Modified development plan for former Pheasant Run Resort site in St. Charles shot down by committee

A developer’s much-discussed plans for a portion of the former Pheasant Run Resort site in St. Charles will not — at least at this point — be heading to the city council for final approval, as resident and aldermen pushback about the proposal continues.

After punting a decision on whether to recommend a proposed plan earlier this month, the council’s committee of the whole last week shot down a modified preliminary plan for the redevelopment of the site, set to be called The Shops at Pheasant Run.

But that doesn’t necessarily mean the proposed development is dead. According to St. Charles City Administrator Heather McGuire, the city is still in conversation with the developer, who could come back to the city with a modified pitch.

Located near the city’s eastern edge at East Main Street and Kautz Road, the site 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 engulfed large sections of the resort in flames, causing significant damage. Portions of the hotel there were destroyed by the fire, but crews were able to save the 16-story tower on the property.

The remaining resort buildings were eventually 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. This would be the last portion of the property to be redeveloped.

Last year, a concept plan for the site was submitted to the city by SC Landman LLC, the property owner entity of Chicago-based developer Vequity, proposing a project that would include things like retail, a bank, restaurants and a daycare.

Included in preliminary plans for the development recently presented to the city were, for example, a Chase Bank, Valvoline Oil Change and Dutch Bros Coffee. Some of the planned uses for other lots on the property had not yet been settled on and would require future city approval of their preliminary plans.

But, while the council generally was supportive of development on the site, some of the specifications of the proposed project generated pushback from St. Charles City Council members at a meeting earlier this month, on matters like the number of drive-throughs and the possibility of a car wash being located there.

In response, the applicant proposed some modifications to the request — specifically dealing with the drive-through and car wash issues.

Namely, the developer agreed to limit the project to eight drive-throughs in total and eliminate car washes as a permitted use, per documents included in last week’s committee of the whole meeting agenda. Under the revised proposal, five of the drive-throughs were slated for sites that already have planned uses, while the remaining three would be for the other lots whose uses had not yet been determined.

Plans for those three additional drive-throughs would have to be reviewed by the city later on, according to Russell Colby, the city’s director of community development.

Originally, the proposed redevelopment plans included a request that drive-throughs be permitted on all of the lots.

The proposed changes mean that any drive-throughs beyond the eight allowed or any proposed car washes on the site would require further city approval at a later date.

At the meeting last week, the proposal prompted criticism from several members of the public, who cited concerns about the car-oriented nature of the development, uncertainty about what the area will one day hold and a desire for a different kind of development overall.

Peter Bazos, an attorney representing the developer, noted the property already is zoned for business, meaning it permits uses like car washes, vehicle sales facilities and bars.

However, the developer is pursuing a planned unit development, or PUD, because it will “enhance the project” and “speed its absorption and development.”

The only significant change from what’s already permitted under current zoning, according to Bazos, is the allowance for drive-throughs.

Christopher Ilekis, owner and founder of Vequity, said for the development to be successful, it would have to have “a lot of variety and uses throughout the project.” In addition to the eight drive-throughs, he noted, there are also multitenant buildings and dining and retail proposed.

Ilekis also pointed to the amenities the project would provide that “aren’t common to similar projects,” such as public art, patios and pedestrian seating areas.

“Although it … is, you know, a high-traffic road, it does allow for walkable retail and dining throughout the project,” Ilekis said.

Despite the modifications proposed, the project still faced some criticism from city council members. Some of the pushback again centered around the number of drive-throughs, despite the proposed limitation.

“Eight (drive-throughs) out of 14 (lots) is not a pedestrian-focused development,” Alderwoman Vicki Spellman said. “That is a car-focused development. There’s just, there’s no way to characterize it otherwise.”

Aldermen Dave Petschke, David Pietryla and Ed Bessner all favored the site having fewer drive-throughs as well.

Alderman Ronald Silkaitis said he doesn’t think the project is a good fit for St. Charles, calling it “a big strip mall on Main Street.”

A couple of council members were more supportive of the proposal.

Bessner noted the “development momentum” on the city’s east side as a potential reason to support the project.

And Alderman Bryan Wirball said while he doesn’t support a car wash or truck stop, the city needs to move forward with the project “in a collaborative manner” because the developer has the right to put many of these uses on the property, anyway, and a PUD gives the city more control over what ultimately goes there.

City officials also considered providing financial assistance for the project.

While not part of the approvals under consideration at last week’s meeting, the developer has indicated plans to seek at least $3.3 million in tax increment financing, or TIF, funds to help with the costs of redeveloping the site.

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” in taxes created by developing the property go into a special fund used to pay for costs related to improving the area. The property is within the Pheasant Run TIF District.

As of 2031, once the project is fully built, it’s expected to generate around $611,000 in TIF revenue annually — and around $12.3 million over the remaining life of the TIF district, per the city.

Ilekis did not immediately return a request for comment about future plans for the site.

The city is still in conversation with the developer about the project. The earliest the matter could come back to the committee of the whole would be in early September.

mmorrow@chicagotribune.com