Resolution approving a variance request from Chapter 10, Article VII, Division 3, Sec.10-1005 of the Mankato City Code to decrease the transitional yard setback from 30 feet to 6 feet in the M-1, Light Industrial, zoning district (120 Pine Street and 1700 3rd Avenue); by request of Ron Goodrich.

Adoption of a resolution granting a variance to decrease the transitional yard setback from 30 feet to 6 feet in the M-1, Light Industrial Zoning District with the following conditions: 

1. The applicant shall apply for and receive a building permit prior to making improvements associated with the proposed paving and parking lot expansion.
2. The applicant shall provide drainage, paving, and landscaping plans for review by City Staff with building permit submission.
3. If temporary access for construction or any other means is necessary in the public way, the appropriate right of way permit, obstruction permit or others shall be obtained in accordance with City of Mankato standards prior to work occurring. 
4. If new exterior lighting is proposed, it shall meet Mankato City Code standards. This requires, but is not limited to, full-cut, fully shielded light fixtures. Lighting levels at the property line shall not exceed 1/2-foot candle.
5. The applicant shall work with City Staff to identify the appropriate accessible parking stall location based on entry door proximity.
6. Any increase in the intensity of the use of the property shall require a Conditional Use Permit to determine conformity with Mankato City Code, including, but not limited to, parking standards.

Bolton and Menk, on behalf of the property owner Ron Goodrich, is requesting a variance from Chapter 10, Article VII, Division 3, Sec.10-1005 of the Mankato City Code to decrease the transitional yard setback from thirty (30) feet to six (6) feet in the M-1, Light Industrial, zoning district. The property is generally described as the east half of Lots 9 and 10, Block 24 except the west 12.75 feet, and including the west half of the adjacent vacated alley; Lots 1-4, Block 24, except the railroad, and including the east half of the vacated alley; and Lot 8, Block 24 and the westerly half of the vacated adjacent alley and except the railroad, Mankato City, which is addressed as 120 Pine Street and 1700 3rd Avenue. The property is the location of an existing building that is occupied by the Maker's Space. 

Mankato City Code requires a 30-foot transitional yard between industrial districts and adjacent districts that are zoned residential. The property associated with this request is zoned M-1, Light Industrial, and the adjacent property located to the west is zoned R-3, Multiple Family Residential. The applicant is seeking a reduction in the required setback from thirty (30) feet to six (6) feet for purposes of constructing a hardsurfaced parking lot. The parking lot area is currently gravel. 

The variance is being requested in order to allow for paving and parking lot expansion. Work would include improvement of the existing gravel parking lot by installing new pavement, curb & gutter, and landscaping. Access to the parking lot will remain at the existing location along Pine Street and utilize the existing curb cut. Current extents of the gravel parking lot are similar to the proposed improvement, with a total proposed hardsurfaced area of approximately 0.35 acres. The applicant has stated that when blacktopping the existing grave lot, the lot will be graded to ensure all surface water is diverted to the 4-foot culvert under the railroad tracks rather than draining to the adjacent residential property. By paving an existing parking and loading area, the applicant is bringing a non-conforming parking/loading area into conformance with compliance with City standards.

At some point after the initial construction of the warehouse, multiple loading areas / overhead garage doors were added to the western elevation of the building, thus creating an increased need for space in which to complete truck turning movements on site. The applicant has provided a site plan demonstrating full turning movements throughout the site, with both successful entry and exit movements. This site plan also depicts sufficient space to provide 13 hard surfaced standard parking stalls and 1 accessible parking stall on site.

The applicant has provided a turning movement plan that demonstrates full truck movement throughout the site and utilization of the overhead garage doors, with both entry and exit movements shown to be fully completed. The applicant is aware that an increase in the intensity of the use of their property would require a Conditional Use Permit, at which time parking would be reviewed for conformance. The applicant has stated that the intent of the lot improvements does not include a change in use. The applicant has agreed to provide drainage, parking lot paving, & landscaping plans prior to issuance of any building permit. The applicant has acknowledged that the proposed improvements would result in an increase in their stormwater utility surcharge and front footage surcharge. Applicant has acknowledged that they shall work with Building Department Staff to verify that the proposed accessible stall is designated at the proper location in relation to the nearest entry door. Applicant will provide a detailed drainage memo with the building permit submission.

The applicant received the signature of the adjacent residential property owner (James Rassman) on a letter of support which states that they believe the plan is acceptable and that they hereby support the proposed improvements and setback variance.

Minnesota Statute §462.357 Subd. 6(2) allows variances only when: (1) the variance is in harmony with the general intent and purpose of the ordinance; (2) the variance is consistent with the comprehensive plan; and (3) practical difficulties exist, meaning (a) the property can be reasonably used without the variance, (b) the circumstances are unique and not created by the landowner, and (c) the variance will not alter the essential character of the area.
 
Practical Difficulties Analysis:

1. Reasonableness — This factor means the landowner's desired use of the property is reasonable. For example, if the variance application is for a building that does not meet the required setback, the focus of the first factor is whether the request to place a building there is reasonable.

Applicant: “This proposal will allow reasonable use of the property by allowing ample space for parking and delivery/pickup of materials and supplies to the businesses leasing space in the building. With the code required setback, it would be very difficult to get in and out of the overhead door on the North-West corner of the building with larger delivery vehicles, trailers, and other large construction equipment. Lessening this setback will allow the current tenants of the building to continue efficient use of their leased spaces in the building while still being able to park employee vehicles in the lot.”

Staff: The zoning of the subject property is designated as M-1, Light Industrial Zoning District, where accessory uses and structures, including accessory surface parking lots and parking structures, are permitted in the industrial districts. It is reasonable for a light industrial use to require the need for hardsurfaced off-street parking lots. In the M-1, Light Industrial District, the side yard setback is already set at six (6) feet for impervious parking or storage surfaces. With a reduction of the transitional yard from thirty (30) feet to six (6) feet, the construction of a hardsurfaced parking lot would not differ unreasonably from similar construction where no discrepancy between zoning districts is present.

Multiple loading areas / overhead garage doors are present along the western elevation of the building. These doors are designed to allow large vehicles, trailers, and equipment access to the building interior and to allow for material drop-off/pick-up, thus creating an increased need for space in which to complete truck turning and general turnaround movements on site. Use of the subject property currently creates a demand for off-street parking. With the only other existing exterior space already occupied by a hardsurfaced off-street parking area, the applicant does not have any suitable alternative location to construct hardsurfaced parking and loading areas on or adjacent to their site. City Staff have noted traffic operational deficiencies due to the utilization of on-street parking near the intersection of 3^rd Ave & Pine Street associated with events held on the subject property. By creating an additional fourteen (14) hardsurfaced parking stalls on-site, the aforementioned operational deficiencies may be alleviated.

Transitional yards are intended to provide a buffer area between residential uses and commercial/industrial uses. These buffer areas are primarily achieved through landscaping or screening (i.e. fences, walls, berms). Transitional yards are required to consist of a combination of ground cover, shade trees, evergreen trees, shrubs, and appropriate screening devices. As the applicant is proposing to construct an off-street hardsurfaced parking area with four or more stalls, the parking area must be buffered and screened by perimeter landscaping per Sec. 10-1740 of the Mankato City Code. The principal difference between the transitional yard landscaping requirements and those for perimeter landscaping for parking areas is the depth of the required yard. It is reasonable to allow for a reduced transitional yard in this manner, as significant buffering will be necessitated within the six (6) foot setback area required by the perimeter landscaping standards.

2. Uniqueness - The second factor is that the landowner’s desired use is not possible due to circumstances unique to the property that were not caused by the landowner or by the landowner’s desire to do something the code does not allow. The uniqueness generally relates to the physical characteristics of the particular piece of property, that is, to the land, and not the personal characteristics or preference of the landowner. When considering the variance for a building encroaching into a setback, the focus factor is whether there is anything physically unique to the property, for example, sloping topography or wetlands.

Applicant: “The unique circumstances present at this property include the need for access to the North-West warehouse space with commercial and construction vehicles and equipment. If this variance is not approved, continued operation of Goodrich Construction would be unnecessarily limited due to access. The parking lot has been in the existing configuration for as long as we are aware. Also, the residential property to the West has been unoccupied and used as a workshop/storage space for decades, with the residential home being boarded up and having to have had city intervention to keep it from falling into complete disrepair (Closing off the foundation space under the home, mandating roof repairs, etc.). We feel the neighboring property has been used as more of a storage/commercial space than a residential homestead for as long as we can remember.”

Staff: The subject property was uniquely constructed in close proximity to adjacent residential uses and the railroad tracks in the 1940s-50s. The Union Pacific Railroad has a large railroad right-of-way (ROW) adjacent to the northern property boundary. Mostly within this ROW is a dilapidated spur railroad track that approaches and appears to terminate within the northern property boundary. Old plans of the building depict this spur being utilized in tandem with a railroad dock on the northern side of the warehouse building. This railroad connection explains the unique shape, orientation, and placement of the warehouse building. The initial 1949 building and its subsequent additions appear to have been constructed directly up to, if not on or over, the north, south, and east property boundaries. All three of such boundaries abut active transportation right-of-ways, preventing expansion through the purchase of adjacent parcels in any direction but west. Because of this condition, users of the 1700 3^rd Ave subject property have had little ability to provide on-site parking and loading. 

The property at 126 Pine Street is used for storage purposes and not considered residential.

3. Essential Character — Under this factor, the Council should consider whether the resulting structure will be out of scale, out of place, or otherwise inconsistent with the area. For example, when thinking about the variance for an encroachment into a setback, the focus is on how the particular structure will look and operate closer to the lot line than typically required and if it fits well with the character of the area.

Applicant: “Variance will maintain, as well as improve, the local character by providing a paved parking area that will help keep streets in the area cleaner, as well as adding a 6' green space between the parking lot and the property line. These improvements will allow improved drainage, usage, and appearance of the property and properties in the locality.”

Staff: The applicant has not proposed to alter or increase the intensity of the use of the property. As no alteration to the use of the site is proposed to occur, impacts to the existing essential character of the neighbor are likely negligible. Hardsurfaced parking areas are not uncommon within the neighborhood. The existing gravel parking lot appears to be the more uncommon condition. The surrounding neighborhood along 3^rd Avenue and Pine Street, consists of a sporadic mix of residential, commercial, and industrial uses. Many of these uses are divided by hardsurfaced alleyways rather than buffered and screened transitional yards. Within the immediate area, there are multiple hardsurfaced parking areas serving as accessory uses to light industrial uses. There are no known thirty (30) foot transitional yards that buffer/screen adjacent residential uses on the aforementioned neighboring properties. It would not alter the essential character of the area to not designate/construct a full thirty (30) foot transitional yard on the subject property. Additionally, due to the presence of a railroad bisecting the neighborhood, a great number of uniquely shaped and oriented lots are present within close proximity of the subject property. Given the existing placement and character of the structures on adjacent properties, the proposed hardsurfaced parking lot would be consistent with the essential character of the neighborhood. 

4. Harmony with the Intent of Zoned Area as set forth in the Ordinance — In addition to the three-factor practical difficulties, city staff has made findings during the evaluation of the variance regarding harmony with the general purposes and intent of the ordinance.

Applicant: “Variance is in harmony with the ordinance's intent because it will improve the aesthetics of the property, allow for more required off-street parking spaces, and have similar setbacks to other commercial properties in the area. By approving this variance, the lot will be paved and have drainage consistent with current code while still allowing reasonable access to and usage of the building and its current tenants' businesses.”

Staff: The intent of the M-1, Light Industrial Zoning District ordinance is to create a standard for light manufacturing and light industrial uses that minimizes any adverse effects on property in neighboring residential or commercial districts. These standards include use limitations, setbacks, lot sizes, and densities for light industrial uses and any associated accessory structures/uses. The current gravel parking area is considered a nonconformity due to a lack of hardsurfacing as required by Sec. 10-1619. Mankato City Code states that “the continued existence of nonconformities is frequently inconsistent with the purposes for which such districts are established and thus, the gradual elimination of such nonconformities is generally desirable”. By hardsurfacing an existing gravel parking area, the applicant would eliminate the existing nonconformity and provide a conforming hardsurfaced off-street parking area. The applicant is seeking to reduce the width of the transitional yard. Transitional yards are intended to provide a buffer area between residential uses and commercial/industrial uses. Transitional yards are required to consist of a combination of ground cover, shade trees, evergreen trees, shrubs, and appropriate screening devices. In line with this requirement is the requirement for perimeter landscaping of off-street parking lots. Perimeter landscaping areas must consist of the same combination of landscaping types as transitional yards with the goal of buffering and screening the parking lot from adjacent properties. With the proposal to reduce the transitional yard width to six (6) feet, this specified yard area will be required to be property landscaped by both the transitional yard and perimeter landscaping standards. A reduction in the width of the transitional yard to six (6) feet would still trigger the requirement to buffer and screen the parking area, as intended by the zoning ordinance. Given the existing gravel parking lot’s placement, grading and paving of a hardsurfaced parking lot, permitted through the granting of this variance, would be in harmony with the intent of the ordinance.

5. Consistencies with Uses set forth in the Comprehensive Plan — City staff have made findings during the evaluation of the variance based on consistency of the proposed use with the comprehensive plan. Use of the subject property is not indicated to change with approval of the variance, as a gravel parking area which serves as an accessory to the Light Industrial use is already in place.

Applicant: “Variance request is consistent with the comprehensive plan by allowing the area to be improved while not hindering the day-to-day business of the building owner and tenants. Our plan is consistent with the improvements that Green Care, on the other side of 3rd Ave, was recently (2017) allowed to do with their parking lot and additional lots located at 1770, 1709, 1703 and 1629 3rd Ave with minimal setback to the neighboring residential properties.”

Staff: The comprehensive plan addresses the intent of how the city is planned and the use of the properties in those zones. The land use plan designates the land use as Medium Density Residential. Despite this designation, the subject property has been zoned and operated as M-1, Light Industrial for decades. Due to the proximity to the railroad right-of-way and crossing, continuation of the existing industrial use is understood as a compatible use of the subject property. The zoning of the subject property is designated as M-1, Light Industrial Zoning District, where accessory uses and structures, including accessory surface parking lots and parking structures or garages, are permitted in the industrial districts. For these reasons, the proposed continuation of the existing use of the subject property is believed to be consistent with the uses set forth in the comprehensive plan.

Variance Hearing:

Staff held an administrative hearing regarding the variance request on January 28, 2026. The following were in attendance at the hearing: applicant's representative, Alec Pietz of Bolton & Menk, Property owner, Ron Goodrich, City of Mankato Planning Coordinator, Molly Westman, City of Mankato Planner, Bennett Hanson, City of Mankato Planning Coordinator, Brittany Mitchell, City of Mankato Director of Community Development, Mark Konz, Shawn Meschke of APX Construction, Nate Myhra of Bolton & Menk, Kevin Johnson and Dominic Gilman of Complete Construction, and Mary Miller an owner at Evergreen Trail commercial condos. City Staff explained the criteria for evaluating the variance for conformance with MN §462.357 Subd. 6 and gave a prompt overview of the proposed variance. No additional comments related to the proposal were submitted, but the property owner, Ron Goodrich, did express that he did not know what the project timeline would look like as Blue Earth County is making roadway improvements to CSAH 5 (3^rd Ave) that would impact both portions of Pine Street and 3^rd Ave that are adjacent to his property.