ST. CHARLES – The financially-strapped Pheasant Run Resort is now on the auction block.
An online auction for the 56-year-old resort is set to take place from Jan. 27-29, according to the website ten-x.com. Bidding starts at $2 million.
Colliers International real estate services and investment management company had previously listed Pheasant Run as being for sale on its website. During the recession in 2011, the 293-room resort at 4051 E. Main St. went into foreclosure. A hotel investors group in 2014 bought Pheasant Run, which since then has been managed by Schaumburg-based Hostmark Hospitality Group.
The city had received a letter from Hostmark Hospitality Group about Pheasant Run's proposal to restructure, which includes a plan to lay off 149 of the resort's 190 employees by mid-January.
Pheasant Run Resort generates between $500,000 and $600,000 in tax revenues for the city, St. Charles City Administrator Mark Koenen had previously said. City officials are concerned about the loss of revenues if Pheasant Run closed.
"There would be a big hole in the budget," St. Charles Mayor Ray Rogina said. "You would have to find something to close that hole."
Rogina said the city wants to work with the resort's current owner or "any developer that comes in there to retool or restructure the property."
He noted that across the street from Pheasant Run, Fox Valley Volkswagen in recent years moved to the site of the former DuPage Expo Center.
"It was a very nice conversion," Rogina said.
In 2016, the DuPage Airport Authority filed a lawsuit to acquire the resort through eminent domain. The airport authority later reached an agreement with the ownership of Pheasant Run.
The airport authority filed the lawsuit over its concerns about potential residential development on the resort’s golf course, which abuts the DuPage Airport, according to the release. Pheasant Run is directly north of DuPage Airport.
Under the agreement, the airport authority will not seek to acquire the resort or the adjoining frontage parcels along East Main Street. A news release at the time indicated the airport authority will only acquire part of the golf course behind the resort and adjacent to the airport.
Edward McArdle opened Pheasant Run Resort in February 1963 on land that was previously a dairy farm owned by Colonel Edward Baker.