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St. Charles is considering a redevelopment proposal for the former Pheasant Run Resort site that would turn the property into a number of commercial spaces for things like restaurants and retail spaces.

Located near the city’s eastern edge at East Main Street and Kautz Road, the property being discussed is the remaining 33.7 acres of what used to be the Pheasant Run Resort, a facility that shuttered in 2020.

In 2022, a fire on the site engulfed large sections of the resort in flames, causing significant damage.  Portions of the hotel there were ultimately destroyed by the fire, but crews were able to save the 16-story tower on the property.

The remaining resort buildings were ultimately demolished, but discussions about redeveloping the property have been going on for years. Parts of the former resort property have been sold off over the years, for car dealerships and an industrial park, per the city.

This would be the last portion to be redeveloped.

A concept plan for the project — called The Shops at Pheasant Run — was submitted to the city by SC Landman LLC. Its proposal is for a mixed-use development offering shopping, dining and recreation amenities, according to Peter NeCastro, an attorney from DLA Piper which represents SC Landman, an affiliate of Chicago-based developer Vequity.

The project could include things like retail, a bank, restaurants and day care, NeCastro said at the St. Charles City Council Planning and Development Committee meeting on Dec. 8, at which council members discussed the proposed project. Public art installations are also being considered for the site.

The whole development would include 12 to 15 commercial lots, per a memo from the city.

There are two possible site plans being proposed, NeCastro said: one with a car dealership on the easternmost portion, and another with a gas station.

The property is currently zoned for business, according to the city.

The developer also intends to seek $3.3 million in financial assistance from the city to help with development costs like soil and environmental remediation, according to the city. The property is within the Pheasant Run TIF District, per the city, which has expected the condition of the site means redeveloping it would require TIF support.

A TIF district is a sort of economic development incentive in which the value of a property is essentially frozen, and the extra or “increment” taxes created by developing the property go into a special fund used to pay for costs related to improving the area.

At the Dec. 8 meeting St. Charles City Council members expressed support for the proposal, asked questions about things like traffic and signage for the project and raised a few concerns.

Ald. Mark Foulkes, for example, said he supported the option including a car dealership, calling it a “strong sales tax generator for the city.” He also said he was against the idea of a car wash as one of the businesses included in the project, saying there are “plenty of those” in the area.

Ald. Bryan Wirball also expressed support for the idea of a car dealership as part of the project, and said he was opposed to a gas station and truck stop.

“Just from a traffic point of view,” he said.

Ald. David Pietryla also noted concern about the idea of a truck stop.

A few council members expressed concern about the number of drive-thrus proposed for the project — listed as between five and 15 in the developer’s application.

The developer is seeking the maximum number of drive-thrus possible to give it “maximum flexibility” as it markets the site, NeCastro explained, but he noted that the developer understands that would be subject to further review.

Christopher Ilekis, the owner and founder of Vequity, said there is a demand for drive-thrus following the COVID-19 pandemic, but said the final plans would likely not have all of the proposed ones.

Ald. Ryan Bongard said the overall plan “makes sense,” but asked about whether this plan “saturate(s)” what already exists in terms of the types of businesses included.

“It’s not anything new,” Bongard said. “It’s fine. Is that viable?”

Ilekis said the company’s business is “really based around national retail development.”

“We think there’s … still a need,” Ilekis said of its pitch for commercial development. “There’s a lot of new exciting retail and restaurants that are coming into the marketplace that this is a great fit for.”

Ilekis said a variety of uses are being proposed across the parcels to give the developer more flexibility.

Ald. Jayme Muenz also expressed some concern about the retail being “repetitive” with what’s nearby, and encouraged “some destination-type venues.”

“We have very high esteem for this, this site given what it used to be,” Muenz said. “I would love to see something that … is a draw to the city, that brings people to come and visit and stay. And things that serve the community, as opposed to a drive-thru coffee place, which you could have pretty much anywhere.”

The Dec. 8 presentation was only a discussion, meaning the City Council took no formal action on the proposed plans. Review of a developer’s concept plan essentially allows developers to get feedback from city officials and the community before preparing more detailed plans and deciding whether to further pursue a project, city officials said.

If the developer moves forward with the proposal, it would need to obtain a number of other approvals from the city before the plan is finalized.

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