Resolution approving a Conditional Use Permit to allow unenclosed storage of materials, products, equipment and exterior fluid/fuel storage tanks in the PI, Planned Industrial District (304 Lundin Blvd); by request of ISG.

At the September 24, 2025, meeting, the Planning Commission recommended approval of the conditional use permit.

Rolls Royce is requesting a conditional use permit to allow unenclosed storage in the Planned Industrial (PI) Zoning District, as well as a conditional use permit for the installation of exterior fluid and fuel storage tanks on the property located at 304 Lundin Boulevard. The proposed use of the property includes the unenclosed storage of materials, products, equipment, and exterior fuel storage tanks.

The subject properties are described as all of Lots 1 through 3 and all of Lots 6, Lundin Industrial Park (304 Lundin Blvd; PID R010906126035).

The site was previously utilized as a multi-tenant industrial facility. With one tenant relocating, the applicant intends to occupy the entire building. The unenclosed storage area will be located along the western portion of the site. Rolls-Royce Solutions America, Inc. plans to use the building for the assembly of low-power range (LPR) engine-generator sets, marketed under the “mtu, A Rolls-Royce Solution” brand.

Under the Mankato City Code, unenclosed storage of materials, products, and equipment is permitted in the PI District with the issuance of a conditional use permit, provided that the proposal complies with the standards established in Chapter 10, Article X, Division 2.

The submitted site plan depicts the modification of an existing multi-tenant industrial building and associated outdoor storage area on a parcel exceeding 300,000 square feet, located north of Lundin Boulevard. The property has five points of access along Lundin Boulevard: four are existing and will be retained, and one new access will be constructed near the southwest corner of the site. The creation of this new access will coincide with the closure of a nearby existing access, thereby maintaining the total number of access points along Lundin Boulevard.

Parking on the site has been reconfigured to improve circulation and access. The majority of off-street parking will be provided in a large lot north of the building, accommodating most of the development’s 133 stalls. Three stalls will be located south of the building, including one accessible stall. City Code Section 10-1640 requires four off-street parking spaces, plus one additional space per employee on the largest shift, or one space per 300 square feet of floor area, whichever is greater. With 60 employees expected per major shift, a minimum of 64 parking spaces is required. The site plan provides 133 stalls, including 128 standard stalls, five accessible stalls, and five motorcycle stalls, thereby exceeding the minimum requirement.

Because the development provides more than 40 automobile spaces, bicycle parking is also required at a rate of five percent of the total automobile stalls. The applicant has proposed the installation of a seven-stall, wave-style bicycle rack north of the building to meet this requirement.

The designated outdoor storage area will undergo improvements to support the proposed use. The existing bituminous surface will be removed and replaced with heavy-duty concrete. The area will be enclosed by a six-foot chain-link fence with privacy slats and a barbed-wire apron. Consistent with the City Code, the barbed wire will be installed at a height no lower than six and one-half feet, and the enclosure will provide the required 90 percent opacity screening.

Two trash compactors will be installed on the southeast side of the building, screened in compliance with code requirements. Refuse, both pre- and post-compaction, will be stored either within the building or within an enclosure meeting City standards. Additionally, a small outdoor patio with seating will be located at the southwest corner of the building, adjacent to the employee break room.

Three above-ground storage tanks are proposed for the site. An existing 1,000-pound liquid propane tank will remain in place. A 200-gallon diesel fuel tank will be relocated to the southwest corner of the site near the new access drive, and a new 1,000-gallon split diesel/HVO tank with pump will be installed north of the building. The applicant has indicated that all tanks will be double-walled, self-contained units, thereby meeting Minnesota Pollution Control Agency (MPCA) and City requirements without the need for additional spill-containment features. Cut sheets for the tanks will be required prior to issuance of a building permit, and notification of installation must be submitted to the MPCA. The applicant has also acknowledged that fire permits and any additional required permits will be obtained. If on-site fueling of vehicles occurs, the transfer area must comply with MPCA standards.

No changes to the exterior elevations of the building are proposed. Landscaping improvements will include the installation of hydrangeas along the south side of the building. Landscaping will conform to the requirements of Chapter 10, Article X, Division 8 of the City Code.

The proposed lighting plan includes full cut-off LED wall packs at regular intervals along building elevations, along with pole-mounted fixtures in the storage, parking, and loading areas. House-side shields will be installed as necessary. A photometric plan has been submitted demonstrating compliance with the City Code.

The interior floor plan identifies designated areas for assembly, testing bays, fluid storage, office space, and loading operations. Additional spaces within the building include storage areas, restrooms, employee break rooms, and office space for final assembly operations.

The applicant provided a narrative describing the proposed site modifications: "Redeveloping a 91,300 sq ft. existing building to accommodate assembly of the LPR Gensets. Interior modifications will consist of concrete floor slab replacement, additional bridge cranes, break room and office/command center renovations and loading dock upgrades". Operations on the site were described as: "Employees will enter the site off Lundin Blvd along the east side of the site and park in the northern parking lot. Incoming small and large parts for assembly will enter through loading docks and at grade overhead doors on the southeastern side of the site. The finished product will exit the west side of the building and be stored in the exterior fenced-in paved area. Flat bed semis will enter the western portion of the site, off Lundin Blvd, into a designated area for drivers to park and check into the facility. From there, they will enter the fenced storage area through sliding gates to load finished products and exit the site through another set of sliding gates on the west side of Lundin Blvd."