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?