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AGENDA RECOMMENDATION |
Public Hearings 8.C.
City Council Regular Meeting
- Meeting Date:
- 09/08/2025
Agenda Item:
Ordinance amending Section 10-650 of the Mankato City Code to allow apartments as a conditional use in the B-3, Highway Business District and amending Section 10-659 to establish performance standards for the proposed ordinance amendment; by request of the City of Mankato.
Recommendation/Action(s):
Adoption of the attached ordinance.
Summary:
As part of the City of Mankato’s Strategic Plan and City Housing Needs Analysis, the Mankato Economic Development Authority has directed staff to refine the City’s development processes to better support community growth and address housing needs. This direction focuses on providing flexibility in the zoning ordinance by allowing high-density residential uses in the Highway Business District. Staff presented the concept at the August 11, 2025, Economic Development Authority (EDA) meeting and the EDA recommended drafting an ordinance to amend the code to allow for apartments in the B-3, Highway Business District.
Proposed Use Amendment
In the past three years, the City has reviewed nine Land Use Plan amendment applications for residential development. Five of these applications required changing the designation from commercial to residential, all of which were approved. The current process—requiring both a Land Use Plan amendment and a rezoning—adds four to five months to the development timeline, which can delay project readiness and increase costs.
The City’s Housing Needs Analysis recommends “Fast Track Permitting Programs” to reduce delays and costs in the development process. By adjusting land use and zoning approvals, the City can streamline reviews and reduce the zoning timeline to approximately 60 days, creating a more efficient and predictable process for housing projects.
Apartments are currently allowed in the Central Business District, Central Business District–Fringe, Community Business District, and Office Residential Districts, where mixed-use development is encouraged. At present, the B-3, Highway Business District, limits residential uses. The proposed amendment would add apartments as a conditional use within the B-3 District.
This amendment would reduce approval timelines and provide opportunities to infill vacant commercial properties, while maintaining Planning Commission and City Council oversight of individual projects. To ensure compatibility, the amendment would include requirements such as transitional yards, open space, restrictions on outdoor storage, screening of mechanical equipment, and conformance to commercial district design standards.
Proposed Use Amendment
In the past three years, the City has reviewed nine Land Use Plan amendment applications for residential development. Five of these applications required changing the designation from commercial to residential, all of which were approved. The current process—requiring both a Land Use Plan amendment and a rezoning—adds four to five months to the development timeline, which can delay project readiness and increase costs.
The City’s Housing Needs Analysis recommends “Fast Track Permitting Programs” to reduce delays and costs in the development process. By adjusting land use and zoning approvals, the City can streamline reviews and reduce the zoning timeline to approximately 60 days, creating a more efficient and predictable process for housing projects.
Apartments are currently allowed in the Central Business District, Central Business District–Fringe, Community Business District, and Office Residential Districts, where mixed-use development is encouraged. At present, the B-3, Highway Business District, limits residential uses. The proposed amendment would add apartments as a conditional use within the B-3 District.
This amendment would reduce approval timelines and provide opportunities to infill vacant commercial properties, while maintaining Planning Commission and City Council oversight of individual projects. To ensure compatibility, the amendment would include requirements such as transitional yards, open space, restrictions on outdoor storage, screening of mechanical equipment, and conformance to commercial district design standards.