Council adopts 20% premium for highway-frontage lots at Red Bud Business Park

Economic development staff presented updated construction and infrastructure costs for the Red Bud Business Park and asked the committee to adopt a breakeven-based lot-pricing approach.

Staff said after factoring in grants, ARPA funds and invoices received since the last packet, the city’s per-acre breakeven infrastructure cost is $27,973. The economic development commission recommended using that per-acre calculation for pricing and treating highway-frontage lots as premium property; commission members suggested a 10–20% premium for frontage lots.

"The updated Red Bud Business Park lot pricing shows the price per lot for the city to breakeven based on construction costs," a staff representative said, explaining the figures and the inclusion of new invoices. "We also recommended considering frontage lots as prime property and applying a premium."

Council members discussed rounding the per-acre figure to a marketable number and whether to add contract covenants that require building within a set timeframe, paved parking lots, and minimum standards to avoid speculative purchases. Staff said covenants would be filed with the final plat and that the city lawyer (Rebecca) would advise on language.

The committee approved a motion to set the frontage premium at 20% and to adopt the suggested lot pricing approach; motion carried by voice vote. Members asked staff to return with proposed covenant and contract language for future sale agreements.

What happens next: Staff will draft covenants and sale contract language for committee review before lots are marketed or contracts are executed.