A consortium involving Myer and Colonial First State applied for exemption from the City of Melbourne Heritage Overlay to widen the lane by 4 metres to improve access for delivery trucks and in the process demolish the Art Deco Lonsdale House in 2009.
[1] Permission was granted by both the City of Melbourne and the State planning minister Justin Madden MP on 24 July 2009 under controversial circumstances.
[2] In response to the demolition for the sake of lane widening, a preservation group called Save Lonsdale House formed in late 2009.
Until 2004, Caledonian Lane was home to a number of small independent store owners, however the buildings were sold under vacant possession in 2007.
The lane is bitumen with a small strip blue stone cobbled gutter, has street lighting attached to Lonsdale House and is by both pedestrian and vehicular traffic, mainly delivery trucks.