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Developing the Red Rock Community
Prepared and Presented by
Jon Blackmon
Now is the time to develop Downtown Red Rock!
Red Rock is ideally situated as a day visit destination
Located at Hwy 20 and FM 812
Leisurely and scenic half-hour
drive from the Capitol.
Today’s Situation
Red Rock has bad fire karma. The town has completely burned down twice in it’s present location.
Another recent fire in 2003
destroyed the Petty property.
Two empty buildings
Besides two existing businesses, there are two old and dilapidated buildings remaining of what once was a functional town.
A large investment would be required to bring those buildings to commercial readiness.
There is no organized city government.
There are no zoning laws.
Even though much infrastructure for high density housing exists, there are no apartments or multiplexes.
Red Rock youth are under-employed
Area is full of capable young people in need of local employment opportunities.
How Did We Get Here?
Once lively and thriving, fires razed Red Rock twice in the last 50 years.
Most owners rebuilt after the first fire, but the second conflagration devastated the new buildings, and left the owners financially unable to rebuild yet again.
We need a town!
There is a continuing lack of buildings for housing, government and business.
Population has steadily increased in the area without a corresponding growth in the downtown business sector.
Main Infrastructure Exists
Two churches Community center Post office Restaurant Elementary School Hair salon Several dozen houses Three stores with two Gas Stations
Most Utilities are Available
Paved roads Electricity Telephone Water Garbage collection service Propane delivery services
Some Utilities Not Available
No central natural gas distribution pipes
Requires installation of expensive storage tanks
No central sewage system
Individual septic systems very expensive
No wastewater system
A centralized sewage system is required to support high density improvements like apartments and multiple businesses.
A state or federal grant could be a community wide solution.
Temporary solution is individual modern septic systems. Cost is $15,000 and up.
Commuter Traffic
A large amount of commuter traffic occurs daily on FM 812 and Hwy 20.
Most Red Rockers work in Austin or Bastrop
Let’s develop a new Red Rock business community!
Build a Picnic Park and Frontier Boardwalk Façade for four businesses.
Put in four small businesses
Internet Café, Coffee and Donut ShopWeekly NewspaperIce Cream StoreMusic StoreAntiquesBBQ, Hamburgers, Hot Dogs, Fried ChickenBankTobacco ShopHerbal Shop or Health Clinic
Make Red Rock a day trip destination
Advertise an overall theme, such as “Railroad Frontier Town” or “Cowgirl Capitol of Texas” Make a picnic park reflecting the theme. Build a Frontier Style Theme-oriented Façade
with four small businesses. Employees act and dress in period (1890’s)
costumes.
Obstacles
Present downtown property owners not interested in commercial development.
Previous owner of the some of the most valuable land in Red Rock, Mrs. Petty, recently died shortly after her house burned.
Two income streams
Lease Income and Profit Sharing Lease out each location for $3,600 per
year plus ten percent of the business profit. Total yearly lease income is $14,400. Total yearly profit sharing from all four
businesses could be more than the lease income.
Profit Sharing
Suppose each business makes a yearly profit of $25,000.
Four businesses produce $100K.
Profit sharing at 10% would total an additional income of $10,000 each year, added to the lease income of $14,400.
How much will it cost?
Estimated cost is $72,000.
Investment is fully repaid in 5 years.Building depreciation brings big yearly tax break.Income of at least $20,000 per year will continue for many more years.
Don’t forget the Tax breaks
$72K investment brings in $72,000 cash over five year period in lease income.
Added profit sharing can be quite large if the businesses are successful, even more than lease income!
The $72K building is depreciated over 10 years, giving big tax breaks,
And you still have the land and buildings!
Recommendations
Form a development corporation.
Fund the corporation by selling stock to local investors.
more recommendations…
Build the Frontier Park and Boardwalk in six weeks.Use prefab buildings such as mobile homes
Build boardwalk façade to hide buildings and create theme.
Landscaping finishes the effect.
Lease it to four new businesses.
Be sure to buy fire insurance!
When it works, we do it again!
Have you heard about Rockne?