St. Charles Approves New PUDs, Kia Dealership Incentives, and Downtown Grant

On June 14, 2022, the St. Charles Planning & Development Committee met to review and approve several key development projects, incentive agreements, and downtown improvement initiatives. The meeting addressed Planned Unit Developments (PUDs), a sales tax sharing agreement with a new Kia dealership, and a facade improvement grant for Townhouse Books.

Omnibus Vote and Initial Approvals

The meeting began with a routine omnibus vote, which passed with the exception of Item 4a (Pride of Kane County PUD), removed for separate discussion. All other omnibus items were approved without further deliberation.

Pride of Kane County PUD Subdivision Plan

• The final subdivision plan for the Pride of Kane County PUD, originally approved in 2020, was reviewed for compliance with the preliminary plan and subdivision code.

• Staff confirmed the plan met all requirements.

• The committee approved the final subdivision plan despite two dissenting votes (2:23).

Physicians Immediate Care & Andy's Frozen Custard PUD

• The committee considered a preliminary PUD plan and special use permit for a combined Physicians Immediate Care center (4,000 sq ft) and Andy's Frozen Custard (2,000 sq ft) with a drive-through at 2600 East Main Street (2:32 - 4:54).

• The proposal involved demolishing an existing building, subdividing three parcels into two, and adhering to zoning and drive-through stacking requirements.

• Staff and the Planning Commission recommended conditional approval, requiring revisions such as enhanced landscaping, additional handicap spaces, and better integration with adjacent shopping centers.

• The applicant agreed to incorporate these comments, and the committee approved the PUD and special use.

Sales Tax Sharing Agreement with McGrath Kia Dealership

• A 20-year sales tax sharing agreement was presented for the new McGrath Kia dealership (5:05 - 23:13).

• Highlights of the agreement:

  • Kia dealership represents a $21 million investment with 60 new jobs.

  • Year-one projections: $44 million in sales and $375,000 in sales tax revenue.

  • Sales tax split: 75/25 (dealer/city) for first 3 years; 50/50 from year 4 onward.

  • Clawback provision ensures city recoups incentives if dealership ceases operations.

  • City secured easements for future electrical service and a gateway sign.

• Compared to the prior Honda agreement, the Kia deal provides faster revenue to the city with no upfront costs and represents new business attraction rather than retention.

• The committee approved the sales tax sharing agreement, supporting economic growth and job creation.

Facade Improvement Grant for Townhouse Books

• David Hunt requested a grant for exterior improvements at Townhouse Books (105 North Second Avenue) (23:36 - 24:34).

• Project included surface preparation, painting, and replacement of rotting boards, restoring architectural integrity.

• The Historic Commission recommended approval, praising the restoration of this "hidden jewel."

• Grant: $20,000 (50% of the $46,200 project cost).

• The committee approved the facade improvement grant, supporting downtown revitalization.

Action Items

• Applicants for Physicians Immediate Care & Andy’s Frozen Custard to incorporate staff and Planning Commission comments into revised plans.

Conclusion

The June 14 meeting demonstrates St. Charles’ continued commitment to thoughtful development, economic growth, and historic preservation. By approving new PUDs, facilitating incentives for a new Kia dealership, and funding downtown improvements, the committee is supporting business expansion while enhancing the city’s character and revenue base.