Caledonia has approved its first mixed-use zoning ordinance, establishing rules for developments that combine housing and retail. The Kmart property at 5141 Douglas Avenue has been discussed as a possible fit, but no project has been proposed there.
The new district allows developments on sites of at least five acres to rise up to 45 feet, with at least 20% of the land set aside as open space. It permits 16 to 25 residential units per acre alongside retail, office, or restaurant space, according to TMJ4 News.
Mixed-use development was included in Caledonia's 2009 comprehensive plan, but the village did not have a zoning path for combined housing-and-commercial projects until this year's ordinance, per TMJ4.
A zoning framework, not a project proposal
Village trustees discussed the district on September 16, 2026. The Kmart property has been mentioned as a possible fit, but the zoning change does not mean a development is planned there.
The Kmart building at 5141 Douglas Avenue is listed at 86,476 square feet. A LoopNet listing gives its area as 86,476 square feet. The site remains part of the Green Tree Centre commercial plaza, which also includes Caledonia's only Pick 'n Save at Highway 32 and 4 Mile Road, per Crexi.
Village Development Director Peter Wagner told TMJ4 the location could suit mixed-use development amid demand for smaller commercial sites paired with housing. He said no project is currently being considered for the property. The station reported that the owner would need to request a land-use amendment and rezoning because the parcel is not currently zoned for mixed use.
Residents' priorities for new development
Brenda Jackson told TMJ4 she would support mixed-use development if it brings retail shops and restaurants to Caledonia, citing Oak Creek as a comparison.
Becky Fick also told the outlet that Caledonia needs more retail options, particularly clothing stores.
What access data can—and cannot—show
The USDA Economic Research Service's Food Access Research Atlas measures food access by census tract and distance to SNAP-authorized or large food retailers; it does not measure access to other retail categories, such as clothing stores.
Population context
The Southeastern Wisconsin Regional Planning Commission's 2020 Census profile lists Caledonia's population at 25,361. That figure alone does not answer how the village's housing stock or growth compares with Racine County.
Brenda Jackson cited Oak Creek as a comparison for the retail and restaurant options she would like to see in Caledonia.
Residents Call for More Retail
Residents have called for more retail options in Caledonia, including clothing stores.
What Happens Next
Village officials are collecting resident input as part of a broader comprehensive-plan update. Residents can respond to the village's visioning survey through October 21, per TMJ4. Even with the new zoning framework in place, a project at the Kmart site would still require a land-use amendment and rezoning before it could be considered.
