CY38-26

Request of Spirits at Rest for a conditional use permit to allow a licensed residential substance use disorder treatment facility in the B-3, Highway Commercial, zoning district. The subject property is described as Lot 1, Block 3, Wolfe Addition No. 2 (80 Power Drive; BE County PID R010903378003). 

The applicant is Spirits at Rest. 

The applicant is requesting a conditional use permit to allow for a licensed residential substance use disorder treatment facility in the B-3, Highway Commercial, zoning district.

The subject property is located at 80 Power Drive and is legally described as Lot 1, Block 3, Wolfe Addition No. 2 (BEC PID R010903378003). 

The subject property is primarily a vacant agricultural field with a notable paved parking area in the NE corner of the property. 

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

The applicant has provided copies of the Wolfe Addition No. 2 Wetland Type & Boundary and Incidental wetlands Application from June 2022, as well as a Wetland Replacement Plan from August 2022, and a Minnesota Wetland Bank Credits Withdrawal Form from October 2022. 

The 2022 Type & Boundary Applicant did not identify any wetlands on the subject property. Significant construction has since occurred on adjacent properties and recent aerial imagery of the subject property appears to show a possible incidental wetland forming on the midpoint of the western property boundary. The applicant proposes to construct an earthen berm near the location of the aforementioned possible incidental wetland. 

The applicant proposes to extend utilities from the existing services present within Power Drive. The exertion would add two new hydrants within the subject property. 

The applicant proposes to construct two onsite stormwater swales for onsite stormwater treatment. 

The Mankato City Code related to B-3, Highway Business District zoning criteria, can be found in Chapter 10, Article V, Division 8, as linked here: 
https://library.municode.com/mn/mankato/codes/code_of_ordinances?nodeId=PTIICOOR_CH10LAUSDE_ARTVCODI_DIV8HIBUDI 
 

The Site Plan and Traffic Committee reviewed the request at their August 11, 2026, meeting and the following comments were provided. The applicant subsequently replied, as shown in the italics:

1. Applicants shall provide fence details. The proposed privacy fencing shall conform with Mankato City Code. A fence permit shall be obtained prior to installation of any fencing. Applicant: "Updated plans will show the privacy fence location, height, material, color, and gates. The fence will comply with Mankato City Code, and a fence permit will be obtained before installation."
2. Applicants shall provide a narrative depicting how the outdoor fenced area shall be utilized. Applicant: "The fenced outdoor area will provide clients with a private, staff-supervised space for scheduled recreation, walking, quiet reflection and peer interaction. It will include limited amenities such as seating, tables, shade features and a designated smoking area with appropriate receptacles. Access and activities will be managed through the facility's daily schedule. Privacy fencing and landscaping will minimize impact on the adjoining properties."
3. Applicant shall provide details for the proposed shed / waste enclosure. Applicant: "Updated plans will show the location, dimensions, materials, gates and screening for the proposed shed/waste enclosure. The enclosure will complement the building and provide safe access for waste collection without affecting parking of circulation."
4. Applicants shall update plans to specify the proposed number of bicycle parking stalls that will be provided onsite. Applicant: "The updated site plan will show the required number, type and location of bicycle parking spaces. We will provide a 6-bike wave bike rack."
5. Applicant shall verify the dimensions of the resident loading/unloading area to ensure that the City of Mankato’s bus transit system may serve the proposed use. Applicant: "The facility will provide a safe, accessible passenger drop-off and pickup area to ensure the turning movement for the Paratransit buses."
6. Applicant shall clarify the intended off-street parking lot standard that is intended to be utilized. Applicant: "The project will retain the existing pavement and curbing where practical. Parking stalls, accessible spaces and drive aisles will meet City dimensional standards. Due to the type of use not directly being spelled out in City Code, we worked with the planning staff to use the Congregate Housing standards along with the need for one stall per employee on a major shift. This is noted on the plan."
7. Applicant shall provide an updated landscaping plan that depicts landscaping of the interior parking lot islands, per Mankato City Code standards. Applicant: "The landscape plan will be updated to show the treatment of each interior parking lot island in accordance with City Code at the time of permitting."
8. Applicants shall ensure that screening meets Mankato City Code Chapter 10. Applicant: "The site, landscape and architectural plans will be coordinated to meet Chapter 10 screening requirements at the time of permitting. Proposed screening includes the western berm, landscaping, privacy fencing, and the waste enclosure."
9. The applicant shall be aware that all landscaping, utility, and amenity spaces must be completed prior to occupying the subject property. Applicant: "The applicant acknowledges that required landscaping, utilities and amenity areas must be completed before occupancy."
10. Applicant shall be aware that all mechanical equipment be screened according to Mankato City Code Chapter 10. Applicant: "All ground-mounted and rooftop mechanical equipment will be screened as required by Chapter 10. Final plans will show equipment locations and screening details."
11. Sheet C2.06 – Add inlet protection of catch basins in Power Drive. Applicant: "Civil Plans have been updated to show inlet protection for the affected catch basins in Power Drive." 
12. Sheet C4.01 – Connection to Ex. 8” Sanitary sewer service shall be made with 6”x8” solid PVC gasketed eccentric reducer. Applicant: "Sheet C4.01 will be revised to show a 6-inch-by-8-inch solid PVC gasketed eccentric reducer at the existing sanitary sewer connection."
13. Applicant shall be aware that this is a change to Common Plan of Development previously approved by the City. This constitutes the following:
    1. Verification and as-built of pond B grading and outlet structure to substantiate change in computed WQV to 1005.5.  
    2. Provide the updated Hydraulic and Hydrologic Model for verification of discharges and HWL of provided storage basins and Pond B. Applicant: "The applicant acknowledged the change to the approved Common Plan of Development. Pond B has not yet been constructed, so as-built information is unavailable. Approved plans show Structure P-1 and its 1,005.5-cubic-foot-water-quality volume will be provided. Bolton & Menk will coordinate with City engineering staff to confirm the scope and assumptions for the required hydraulic and hydrologic model update. Generally, if the sum of storage volumes between the two parcels that would have shared Pond D meets or exceeds the planned volume, the HWL's should not be negatively impacted throughout the system. This message was the intent of the memo."
14. Applicants shall be aware that elimination of Pond D impacts adjacent 9-acre parcel from Common Plan. Any approval of this modification does not eliminate parcel from future coordination or alteration of proposed storage basin with adjacent parcel. The City shall not be responsible for this coordination and will enforce stormwater compliance for future development of adjacent site. Applicant: "The applicant acknowledges that eliminating Pond D does not remove the adjacent nine-acre parcel from future stormwater requirements or private coordination. The revised stormwater memorandum will document this condition. Any future shared infrastructure or cost obligations will require separate agreements between the affected property owners."
15. Applicants shall provide drainage map for change in site design from Common Plan. Analysis must be conducted at each discharge location. Proposed discharge leaving the site at each location without first being routed through some sort of retention facility must not exceed pre-project conditions. Applicant: "Bolton & Menk will provide revised drainage maps and stormwater analysis for each site discharge point. The analysis will demonstrate that uncontrolled discharge does not exceed pre-project conditions. The design will be revised if the analysis identifies a deficiency."
16. Applicants will be required to pay SAC & WAC connection charges based on the City of Mankato assessment policy and fee schedule. Applicant: "The applicant acknowledges that applicable SAC and WAC charges will be paid according to the City's assessment policy and fee schedule. Final amounts remain subject to the City's calculation and any applicable credits."

Spirits at Rest is seeking a conditional use permit to allow a licensed residential substance use disorder treatment facility at 80 Power Drive, a site located in the B-3, Highway Business zoning district. As proposed, the facility will provide licensed residential treatment. Daily programming will include individual and group counseling, recovery education, peer-support activities, recreation, meals, and personal reflection. The proposed project will not provide services for detoxification, hospital-level treatment, or services outside of the facility’s licensed scope within this specified facility.

The applicant proposes to construct an approximately 20,915 square foot building. The building will contain 44 beds for clients along with necessary accessory spaces such as a kitchen, dining area, chapel, offices, and group rooms. An existing parking lot is located at the subject site, and will be repurposed and utilized for the proposed operation.

Use:
The property is zoned B-3 Highway Business District. The applicant attests that "residential care facilities are expressly listed as conditional uses within this district." Additionally, the applicant attests that the “proposed licensed residential substance use disorder treatment facility qualifies as a residential care facility and is therefore eligible for consideration through the Conditional Use Permit process.” Residential care facilities are not expressly listed as a Conditional Use in the B-3 Zoning District. The B-3 Zoning District allows for unlisted commercial & residential uses (as Conditional Uses), only if they are determined by the planning agency to be of the same general character as the permitted and conditional uses listed in the district and if they are found not to be detrimental to existing uses and to the general public’s' health, safety, and welfare.

The B-3, Highway Business District allows for permitted uses that are listed in the B-1 Zoning District. Medical Clinics are listed as a permitted use in the B-1 and apartments are listed as Conditional Uses* in the B-3 Zoning District. As a medical treatment facility with 24/7 residential services, the proposed residential treatment facility use may be determined to be similar in manner to a medical clinic and apartment use. 

Additionally, uses operated outside of a completely enclosed structure, require a Conditional Use Permit in the B-3 Zoning District. As the applicant proposed to construct a large fenced area on the exterior of the building and hold onsite service operations within the fenced area, this may qualify as an exterior operation. 

The proposed licensed residential substance use disorder treatment facility project is being sought by Spirits at Rest and their development partner, The Factor Group. Spirits at Rest has operated substance use disorder treatment and supportive housing programs in Montgomery, MN since July 2020 and has served more than 300 clients. Prior to any operations occurring, Spirits at Rest must receive licensure from the Minnesota Department of Human Services. Note: At the time of this request, Spirits at Rest is under a purchase agreement for the property and is completing its due diligence. 

Exterior Elevations & Materials:
The design of the building is oriented into expansive wings forming a semi-cruciform shape, which features low-sloped-hipped roofs with multiple steeply angled gable-ends. The proposed exterior elevations show a large variety of design elements throughout each façade, creating a visually unique structure. 

The applicant proposes a variety of exterior materials, primarily residential in nature, including, a thin stone veneer, Hardie square channel siding, wood-look steel siding, asphalt shingles, glazing, and an aluminum storefront.

The proposed shed/ trash enclosure building is presented as a continuation of the exterior elevations of the primary structure. Per Mankato City Code, accessory structures must be constructed of complementary materials and design to the primary structure, and as presented, the proposed structure appears to conform.

The proposed plans do not represent any mechanical/utility equipment on the exterior of the building or within the subject property. As presented, all utility and mechanical equipment may be installed internal to the building. Per Mankato City Code, all rooftop and ground-mounted mechanical equipment shall be sufficiently screened.

A significant outdoor fenced area is presented and shown as a privacy fence within the NW corner of the facility. The fence itself is proposed as a 6’ tall treated wood fence stained to a dark walnut color. The applicant described the outdoor fenced area as an area that, “will provide clients with a private, staff-supervised space for scheduled recreation, walking, quiet reflection and peer interaction. It will include limited amenities such as seating, tables, shade features and a designated smoking area with appropriate receptacles. Access and activities will be managed through the facility's daily schedule”. As the applicant has not represented the intended design of the space, it should be noted that any additional structures or impervious surfaces which are constructed within the fenced area may be subject to review & approval by City Staff prior to installation.

The applicant has not provided a photometric plan or lighting cutsheets for the proposed project. All exterior lighting shall conform to the standards of Chapter 10 Mankato City Code, including, but not limited to, full-cut, fully shielded fixture requirements.

Interior:
The interior of the proposed facility is arranged into non-segmented wings. The north-wing consists primarily of bedroom spaces and a group room. The east wing is constituted of primarily office spaces, staff space, and a waiting area. The south wing contains the primary amenity space, with a large commercial kitchen, dining room, chapel, laundry area, and lobby. The western wing is made up of bedrooms, an exercise space, group room, and access to the extensive outdoor fenced area. The midpoint of the building, the center of the cruciform where each wing meets, is home to an open nursing station, as well as a large lounge, group room, and mechanical/janitorial spaces. Bedroom spaces are arranged in single & double options with an internal bathroom suite in each unit. Seven single-user restroom spaces are shown throughout the core of the building.

Stormwater & Utilities:
The facility will connect to municipal water and sanitary-sewer services. Stormwater collection facilities are proposed to be provided onsite. The applicant proposes to construct two significant stormwater swales, 1) a long thin swale along the western and a portion of the northern property boundary, and 2) a large rectangular swale between the building and Power Drive. That applicant intends stormwater to be managed through these mow-able grass basins and swales, as they are designed to temporarily collect runoff during rain events and then drain and dry over the following days. The applicant states that these swales are not intended to function as permanent ponds and will be incorporated into the maintained landscape. The stormwater management memo provided by the applicant attests that stormwater treatment for the proposed project has already been accounted for by the Wolfe Addition No. 2 Subdivision's Drainage Plan, which depicts multiple regional stormwater basins throughout the subdivision. The project as proposed, is considered a change to the Common Plan of Development previously approved by the City. The elimination of the originally proposed “Pond D” impacts the adjacent 9-acre parcel. Any approval of this modification does not eliminate the parcel from future coordination or alteration of proposed storage basin with adjacent parcel. The City shall not be responsible for this coordination and will enforce stormwater compliance for future development of adjacent site

The applicant proposes to install two hydrants within the subject property to serve the proposed facility.

The applicant has provided an exhibit showing the location of the proposed Snow Storage along the southern and western extent of the private drive, as well as a small area west of the parking lot. In the future, if additional structures are constructed on the subject property, the applicant shall provide an updated snow storage exhibit.

Landscaping:
The applicant proposes to install various shade trees along the southern and southeastern property lines. The grading and landscaping plans depict a short undulating berm along the western side of the subject property to support screening of the use / of adjacent uses. The applicant proposes to install Black Hills Spruce trees along the tops of the berms as well as along the NW portion of the property boundary. The applicant also proposes to install multiple areas of decorative landscaping within the subject property, including a spattering of Gingko trees throughout the property.

The applicant states that: “Required trees, plantings, screening, and ground cover will be installed and maintained as shown on the approved landscaping plan.” The applicant proposes to install 4’ tall hydrangeas along the full extent of the northern and eastern parking lot boundaries. Screening for the parking area must provide sufficient screening for the duration of the year. The proposed hydrangeas do not provide compliant screening due to the inherent seasonality of the plant. Per Mankato City Code, perimeter landscaping shall consist of a combination of ground cover, shade trees or evergreen trees, shrubs, and appropriate screening devices such as decorative walls, fences, or berms. A recommended condition is included that addresses perimeter landscaping of the parking lot.

The proposed landscaping plan depicts parking lot islands, but does not present landscaping within these islands. These interior islands shall be landscaped per Mankato City Code. Interior landscaping shall consist of planting islands with a minimum area of 60 square feet and a minimum width of six feet. The interior landscaping shall constitute at least five percent of the area of the parking lot. A recommended condition is included that addresses landscaping of the interior parking lot islands.

A large vacant area is proposed along the southern portion of the subject property. The applicant’s landscaping plan depicts the area to be planted with prairie grass and flowers. Based on the development of the lot, this open space may serve as a potential location for any planned future expansions.

Access:
Site access will be provided via a singular access from Power Drive. This access is already existing due to the presence of the parking area onsite. This access will serve to provide the site with vehicle access for onsite parking, deliveries, client drop-off & pickup, and emergency access.

Parking & Loading:
The applicant proposes to use a blended parking standard for the facility of 0.5 stalls per bed and one stall per employee. The applicant specified that the intended use type associated with the parking calculations provided is based on the congregate housing standard with an added 1-stall per employee. With 44 beds and 27 employees, 49 total stalls could be required to be provided onsite, if the blended standard was to be utilized. The applicant proposes to construct 69 off-street parking stalls onsite. Parking will occur primarily within the large existing surface lot. A small swath of parking will also be available opposite the resident pick-up & drop-off area on the SW side of the facility. A designated loading dock area is proposed within the SW quadrant of the facility.

The applicant’s site plan depicts the installation of a bike rack near the resident pick-up area. The plan depicts the installation of a 6-stall wave bicycle rack. Based on the information provided by the applicant, City Standards are to be met, as a minimum of four off-street bicycle parking stalls must be provided. 

The applicant provided an emergency vehicle turning movement exhibit showing our ladder truck accessing the site from the curb cut off of Power Drive and circulating to the loading dock at the SW corner of the facility. The applicant does not propose vehicle access to the northwest quadrant of the building.

Traffic:
The applicant has provided a Trip Generation Memo. This Traffic Memo stated that “the proposed potential traffic generators include an estimated 44 inpatient treatment beds & 12 employees on the largest shift, as well as an onsite community meeting space for 10–20 people that is expected to be used once daily during the week. It is expected that the vast majority of the trips will travel to/from the south. The trip generation potential for the proposed development is below the typical MnDOT (250 peak-hour vehicle trips or 2,500 daily vehicle trips) and Blue Earth County (100 peak hour vehicle trips) thresholds for consideration of a Traffic Impact Study. Additionally, due to the low number of peak hour site trips generated, no additional turn lanes are recommended at the site driveway.”

The applicant further attests that, “Traffic will be generated by a fixed residential population and a managed operating schedule, rather than by continuous customer turnover. Clients will reside onsite and receive most treatment, meals, recreation, and support services within the facility. Vehicle trips will consist primarily of employee arrivals and departures, scheduled admissions and discharges, weekend visitation, deliveries, and staff-coordinated client transportation. Admissions and discharges will generally occur between 9:00 a.m. and 5:00 p.m., while family visitation will be scheduled on weekends between 1:00 p.m. and 4:00 p.m. Staff scheduling, deliveries, and client transportation will be managed to avoid unnecessary concentrations of vehicle activity.”

It is not anticipated that the proposed use will cause undue traffic congestion on Power Drive or the surrounding roadway network.

Facility & Operations:
The applicant has provided the following information pertaining to operations of the proposed facility:
“The Mankato facility will provide licensed residential treatment only. It will not provide detoxification, hospital-level medical care, or onsite medical procedures. Prospective clients will be assessed before admission to confirm that the facility offers the appropriate level of care. Individuals requiring detoxification, hospital-level treatment, or services outside the facility's licensed scope will be referred to appropriate outside providers. The facility will create approximately thirty stable, skilled jobs for licensed clinical, nursing, and support personnel. The property will not operate as a walk-in clinic or high-volume commercial establishment. Clients will receive treatment, meals, recreation, and recovery-support services onsite, limiting unnecessary travel.”

“Clients will reside onsite while participating in a structured treatment program. Comprehensive substance use assessments will be completed by qualified professionals to confirm the appropriate level of care and support individualized treatment planning. Daily programming will include individual and group counseling, recovery education, peer-support activities, recreation, meals, and personal reflection. The campus includes residential accommodations with shower and bath facilities, laundry facilities, individual counseling offices, group rooms, dining and kitchen facilities, a chapel, indoor recreation, personal-reflection areas, and designated supervised outdoor spaces. Mental-health or psychiatric needs that exceed the facility's scope will be coordinated through appropriate outside providers. Outdoor activities will occur only in designated areas and will be supervised by staff. The building, grounds, parking areas, landscaping, and outdoor spaces will be professionally maintained.”

“Clients will reside onsite and participate in a structured, supervised daily program. The facility will maintain an alcohol and drug-free environment governed by written policies and state licensing requirements. Safety measures will include continuous professional staffing, controlled building access, alarmed exterior doors and windows, overnight client checks, medication protocols, and written emergency procedures. Client movement off-site will be strictly managed and coordinated by staff as part of each structured treatment plan, preventing unmanaged wandering or unauthorized departures into surrounding commercial and residential areas.”

“The facility will operate 24 hours a day, seven days a week. Admissions and discharges will occur between 9:00 a.m. and 5:00 p.m. Family visitation will be scheduled on Saturdays and Sundays from 1:00 p.m. to 4:00 p.m. Deliveries and staff-coordinated client transportation will be managed to avoid unnecessary concentrations of vehicle activity. The building, grounds, landscaping, parking areas, and outdoor spaces will be professionally maintained. Together, the site design and operating practices are intended to minimize traffic, noise, lighting, and other potential effects on neighboring properties.”

“The professional team will include licensed alcohol and drug counselors, clinical leadership, nursing staff, recovery-support specialists, peer-services staff, and other trained employees appropriate to the licensed program. Nursing staff will assess client health needs, administer medications, and coordinate referrals when outside medical care is required. The facility's staffing model supports a high staff-to-client ratio. Staff will be trained in crisis prevention, relational response, verbal intervention, and de-escalation. Emergency protocols will direct staff to manage behavioral and medical concerns internally whenever appropriate and to contact local emergency responders only when a client's health needs exceed the facility's licensed scope or require outside emergency medical care.”

“Mankato serves as a regional center for healthcare and human services in Southern Minnesota. The proposed facility is consistent with that regional role by expanding access to licensed residential substance use disorder treatment within the community. Blue Earth County Human Services has identified a continuing regional need for substance-use disorder services and has provided a letter supporting the Spirits at Rest project." The aforementioned letter of support provided by Andrew Carr with Blue Earth County Services is dated July 16th, 2026, and includes language regarding detoxification, a service that Spirits at Rest does not propose to provide at this time. 

Community Outreach:
City Staff provided the applicant with a list of properties within the nearby residential subdivisions so that the applicant may directly interface with the residents of the adjacent neighborhood. City Staff recommended that the applicant provide Community Outreach prior to submission of the application. The applicant states that, “Spirits at Rest will provide broader informational outreach to the neighborhood north of Augusta Drive, direct residents to project information and frequently asked questions, and conduct door knocking before the public hearing.” This includes hosting a Community Open House on Monday, August 24, 2026, from 6:30-8:00pm. An example copy of the open house invitation has been provided to Staff. The applicant states that they sent out letters/invites to 166 businesses and households. 

Residents of the subdivisions located to the north of the proposed project site have connected with the applicant and City Staff. A letter outlining a series of questions and concerns was provided to the applicant and said applicant has directly responded to each aspect of the letter. The applicant attests that they will maintain ongoing communication with the adjacent neighborhood. Spirits at Rest will serve as the designated point of contact for neighboring property owners.

Staff respectfully submits the following findings of fact for the requested Conditional Use Permit:

1. Medical Clinics are considered a conditional use in the B-3 District. 
2. The request is in keeping with the comprehensive planning policies of the City as the underlying land use plan identifies the subject property as "Commercial", and uses similar in character to this use are identified in the commercial zoning districts as permitted and conditional uses.  
3. The proposal does not interfere with or diminish the use of property in the immediate vicinity.
4. The proposal does not cause undue traffic congestion. No changes are proposed to the public street system. The applicant has attested that no significant change with respect to trip generation, site operations and overall traffic impact to the area shall occur with the proposed reuse of the subject property.
5. There are no known historical or architectural resources on the site. 
6. There are no known natural or environmental features on the site. 
7. It will not cause a negative cumulative effect and effect on the City as a whole.
8. The proposal will not jeopardize the public's health, safety, or general welfare. 
9. 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. 
10. The applicant has confirmed their awareness that this proposal is a change to the Common Plan of Development previously approved by the City.

Staff recommends approval of the Conditional Use Permit with the following conditions: 

1. At the time of building permit, a photometric plan shall be submitted along with fixture cut sheets that conform with Mankato City Code Chapter 10.
2. At the time of building permit, an updated landscaping plan shall be submitted that depicts landscaping of the interior parking lot islands and screening requirements. Plan shall conform with Mankato City Code Chapter 10. 
3. Any proposed mechanical equipment shall not be visible from the adjacent street frontage and be screened according to Mankato City Code Chapter 10. 
4. Applicant shall coordinate with City of Mankato Public Safety to ensure sufficient fire coverage and public safety access to all required portions of the subject property.
5. Approval of this modification does not eliminate the parcel from future coordination or alteration of the proposed storage basin with an adjacent parcel. The City shall not be responsible for this coordination and will enforce stormwater compliance for future development of the adjacent site.
6. The applicant shall be subject to SAC & WAC fees based on the City of Mankato assessment policy and fee schedule.
7. Any future expansion of services or structures on the Subject Property shall be subject to review and approval of the City of Mankato in accordance with all applicable Mankato City Code standards.
8. A fence permit shall be obtained prior to installation of any fencing on the subject property.
9. The applicant shall obtain a sign permit for any desired site signage prior to fabrication and installation.
10. No outside storage shall be permitted on the subject property unless fully enclosed/screened.
11. All refuse containers shall be fully enclosed in conformance with Mankato City Code Chapter 10. 
12. Loading and unloading shall not interfere with the operation of adjacent uses.