HBAGK Builders' Voice - June 1, 2006 (Print All Articles)


Association Reveals 2006 Builder and Associate of the Year

The prestigious Builder and Associate of the Year award winners were unveiled during the May General Membership Meeting.  Annie Morgan, of Senior Services, Inc., was named Associate of the Year and Ken Klok, of Kenneth J. Klok Builders, was selected as Builder of the Year for the second time, since the award’s creation three years ago.

The prestigious Builder and Associate of the Year award winners were unveiled during the May General Membership Meeting.  Annie Morgan, of Senior Services, Inc., was named Associate of the Year and Ken Klok, of Kenneth J. Klok Builders, was selected as Builder of the Year for the second time, since the award’s creation three years ago.
 
Annie Morgan has been an active member of the HABGK for 11 years. After receiving the Associate of the Year award Annie said, “The highest honor one can receive is from his/her peers. I love donating my time; it’s an amazing feeling to be recognized for it.”

Morgan has served as Remodelors Chair since 1999. As chair, she has been a driving force behind the Annual Junior and Senior Rampathon, events that build wheelchair ramps for those with special needs.

Morgan’s dedication to the community and its citizens reaches beyond the organization and local community. Annie created “Tuesday Toolman”; a group of volunteers who make home repairs for low-income seniors. The program has been replicated in Traverse City and has earned  recognition from the Governor of  Michigan.

 

Ken Klok, a 25 year member of HBAGK, is a generous contributor to the organization and the community.  This year will mark Ken’s 15th year as Co-chair for the annual Fast-Built House project. When asked to comment on his Habitat involvement, Klok said, “Owning a home is part of the American Dream. God has blessed me with many gifts and talents; I enjoy using them to help others achieve their dreams”.

Ken’s involvement extends beyond Fast Built. He also serves as Membership Committee Chairman, sits on the Executive Board and Home Expo Committee, as well as attends legislative meetings with local, state and national officials. 

Recipients of the award represent the best of our association and our industry to the public and shine a light on our collective positive contribution to the community and the welfare of its citizens. Past winners include Ken Klok and Troy McClure in 2004, and Bill Dykuis and Sherry Kuzma in 2005.


Parade of Homes

The Parade of Homes, June 9-17, is an exciting and beneficial event for the association and its members. Builders can proudly display their new or remodeled home to the public and gain recognition for what they have worked so hard for. It is important that we help the participants get the word out to the public. To help promote  interest, members can order complimentary tickets  to expose current and potential clients to the Parade.

The Parade of Homes, June 9-17, is an exciting and beneficial event for the association and its members. Builders can proudly display their new or remodeled home to the public and gain recognition for what they have worked so hard for. It is important that we help the participants get the word out to the public. To help promote  interest, members can order complimentary tickets  to expose current and potential clients to the Parade.
To boost complimentary ticket sales, the HBAGK is going to host a drawing for members only. For every 25 complimentary tickets that are redeemed, your company will be placed in a drawing to win one of five fabulous prizes (see advertisement for details).Tickets are $9 and you only pay for tickets that are redeemed.  Members can order complimentary tickets by calling the HBAGK at 375-4225.


 


Executive Officer's Desk

Letter from our Executive Vice President

After a long and wet month of May, I am excited to see the sunshine once again. Summer brings many exciting events, such as graduations, the annual cookout, weekend getaways, golf outings, and not to mention, the Parade of Homes.  I know more than anyone, it’s easy to get caught up in your busy routines, so don’t forget to mark important events down on your calendar.

Our second major event to promote our industry to the community is just around the corner. Parade of Homes, June 9-17, is a great opportunity to showcase the quality and variety of new and remodeled homes.

We expect this year’s Parade to be a huge success. Local service groups have already begun to donate their time to help with pre-sell tickets, and now its time to turn to you, our members. It’s not too late to order your company’s complimentary tickets. So don’t miss out on this fabulous opportunity to not only promote your company, but possibly win some great prizes.

 I look forward to seeing everyone soon at one or more of our summertime gatherings.



Buying and Selling a Small Business: Business Valuation

When considering buying or selling a business, a key starting point is determine the market value of the business.  Actually, before most businesses are sold, entrepreneurs do some form of business valuation when handling estate planning, corporate reorganization or verification of their worth for lenders or investors.  Whether you are experienced in valuing a company or a novice, buying or selling a business, there are a few essential steps to follow.

When considering buying or selling a business, a key starting point is determine the market value of the business.  Actually, before most businesses are sold, entrepreneurs do some form of business valuation when handling estate planning, corporate reorganization or verification of their worth for lenders or investors.  Whether you are experienced in valuing a company or a novice, buying or selling a business, there are a few essential steps to follow.
Assigning a Price to Business Assets
When valuing a company it’s rare that buyers and sellers come up with a similar figure. Your goal should be to determine a ballpark figure from which the buyer and the seller can negotiate a price that they both can live with.  As you negotiate the purchase of a business, you will be evaluating each of the major assets.  There is usually room for negotiation in valuing assets. The overall price paid for a business or its assets usually reflects how eager the parties are to make a deal, not how much each item is truly worth.  Asset valuation is typically used when a company is asset-intensive, such as a retail business or manufacturing company.   Market value is determined first by evaluating the fair market value of fixed assets and equipment.  This is the price you would pay on the open market to purchase the assets or equipment.  Leasehold improvements would also be considered.  The seller’s discretionary cash, or owner benefit, for one year would be attained from the adjusted income statement.  Finally, wholesale value of inventory, including raw materials, work in progress and finished products,` would be accounted for.  For non-asset intensive businesses, such as service companies, you should consider capitalization of income valuation.  This method takes into account a greater number of intangibles, such as the owner’s reason for selling, length of time the company has been in business, degree of risk, competition, customer base, location and profitability.   Another option, owner benefit valuation, includes a formula used most often for valuing businesses based on their ability to generate cash flow and profit.
Making Favorable Asset Allocations
There is almost always flexibility in valuing assets, so the buyer should propose the allocation of purchase price that provides the most tax benefit.  Typically, you want to allocate as much of the purchase price as possible to assets with the fastest tax write-offs and the shortest depreciation periods.  For example, you may attribute much of the price to business equipment that can be depreciated over three, five, seven or ten years.  Assign smaller values to intangible assets because they have a 15-year tax write off period.  Professional appraisals, though not strictly required by the IRS, are a good idea – especially if the price of the business purchase is more than $100,000.  If you are ever audited, the IRS may question the asset valuations, and if the numbers are not supportable, the IRS can reallocate values.
Business Structure
How the business is legally structured - sole proprietorship, limited liability company or corporation - also has important tax consequences for both the buyer and seller.If you buy a partnership, limited liability company or sole proprietorship, you are getting just its assets: a store lease, inventory, customer list and so on.  Normally, you don’t take over business-related liabilities, such as tax debts.  Your contract in this case should require the seller to pay all debts before closing out of escrow.  If not, the debts remain the seller’s personal liability after the transfer. In the case of corporations, the tax situation is more complex. It is a crucial choice to buy either corporate shares or its assets.  For example, if you buy only a orporation’s assets, you don’t assume its liabilities, including taxes. However, if you buy a corporation’s shares of stock, you own both its assets and liabilities, including known and unknown taxes. So why would you even consider buying a corpaoration’s stock? Some owners will want to rid themselves of any potential tax liability and will sell only if a buyer takes corporation stock.
Get Advice
Buying or selling a small business may be a huge undertaking, so be sure to seek the advice of a financial advisor before you get started. Consult with your attorney or tax advisor regarding specific tax issues.  For more information on Ameriprise Financial, visit the company’s web site at Ameriprise.com or call (800) 386-2042.
This information is provided for informational purposes only. The information is intended to be generic in nature and should not be applied or relied upon in any particular situation without the advice of your tax, legal and/or your financial advisor. The views expressed may not be suitable for every situation.
Ameriprise Financial Services, Inc., Member NASD and SIPC.


Sprinklers In, For Now

By a pair of identical 6 to 3 votes, the 2006 Building, Residential and Rehabilitation Code Review Committee, voted to require “An approved automatic fire sprinkler system…be installed in new one- and two-family dwellings and townhouses in accordance with Section 903.3.1 of the International Building Code.”

By a pair of identical 6 to 3 votes, the 2006 Building, Residential and Rehabilitation Code Review Committee, voted to require “An approved automatic fire sprinkler system…be installed in new one- and two-family dwellings and townhouses in accordance with Section 903.3.1 of the International Building Code.”
Voting, not once but twice, in favor of sprinklers were Jeff Kruse from the Michigan Council of Carpenters and Millwrights, James Renaud from AIA/Michigan, Kay Demey, the residential Tyvek specialist from Hansen Marketing Services, Inc., Tim McGladdery Building Official from the City of Walker, Ken Doty Building Official from Charlevoix County, and Vic Hilbert Fire Chief from Delta Township.
Testimony offered by the MAHB against this requirement was overshadowed by the presence of nearly 30 representatives from fire fighting services around the state, many of whom gave impassioned testimony concerning the need for sprinklers in all new construction.  Nearly two hours were devoted by the committee to discussion on the various aspects of the issue including need, cost and practicality. One of the more interesting comments came from the representative of the carpenter’s union who said he did not care if sprinklers added $7,000 to the cost of a new home; his life and the lives of others were worth that expenditure.
The decisions of the review committee are only recommendations. However, once an item is approved by the committee, it is usually very hard to get that recommendation reversed.
The next stage in the process will be the public hearing which has not yet been scheduled. The MAHB is working closely with the NAHB and other concerned associations and individuals to present a compelling case against this new proposed requirement at the hearing.


We Will Miss You, Roy Kanaby!

On Friday, April 28, Edward Roy Kanaby, an HBA State and National Life Director, passed away.

On Friday, April 28, Edward Roy Kanaby, an HBA State and National Life Director, passed away.  Roy was a genuinely kind-hearted man who always did the right thing.   He was a hard working man.  After fighting in the Air Force in WWII, Roy retuned to the United States after 32 missions.  He then became a gunnery instructor for B-29s.  During 1945, he attended the Lawrence Institute of Technology for electrical engineering.  Because union disputes made it very difficult to go any higher than superintendent, Roy went into residential construction.



Mary Ellen and Roy Kanaby
with Dick Devos

As  a licensed builder, Roy joined the Home Builders Association of Greater Kalamazoo in the 1960’s, where he became heavily involved in the association.  In the 60’s, Roy specialized in siding, windows, storm doors, awnings and roofing.  Roy became the HBAGK Vice President, and at one time was nominated for the position of President.  Though it was a requirement to have been elected as President of a local association, he was a part of the MAHB Nominating Committee.  He was a member for 39 years, and for five of those years, he was Region IV Vice President.  He was heavily involved in politics at both the state and local levels, attended national meetings annually, and regularly gave to the Builders Political Action Fund.   Roy was a great man and loved by all. A true asset to the building industry and everyone else he came in contact with. He will be greatly missed.


Association Welcomes New Staff Members

Meet the new staff members of the HBAGK.

Recent Western Michigan University graduate, Faith Grattan, has become the newest addition to the Home Builders Association of Greater Kalamazoo.  Faith is 22 years old and graduated in April after her four-year college career at WMU.  There she majored in marketing, with minors in communication and general business.  She was also on the WMU Dean’s List for many semesters.  Hired in May, Faith is now the Marketing Communications Director at HBAGK. 
 Faith is originally from Waterford, and now resides in Kalamazoo.  She began interning with HBAGK in October, at which time she worked on Home Expo planning and General Membership Meetings.  In her new position she will be highly involved in website sales and the Builders Voice.  With her high level of energy and incentive she is sure to be a valuable addition to the Home Builders Team.
 Rachel Punke has been with the association since April, 2005. After interning with HBAGK during the summer of 2005, she entered a part time position in January, 2006. Rachel was heavily involved in the New Home Expo and you can thank her for all of the food donations at the previous Fast-Built. Currently she is engaged in the event planning and public relations of the organization.
 The twenty one year old student from Saginaw, Michigan, is in her fourth year at WMU. She is attaining a degree in Public Relations with minors in dance and marketing.  As  a member of the WMU Dance Team, the Battle Creek Crunch Dance Team, and Alpha Phi Sorority, Rachel stays very active during her time away from the office. Rachel’s enthusiastic attitude and great work ethic have made her a valuable asset to the HBAGK.       


Welcome, New Members!

Chek out the new additions to the association.

Ambati Flowers & Water Gardens
Brundage Plumbing
Cody Quality Builders, LLC
Custom Design Group
Exterior Decorative Designs, LLC
Fasteners, Inc.
The Feighner Company, Inc.
Hiscock Siding
Hometowne Building Company
Innovative Stone Creations
Main Dish Kitchen
Meridian Title Corporation
Summit Construction Equipment
Varnum
Wallar Additions

 

 


Membership Applications

If there is any reason an application should not be approved for membership, please contact the HBAGK office in writing within 7 days.

If there is any reason an application should not be approved for membership, please contact the HBAGK office in writing within 7 days.

James Hardie Building Products
Brian Martisauski
Fiber cement; Building & Siding products
21270 Clayton Drive
Macomb, MI 48044
Phone:  (586)738-6901
Fax:  (949)348-4534
ASSOCIATE
Sponsor: Dick Frantz, Construction Market Report

Hoosier Hardwood Floors, LLC
Gerald Miller
Hardwood flooring distributor & installer
2114 Elkhart Road
Goshen, IN 46540
Phone:  (574)533-2070
Fax:  (574)533-2072
ASSOCIATE
Sponsor: Tim Thomas, Addco Builders of Michigan

JC Penney
Lori Van Pelt-Kelly
Retail store
6850 South Westnedge
Portage, MI 49024
Phone:  (269)323-7711
Fax:  (269)323-7976
ASSOCIATE
Sponsor: Ken Klok, Kenneth J. Klok Builders

Mattawan Mechanical Services
Tom Vaughn
HVAC
28895 Red Arrow Highway
Paw Paw, MI 49079
Phone:  (269)668-5415
Fax:  (269)655-1216
ASSOCIATE
Sponsor: Ken Klok, Kenneth J. Klok Builders

Orlando Plumbing LLC
Anthony Orlando & Jamie Pearson-Orlando
Plumbing contractor
4159 North 37th Street
Galesburg, MI 49053
Phone: (269)665-2950
Fax: (269)665-7286
ASSOCIATE
Sponsor: Steve Waite, Waite Custom Homes, LLC

3D Development Group
Emilio Dacoba
Land Developer 
57440 CR 671
Paw Paw, MI 49079
Phone: (269)207-6468
Fax: (269)344-9027
ASSOCIATE
Sponsor: Jim Beyer, Beyer Construction

ASAP Security
Todd Langdon
Home automation & security
3508 B Roger B Chaffee Memorial Blvd.
Grand Rapids, MI 49548
Phone: (616)301-8190
Fax: (616)301-8194
ASSOCIATE
Sponsor: Bill Patterson, Coma Construction, Inc.


Membership News/Updates

Address Change

JP Heating & Air Conditioning:
7142 E Michigan Ave
Kalamazoo MI 49048
phone: 269-345-1843
fax: 269-345-3878

Drapries on Wheels, Inc.
427 West Cork Street
Kalamazoo, MI 49001


Education Update

Construction Lein Law

On May 17, Shaun Willis (8 year member w/ Home Builders), an Attorney with  Willis & Willis, PLC, presented a seminar entitled, “Construction Lein Law Seminar”.

On May 17, Shaun Willis (8 year member w/ Home Builders), an Attorney with  Willis & Willis, PLC, presented a seminar entitled, “Construction Lein Law Seminar”. Attendees of the seminar received a “Lien Law Checklist”, which, if used correctly, can ensure that the rights of the contractor, subcontractor, and suppliers are protected as they work on commercial and residential projects.  Mr. Willis informed attendees of when and how each form relating to the Construction Lien Law should be sent, as well as the Homeowner Lien Recovery Fund, which is used to protect unpaid subcontractors and suppliers.   Information regarding the Construction Lien Law is extremely beneficial to all, as liens can affect not only a builder, subcontractor and a home owner, but all those involved in the home building industry. If you are interested in learning more about the Construction Lein Law or other business legal services provided by Willis & Willis attorneys please contact Willis & Willis, PLC at (269) 492-1040 or visit their website at wwplc.com. 


Short Takes

Short news items, miscellaneous events and classified ads

To place your short news item, miscellaneous events, or classified ads here, call 375-4225.


Sales Adventure: Gypsum Supply is seeking an enthusiastic and energetic sales professional to assist us with our newest adventure! Some general construction knowledge would be great, as would some successful sales experience. If this sounds like you please contact Bernie Van at 269-342-0740 or  Generalgyp@aol.com


Experienced, Fast and Reliable siding crew available for your next project. Contact Scott Yarosz or David Boersma of the Aimes Group at (269) 207-6353 or (269) 599-1369 for more information.


HBAGK is taking bids to re-stain the exterior of the building. Please call the office at 269-375-4225 if you are interested.


Kalamazoo County Directories for 2005-2006 are now available at the office for $5.00 each.


NEW FRENCH DOOR FOR SALE: Beautiful new french door unit with Transom window - in original packaging. Wood interior with beige metal clad exterior - brass hardware included - window grids- $1,500, or best offer. - call 353-7141.


For Sale: 92’ x 209’ lot with possible walk-out. 4569 Forest Creek Drive, Oshtemo Twp. Children attend Mattewan Schools. Offers easy access to destinations east and west.  Contact Marilyn Hilson, Prudential Preferred, at (269) 488-0416.


Summer Cookout and Golf Outing

Mark the summer cookout and golf outing down on your calendar!