CY11-25

Request of the Planning Agency to review Mankato Development District No. 48 Plan (“Plan”) to determine conformity of said plan to the General Development Plan for Development or Redevelopment of the Municipality as a whole. The Plan is proposed in conjunction with the redevelopment of property for a 2-story commercial building comprising of 6,784 square feet. Planning Commission review of the Plan is a prerequisite requirement for the City to approve the use of tax increment financing assistance to aid development of the project. The subject property is addressed 824-830 N. Broad Street.

The anticipated date of City Council action is April 14, 2025. 
 

The applicant is the Planning Agency.

The applicant is requesting to review Mankato Development District No. 48 Plan (“Plan”) to determine conformity of said plan to the General Development Plan for Development or Redevelopment of the Municipality as a whole. The Plan is proposed in conjunction with the redevelopment of property for a 2-story commercial building comprising of 6,784 square feet. Planning Commission review of the Plan is a prerequisite requirement for the City to approve the use of tax increment financing assistance to aid development of the project.

The subject property is located at 824-830 N. Broad Street.

The property is currently the location of two vacant lots and a third lot with a vacant commercial structure.

The subject properties are zoned B-1, Community Business District.

The Planning Commission reviewed a Conditional Use Permit, Certificate of Design Compliance, and three variances at their May 2023 meeting. Final action on that request occurred at the June 12, 2023, City Council Meeting. (CY24-23)

The applicant request to review Development District No. 48 in February of 2024, but withdrew their application prior to review by the Planning Commission. (CY14-24)

The The Planning Commission reviewed an Amendment to the previously approved Certificate of Design Compliance and a review of an approved variance at their January 22, 2025 meeting. Final action on that request occurred at the February 24, 2025 City Council Meeting. (CY01-25)

There are no known environmentally sensitive areas on the site.

The site is currently served by public utilities and the new proposed development is also proposed to be served by public utilities.

On May 24, 2023, the Planning Commission reviewed the conditional use permit, certificate of design compliance, and three variances to allow for the redevelopment of the properties located at 830 N. Broad Street. This was done to allow apartments above the ground floor of a new commercial structure, which exceeds 10,000 square feet, in the B-1, Community Business District, for a new structure located in the Highway Gateway Overlay District, to reduce the front yard building setback on the Madison Avenue side of the property from 15 feet to .92 feet, to reduce the front yard parking setback on the Madison Avenue side of the property from 15 feet to 4.29 feet, and to reduce the front yard parking setback on the Broad Street side of the property from 15 feet to 11.15 feet. The request was subsequently reviewed and approved by the City Council at their June 12, 2023, meeting.

In February 2024, a review of Development District No. 48 was requested. The request was then withdrawn prior to review by the Planning Commission.

On January 22, 2025, the Planning Commission reviewed an amendment to the Certificate of Design Compliance and an updated variance. This was done to allow a new structure located in the Highway Gateway Overlay District and for a review of a previously approved variance to reduce the front yard building setback on the Madison Avenue side of the property from 15 feet to .92 feet. The request was subsequently reviewed and approved by the City Council at their February 24, 2025, City Council meeting.

The proposed project is the redevelopment of three properties, including two vacant lots and a third lot with a substandard building to include construction of a new two-story multi-tenant commercial office building. 

The level of private investment associated with the redevelopment is approximately $1,631,111. Financing of specific activities with tax increment revenues and other public and private sources of funds will occur following the review and approval of the project, Development District Plan, Tax Increment Financing Plan, and Development Agreement by the City.

The City of Mankato has received a request from the developer to consider financial assistance in the form of tax increment financing (TIF) to off-set the redevelopment costs. The Development District is subject to Planning Commission review, not the tax increment district. Approval of the creation of the TIF District, Development District and development agreement are under the purview of the City Council, which will be considered at a future public hearing held by the City Council.

The map in Section C, "Development District No. 48" of the Development District Plan outlines the proposed development district area. This area includes the vacant commercial building at 830 N. Broad St, two vacant lots, the parking area in front of 830 N. Broad Street, a portion of the Alley for the Western 800 Block of N. Broad Street, the eastbound extent of Madison Avenue between the aforementioned alley and the easternmost extent of the N. Broad Street Right-of-Way, and the extent of the N. Broad Street Right-of-Way between Madison Avenue and 822 N. Broad Street.

The creation of Development District No. 48 allows the use of tax increment financing (TIF) to fund eligible redevelopment costs. The Development District that encompasses the area shall include the entirety of all street or utility rights-of-way located upon or adjacent to the subject property. 

The Development District Act, Minnesota Statutes, sections 469.124 to 469.133, requires that areas proposed for development district designation must be found to be located in areas of the community that are “already built up”. For the following reasons, the proposed Development District qualifies:

1. The vicinity of the Development District is urban. Existing land uses in the vicinity include a commercial office. Zoning in the vicinity corresponds to the land use pattern.
2. City sanitary sewer, storm sewer, and water lines are available throughout the Development District and surrounding vicinity.
3. The vicinity of the Development District includes existing City streets and roadways.
4. The City’s comprehensive plan has designated the Development District as an area for mixed-use development.

Minnesota Statutes, section 469.126, subdivision 2, in part, authorizes a municipality to accomplish the following activities: “Within these districts the municipality may adopt a development program consistent with which the municipality may acquire, construct, reconstruct, improve, alter, extend, operate, maintain or promote developments aimed at improving the physical facilities, quality of life and quality of transportation. The municipality may acquire land or easements through negotiation or through powers of eminent domain.”
 
Activities proposed within Development District No. 48 will assist private property redevelopment to include construction of a new multi-tenant commercial office building, which accomplishes the goals of preventing blight, creating employment opportunities, enhancing the tax base, and improving the general economy of the community and state.

Minnesota Statues, sections 469.124 to 469.133, authorizes the City a broad array of powers to undertake a Project. The city will perform all Project activities pursuant to the statute and in doing so anticipates that the following activities may be undertaken:

1. Acquisition. The City may acquire property for the development of public improvements and private projects. Land acquisition will be completed within the requirements of the Uniform Acquisition and Relocation Act.
2. Site preparation and construction of buildings. Properties acquired by the City may be prepared for development, which may include street, curb, gutter, bituminous, flood prevention improvements, subsoil correction, and the establishment of greenways, walkways, and common access corridors. In addition, the city may choose to construct new facilities.
3. Incentives for private development. The City may provide financial incentives for the redevelopment and/or expansion of mixed-use developments.
4. Public improvements. The city may construct public facilities such as streets, traffic signals, sanitary sewer, storm drainage improvements, including the separation of storm and sanitary sewers, waterlines, parking, and such other facilities as it deems necessary and desirable for the implementation of the Project.
5. Maintenance. Maintenance of improvements undertaken by the city may include the improvement to public lighting, streetscaping, parking, signs, traffic control devises, and pedestrian improvements.

It is not under the Planning Commission's purview to determine whether the project is eligible for project financing. Rather, the Planning Commission is requested to consider adoption of a resolution stating that the objectives of the development district comply with the general planning objectives of the City of Mankato. 

Staff respectfully submits the following findings of fact:

1. The proposed development district conforms to the goals for commercial areas in the Land Use Plan.
2. The proposed development district conforms to the locational criteria as listed in the Land Use Plan. 

Staff recommends approval of Development District No. 48 and recommends adoption of said resolution.