Resolutions approving a variance to decrease the rear yard from 66 feet to 11.2 feet in the R-3, Limited Multiple Family Dwelling District; and amending the Conditional Use Permit to construct and operate a 16-bedroom expansion to an existing recovery residential facility (1429 3rd Avenue); by request of Kody Schendel.

At the Planning Commission meeting on September 23, 2026, the Planning Commission recommended the adoption of a resolution approving the amendment to the conditional use permit and a resolution approving the variance.

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 feet to 25 feet 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. The existing facility provides space for private offices, gathering spaces for tenants, shared laundry, a commercial kitchen and dining room. Food services are currently being provided by an onsite catering group. 

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 be reviewing it at their September 23, 2026, meeting. 

A newly revised site plan shows a 60 foot X 52.5 foot, 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 a shared kitchen, dining and living room on each floor. This replaces the previous apartment-type units. 

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 on an unencumbered lot within 500 feet from the site. Alternatively, the applicant can seek reasonable accommodation under the Fair Housing Act to allow for parking flexibility.

Variance: 
The applicant is requesting a variance to reduce the rear yard setback from 66 feet to 25 feet. 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 foot X 52.5 foot building addition.

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

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 new board and lodge units 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.
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.
3. In your opinion, does the proposal put property use in a reasonable manner? Yes. The continuous operation of a board and lodge housing is a reasonable and established use of this property. Adding 16 new board and lodge 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.
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.
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 additional 16 board and lodge units 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.

The applicant did host a neighborhood meeting per staff's recommendation. The meeting recap is included in the attachments.