St. Charles OKs Shops at Pheasant Run plan and a $3.5 million TIF deal

The last undeveloped piece of the old Pheasant Run resort on St. Charles' east side now has both City Council approvals its developer sought this fall.

On Nov. 2, the council approved a tax increment financing agreement that reimburses the developer up to $3.5 million, the Chicago Tribune reported. The vote was 6-4, with Aldermen Ronald Silkaitis, Mark Foulkes, Ryan Bongard and Jayme Muenz voting no. The resolution was on the council's Nov. 2 agenda; the city had not posted minutes of that meeting as of Nov. 9.

On Oct. 5, the St. Charles City Council approved the planned unit development and preliminary plan for The Shops at Pheasant Run, a commercial project on 33.7 acres at the southeast corner of East Main Street and Kautz Road, addressed as 4051 E. Main St. The vote was 6-3, with Aldermen Jayme Muenz, Ronald Silkaitis and Ryan Bongard voting no, according to the Aurora Beacon-News.

What is planned

The developer is SC Landman LLC, the property owner entity of Chicago-based Vequity. City documents describe the project this way:

• 14 commercial lots for retail, restaurant and service uses, with one building per lot.
• Preliminary plans for six lots so far, including Chase Bank, Dutch Bros Coffee, Valvoline and three multi-tenant commercial buildings. The other lots will need their own city approval later.
• Lot 14 is reserved for a car dealership for five years. It can hold dealership inventory in the meantime, and the council could lift the restriction for a specific project after three years.
• Lots 7 through 10, in the center of the site, are held for non-drive-through uses for 30 months. The city says the goal is to give the developer time to land tenants such as a grocery store, fitness center or entertainment venue.
• Car washes are not allowed on Lots 1 through 10 and would need special use approval on Lots 11 through 13.
• No more than six drive-throughs. Any more would need separate special use approval.

The city estimates the project at no less than a $70 million investment.

The $3.5 million incentive

The site sits in the Pheasant Run TIF district. The developer asked for up to $3.5 million in tax increment financing to cover costs tied to the site's condition, and the plan approval carries a condition: if the city and developer cannot agree on a redevelopment agreement within 45 days, the developer can ask the city to vacate the approval.

On Oct. 19, the council's Committee of the Whole voted 5-3 to recommend the agreement, Tri-Cities Central reported. Under the terms in the city's Oct. 19 memo:

• The developer pays property taxes as usual. Each year it gets back 90% of the new tax revenue the project generates, and the city keeps 10% in the TIF fund.
• Payments stop at a firm $3.5 million cap. After that, the city keeps all of the increment for the rest of the TIF district's life.
• Reimbursement is pay-as-you-go. The city does not front costs or issue debt, and no General Fund money is used.
• Only documented costs count, such as site prep and earthwork, clearing and tree removal, environmental work, rebuilding retention ponds and raising power lines.

City staff project about $611,000 a year in TIF revenue once the site is fully built out, expected in 2031, and about $12.3 million over the rest of the district's life. The developer is expected to hit the cap in seven to nine years. The developer separately projects $684,041 a year in sales tax at full build-out. The city notes that figure depends largely on which car dealership comes to the site.

How we got here

Pheasant Run closed in 2020. A 2022 fire heavily damaged the resort, and the remaining buildings were later demolished, according to the Beacon-News. Other parts of the old property have since become car dealerships and an industrial park.

A concept plan came to the city in December 2025. The Plan Commission held a public hearing July 21, 2026, and recommended approval with conditions. Aldermen turned down a modified plan in August, then a revised plan won a committee recommendation in September.

What's next

With the redevelopment agreement approved, the lots that don't have plans yet still need their own city approval. Construction is expected to begin in 2027, according to Tri-Cities Central. Project documents, including the site plan and traffic study, are posted on the city's project page.