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DuPage Airport suit could pull Pheasant Run out of St. Charles

One of the pieces of property that put St. Charles on the map more than 50 years ago soon might be removed from its borders.

DuPage Airport officials have filed a condemnation lawsuit against Pheasant Run Resort in an effort to block the iconic resort's plans to transform its golf course into residential housing as part of a major renovation to restore the business to profitability. A group of investors bought the 250-acre property in 2012 when it fell into foreclosure.

Airport attorney Phil Luetkehans said the condemnation lawsuit is “a direct response” to the resort's renovation plans. He said the resort has not responded to numerous attempts to discuss the airport's concerns about the renovation, which include securing enough room for planes to take off and land.

The condemnation filing also indicates there has been no agreement on fair compensation for the airport's takeover of the resort. The first court appearance is April 8.

St. Charles Mayor Ray Rogina said it would be a tragedy to lose Pheasant Run.

“Pheasant Run is part of our identity,” Rogina said. “It's an iconic piece of property to our community, not to mention the property, sales and alcohol tax revenue the city receives. It would be my hope that the airport authority and the resort owners could sit down and work out their differences.”

Pheasant Run, on the far eastern edge of St. Charles on Route 64, features 473 rooms, dining, an 18-hole golf course, tennis and swimming. And it has been known for its entertainment options, most recently with a Zanies Comedy Club and until last fall the Fox Valley Repertory performing in the Mainstage Theater.

Saint Charles Resort LLC purchased the resort in 2014 after the property fell into foreclosure in 2011. The Schaumburg-based Hostmark Hospitality Group took over management of the rooms and 250 acres of the resort.

Edward J. McArdle founded Pheasant Run in 1963 after signing a deal with another iconic St. Charles resident, Col. Edward Baker, to purchase what was then a dairy farm. The establishment of the resort put St. Charles on the map for many Chicago residents seeking a nearby vacation. McArdle died at age 88 in December 2013.

The resort fell on hard times during the slow economy. Reconstruction of Route 64, just in front of the resort, and a failing Charlestowne Mall contributed to the resort's problems. But Hostmark saw promise in Route 64's completion and plans to renovate or rebuild at the Charlestowne Mall site. Developers are still working on plans for what they now call The Quad St. Charles.

State law gives airport authorities condemnation power under eminent domain — the right of a government body to take private property for public use with fair compensation. Airport officials say in the filing they want to condemn the entire resort property for the purpose of “ensuring that there is no interference with location, expansion, development or improvement of DuPage Airport or with the safe approach thereto or takeoff therefrom by aircraft or restricting the height of growth or structures that are within the vicinity of the DuPage Airport or within the lines of an approach to the DuPage Airport.”

The airport's concerns were dismissed by St. Charles officials. In October, the airport's executive director, David Bird, told aldermen the resort's plans “could not be a worse use for the property.”

But Alderman Dan Stellato told Bird at the time he was offended by his comments.

“It's wrong that somebody outside of our taxing district would come in and tell us how to manage our property,” Stellato said.

Stellato may not have to worry about that much longer. It's possible the resort property, if taken over by the airport in West Chicago, would no longer be considered part of St. Charles.

For now, the city of St. Charles is not a party in the lawsuit.

John Martin became the new general manager of Pheasant Run about two weeks ago. He said he was familiar with the situation but not prepared to discuss details.

  The DuPage Airport has filed a lawsuit against owners of Pheasant Run Resort over the property's renovation plans; the first court date is scheduled for April. Laura Stoecker/lstoecker@dailyherald.com
  Pheasant Run pitched a plan for a major renovation to St. Charles officials in October. DuPage Airport officials expressed concerns about the changes. Laura Stoecker/lstoecker@dailyherald.com
  Details of the renovation for Pheasant Run, including exactly how close homess would be to the airport and its runways, have not been shared publicly. Laura Stoecker/lstoecker@dailyherald.com
  DuPage Airport is a taxing body with eminent domain power. Its 2015 budget shows the airport collected nearly $6 million in local property taxes. Laura Stoecker/lstoecker@dailyherald.com
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