St. Charles City Council approves $5 million incentive for McGrath Honda's relocation

The eastern gateway to St. Charles is about to get a major makeover.

As expected, the St. Charles City Council voted unanimously Monday to approve a $5 million incentive that will allow McGrath Honda to relocate from elsewhere in the city into a 12-acre eastern portion of the vacant Pheasant Run Resort property occupied by the shuttered Mega Center.

In addition to approving the McGrath Honda move, the City Council also approved the dividing of the entire 46-acre former Pheasant Run Resort property at the southeast corner of East Main Street and Kautz Road into three parcels, including the one that will be occupied by McGrath Honda.

"The city is pleased to see redevelopment initiated on the former Pheasant Run Resort site," St. Charles City Administrator Mark Koenen said of the resort that closed in March. "The relocated McGrath Honda dealership has the opportunity to expand its footprint within the city while other redevelopment opportunities are considered along the East Main Street corridor."

McGrath Honda, currently located at 1411 East Main Street, will receive $5,256,000 paid over 15 years with more than a million dollars going toward public utility improvements. About $4 million will be paid through a sales tax rebate where 75 percent of future sales tax generated by the dealership will be rebated to the dealership and the remaining 25 percent kept by the city.

That agreement remains in place until the $4 million amount is reached or the 15-year window closes.

The city's 25 percent share will go toward the utility improvements. If the dealership closes or moves, the city will be refunded the remainder of the public utility money that hasn't already been paid to the city.

The 12 acres slated for McGrath Honda includes room for a possible additional dealership in the future. The middle lot on the 46-acre property consists of the bulk of the main Pheasant Run Resort buildings.

The third lot is a mostly undeveloped parcel at the intersection of Main Street and Kautz.

The golf course is not part of the proposed subdivision because it's owned by the DuPage Airport Authority.