CY20-25

Request of Big Blue Hospitality, LLC, with permission of the property owner, for a Land Use Plan amendment to change the guided land use from Public-Semi Public to Central Business District. The subject properties are described as Lots 1, 2, 3, 8, 9, 10 and the northerly 19 feet of Lot 7, all in Block 30, including all vacated alleys, Map of Mankato, and the northerly 19 feet of Lot 7, Block 9, Warrens Addition to Mankato, Blue Earth County (Blue Earth County PID R010918107001, 401 S. 2^nd Street).  

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

ISG on behalf of Big Blue Hospitality, LLC. 

Big Blue Hospitality, LLC is requesting a land use amendment to change the land use designation of the property from public-semi-public to central business district to allow for the redevelopment of the existing post office. 

The subject properties are described as Lots 1, 2, 3, 8, 9, 10 and the northerly 19 feet of Lot 7, all in Block 30, including all vacated alleys, Map of Mankato, and the northerly 19 feet of Lot 7, Block 9, Warrens Addition to Mankato, Blue Earth County (Blue Earth County PID R010918107001, 401 S. 2nd Street).   

Current land use is public-semi-public. 

The property currently has split zoning. The building is zoned CBD-C and the rear parking lot is zoned OR.

No known environmentally sensitive areas are present. 

Public infastructure currently serves the property. 

The Mankato City Code section pertaining to this request can be viewed below. 
https://library.municode.com/mn/mankato/codes/code_of_ordinances?nodeId=CH10LAUSZO_PTVCODI_S10.43CCEBUDIRE

The Site Plan Review Committee met on May 13th, 2025 and submitted the following comments. 

1.  The applicant shall be aware that any potential project would require the entire building to be protected by sprinklers.
2. The applicant’s site plan shows alterations to Jackson Street; these shall be coordinated with Public Works and the Engineering Department at an appropriate time during project development in addition to storm water calculations.
3. The applicant shall be aware that there will be connection fees (WAC & SAC) that will be assessed and a recalculation on meter service depending on future use.
4. The applicant shall be aware that private parking on Jackson Street will not be allowed.

The City of Mankato has received a request for a land use amendment for the redevelopment of the existing post office.

Per the Land Use Amendment process, ISG hosted a neighborhood meeting on March 31, 2025, to discuss task 1 and task 2. An additional meeting was held on April 3, 2025, to discuss task 3. Additionally, the applicant has conducted a traffic study and submitted the study in the application packet.

Land Use
The City of Mankato Land Use Plan is utilized for guiding and accomplishing a coordinated, adjusted, and harmonious development of the city and its environs which will, in accordance with present and future needs, best promote health, safety, order and general welfare. As a guideline, the Land Use Plan is not a zoning document. The policies, goals, and objectives are complimentary to the City of Mankato Comprehensive Plan and the City of Mankato Strategic Plan. The Land Use Plan is intended to promote efficiency and economy in the process of development, including, among other things, adequate provisions for traffic; the promotion and protection of environmentally sensitive areas, distribution of population, providing housing alternatives; the promotion of good civic design and arrangement, efficient expenditure of public funds; and the adequate provision of public utilities and other public requirements.
There are two components to the land use plan, which are text and the map. The text provides policies, goals, and objectives. In addition to the policies, goals, and objectives, the Land Use Plan includes location criteria for each of the land use classifications.
The proposed land use plan changes should address the items listed in the land use plan under the policies, goals, and objectives. For this request, the applicant is proposing to change the property which has the land use classifications from public-semi-public to Central Business District.

Proposal
The applicant is proposing to amend the Land Use Plan from Public-Semi-Public to Central Business District for the redevelopment of the existing Post Office. The area proposed is bordered by three public roads: Broad St. to the West, Jackson St. to the North, and Broad St. to the East. The parcel number for this proposal is R01.09.18.107.001.

The applicant is proposing a redevelopment scenario which would include a restaurant, event center, roof deck patio, and office space. A new hotel and parking ramp is proposed on the eastern portion of the property adjacent to Broad St.

To engage the community, the applicants hosted two neighborhood meetings on March 31^st and April 3^rd, to discuss the project with adjacent property owners. No residents were in attendance and no negative feedback was received.

A traffic study was submitted with the application.

A public transit stop is located within walking distance to provide transportation services for the proposed use.
The applicant submitted the following responses to the goals of the City of Mankato Land Use Plan.

1. Retain and enhance the character and quality of established areas and revitalize, rehabilitate or redevelop areas where such improvement is required or requested.
   • The proposed redevelopment will revitalize an underutilized property in the Central Business District. The adaptive reuse of the historic post office building preserves its architectural character while bringing new economic and social vitality to the area. The addition of a hotel and parking garage further enhances the vibrancy of the district, supporting tourism and local businesses.
2. Promote adequate housing alternatives for all income levels and age groups.
   • While this project does not include residential development, it indirectly supports the city’s housing goals by strengthening the Central Business District. The addition of a hotel provides temporary lodging options that complement the city’s residential neighborhoods and offers accommodation for visitors, business travelers, and event attendees.
3. Encourage the orderly growth of the community.
   • This redevelopment supports the city’s vision for growth by aligning with Mankato’s comprehensive plan and economic development strategies. The transition to a Central Business District designation allows for a more cohesive and sustainable expansion of downtown commercial activities.
4. Promote infill development for the purpose of obtaining the maximum utilization of existing infrastructure.
   • This project promotes infill development as it repurposes and existing structure and parking lot within a developed area. The use of existing water, sewer, road, and utility infrastructure reduces the need for costly new expansions and maximizes urban land efficiency.
5. Promote the preservation of ravine, bluff lines, wetlands, woodlands and other environmentally sensitive areas.
   • The Proposed redevelopment will take place in an already developed urban setting, ensuring no impact on environmentally sensitive areas. Sustainable building practices and landscaping will be incorporated where feasible to enhance environmental quality.
6. Encourage landscaping and the attractive design of public and private developments.
   • The redevelopment will incorporate high quality architectural design, site landscaping, and streetscape improvements consistent with the downtown design guidelines and to maintain an inviting pedestrian environment.
7. Promote complementary land uses and minimize incompatible land uses.
   • The transition to a Central Business District designation ensures compatibility with surrounding downtown uses. The proposed restaurant, event center, hotel, and parking are consistent with the downtown land use patterns and will help enhance the area’s economic growth.
8. Promote efficient use of municipal services.
   • The proposed redevelopment will be adequately served by existing public infrastructure, including roadways, water, sewer, and emergency services. Any necessary upgrades will be coordinated with city staff.
9. Designate adequate vacant land to allow for the growth of residential, commercial and industrial areas.
   • By utilizing an underused parcel with the downtown area, this amendment helps ensure that vacant land in other areas can be preserved for future residential or industrial needs.
10. Promote the orderly extension of streets and the development of pedestrian/bike corridors.
    • The project is located within close proximity to existing sidewalks, access to bike routes, and transit which will enhance pedestrian activity in the downtown area. The redevelopment of Jackson Street will also provide better pedestrian and bike corridors, which will contribute to reaching this goal.
11. Stabilize property values by promoting the application of effective land use controls and development standards.
    • Redevelopment will increase the value of a key site, create economic activity, and promote continued investment in the surrounding area, helping stabilize and enhance adjacent property values.
12. Encourage and promote innovations in development techniques in order to obtain maximum livability and excellence in planning and design for all new developments.
    • The adaptive reuse of the post office building demonstrates innovative development techniques that balance historic preservation with modern commercial functionality. The design of the new hotel and parking garage will incorporate contemporary planning principles that enhance urban livability.
13. Promote, maintain, and preserve parks and open space.
    • White the project does not directly include new park space; it supports downtown activity and economic growth. Streetscape enhancements will contribute to a more inviting and pedestrian-friendly urban environment.

Staff submit the following findings of fact that the Land Use Plan Amendment conforms to the following goals of the Land Use Plan and future review of development proposals will be conditions to the following: 
 

1. Promote quality building design standards. The reuse of the historic post office building preserves the architectural character of the area and will incorporate new architectural designs that will harmonize with the surrounding built environment.
2. Support the goals and objectives of the Mankato Area Transportation and Planning Study and Parks and Open Space Plan. The property is in proximity to a public transit stop. The development will incorporate high-quality landscaping and streetscape improvements. As well as contributing to a more pedestrian-friendly urban environment.
3. Retain and enhance the character and quality of established residential neighborhoods and revitalize, rehabilitate, or redevelop those neighborhoods where such improvements are needed. The future development will revitalize an underused property in the center of Mankato’s business district. Preserving the historic integrity of the post office building and introducing new economic and social vitality with a hotel and parking garage addition. The development aims to support and promote tourism and local businesses.
4. Encourage and promote innovations in development techniques in order to obtain maximum livability and excellence in planning and design for all new developments. The reuse of the post office demonstrates urban preservation while also introducing modern commercial functionality. The proposed hotel and parking garage designs will integrate contemporary principles that encourage urban livability.
5. Provide multi-modal transportation connectivity between destination points and high-density developments. The property is in proximity to existing sidewalks, access to bike routes, and public transportation stops which will encourage pedestrian and vehicle transportation in the downtown area.
6. Promote infill development. Infill development is the main objective of the land use amendment in order to repurpose an existing property within a currently developed area. The redevelopment of the east parking lot into a future hotel and parking garage will make use of a currently vacated lot.

 
Additionally, staff submit the findings that the proposed Land Use Plan amendment conforms to the following location criteria for designating commercial property in the Land Use Plan. 

1. The property is adjacent to an existing low and medium-density residential neighborhood, commercial, and office residential.
2. The property is adjacent to a principal arterial or connections to a principal arterial via minor arterial or collector streets via 2^nd Street, Broad Street, and Jackson St.
3. The property is served by public transportation. There is a public transit stop within walking distance.

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, staff recommend the following: 

1. Any future approvals shall be completed in conformance with the permitting requirements such as replatting, rezoning, dedication or right of way, vacation of any easements, and planned unit development review. 
2. The submitted traffic study will be reviewed by staff to see if any traffic improvements are required. The applicant may be required to be a willing petitioner in those improvements. 
3. The building should conform to the historic facade easement that has been placed on the property.