In March, a pushcart vendor began operating in downtown St. Charles selling hot dogs, polish sausage, chips, and an assortment of beverages.  The vendor, Mr. Jay Milano, owns the business Must Love Dogs, Inc. The company is family-owned and operated. In addition to his daily presence in St. Charles, Must Love Dogs is available for a variety of special events and parties. As an example, the company plans to operate at Lincoln Park during the Concerts in the Park sponsored by the St. Charles Park District.

Mr. Milano currently operates at a location along the river between City Hall and the Police Station (generally 11:30 am to 6 pm). He reports that business has been good, but is getting better as people become aware of his presence.

Any pushcart vendor must obtain a license from the City, as required by Section 12.04.103 of city ordinance. Pushcarts are currently restricted to specific locations. They are:

1. Freedom Trail from Municipal Center up to Pottawatomie Park property.
2. Path along the Fox River south of the Illinois Street Bridge to Langum Park.

In addition to the City license, the vendor must also have his/her equipment inspected and obtain a permit from the Kane County Health Department.

Mr. Milano currently sells hot dogs for $3, polish for $4, chips for $.75, and soft drinks that range from $1-$3.

I’ve enjoyed lunch from the pushcart. My son, John, says it’s one of the best hot dogs he’s ever had.

Having this vendor is a wonderful amenity for walkers, bicyclists, and visitors to downtown St. Charles. Give it a try!

Frequently, I get asked, “ Why can’t St. Charles get X to come to town?”

X might be a high-end steak house or an upscale apparel retailer or a big box that specializes in hunting/fishing/camping products.  Local residents see some of these stores opening in other nearby suburban areas and ask themselves, ”Why not St. Charles?”  

We all want the best in retail opportunities for the community and while there are many circumstances that impact retailer decision-making (the state of the economy being the most important), the answer to the question in most cases has to do with the amount of total purchasing power of the market area.

St. Charles is widely known as an affluent community with relatively high household incomes. This is an advantage for us. But, retailers don’t just look at household income. They also want to know how many households there are within a given distance or “drive time.” In short, wealthy consumers are good, but having more of them is better.

Here is some of the text from a response that St. Charles received from a retailer that analyzed our market (the details have been removed to protect the highly confidential and proprietary nature of the information related to this company’s market criteria):

To determine St. Charles’ relative strength in terms of actual buying power, the City’s Economic Development Department has conducted some comparative analyses between St. Charles and 6 other major commercial centers in the Chicagoland suburban area:

1. Yorktown Mall (Lombard),
2. Oak Brook Shopping Center,
3. The Arboretum (South Barrington),
4. Downtown Naperville,
5. Old Orchard (Skokie), and
6. Woodfield Mall (Schaumburg)

The analysis is predicated on market reach, as determined by fixed drive times – a frequent variable in retail location decisions. When considering median household income for persons residing within a 15-minute drive time, St. Charles (measured from the center of downtown) compares favorably to all 6 markets studied.  In short, St. Charles is an attractive location from this perspective.

However, a market’s median household income data represents only a part of the equation in determining its household buying power. That equation must also consider the total number of households (or customers) within the defined market.  When looking at these same markets, at 10, 15, and 20-minute drive times, in ALL cases, the St. Charles market buying power is vastly exceeded by the comparative commercial centers. By way of example, within a 15-minute drive time, the comparison centers range from 1.7 (The Arboretum) to 4.6 (Oakbrook) times the buying power of the St. Charles market.

The graph above portrays the above-described comparison between household buying power for the aforesaid market areas (excluding expenditures for transportation and housing).  The greater the reach, typically, the larger the delta between St. Charles and each of the other 6 markets.  Again, this is a function of surrounding land use patterns and the low concentration of residences. 

We love our natural areas and open space in Kane County. It makes for lower traffic volumes, greater recreational opportunities, and a more attractive place to live. However, it also removes land from the “market” and provides fewer opportunities for development. Other land uses, such as the DuPage Airport, golf courses, mega-churches, and large-lot residential development also impact the buying power of St. Charles.

Let me be clear – I am not saying that the wrong choices have been made with regards to land-use decisions. I am only saying that we must consider the impact of these decisions on the ability to attract commercial development (quality and quantity).

Additionally, current trends in housing starts, and the real estate market in general, do not bode well for any dramatic change in circumstances or a resulting increase in our local market buying power. 

While St. Charles compares favorably with other suburban retail markets in terms of household affluence, we lag in terms of total buying power due to a greatly reduced number of households/consumers. This serves as one of the primary reasons that some retailers will not consider the Tri-Cities area. It also serves as one of the primary challenges that St. Charles faces in attempting to attract some high-end retailers and restaurants to our community.

While more residences in the market area would increase our purchasing power, many other criteria are, and should be, considered as part of the decision-making process.

It is being reported that Governor Quinn’s proposed budget will call for a 30% reduction in income tax revenue for the City of St. Charles. If this is implemented, the City of St. Charles stands to lose approximately $800,000 in revenue.

Under the current formula, 10% of income tax revenue collected by the State of Illinois is deposited into the Local Government Distributive Fund or LGDF. That revenue is then distributed to cities, towns, and villages on a per capita (population) basis.  Under the current 10% formula, St. Charles receives approximately $3 million annually. It represents one of the largest sources of revenue for the City.

Under the revised formula, the $3 million would be reduced by 30% or $800,000. To give you a frame of reference, the City’s General Fund – the fund through which most City departments, including police, fire, and public works, are funded – totals approximately $40 million. The $800,000 reduction represents approximately 2% of the General Fund.

If this budget is implemented, the City will have serious decisions to make regarding programs and services. Unless additional revenue is obtained, there is little doubt that reductions will need to be made.

Please contact Governor Quinn and tell him that cities and villages are already sharing “the pain” and that the State of Illinois should not reduce shared income tax revenue.

Progress in bringing new stores and restaurants to St. Charles has accelerated in the past few months with many new establishments opening, or planning to open, in the First Street area. The developers of the project, 1st Street LLC, have recognized the need to be aggressive, and offer attractive and flexible leasing terms to businesses. Those efforts have paid off with leasing of retail space approaching 90%.  

The fantastic bakery Il Giardino del Dolce offers wonderful pastries and cookies (I love their coffee cakes). And, they offer delicious sandwiches and pizza slices at lunch. JP Jewelers is also located on 1st Street and the owner is a local resident who is well-known for his strong attention to the customer and providing quality products.   

The most recent addition is Wok n’ Fire restaurant. If you haven’t been there yet, I highly recommend it. And from the large number of people dining (or waiting to dine), I’d say I’m not alone. The Pan Asian cuisine is fantastic and the decor adds to the quality of the dining experience.  

Tenants that have signed leases and will open during 2010 include:   

• Prasino restaurant
• Ginger Root Hair Salon
• Boudoir French – a themed nail salon and day spa
• Jeans and a Cute Top Shop – women’s apparel (opening their 2nd store – the original location is in Wheaton)
• Brix Wine and Cheese
• Pizzeria Neo – a brick oven pizza restaurant

These tenants will contribute to the new energy in downtown St. Charles that has been spurred by existing tenants and other area businesses including Za Za Trattoria, Eddie Caruso salon, and Rx Cafe (in the former Knight’s Court space on Main Street).  

And, it has been recently announced that McNally’s Irish Pub will be moving to the 1st Street area by Memorial Day, 2010. Maurice McNally has purchased the former Miguel’s restaurant space at 109 W. Main Street and will be starting the renovation process soon.  

Main Street facade of the new McNally's

If you haven’t been to First Street recently, make it a priority. You can obtain quality products and services from top-notch businesses. And, you can park in the clean, safe, and convenient parking structure located in close proximity to all of these establishments.  

Come to 1st Street and see what you’re missing!

The subject of Charlestowne Mall comes up in many conversations that I have with people throughout the community. Whether you live downtown, on the east side, or on the west side, people are curious. So, let me share what we know.    

Charlestowne Mall on East Main Street in St. Charles

First, the mall property is part of an investment vehicle called a REMIC that pools commercial mortgages and then issues securities to investors. A company in Overland Park, Kansas services the Charlestowne REMIC and has been working to sell the property for several months.   

Second, the City has learned of two bona fide interests to purchase the property. One of these offers has resulted in an executed purchase contract. The contract is still open, with the buyer group continuing its due diligence. The City has been informed that a sales agreement appears to be in the works and that a closing could take place in a few weeks.   

Having said that, we know that things can happen to cause pending sales of this magnitude to go awry. For that reason, we must remain cautiously optimistic.   

The good news is that we have a very willing seller in this case. Further good news is that the City stands ready to assist both a prospective buyer and the seller to facilitate the sale and revitalization of this critical property.   

The unfortunate news is that while the negotiations continue, leases may expire without renewal and/or extension. As such, while stores continue to close, it is likely that, at least for the time being, the Charlestowne Mall occupancy rate will not get better and could very well worsen.   

If there is some silver lining to the otherwise cloudy forecast, we understand that Classic Cinemas and the 4 anchors (Kohls, Carsons, Sears and Von Maur) are more or less holding their own – within the context of an overall tough economy, of course – and the City has heard nothing about any of these five businesses having any current plans to vacate the mall.   

As soon as a sale is concluded, it will be in everyone’s best interest to make the transaction public – generating new interest and buzz. We also hope that plans for revitalization will soon follow.

The City of St. Charles is joining other cities and counties across the State of Illinois in calling for local government pension reform.

The cost of providing public safety pensions in Illinois is rapidly increasing. The Illinois Commission on Governmental Forecasting and Accountability has recently published a thorough analysis of the financial health of select municipal pension funds. For the new fiscal year beginning May 1, 2010, the City of St. Charles estimates that funds needed for pension funding will be $4.3 million, an increase of over 13% from the prior year.

In Illinois, the State of Illinois establishes benefits for the City’s pension programs, but the City of St. Charles is tasked with meeting the obligations. In other words, Springfield places the order, but St. Charles picks up the tab.

Even in the face of significant financial conditions, the legislature continues to consider enhanced pension benefits.

Without a more fair public safety pension system, Illinois municipalities will either cut the level of public safety and other essential services or increase taxes.

There needs to be fair and equitable changes to public safety pension systems. Working with all stakeholders, the goal is to develop a long term solution to the pension crisis that protects Illinois taxpayers and secures sustainable retirement benefits for our public safety employees.  As a result, the St. Charles City Council has endorsed the Pension Fairness Platform.

On March 3, 2010, the launch of the Coalition at the State Capitol garnered positive media coverage across the state.

To locate your legislators and let them know about how you feel about this issue, click here.