Resolution vacating an alley described as part of the alley dedicated in Block 14, Map of Mankato; for preliminary plat review of Hotel Mankato Redevelopment plat; for a Conditional Use Permit to allow two hotels in the CBD-C, Central Business District Core; and for a Certificate of Design Compliance for the construction of a new, approximately 250,00 square foot development including a 168-stall underground parking garage in the Downtown Gateway Overlay District and the Downtown Design District. The subject properties are located at 101 East Main, 121 and 123 East Main, and 118 South 2^nd Street); by request of Emily Nepp with permission of the property owner(s).

At the June 26, 2024, meeting, the Planning Commission recommended the adoption of the resolution approving the vacation request, conditional use permit, and a motion approving the preliminary plat with the following findings:

Findings of fact pertaining to the requested alley vacation:

1. The owners of the affected properties have petitioned to vacate the noted portion of the alley.
2. The applicant has provided notice to the utility companies with a copy of the vacation request and has provided responses from the utility companies. Several utilities are located in the vacated alley and the applicant has provided documentation that the utilities are amenable to relocation. The applicant is responsible for coordination of utility relocation and is responsible for all costs associated with said relocations. Upon relocation of the utilities located in the alley and reconfigured truck turning movements to the satisfaction of the City Engineer's office, the alley is no longer needed for public purposes.
3. The proposed vacation is necessary for the development of the subject parcels. 

Findings in relation to the preliminary plat: 

1. General Requirements
   1. The site is designed in conformance with the location and widths of streets as no changes are proposed to the streets, the general drainage situation, lot sizes and arrangement.
   2. Drainage study information has been submitted to the City Engineer to verify compliance with the City drainage requirements.
2. Streets
   1. There are no proposed changes to the public street width or public road right of way associated with the proposed plat.
   2. The applicant has submitted a petition for vacation of a portion of the existing public alley that traverses the proposed development property. 
3. Easements
   1. The preliminary plat does not dedicate new easements as the buildings and structures encompass a large portion of the lot to the property line in several locations.
   2. The existing private telephone easement on the subject site will be vacated privately by the easement holder. 
   3. The other existing easements on the site are proposed to remain.  
4. Block Standards
   1. The one block, one lot subdivision within the subdivision was designed for the intended end use as an urban redevelopment that includes two hotel properties.
5. Lot Standards
   1. The lots within the subdivision are intended for central business district core development. The lots are designed in conformance with the standards set forth in Chapter 10.
   2. The concept plans submitted for the commercial development depict areas for off-street parking and conditions are included with the approvals that require participation in the Downtown Parking District.
   3. The concept plans submitted for the redevelopment project show off-street parking, loading and other such areas to satisfy the requirements of Chapter 10 of the Mankato City Code.  
6. Public Sites and Open Spaces
   1. The applicant will not be paying a parkland dedication fee because all parcels within the plat have previously been platted. 

Findings with respect to the Conditional Use Permit and Certificate of Design Compliance request: 

1. The proposed use, hotels, in the Central Business District Core, CBD-C, zoning district is considered a Conditional Use Permit in Mankato City Code section 10.43, subd. 3. F.
2. The request is in keeping with the comprehensive planning policies of the City as the underlying land use plan identifies this parcel as "Central Business District", which is in keeping with this request. 
3. The proposal does not interfere with or diminish the use of property in the immediate vicinity.  
4. The primary structure will continue to be served by public facilities and services, and no utility service provider changes are proposed with this proposal. 
    
5. The proposal does not cause undue traffic congestion as the proposed project. No changes are proposed to the public street system, and consideration for vacation of a portion of the alley has been submitted for consideration.  The applicant has provided traffic information that demonstrates that no new turn lanes or traffic improvements are necessary for the anticipated vehicle movements.  
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. 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 property is located in the Downtown Gateway Overlay District and the Downtown Design District and the proposed value of the project exceeds $500,000.
12. The design of building elevations conforms to the guidelines when considered with the proposed approved conditions in the underlying district as the use of stone, architectural metal and fiber cement panels and glass conforms to the standards. All sides of the building visible to the public will be treated consistently with quality materials and finishes.

The next zoning actions for this request will include an amended preliminary plat and a final plat.  

Hotel Mankato, LLC is requesting a preliminary plat review of Hotel Mankato Redevelopment plat; the vacation of an alley; a conditional use permit to allow two hotels in the CBD-C, Central Business District Core; and a certificate of design compliance for the construction of a new, approximately 250,000 square foot development including a 169-stall underground parking garage in the Downtown Gateway Overlay District and the Downtown Design District.

The property proposed for redevelopment is bordered by South 2nd Street, East Main Street and South Riverfront Drive. The current addresses associated with the redevelopment are 101 East Main Street, 121 and 123 East Main Street, and 118 South 2nd Street. 

Plans for the redevelopment project show the demolition of the present City Center hotel structure and the Landmark building on the site. In their place, Hotel Mankato, LLC is proposing a four-story extended stay Element by Westin, located at the intersection of North Riverfront Drive and Main Street, and a 10-story AC by Marriott, located at the intersection of Second and Main Streets. The two hotels will be adjoined by a common lobby with a direct connection to the existing City skywalk. The applicant's narrative outlines that the hotels will share common guest amenities, including a pool, fitness center, guest laundry, lounge spaces, business pods, and a small conference room along with shared back of house spaces. This development is also providing space for a future coffee shop on the main level and a third-party restaurant with rooftop patio space on the 10th story overlooking the Minnesota River Valley. A courtyard area located between the Element and common lobby will offer a combination of possibilities for guest grilling stations, firepit(s), and an outdoor social lounge area.

Alley Vacation
The applicant is seeking vacation of a portion of the existing through alley that runs from East Walnut Street to East Main Street. The narrative provided states that redevelopment of the property requires vacation of a portion of the alley to make best use of the site. 

Vacation of the northern portion of the alley adjacent to the following parcels is proposed: 

• R01.09.07.381.001 (located at 101 East Main Street)
• R01.09.07.381.021 (located at 118 South Second Street)
• R01.09.07.381.022 (located at 117 South Front Street)
• R01.09.07.381.009 (located at 119 South Front Street)

All the affected property owners adjacent to the alley have signed the required City Petition form and agreed to the vacation. The proposed vacation would result in a private alley with a proposed entry and exit from Walnut Street. The applicant's narrative outlines that approval of the alley vacation is required to achieve the proposed integrated site design.

The proposed 15' alley vacation depicts half of the alley, 7.5 feet, being included in the hotel redevelopment project. This 7.5 feet is shown on the newly proposed plat as part of the Hotel Mankato Redevelopment Lot 1, Block 1. The remaining 7.5 feet will revert to the adjacent abutting property owner, Maes.

The applicant has indicated that they have been working with utility and infrastructure providers that have current infrastructure in the area of the proposed alley vacation. The applicant has provided documentation that the affected utility providers on plans to relocate infrastructure affected by the proposed project. 

Preliminary Plat
The applicant is proposing a preliminary plat, which combines the underlying nine parcels into one new subdivision. The Hotel Mankato Redevelopment plat proposes a one lot, one block subdivision that encompasses 2.02 acres, which includes the proposed portion of alley vacation.  

The proposed plat shows a, "Telephone Easement Shown on Key City Renewal Fifth Add." The applicant has provided documentation that the holder of the subject easement is willing to release the subject easement and will be provided a quit claim deed as a legal measure to address the area. 

Streets or new public dedications are not proposed with the subject plat. Rather, in order for the platting to occur, the concurrently proposed alley vacation will need to be approved. 

The proposed plat achieves the underlying CBD-C, Central Business District Core, standards, which require a minimum lot area of 6,000 square feet and a minimum lot frontage of 44 feet. The total area of the proposed lot is over two acres, and the frontage along 2nd Street, where the new access is proposed, is 192 feet. 
A traffic impact statement has been provided by the applicant. The memorandum uses ITE Trip generation modeling for a hotel in a dense multi-use urban area, and estimates that the site is anticipated to generate up to 87 trips during the peak hours of the adjacent street traffic. For reference, MnDOT’s turn lane policy at urban intersections is that turn lanes should be considered whenever construction is economically feasible, taking into account amount of right of way needed, type of terrain, and environmentally or culturally sensitive areas. Constrained right-of-way limits for turn lanes and right-of-way acquisition would be required to construct a right-turn lane, assuming the existing sidewalk widths and neutral offset left-turn lanes are maintained. MnDOT also provides turn lane warrants for undivided roadways, several of which are not applicable to low-speed roadways (less than 45 MPH). Of those that are applicable to South 2nd Street, adverse road grades, limited sight distance, and nearby railroad crossings are not present to warrant a right-turn lane. Therefore, turn lanes are not warranted for the development due to the low (30 MPH) travel speeds and low proposed volumes (373 vehicles, one-way, during peak hour) on South 2nd Street.

Parkland dedication is not required because the subject properties had been previously been platted. 

Conditional Use Permit 
The subject property is located in the CBD-C, Central Business District Core where Mankato City Code section 10.43 outlines hotels and motels as conditional uses.  

Plans submitted for the redevelopment project show the demolition of the existing structures on the lots, and construction of a 126 room, four-story hotel at the intersection of North Riverfront Drive and Main Street and the construction of a 10-story, 156 room hotel at the intersection of Second Street and Main Street. 

Site plans show new site access from 2nd Street to a common hotel lobby area and common hotel amenities. A circular driveway area is shown which provides access to the hotel lobby area is shown on the site plan. On the southerly, exiting side of the circular drive, access to a below grade parking area is shown. Nine surface parking stalls are also shown on the site plan. A landscaping feature is shown at the hotel entrance area, and other raised planters are shown at the new access point from 2nd Street. 

The site plan represents a centrally located open courtyard area that is accessed from steps on the westerly/Riverfront Drive side of the property, and from the shared lobby area. The applicant's plans present that this will be an area used for hotel use only, and a plan represents "private programming" in this area. Specifically, the narrative references such uses as guest grilling stations, firepit(s), and an outdoor social lounge area for hotel guests, while a public walkway connecting to Riverfront Drive is maintained with access from the stairs. 

To accommodate the change in elevations between the properties, a retaining wall is shown on the property near the intersection of 2nd Street and Main Street and the renderings show the wall to be made of brick and limestone. The retaining wall encloses the outdoor gathering area on this side of the subject property. A retaining wall is also proposed along the southerly property line in the area where the current alley is being vacated to accommodate the difference in elevations on the site. 

Transformer pads and generators are shown on both the Main Street and Riverfront Drive sides of the property. The applicant has indicated that screening by way of vegetation and fencing will be provided for these areas. 

Tree grates are represented on the site plans for tree areas in the public right of way. The Site Plan and Traffic Advisory Committee provided the applicant with feedback that indicated that all boulevard trees removed from Walnut Street will need to be replaced at a 2:1 ratio. The applicant has responded affirmatively that they are replacing the trees at a 2:1 ratio. However, the applicant suggests that there are no viable tree locations along Walnut Street and instead proposed to replace the trees along Riverfront Drive where a green open space is proposed. A recommended condition is included herein that recommends that the applicant work with the City of Mankato Public Works department on acceptable measures for tree removal and potential replacement. 

Site plans do not represent the current bus stop on Main Street, and during the Site Plan and Traffic Advisory Committee review, the applicant was made aware that the subject bus stop would be required to be replaced along Main Street. The applicant has subsequently indicated that they will be providing a new, city-approved bench for the bus stop and other required ADA enhancements. A recommended condition is included herein to address the reinstallation of the bus stop at its current location. 

The parking information provided shows the total parking required for the development is 367 parking stalls. The on-site parking provided as proposed is 169 stalls in the underground parking garage and nine surface lot parking stalls for a total of 178 onsite parking stalls. For hotels, the Mankato City Code requires one parking space per hotel unit, plus one space per four ceases located in an accessory restaurant and/or lounge and one space per two employees. For this proposal, the 10-story hotel contains 156 hotel rooms, which requires 156 parking stalls. The applicant has indicated that, while floor plans laying out the seating for the restaurant/lounge/coffee shop areas are not yet available, the maximum seating in those spaces will be 280 for a total parking requirement of 70 parking stalls. The 10-story hotel has a total employee count of 24, thus a parking requirement of 12 parking stalls for employees. The four-story hotel has 126 rooms, which require 126 parking stalls. There are six employees proposed for the four-story hotel, which requires three parking stalls. In sum, the total parking required for the development is 367 stalls, of which 178 are provided by onsite parking. The applicant is proposing to petition the Downtown Parking District to provide the remaining required 189 parking stalls. A recommended condition is included herein that limits seating in the accessory restaurant and lounge spaces to the parking available and the parking provided for through the petition to the Downtown Parking District. 

The applicant has indicated that there will be no event space within the development, which has the potential to create additional parking demand. A recommended condition is included herein that future review and approval, by way of a conditional use permit amendment, will be required if events are desired in the future. 

The Mankato City Code, section 10.85, requires bicycle parking at a rate of 5% of required parking stalls. Thus, available bicycle parking for the development is 19 stalls. To meet the code requirement, 19 bicycle parking spaces are shown on the plans; four racks to hold nine bicycles are shown near the lobby entrance, four racks to hold nine bicycles are shown near the outdoor patio area on 2nd Street, and a bike rack is also shown on the Main Street side of the development to hold two bicycles. 

Mankato City Code, 10.88 subd. 7, provides the screening requirement for the loading and unloading area stating every off-street loading area visible from any lot zoned for residential use or visible from any public street, shall be screened on all sides visible from such lot or street by an opaque fence, wall, or densely planted evergreen hedge of not less than six (6) feet in height, except as necessary for access. The site's receiving and trash area, including a loading dock, is shown on the Main Street side of the subject development. The applicant has indicated that all trash and receiving will be located inside the principal building and will not be viewed from the public right of way. They have further stated that access doors are placed perpendicular to the street to minimize visibility. The applicant has clarified that the trash compactor and recycling bins will be located within the trash room within the main building. Recycling bins will be wheeled out of the building for pickup as needed. Trash can be accessed via forward approach through an overhead door on the west side of the trash room.  

An additional trash enclosure is shown on the southerly side of the development. This dumpster enclosure is proposed to serve the existing business located at 117 and 119 South Front Street. 

The applicant has provided a snow storage plan that contemplates temporary snow storage areas that will be utilized during snow events. The applicant's narrative states that the applicant will have all temporary snow stored on the site and hauled away within 72 hours of any snow event. 

A truck turning template has been provided for trucks accessing the site. A recommended condition for movements of trucks entering the loading dock area, and movements of trucks on Walnut is included herein. The recommended condition outlines that necessary improvements to the public ways need to be made to accommodate truck turning movements at the direction of the City Engineer's office. 

The lower-level floor plans show a parking garage with 169 parking spaces, and a connection to the City's parking garage as it currently exists under the City Center hotel. A recommended condition is included herein that prior to submission of a building permit, an executed operating agreement for the tunnel connection to the existing garage be in place. 

In addition to the lobby area, the first floor plans show a skyway connection to the existing City skyway, a market area, a lounge, coffee shop, and kitchen, a receiving area, trash area, mechanical areas, laundry area, boardroom and meeting rooms, along with hotel rooms.
Floor plans for the second floor of the two hotels show a shared pool, fitness area and breakfast area, and hotel rooms on each side. The 3rd and 4th floors of the Element, the hotel at South Riverfront Drive and East Main Street, and the 3rd through 9th floors of the AC Hotel, located at East Main and South Second Street, show hotel rooms. The 10th floor of the AC Hotel shows a restaurant, and two rooftop deck areas. 

In the CBD-C, Central Business District Code, the maximum Floor Area Ratio, FAR, is 4.0, and the proposed development is under the maximum level of 2.81. The FAR represents the floor area of the building, or buildings, on a lot divided by the area of that lot, which in this case is 248,404 of total building area divided by the lot size of 88,428 square feet. 

Certificate of Design Compliance
The subject property is located in the Downtown Gateway Overlay District and the Downtown Design District requiring a certificate of design compliance. To ensure that development activity will enhance the visual and aesthetic character of the gateway district in accordance with the Urban Design Guidelines, review of the new buildings and demolition of structures requires a review by the Planning Commission and City Council. 

Setback standards for structures are provided in the Downtown Gateway and the Downtown Design Districts. The minimum front yard building setback shall be zero (0) feet, and the maximum shall be fifteen (15) feet from the right-of-way or roadway easements in the Downtown Gateway District, and the minimum and maximum setback shall apply to both frontages on a corner lot. The noted setbacks are achieved on the Main Street side of the property, and the applicant is proposing that the outdoor patio area and retaining wall system, as a part of the building access, will be used to achieve the required front yard setback on the 2nd Street side of the subject property. The Code indicates that no side or rear yard building setback is required, provided the building conforms to the Minnesota State Building Code and a common wall agreement is entered into between the property owners along a shared property line. There are areas on the rear/south side of the subject development that show a slight encroachment of the proposed curbing/driving surface. A recommended condition is included herein that at the time of building permit submittal, a common wall agreement, encroachment agreement or other applicable documentation is provided that demonstrates that the adjacent properties have provided their consent for any shared walls, encroachments, or the like.

There is not a maximum height standard for the applicable districts. The proposed height of the structure is approximately 127'. An additional 8' potential height is shown on the exterior elevations. The applicant has stated that this is a buffer to accommodate small changes in building height as the design progresses. The elevation notations go on to say that as the structural system is being refined, it could add 4 to 8 inches per floor. This buffer will ensure the final design solution is within the early-stage design parameters. The Downtown Gateway standards, relative to mass and height, state that development proposals should not degrade the appearance or function of other buildings in the area due to the new development's building mass and/or height. The applicant's rendering depicts the building in the context of the adjacent buildings, and it appears to be similar to the other redevelopment projects already completed in the general area. The exterior elevations depict 8' tall mechanical equipment and screening on the top of the 10-story structure. In order to achieve Code standards, all mechanical equipment located on the roof of any building constructed after the effective date of this chapter and exceeding six (6) feet in height shall be completely screened to the full height of such equipment by a parapet wall or other screening structure constructed of the same or similar materials as the principal building facade. A recommended condition is included herein that requires mechanical screening in accordance with Mankato City Code standards. 

The Downtown Gateway Overlay, the Downtown Design District and the Central Business District Core provide allowable exterior building materials and note that building materials should consist of traditional high-quality materials. Mankato City Code section 10.51 provides that brick and mortar, cut limestone or other natural stone, pre-cast concrete and concrete block with specifications, synthetic stucco and architectural panels, glass and weather-resistant metal accent or other metal determined to satisfy the intent of the code section are allowable. Exterior finishes shown on the proposed hotels include a combination of limestone veneer, metal and fiber cement architectural wall panels and glass finishes. 

The district standards, section 10.51 subd. 6.B., indicate that colors are an important element of the overall design concept for the downtown area and should be complementary to the Downtown Design District's showcase building, the Mankato Civic Center/Arena, or other historic and significant buildings in the vicinity. The proposed development incorporates limestone in a color similar to those historical properties located in the Downtown Core. The other proposed color elements are earth tones, including white, gray, and black architectural wall panels. A wood-like finish is proposed for panels on the four-story portion of the redevelopment project, and a wood-like metal soffit is proposed on the V-shaped roof structure on the 10-story hotel space. ACM, architectural metal panels, in gray metallic and other varying degrees of gray and metallic, are proposed. The coloring scheme as represented on the exterior rendering appears to be in keeping with the coloring scheme of the adjacent existing structures. 

The Downtown Design District criteria in Mankato City Code, section 10.51, indicate that architectural features which create a sculptural or three-dimensional quality, such as marquees, balconies, grill work, sculpted keystones, caryatids, detailed cornices, brackets, niches, and awnings are encouraged. Such ornamentation also furthers the urban design goal of adding scale and texture to the district. However, these features should be in keeping with the overall architectural style of the building and the character of the Downtown Design District. The applicant's narrative outlines that the hotel is broken into four ‘primary masses’ to present a diverse experience to visitors and compliment the surrounding urban scale. The primary masses include AC hotel (10 stories), Element hotel (four stories), shared lobby and shared receiving link (two stories). At street level, there is a consistent stone ‘base’ of the building which is intended to relate the structure to the pedestrian scale. This stone base is capped with an articulated cornice which provides dimension to the façade. The three-dimensional qualities are further enhanced by the undulation of the north and south facades (i.e. bump outs/ins of exterior walls and changes in parapet heights). Changes in materials visually separate portions of the structure, adding interest and an appropriate scale to the building. The rooftop restaurant at the Northeast of the site has a large patio space at each end (East and West) with railings, presenting a visual cue that pedestrians can occupy the space. The building mass at the 10th level steps back, mitigating a “blocky” profile in the Mankato skyline. Lastly, the butterfly roof profile with wood-looking soffit material is a distinctive sculptural element and texture in the urban environment. 

The Downtown Design criteria states that several areas in the district serve as gateways to the downtown area. The standards go on to state that these visual connections serve as visual access between structural elements in the downtown area (for example, South Riverfront Drive in the vicinity of the Depot and Civic Center), and visual connections between the downtown core and adjoining land use districts or significant buildings located outside the area (for example, Jackson Street, which serves as a visual connection between Mankato Place and the Old Main Building) that visual connections and gateways are important to the perception of the downtown areas and development proposals shall be reviewed on the basis as to how the corridors and gateways will be impacted. New landscaping, building construction, or building alteration, shall be designed to not unduly block or compromise connections or gateways. This proposal seeks to perpetuate the connections between the adjacent properties by continuing the public skyway corridors between the Civic Center to the new hotel lobby spaces. Pedestrian access routes are maintained around the new development, and the current roadway network is proposed to remain similarly as is currently existing. 

Landscaping and lighting plans have been provided for the new proposed development. Landscaping treatments incorporate open areas in both the open plaza along Main/2nd Street and the interior courtyard open area. These areas are shown to be landscaped with a combination of landscaping treatments such as trees and raised landscaping planters for plantings. The landscaping plan does depict irrigation in the public right of way areas and a condition is included herein that requires a license to encroach for those lines and other encroachments into the public right of way. The proposal achieves Code standards for the Downtown District, which indicate that new developments in the Downtown Design District will incorporate open areas accessory to the main building. Courtyards and plazas are encouraged. As far as practical, open areas shall be landscaped with a combination of trees, shrubs, flowers and ground cover, decorative wrought iron fencing. Lighting plans have been submitted and incorporate a combination of fixtures and lighting types, including decorative lighting in the open courtyard area. Section 10.51 subd. 6. E states lighting standards along sidewalks or in open spaces and plazas shall be similar to lighting standards found along Hickory Street in the vicinity of the Mankato Civic Center and Arena. Lighting standards in parking lots and lots illuminated by building surface mounted lights may use an alternative fixture with the approval of the Planning Director. Decorative standards are encouraged for parking lots, but a "shoe box" type fixture or other fixture may be approved provided it does not exceed forty (40) feet in height. 

The applicant has submitted a construction staging plan and a temporary lane closure plan. The plans show a temporary chain link fence around the subject development site, along with 24' sliding gates on each side of the proposed project. A street lane closure, delineated with concrete barriers, is shown on the East Main Street side and a portion of the 2nd Street side of the development. The applicant has indicated that one traffic lane surrounding the proposed development will be closed during construction for approximately 18 months and additional short-term traffic control will be required for utility connections.  A tower crane is shown to be located centrally on the site for construction lifting purposes and staging areas are shown on each street side of the development.