CY43-26

Request of RJC Rental Properties LLC for a conditional use permit to allow the operation of an Intensive Outpatient Treatment Clinic in the R-3, Limited Multiple dwelling zoning district. The subject properties are described as Lots 3, 4, and 5, Block 25, Mankato City subdivision (1618, 1620 and 1622 3rd Avenue). 

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

The applicant is RJC Rental Properties, LLC. 

The applicant is seeking a conditional use permit to allow the operation of an Intensive Outpatient Treatment clinic in the R-3, Limited Multiple dwelling zoning district. 

The subject building is located at 1618 3rd Avenue, and properties located at 1614 and 1620 are also shown on the current site plan that shows parking at the property. 

The subject property is currently vacant. The applicant indicated that the House of Hope occupied the facility last in approximately 2020 for similar purposes. 

To bring the property into compliance with the City's Land Use Plan, the property was rezoned to R-3, Limited Multiple dwelling, zoning district on September 14, 2026. 

There are no known environmentally sensitive areas on the site. 

The site is currently served by public utilities. 

The City of Mankato Code regarding the R-3, Limited Multiple Dwelling District, can be found at this link: 
https://library.municode.com/mn/mankato/codes/code_of_ordinances?nodeId=PTIICOOR_CH10LAUSDE_ARTIIREDI_DIV5LIMUDWDI 

The Site Plan and Traffic Advisory Committee reviewed the item during their September 8, 2026, meeting and provided the following comments. The applicant's subsequent responses are included in italics. 

1. If not already complete, the applicant shall log in to the online portal and make notice fee payments. Applicant acknowledged payment requirement. 
2. Applicants will be required to pay SAC & WAC connection charges based on the City of Mankato assessment policy and fee schedule. Applicant response: We are aware of the SAC & WAC connection charges. We have a plan with the current owner to manage the payment for these charges. 
3. 1620 3rd Avenue has been noted to be demolished at some point.  At that time, the applicant shall be aware that the City of Mankato would require the property owner to disconnect sewer and water services to the City mains in 3rd Avenue.  With that in mind, conducting the disconnection work before the 3rd Avenue Reconstruction project is finished would be more feasible for the property owner and is preferred by the City of Mankato. Applicant response: At this time, we are holding off on demolition of the property. We are adding updated sewer lines for potential future use. 
4. General note: if the noted “storage” areas shown on the floor plan are further developed and used for office, or other, purposes in the future, those will need to be included in the parking calculation and will thus increase the parking demand. Applicant response: We understand the requirements for adding parking for future use with any program expansion. 
5. The traffic data shall be undertaken by a registered traffic engineer. Please see the example as was previously provided Here. Applicant response: Regarding the traffic data, I spoke with MnDot and was provided that the AADT count for Chestnut Rd is currently 592 as of 2025. This is a decrease in numbers since 2018 when the count was 720. . At this time, I would like to add that only approximately 3 other homes share the alleyway that I would be utilizing. I also expect most program attendees will walk or bike to the office. 
6. Please confirm – will there be any exterior improvements associated with this project. Applicant response: The property has been well maintained and we will not be making any improvements at this time. 
7. Please confirm – will there be any interior improvements associated with this project. Applicant response: The property has been well maintained and we will not be making any improvements at this time. 
8. Parking standards from code state that clinics require, “One space per each 250 sq. ft. of floor area, plus one space per staff member.” 4 maximum staff are noted in the submission. The floor area shown on the site plan is 3,105 and the area on the floor plan is 1,848. For purposes of parking, the usable floor is: Floor area, livable or usable, means the sum of the gross horizontal area of all floors of a building as measured from the interior faces of the interior walls, excluding the areas of unoccupied cellars, accessory garages, porches, attics, basements, stairways, bathrooms, and utility and heating rooms.
   1. Confirm the usable floor area (which should include the breakroom) as per the code definition. Applicant response: I am waiting for the updated floor plan. I will send this to you as soon as possible. 

Assuming a usable floor area of approximately 2000 square feet (this shall be confirmed), plus the employees, 12 parking stalls are required. 8 stalls are shown on this property. The property at 1614 3rd Avenue received a reasonable accommodation on July 9, 2026 whereby 6 parking stalls are required for that property. Therefore, those stalls are not available for use in conjunction with this property. Four stalls are shown on the 1620 3rd Avenue property for a total of 12 parking stalls provided. Note — this will impact the ability to utilize 1620 if there are parking requirements for that use.  Applicant response: Our only intended use for the property at 1620 is as parking for the services provided at 1618. As the IOP continues to expand we would then develop the 1620 property into additional parking at that time. Regarding traversing across the parking lot, 1618 and 1620 will merge into one parking area for the IOP services. 

The applicant, RJC Rental Properties, LLC, has applied for a conditional use permit to allow an Intensive Outpatient Treatment, IOP, clinic in the R-3, Limited Multiple Family Dwelling district. The property is addressed at 1618 3rd Avenue and was recently rezoned to R-3, Limited Multiple Family Dwelling, zoning district to match the City’s underlying Land Use Plan. 

Proposal
According to the applicant's narrative, the proposed use will occupy the premise previously used by the House of Hope. The applicant has indicated that the House of Hope moved their operations in approximately 2020, and the applicant desires to resume operations that are similar under the business name "Golden Anchor Treatment Services". The request seeks to operate an Intensive Outpatient Treatment (IOP) program. This use will provide structured, evidence-based treatment services for adults experiencing substance use and co-occuring mental health disorders. The applicant describes that the program is designed to help individuals achieve and maintain recovery while continuing to live independently within the community.

The proposed IOP clinic desires to provide licensed health services that are outpatient in nature and do not require overnight stays or residential occupancy. Participants attend pre-scheduled treatment sessions several days per week. The proposed services offered at this location include the following:

• Individual counseling
• Group therapy (Tue, Wed, Thurs - 8a.m - 12p.m. or Mon 1pm - 4pm)
• Family education and counseling
• Substance use disorder assessments
• Mental Health support and care coordination
• Relapse prevention planning 
• Recovery education and life skills development
• Case management and referrals to community resources

The applicant's narrative states that the facility will be licensed by the Minnesota Department of Human Services under Minnesota statute 245G. The applicant has further clarified that this is a similar license to what was previously in place for the House of Hope. A recommended condition of approval is included herein regarding the licensing of the subject premises. 

The hours of operation are weekdays, Monday through Friday, from 8:00 a.m. to 8:00 p.m. No weekend hours are proposed at this location. A recommended condition of approval is included herein that provides recommended expectations on hours of operation for the clinical use. 

Four licensed alcohol and drug counselors, licensed mental health professionals, clinical supervisors and administrative personnel will be working at the facility during operating hours. The applicant indicates that a maximum of four employees will be employed at the premises.

All clients will have pre-scheduled appointments, and will depart immediately following their service. The anticipated maximum attendance at any given time is 16 clients, and the applicant intends to stagger appointment times to reduce parking demand and vehicle traffic. A recommended condition is included herein regarding the maximum capacity. 

All clinic services offered at the location will be held entirely indoors, within the subject premises. 

The clinic will not be distributing any medication at the location, including methadone and suboxone.

Zoning and Code standard
The primary structure involved with the request is located at 1618 3rd Avenue. 1614 3rd Avenue is included with the request as it is utilized to access the parking stalls on the subject property. 1620 3rd Avenue is also included with the request as the subject property is utilized for parking purposes. All the subject properties are zoned R-3, Limited Multiple Dwelling District. The Mankato City Code outlines that within the R-3 zoning district, "Hospitals and medical clinics" are considered conditional uses. Other conditional uses as applicable to the R-3 zoning district include bed and breakfast residences, campgrounds within public parks, cemeteries, crematories and mausoleums, child daycare facilities, churches, congregate housing, golf and country clubs, government institutions, municipal buildings, museums and libraries, nursing homes and similar institutions, and other residential, institutional, or government services uses determined by the planning agency to be of the same general character as the permitted and conditions uses and found not to be determinantal to existing uses and the general public health, safety and welfare, parking lots meeting certain conditions, public housing units, and public utilities and essential services conforming to the Code. 

The Code provided definition of a clinic is, "a place used for the diagnosis and treatment of sick, ailing, infirm, injured persons, and those persons who are in need of medical attention. Overnight care facilities are not provided at the clinic." The definition of hospital in the Code is, "an institution providing health services for human in-patients and medical or surgical care for the sick or injured. The term "hospital" includes related facilities such as laboratories, outpatient departments, training facilities, central service facilities, staff offices, and overnight accommodations for patients." The proposed use, an Intensive Outpatient Treatment clinic, fits within the definition as provided by the Mankato City Code for a clinic. 

Site Plan
A site plan has been provided, and no site improvements are proposed. 

The site plan identifies 15, 9' X 20' existing parking stalls, and bicycle parking. Ten parking stalls are shown on the lot of the building where the IOP will operate at 1618 3rd Avenue, and access to the stalls will require traversing over the property to the south at 1614 3rd Avenue. Five parking stalls are shown on the property at 1620 3rd Avenue, which the applicant represents is currently vacant. The required vehicle parking for a clinic is one space per 250 square feet of floor area, plus one space per staff member. The plans show 2,100 square feet of office space, and 5 employees and, thus, 14 parking stalls are required. A recommended condition of approval is included herein that the parking standards shall be achieved, and that staff be limited to available parking or additional code-compliant parking be added to achieve the required for the clinic use. A recommendation condition of approval includes that, prior to occupancy, all parking stalls be striped in accordance with the City of Mankato parking standards. Additionally, a recommended condition of approval includes that all properties must remain under the same ownership for access purposes, or a legally recorded easement will be necessary for the shared access routes. Further, a recommended condition includes that the future use of the existing building located at 1620 3rd Avenue, where 5 parking stalls are being provided for this use, will be limited to available parking. 

All lighting on the subject property will be required to conform to the Mankato City Code, and a recommended condition is included here to this end. 

If signage is desired by the applicant, they will be required to obtain a sign permit prior to fabrication and installation and a condition to this end is included herein. 

The applicant will be required to comply with the Mankato City Code regarding their refuse storage containers, and a recommended condition is included to address as much. All garbage and recycling bins will be required to meet the Mankato City Code, which requires a gated opaque fence or wall of sufficient height to completely screen the containers from view by all adjoining property and streets. Alternately, the refuse bins may be stored indoors. 

Traffic
The applicant has provided traffic data showing the following data: 

• AM peak hour trip generation is 20 trips (20 IN 0 OUT)
• PM peak hour trip generation is 20 trips (20 IN OR 20 OUT).  
• Daily trip generation is estimated at 40 trips (20 IN 20 OUT) assuming all clients and staff arrive in separate vehicles.

The City's traffic engineer had reviewed the data and finds that the addition of these trips is not anticipated to be of concern for either County State Aid Highway 5 (3rd Avenue), a four-lane county highway, or Pine Street/Chestnut Street — both local roadways with side street stop control, the peak hour trips are very low and existing roadways have sufficient capacity. 

The site is served by a pedestrian sidewalk located along 3rd Avenue. The nearest bus stop is located east of Franklin Elementary School, a distance of approximately 2/3 of a mile, and from the stop, pedestrian sidewalks are provided to the site. While there is no fixed bus route in this area, the business is located in the Kato Flex zone service area. The City of Mankato Transit has indicated that because the business is located within the Kato Flex Zone, clients who reside in the City's service area will be allowed to utilize Kato Flex to access services at this Kato Flex Zone business. This means that curb-to-curb service, in keeping with the Kato Flex standards, will be provided for clients going to this location. 

While heavy truck traffic is not anticipated based on the submitted information and the proposed use, a recommended condition is included herein that requires the applicant to prepare a plan for review and approval of staff prior to occupancy that contemplates onsite loading related to pick up/drop off of clients and queuing and site deliveries. The plans should address general site deliveries, and should provide a plan for pick-up/drop-off of clients. Stacking and queuing that blocks existing parking stalls or the alley will be prohibited.  

Floor plans
No interior changes are proposed related to the floor plans. The one-story building, which does not have a basement, shows approximately 2,100 square feet of livable/usable area. Eight office spaces are shown on the floor plans, along with an activity area, restrooms, a mechanical area, and storage areas. If future occupancy of the storage areas is for anything other than storage, additional review and approval by way of an amended conditional use permit will be required. 

Noise
The applicant has indicated that all operations will occur indoors, at this subject premises. A recommended condition of approval is included herein in this regard. 

Neighborhood Meeting
The applicant held a neighborhood meeting on September 9, 2026, at 6:00 p.m. A summary of the neighborhood meeting is included in the attachments. A recommended condition of approval is included herein that, in order to promptly address potential neighbor questions that arise in the future, that a complaint hotline/local access contact phone number be provided for use by the neighborhood. This recommendation outlines that the number should be provided prior to the granting of occupancy of the space and that the contact should be local, and should be able to respond in the event that questions or concerns arise, including off-hours. 

Staff respectfully submits the following findings of fact. 

1. The use, a medical clinic, is one of the conditional uses listed in R-3, Limited Multiple Dwelling District. 
2. The request is in keeping with the comprehensive planning policies of the city as identified uses and policies associated with each use are outlined. 
3. The proposed use, when considered with the recommended conditions, does not interfere with or diminish the use of property in the immediate vicinity. 
4. The property is currently served by public facilities and services. 
5. The proposed use does not cause undue traffic congestion. 
6. There are no known historical or architectural resources associated with the site.  
7. There are no impacts on natural or environmental features. 
8. The proposal will not cause a negative cumulative effect, when considered in conjunction with the cumulative effect of various special uses of all types on the immediate neighborhood, and the effect of the proposed type of conditional use upon the city as a whole. The existing street network, pedestrian corridors, access to transit facilities, in conjunction with the proposed conditions of approval outlined herein, are elements to minimize effects on the immediate neighborhood.
9. The proposal complies with all other applicable regulations of the district in which it is located and other applicable ordinances. 
10. The proposal will not jeopardize the public's health, safety, or general welfare, and conditions of approval are outlined here to address operational issues that may present themselves with the proposed use. 

Staff recommends approval of the conditional use permit to allow the operation of an Intensive Outpatient Treatment Program, IOP, treatment clinic at 1618 3rd Avenue with the following conditions: 

1. This approval is based on the exhibits, narratives and reports received from the applicant on the parcels addressed as 1618, 1614 and 1620 3rd Avenue. The facility shall be operated according to the Approved Plans as follows: 
   1. Site Plan — Sheet A0, 1618, 1620, 1622 3rd Avenue, dated September 14, 2026. 
   2. Floor Plan — Sheet A1, 1618 3rd Avenue, dated September 14, 2026. 
   3. Conditional Use Permit Narrative, 3 pages, provided September 1, 2026, signed by Christina Rotert, LSW.
   4. Traffic and Parking Impact Data Sheet, dated and signed on September 1, 2026, by Christina Rotert.
2.  Any modifications to the Approved Plans must be reviewed and approved in writing by the City Council by way of an amended conditional use permit.  If the Approved Plans differ from the written terms and conditions as stated in this Conditional Use Permit, whichever is more restrictive would apply. 
3. This approval is for only the uses, including the staffing and client capacities, shown in the Approved Plans. Any future expansions, modifications, or the like, to the Approved Plans, will require an amendment to the conditional use permit. 
4. The properties at 1614, 1618 and 1620 3rd Avenue must remain under the same ownership for access and parking purposes, or a legally recorded easement will be necessary prior to property separation for the shared access routes and parking spaces.
5. The future use of the existing building located at 1620 3rd Avenue, where 5 parking stalls are being provided for this use, will be subject to available parking.
6. All refuse and recyclable material containers shall meet Mankato City Code standards. If a dumpster enclosure is desired, a construction permit shall be obtained prior to installation. 
7. The use shall be operated in its entirety within a completely enclosed structure, including all group activities. Exterior operations are prohibited. 
8. All exterior lights shall meet the Mankato City Code. Fixtures shall be full-cut, fully shielded style. Prior to installation, fixture cut sheets and a photometric plan shall be provided for any new lighting installation for review and approval per City Code requirements.
9. Prior to the fabrication, installation or modification of any signage, a sign permit shall be obtained. 
10. Staffing at the clinic shall be limited to available parking. 
11. Prior to occupancy, the parking lot shall be striped in accordance with the City of Mankato standard parking plates. 
12. All appointments shall be pre-scheduled, drop-in clients are prohibited. 
13. Staff shall be onsite during clinic operations. 
14. Activities associated with the Intensive Outpatient Treatment Program clinic will be limited to the hours of Monday through Friday from 8:00 a.m. to 8:00 p.m.
15. Clinic operations will be limited to a maximum of 16 clients at any given time, and the total occupants/visitors will be limited to the available, onsite parking. 
16. Group sessions shall be staggered accordingly to avoid traffic conflicts during transition periods. 
17. A plan shall be submitted for review and approval of staff prior to occupancy of the facility, that contemplates onsite loading related to pick-up/drop off of clients, queuing, and site deliveries. The plans should address general site deliveries, and should provide a plan for pick-up/drop-off of clients. 
18. In-patient or residential components related to the proposed use are not allowed with this approval. 
19. A complaint hotline/local emergency contact phone number shall be provided prior to occupancy. The emergency contact should be local, and should be able to respond in the event that questions or concerns arise, including off-hours.
20. The facility shall be and remain licensed by the State of Minnesota through Minnesota Statute 245G. If licensing ceases or operations change, additional review and consideration of the conditional use permit will be required. A copy of the State-issued license shall be provided to the City prior to occupancy.