CY36-26 tabled at August 26, 2026 PC meeting

Request of Bolton and Menk, on behalf of Kody Schendel of New Hope Board and Lodge and KD2 Properties, LLC, for an amended conditional use permit to allow a building addition and an operational expansion; and for a variance to decrease the rear yard from 66’ to 11.2’ in the R-3, Limited Multiple Family Dwelling District.  The variance is being requested in order to allow for a building addition. The property is described as Lots 6, 7, 8 and the westerly half of Lot 9, Block 16 of Mankato City, Blue Earth County (1429 3rd Avenue).     

The anticipated date of City Council action is October 13, 2026. 

The applicant is Bolton and Menk, on behalf of the property owner, Kody Schendel. 

The applicant is requesting a conditional use permit to construct and operate a 16-unit congregate micro-apartment addition; and for a variance to decrease the rear yard from 66’ to 25' in the R-3, Limited Multiple Family Dwelling District.  

The variance is being requested in order to allow for an approximately 52.5' X 60' building addition.
 

The address for the property is 1429 3rd Ave. 

The property is the location of New Hope Board and Lodge, formally House of Hope. 

The property is zoned R-3, Limited Multiple Dwelling District. 

There are no known environmentally sensitive areas on the site. 

The property is currently served by public utilities. 

The City Code pertaining to the R-3, Limited Multiple Dwelling District may be viewed at the following link. 

https://library.municode.com/mn/mankato/codes/code_of_ordinances?nodeId=PTIICOOR_CH10LAUSDE_ARTIIREDI_DIV5LIMUDWDI

The Site Plan and Traffic Review Committee met on August 11, 2026 and submitted the following comments: 
 

1. The applicants shall evaluate the need for upgraded/additional sewer and water services to the property to support the new building addition as soon as possible.  3rd Avenue is being reconstructed currently; late summer/early fall would be an opportune time to upgrade utilities if needed. Applicant: Owner to have a plumber review the existing service connection to the building. If required, he will work with City Staff to get the new services installed during the construction of 3rd Avenue. This step will move forward after review and approval of the project.
2. The applicants will be required to pay SAC & WAC connection charges based on the City of Mankato assessment policy and fee schedule. Applicant - Noted. 
3. The applicants shall be aware that the building is located within the FlexZone, which requires advanced scheduling for curb-to-curb service. The nearest Route 10 bus stop is approximately 0.75 miles away on foot. Applicant - Noted.
4. The applicant shall meet all parking requirements for residents and staffing based on the calculations in Mankato City Code Chapter 10. Applicant - The current use of the property is congregate housing which requires one-half space per doweling unit. The building currently has 18 rooms with an additional 16 rooms being proposed (total of 34). The required stalls for the current and proposed stalls would be 17 stalls, plus the number of employees on the major shift. The current employees on the major shift are as follows: two staff members plus 2 caterers during dining time. So, in conclusion, the required stalls would be 17 for the units plus 4 for staff totaling 21. Most of the current individuals that live in the building do not have their own vehicle and depend on public transportation. The owner plans to work with the City Staff to coordinate access to public transportation. 
5. Applicant shall license the facility through the State of Minnesota and coordinate all necessary services through Blue Earth County. Applicant - Noted. 

The Site Plan and Traffic Review Committee met on September 8,  2026 and submitted the following comments:

1. If not already complete, the applicant shall log in to the online portal and make notice fee payments. As a result of the tabling at the request of the applicant, a second set of notices were sent and the invoice fee is reflective of as much. Applicant – Noted. Payments have been made.
2. Applicants shall evaluate the need for upgraded/additional sewer and water services to the property to support the new building addition as soon as possible.  3rd Avenue is being reconstructed currently; late summer/early fall would be an opportune time to upgrade utilities if needed.  Applicants acknowledged this comment from prior site plan meeting and shall follow up with Construction Services when evaluation of existing sewer and water services are complete. Applicant – Noted. Upon approval we will work on reviewing the any needed utility connection.
3. Applicants will be required to pay SAC & WAC connection charges based on the City of Mankato assessment policy and fee schedule. Applicant – Noted. We will work with staff to understand the connection fees.
4. Applicant shall confirm employees and staffing proposed for the site. In the parking analysis 4 staff are referenced. Please confirm the staffing, visitors, and how the food service will be handled. In sum, the total parking needed to serve the site is necessary for a complete evaluation. The previous House of Hope approval indicated that 10 employees were needed for that operation. Applicant – Staffing will be as follows: 2 onsite staff, 2 onsite food service staff. Visitors will be able to use any open spaces in the parking lot (no overnight parking will be allowed). If no space is available in the parking lot, they will need to park on the public street and follow the city code (no overnight parking will be recommended).
5. As with the previous approval, it was noted as a condition of approval, “The city may require additional parking if the use exceeds what is required.” What is the applicant’s parking plan if the parking demand exceeds the supply? Applicant – Ownership will work with their residents to manage parking needs and also limit parking as needed.  Ownership will continue to look for appropriate off-site parking options if the need arises. Again, most residents don’t have their own vehicles, and they rely on public transit or other transportation options.
6. Applicant shall confirm that this is the only business operating at this location (i.e. separate catering services, separate business operational functions, etc.) that are occurring at the subject site. Applicant – The primary operation at the subject site is the board and lodge. There is an existing commercial kitchen on the premises which is operated by Truffles Catering. Their presence onsite is strictly limited to the following functions: 1. Preparing meals for the residents of the board and lodge during the week. 2. Preparing meals for their partnership with “Meals on Wheels”, churches and other local programs on a meal delivery basis.  We maintain this separation of operations strictly for safety and compliance. Residents are not permitted in the commercial kitchen. Truffles Catering holds a current state food license, ensuring the kitchen is managed safely by professionals. They do not operate a public-facing restaurant from this location."
7. The applicant shall update the site plan to confirm that the proposed parking stall size achieves the City of Mankato engineering parking plates. All stalls shall achieve the Code standards. Applicant – The current plan conforms with City Code. Stall sizes are all 9’ x 19’.
8. Applicant shall provide a copy of the current license for the subject property including the state licensing provision that the proposed expansion will operate under.  Applicant – See attached pdf. A License has been provided to City Staff. 
9. The landscaping shall be reviewed to ensure that it achieves the Code standards. This was also a condition of the original approval. Applicant – Noted. Final Plans will conform with City Code. Plans to be provide at the time of permitting.
10. The applicant shall clarify how and who will prepare the meals/food and how they are served to the residents. Will food be delivered, what is the frequency, and is parking accounted for this service? Applicant – "All resident meals are prepared onsite in the facility’s commercial kitchen by Truffles Catering, a state-licensed food service provider. For the safety of our residents, they are not allowed inside the commercial kitchen; all food preparation is handled exclusively by these professionals. Meals are served to residents throughout the week directly from the kitchen, eliminating the need for external food delivery services. Truffles Catering also uses the kitchen to prepare meals for the local Meals on Wheels program. Onsite parking is accounted for to support the catering staff, their supply deliveries, and the Meals on Wheels program logistics."  
11. All exterior lighting shall conform to Mankato City Code requirements. Applicant – Noted. Final Plans will conform with the City Code. Plans are to be provided at the time of permitting.
12. Clarify who the clients at the facility will be. The original condition of approval stated, “Clients from the Department of Corrections that are not classified as chemically dependent shall be limited to only those individuals’ serving sentences for property crimes such as theft or damage to property. Individuals convicted of crimes against a person (such as homicide, assault, robbery or sex crimes) shall not be allowed in the facility, unless classified as chemically dependent and participating in the residential treatment program. The Council reserves the right to review the correctional component of the facility in the future. The Council may allow additional classes of supervised release inmates at the facility or further limit the types of supervised release inmates. The decision to expand or limit the correctional component will depend on the impact of the property on the community.” Applicant – "New Hope Board and Lodge strictly complies with the City’s mandate prohibiting violent offenders, and these conditions have been an established part of our referral process since 2019. Any Department of Corrections clients are limited solely to non-violent offenses, such as property crimes. To enforce this and ensure community safety, we explicitly deny admission to anyone with the following felony charges: 1. Murder (1st–3rd degree) & Manslaughter (1st–2nd degree) 2. Felony Assault (1st–5th degree) 3. Criminal Sexual Conduct (1st–4th degree) 4. Arson (1st–2nd degree) 5. Drive-by shooting & Unlawful possession of a firearm"

The applicant is requesting a conditional use permit to allow a building addition and an operational expansion of the current facility; and a variance to decrease the rear yard from 66’ to 25' in the R-3, Limited Multiple Family Dwelling District.  

Conditional Use Permit: 
The current facility located at the site operates as a state licensed Rate 1 Room and Board. There are currently 18 bedrooms that are being rented by individuals seeking recovery housing. The existing facility provides space for private offices, gathering spaces for tenants, shared laundry, a commercial kitchen and dining room. Food services are currently being provided by an onsite catering group. 

In 1997, a conditional use permit was granted allowing the House of Hope operations. The original 1997 Planning Commission report and City Council resolution from 1997 are included as attachments. 

The property owner requested that the Planning Commission table a review of the items at their August 26, 2026, meeting to make modifications to their request. As requested, the Planning Commission tabled the item and will be reviewing it at their September 23, 2026, meeting. 

A newly revised site plan shows a 60' X 52.5', approximately 3,150 square foot, addition located on the southerly side of the existing facility. The August 2026 submission has been modified to now contain 16 new bedrooms, each having their own bathroom. There are eight bedroom units on each floor of the proposed 2-story addition. The proposed new addition also includes a shared kitchen, dining and living room on each floor. This replaces the previous apartment-type units. 

The site provides 22 stalls for the existing uses of the building and is based on previous council approval. Parking for the additional units on site shall be provided at 1.5 stalls per unit. Plus one space per staff member. Based on this calculation, an additional 28 stalls shall be provided on site or on an unencumbered lot within 500 feet from the site. Alternatively, the applicant can seek a reasonable accommodation under the Fair Housing Act to allow for parking flexibility.

Variance: 
The applicant is requesting a variance to reduce the rear yard setback from 66' to 25'. The Mankato City Code requires a rear yard setback for all principal buildings other than one-and-two family dwellings of 25 percent of lot depth, provided the yard is a minimum of 25 feet or a maximum of 75 feet. The variance is being requested in order to allow for an approximately 60' X 52.5' building addition.

The applicant has modified their August 2026 submission from an initially proposed 11.2' setback, to a proposed 25' rear yard setback. 

The applicant provided the following answers to the variance questions: 

1. In your opinion, is the variance in harmony with the purposes and intent of the ordinance? Yes. The intent of the R-3 district and local zoning ordinances is to ensure orderly, safe, and compatible residential development that serves community needs. Granting this variance allows an existing, legally established board and lodge to expand its contiguous footprint with 16 new board and lodge units tailored for past and present residents. Because the site operates with shared central common spaces, and administrative oversight, expanding onsite rather than constructing a separate building preserves land efficiency and keeps the visual scale compatible with the surrounding residential neighborhood.
2. In your opinion, is the variance consistent with the comprehensive plan? Yes. The City of Mankato Comprehensive Plan emphasizes diverse housing options, redevelopment of infill properties, and micro-unit/flexible housing models for vulnerable populations. Expanding New Hope Board and Lodge with private capital directly aligns with these goals by expanding stable, substance-free housing, preventing housing instability, and supporting workforce reintegration—all within a designated mixed-density residential corridor.
3. In your opinion, does the proposal put property use in a reasonable manner? Yes. The continuous operation of a board and lodge housing is a reasonable and established use of this property. Adding 16 new board and lodge units directly addresses a
   severe capacity crisis where qualified past and present residents seeking independent recovery living are routinely placed on waitlists. Constructing an attached addition rather than purchasing a separate, detached site is the only operationally viable method to maintain shared staffing, centralized security, common dining, and unified administrative oversight.
4. In your opinion, are there circumstances unique to the property? Yes. The primary structure was positioned centrally on the parcel prior to modern expansion needs and modern setback rules, establishing fixed access points, parking alignments, and utility corridors. The physical lot dimensions and fixed position of the existing foundation limit where new construction can attach. Forcing strict adherence to standard yard setbacks shrinks the buildable footprint to a point where an addition becomes structurally infeasible and economically unviable, creating a unique physical hardship tied directly to the property's layout.
5. In your opinion, will the variance maintain the essential character of the locality? Yes. The property has functioned seamlessly as a board and lodge in this neighborhood. The architectural design of the proposed additional 16 board and lodge units will mirror the scale, rooflines, and exterior finishes of the existing building and neighboring multi-family structures. Parking lot and landscape buffers will ensure the expansion integrates quietly into the neighborhood without causing off-site parking congestion or altering the streetscape. Furthermore, adjacent neighborhood stakeholders have provided documented support for this proposal.

The applicant did host a neighborhood meeting per staff's recommendation. The meeting recap is included in the attachments. 

 

Staff submits the following findings: 

1. The property is currently served by public utilities and the applicant will need to pay SAC and WAC fees based on the expansion to the facility. 
2. The applicant will need to provide parking based on the additional units and staffing needs. The facility is in proximity to public transit. 
3. The property is a state licensed facility. 
4. The proposal does not interfere with or diminish the use of property in the immediate vicinity.
5. The proposal does not cause undue traffic congestion. 
6. There are no known historical or architectural resources on the site. 
7. There are no known natural or environmental features on the site. 
8. It will not cause a negative cumulative effect and effect on the City as a whole.
9. The proposal will not jeopardize the public's health, safety, or general welfare. 

 

Staff recommends approval of the conditional use permit  with the following recommendations: 

1. The applicant shall provide a loading and unloading plan for the onsite catering business. Loading and unloading shall not interfere with the operation of adjacent uses.
2. Parking shall be provided onsite or within 500 feet for the additional units and staffing. Alternatively, the applicant can seek a reasonable accommodation under the Fair Housing Act to allow for parking flexibility.
3. The applicant shall provide a photometric plan and fixture cut sheets for any new lighting that conforms to the Mankato City Code. 
4. The applicant shall provide 24-hour staffing at this location.
5. The applicant shall address any safety issues that arise at the facility. 
6. Any proposed mechanical equipment shall not be visible from the adjacent street frontage and be screened according to Mankato City Code Chapter 10. 
7. No outside storage shall be permitted on the subject property unless fully enclosed/screened.
8. All refuse containers shall be fully enclosed in conformance with Mankato City Code Chapter 10. 
9. The property is currently served by public utilities and the applicant will need to pay SAC and WAC fees based on the expansion to the facility. Fees can be calculated based on the information below: 
   1. WAC - $602.55xREC (Residential Equivalent Unit)
   2. SAC - $1,924.52xREC (Residential Equivalent Unit)
10. The commercial kitchen shall be used to exclusively supply food for the House of Hope.