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Work has started on a new development on the east side of Paynesville, east of Morningside Avenue.

The new development will create 10 new lots, and it will extend South Street to the east and connect with a new street, to be called Maywood Avenue, which will intersect with Highway 23 just east of the Paynesville Greenhouse.

Work is expected to be done on the new street and city utilities for the new development by the end of July.

The new exit to Highway 23 should come in handy for residents in that area when Lake Avenue (Highway 124) is rebuilt later this summer. The new exit is necessary because the city plans to rebuild South Street in its 2004 Street Project.