Look Back at 2011: End of The Line For Roseville-based Rottlund Homes

Officials at Roseville-based Rottlund Homes, one of the Twin Cities largest and longest running home builders, said this past fall that their company is going out of business.

The company planned to wrap up construction on 20 remaining homes by the end of December and intends to sort out the last of its finances during the first quarter of 2012. 

Buffeted by the housing construction slump during the past five years and now a bank syndicate unwilling to continue lending for the company to build more homes, Rottlund Homes officials said they had no option but to call it quits. The company's demise comes after being in business since 1973 and once ranked as the Twin Cities second-largest home builder.

In Twin Cities' housing circles, the passing of Rottlund was like a major retailer passing from the scene or a prominent manufacturer having to shutter its doors. 

Company Chief Financial Officer Steve Kahn said Rottlund's imminent exit was the result of the housing market. "It has been in the doldrums for the five years," he said. 

The proof is in the numbers: In 2010, Rottlund posted sales of about $38 million, greatly depressed from the $350 million that it reaped during housing's boom years.

Around the country, there have been scores of home builders that have gone out of business, Kahn said.

Added Mike Swanson, a 21-year Rottlund employee and company vice president and corporate construction risk manager, "It is the death of an industry."

Dave Siegel, executive director of the Builders Association of the Twin Cities, said his industry has gone through a depression. In 2007, the Twin Cities metro region added 19,000 new housing units; last year that number was only 4,000, he said.

"It (Rottlund closing) is a sad day and chilling for the industry when you see such a long-standing builder like this succumb to the economy," Siegel said. "It's prettiy significant."

Rottlund gained its reputation as builder of single-family homes and in more recent years also took on construction of multi-family houing, including townhouses. Over the years, some of Rottlund's more notable developments included the Upper Landing in St. Paul and Dancing Waters in Woodbury.