St. Charles Expands Outdoor Dining, Approves Major Industrial Development Deal

Omer Farooq
Sep 10
3 min read

Introduction

The St. Charles Planning & Development Committee met on March 11, 2025, to discuss major updates shaping the future of downtown and industrial development in the city. Key topics included enhanced outdoor dining plans for First Street Plaza, updated regulations and fee structures, and a highly anticipated Redevelopment Agreement (RDA) for the Phant Run Industrial Development. The 50-minute meeting showcased St. Charles’ dual focus on improving its community spaces and driving large-scale economic growth.

Outdoor Dining Plans and Fees for 2025

Expansion of Dining Space

The committee approved a significant expansion of outdoor dining in First Street Plaza, increasing space from 8,000 to over 9,000 square feet for the Summer 2025 season. The plan includes a new 9-foot opening in the barrier wall to enhance pedestrian flow and better serve popular restaurants like MC’s and GMIA.

Members also discussed:

Installing a permanent ADA-compliant ramp.
Adding temporary bollards for pedestrian safety.

New Design Standards

To improve aesthetics and safety, the committee approved updated outdoor dining standards, including:

Rules for planters, with a prohibition on dumping their contents in city landscaping.
Approval of sofas (up to 12 seats per business).
Guidelines for smokeless or artificial fire pits.
A new $2,000 security deposit, refundable at season’s end, to cover damages like furniture rust stains or unauthorized landscaping changes.

Updated Permit Fees

For 2025, businesses will pay:

$20 per seat (per 100-day season).
A $250 application fee.
A $2,000 security deposit.

While some suggested raising the per-seat fee to $25 to align with market rates, the committee opted for the staff’s original recommendation. Members also discussed dedicating revenue from these fees toward plaza maintenance and downtown security.

Phant Run Industrial Development: A $136M Economic Engine

Project Overview

The second half of the meeting focused on the Phant Run Industrial Development in the city’s TIF district—a transformative project spanning 84 acres with 1.1 million square feet of industrial space across four buildings. Key highlights include:

A $136 million investment and 500-1,500 projected jobs.
Tenants such as Cross Distribution and Sai Advanced Power Solutions, with Sai planning to bring 250 high-paying jobs.
Over $5 million in sales tax revenue generated in 2024 from district car dealerships (Honda and Kia).

Redevelopment Agreement (RDA) Terms

The approved RDA features a “pay-as-you-go” TIF rebate to the developer, capped at $10.925 million. Additional details:

Initial TIF increment split: 50-50 until the city recovers $720,000 in infrastructure investments.
After repayment, the split shifts to 90-10 in favor of the developer.
The developer’s investment could be fully reimbursed in ~9 years, after which the city is projected to collect $2 million annually.
No city-issued bonds are required.

Infrastructure challenges, particularly electric service upgrades ($11.5M), were resolved through earlier agreements, with the developer fronting $5.6M. The city is also supporting annexation efforts with West Chicago to improve site access.

Key Takeaways

Outdoor Dining Boost: Expanded seating and new design standards aim to enhance downtown vibrancy while balancing safety and aesthetics.
Higher Accountability for Businesses: Security deposits and stricter guidelines address past plaza maintenance issues.
Economic Growth Prioritized: The Phant Run Industrial Development positions St. Charles as a regional industrial hub, with no additional taxpayer burden through bonds.
Long-Term Revenue Impact: Once reimbursed, TIF funds are expected to generate $2M annually for city projects and services.

Conclusion

The March 11, 2025, Planning & Development Committee meeting marked a milestone in St. Charles’ ongoing efforts to revitalize downtown and fuel economic growth. The approval of expanded outdoor dining and enhanced regulations signals a vibrant summer season ahead, while the Phant Run Industrial Development promises to bring jobs, infrastructure investment, and millions in tax revenue. Together, these initiatives reinforce St. Charles’ reputation as a forward-thinking city that prioritizes both community experience and economic sustainability.