CY36-26 tabled at August 26, 2026 PC meeting

Request of Bolton and Menk, on behalf of Kody Schendel of New Hope Board and Lodge and KD2 Properties, LLC, for an amended conditional use permit to allow a building addition and an operational expansion; 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 a 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 for a variance to decrease the rear yard from 66’ to 25' in the R-3, Limited Multiple Family Dwelling District.  

The variance is being requested in order to allow for an approximately 52.5' X 60' 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 allow a building addition and an operational expansion of the current facility; and a variance to decrease the rear yard from 66’ to 25' 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.

In 1997, a conditional use permit was granted allowing the House of Hope operations. The original 1997 Planning Commission report and City Council resolution from 1997 are included as attachments. 

The property owner requested that the Planning Commission table a review of the items at their August 26, 2026, meeting to make modifications to their request. As requested, the Planning Commission tabled the item and will take it up at their September 23, 2026, meeting. 

A newly revised site plan shows a 60' X 52.5', approximately 3,150 square foot, addition located on the southerly side of the existing facility. The August 2026 submission has been modified to now contain 16 new bedrooms, each having their own bathroom. There are eight bedroom units on each floor of the proposed 2-story addition. The proposed new addition also includes shared kitchen, dining and living room spaces on each floor. This replaces the previous apartment-type units. 

Variance: 
The applicant is requesting a variance to reduce the rear yard setback from 66' to 25'. The Mankato City Code requires a rear yard setback for all principal buildings other than one-and-two family dwellings of 25 percent of lot depth, provided the yard is a minimum of 25 feet or a maximum of 75 feet. The variance is being requested in order to allow for an approximately 60' X 52.5' building addition.

The applicant has modified their August 2026 submission from an initially proposed 11.2' setback, to a proposed 25' rear yard setback.