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📸 Credit: St. Charles project document
The St. Charles Committee of the Whole voted 5-3 on Oct. 19 to recommend a TIF agreement for the Shops at Pheasant Run.
The incentive deal would reimburse the developer up to $3.5 million for cleanup and site prep costs. The money would come from new property tax revenue generated by the project, not from the city’s general budget.
Here’s what to know:
How the deal works: The site sits in a TIF (tax increment financing) district. In a TIF, growth in property taxes goes into a special city fund for redevelopment costs. In this case, the developer would pay its property taxes as usual, then get back 90% of the new tax money the project generates each year until it reaches the $3.5 million cap. The city won’t front costs or issue debt.
What the agreement covers: Only documented costs associated with the site’s condition and preparation qualify. Eligible costs include site prep, clearing, environmental work, and reconstruction of retention ponds.
Project overview: The 33-acre site at E. Main Street and Kautz Road is divided into 14 commercial lots. Plans so far show Chase Bank, Valvoline, Dutch Bros, and three multi-tenant commercial buildings. Another lot is reserved for a car dealership. Construction is expected to begin in 2027.
Taxes and revenue: Staff projects about $611,000 a year in new property tax revenue once the site is fully built. City documents show that the developer is estimated to hit its cap in seven to nine years, and after that, the city keeps all of the new tax money in the TIF fund. The developer also projects $684,041 a year in sales tax once it’s fully built out (anticipated in 2031).
The full City Council is expected to take a final vote on Nov. 2. When the council approved the project’s site plan on Oct. 5, the developer added a condition that the approval is void if the incentive deal isn’t finalized within 45 days.
Read more about the project in this city agenda document.
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