CY36-26

Request of Bolton and Menk, on behalf of Kody Schendel of New Hope Board and Lodge and KD2 Properties, LLC, for a conditional use permit to construct and operate a 16-unit congregate micro-apartment addition; and for a variance to decrease the rear yard from 66’ to 11.2’ in the R-3, Limited Multiple Family Dwelling District.  The variance is being requested in order to allow for an approximately 47’ X 67’ building addition. The property is described as Lots 6, 7, 8 and the westerly half of Lot 9, Block 16 of Mankato City, Blue Earth County (1429 3rd Avenue).  

The applicant is Bolton and Menk, on behalf of the property owner, Kody Schendel. 

The applicant is requesting a conditional use permit to construct and operate a 16-unit congregate micro-apartment addition; and  a variance to decrease the rear yard from 66’ to 11.2’ in the R-3, Limited Multiple Family Dwelling District.  

The variance is being requested in order to allow for an approximately 47’ X 67’ building addition.
 

The address for the property is 1429 3rd Ave. 

The property is the location of New Hope Board and Lodge, formally House of Hope. 

The property is zoned R-3, Limited Multiple Dwelling District. 

There are no known environmentally sensitive areas on the site. 

The property is currently served by public utilities. 

The City Code pertaining to the R-3, Limited Multiple Dwelling District may be viewed at the following link. 

https://library.municode.com/mn/mankato/codes/code_of_ordinances?nodeId=PTIICOOR_CH10LAUSDE_ARTIIREDI_DIV5LIMUDWDI

The Site Plan and Traffic Review Committee met on August 11, 2026 and submitted the following comments: 
 

1. The applicants shall evaluate the need for upgraded/additional sewer and water services to the property to support the new building addition as soon as possible.  3rd Avenue is being reconstructed currently; late summer/early fall would be an opportune time to upgrade utilities if needed. Applicant: Owner to have a plumber review the existing service connection to the building. If required, he will work with City Staff to get the new services installed during the construction of 3rd Avenue. This step will move forward after review and approval of the project.
2. The applicants will be required to pay SAC & WAC connection charges based on the City of Mankato assessment policy and fee schedule. Applicant - Noted. 
3. The applicants shall be aware that the building is located within the FlexZone, which requires advanced scheduling for curb-to-curb service. The nearest Route 10 bus stop is approximately 0.75 miles away on foot. Applicant - Noted.
4. The applicant shall meet all parking requirements for residents and staffing based on the calculations in Mankato City Code Chapter 10. Applicant - The current use of the property is congregate housing which requires one-half space per doweling unit. The building currently has 18 rooms with an additional 16 rooms being proposed (total of 34). The required stalls for the current and proposed stalls would be 17 stalls, plus the number of employees on the major shift. The current employees on the major shift are as follows: two staff members plus 2 caterers during dining time. So, in conclusion, the required stalls would be 17 for th units plus 4 for staff totaling 21. Most of the current individuals that live in the building do not have their own vehicle and depend on public transportation. The owner plans to work with the City Staff to coordinate access to public transportation. 
5. Applicant shall license the facility through the State of Minnesota and coordinate all necessary services through Blue Earth County. Applicant - Noted. 

The applicant is requesting a conditional use permit to construct and operate a 16-unit congregate micro-apartment addition; and a variance to decrease the rear yard from 66’ to 11.2’ in the R-3, Limited Multiple Family Dwelling District.  

Conditional Use Permit: 
The current facility located at the site operates as a state licensed Rate 1 Room and Board. There are currently 18 bedrooms that are being rented by individuals seeking recovery housing. Attached is the original approval from 1997 (attachment 8). 

The request for the conditional use is to allow an expansion to the south of the existing building that would include creating an additional 16 units. The units would act as "micro apartments" for tenants living on site. Code language for the R-3 zoning district states that dwellings, specifically multiple-family, are not to exceed eight units in one building or on one lot. 

The applicant requested that a portion of the property be considered congregate housing, but the applicant has not provided evidence that the proposal conforms to the definition of congregate housing as stated below: 

Congregate housing means a residential facility for four or more elderly persons (aged 60 years or older) within which are provided living and sleeping facilities, meal preparation, laundry services, and room cleaning. Such facilities may also provide other services, such as transportation for routine social and medical appointments, and counseling. The term "congregate housing" may also be referred to as an assisted living facility.

The site provides 22 stalls for the existing uses of the building and is based on previous council approval. Parking for the additional units on site shall be provided at 1.5 stalls per unit. Plus one space per staff member. Based on this calculation, an additional 28 stalls shall be provided on site or an unencumbered lot within 500 feet from the site. 

Variance: 
The applicant is requesting a variance to the rear yard setback. The request is to reduce the rear yard from the required 25% of the lot depth to a setback of 11.2 feet. The variance is being requested in order to allow for an approximately 47’ X 67’ building addition.

The applicant provided the following answers to the variance questions: 

1. In your opinion, is the variance in harmony with the purposes and intent of the ordinance? Yes. The intent of the R-3 district and local zoning ordinances is to ensure orderly, safe, and compatible residential development that serves community needs. Granting this variance allows an existing, legally established board and lodge to expand its contiguous footprint with 16 congregate micro-apartments tailored for past and present residents. Because the site operates with shared central common spaces and administrative oversight, expanding onsite rather than constructing a separate building preserves land efficiency and keeps the visual scale compatible with the surrounding residential neighborhood. Staff: Code language for the R-3 zoning district states that dwellings, specifically multiple-family, are not to exceed eight units in one building or on one lot. 
2. In your opinion, is the variance consistent with the comprehensive plan? Yes. The City of Mankato Comprehensive Plan emphasizes diverse housing options, redevelopment of infill properties, and micro-unit/flexible housing models for vulnerable populations. Expanding New Hope Board and Lodge with private capital directly aligns with these goals by expanding stable, substance-free housing, preventing housing instability, and supporting workforce reintegration—all within a designated mixed-density residential corridor. Staff: The strategic plan does recommend diversification of housing options. 
3. In your opinion, does the proposal put property use in a reasonable manner? Yes. The continuous operation of a board and lodge and supportive congregate housing is a reasonable and established use of this property. Adding 16 micro-units directly addresses a severe capacity crisis where qualified past and present residents seeking independent recovery living are routinely placed on waitlists. Constructing an attached addition rather than purchasing a separate, detached site is the only operationally viable method to maintain shared staffing, centralized security, common dining, and unified administrative oversight. Staff: The proposed use does not align with the Mankato City code as listed above related to density and parking. 
4. In your opinion, are there circumstances unique to the property? Yes. The primary structure was positioned centrally on the parcel prior to modern expansion needs and modern setback rules, establishing fixed access points, parking alignments, and utility corridors. The physical lot dimensions and fixed position of the existing foundation limit where new construction can attach. Forcing strict adherence to standard yard setbacks shrinks the buildable footprint to a point where an addition becomes structurally infeasible and economically unviable, creating a unique physical hardship tied directly to the property's layout. 
   Staff:There are no environmentally sensitive areas on the property and the lot standards exceed the minimum requirements in the R-3 district. 
5. In your opinion, will the variance maintain the essential character of the locality? Yes. The property has functioned seamlessly as a board and lodge in this neighborhood. The architectural design of the proposed micro-apartment addition will mirror the scale, rooflines, and exterior finishes of the existing building and neighboring multifamily structures. Parking lots and landscape buffers will ensure the expansion integrates quietly into the neighborhood without causing off-site parking congestion or altering the streetscape. Furthermore, adjacent neighborhood stakeholders have provided documented support for this proposal. Staff: The proposed use does not align with the Mankato City code as listed above related to density and parking. 

 

Staff submits the following findings: 

1. The use as proposed exceeds the rental density for the R-3 District. 
2. The parking does not conform to Mankato City Code Chapter 10. 

Staff recommends denial of the Conditional Use Permit and the Variance.