Ordinance rezoning property from Agriculture Transition to M-1, Light Industrial; Resolutions approving the annexation; and the Final Plat (R430903200005); by request of AJK Mankato Holdings LLC.

At the July 23, 2025, meeting, the Planning Commission recommended the adoption of the ordinance rezoning property and the resolutions for a conditional use permit, and annexation.

AJK Mankato Holdings, LLC has submitted multiple requests related to the proposed development of "The Station" subdivision. The applicant seeks approval of the final plat, rezoning of the subject property from Agriculture/Transition to M-1, Light Industrial, and, a Conditional Use Permit to permit display and retail sales in a warehouse space, and annexation of the subject parcel into the City of Mankato.

The development proposal depicts areas for future self-storage buildings (Phase 2), a 36,400 square-foot warehouse with office and showroom space for Rickway Carpet, and an 1,800 square-foot building identified as trash storage. The City Council approved the preliminary plat for this site on July 8, 2024.

Final Plat
The final plat for “The Station” encompasses 13.387 acres, comprising one block and two lots. Lot 1, Block 1 contains 3.312 acres on the northern portion of the site, and Lot 2, Block 1 contains 10.075 acres on the southern portion. The subdivision dedicates two 30-foot drainage and utility easements along the western and southern boundaries to accommodate an existing drainage ditch, as well as 10-foot easements along the block boundaries and between the two lots.
Access will be provided from 227th Street via a private drive, and a future Planned Unit Development will address the private roadway network serving the development. The northern property line will continue to serve as the front yard where it abuts Blue Earth County right-of-way.

Utility service will be provided through a water connection at 227th Street. Stormwater will be managed through three retention ponds on Lot 1 and a larger pond on Lot 2, with discharge to the west and south drainage ditch. Due to capacity and backflow concerns, connection to the existing sanitary sewer main at 227th Street is not recommended at this time. The applicant has agreed to be a petitioner for a future sewer extension, and until that time, private on-site sanitary services will be required.

The Blue Earth County Technical Evaluation Panel identified a wetland on the southern extent of the property. No direct impacts are proposed. However, the applicant must provide documentation that the wetland will remain viable post-construction or submit a replacement plan if impacts occur. Additional analysis is required to confirm a no-loss condition, and measures such as an impervious liner in the southern basin may be necessary to prevent drawdown. Wetland signage must be installed consistent with City standards.

Based on the stormwater report, stormwater discharge is proposed as non-infiltrating due to soil limitations. The southern basin will retain water to meet permanent pool requirements and discharge west, while the two northern basins will be connected by an equalizer pipe and discharge east.

Parkland dedication was addressed at the preliminary plat stage, with a payment-in-lieu totaling $40,161 based on the assessed value of industrial land.

Rezoning
The applicant requests rezoning of the subject property from T-Transition (previously AG in Mankato Township) to M-1, Light Industrial. Rezoning would take effect following annexation. The request is consistent with the adopted Land Use Plan and the zoning of adjacent parcels to the south, and it is intended to accommodate the proposed future development of storage units, including the Rickway Carpet warehouse, office, and showroom.

The future development Phase 2, which will be the construction of storage units, will require a planned unit development to address joint ownership/utilization of the road network and private utilities and a conditional use permit for storage units. 

Conditional Use Permit
The applicant seeks approval for a Conditional Use Permit to allow a display area and retail sales in a warehouse space and a professional office in excess of 10,000 square feet. In the M-1 District, such uses require conditional approval. The proposed 36,400 square-foot Rickway Carpet facility includes a 10,208 square-foot showroom and office area, which exceeds the 10,000 square-foot threshold, as well as a 25,562 square-foot warehouse. An additional 1,800 square-foot trash storage building is proposed on Lot 1. Lot 2 is anticipated to develop as storage units.

Elevations for the Rickway Carpet facility show finishes of insulated metal wall panels, pre-finished roof panels, Verseta accent stone, aluminum storefront features, and overhead garage doors.

Rickway Carpet anticipates operating Monday through Friday from 9:00 a.m. to 5:30 p.m. with 23 employees.

Parking
Parking allocations include 18 parking stalls (7 spaces for the warehouse, 11 for the Rickway Carpet office). 

Signage
Signage will be limited based on frontage along the northern property line. The applicant must submit and maintain a development signage plan, including monument signs, tenant allocation, and total allowable signage in compliance with City Code.

Annexation
The subject property is located within Mankato Township but is contiguous to the City boundary and subject to the 2014 Orderly Annexation Agreement. The City’s 2022 Land Use Plan designates the property for light industrial use, which is consistent with the proposed development. Annexation of approximately 13.39 acres is necessary to support the scale and intensity of the proposed project.