CY28-24

Request of Thomas Ponce, on behalf of the property owner, Mesenbrink Construction, for a conditional use permit to allow wetland sequencing and replacement of 7.10 acres of wetland impacts. The subject property is described as part of the West 30 acres of the SW ¼, Section 15-108-26, except the South 330 feet of the West 330 feet thereof, AND The SE ¼ of the NW ¼ of the SE ¼; The S. ½ of the NE ¼ of the SE ¼; The SE ¼ of the SE ¼; The SW ¼ of the SE ¼, Except the West 30 acres thereof; all in Section 15, Township 108, Range 26, Blue Earth County, Minnesota, with some exceptions. (Blue Earth County PID R430915400003 and R430915400009).

The anticipated date of City Council action is August 12, 2024. 

The applicant is John Mesenbrink, Mesenbrink Construction. 

The applicant is seeking a conditional use permit which will allow wetland replacement on the subject site. 

The subject property is located on the easterly side of CSAH 12, also known as 589th Avenue, near the eastern terminus of Hofman Road's roundabout. It is legally described as part of the West 30 acres of the SW ¼, Section 15-108-26, except the South 330 feet of the West 330 feet thereof, AND The SE ¼ of the NW ¼ of the SE ¼; The S. ½ of the NE ¼ of the SE ¼; The SE ¼ of the SE ¼; The SW ¼ of the SE ¼, Except the West 30 acres thereof; all in Section 15, Township 108, Range 26, Blue Earth County, Minnesota, with some exceptions. The associated Blue Earth County parcel identification numbers are R430915400003 and R430915400009. 

The subject property is currently an agricultural field and the northern portion is an existing wetland. 

The subject parcel is currently zoned Agriculture as it is located in Mankato Township. Upon annexation, rezoning to reflect the underlying Land Use Plan designations will be required. 

In early 2023, the City of Mankato received a development proposal, known as Mesenbrink Mixed-Use Development Project, located on an approximately 105-acre parcel (to be annexed into the City of Mankato) in Blue Earth County, Minnesota. The proposed project would construct a new mixed-use development consisting of retail space, apartment units, and single-family residential units. The area was previously subject to an environmental review for this area as part of the Greater East Mankato Infill Service District AUAR.  The Greater East Mankato Infill Service District AUAR approval has expired, and therefore the applicant conducted the Environmental Assessment Worksheet (EAW). 
 
The EAW documented the purpose and need of the project along with the anticipated social, economic, and environmental effects. The EAW was made available for public and agency review beginning on February 7, 2023. In addition to the standard comment period, staff notified the adjacent property owners and rental properties of the EAW and held an open house on March 1, 2023, to gather additional comments.

An original electronic copy of the EAW is available for review at the City’s website at: https://www.mankatomn.gov/home/showpublisheddocument/12958/638107513590968202. 

The comment period ended on March 9, 2023. The applicant submitted responses to the comments submitted during the comment period of the EAW. The responses can be found in the Findings of Fact and Conclusions. The City Council adopted a resolution making a negative declaration on the need for an Environmental Impact Statement.

Following the EAW review, Mesenbrink Construction & Engineering, Inc. requested a Land Use Amendment to change the guided land use from Public/Semi-Public to Medium Density Residential to allow for a mixed-use development including single-family dwellings, apartment units, and commercial uses. At the time, the City’s Land Use Plan showed the area to be guided as Public/Semi-Public. Mesenbrink Construction & Engineering, Inc. submitted plans for the development of this site with a mix of low-, medium-, and high density residential and commercial development and is requesting a change to the Land Use Plan and Map to Medium Density Residential to support their development request. The City Council approved the Land Use Plan amendment on July 24, 2023.

On April 8, 2024 the City of Mankato City Council approved the preliminary plat with the following conditions: 

1. At the time of submission for a final plat, the applicant shall provide a complete draft copy of the proposed property owners association documents and deed restrictions, covenants, and permanent easements or other instruments. The documents shall address, but are not limited to, private streets, private utilities, current and future building envelopes, future additions, and how this will be privately managed. Membership in the property owners association shall be mandatory and in accordance with all applicable shoreland standards. The deed restriction shall properly address future vegetative and topographic alterations, construction of additional buildings, and shall ensure the long-term preservation and maintenance of open space in accordance with the shoreland and DNR criteria. 
2. The applicant shall enter into a subdivision agreement addressing public improvements within the subdivision including Hoffman Road, 211th Lane, and public storm water facilities within the subdivision. 
3. The applicant will be responsible for all required permitting and authorization for the proposed improvements associated with the natural gas easement. Written authorization from the easement holder acknowledging the proposed development, and providing consent for the proposed improvements, shall be in place prior to the submission of a final plat. 
4. Block configuration shall be modified to achieve Mankato City Code standards of not more than 1,200 feet. 
5. Prior to the submission of a final plat or planned unit development request for the parcel, a Notice of Decision shall be in place authorizing the proposed wetland impacts. 
6. Prior to submission of a final plat or a planned unit development, the applicant shall have applied for and obtained all necessary Public Waters Work Permit(s) from the Department of Natural Resources, DNR, for the proposed project. 
7. Applicant shall install signs at the required open space area at intervals acceptable to the DNR, and other applicable parties.
8. The applicant shall submit a request for the desired residential rental density within the new low-density residential areas, and this shall proceed for review along with the ordinance amendment for rezoning, platting, etc. for the development.
9. Bulk, height, setback, density, coverage, parking and other underlying zoning district criteria will apply to the subject lots and blocks. 
10. Approval of this preliminary plat does not imply future approval of wetland replacement plans or planned unit developments or other future zoning requests. 

On May 13, 2024, the Mankato City Council passed a resolution authorizing the subject property for annexation. 

On June 5, 2024, the subject parcels were officially annexed to the City of Mankato. 

The northern portion of the subject area contains a public water, a wetland and, as a result, the property is subject to the City's shoreland ordinance. There are also wetlands located throughout the site in the currently farmed agricultural field, which the applicant is seeking to remove with this request. 

The subject parcels are proposed to be served by public utilities, including the installation of a sanitary sewer at a depth of 30 to 35 feet to allow for a gravity fed sewer system to serve a future connection to the City of Eagle Lake. 

Mankato City Code section 10.82, subd. 11 provides wetland standards: https://library.municode.com/mn/mankato/codes/code_of_ordinances?nodeId=CH10LAUSZO_PTIXSTGEAP_S10.82SPPRAPSPPECOUS

Minnesota Rule Chapter 8420, Wetland Conservations, provides regulatory guidance on wetland evaluations: https://www.revisor.mn.gov/rules/8420/

The Site Plan and Traffic Advisory Committee reviewed the request at their July 9, 2024 meeting and provided the following comments. The applicant's response is also included below. 

1. Applicant should be aware of the deferred assessments in relation to this project. Typically, as part of the subdividers agreement this will become active and collection will take place. Applicant's response: Noted.  Owner is aware of the deferred assessments and understands it will need to be part of the development agreement.

Thomas Ponce, agent, on behalf of the property owner, Mesenbrink Construction, is seeking a conditional use permit to allow wetland sequencing and replacement of 7.10 acres of wetland impacts. The subject property is described as part of the West 30 acres of the SW ¼, Section 15-108-26, except the South 330 feet of the West 330 feet thereof, AND The SE ¼ of the NW ¼ of the SE ¼; The S. ½ of the NE ¼ of the SE ¼; The SE ¼ of the SE ¼; The SW ¼ of the SE ¼, Except the West 30 acres thereof; all in Section 15, Township 108, Range 26, Blue Earth County, Minnesota, with some exceptions. (Blue Earth County PID R430915400003 and R430915400009).

Mesenbrink Construction proposes the construction of a mixed-use development located on approximately 105 acres in Blue Earth County. The project development plan includes constructing the project from west to east, starting with retail/residential units on the west side of the property. Then the development transitions into apartment units in the middle of the development, finishing with single family homes on the east side of the property. 

Annexation of the development property to the city of Mankato occurred on June 5, 2024. The City of Mankato City Council approved a preliminary plat with conditions on April 8, 2024. Included in those conditions was a requirement that prior to the submission of a final plat or further approvals for the site, wetland impact and replacement approvals be in place. 

The applicant has submitted a conditional use permit application to the City of Mankato which seeks approval for permanent impacts to 7.10 acres of wetland areas on the subject development property. Mankato City Code section 10.82 subd. 11 states that sequencing and replacement plan decisions under Minnesota Rules, Parts 8420.0520 through 8420.0550, shall be treated as a conditional use. In addition to City of Mankato approval, all wetland impacts will be required to be properly permitted through the Minnesota Department of Natural Resources (DNR), Wetland Conservation Act of Minnesota (WCA) and Section 404 of the Clean Water Act (CWA). 

The site was evaluated for wetlands prior to its annexation, and a total of 12 wetland basins were determined to be located in the subject development area having a total area of 7.10 acres. Basin 1 is the only wetland under the jurisdiction of the DNR, and the Clean Water Act (CWA). 

The remaining eleven wetlands are only under the jurisdiction of the WCA. These eleven wetlands have historically been in crop rotation and have been heavily degraded by the removal of wetland hydrology and hydrophytic plant communities. Due to the degradation that has occurred, these wetlands are eligible for sequencing flexibility. MN Rule 8420.0520, Subpart 7a.A.1, allows for flexibility in sequencing if the wetlands to be impacted have been degraded to the point where replacement of it would result in a certain gain in functional and public value. There are several highly functional wetland banks in the Le Sueur River watershed with available wetland credit. Impacts to wetlands as a result of this project are proposed for mitigation within the same major watershed, allowing a functional lift to the watershed. 

The sequencing exercise requires that impacts to wetland areas are required to be avoided and minimized if practical alternatives exist. The following no-build and alternative and total wetland avoidance alternatives have been provided. 
 

Staff submits the following findings:

1. The proposed request, sequencing and replacement for wetland impacts, is considered a Conditional Use Permit in Mankato City Code section 10.82 subd. 11.
2. The request is in keeping with the comprehensive planning policies of the City as the underlying land use plan identifies this parcel as having the uses that are proposed in the overall development plan.  
3. The proposal does not interfere with or diminish the use of property in the immediate vicinity.  
4. The development will be served by public facilities and services. 
5. The proposal, wetland impacts, does not cause undue traffic congestion. 
6. There are no known historical or architectural resources on the site. 
7. The proposal seeks to preserve the unnamed lake wetland basin located on the northerly side of the parcel. The wetlands proposed for impact and replaced are wetlands that have historically been in crop rotation and have been heavily degraded by the removal of wetland hydrology and hydrophytic plant communities. 
8. It will not cause a negative cumulative effect and effect on the City as a whole. 
9. To the extent known, the development, when considered with the recommended conditions, conforms with all other applicable regulations of the district, and other applicable ordinances. 
10. The proposal will not jeopardize the public's health, safety, or general welfare. 
11. The proposal conforms to the Wetland Conservation Act.

Staff recommends approval of the conditional use permit to allow wetland sequencing and replacement for 7.10 acres of wetland impacts with the following conditions: 

1. The final DNR approved site plan that includes the hydrologic capacity shall be provided to the City of Mankato. 
2. If modeling through the DNR Public Waters permit process, or for other reasons, requires different or additional wetland impact(s), additional review and approval by an amended conditional use permit and review and approval through the City of Mankato Technical Evaluation Panel (TEP) will be required. 
3. The preliminary plat conditions of approval shall be adhered to, and those conditions are as follows: 
   1. At the time of submission for a final plat, the applicant shall provide a complete draft copy of the proposed property owners association documents and deed restrictions, covenants, and permanent easements or other instruments. The documents shall address, but are not limited to, private streets, private utilities, current and future building envelopes, future additions, and how this will be privately managed. Membership in the property owners association shall be mandatory and in accordance with all applicable shoreland standards. The deed restriction shall properly address future vegetative and topographic alterations, construction of additional buildings, and shall ensure the long-term preservation and maintenance of open space in accordance with the shoreland and DNR criteria. 
   2. The applicant shall enter into a subdivision agreement addressing public improvements within the subdivision including Hoffman Road, 211th Lane, and public storm water facilities within the subdivision. 
   3. The applicant will be responsible for all required permitting and authorization for the proposed improvements associated with the natural gas easement. Written authorization from the easement holder acknowledging the proposed development, and providing consent for the proposed improvements, shall be in place prior to the submission of a final plat. 
   4. Block configuration shall be modified to achieve Mankato City Code standards of not more than 1,200 feet. 
   5. Prior to the submission of a final plat or planned unit development request for the parcel, a Notice of Decision shall be in place authorizing the proposed wetland impacts. 
   6. Prior to submission of a final plat or a planned unit development, the applicant shall have applied for and obtained all necessary Public Waters Work Permit(s) from the Department of Natural Resources, DNR, for the proposed project. 
   7. Applicant shall install signs at the required open space area at intervals acceptable to the DNR, and other applicable parties.
   8. The applicant shall submit a request for the desired residential rental density within the new low-density residential areas, and this shall proceed for review along with the ordinance amendment for rezoning, platting, etc. for the development.
   9. Bulk, height, setback, density, coverage, parking and other underlying zoning district criteria will apply to the subject lots and blocks. 
   10. Approval of this preliminary plat does not imply future approval of wetland replacement plans or planned unit developments or other future zoning requests.