Background
On October 5, 2026, the City Council approved a Planned Unit Development (PUD) Preliminary Plan for the redevelopment of the former Pheasant Run Resort property. SC Landman LLC (Vequity) has proposed a commercial redevelopment of the 33-acre site located at the southeast corner of East Main Street and Kautz Road (4051 E. Main Street).
The development consists of 14 commercial lots intended to accommodate a mix of retail, restaurant, and service uses. Preliminary plans identify development on six lots, including Chase Bank, Valvoline, Dutch Bros, and three multi-tenant commercial buildings. Lot 14 is designated for a future car dealership. The total projects is estimated to be at least A $70 million investment.
The approved PUD prohibits car washes on Lots 1 through 10 and requires Special Use approval for car washes on Lots 11 through 13. The PUD also permits a maximum of six drive-through facilities on Lots 1 through 6 and 11 through 13, with any additional drive-through facilities requiring separate Special Use approval.
Project Timeline
The redevelopment proposal was initially presented as a concept plan to the Plan Commission and City Council in December 2025. Following a public hearing on July 21, 2026, the Plan Commission recommended approval with conditions. The City Council reviewed the proposal at Committee meetings on August 3 and August 17, providing feedback. The revised proposal returned to the Committee on September 21, 2026, where it received a favorable recommendation. The City Council subsequently approved the PUD and Preliminary Plans on October 5, 2026.
RDA Terms
- The Redevelopment Agreement (RDA) establishes a Tax Increment Financing (TIF) reimbursement structure in which the property owner pays property taxes as usual, and a portion of the property tax revenue generated by the development is deposited into the TIF fund. A portion of these funds are then reimbursed to the developer for eligible project costs. No funds from the City's General Fund would be used to develop the project.
- The developer has agreed to a pay-as-you-go reimbursement structure, which has been the City Council's preferred approach for development incentives. Under this structure, reimbursements are made only as TIF revenues are generated and become available. Under this approach, the City would not front project costs or issue debt to fund the project.
- The RDA establishes a maximum reimbursement of $3.5 million. This amount represents a firm cap on the reimbursement, regardless of the developer's actual eligible costs or the amount of TIF revenue generated. Under no circumstances would the developer receive reimbursements exceeding this amount.
- The developer would receive 90% of the annual TIF increment generated by the project, while the remaining 10% would be retained by the City in the TIF fund. This distribution would continue until the developer reaches the $3.5 million reimbursement cap. Once the reimbursement cap is reached, the developer would no longer receive TIF reimbursements, and 100% of the available TIF increment would be retained by the City for the remainder of the TIF district's life.
- The TIF reimbursement is intended to offset extraordinary costs associated with existing site conditions that present challenges to redevelopment. Eligible costs are limited to the following categories: Earthwork and Site Preparation, Clearing and Grubbing, Tree Removal, Environmental Work, Reconstruction of Retention Ponds, Raising Existing Right-of-Way Power Lines and Low Voltage Lines, and Soft Costs Related to Environmental and Geotechnical Matters. These costs must be documented and verified as actual, eligible project expenditures before any reimbursement is issued. The developer would not receive reimbursement for costs outside the eligible categories established in the RDA.
Economic Benefits
- TIF Generation: At full buildout, anticipated in 2031, when all lots are developed and fully assessed, the project is projected to generate approximately $611,000 in annual TIF revenue and a total of approximately $12.3 million over the remaining life of the TIF district. Based on these projections, the developer is expected to reach the $3.5 million reimbursement cap within 7 to 9 years, depending on the pace of development and actual land-use.
- Sales Tax Benefit: The project is expected to begin generating sales tax revenue upon occupancy, which would accrue to the City’s General Fund and provide a more immediate fiscal benefit independent of the TIF reimbursement. The amount of sales tax generated is largely based on what businesses the developer is able to attract to the site. The proposed use that would generate the largest amount of sales tax is the car dealership. The City of St. Charles has 10 franchised car dealerships. In 2025, franchised car dealerships generated a total of $5,680,801 in City sales tax which averages approximately $568,000 in sales tax revenue per car dealership. At full build-out the developer is conservatively projecting $684,041 in sales tax annually. This number is largely determined by what car dealership is attracted to the site.
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