Resolution approving a Conditional Use Permit to allow the operation of an Intensive Outpatient Treatment Clinic in the R-3, Limited Multiple Dwelling District (1618, 1620 and 1622 3rd Avenue); by request of RJC Rental Properties LLC.

At the Planning Commission meeting on September 23, 2026, the Planning Commission recommended the adoption of the resolution approving the conditional use permit.

RJC Rental Properties, LLC, has applied for a conditional use permit to allow an Intensive Outpatient Treatment, IOP, clinic in the R-3, Limited Multiple Family Dwelling district. The property is addressed at 1618 3rd Avenue and was recently rezoned to R-3, Limited Multiple Family Dwelling, zoning district to match the City’s underlying Land Use Plan. 

Proposal
According to the applicant's narrative, the proposed use will occupy the premise previously used by the House of Hope. The applicant has indicated that the House of Hope moved their operations in approximately 2020, and the applicant desires to resume operations that are similar under the business name "Golden Anchor Treatment Services." The request seeks to operate an Intensive Outpatient Treatment (IOP) program. This use will provide structured, evidence-based treatment services for adults experiencing substance use and co-occuring mental health disorders. The applicant describes that the program is designed to help individuals achieve and maintain recovery while continuing to live independently within the community.

The proposed IOP clinic desires to provide licensed health services that are outpatient in nature and do not require overnight stays or residential occupancy. Participants attend pre-scheduled treatment sessions several days per week. The proposed services offered at this location include the following:

• Individual counseling
• Group therapy (Tue, Wed & Thurs 8am–12pm. or Mon 1pm–4pm)
• Family education and counseling
• Substance use disorder assessments
• Mental Health support and care coordination
• Relapse prevention planning 
• Recovery education and life skills development
• Case management and referrals to community resources

The applicant's narrative states that the facility will be licensed by the Minnesota Department of Human Services under Minnesota statute 245G. The applicant has further clarified that this is a similar license to what was previously in place for the House of Hope. A recommended condition of approval is included herein regarding the licensing of the subject premises. 

The hours of operation are weekdays, Monday through Friday, from 8:00 a.m. to 8:00 p.m. No weekend hours are proposed at this location. A recommended condition of approval is included herein that provides recommended expectations on hours of operation for the clinical use. 

Four licensed alcohol and drug counselors, licensed mental health professionals, clinical supervisors and administrative personnel will be working at the facility during operating hours. The applicant indicates that a maximum of four employees will be employed at the premises.

All clients will have pre-scheduled appointments, and will depart immediately following their service. The anticipated maximum attendance at any given time is 16 clients, and the applicant intends to stagger appointment times to reduce parking demand and vehicle traffic. A recommended condition is included herein regarding the maximum capacity. 

All clinic services offered at the location will be held entirely indoors, within the subject premises. 

The clinic will not be distributing any medication at the location, including methadone and suboxone.

Zoning and Code Standard
The primary structure involved with the request is located at 1618 3rd Avenue. 1614 3rd Avenue is included with the request as it is utilized to access the parking stalls on the subject property. 1620 3rd Avenue is also included with the request as the subject property is utilized for parking purposes. All the subject properties are zoned R-3, Limited Multiple Dwelling District. The Mankato City Code outlines that within the R-3 zoning district, "Hospitals and medical clinics" are considered conditional uses. Other conditional uses as applicable to the R-3 zoning district include bed and breakfast residences, campgrounds within public parks, cemeteries, crematories and mausoleums, child daycare facilities, churches, congregate housing, golf and country clubs, government institutions, municipal buildings, museums and libraries, nursing homes and similar institutions, and other residential, institutional, or government services uses determined by the planning agency to be of the same general character as the permitted and conditions uses and found not to be determinantal to existing uses and the general public health, safety and welfare, parking lots meeting certain conditions, public housing units, and public utilities and essential services conforming to the Code. 

The Code provided definition of a clinic is, "a place used for the diagnosis and treatment of sick, ailing, infirm, injured persons, and those persons who are in need of medical attention. Overnight care facilities are not provided at the clinic." The definition of hospital in the Code is, "an institution providing health services for human in-patients and medical or surgical care for the sick or injured. The term "hospital" includes related facilities such as laboratories, outpatient departments, training facilities, central service facilities, staff offices, and overnight accommodations for patients." The proposed use, an Intensive Outpatient Treatment clinic, fits within the definition as provided by the Mankato City Code for a clinic. 

Site Plan
A site plan has been provided, and no site improvements are proposed. 

The site plan identifies 15, 9' X 20' existing parking stalls, and bicycle parking. Ten parking stalls are shown on the lot of the building where the IOP will operate at 1618 3rd Avenue, and access to the stalls will require traversing over the property to the south at 1614 3rd Avenue. Five parking stalls are shown on the property at 1620 3rd Avenue, which the applicant represents is currently vacant. The required vehicle parking for a clinic is one space per 250 square feet of floor area, plus one space per staff member. The plans show 2,100 square feet of office space, and 5 employees and, thus, 14 parking stalls are required. A recommended condition of approval is included herein that the parking standards shall be achieved, and that staff be limited to available parking or additional code-compliant parking be added to achieve the requirements for the clinic's use. A recommendation condition of approval includes that, prior to occupancy, all parking stalls be striped in accordance with the City of Mankato parking standards. Additionally, a recommended condition of approval includes that all properties must remain under the same ownership for access purposes, or a legally recorded easement will be necessary for the shared access routes. Further, a recommended condition includes that the future use of the existing building located at 1620 3rd Avenue, where 5 parking stalls are being provided for this use, will be limited to available parking. 

All lighting on the subject property will be required to conform to the Mankato City Code, and a recommended condition is included here to this end. 

If signage is desired by the applicant, they will be required to obtain a sign permit prior to fabrication and installation and a condition to this end is included herein. 

The applicant will be required to comply with the Mankato City Code regarding their refuse storage containers, and a recommended condition is included to address as much. All garbage and recycling bins will be required to meet the Mankato City Code,

which requires a gated opaque fence or wall of sufficient height to completely screen the containers from view by all adjoining property and streets. Alternately, the refuse bins may be stored indoors. 

Traffic
The applicant has provided traffic data showing the following: 

• AM peak hour trip generation is 20 trips (20 IN 0 OUT)
• PM peak hour trip generation is 20 trips (20 IN OR 20 OUT).  
• Daily trip generation is estimated at 40 trips (20 IN 20 OUT), assuming all clients and staff arrive in separate vehicles.

The City's traffic engineer had reviewed the data and finds that the addition of these trips is not anticipated to be of concern for either County State Aid Highway 5 (3rd Avenue), a four-lane county highway, or Pine Street/Chestnut Street — both local roadways with side street stop control, the peak hour trips are very low and existing roadways have sufficient capacity. 

The site is served by a pedestrian sidewalk located along 3rd Avenue. The nearest bus stop is located east of Franklin Elementary School, a distance of approximately 2/3 of a mile, and from the stop, pedestrian sidewalks are provided to the site. While there is no fixed bus route in this area, the business is located in the Kato Flex zone service area. The City of Mankato Transit has indicated that because the business is located within the Kato Flex Zone, clients who reside in the City's service area will be allowed to utilize Kato Flex to access services at this Kato Flex Zone business. This means that curb-to-curb service, in keeping with the Kato Flex standards, will be provided for clients going to this location. 

While heavy truck traffic is not anticipated based on the submitted information and the proposed use, a recommended condition is included herein that requires the applicant to prepare a plan for review and approval of staff prior to occupancy that contemplates onsite loading related to pick up/drop off of clients and queuing and site deliveries. The plans should address general site deliveries, and should provide a plan for pick-up/drop-off of clients. Stacking and queuing that blocks existing parking stalls or the alley will be prohibited.  

Floor plans
No interior changes are proposed related to the floor plans. The one-story building, which does not have a basement, shows approximately 2,100 square feet of livable/usable area. Eight office spaces are shown on the floor plans, along with an activity area, restrooms, a mechanical area, and storage areas. If future occupancy of the storage areas is for anything other than storage, additional review and approval by way of an amended conditional use permit will be required. 

Noise
The applicant has indicated that all operations will occur indoors, at this subject premises. A recommended condition of approval is included in this regard. 

Neighborhood Meeting
The applicant held a neighborhood meeting on September 9, 2026, at 6:00 p.m. A summary of the neighborhood meeting is included in the attachments. A recommended condition of approval is included herein that, in order to promptly address potential neighbor questions that arise in the future, that a complaint hotline/local access contact phone number be provided for use by the neighborhood. This recommendation outlines that the number should be provided prior to the granting of occupancy of the space and that the contact should be local, and should be able to respond in the event that questions or concerns arise, including off-hours.