For candidates running for five City Council offices in St. Charles, on the western outskirts of Chicago, redeveloping the burned down Pheasant Run Resort & Spa is top priority.
Each of the nine candidates vying for five ward seats say public dollars must help revamp the 8-acre resort at 4051 East Main Street, Shaw Local reported. The question is: how many and what type of financial instrument should be used?
The majority of the costs would have to be covered by the developer, officials said, though the city would be able to chip in to limit costs through the incentives.
Some candidates for City Hall, however, said it was important St. Charles isn’t stuck with the tab. They advocated for what’s known as a “pay-as-you-go” tax increment financing structure, meaning the local government would pay back the developer for certain costs, rather than issue bonds to assist with the redevelopment and use tax revenues to pay them back later.
Pheasant Run closed in March 2020 after a failed attempt to auction the property that contains a 473-room hotel, theater and spa. Early last year, a large swath of the shuttered resort was destroyed by fire. Four teens were charged in connection with the blaze.
Last month, two boys pleaded guilty to felony arson for starting the fire in the city 40 miles west of Chicago. Two other boys pleaded guilty to misdemeanor trespassing.
The St. Charles City Council last month unanimously voted to create a tax increment financing district to spur the redevelopment of Pheasant Run. Such tax districts siphon property tax revenues away from money that can go to schools and other resources.
The new district will freeze the resort’s assessed property tax value. New or increased taxes generated by any improvements will then be used to finance upgrades or development incentives.
A redevelopment plan filed in August by Kane, McKenna and Associates estimated the scorched resort would cost more than $42.6 million to redevelop the property, which has been designated for light industrial, retail and commercial use.
The price tag includes $16.5 million for demolition, site preparation and environmental cleanup; $3 million for infrastructure improvements and $9 million for land acquisition.
McGrath Honda of St. Charles has redeveloped the former Pheasant Run Mega Center next to the property. Industrial buildings are planned along the former Pheasant Run Resort golf course.
Tom Galante, one of three candidates for the 1st Ward, which includes the resort, said the redevelopment of the former Pheasant Run property is a “critical project” for the district.
“I’m open to attractive, resilient businesses to fit the current zoning,” Galante told Shaw Local. “Mixed use and development that can use the existing tower would be interesting as well.”
Jessica Bridges, another candidate vying for the seat, said she was happy to see McGrath Honda redevelop the former Pheasant Run Mega Center. But she said more needs to be done.
“The former large hotel building, recently destroyed by a fire, is not only an eyesore but also dangerous,” Jessica Bridges said. “Since the TIF was approved, we need people on the City Council who will make sure the costs of the TIF are recovered from the redevelopment when the work is completed.”
— Dana Bartholomew
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