CY04-26

Request of ISG, on behalf of the property owner Reichel Properties, LLC, for a conditional use permit to allow exterior fuel storage tanks in the M-1, Light Industrial, zoning district. The subject property is described as Lot 1, Block 1, Eastwood Energy Center No. 4, Mankato, Blue Earth County (1711 Energy Drive, BE County PID R010903400021).

The anticipated date of City Council action will be March 9, 2026. 

The applicant is ISG on behalf of Rolls-Royce Solutions American, Inc. 

The applicant is requesting an amendment to a conditional use permit that was previously granted in 2019, to allow for additional exterior fuel storage tanks. 

The property is located at 1711 Energy Dr. 

The property currently operates as a testing facility for Rolls Royce. 

The property is zoned M-1, Light Industrial District. 

The Environmentally Sensitive Areas Map indicates that there is a drainage area on the north side of the property. 

The property is currently served by public utilities. 

The City Code pertaining to M-1, Light Industrial District, may be viewed at the following link:

https://library.municode.com/mn/mankato/codes/code_of_ordinances?nodeId=PTIICOOR_CH10LAUSDE_ARTVIIINDI_DIV3LIINDI

The City Code pertaining to above-ground storage tanks can be viewed at the following link:

https://library.municode.com/mn/mankato/codes/code_of_ordinances?nodeId=PTIICOOR_CH10LAUSDE_ARTXSTGEAP_DIV2SPPRAPSPPECOUS_S10-1503ABSTDIFLCOLI

The Site Plan and Traffic Advisory Committee met on February 10, 2026, and submitted the following comments:

1. The applicant shall verify the need for MPCA tank permits for any additional tanks.
2. The applicant shall provide the quantity, location, size, and other details on all existing tanks at the site. 
3. The applicant shall comply with Chapter 57 of the State Fire Code, including the separation distance requirements in Section 5704.4.2. The Applicant shall also be aware that the smaller tank is a propane tank and is subject to separation distance requirements that differ from those of the other proposed tanks.
4. The applicant shall submit to the City of Mankato the HydroCAD hydraulic modeling “model” used to support the drainage report.
5. The new expanded bioswale (replacement for the existing loss with the parking lot expansion) shall be fully contained within permanent drainage and utility easement by the property owner.
6. The proposed new north driveway width shall match the existing south driveway width.  The truck turning movement shows a circular movement around the site and the assumption is that the south driveway is of sufficient width to serve the proposed design vehicle.
7. Applicant shall provide typical pavement sections.
8. The applicant shall be aware that boulevard trees need to be replaced at a 2:1 ratio; that would equate to planting 4 new boulevard trees in the right of way adjacent to the site.
9. The applicant shall be aware that the driveway apron off of Energy Drive shall be 8” concrete over 6” of aggregate base and that section shall be noted in the plans.
10. The applicant shall be aware that driveways and sidewalks in the right of way shall be constructed in accordance with Mn/DOT Standard Plan 5-297.254; this shall be noted in the plan.
11. The applicant shall be aware of the existing 36” Storm Drain that empties into the south end of the drainage swale; the applicant shall be aware that a plan to extend under fill area is required.  As-built attached for reference.
12. The applicant shall be aware that a city right of way permit is required for work in the right of way of Energy Drive.
13. The applicant shall pay notification fees and any outstanding fees on the online portal, if not already complete. 

The applicant 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. 

Staff submits the following findings for the amendment to the conditional use permit: 

1. The request is considered a conditional use within the M-1, Light Industrial District. 
2. The proposed improvements, including the implementation of the recommended conditions, conform to the standards of Mankato City Code Chapter 10.

Staff recommends the approval of the amendment to the conditional use permit with the following conditions: 

1. Applicant shall provide screening for the proposed exterior storage in accordance with the Mankato City Code.
2. The additional equipment must be in conformance with the MPCA noise standards. 
3. The design of the fuel storage area shall conform to the MPCA storage tanks requirements.
4. Any added exterior lighting must be in conformance with the Mankato City Code, including full cut-off, fully shielded style, and a photometric will be required prior to lighting installation.
5. The applicant shall submit an emergency response and action plan to the Department of Public Safety for review and approval. The plan shall address Public Safety access to the area.
6.  The applicant shall submit an application for a land disturbance permit and building permit prior to construction.
7. The applicant shall submit an updated drainage report. 
8. The applicant shall submit a SWPPP at the time of building permit submission.