St. Charles officials will review plans to create a tax increment financing district to spur redevelopment of the shuttered Pheasant Run Resort which was damaged by a large fire in May.
Officials previously said it will cost more than $42 million to redevelop the site at 4051 E. Main St. in St. Charles, including an estimated $16.5 million in demolition work, site preparation and environmental cleanup, according to the tax increment financing redevelopment plan.
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The city hired TIF consultants Kane, McKenna and Associates to create the plan, which a panel was set to review this week in a now-canceled meeting. City officials said they are working to reschedule Thursday’s Joint Review Board meeting that would have brought together representatives of local taxing districts affected by the proposed TIF district. The meeting will probably be held in November.
A public hearing on the redevelopment plan is scheduled for 7 p.m. Dec. 5 at the St. Charles Municipal Building, 2 E. Main St.
Pheasant Run closed its doors in March 2020 after attempts to auction the resort were unsuccessful. In November, the St. Charles City Council’s Planning and Development Committee recommended approving a zoning map amendment that would help create a proposed industrial park there.
A fire on the site engulfed large sections of the resort in flames on May 21, causing significant damage. Four teenagers are accused of illegally entering the property, and once inside, two of the teens allegedly set papers on fire in two locations.
The resort’s main lobby, its Bourbon Street area and A, B and E wings of the hotel rooms were destroyed by the fire, but crews were able to save the 16-story tower on the property.
The fire increased the need for a tax increment financing district because redevelopment is not likely at the site without financial help, the proposed TIF plan states.
Under a tax increment financing district, the property tax amount collected is essentially frozen at the time the district is created. As property values increase with development, the additional tax dollars are placed into a fund to help finance public improvements in the district.
“Without the use of city planning and economic development resources to address certain issues, potential redevelopment activities are not likely to be economically feasible,” according to the plan. “These factors potentially weaken the likelihood for redevelopment opportunities, limiting employment and contributing to a lack of future investment in the area.”
There is no set proposed project for the site, according to the plan, which calls for retail, commercial and light industrial/warehouse uses.
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Especially in light of the decline of Charlestowne Mall in St. Charles, the plan argues it is important for the city to be proactive in encouraging redevelopment at the Pheasant Run site, which it calls a critical location in the city.