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Session Week 5:

Update to Construction Stormwater General Permit Released


MPCA recently released a draft proposal to update the Minnesota Construction Stormwater (CSW) Permit. The EPA requires an update and re-issuance of the CSW every five years. The CSW is an important regulatory document affecting all development disturbing one acre or more. BATC has identified three initial areas of concern in the recently released draft of the update to the Minnesota Construction Stormwater Permit:

  • 24-Hour Rain Event - Inspection Threshold Reduction: The rule proposal calls for construction site inspections within 24 hours after a rainfall that's greater than 0.25 inches in 24 hours, and the inspector must record inspection data and ensure that maintenance is undertaken within 24 hours. This reduction from the current 0.5 inch rain event threshold would double the inspection requirement and significantly increase costs. This proposal is more stringent than EPA guidance.
     
  • Permanent Treatment of Surface Run-Off: The rule proposal requires that one-inch of new impervious surface runoff must be held on site and infiltrated, harvested, or reused if feasible. The one-inch permanent treatment requirement exceeds the EPA’s requirement and will place a significant cost and process burden upon applicants who are developing in conditions where the permanent treatment goal isn’t feasible.
     
  • Online Applications Required: The owner operator shall submit an online application form. If applicant is not able to apply online, contact the MPCA for technical assistance or a waiver.

BATC members Jason McCarty (Westwood Professional Services) and Ian Peterson (Pulte Group) joined BATC staff and counsel in a meeting with MPCA Commissioner John Linc Stine and senior staff to discuss the draft and items listed above. A small work-group of Public Policy Committee members will be reviewing the permit in greater detail as we prepare public comment and continue discussions with the MPCA.

Transit Oriented Development Highlights Metropolitan Council State of Region
Metropolitan Council Chair Susan Haigh delivered the State of the Region speech yesterday at the Union Depot. Haigh highlighted the importance of the transit system to the region’s economy and the way it connects people to communities, jobs, and other amenities. The Met Council’s focus on connecting transit to development, coupled with the Governor’s budget commitment to raising revenue for transit will place this issue front and center for BATC in the coming years. Highlights from the speech:

Transit matters to this region because it is the foundation on which we build a world-class economy…Tomorrow’s Minnesotans expect more transit…Young adults live in a world that moves faster every day. Forty-six percent of drivers aged 18 to 24 said they would choose Internet access over owning a car…This means our traditional economic growth strategy of competing for jobs isn’t enough – our region now has to compete for workers who are entirely mobile…The Governor, in pursuing a budget that is fair and ends gimmicks, proposed an additional $250 million annually in reliable transit funding…The funding will be raised through a quarter cent sales tax in the metro area and will greatly accelerate the build out of metro area transitways – LRT, BRT, express bus, rapid bus and regular route bus service…Transit expansion is a means to an end and that end is job growth, business growth, and ultimately prosperity for our residents, today and tomorrow…Connecting development to transit is what we need to reach our goal…We are at a pivotal moment for our transit system.

Park Fee Bills
Bills to clarify park dedication fee processes for Minneapolis and St. Paul were heard and passed in the Senate Government Operations Committee yesterday and are up in the House Government Operations Committee today. The core metro cities sought statutory clarification for developments that do not subdivide but add net new housing units. BATC negotiated language to ensure that their park fee authority contained existing requirements for fee processing and a nexus connecting the new homeowners with a new or expanded park or trail.

Budget Update
Governor Dayton’s budget plan continues to receive scrutiny from BATC and many other business groups across the state. The plan calls for nearly $2 billion in new revenue raised by a business-to-business sales tax on a host of professional services such as interior design, marketing, accounting, and legal services. Some insiders believe the opposition to the B2B sales tax extension is strong enough to derail the entire section of the bill, which would leave a scramble for the DFL legislature and Gov Dayton to keep his budget together. We are continuing to receive feedback from members on how the expansion of the B2B sales tax on services would affect our members’ businesses.


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Beltway Perspectives from Elliot Eisenberg

A semi-regular column on the national economic and housing scene from Washington D.C. by Dr. Elliot Eisenberg, Ph.D., GraphsandLaughs, LLC

Inflation - What Inflation?

Over the last five years the prices of gold, silver and platinum have all risen dramatically out of fear that rampant inflation will appear. After all, the size of the Federal Reserve’s balance sheet has exploded from $800 billion in 2008 to $3 trillion today and will rise to $4 trillion by the end of 2013. Simple logic says that adding over $3 trillion dollars to the money supply in such a short time must create inflation. And, if inflation is not here now, it surely will be sometime in the near future, right? Maybe not.

Think about inflation like a racing car. For the car to go fast you need gas in the tank and a driver willing to put the pedal-to-the-metal. Absent either one, the car goes nowhere; same with inflation. For inflation to take hold, you need both an increase in the money supply and lots of bank lending. However, lending, for a number of reasons, has been chronically weak. Banks are fearful loans won’t be repaid; they are scared they will run afoul of new regulations, and more generally they feel that regulators don’t want them to lend. In addition, in 2009, 2010 and 2011 banks were hard at work fixing their own balance sheets and were really not in a position to extend credit. Returning to our racing car analogy, the driver is pressing the gas pedal very gingerly.

To give you a feeling for how lightly the gas pedal is being pushed, the velocity of money, or the number of times a dollar circulates before it comes to rest, has (along with other similar monetary measures) tanked. Before the Great Recession, the velocity of M1 (cash) was 10.5, it’s now 6.5, while for M2 (cash and checking accounts) it declined from 2.1 to 1.5. These are dramatic declines...keep reading      


More Good News

Investors are Betting Big on the Housing Recovery

CNN Money - "Hedge funds and private equity firms have been rushing in to buy up companies and assets in every part of the housing supply chain, including undeveloped land, homebuilders, foreclosed homes, and building parts manufacturers" [keep reading].

Asking Prices Rise a Record 0.9% Month-over-Month Nationally

Trulia - "In January, asking prices rose 0.9% month-over-month, seasonally adjusted — the highest monthly gain since the price recovery began. Year-over-year, asking prices rose 5.9 percent" [keep reading].


BATC-University Gets Top Reviews

“All the presenters had high energy and were knowledgeable in their seminars. The day went very smoothly and I learned a lot.” - 2013 BATC-U Attendee

Attendees have rated BATC-U in 2013 as Very Informative and Full of good interaction. Attendees appreciated the smooth flow of the course days and praised BATC-U for being well organized.

You can still get your 2013 credits and find out why we get rave reviews:

View the complete BATC-U course schedule >>

View the CAPS course schedule >>


Matt Blair on his Favorite Viking Memories

His inspiring 12-year career as a Minnesota Viking taught Matt Blair the power of setting and reaching goals. Come be motivated by Matt Blair as he shares his techniques and tricks for success at the BATC Foundation Luncheon on February 21st at 11:30am.

To hear about Blair's most memorable moments as a Viking, watch this video >>

Register for the luncheon >>


Only Four Booths Left. Any Takers?

Right after the BATC Foundation Recognition Luncheon, the showroom floor will open for the Builders & Remodelers Show, February 21st at 2pm.

If you still want to get in on the action, this is your last chance to Buy a booth >> 
Contact Nicole Coon at 651-697-7571 if you have questions.

Register to attend the show >>
Get more information at WWW.BATCBRS.COM


One Thing Every Business Needs to Know

Listen up! The value of social media doesn't lie in how you talk to your followers, it's in how you listen to them. Read this article to see how one attentive company generated over $10,000 with one simple tweet. Read it now >>

Are you on Twitter? Tweet us @BATCTC and let us know! 

Follow BATC on Twitter @BATCTC
Follow Parade of Homes TC @pohtc
Follow James Vagle, Public Policy Director, @jvags
F
ollow David Siegel, Executive Officer, @davidsiegel1

 


Making a Good Impression at the Job & Career Fair

Over 400 candidates showed up at BATC's first Job & Career Fair, held last week at the Roseville Skating Center. Plenty of great connections were made by the 17 BATC member companies, which had over 200 jobs to fill from labor to sales, warehouse to admin. Read about in this Star Tribune article.


Events & Announcements

*Receive a BATC Bonus Buck, worth $100 in BATC Bucks, when you attend an event that's in our  2013 'Champion Event Series.'

February 12
Remodelers Round Table at Designer Marketplace [register]
February 12
Showroom Mixer at Designer Marketplace [register]
February 14
MN Green Path Refresher [get more information]
February 21, 2013*
Builders & Remodelers Show [buy a booth]
February 21, 2013
Foundation Recognition Luncheon [get more information]
March 2-24, 2013
Spring Parade of Homes
March 22-24, 2013
Spring Remodelers Showcase
March 5
Re-Build Happy Hour hosted by YP’s [register]
March 12
Showroom Mixer at Brock White [register]
April 11
Member Mixer [get more information]

See Complete Calendar >>
V
iew the 2013 Bonus Buck Events >>

Become an event sponsor: Take your membership to the next level by partnering with BATC. Contact Kori for sponsorship openings.