BETHALTO — New villa homes will soon begin sprouting on former farmland at the east edge of Bethalto. And a few years from now, if all goes as planned, a new Our Lady Queen of Peace Catholic Church will be built across the street.

The two projects will be related by more than proximity. Money from the residential development will help build the new church, at an estimated cost of $7 million or more.

It's the first time the Springfield Catholic Diocese has developed land to finance new church construction, said Greg Fleck, associate director of finance, buildings, properties and cemeteries for the diocese. It encompasses 164 parishes in central Illinois and includes Madison County.

Fleck said the diocese has not historically been a land developer, but it seemed an ideal solution in Bethalto.

The community has been growing in recent years and so has membership of Our Lady Queen of Peace Parish. The existing church at 132 Butcher Street was built in 1947 and expanded in 1981. It seats about 450 for worship services.

"Some of our Masses have been standing-room only," said the Rev. Thomas Liebler, the pastor. He said the parish has about 1,000 families, and growth is expected to average 3 to 5 percent a year through the next five to 10 years.

Building a new, larger church was discussed for more than a decade but the key question had been how to raise the money to accommodate 800 to 1,000 worshipers.

Then three parishioners came up with a plan. The diocese owned a 58-acre tract it had purchased in the 1970s as a possible future church site. Why not develop homes on 28 acres of the land and use the proceeds to build a church — and later a school — on the remaining 30 acres?

The idea was proposed to then-Bishop George Lucas, and the diocese ultimately agreed.

The parish has entered into an exclusive agreement in which a local builder, Lepchenske Construction, would purchase 71 lots over a five-year period for construction of 142 connected villa homes. It will be called the Villas at Richland Estates.

The streets have been named Our Lady Queen of Peace Drive, Rosary Place, Lourdes Place and Fatima Drive.

Jerry Lepchenske, who has partnered in the project with his nephew Eric Lepchenske, said he thinks the eco-friendly villa homes will be well-received in a community that has seen substantial growth since Illinois Route 255 opened along its western border. He said he expects the first villas to be ready for occupancy before Christmas.

Lepchenske said the company will donate $2,000 to the church building fund for each villa it sells. Some subcontractors and suppliers will also make voluntary contributions, he said.

Eric Lepchenske said the 1,300- and 1,700-square-foot homes, with two or three-bedrooms, will be affordable and should appeal to first-time buyers, singles and empty-nesters. Prices will start at around $160,000. Cindy Pizzini and Bill Fisher of RE/MAX Integrity Realty Group will handle sales.

Parishioners continue planning for their new church. Liebler said parishioners have contributed about $1 million to the construction fund, a figure he called "fantastic."

He said the residential development is expected to raise more than $4 million. There should be enough money to start church construction in about three years, he figures.

LePique & Orme Architects Inc., of St. Charles, is working on the church design.