Residential part of $400 million development at Interstate 64 and DD to move forward

Site of Proposed Streets of Caledonia

The first part of a $400 million commercial/residential development at Interstate 64 and Highway DD in O’Fallon will go before the city’s planning and zoning commission at their December meeting.

The Streets of Caledonia will eventually encompass 260 plus acres at Interstate 64 and Highway DD. According to an announcement in the O’Fallon Economic Development Department’s latest newsletter, Payne Family Homes has earmarked half of the site for commercial development, with a grocery store, retail offerings, office space, medical buildings, and a hotel. It would also feature high-end multi-dwelling units.

The other half of the development, further south, would consist of 400 to 500 single-family homes, and is the first part of the development to move forward, said Patrick McKeehan, economic development director for the City of O’Fallon.

“It’s in the preliminary stages,” McKeehan said. “The developer is wanting to move forward on the residential part first.”

McKeehan said that about 38 acres of the development is on the same side of Highway DD as the Regal Theater and the new soccer facility on Caledonia Drive. The remainder is across Highway DD.