CY 47-25

Request of ISG, with permission of the property owner, for a conditional use permit to allow unenclosed storage of materials, products and equipment in the PI, Planned Industrial, zoning district, and for a conditional use permit to allow for exterior fluid/fuel storage tanks. The subject properties are described as all of Lots 1 thru 3 and all of Lots 6, Lundin Industrial Park. (304 Lundin Blvd; PID R010906126035).

The anticipated date of City Council action is October 14, 2025. 
 

The applicant is ISG, with permission of the property owner.

The applicant is requesting a conditional use permit to allow unenclosed storage of materials, products and equipment in the PI, Planned Industrial, zoning district, and for a conditional use permit to allow for exterior fluid/fuel storage tanks.

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

The property contains a building that has been used for industrial purposes.

The property is zoned PI, Planned Industrial.

There are no known environmentally sensitive areas on site.

Public utilities are connected to the existing building.  No modifications are proposed with this development.

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

Mankato City Code Chapter 10. Article X. Division 2. Section 10-1503. Provides standards for Aboveground storage and dispensing of flammable and combustible liquids. Linked Here: https://library.municode.com/mn/mankato/codes/code_of_ordinances?nodeId=PTIICOOR_CH10LAUSDE_ARTXSTGEAP_DIV2SPPRAPSPPECOUS_S10-1503ABSTDIFLCOLI

Mankato City Code Chapter 10. Article X. Division 2. Section 10-1497. Provides standards for Outside storage of materials in commercial, and industrial districts. Linked Here: https://library.municode.com/mn/mankato/codes/code_of_ordinances?nodeId=PTIICOOR_CH10LAUSDE_ARTXSTGEAP_DIV2SPPRAPSPPECOUS_S10-1497OUSTMACOINDI

The Site Plan and Traffic Committee reviewed the request at their September 9th, 2025 meeting and the following comments were provided. The applicant subsequently replied, as shown in the italics:

1. The applicant shall provide a storm water management plan in accordance with City standards and MS4 permit for the new and fully reconstruct impervious area. "ISG Response: ISG is coordinating with the Interim City Engineer to address this comment."
2. The applicant shall provide plans detailing the size, location, status, contents, usage and any associated site improvements for all existing or proposed aboveground tanks on site. "ISG Response: Please see attached fuel tank exhibit which identifies a new 1,000-gallon diesel / HVO tank., and existing 200-gallon diesel tank to be relocated, and an existing 1,000-lb LP tank to remain".
3. The applicant shall provide tank detail sheets for all existing or proposed aboveground tanks on site. "ISG Response: Detail sheets can be provided upon completion of final design."
4. The applicant shall be aware that dispensing of flammable/combustible liquids stored within exterior above-ground storage tanks is limited to a maximum of three tanks on site. "ISG Response: Thank you for the information. The design has been modified to now include only a total of three above-ground tanks."
5. The applicant shall work with the MPCA to obtain any necessary permits or permissions associated with instillation or usage of above-ground tanks on site. "ISG Response: The MPCA will be consulted, and all required permits will be obtained."
6. The applicant shall provide proof that they have obtained, or proof that they do not need, an industrial stormwater permit. "ISG Response: Rolls-Royce currently holds an MPCA Industrial Stormwater Permit (MNR05398F)." 
7. The applicant should be aware that a separate fire permit is needed for the proposed above-ground tanks. "ISG Response: Understood. Thank you for the information."
8. The applicant should be aware that all signage must be reviewed and permitted prior to installation. "ISG Response: Understood. Thank you for the information."
9. If traffic associated with the use of the property causes undue traffic concerns on Lundin Blvd., the applicant shall be required to complete a traffic study and make the recommended modifications needed to mitigate these conditions. "ISG Response: Understood. The owner has been advised." 
10. The applicant should be aware that outdoor storage is limited to operable equipment only. Inoperable or unlicensed equipment will not be permitted. Wrecked, dismantled, partially dismantled, inoperative, or abandoned vehicles or machinery shall be prohibited. "ISG Response: Understood. The owner has been advised." 
11. The applicant shall provide screening of 90% opacity or greater for the proposed exterior storage in accordance with Mankato City Code. "ISG Response: Please refer to Civil plans and fencing details."
12. A snow storage plan shall be submitted and approved. Snow storage shall be in conformance with an approved plan. "ISG Response: Snow will be removed from site by a snow removal contractor."
13. 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. "ISG Response: Please refer to the photometric plans previously submitted."
14. 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. "ISG Response: Please refer to the plans previously submitted."
15. The applicant shall provide updated plans that reflect modifications from the originally submitted application documents. "ISG Response: Please see the attached updated materials." 
16. If not already complete, the applicant shall log into the online portal and make the necessary notification fee payments. "ISG Response: All fees assessed via the portal have been paid. Should any additional fees come due, please advise and payment will be promptly remitted."

The applicant 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 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 was 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. 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 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 at the west side of Lundin Blvd."

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 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".
3. The proposal does not interfere with or diminish the use of property in the immediate vicinity.  
4. The proposal does not cause undue traffic congestion. The number of site accesses along Lundin Blvd will not increase.
5. To the extent known, the development conforms with all other applicable regulations of the district, and other applicable ordinances.
6. There are no known historical or architectural resources on the site. 
7. There are no known significant natural or environmental features on the property.
8. It will not cause a negative cumulative effect and effect on the City as a whole. 
9. The proposal will not jeopardize the public's health, safety, or general welfare. 
10. The applicant has identified the three following aboveground storage tanks that will be constructed or remain on-site: 1) a new 1,000-gallon diesel / HVO tank, 2) an existing 200-gallon diesel tank, relocated on site, and 3) an existing 1,000-lb LP tank to remain as is.

Staff recommends approval of the Conditional Use Permit to allow unenclosed storage in the PI, Planned Industrial, zoning district and a conditional use permit to allow for exterior fluid/fuel storage tanks with the following conditions:

1. The applicant shall provide a complete set of civil construction plans, including a SWPPP, and a stormwater management plan that meet the City of Mankato standards and MS4 permit. Approval by the City Engineer will be required prior to issuance of a building permit.
2. 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.
3. The outdoor storage of any refuse or waste material must conform to section 11-32 and section 10-1743, including full enclosure of any refuse containers. 
4. 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. 
5. 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 
6. The applicant shall receive fire permits for the proposed above-ground storage tanks prior to issuance of a certificate of occupancy.
7. The applicant shall provide tank detail sheets for all existing or proposed aboveground tanks on site prior to issuance of a building permit.
8. Dispensing of flammable/combustible liquids stored within exterior above-ground storage tanks is limited to a maximum of three tanks on site.
9. If traffic associated with the use of the property causes undue traffic concerns on Lundin Blvd., the applicant shall be required to complete a traffic study and make the recommended modifications needed to mitigate these conditions.
10. The applicant shall provide screening of 90% opacity or greater for the proposed exterior storage in accordance with Mankato City Code. Screening shall be installed prior to issuance of a certificate of occupancy.
11. 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. Conforming lighting shall be installed prior to issuance of a certificate of occupancy.
12. 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.
13. Barbed wire, if installed, must be installed above a height of 6 1/2 feet. A fence permit must be obtained prior to modification to or instillation of fencing on site.
14. Noise levels shall conform to Minnesota Administrative Rules Chapter 7030, Noise Pollution Control, and all other applicable noise regulations.