CY41-25

Request of Rice Companies for a conditional use permit to allow unenclosed storage of materials, products and equipment in the PI, Planned Industrial, zoning district, and for an easement vacation. The subject properties are described as Lots 1 and 2, Block 1, Westman Industrial Park No. 2, Mankato. (2416 Volk Avenue).

The anticipated date of City Council action is September 8, 2025. 

The applicant is Rice Companies.

The applicant is requesting a conditional use permit to allow unenclosed storage of materials, products and equipment for an industrial and construction equipment business in the PI, Planned Industrial zoning district, and for an easement vacation.

The subject properties are described as Lots 1 and 2, Block 1, Westman Industrial Park No. 2, Mankato. (2416 Volk Avenue, Blue Earth County PID R010906127022 and R010906203006).

The subject properties are currently vacant.

The subject properties are zoned PI, Planned Industrial District.

There are no known environmentally sensitive areas on the site.

Public utilities are available to the proposed project area from Volk Ave and Lundin Blvd. Existing residential water and sanitary infrastructure is present within the site connected off of Volk Ave, this is proposed to be removed. The applicant proposes to connect water/sanitary sewer from Volk Ave to the site.

Mankato City Charter Section 10.04.b. provides standards for the vacation of easements on private property. Linked Here:
https://library.municode.com/mn/mankato/codes/code_of_ordinances?nodeId=PTICH_CH10MIPR_S10.04.BVAEAPRPR

Mankato City Code Chapter 10. Article VII. Division 2. Provides standards for the PI Planned Industrial District. Linked Here:
https://library.municode.com/mn/mankato/codes/code_of_ordinances?nodeId=CH10LAUSDE_ARTVIIINDI_DIV2PIPLINDI

The Site Plan and Traffic Committee reviewed the request at their August 12th, 2025 meeting and the following comments were provided. The applicant subsequently replied, as shown in the italics:

1. The applicant shall clarify whether they intend to combine the two lots depicted as the subject area. To be considered one zoning lot, the parcels must be combined or have a deed restriction mandating the parcels are to be owned, operated, and sold jointly. If the applicant wishes to combine the two parcels, they will need to work with Blue Earth County.  “They Will Be Combined into One Lot- Will Work with Blue Earth County”
2. The site plan must be updated to provide curb & gutter for the entirety of the parking area, driving, and outdoor storage area in accordance with Mankato City Code.  “Noted on Site Plan A100”
3. The applicant shall provide the plans depicting the height and construction of the proposed refuse enclosure.  “Noted on Site Plan A500”
4. The applicant shall provide plans detailing the area shown as “bollard-mounted power receptacles at charging station” shown along the northern boundary of the unenclosed storage area.  “Noted on Site Plan A500”
5. The applicant shall work with Xcel Energy to remove/relocate the overhead utilities present within the proposed vacated easement.  “Acknowledged”
6. The applicant shall provide proper notification to MPCA regarding the installation of the above-ground storage tanks on site. Note: Fueling of vehicles has not been specified to occur on site, but if it is to occur, MPCA substance transfer area requirements may need to be met.  “Acknowledged”
7. The applicant shall verify if an industrial storm water permit is needed based on the proposed tanks. If one is needed, the applicant shall obtain one.  “Acknowledged”
8. The applicant should be aware that a separate fire permit is needed for the proposed tanks.  “Acknowledged”
9. The applicant shall provide a narrative stating the proposed hours of operation and the maximum number of staff working on a single shift.  “Hours of Operation Are 7:30am To 4:00pm M-F and Employees Per Shift Are 6”
10. The application shall provide landscaping detail sheets that demonstrate conformance with Chapter 10, Article X, Division 8 of the Mankato City Code, which include, but not limited to, the size of the vegetation and planting details.  “Noted on Site Plan A101 & A500”
11. The applicant shall be required to investigate for unsealed wells and soil concerns, like remaining foundations or improper fill. If unsealed wells are found to be located on site, the applicant must work with Blue Earth County to properly record and seal the wells prior to issuance of building permit.  “Acknowledged”
12. The applicant shall provide an engineered drainage plan demonstrating the sufficiency of the proposed on-site drainage. “Please See Note Above from Bolton & Menk”
13. The applicant will be subject to utility connection fees.   “Acknowledged”
14. The applicant must provide landscaping around the proposed “new transformer” to provide screening from public roadways.  “Acknowledged”
15. The applicant should be aware that all signage must be reviewed and permitted prior to installation.  “Acknowledged”
16. The applicant should be aware that existing public utility services located on site shall be abandoned/vacated back to the main at Volk Avenue unless the applicant intends to utilize them for development.  “Acknowledged”
17. The applicant shall provide a stormwater report.  Please See Note Above from Bolton & Menk”
18. The applicant shall provide a traffic memo detailing the trips generated by the development. This information shall be provided with the Site Plan comment responses.   “Estimated Trips in And Out Per Day Is 10-15”
19. The applicant shall confirm intent of the empty space in northeast corner of site.  “Intent of Northeast Corner Will Remain Green Space (Grass)”
20. The applicant shall provide a more detailed grading plan as soon as possible.  “Noted in Site Plan A103 & Please See Not Above from Bolton & Menk”
21. The applicant shall provide a hydrant coverage map. Noted in Site Plan A100
22. If not already complete, applicant shall log in to the online portal and make notification fee payment.  “Completed/Paid”

General Applicant Comment: “Bolton & Menk intends to support the submitted project by providing civil engineering services that will include items such as the drainage plan, a grading plan, and stormwater management plan to satisfy review items l, q, and t. Additionally, the engineering services would include those necessary for code compliance of all other site aspects related to civil engineering. It is understood that all Site Plan Review comments may be recorded conditions of the Conditional Use Permit approval and shall be addressed prior to issue of building permit(s).”

The applicant, Rice Companies, is requesting a Conditional Use Permit to allow unenclosed storage of materials, products, and equipment for an industrial and construction equipment business in the PI, Planned Industrial Zoning District, as well as the vacation of an existing utility easement located beneath the proposed building site.

The applicant intends to construct a 10,000 sq. ft. building and outside storage area for "United Rentals," an industrial and construction equipment business to be located at 2416 Volk Avenue.

Conditional Use Permit

The Mankato City Code allows unenclosed storage of materials, products, and equipment in the PI, Planned Industrial Zoning District through the issuance of a Conditional Use Permit, provided the use conforms to Chapter 10, Article X, Division 2 of the Mankato City Code.
The site plan shows the construction of a new 10,000 sq. ft. structure and an enclosed outside storage area on the western side of Volk Avenue across Lots 1 & 2 of Block 1 of Westman Industrial Park No. 2 Subdivision.

Two accesses are shown to the proposed site: one from the south side of Lundin Boulevard and one from the west side of Volk Avenue. The existing driveway, apron, and curb from Volk Avenue are to be removed and infilled.

The site plan shows 25 off-street parking stalls, one of which is designated as accessible, as well as a bike rack.
The outdoor area proposed for the storage of equipment and other business-related items is shown to be paved primarily with bituminous material, with a concrete apron surrounding the building. This area will be fully enclosed by a 6-foot-tall chain-link fence with privacy slats and two 30-foot-wide double slide gates facing east on either side of the building. The proposed fence is stated to meet the minimum 90% opacity screening requirement for outside storage areas as required by the City Code.

A trash enclosure screened by 8-foot-tall prefinished metal paneling, similar in appearance to the building, is shown along the rear side of the building. Swinging gates of the enclosure are to be constructed of 8-foot-tall chain-link fencing with privacy slats, matching the proposed fencing on-site. The trash enclosure will conform to Mankato City Code requirements.

A fueling station is shown within the unenclosed storage area, consisting of two above-ground storage tanks: one 500-gallon tank for gasoline and one 1,000-gallon tank for diesel fuel. The tanks, manufactured by "Midwest Industrial Tanks," are constructed of double-walled steel and elevated from the ground. Due to their volume, contents, and location, the tanks must conform with Sec. 10-1503 of the Mankato City Code, as well as MPCA standards for above-ground storage tanks. The tanks must also be reviewed and approved by the City’s Building Official, Fire Marshal, and Zoning Administrator to be considered permitted in the PI, Planned Industrial Zoning District. Once approved, the dispensing of flammable and combustible liquids is allowed as follows: one above-ground tank up to 560 gallons for Class I liquids (gasoline) and up to two tanks of not more than 1,000 gallons each for Class II or Class III liquids (diesel fuel).

The applicant will be required to notify the MPCA, using the appropriate notification form, of the installation of these tanks. The applicant has agreed to notify the MPCA within the required timeframe. The tanks will also be enclosed by bollards to protect them from vehicles. While fueling of vehicles on-site has not been specified, if it is to occur, MPCA substance transfer area requirements may need to be met.
Bollard-mounted charging receptacles are shown along a portion of the northern boundary of the unenclosed storage area.
Exterior elevations have been provided showing the proposed 10,000 sq. ft. building.

The front façade (eastern elevation) consists of two-toned prefinished metal panels, prefinished metal gutters/downspouts, a fabric canopy above the front entry, double entry doors, and two windows. The southern side elevation shows five 14'x14' overhead doors with bollards, wall pack lighting, two entry doors, and three windows. The rear façade (western elevation) shows an uninterrupted prefinished metal panel finish with a wall pack light. The northern elevation mirrors the southern elevation, with five overhead doors, bollards, wall pack lighting, three entry doors, and one window.

Exterior finishes will consist of prefinished metal paneling from Butler-Cote, in “Cool Majestic Blue” and “Cool Igloo White.” The PI District permits exterior wall finishes of factory-fabricated and finished metal-framed panel construction, glass, prefinished metal (excluding unpainted galvanized iron), or plastic.

The site plan includes the planting of Black Hills Spruce and Spring Snow Crab apple trees in an alternating pattern every 25 feet around the boundary of the front yard parking area and southern side yard outdoor storage area. On-site landscaping shall conform to Chapter 10, Article X, Division 8 of the Mankato City Code. The site plan also identifies a grassy area between the Lundin Boulevard driveway and Volk Avenue, which is designated to remain as green space.

For storm water management, a limestone rip-rap swale is proposed along the northern and northwestern property boundaries, partially landscaped with ornamental trees, grasses, and shrubbery. Additionally, a storm water retention area is proposed on the northern portion of the property, west of the Lundin Boulevard driveway. The applicant has indicated that the swale design meets the City Code; however, an engineered drainage plan demonstrating compliance will be required.

The site plan includes curbing along the full boundary of the proposed parking, storage, and driving areas. The Mankato City Code requires developments in planned industrial zones to include a 6-inch-high insurmountable curb around the perimeter of parking and driveway areas, with breaks permitted only for drainage.

The proposed lighting plan includes full cutoff wall packs installed at regular intervals along building elevations, as well as pole-mounted lights with house-side shields along the perimeter of the unenclosed storage area and near the fuel station. A photometric plan demonstrating compliance with the City Code has been submitted.

Utilities to service the property are located along the east side of the property, parallel with Volk Avenue, and will be extended to the new building and parking lot. Existing water and sanitary utilities within the 25-foot easement/alleyway are to be abandoned back to the main at Volk Avenue prior to development. New water and sanitary sewer utility connections will occur from Volk Avenue to the northeast extent of the proposed building. The applicant will be subject to utility connection fees. A new transformer is also proposed east of the parking area, screened with landscaping.

The site plan shows building-mounted signage on the front façade and a monument sign along Lundin Boulevard. All signage must be reviewed and permitted prior to installation.

The floor plan includes a showroom at the entrance, a conference room, men’s and women’s restroom/locker rooms, a break room, two offices, a mechanical room, and a large shop area with drinking fountains, an eyewash station, an air compressor, oil tanks (volume unconfirmed), and access through eight overhead doors. A wash bay with a trench drain and pressure washer is also included at the western extent of the building.

The applicant describes United Rentals as “an equipment rental provider acting as a single-source solution for its customers by providing rental services and temporary machinery to the construction and industrial industries.” The facility will be used for sales, rentals, storage (indoor and outdoor), warehousing, maintenance, and repair of construction equipment, tools, and contractor supplies. The Mankato branch currently employs 13 local residents, with the potential for additional employment growth. Outdoor storage will be used for equipment such as scissor and boom lifts, forklifts, telehandlers, mini excavators, skid steers, aerial platforms, and lighting equipment.
Hours of operation will be from 7:30 a.m. to 4:00 p.m., Monday through Friday, with a staff of six employees per shift.

Unsealed Wells

Blue Earth County submitted a letter on August 12, 2025, stating: “Enclosed is some information related to the strong possibility that the property has some unsealed wells which need to be found and properly sealed. Please include a condition that requires a well search for these two old building sites.” Supporting documentation included maps and images showing former residential uses and sealed wells in the vicinity. Based on these conditions, the applicant must investigate the site for unsealed wells and potential soil concerns, including remaining foundations or improper fill. If unsealed wells are found, they must be properly recorded and sealed in coordination with Blue Earth County.
The Minnesota Department of Transportation also reviewed the proposal and provided comments. Applicable MnDOT comments have been incorporated as conditions of approval.

Vacation

The applicant is also seeking the vacation of a 25-foot-wide utility easement located beneath the proposed building. This easement overlaps with the existing driveway from Volk Avenue.

The proposed vacation would remove 5,697 sq. ft. of easement while preserving the required 10-foot utility easement along the eastern property boundary. Bolton & Menk, on behalf of the applicant, prepared a detailed exhibit and legal description of the proposed vacation area.

Xcel Energy has overhead utilities within the easement. The applicant must work with Xcel to relocate or remove these utilities. The applicant has stated that the overhead power lines will be removed in coordination with Xcel Energy during the relocation of electrical service for the new building.

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

1. The proposed unenclosed storage of material, products and equipment is considered a Conditional Use in the PI, Planned Industrial Zoning District.
2. The applicant is proposing to extend municipal utilities from existing services located at Volk Ave.
3. The proposed outdoor storage, when implemented with the recommendations and in conformance with Mankato City Code, is in keeping with the comprehensive planning policies of the City. The underlying land use plan identifies this parcel as "Light Industrial".
4. The proposal does not interfere with or diminish the use of property in the immediate vicinity.  
5. The proposal does not cause undue traffic congestion. Access is proposed to be created along Lundin Blvd and Volk Ave.
6. To the extent known, the development conforms with all other applicable regulations of the district, and other applicable ordinances.
7. There are no known historical or architectural resources on the site. 
8. There are no known significant natural or environmental features on the property.
9. It will not cause a negative cumulative effect and effect on the City as a whole. 
10. The proposal will not jeopardize the public's health, safety, or general welfare. 

Staff respectfully submits the following findings of fact for the requested Easement Vacation:

1. The applicant has petitioned to vacate the subject portion of the 25' utility easement.
2. The applicant has provided notice to the utility companies with a copy of the vacation request and has provided responses from the utility companies. Xcel Energy identified an overhead power line utility located within the easement and has asked that the applicant coordinate with them to remove the existing lines and provide alternative access. Based on this response, the easement would no longer be needed for utility purposes once City and Excel Energy utilities have been abandoned.
3. Public sewer and water utilities are present within the proposed to be vacated easement. The applicant has proposed to abandon/vacate these utilities back to Volk Ave.
4. This proposed 5,697 Sq. Ft. easement vacation preserves the 10' dedicated utility easement along the eastern property boundary, as required.
5. The proposed vacation is necessary for the development of the subject parcel. 

Staff recommends approval of the Conditional Use Permit to allow unenclosed storage of materials, products and equipment for an industrial and construction equipment business in the PI, Planned Industrial Zoning District with the following conditions:

1. Outdoor storage is limited to operable equipment only. Inoperable or unlicensed equipment or construction materials will not be permitted. Wrecked, dismantled, partially dismantled, inoperative, or abandoned vehicles or machinery shall be prohibited.
2. Signage for the development shall conform to Mankato City Code standards and a sign permit shall be obtained for any proposed signage prior to fabrication and installation. 
3. The applicant shall coordinate with Blue Earth County to combine the two subject parcels.
4. The applicant shall provide proper notification to MPCA regarding the installation of the above-ground storage tanks on site. If fueling of vehicles occurs on site, MPCA substance transfer area requirements may need to be met.
5. The applicant shall verify if an industrial storm water permit is needed based on the proposed tanks. If one is needed, the applicant shall obtain one prior to issuance of a certificate of occupancy.
6. The applicant shall be aware that a separate fire permit is needed for the proposed above-ground tanks.
7. The applicant shall be required to investigate for unsealed wells and soil concerns. If unsealed wells are found to be located on site, the applicant must work with Blue Earth County to properly record and seal the wells prior to issuance of a building permit. The applicant must provide documentation stating that all wells on site have been property investigated and sealed, prior to issuance of a building permit.
8. The applicant shall provide screening of 90% opacity or greater for the proposed exterior storage in accordance with Mankato City Code.
9. The proposed project will be subject to water and sewer connection fees based on the City of Mankato assessment policy and fee schedule.
10. The applicant shall provide a stormwater report prior to issuance of a building permit.
11. The applicant shall provide a traffic memo detailing the trips generated by the development. 
12. The applicant shall provide a detailed grading plan prior to issuance of a building permit.
13. The applicant shall provide a hydrant coverage map prior to issuance of a building permit.
14. A snow storage plan shall be submitted and approved. Snow storage shall be in conformance with an approved plan.
15. On-site lighting shall conform to the lighting standards in the Mankato City Code, including but not limited to full-cut, fully shielded fixtures. Conformance shall include, but not limited to, all signage, building, and parking lot lighting.
16. Landscaping shall be installed in conformance with the Mankato City Code and in accordance with an approved landscaping plan prior to issuance of a certificate of occupancy.
17. The proposed project shall conform with the Minnesota Department of Transportation to address the concerns related to the project.  Evidence of the resolution shall be provided with the application for a building permit.

Staff recommends approval of the vacation of the 25-foot-wide utility easement running east-west in Westman Industrial Park No. 2, with the following conditions:

1. The applicant shall work with Xcel Energy to remove/relocate the overhead utilities present within the proposed to be vacated utility easement. The applicant/property owner is responsible for any and all costs of re-routing the existing infrastructure to a location that is acceptable to the utility company.
2. The existing public utility services located within the easement shall be abandoned/vacated back to the main at Volk Avenue prior to issuance of a building permit.