Get the stuff with the hole. I think they are 2" sq. Rip it on the band saw and you will have 4 pcs 1 x 1 x ?. From here you can drill the hole you need and its plenty big in diameter for the lip stop. I find cutting the blanks the length of the drill bit and then slide on a mandrel and light cuts you can get 4 out of a setup.
And use a pc of hollow tubing for the drill bit. Just sharpen the internal edge of the tubing (think remer,tapered bit) This creates a core drill and will give you a nice clean edge and hole.
