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AGENDA RECOMMENDATION       
Consent Calendar   6.P.
City Council Regular Meeting
Meeting Date:
07/14/2025

Agenda Item:

Set July 28, 2025, as the date of the public hearing to review a request for rezoning of 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 and a portion of Sibley Parkway street, dedicated as Patterson Avenue, on the plat of Oakwood Addition (PID's R010813253001, R010813253002, R010813253010); by request of Trellis.

Recommendation/Action(s):

At the June 25, 2025, meeting the Planning Commission recommended setting the date of hearing to review the rezoning request.

Summary:

Trellis is requesting to set July 28, 2025, as the date of hearing to review a rezoning application of the proposed Lot 1, Block 1 from M-1, Light Industrial, to O-R, Office Residential; a preliminary and final plat review of Mankato Housing LP; 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 April 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 one percent growth rate, which is consistent with forecasted growth within the MAPO 2045 Transportation Plan. The one percent 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 on 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 20-foot-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. 
 
As is standard practice during the platting process, Bolton & Menk, on behalf of Trellis, conducted an assessment of wetlands in the subject area (Delineation Concurrence) and provided a "No Wetlands Memo", stating that the subject area does not contain any wetlands. 

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 had 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 and 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 percent of Mankato Supportive Housing residents will own cars.

The Mankato City Code requires two 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 the 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 make 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."
 

The applicant states that the proposed 39 off-street parking stalls will be sufficient to serve the proposed supportive housing use, which the applicant refers to as "Poplar Apartments". The following statement provides the applicant's reasoning for their determination: "A maximum of five staff members from Trellis and Partners for Housing will be on site during work hours. It is reasonable to estimate that all five will utilize a parking stall. The remaining 34 parking stalls will be available for residents, a ratio of .85 per housing unit. Using the most conservative data from other Trellis and Partners for Housing supportive housing projects, the developer estimates that residents of Poplar Apartments will utilize up to 23 parking stalls. The remaining parking stalls will be available for visiting service providers and guests of residents. Occasionally, supportive housing staff may host resources or activities from outside providers, utilizing up to three parking stalls. In planning for Poplar Apartments, Trellis and its development partners reviewed parking needs in supportive housing properties that it already owns and manages. At Park 7 Apartments in Minneapolis, one of 61 residents owns a car. Management staff report that this is representative of residents being placed in housing through the coordinated entry system. At Dale Street Place in Saint Paul, approximately 20 percent of residents own cars. At the Belfry Apartments in Minneapolis, approximately 30 percent of residents have cars. At the St. Peter transitional housing project, up to four of seven residents have vehicles, a ratio of .57 per housing unit."

The applicant has provided an on-site parking expansion concept plan. The concept plan depicts two possible variations of on-site parking expansions to increase the number of off-street parking stalls provided for the development. The first concept plan shows an added 12-stall row of parking on the south side of the currently proposed parking lot (a total of 51 stalls). The second concept plan depicts a full parking lot expansion into the vacant southern portion of the lot, adding 46 additional off-street parking stalls (a total of 85 stalls). This concept plan was requested in order to prove that on-site parking could reasonably be provided in the instance that the proposed 39-stalls are not sufficient to serve the development. A condition has been included stating that, "The applicant shall construct the concept parking improvements, if on-site parking is found to not adequately serve the subject use."

A snow storage plan was provided by the applicant demonstrating the capability to manage and store snow removed from parking and walking surfaces on site.

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 ongoing basis.

In addition to property management and service 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. Outdoor recreational areas have been designed/oriented to limit the impact of outdoor noise pollution from Hwy 159 & the Railroad. This is achieved by utilizing the three-story building as an obstruction between the source and residents seeking comfortable use of outdoor amenities.

Support Services:
Support Services will be coordinated by Partners For Housing. The purpose of this development is to support households transitioning from homelessness by "strengthening their living, social, housing, and employment skills by ensuring they have a stable and dependable environment, while dealing with any other personal issues that may have led to their homeless situation initially". Partners For Housing will use a community-based service model that focuses on helping and enabling households to access existing community resources. They state three reasons for this method: 1) "Service delivery is more cost-effective because efforts are not duplicated by several providers". 2) "Participating residents engage in a more holistic and specialized service plan, which addresses more of their needs over the long term". 3) "Residents accessing services in the community where they live learn self-sufficiency skills in locating and obtaining the things they need". Residents will not be required to participate in any of the available services. However, they will retain the right to request those services at any time during their residency.
 

The applicant worked with Partners For Housing to provide the following narrative describing the support services provided to residents:

Services:
The applicant will be allowed to move into the unit once they have met the homeless and income eligibility requirements. The applicant will perform a screening and need assessment as part of their initial occupancy. The screening and needs assessment, conducted by a tenant service coordinator from Partners for Housing, will include a functional assessment, individual community support plan, referral, and assistance in obtaining needed mental health and other services, coordination of services and monitoring of the delivery of services.

Case Management:
The role of each resident’s service coordinator is that of overseeing their total treatment plan, assessing, and helping to provide for their basic living needs, and coordinating services needed by the residents or family members. Service Coordinators will meet with their residents weekly or as needed to assess their functioning and progress and assist with any needs or problems. Service Coordinators will continue supervising their residents until it is determined that their services are no longer needed because the residents have reached their treatment goals. Service Coordinators will be responsible for helping the residents to access the services needed.

Public Assistance:
When needed, residents will be assisted in acquiring food and economic assistance so that they can maintain adequate living conditions and provide nutrition for themselves and their children.

Transportation:
The City of Mankato provides transit services for its residents. A fixed stop is located near the project site on Dewey Lane. Access to employment, school, medical facilities, and retail areas through this service allows the household to secure its own use of local services. Gas vouchers and other transportation assistance are available through the Salvation Army, MVAC, and area church partnerships.

Basic Life Skills Classes:
As applicable, residents meet with employment counselors at the Minnesota Workforce Center to assess their skills and training needs, and then are matched to appropriate training, internship, and employment opportunities, or referred to other providers who can assist in working on some other basic skills first. This type of training is needed for individuals who lack some of the requisite skills for basic employment. Education for specific skill sets can be attained through other providers, including University of Minnesota Extension Services and Minnesota Assistance Council for Veterans.

Education:
Public Schools offer Adult Basic Education and English Language Learner classes. Taught by qualified teachers, these courses are provided to small groups at a variety of times and locations. Effective communication and basic math and reading skills are necessary to acquire and retain employment. Welfare–To–Work: The Minnesota Department of Human Services manages the Diversionary Work Program (DWP) through local Workforce Centers. DWP is a four-month program with the goal of helping low-income Minnesota parents immediately go to work rather than go on welfare. Parents are expected to sign an employment plan, they can receive financial assistance to meet their basic needs and get other support services, such as food support and child and healthcare assistance.

Employment: 
On the job, training and paid work experience programs coordinated with local employers can set residents on the path to long-term employment. The MN Workforce Center provides access to employment through job application and interviews with local employers. Residents meet with employment counselors at the Workforce Center to assess their skills and training needs and then are matched to employers. Referrals may also be made to the Life-Work Planning Center depending on the needs and background of the resident.

Availability of Services:
Primary service coordination will be available in the housing project. When community services are needed, the resident’s Service Coordinator will assist in organizing transportation and childcare for the resident. Residents in crisis will also have access to crisis lines and the local hospital ER. Case managers will assist residents in contacting and receiving services from community organizations in the greater Mankato area. The available community organizations can be classified into the following categories:
  • Adult Mental Health Services
  • Chemical Dependency Inpatient and Outpatient Services
  • Specialized Case Management and Advocacy Services
  • Veteran Services
  • Education Services
  • Financial/Budget Management Services
  • Independent Living Skill/Hygiene Services
  • Employment Training/Readiness Services
  • Parent Training/Mentoring Services
  • Children’s Services (education, truancy, behavioral health, etc.)
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 four-way with Poplar Street and Sibley Parkway's trestle crossing was improved instead. 

Attachments