Ordinance Granting Approval of a Special Use for Planned Unit Development and PUD Preliminary Plan for The Shops at Pheasant Run.   

Committee recommended approval of this item at the Sept. 21, 2026 meeting. The vote was 6-3. The Ordinance approving the Special Use for PUD and PUD Preliminary Plan are now up for Council vote. 

Section 7 has been added to the PUD ordinance regarding the Redevelopment Agreement. This section states that in the event the City and Developer cannot mutually agree and approve a Redevelopment Agreement within 45 days of approval of the ordinance, the developer can request the PUD ordinance be vacated by the City. The request would need to be submitted by the developer within 45 days after the expiration of the initial 45 day period.

The information below was provided at the Sept 21, 2026 Committee meeting:

The following modifications were made to the PUD Ordinance after the August 17th Committee meeting:

• Drive-Through Facilities: 6 as Permitted Uses
  • 6 Permitted on Lots 1-6, 11-13
    • Includes 5 Drive-Throughs shown on the PUD Preliminary Plans, plus 1 additional
    • Any additional Drive-Throughs on these lots are subject to future Special Use review.
  • Lots 7-10 at the center of the site will be reserved for non-drive through use for a period of 30 months following PUD approval. This is intended to provide time for the developer to pursue non-drive-through uses, such as a grocery store, fitness center, or entertainment uses.

• Car Wash: Eliminated as a Permitted Use
  • Prohibited on the Lots 1-10 
  • Can be requested as a Special Use on Lots 11-13, subject to future Special Use review.

• Car Dealership- Lot 14: Reserved for Car Dealership use for 5 years.
  • Lot can be used for dealership inventory in the interim.
  • Option to request the City Council lift the use restriction for a specific project after 3 years.
  • If proposed as a Gas Station in the future, limited to no more than 3 truck fueling positions at the rear of the lot, no truck parking, no truck stop facilities of any kind.

Incentive Request

The incentive request is not under consideration. However, the developer has agreed to a maximum TIF reimbursement of $3.5 million.  If the PUD is approved, a Redevelopment Agreement (RDA) would be prepared and presented separately to the Committee for consideration.

Background Information:

The subject property is the remaining 33.7-acres of the former Pheasant Run Resort property, located at the SE corner of E Main Street & Kautz Road. Applications requesting a Special Use for Planned Unit Development (PUD) and PUD Preliminary Plan under the existing BR-Regional Business zoning classification have been submitted by Vequity, as developer, and their property owner entity, SC Landman. A Concept Plan similar to this proposal was reviewed in December 2025. Details of the project:

• 14-lot commercial subdivision with a single building on each lot.
• Preliminary development plans for subdivision improvements (stormwater detention, private drives, common landscaping, development signage)
• Preliminary Development plans for 6 lots; including Chase Bank, Dutch Bros Coffee, Valvoline, 2 multi-tenant buildings intended for quick service restaurants
• Full site access off Kautz Rd., two right-in/right-out driveways off E Main St., driveway off Pheasant Run Dr.
• Outlot containing stormwater detention and private east-west drive south of the building lots.
• Pedestrian infrastructure along Main Street, Kautz Road, and internal to the site.
• Deviations from specific zoning and subdivision standards - as updated in the PUD ordinance.

Note: Development of the remaining lots will require future City approval of Preliminary Plans.

Plan Commission Review – Plan Commission held a public hearing on 7/21/26. No members of the public spoke at the public hearing or provided written comment. Plan Commission recommended approval by a vote of 6-3, subject to the following conditions which are incorporated into the approval Ordinance:

• No foundation landscaping deviations for the remaining lots (Lots 2, 7-10, 12-13; excluding Lot 14).
• Drive-Through Facility on Lot 14 to require Special Use approval (if not developed as a car dealership).
• City reserves the right to request an updated traffic study if drive-through facilities are proposed in excess of what was accounted for in the traffic study.

Plan Commission also directed the applicant to work with staff to address the following comments:

• Improve pedestrian connectivity from the buildings to The Shops Drive sidewalk.
• Ensure proper grading along Rt 64 in relation to landscaping.
• Add trees along the southern rim of the detention basin.
• Improve pedestrian experience along The Shops Drive by providing consistent tree spacing and shifting the eastern pedestrian seating area closer to the pond.
• Modify elevations of the multi-tenant buildings to add additional façade articulation.
• Provide more space between Buildings 3 and 4 for the plaza area and restaurant seating. Add façade articulation along the building walls on either side of the plaza.  

The applicant has provided a revised Overall Landscape Plan that addresses the Plan Commission’s comments regarding internal pedestrian connectivity and landscaping along The Shops Drive and in the detention area. Revised building elevations for Lots 3 and 4 have also been submitted, depicting additional front and plaza-side façade articulation.

Incentive Request – Vequity is requesting tax increment financing (TIF) assistance for the project. The site is located within the Pheasant Run TIF District. A formal redevelopment agreement is not yet under consideration. However, the Committee is encouraged to share whether they support continuing negotiations on a potential incentive package for the project.

Based on the existing condition of the property, it has been anticipated that a financial incentive would likely be necessary to attract private redevelopment to the site. The property presents redevelopment challenges more consistent with a brownfield or previously disturbed site than a typical greenfield commercial development. These challenges include environmental conditions, unsuitable soils and subgrade conditions, and significant earthwork needs. Vequity is requesting TIF reimbursement to help offset these extraordinary redevelopment costs and improve the financial feasibility of the project.

Several other important factors to note:

• Pay-as-you-go structure: The developer has agreed to a pay-as-you-go reimbursement model. Under this approach, the City would not front project costs or issue debt to fund the incentive.
• Reimbursement source: Because the project is located within a TIF District, any reimbursement would be paid from incremental property tax revenue generated by the redevelopment itself, not from existing City funds.
• Maximum reimbursement amount: Any approved reimbursement would be capped at the agreed-upon amount. The developer would be required to document actual costs before reimbursement is made.
• Eligible cost verification: Reimbursement would be limited to qualifying TIF-eligible redevelopment costs, including documented environmental remediation, site preparation, utility restoration, and related extraordinary site work.
• TIF generation: At full buildout in 2031, the project is expected to generate approximately $611,000 in TIF revenue and approximately $12,326,400 over the remaining life of the TIF district.
• 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.

At this stage, staff is primary seeking Committee feedback on whether there is support for the project from the land-use prospective, however the level of support for the TIF reimbursement is important for the developer in deciding whether to move forward with the project.

Motion: Approve