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Road projects, development agreement considered for Streets of Caledonia proposal

The location of the proposed Streets of Caledonia site in O’Fallon [City of O’Fallon graphic]

At the Nov. 14 O’Fallon City Council meeting, four bills sponsored by Ward 3 councilmembers Dale Kling and Nathan Bibb were discussed that collectively propose three road projects and a development agreement to support the construction of the new Streets of Caledonia development. The proposed site is located in southern O’Fallon, near the intersection of I-64 and Route DD.

City staff recommended the approval of all four bills. Additional readings and potential votes for final passage are slated to occur at the upcoming council meeting on Dec. 12.

Bill No. 7150 would approve O’Fallon entering into a cost-share agreement with the Missouri Highways and Transportation Commission for use of MODOT Cost Share Program funds for the Route DD project, which would provide for improvements on to Route DD from Technology Dr. to approximately 1,400 feet south of Caledonia Boulevard. Improvements would include additional straight and turn lanes at various intersections, a roundabout at the future intersection of Route DD and Dalriada Drive, and various sidewalks and walking paths. The total project cost would be $3,836,312, of which the state would provide $959,078 or about 25% of the total cost. The first reading was conducted for this bill.

Bill No. 7152 would approve O’Fallon entering into an agreement with St. Charles County for use of St. Charles County Transportation Sales Tax funds to fund the Highway DD Road Improvement Project. This is the same project described in Bill No. 7150 for a total cost of $3,836,312. This bill would provide $1,918,156 from the St. Charles County Road Board.  The first reading was conducted for this bill.

Bill No. 7153 would approve O’Fallon entering into an agreement with St. Charles County for use of St. Charles County Transportation Sales Tax funds to fund construction of a new roadway named Caledonia Parkway. The project would provide design and construction services to construct the new road from approximately Route DD to the I-64 Outer Road. Caledonia Parkway will be an arterial road consisting of up to five lanes that will function as an outer road connecting Route N and Route DD – therefore redirecting some of the traffic volume away from I-64, improve public safety and create better connectivity between cities. The total project cost would be $4,534,607 and would be partially funded by St. Charles County based on an 80/20 split, with the St. Charles County Road Board providing $3,627,686 to help fund the project through Transportation Sales Tax funds. At the request of city staff, this bill was tabled in order to complete a few more details. While an official date for a first reading of the bill is still to be determined, the city’s next council meeting is on Dec. 12.

Bill No. 7154 would approve the authorization and execution of a development agreement between the city of O’Fallon and DD Land Development, LLC. City staff has worked with representatives of Payne Family Homes for over a year and a half on plans for a large, mixed-use development located at Route DD and I-64, which is also known as the Streets of Caledonia development. The proposed development includes 159 acres of single-family homes and townhouses supported by 100 acres of site-prepared commercial property. The full 259-acre site was recently rezoned by the O’Fallon City Council at the request of the property owner to accommodate this major development.

This development agreement is intended to trigger significant and vital infrastructure investments funded by the developer, leveraging more than $6.4 million in capital improvements funded mostly from the Missouri Department of Transportation and the St. Charles County Road Board. The agreement would also establish the details, timeline, and performance measures that would allow O’Fallon to share a portion of its sales tax and transient guest tax revenues earned within the project site to cover a portion of the costs for public infrastructure improvements. Those revenues would be generated by new retail activity and hotel room stays within the 100 acres of site-prepared commercial property and a contiguous future hotel site.

This agreement also would allow the commercial property owner to establish in the future a Community Improvement District [CID] for the 100-acre commercial site.  At the last-minute request of city staff, Bill No. 7154 was tabled in order to complete a few more details. A date for the first reading of the bill has not officially been determined, the city’s new council meeting is on Dec. 12.

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