Work is underway on the construction of two new neighbourhoods in Calgary, east of Stoney Trail, called Hollins and Halstead — north and northeast of the East Hills shopping area on the east side of Stoney Trail.

Developers broke ground on the 54-hectare (133 acres) project on Friday.

The plans call for a mix of retail and housing — single-family homes along with semi detached multi-family townhomes, offering enough housing for 4,100 people. The developers say they hope to see people start moving in by the middle of next year.

Another key part of the project is the extension of Memorial Drive which currently ends just east of 68 Street Northeast in the communities of Abbeydale and Applewood Park.

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The plan is for a four-lane extension of Memorial Drive over Stoney Trail and the Rotary Mattamy Greenway, east to 84 Street Northeast, connecting the new communities in the east with the rest of Calgary.

The city describes it as “closing a critical gap in Calgary’s east-west transportation network.”

Construction began in early August with initial roadwork and the installation of underground utilities and is expected to be completed by the end of 2028.

The estimated cost of the project is $105 million.