
breach. In the case of an action under section327A.05, which
accrues during the ninth or tenth year after the warranty date, as
defined in section327A.01, subdivision 8, an action may be brought
within two years of the discovery of the breach, but in
*Underlined languagedenotes new lawadopted by the 2013MN
Legislature.Stricken languagedenotes existing lawremoved by the
2013MN Legislature
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APPENDICE B 2013 Legislative Wrap-Up A MEMBER BENEFIT OF THE
BUILDERS ASSOCIATION OF THE TWIN CITIES
no event may an action under section 327A.05 be brought more
than 12 years after the effective war-ranty date. An action for
contribution or indemnity arising out of actions described in this
subdivision maybe brought no later than two years after the earlier
of commencement of the action against the partyseeking contribution
or indemnity, or payment of a final judgment, arbitration award, or
settlement arisingout of the breach, provided that in no event may
an action for contribution or indemnity arising out of anaction
described in section 327A.05 be brought more than 14 years after
the effective warranty date.
EFFECTIVE DATE. This section is effective August 1, 2013, and
applies to actions commenced on orafter that date.
MN Radon Awareness ActCHAPTER 43--S.F.No. 887
[144.496] MINNESOTA RADON AWARENESS ACT.
Subdivision 1. Citation. This section may be cited as the
"Minnesota Radon Awareness Act."Subd. 2. Definitions. (a) The
following terms used in this section have the meanings given
them.(b) "Buyer" means a person negotiating or offering to acquire
for value, legal or equitable title, or the
right to acquire legal or equitable title to residential legal
property.(c) "Mitigation" means measures designed to permanently
reduce indoor radon concentrations.(d) "Radon test" means a
measurement of indoor radon concentrations according to established
indus-
try standards for residential real property.(e) "Residential
real property" means property occupied as, or intended to be
occupied as, a single-
family residence, including a unit in a common interest
community as defined in section 515B.1-103,clause (10), regardless
of whether the unit is in a
common interest community not subject to chapter 515B.(f)
"Seller" means a person who owns legal or equitable title to
residential real property.(g) "Elevated radon concentration" means
a radon concentration at or above the United States Envi-
ronmental Protection Agency's radon action level.Subd. 3. Radon
disclosure. (a) Before signing an agreement to sell or transfer
residential real prop-
erty, the seller shall disclose in writing to the buyer any
knowledge the seller has of radon concentrationsin the dwelling.
The disclosure shall include:
(1) whether a radon test or tests have