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Council approves development agreement for Red Bud Ridge housing incentive district
Summary
The Augusta City Council approved a development agreement with 10 Oak Investments LLC to implement the Red Bud Ridge Reinvestment Housing Incentive District, setting financing, milestones and protections including a developer letter of credit and assignment restrictions until substantial completion.
The Augusta City Council on July 6 approved a development agreement with 10 Oak Investments LLC to implement the Red Bud Ridge Reinvestment Housing Incentive District (RHID), an incentive tool the council established earlier under ordinance number 22 65.
City staff presented the agreement’s key terms and a schedule tied to financing. Staff said the RHID timeline is linked to temporary notes that must convert to permanent bonds and that the agreement contemplates a roughly 42‑month schedule tied to that financing. The agreement requires a developer-provided financial guarantee—described in the staff presentation as a letter of credit equal to about 30% of the estimated city infrastructure cost—and sets staged release rules: 50% release when occupancy permits reach 50% and full release when occupancy permits reach 70%.
“The city will retain the equivalent of one year of bond payments when we move to final bonding, and any excess after that will be used to pay down the bond,” a staff member explained to council. The staff presentation also said the city may issue special assessments in addition to RHID revenues and that the city will withhold funds as needed to cover annual debt service before paying any excess to the developer.
Council members pressed staff on the project timing and approvals needed before groundbreak. Staff said petition and subdivision processes remain, engineering design and bidding will follow acceptance of petitions, and that certain items—engineering contracts, bidding and bid awards—will come back to council for approval. In response to a question about stormwater, staff said the development will include a detention pond and that the master drainage plan has been completed though detailed infrastructure design is still pending.
The motion to approve the development agreement and authorize the mayor to execute it was made and seconded; the council voted to approve the agreement.
Next steps identified by staff include finalizing petition cost estimates, negotiating related subdivision agreements, completing engineering design documents, and bringing the project to bid and contract for construction.
