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   5.1.
Planning Commission Regular Meeting
Meeting Date:
02/25/2026

Title

CY03-26

Request of Web Construction, on behalf of Old Town Holdings, for a conditional use permit to allow for the conversion of ground floor commercial space to residential apartment units in the B-3, Highway Commercial, zoning district. The subject property is described as Lots 1A and 1B, Block 2, Axis Subdivision (1247 Range Street, BE County PID R010801426012).

The anticipated date of City Council action will be March 9, 2026. 

Applicant

The applicant is WEB Construction on behalf of the property owner Old Town Holdings. 

Request

The applicant is requesting an amendment to the original conditional use permit located at 1247 Range St. (Axis Lofts), to convert the first floor commercial spaces into thirteen residential apartments. 

Location

The property is located at 1247 Range St. and is currently being identified at Axis Lofts. 

Existing Land Use

The property is currently serving 72 residential apartment units. 

Zoning

The property is zoned B-3, Highway Business District. 

Environmentally Sensitive Areas

The site falls within FEMA's "Catastrophic Levee Failure" ESA Zone.

Public Utilities

The site is currently served by public utilities. The utilities are located within an easement that also contains Range Street.

City Code

The City Code pertaining to the B-3, Highway Business District may be viewed at the following link below: 

https://library.municode.com/mn/mankato/codes/code_of_ordinances?nodeId=PTIICOOR_CH10LAUSDE_ARTVCODI_DIV8HIBUDI
 

Site Plan Review Comments

The Site Plan Review Committee met on February 10, 2026, and submitted the following comments: 
 
  1. The applicant shall be aware that 1247 Range Street will be the address, and individual apartment numbers will be assigned. The Applicant shall also be aware that the commercial address currently assigned to this property will be retired.
  2. The applicant shall be aware of ongoing planning and design associated with the TH 169 Revitalization and Hiniker Parkway project, which includes the construction of the new River Lane and Hiniker Parkway roadways, respectively.
  3. The Applicant shall be aware that the cost of water and wastewater services will increase based on the addition of 13 units.
  4. An amenity plan shall be submitted demonstrating first floor exterior amenities. 
  5. A full floor plan shall be submitted showing the existing conditions in the remainder of the building. 
  6. Updated exterior elevations shall be submitted to reflect floor plan changes. 
  7. The applicant shall clarify the updated mechanical systems and if there are any new exterior penetrations. 
  8. The applicant shall pay notification fees and any outstanding fees on the online portal, if not already complete. 

Review

The applicant requests an amendment to the previously approved conditional use permit to convert the planned commercial spaces on the main floor into thirteen residential apartment units. This amendment is intended to align the property more closely with its established residential character and with the recently adopted amendment to the Mankato City Code permitting apartments within the B-3, Highway Business District.

The existing storefronts on the south and east elevations will be modified to provide access to the additional units. Proposed floor plans indicate the creation of thirteen studio apartments on the first floor. The second through fourth floors currently contain seventy-two units, consisting of fifteen one-bedroom units and five two-bedroom units per floor. Upon completion, the building will include thirteen studio units, fifty-three one-bedroom units, and nineteen two-bedroom units. The fifth floor will remain dedicated to amenity space, featuring a lounge and deck area accessible via elevator and stairway.

The proposal includes 168 parking stalls. The applicant has also provided nine bicycle parking spaces, comprising two exterior stalls and seven interior stalls. Existing landscaping will remain and continues to provide screening for the parking areas. Trash facilities are located within the building, and existing exterior lighting will be retained.

Additional amenity spaces will be incorporated on the main level, including a patio and grilling areas. A rooftop deck will offer outdoor living space with grills, recreational games, and green space.

Vehicular access will transition from its current location on Range Street to Hiniker Parkway upon completion of the associated roadway project.

Findings

Staff submits the following findings for the amendment to the conditional use permit: 
  1. The use as a mixed use building is considered a conditional use permit in the B-3, General Business District. 
  2. The request is in keeping with the comprehensive planning policies of the City as the underlying land use plan identifies this parcel as "Commercial", and in that district this proposed use is identified in Code as a conditional use.  
  3. The proposal does not interfere with or diminish the use of property in the immediate vicinity.   
  4. The proposed development is served by public utilities. 
  5. There are no known historical or architectural resources on the site. 
  6. The site falls within FEMA's "Catastrophic Levee Failure" ESA Zone.
  7. It will not cause a negative cumulative effect and effect on the City as a whole. 
  8. To the extent known, the development, when considered with the recommended conditions, conforms with all other applicable regulations of the district, and other applicable ordinances. 
  9. The proposal will not jeopardize the public's health, safety, or general welfare.

Recommendation

Staff recommends the approval of the amendment to the conditional use permit with the following conditions: 
  1. If traffic issues arise associated with the development, at the discretion and request of the City of Mankato Engineering Department, the applicant/property owner will be responsible for having a more in-depth traffic study prepared, and will be a willing petition for the costs associated with any recommended geometry or traffic control improvements.
  2. Exterior lighting shall conform to Mankato City Code standards. All exterior light fixtures shall achieve Mankato City Code standards and a photometric plan shall be provided that demonstrates conformance with the Mankato City Code. rds. 
  3. Any refuse and recyclable material containers shall continue to be stored inside the building. 
  4. All amenities shall be installed prior to the issuance of a rental license.
  5. The applicant shall be responsible for noise complaints associated with the proximity to Highway 169.
  6. The proposed development shall conform to the residential requirements in B-3, Highway Business District.

Attachments