Resolution approving a Conditional Use Permit to allow exterior fuel storage tanks in the M-1, Light Industrial District (1711 Energy Drive); by request of ISG.

At the February 25, 2026, meeting, the Planning Commission recommended approval of the conditional use permit. 

ISG, on behalf of the property owner, Reichel Properties, LLC, is requesting an amendment to a conditional use permit that was previously granted in 2019, to allow for additional exterior fuel storage tanks. 

The existing building located on the site is utilized to test generators, which is permitted use under the Mankato City Code. In order to power the generators, the applicant uses the fuel storage tanks. The fuel storage tanks meet the size threshold in the Mankato City Code that requires a conditional use permit. The additional equipment still meets the goals and intentions of the City of Mankato's Comprehensive Land Use Plan and the requirements of the M-1 zoning district. 

The proposed project includes the expansion of the western parking lot and the exterior generator testing area. Improvements include new concrete, installation of two generator enclosures, and installation of ancillary testing equipment such as electrical load banks and fuel tanks. The amendments to the property will not cause any undue traffic issues or impact the neighboring properties negatively. 

The additional tanks will include (2) 5,000ga diesel tanks, (1) 1,900ga liquid propane tank, (1) 300ga diesel day tank, and (2) 500ga diesel day tanks. The tanks will be self-contained and installed in compliance with the fire code, building code, and MPCA regulations. 
The testing areas will be fully enclosed with fencing and the parking lot will be appropriately screened. A noise study has been prepared to evaluate the noise levels for compliance.