CY28-25

Request of Trellis, with permission of the property owner, for a rezone of the subject properties from M-1, Light Industrial, to O-R, Office Residential; for a preliminary and final plat review of Mankato Housing LP subdivision; for a planned unit development; for the vacation of alleys generally described as a 15-foot wide public alley running east-west in said Block 17 lying between the easterly line of Minnesota Department of Transportation Right of Way Plat No. 07-29 and the westerly line of a 15-foot public alley running north-south between Linder Avenue and Sibley Parkway, together with a 15-foot wide public alley running north-south in said Block 17 lying between the north line of Linder Avenue and the south line of Sibley Parkway; for the vacation of a portion of Sibley Parkway street, dedicated as Patterson Avenue, on the plat of Oakwood Addition and being generally described as located between Poplar Street and the Abandon Chicago, Milwaukee and St. Paul Railway, an area containing 15,221 square feet, more or less. The subject properties are generally described as the north 46.66 feet of south half of Block 17, Oakwood Addition, all of Chicago, Milwaukee, St. Paul and Pacific Railroad Company’s 25-foot-wide property in Block 17, All of Block 17 West of the Chicago, Milwaukee and St. Paul Railway except the north 46 2/3 feet of the south ½ of said Block 17, all according to the map of Oakwood Addition, Outlot A, Sibley Parkway No. 2, City of Mankato, Blue Earth County. (Blue Earth County PIDs R010813253001, R010813253002, R010813253010, etal, 750 Linder).
 

The applicant is Trellis, with permission of the property owner.

The applicant is requesting a rezone of the subject properties from M-1, Light Industrial, to O-R, Office Residential; for a preliminary and final plat review of Mankato Housing LP subdivision; for a planned unit development; for the vacation of alleys generally described as a 15-foot wide public alley running east-west in said Block 17 lying between the easterly line of Minnesota Department of Transportation Right of Way Plat No. 07-29 and the westerly line of a 15-foot public alley running north-south between Linder Avenue and Sibley Parkway, together with a 15-foot wide public alley running north-south in said Block 17 lying between the north line of Linder Avenue and the south line of Sibley Parkway; for the vacation of a portion of Sibley Parkway street, dedicated as Patterson Avenue, on the plat of Oakwood Addition and being generally described as located between Poplar Street and the Abandon Chicago, Milwaukee and St. Paul Railway, an area containing 15,221 square feet, more or less. 

The subject properties are described as part of Block 17, Oakwood Addition, City of Mankato (Blue Earth County PIDs R010813253001, R010813253002, R010813253010, etal, 750 Linder). 

The existing uses are two vacant lots and a roadway.

The properties are currently zoned M-1, Light Industrial. 

There are no known environmentally sensitive areas.

The subject properties will be served by City Utilities.

Trellis is requesting a preliminary and final plat review of Mankato Housing LP; a rezone of the proposed Lot 1, Block 1 from M-1, Light Industrial, to O-R, Office Residential; for a planned unit development; for the vacation of a 15-foot wide public alley running east-west, together with a 15-foot wide public alley running north-south; and for the vacation of a portion of Sibley Parkway. 

The applicant intends to develop a 40-unit supportive housing complex within a three-story apartment building, providing permanent housing for individuals and families experiencing or at risk of homelessness. 

Associated with the Land Use Plan Amendment, LUPA, approved by the Planning Commission on 04/23/2025, a traffic study was submitted with the LUPA application. A traffic report was developed for the year 2028 build conditions which has a 1% growth rate, which is consistent with forecasted growth within the MAPO 2045 Transportation Plan. The 1% estimate is considered a relatively conservative estimate for analysis purposes as the study area has been historically steady or decreasing over the last 10 years. The traffic study shows that, as the results of the year 2028, build capacity analysis indicates that all study intersections and approaches are expected to continue to operate at an acceptable LOS C or better during the typical weekday a.m and p.m peak hours; minimum changes to intersection delays and queues are expected. A condition was included with the LUPA that the applicant would be a willing petitioner to proposed future intersection improvements. 

A public transit stop is located on the block to provide transportation services for the proposed use. The primary access to the development will be off of Poplar Street.
 

Preliminary and Final Plat
The proposed Mankato Housing LP subdivision contains one lot on one block and an outlot. In addition, the proposed subdivision dedicates a new portion of Sibley Parkway, which will align the current portion of the street with the intersection of Poplar Street, replacing the existing platted area of Sibley Parkway that runs East-West and is unimproved through the proposed project area.

Block one of the subdivision contains one 1.77-acre lot and encompasses the entire proposed development area bounded by Linder Ave, Poplar Street, and Sibley Parkway. The proposed Outlot A encompasses the 0.57-acre area NE of the currently improved area of Sibley Parkway. The proposed dedicated portion of Sibley Parkway will better align with the current roadway improvements within the subject area. The subject area includes several existing and vacated easements for sewer and other utility purposes and proposes to dedicate the standard drainage and utility easements, as well as a 10' wide utility easement through the middle of Lot 1 for the purposes of preserving an existing active sewer utility line. These easements will remain on the subject parcel. The subject property contains a number of vacated and proposed-to-be vacated rights-of-ways and alleyways. 
 
Rezoning

The applicant is proposing to rezone the proposed Lot 1, Block 1 identified on the Mankato Housing LP plat from M-1, Light Industrial, to O-R, Office Residential. 

The proposed rezoning is consistent with the underlying land use, as the City Council approved a LUPA on May 12, 2025, changing the land use designation from Heavy Industrial to Office Residential, associated with facilitating the development of a supportive housing project. 

The proposed rezoning is consistent with the O-R, Office Residential Zoning designation of the residential complex located east of the subject property. 

The proposed project area is part of the area identified in the Sibley Parkway redevelopment project and the City Center Renaissance Plan. This included redevelopment of previously developed industrial areas into primarily residential and commercial properties. At this time, the majority of the residential redevelopment has occurred north of Hwy 169. This would be one of the next areas for residential redevelopment south of Hwy 169. These guidelines were adopted in 2005/2006 & 2007 and rezoning of the proposed area would be consistent with these redevelopment plans. 
 
Planned Unit Development 
A Planned Unit Development is being sought to allow flexibility on the required development parking. The site plan submitted depicts 39 off-street parking stalls for the supportive housing development. This is at a rate of less than 1.0 parking stalls per unit. 
Trellis, the applicant, stated that the proposed parking would be sufficient for residents and staff, as based on similar Trellis development projects, they estimate that 20-30% of Mankato Supportive Housing residents will own cars.

The applicant is requesting 39 off-street parking stalls be constructed at the proposed project site.

Mankato City Code requires 2 parking stalls per dwelling unit for multifamily developments in similar zoning classifications, which would require the development to provide 80 parking stalls for the residential units. The planned unit development provisions in City Code allow the City Council the authority in approving any planned unit development to change, alter, modify, or waive any portion of the applicable standards as they apply to the proposed planned unit development. In allowing flexibility, the City Council shall find that the proposed planned unit development will achieve the purpose of a planned unit development and will not violate the general purpose, goals, and objectives of this chapter and of any plans adopted by the Planning Agency or the City Council. Parking flexibility for the supportive housing project is sought as a result of the project being a supportive housing project that would provide housing with supportive services for those at risk of experiencing or currently experiencing homelessness.

To allow for flexibility, a "public benefit" must be provided by the proposed project. Addressing this, the applicant's narrative states that: "The proposed development is located on an underutilized site currently used as gravel overflow parking. Its location near downtown, the trail system, and the river makes it convenient for multi-unit housing, supporting the goal of the city to provide a variety of housing types. It is a continuation of the development pattern in recent years that has provided multi-unit housing along Linder Ave and Sibley Parkway. Residents bring vitality to the area that currently has a grocery store, restaurants, and downtown entertainment within convenient distances. The development is also reserving the south portion of the site for future development, and incorporates the area to the north that will be preserved for Sibley Parkway ROW and open natural space. As utilities are already located adjacent to the site, it is an efficient use of the utility network without having to extend sewer or water beyond the site. The current site plan includes a sidewalk which will connect the river trail to the north to future sidewalk infrastructure to the south, creating a pedestrian network for the public common good. The Mankato Supportive Housing project will create much-needed housing for the City’s lowest-income residents. By pairing permanent housing with supportive services, Trellis and Partners for Housing will promote resident success and prevent the return to homelessness. The need for affordable housing for individuals struggling with homelessness has been a documented priority for the City of Mankato since 2020, when the Mankato Supportive Housing project was first conceptualized."

Project Details:
The Mankato Supportive Housing project will create permanent housing for singles and families who are homeless or at risk of homelessness. The building will not function as a temporary shelter. Building amenities will include a community room and lounge, fitness center, and computer lab. The project will consist of 40 supportive housing units subsidized by project-based rental assistance. Rent collection and capitalized reserves will provide the funding needed for long-term building operation and maintenance.
The Mankato Supportive Housing project will provide offices for Trellis Property management staff. Trellis staff are responsible for front desk staffing, leasing, marketing, and building and grounds maintenance. The site manager will be on-site approximately 30 hours per week, maintenance will be on-site approximately 20 hours per week, and the front desk will be staffed 24 hours per day.

In addition to the housing units, the building will provide office and meeting space for Partners for Housing, a non-profit organization that supports individuals and families experiencing homelessness. Two full-time staff members will serve building residents utilizing a housing-first, client-centered approach and provide supportive services that include case management and referrals to address physical wellness, mental health, employment, transportation and employment navigation. A reserve and committed operating grants for case management will pay the Partners for Housing staff on an on-going basis.

In addition to property management and services staffing, this development promises to serve as a hub for local service and non-profit providers. The community and meeting rooms will be made available to groups that work with the property’s residents and provide additional benefits such as cooking classes, workforce referrals, or pop-up food shelves.

Partners for Housing and Trellis staff will be on-site Monday through Friday during business hours to serve residents. The front desk will be staffed 24 hours per day for added security at night and on weekends. The building will remain locked during and after business hours and residents and staff will access the building using a fob system.

Site improvements will include an outdoor patio, recreational areas, landscaping, sidewalks, and parking for staff and residents. Outdoor amenity space will be fenced in to discourage non-resident usage.

Vacations
Two alleys and an unimproved portion of a public street, "Sibley Parkway", are proposed to be vacated. 

The first alley to be vacated is described as a 15-foot-wide public alley running east-west in said Block 17 lying between the easterly line of Minnesota Department of Transportation Right of Way Plat No. 07-29 and the westerly line of a 15-foot public alley running north-south between Linder Avenue and Sibley Parkway. The second alley is a 15-foot-wide public alley running north-south in said Block 17 lying between the north line of Linder Avenue and the south line of Sibley Parkway.

The other half of the vacation request is for the vacation of an estimated 15,221-square-foot portion of Sibley Parkway, which had been dedicated as "Patterson Avenue", on the plat of Oakwood Addition. This area is generally described as being located between Poplar Street and the Abandoned Chicago, Milwaukee and St. Paul Railway. This area remained as a Public Right-of-way, but was not improved, as a preferred intersection orientation that created a 4-way with Poplar Street and Sibley Parkway's trestle crossing was improved instead.