CY35-26

Request of ISG, on behalf of the property owner, Rolls Royce Solutions America, Inc., for a conditional use permit to allow the installation of one, 2,000-gallon HVO/diesel above-ground tank in P-I, Planned Industrial, zoning district. The subject property is described as Lots 1-3 and all of Lots 6-8, Block 1, and the east 200’ of Lots 4 and 5, Lundin Industrial Park, and the southerly 62’ of Lots 3 and 4, Block 2, Summit Industrial Park (304 Lundin). 

The applicant is ISG, on behalf of the property owner, Rolls-Royce Solutions America, Inc.

The applicant is requesting review of an amendment to the existing Conditional Use Permit. Prior approval allowed installation of an above ground 1,000-gallon HVO/Diesel tank. The current request is to increase the size of the tank to 2,000-gallon HVO/Diesel. All other previously approved site improvements and conditions of the Conditional Use Permit will remain unchanged.
 

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 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 August 11, 2026, meeting and the following comments were provided. The applicant subsequently replied, as shown in the italics:

1. Applicants shall provide detailed plans/cut sheets for the proposed above-ground tanks. ISG Response: Please see attached
2. All previous recommendations and conditions of approval associated with the previously approved Conditional Use Permits shall remain in place and shall continue to apply. ISG Response: Acknowledged.
3.  Applicant shall be aware there is an abandoned well on the northern side of the adjacent property. There are no records to indicate that the well was sealed. ISG Response: Acknowledged.
4. Any proposed future modifications to the volume and quantity of the outdoor aboveground storage tanks shall be reviewed for compliance and approval as a new CUP or as an amendment to the existing Conditional Use Permit. ISG Response: Acknowledged.
5.  Applicants shall coordinate with all appropriate regulatory agencies, including the Minnesota Pollution Control Agency (MPCA) to ensure compliance with all applicable state standards and permit requirements associated with installation and utilization of a 2000-gallon aboveground HVO/Diesel tank. ISG Response: Acknowledged. Any necessary permits will be applied for by contractor. 
6. Applicant shall verify no containment is required based on tank size and usage. ISG Response: Confirmed.

The applicant, ISG, is requesting review of an amendment to the existing Conditional Use Permit. Prior approval allowed installation of an above-ground 1,000-gallon HVO/Diesel tank. The current request is to increase the size of the tank to 2,000-gallon HVO/Diesel. All other previously approved site improvements and conditions of the Conditional Use Permit will remain unchanged.

Rolls-Royce Solutions America, Inc. plans to use the building for the assembly of low-power range (LPR) engine-generator sets. 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 2,000-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. 

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 onsite fueling of vehicles occurs, the transfer area must comply with MPCA standards. 
 

Staff respectfully submits the following findings of fact for the Conditional Use Permit:

1. The applicant aims to amend the existing conditional use permit to allow for modifications to the sizing of above-ground storage tanks. All applicable elements of the original conditional use permit shall remain as is. 
2. The proposed amended above-ground tanks, when implemented with the recommendations and in conformance with the 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. To the extent known, the development conforms with all other applicable regulations of the district, and other applicable ordinances.
4. The applicant has identified the three following aboveground storage tanks that will be constructed or remain onsite: 1) a new 2,000-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 amended conditional use permit to allow for modifications to the purposed exterior fluid/fuel storage tanks with the following conditions:

1. All applicable conditions of approval associated with the original Conditional Use Permit shall remain active and in-place.
2. Any proposed future modifications to the volume and quantity of the outdoor aboveground storage tanks shall be reviewed for compliance and approval as a new CUP or as an amendment to the existing Conditional Use Permit.
3. Applicants shall coordinate with all appropriate regulatory agencies, including the Minnesota Pollution Control Agency (MPCA) to ensure compliance with all applicable state standards and permit requirements associated with installation and utilization of a 2000-gallon aboveground HVO/Diesel tank.