Ordinance rezoning of properties from M-1, Light Industrial, to O-R, Office Residential; Resolutions approving the Final Plat of Mankato Housing LP Subdivision; a Planned Unit Development; and vacating 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.

At the June 25, 2025, meeting, the Planning Commission recommended adoption of the ordinance rezoning the property and the resolutions vacating the alleys and a portion of Sibley Parkway; a resolution approving the final plat, and a resolution approving the planned unit development.

Trellis is seeking approval for the preliminary and final plat of Mankato Housing LP; rezoning of proposed Lot 1, Block 1 from M-1 (Light Industrial) to O-R (Office Residential a Planned Unit Development (PUD); vacation of two 15-foot-wide public alleys (one running east–west and the other north–south), and the vacation of a portion of Sibley Parkway.

The proposed project involves the construction of a 40-unit supportive housing development within a three-story apartment building. The building will serve as permanent housing for individuals and families who are currently experiencing, or at risk of, homelessness.

Land Use Plan and Traffic Study
This proposal is consistent with the Land Use Plan Amendment (LUPA) approved by the Planning Commission on April 23, 2025. In support of the LUPA, a traffic study was submitted to evaluate build-year conditions in 2028. The study assumed a 1% annual traffic growth rate, aligned with the MAPO 2045 Transportation Plan. This rate is considered conservative, given that traffic volumes in the area have remained stable or declined over the past decade. The analysis found that all study intersections are expected to maintain a Level of Service (LOS) of C or better during the morning and evening peak hours. Only minimal increases in intersection delays and vehicle queuing are anticipated. A condition attached to the LUPA requires that the applicant be a willing petitioner for any necessary intersection improvements in the future.

A fixed-route public transit stop is located on Dewey Lane, providing accessible transportation options for future residents. Vehicular access to the development will be provided via Poplar Street.

Preliminary and Final Plat Details
The Mankato Housing LP plat includes one lot, one outlot, and the dedication of a new segment of Sibley Parkway. This newly dedicated section is intended to realign Sibley Parkway with the intersection at Poplar Street and to replace the existing, unimproved east–west segment of the roadway.

Lot 1, Block 1, is a 1.77-acre parcel that will accommodate the proposed development. It is bounded by Linder Avenue, Poplar Street, and Sibley Parkway. The 0.57-acre Outlot A is located northeast of the improved section of Sibley Parkway. The proposed realignment of Sibley Parkway reflects existing roadway improvements and will facilitate future connectivity. The plat maintains existing utility and sewer easements and establishes new drainage and utility easements, including a 20-foot-wide utility easement across Lot 1 to preserve an existing active sewer line.

Rezoning Request
Trellis is proposing to rezone Lot 1, Block 1 from M-1 (Light Industrial) to O-R (Office Residential). This request is consistent with the underlying land use designation, which was amended by City Council on May 12, 2025, through the LUPA process. That amendment changed the guided land use from Heavy Industrial to Office Residential to facilitate the development of supportive housing on the site.

The rezoning aligns with the zoning and land use of adjacent properties, particularly a residential complex located immediately east of the site. The subject area falls within the Sibley Parkway Redevelopment Project and the City Center Renaissance Plan, both of which support the transition of underutilized industrial parcels into residential and commercial uses. While most of the redevelopment under these plans has occurred north of Highway 169, this project represents a logical extension of those efforts to the south. The relevant redevelopment plans were adopted in 2005, 2006, and 2007, and rezoning the subject site is consistent with those long-range planning goals.

Planned Unit Development (PUD)
The Planned Unit Development request seeks relief from the City’s standard parking requirements. The proposed site plan includes 39 off-street parking stalls, resulting in a ratio of less than one stall per housing unit. Mankato City Code typically requires two parking stalls per dwelling unit for multifamily developments in similar zoning districts, which would result in a requirement of 80 stalls for this 40-unit development.
Trellis contends that 39 parking stalls will adequately serve both residents and staff. Based on operational data from similar Trellis properties, it is estimated that only 20 to 30 percent of residents will own vehicles. A maximum of five staff members from Trellis and Partners for Housing will be on-site during business hours and will utilize five parking spaces. The remaining 34 spaces will be available for residents, service providers, and visitors. Data from comparable supportive housing developments indicates that resident vehicle ownership is generally low: Park 7 in Minneapolis reported 1 of 61 residents owns a car; Dale Street Place in Saint Paul reported 20% vehicle ownership; Belfry Apartments in Minneapolis reported 30%; and the transitional housing project in St. Peter reported four vehicles among seven households, or a 0.57 ratio.

To ensure future flexibility, Trellis submitted two on-site parking expansion concepts. One concept would add 12 stalls along the south edge of the existing lot, increasing total parking to 51 stalls. The second concept proposes a full expansion into the southern portion of the site, which would provide 46 additional stalls for a total of 85. A condition of approval requires the applicant to construct one of these expanded parking plans if the initial 39 stalls prove insufficient to meet demand. The applicant also submitted a snow storage plan confirming that snow removal can be managed on-site.

Project Description and Amenities
The Mankato Supportive Housing development will provide permanent supportive housing for low-income individuals and families. It will not operate as a temporary shelter. The three-story building will include 40 units subsidized by project-based rental assistance. Funding for long-term operation and maintenance will be generated through rent collection and capitalized reserves.

On-site amenities will include a community room and lounge, fitness center, computer lab, outdoor patio, recreational areas, and landscaped open space. Sidewalks will enhance pedestrian access, including a connection to the river trail system. A fenced outdoor amenity area will provide privacy and discourage use by non-residents. The building design incorporates strategic orientation and physical barriers to limit exposure to noise from Highway 169 and the adjacent railroad.

Trellis Property Management will staff the property, providing leasing, maintenance, marketing, and security services. A site manager will be present for approximately 30 hours per week, with maintenance staff on-site for 20 hours per week. The front desk will be staffed around the clock. Entry to the building will be controlled by a fob system for security.

Support Services
Support services will be provided by Partners for Housing using a housing-first, client-centered model. Services will be available to residents but not mandatory. Upon entry, each resident will undergo an intake process that includes a needs assessment and development of an individualized support plan. Service Coordinators will provide case management, assist residents with accessing health and social services, and monitor progress toward personal goals. Weekly or as-needed meetings will ensure consistent support.

Residents will receive help applying for food and financial assistance, transportation services, and job training programs. The City’s public transit system includes a nearby fixed route stop on Dewey Lane. Partners for Housing will also assist residents with arranging childcare and navigating educational opportunities such as adult basic education, ESL courses, and vocational training.

Employment assistance will be coordinated through local providers, including the Minnesota Workforce Center, the University of Minnesota Extension, and the Minnesota Assistance Council for Veterans. On-the-job training, paid work experience, and job-matching services will also be available. Residents in crisis will have access to local emergency services, including hotlines and hospitals. Community services available to residents span mental health care, chemical dependency treatment, veteran support, financial literacy, parenting programs, and services for children.

Vacations of Public Right-of-Way
The development requires the vacation of two alleys and a portion of Sibley Parkway. The first alley is a 15-foot-wide east–west public alley located in Block 17, between the eastern boundary of MnDOT Right of Way Plat No. 07-29 and the western boundary of a 15-foot-wide north–south alley. The second alley runs north–south in Block 17, between Linder Avenue and Sibley Parkway.

Additionally, the applicant requests the vacation of approximately 15,221 square feet of unimproved right-of-way formerly platted as "Patterson Avenue" in the Oakwood Addition. This segment lies between Poplar Street and the abandoned Chicago, Milwaukee, and St. Paul Railway line. Although this area was originally dedicated for public right-of-way, it was never improved, as roadway improvements instead favored a more functional four-way intersection at Poplar Street and Sibley Parkway.