I am more used to hearing the expression as ‘katey-corner’, so I Googled that and found the following from someone in Minneapolis:

“I watched a guy sitting kiddie-corner to me (that's katey-corner to you southerners - I didn't misspell it; that's what we call it here).”

That was the only link I could find, which surprised me. Any comments from all y'all southerners or Minneapolites?