Resolution approving a Land Use Plan amendment for property described as Lots 6 & 7, Hilltop Addition (112 and 116 Dane Street); by request of Van Tol Properties. 

At the July 26, 2023 meeting, the Planning Commission recommended the adoption of the resolution approving the land use plan amendment for VanTol properties.

Van Tol Properties, LLC is proposing to change the land use plan from low-density residential to commercial. The proposed land use amendment is located along Dane Street between Madison Avenue and Belle Avenue. The parcels are currently addressed as 112 and 116 Dane Street and are platted in the City of Mankato. 

Per the City Charter, upon receipt from the City Manager of a proposed comprehensive plan or proposed modification of the existing plan, the Council shall refer such proposal to the City Planning Commission, which shall, within a time specified by the Council, report its recommendations thereon. After receipt of the recommendations of the Planning Commission, the Council will hold a public hearing on the proposed comprehensive plan or modifications thereof and shall thereafter adopt it by resolution with or without amendment.

The Mankato City Council on July 10th, 2023, recommended that the Planning Commission review the proposed land use plan amendment at the regular Planning Commission Meeting on July 26, 2023. 
 
The Planning Commission reviewed the request at the July 26, 2023, meeting and made the following recommendation;
 
In order for the development to better conform to the goals of the Land Use Plan and the Strategic Plan for the City of Mankato, the Planning Commission recommended the following criteria be included with the land use plan amendment:

1. The development shall include pedestrian connectivity throughout the development. 
2. Striping of the adjacent streets shall occur as part of a development as per a plan that conforms to engineering standards and review and approval. 
3. Any change in on-street parking as a result of the traffic impact study will require an official petition for a change in parking.
4. Prior to future development, the applicant will be required to seek rezoning for the subject parcels, as well as any required zoning approvals for the proposed development. 

 
Property History
In 2015, Van Tol Properties, LLC (Van Tol) requested to amend the rental density map and excluded 116, 120, and 124 Dane Street. The memorandum stated that “over the past 20 years, Van Tol has been purchasing the properties along the west side of the 100-200 block of Dane Street with plans for eventual redevelopment. Van Tol has maintained the homes as they were being purchased and obtained rental licenses for the properties in the interim period until redevelopment was approved.”
 
A preliminary concept plan was submitted with the request that depicted a drive-thru facility located on the corner of the property with connections to Madison Avenue and Dane Street. The memorandum stated that “this plan would require rezoning and other approvals.”
 
The Council approved a resolution allowing an amendment to the rental density map to allow for rental flexibility with the statement that “city staff has reviewed the request and determined that excluding the subject parcels from the rental license density restrictions is reasonable considering that the properties may be redeveloped in the future and in the interim allowing utilization of the properties for rental.” Since the approval, Van Tol Properties, LLC has been evaluating proposals for the redevelopment of the property. The submission of this application is the initial request to address the approvals required to proceed with the redevelopment. The applicant will be required to submit a rezone of the property and for a conditional use permit for use of the property as a drive-thru. The Planning Commission will be required to review the requests and make recommendations to the City Council for formal action.
 
Current Conditions and Proposed Changes
The northern two lots (895 Madison Avenue and 108 Dane Street) on the proposed site are designated as Commercial in the Land Use Plan and are zoned B-1, Community Business District. No change is requested to the land use classification or zoning for these properties.
 
The southern two lots (112 Dane Street and 116 Dane Street) are currently designated as low-density residential and are zoned R-2, One- and Two-Family Dwelling District.
The request submitted is to change the land use classification to commercial for these two properties. A separate request will need to be submitted to address the proposed zoning change to B-1, Community Business District.
 
The entire site proposed for redevelopment includes one commercial structure and three single-family dwellings. The three single-family dwellings are currently occupied as rental units. The planned redevelopment of the property would remove the three single-family dwellings and the commercial building. The applicant is considering three options for the removal of the homes, including working with Habitat for Humanity on the relocation of the homes, working with other developers to relocate the homes, or working with the Mankato Department of Public Safety on conducting training in the homes.
 
The four current properties involved (one commercial and three residential) have a combined assessed market value of $799,400. A similar developed site for a Starbucks located in the City of Mankato has an assessed valuation of $478,000.
 
As far as taxes paid, the four properties currently pay a combined property tax of $11,964. A similar developed site for a Starbucks with the assessed market value above pays property tax in the amount of $14,058 due to the commercial tax rates.    City property taxes for the four properties equals $4,047.04. City property taxes for a similar developed site for a Starbucks is $4,003.88. It should be noted that future use will be required to participate in the food and beverage taxes due to the proposed use being a coffee shop and the commercial tenant is proposing to construct a new building within the City of Mankato.
 
The applicant has indicated that the occupants of the existing single-family dwellings have found alternative housing (two purchased a home, one found another property to rent). The commercial tenant is conducting due diligence on a new location for the business.
 
The location of the commercial building (895 Madison Avenue) is legally nonconforming due to the structure not being in compliance with Mankato City Code setback requirements. The applicant indicated in the narrative that the removal of this structure will improve the site lines for the Madison Avenue and Dane Street intersection due to the new structure being located in conformance with the setback requirements of the Mankato City Code. Staff reviewed the crash data for the Madison Avenue and Dane Street intersection. Based on the 34 reportable crashes, it does not appear that the location of the structure resulted in accidents occurring. Typically, site line issues result in accidents where a permissive maneuver is occurring (right on red or left on yellow arrow) and the accident occurred with a permissive movement that was not impacted by the location of the building. Staff agreed that the relocated structure would provide better sight lines than the existing building.
 
The existing lane configuration on Dane Street depicts a three-lane section near the intersection of Dane Street and Madison Avenue. During the review of the traffic information, a recommendation was to extend the three-lane section to the south of the proposed development to allow for efficient flow of traffic approaching this site.
The applicant has agreed to extend the three-lane section south of the property.
 
As part of the multi-modal review of the project, additional consideration has been taken related to the pedestrian traffic in the area. It should be noted that the sidewalk network connecting the area north of Madison Avenue/Dane Street intersection to Marsh Street only shows a sidewalk on the west side of the street (adjacent to the subject properties). The proposed entrance/exit would intersect with the sidewalk for pedestrians.
 
The applicant will be conducting pedestrian counts during the first week of school to determine the level of pedestrian activity at the proposed driveway/sidewalk intersection.  The applicant will provide the information during the Council meeting. A question was raised about creating a better crossing on Dane Street near Washington Elementary School. It should be noted that the approved Safe Routes to School Plan (Map on Page 71) directs children to utilize the west side Dane Street to Marsh Street and the to McConnell Street to connect to Washington Elementary School rather than continuing on Dane Street as the connection route.
 
The applicant is also evaluating alternatives for traffic control at the driveway entrance to raise awareness of pedestrian activity.  Initial improvements being considered are improved landscaping design for better visibility, lights to alert when pedestrians are approaching the intersection, and conducting other research to determine best practices for pedestrian safety at intersections. Pedestrian safety alternatives would be further reviewed during the conditional use permit process.
 
Land Use Plan Request 

As previously stated, Van Tol Properties LLC is requesting a Land Use Amendment to change the guided land use from Low Density Residential to Commercial to allow for a commercial development. The City's Land Use Plan depicts the area as being guided as low density residential. Should this request be approved, a rezoning (to B-1 Community Business District zone), Conditional Use Permit (for a drive-thru coffee shop), and a certificate of design compliance will be required. As part of the process, the Site Plan and Traffic Advisory Committee will review the requests. These subsequent applications will include a more detailed design for review and provide an opportunity for additional public input at the requisite public hearing.

As part of the Land Use Amendment Process, Van Tol Properties LLC held neighborhood information meetings on May 18th, 2023, and May 30th, 2023. The applicant conducted a Traffic Impact Study on May 16, 2023. The report is included in this submittal. In conclusion of the Traffic Impact Study, it is not expected that the proposed development will introduce operational deficiencies that require intersection geometry or traffic control improvements. Minor striping changes will assist in the turning movements into the site.

Below are the goals identified in the City’s Land Use plan. The applicant’s narrative describes that the Amendment request from Low Density residential to Commercial is in alignment with the goals as demonstrated below.

1. Retain and enhance the character and quality of established areas and revitalize, rehabilitate, or redevelop areas where such improvement is required or requested.

Response: The proposed re-development of the corner of Madison Avenue and Dane Street will enhance the characteristics of this intersection. It would also provide a better sight corner for the intersection of Madison Avenue and Dane as the new commercial building will be located further back from the intersection than the existing commercial use building.

2. Promote adequate housing alternatives for all income levels and age groups.

Response: N/A this would be a commercial re-development project.

3. Encourage the orderly growth of the community.

Response: N/A this would be a commercial re-development project.

4. Promote infill development for the purpose of obtaining the maximum utilization of existing infrastructure.

Response: This project will promote re-development and will utilize existing infrastructure.

5. Promote the preservation of ravines, bluff lines, wetlands, woodlands, and other environmentally sensitive areas.

Response: N/A. This project does not have any ravines, bluff lines, wetlands, woodlands, or other environmentally sensitive areas.

6. Encourage landscaping and the attractive design of public and private developments.

Response: A detailed landscape plan will be provided with subsequent required applications to show compliance with the City’s landscaping and buffer standards. The developer also recognizes the benefit to their residents and adjacent properties by providing a nicely designed site.

7. Promote complementary land uses and minimize incompatible land uses.

Response: The proposed change is to add two lots that are currently low density residential that abut a commercial land use. The goal is to expand the commercial land use for re-development of the commercial corner.

8. Promote efficient use of municipal services.

Response: The proposed commercial re-development would continue to be served by the City of Mankato.

9. Designate adequate vacant land to allow for the growth of residential, commercial, and industrial areas.

Response: N/A. This is not vacant land but would be a commercial re-development project.

10. Promote the orderly extension of streets and the development of pedestrian/bike corridors.

Response: N/A this would be a commercial re-development project.

11. Stabilize property values by promoting the application of effective land use controls and development standards.

Response: This development will incorporate site and building design interests to ensure the site is visually pleasing for the residents and adjacent properties.

12. Encourage and promote innovations in development techniques in order to obtain maximum livability and excellence in planning and design for all new developments.

Response: The proposed commercial re-development will provide better sight lines at the corner of Madison Avenue and Dane Street. The building will be pushed back from the corner to allow more visibility at the corner.

13. Promote, maintain, and preserve parks and open space.

Response: N/A this would be a commercial re-development project.
 
Next Steps
 
As stated above, should this request be approved, a rezoning (to B-1 Community Business District zone), conditional use permit (for a drive-thru coffee shop), and a certificate of design compliance will be required. As part of the process, the Site Plan and Traffic Advisory Committee will review the requests. The requests will be reviewed by the Planning Commission and the City Council will take action regarding the request.