Item 3.7 Hempl Properties Resolution 2026-54 Approving an Interim Use Permit
Request for
City Council Action
DEPARTMENT INFORMATION
ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE:
Planning City Planner Licht July 27, 2026
PRESENTER(s) REVIEWED BY: ITEM #:
Consent Assistant City Administrator/HR Hille 3.7 – Hempel Interim Use Permit
STRATEGIC VISION
MEETS: THE CITY OF OTSEGO:
Is a strong organization that is committed to leading the community through innovative communication.
X Has proactively expanded infrastructure to responsibly provide core services.
Is committed to delivery of quality emergency service responsive to community needs and expectations in a
cost-effective manner.
X Is a social community with diverse housing, service options, and employment opportunities.
Is a distinctive, connected community known for its beauty and natural surroundings.
AGENDA ITEM DETAILS
RECOMMENDATION:
City staff recommends the City Council approve an Interim Use Permit.
ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED?
No Yes held by Planning Commission 20 July 2026
BACKGROUND/JUSTIFICATION:
Hippo Group LLC owns the property located at 9760 71st Street. The City Council at its meeting on 12 June 2026
approved a Conditional Use Permit for Northdale Construction, an underground utility contractor, to allow outdoor
storage upon the subject property. Northdale Construction has vacated the subject property, and Hempel Properties
is proposing to acquire the property with United Rentals, Inc. as the new tenant. United Rentals also requires outdoor
storage for its business operations.
Although approved Conditional Use Permits generally run with the property, amendment of an approved Conditional
Use Permit due to a change in circumstances requires a new application processed in accordance with Section 11-4-4
of the Zoning Ordinance. Outdoor storage upon the subject property is now allowed as an interim use. Therefore,
because of the change in occupancy related to the outdoor storage, approval of an Interim Use Permit has been
applied for to allow United Rentals’ proposed use.
A public hearing to consider the application was held by the Planning Commission at its meeting on 20 June 2026. Mr.
Peter Foose of Hempel Properties was present and agreed with the recommendations of City staff. There were no
public comments, and the public hearing was closed. The Planning Commission had no questions or concerns.
Following discussion, the Planning Commission voted 7-0 to recommend City Council approval of the application
subject to the conditions proposed by City staff.
SUPPORTING DOCUMENTS ATTACHED:
• Planning Report dated 14 July 2026
• Resolution 2026-54
POSSIBLE MOTION
PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES:
Motion to adopt Resolution 2026-54 approving an Interim Use Permit for PID 118-238-002010, subject to conditions,
as presented
BUDGET INFORMATION
FUNDING: BUDGETED:
N/A
N/A
3601 Thurston Avenue
Anoka, MN 55303
763.231.5840
TPC@PlanningCo.com
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PLANNING REPORT
TO: Otsego Planning Commission
FROM: D. Daniel Licht
REPORT DATE: 14 July 2026
60-DAY DATE:14 August 2026
RE: Otsego – PID 118-238-002010; Outdoor Storage Interim Use Permit
TPC FILE: 101.02
BACKGROUND
Hippo Group LLC owns the property located at 9760 71st Street. The City Council at its meeting on 12
June 2026 approved a Conditional Use Permit for Northdale Construction, a underground utility
contractor, to allow outdoor storage upon the subject property. Northdale Construction has vacated the
subject property, and Hempel Properties is proposing to acquire the property with United Rentals, Inc.
as the new tenant. United Rentals also requires outdoor storage for its business operations. Although
approved Conditional Use Permits generally run with the property, amendment of an approved
Conditional Use Permit due to a change in circumstances requires a new application processed in
accordance with Section 11-4-4 of the Zoning Ordinance. Outdoor storage upon the subject property is
now allowed as an interim use. Therefore, because of the change the change in occupancy related to the
the outdoor storage, approval of an Interim Use Permit has been applied for to allow United Rentals’
proposed use. A public hearing to consider the application has been noticed for the Planning
Commission meeting on 20 June 2026.
Exhibits:
§Site Location Map
§Application Narrative
§Site Plan
§Landscape Plan
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ANALYSIS
Comprehensive Plan. The subject site is guided by the 2023 Comprehensive Plan for industrial uses.
Zoning. The subject site is zoned I-2, General Industrial District.
Existing Conditions. The subject property is Lot 1, Block 2, Otsego I-94 West Industrial Park 4th Addition.
The property is 5.0 acres in area. A 2,683 square foot, single-story office building and a 6,400 square foot
warehouse/shop building were constructed for Northdale Construction in 2007. The approved
Conditional Use Permit allows outdoor storage of utility construction equipment upon a Class-5 surface.
Proposed Use. United Rentals proposes occupancy of the subject property to provide for rental of
specialized infrastructure excavation construction equipment.
The proposed use involves office, warehousing and distribution, wholesale businesses, maintenance and
repair of rental equipment, and outdoor storage. The proposed uses are all permitted uses, except
outdoor storage, which is allowed as an interim use within the I-2 District.
No changes to the site plan or existing buildings are proposed as part of the change in occupancy.
Surrounding Uses. The subject property abuts existing industrial uses to the north, east, and west, with
additional existing and planned industrial uses south of 71st Street. The proposed change in use of the
property in terms of outdoor storage presents no compatibility issues with surrounding properties.
Direction Land Use Plan Zoning Map Existing Use
North Industrial I-2 District Bury Companies
East Industrial I-2 District Wright County
Highway
South Industrial I-2 District AGC Condos
West Industrial I-2 District Bret Admixtures
Lot Requirements. Lots within the I-2 District are required to be a minimum of 2.0 acres in area and a
minimum of 200 feet in width. The subject property is 5.0 acres in area. The width of the lot measured
at the front setback line from 71st Street is 381 feet. The existing lot complies with the minimum lot
requirements of the I-2 District.
Setbacks. Section 11-86-7.C of the Zoning Ordinance establishes minimum setback requirements for the
I-2 District:
§ Front: 30 feet
§ Side: 20 feet
§ Rear: 25 feet
The buildings upon the property all comply with the applicable setback requirements. The outdoor
storage area also complies with the required setbacks from the side and rear lot lines.
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Building Coverage. Section 11-86-8 of the Zoning Ordinance limits building coverage for lots within the I-
2 District to 50 percent of the lot area. The two buildings on the subject property have a combined
footprint of 9,083 square feet. Based on the area of the lot being 5.0 acres, the building coverage is 4.2
percent of the lot area. The building coverage is within the limit established by the Zoning Ordinance.
Outdoor Storage. The existing outdoor storage area is surfaced with Class-5 gravel material
accommodating the prior use for storing utility construction related equipment and materials. The
excavation equipment to be kept within the outdoor storage area for United Rentals also has potential
to damage a concrete or asphalt surface, making continuation of the existing surface appropriate with
the requested Interim Use Permit. City staff recommends that the City Engineer inspect the existing
outdoor storage area surface to ensure that it has been sufficiently maintained to adequately control
dust and prevent erosion.
Landscaping. The Site and Building Plan approval included a two-foot high berm along the north and
east perimeter of the outdoor storage area and planting of 39 evergreen trees. There are existing
mature evergreen trees along the east and west property lines of the subject property that provide
screening of the outdoor storage area from view of 71st Street. It does not appear, however, that most
of the landscaping required with the initial Site and Building Plan Review and Conditional Use Permit
survived. City staff recommends that trees missing from the approved landscape plan be replaced, but
no additional landscaping is recommended to be required as a condition of approval for the Interim Use
Permit.
Exterior Lighting. No plans indicating proposed changes to exterior lighting upon the subject property
have been presented. Installation of any new exterior lighting or replacement of existing fixtures is
subject to compliance with Section 11-16-6 of the Zoning Ordinance. Installation or replacement of any
exterior lighting upon the subject property is subject to review and approval of the Zoning
Administrator.
Waste Storage. Section 11-18-4 of the Zoning Ordinance requires waste and recycling containers to be
stored within a building or screened from view of public streets and adjacent properties. There are two
waste containers on the drive aisle east of the office building that are not screened as required. The
proposed tenant will be required to store all waste and recycling containers within a building or
construct an enclosure meeting the requirements of Section 11-18-4.C of the Zoning Ordinance.
Screening for outdoor storage of waste and recycling containers is subject to review and approval of the
Zoning Administrator.
Fence. The applicant is proposing to install a six-foot chain link fence at the perimeter of the outdoor
storage area with the change in occupancy. Section 11-19-4.H of the Zoning Ordinance allows fences on
industrial properties to be up to eight feet in height. Security arms with barbed wire are also allowed at
the top of the fence a minimum of seven feet above grade. City staff recommends that the south line of
the fence between the side lot lines and buildings be solid to provide screening of the outdoor storage
area from view of 71st Street. A fence permit is required prior to construction of a fence upon the
property, subject to review and approval of the Zoning Administrator.
Signs. No plans for changes in signs upon the subject property have been submitted. All freestanding
and wall signs are subject to compliance with Chapter 37 of the Zoning Ordinance. A sign permit
approved by the Zoning Administrator is required prior to placement of any signs.
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Access. The subject property is accessed from 71st Street via two driveways. No changes to the existing
accesses to the subject property are proposed.
Off-Street Parking. The Site and Building Plan review identified a need for 25 off-street parking spaces
for the existing use of the property based on office, shop, and warehouse uses. The same requirements
of Section 11-21-8 of the Zoning Ordinance apply to the proposed use for calculating the number of off-
street parking spaces. The site was developed with initial construction and striping of 12 off-street
parking spaces based on the off-site nature of the business operation. There is area within the
developed portion of the subject property to accommodate additional off-street parking spaces. It is
recommended that an additional 13 parking spaces be striped onto the existing pavement to comply
with the Zoning Ordinance in consideration that more activity is likely to occur on-site for the new
tenant.
Grading. A grading and stormwater management plan was approved for the subject property at the
time of the initial site and building plan review. Other than verification that the existing Class-5 surface
has been adequately maintained, the change in occupancy does not cause any erosion control or
drainage issues. Any drainage or erosion control issues are to be subject review and approval by the City
Engineer.
Utilities. City sewer and water utilities are available and connected to the property. The proposed
change in occupancy does not affect utilities serving the subject property.
Criteria. Consideration of the interim use by the Planning Commission is to be based upon, but not
limited to, the criteria established by Section 11-5-2.F of the Zoning Ordinance:
1. The proposed action's consistency with the specific policies and provisions of the Otsego
Comprehensive Plan.
Comment: The subject property is guided for industrial uses. The proposed rental outdoor
storage use is an allowed use of the subject property that is characteristic of and incidental to
industrial areas. The proposed use is consistent with the policies of the 2023 Comprehensive
Plan.
2. The proposed use's compatibility with present and future land uses of the area.
Comment: The subject property is surrounded by existing industrial uses similar in character to
the existing and proposed use of the property. The proposed outdoor storage will be compatible
with existing and planned uses in the area.
3. The proposed use's conformity with all performance standards contained within the Zoning
Ordinance and other provisions of the City Code.
Comment: The proposed use will comply with all requirements of the Zoning Ordinance.
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4. Traffic generation of the proposed use in relation to capabilities of streets serving the property.
Comment: The subject site is accessed via 71st Street from 70th Street, which is a future Minor
Arterial roadway designated by the Transportation Plan. The existing streets serving the subject
property have adequate capacity to accommodate traffic generated by the proposed use.
5. The proposed use can be accommodated by existing public services and facilities and will not
overburden the City's service capacity.
Comment: The proposed use involving a change in occupancy of an existing developed industrial
lot will not affect City services.
RECOMMENDATION
City staff recommends approval of the requested Interim Use Permit to allow outdoor storage subject to
the conditions outlined below.
POSSIBLE MOTION
Motion to recommend City Council approval of an interim use permit allowing outdoor storage for 9760
71st Street (118-238-002010), subject to the following conditions:
1. The subject site shall be developed in accordance with the plans and information on file with the
City subject to stipulations of approval as outlined herein in accordance with Section 11-9-4 of
the Zoning Ordinance.
2. Outdoor storage areas shall be surfaced with Class-5 material sufficient to adequately control
dust and prevent erosion, subject to inspection and approval by the City Engineer.
3. Trees that are not in place, or that are dead, diseased, or not in good condition illustrated on the
landscape plan approved with the 2006 Site and Building Plan review shall be replaced, subject
to review and approval by the Zoning Administrator.
4. Installation of any new exterior lighting or replacement of existing fixtures shall comply with
Section 11-16-6 of the Zoning Ordinance, subject to review and approval by the Zoning
Administrator.
5. Exterior storage of waste and recycling containers shall comply with Section 11-18-4.C of the
Zoning Ordinance, subject to review and approval by the Zoning Administrator.
6. Construction of a fence at the perimeter of the outdoor storage area shall comply with Section
11-19-4.H of the Zoning Ordinance, with issuance of a fence permit, subject to review and
approval of the Zoning Administrator; the south line of the fence shall be solid to screen the
outdoor storage area from view of 71st Street.
7. All freestanding and wall signs shall comply with Chapter 37 of the Zoning Ordinance and
require issuance of a sign permit, subject to review and approval by the Zoning Administrator.
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8. There shall be a minimum of 25 off-street parking spaces striped onto the existing pavement
with dimensions required by Section 11-21-7 of the Zoning Ordinance, subject to review and
approval by the Zoning Administrator.
9. All grading, drainage, and erosion control issues shall be subject to review and approval by the
City Engineer.
c. Adam Flaherty, City Administrator/Finance Director
Audra Etzel, City Clerk
Ron Wagner, City Engineer
David Kendall, City Attorney
Property Location Map
9760 71st Street
525 ft
Overview
Legend
Highways
Interstate
State Highway
US Highway
Roads
City/Township Limits
c
t
Parcels
Torrens
Nature of Request:
Hempel Holdings LLC requests approval of an Interim Use Permit (IUP), or in the alternative
an amendment to the existing Conditional Use Permit approved by the Otsego City Council
on June 12, 2006 (the "2006 CUP"), for open and outdoor storage as an accessory use to a
principal warehousing, distribution, and office use, pursuant to Section 11-86-3(D) of the
Otsego Zoning Code (I-2 General Industrial District).
The IUP will authorize the outdoor storage of trench safety and excavation rental equipment,
including trench shields, shoring systems, road plates, tracked construction machinery,
confined space equipment, and related contractor supplies, in connection with operations
by United Rentals, Inc. (Trench Safety Division) as the proposed tenant.
The principal use of the property — warehousing, distribution, offices, and wholesale supply
of contractor equipment — is permitted by right in the I-2 District under Sections 11-86-2(P),
(I), (N), and (Q) respectively. The IUP, or amended CUP, is sought solely for the outdoor
storage component of the operation. The Applicant notes that outdoor storage on this parcel
was previously approved by the City Council via the 2006 CUP, which runs with the land. The
current application continues and formalizes that pre-existing approved use under new
tenancy.
Existing Use of Property:
The property currently operates as an established industrial site used for heavy equipment
storage, warehousing, and related operations. The site was originally approved by the Otsego
City Council on June 12, 2006 (Findings & Decision, Site & Building Plan & CUP, Kinghorn
Construction/Northdale Construction) and has been used continuously for industrial
outdoor storage purposes since construction in 2007. That approval included a Conditional
Use Permit for outside storage in the I-2 District. Existing improvements include:
- Building A: 2,683 SF single-story office building
- Building B: 6,400 SF warehouse with 28’ clear height, 5 drive-in doors
- Outdoor storage yard surfaced with Class 5 compacted aggregate
- Total site area: 5.00 acres; original site approval: City of Otsego, June 12, 2006
Nature of Proposed Use:
The proposed tenant is United Rentals, Inc., the world’s largest equipment rental company,
operating through its specialized Trench Safety division. United Rentals operates more than
92 Trench Safety locations across North America, providing customized excavation and
shoring solutions to commercial and municipal infrastructure contractors.
The Trench Safety division provides:
- Trench shielding and shoring equipment (industry’s largest fleet)
- Road plates, ground protection systems, and infrastructure testing equipment
- Confined space entry equipment
- Traffic control, flagging, signage, striping, and barricade services for highway
construction projects
- In-house Registered Professional Engineers for custom project planning
- Dedicated account managers supporting projects from start to finish
Activity Zoning Authorization Permit Required
Warehousing of rental fleet
and contractor supplies
11-86-2(P) — Warehousing None — Permitted by right
Regional distribution of
equipment to/from project
sites
11-86-2(I) — Distribution
Centers
None — Permitted by right
Offices: engineers, account
managers, administration
11-86-2(N) — Offices None — Permitted by right
Wholesale/supply of
contractor supplies and
equipment
11-86-2(Q) — Wholesale
Business
None — Permitted by right
Outdoor storage of rental
fleet (trench shields,
shoring, road plates,
tracked equipment)
11-86-3(D) —
Open/Outdoor Storage
IUP or Amended CUP —
This Application (2006 CUP
for outdoor storage
previously approved on this
parcel)
Equipment inspection,
maintenance, and
readiness checks (repairs
conducted indoors;
equipment washing
conducted outdoors on
knockdown pad)
Accessory to principal
warehousing use; repairs
within enclosed building;
outdoor equipment washing
on knockdown pad within
storage yard
None — Accessory Use
Reasons to Approve Request:
The I-2 General Industrial District is intended to provide areas suitable for general industrial
activities with adequate and convenient access to major streets, encouraging industrial
development in a compact and orderly manner consistent with the Comprehensive Plan.
This property and the proposed use satisfy that intent in every respect. Importantly, outdoor
storage on this specific parcel was already approved by the Otsego City Council on June 12,
2006 via a Conditional Use Permit (CUP) issued to Kinghorn Construction/Northdale
Construction for a construction business with outside storage. That approval establishes a
clear precedent and confirms that outdoor storage at this location is consistent with the I-2
District, the Comprehensive Plan, and the surrounding land uses. The proposed United
Rentals Trench Safety use is quieter, less intensive, and more professionally managed than
the construction business previously approved on this site.
The site is located in the Otsego I-94W Industrial Park, directly accessible from Interstate 94
via Highway 101 — one of the most strategically positioned industrial corridors in the
northwest metro. The surrounding land uses are exclusively industrial and compatible.
United Rentals’ Trench Safety division is a professional, light-industrial distribution and
warehousing operation that is entirely consistent with the purpose and character of the I-2
district.
Section 11-86-3(D) permits open and outdoor storage as a principal or accessory use in the I-2
District, subject to six conditions. Hempel confirms compliance with each condition as follows:
11-86-3(D)(1) Screening from neighboring
uses
The site has existing mature landscaping
that provides partial screening from
neighboring industrial uses. The site does
not currently include perimeter fencing.
Note: fencing of the outdoor storage area
was a required condition of the 2006 CUP
(Condition 8, Section 20-86-7.D). The
proposed Tenant (United Rentals) intends
to install perimeter fencing with gated
access at both existing site entrances,
thereby satisfying this longstanding
condition. The fencing, together with
existing landscaping, will provide screening
consistent with Chapter 19 of the Zoning
Code.
11-86-3(D)(2) Screened from public right-
of-way
The site has existing mature landscaping
along 71st Street NE that provides
screening from the public right-of-way.
Perimeter fencing with gated entrances
proposed by the Tenant will further
enhance screening upon installation. The
Applicant requests that specific fencing
and screening details be reviewed and
finalized through the site plan review
process in coordination with the Zoning
Administrator.
11-86-3(D)(3) Surface: blacktopped,
concrete, or approved alternative
The outdoor storage yard is surfaced with
Class 5 compacted aggregate. The 2006
CUP (Condition 9) required the outdoor
storage area to be surfaced with an
approved material subject to City Engineer
review and approval. City staff confirmed
during pre-application discussions that
Class 5 compacted aggregate satisfies this
requirement for this specific use. Full
justification for the aggregate surface is
provided below.
11-86-3(D)(4) Hooded lighting directed
away from ROW and residences
All existing site lighting will be confirmed
compliant with Chapter 16. Any new or
replacement lighting will be fully shielded
and directed downward, with no light
source visible from the public right-of-way
or neighboring properties.
11-86-3(D)(5) Storage does not consume
required parking or loading spaces
The outdoor storage yard, as depicted on
the submitted site plan, is physically
separate from the paved parking and
loading areas serving Building A and
Building B. The storage yard does not
encroach upon any required parking stalls
or loading positions.
11-86-3(D)(6) IUP terminates upon change
of occupancy
The Applicant acknowledges and accepts
this condition. The IUP is sought
specifically in connection with United
Rentals’ tenancy. A new or amended IUP
will be obtained upon any change of
occupancy as required by Section 11-5-4.
City staff confirmed during pre-application discussions that the existing Class 5 compacted
aggregate surface is an appropriate and acceptable yard surface for this use, specifically
because the materials and equipment to be stored on the site would damage asphalt or
concrete surfaces under normal operating conditions. This is not a cost-avoidance position
— it is an operational and engineering reality driven by the nature of United Rentals’
equipment inventory:
- Tracked construction machinery (excavators, track skid steers, crawler equipment):
rubber and steel tracks tear and gouge asphalt surfaces during loading, unloading,
and staging, particularly in warm weather when asphalt softens under concentrated
track loads.
- Trench shields and steel shoring panels: heavy steel plates and frames are dragged,
slid, and repositioned across the yard using forklifts and material handlers. This
activity causes significant surface scoring and deterioration on paved surfaces.
- Road plates: large-format steel road plates create extreme point loads when set
down by crane or forklift. The concentrated load from a stacked set of road plates far
exceeds the design capacity of standard asphalt paving and will cause cracking and
surface failure over time.
- Jersey barriers and precast concrete traffic control elements: stacking heavy
concrete barriers on asphalt creates load concentrations that crack and depress
pavement, as specifically acknowledged by City staff in pre-application
correspondence.
- Forklifts and heavy material handlers: repeated operation of loaded forklifts and
telehandlers over the same asphalt travel paths causes accelerated rutting and
deterioration, particularly during spring thaw and summer heat when asphalt is at its
weakest.
Class 5 compacted aggregate is the industry-standard surface for heavy equipment storage
and rental yards for precisely these reasons. It accommodates the point loads and abrasive
contact of heavy steel equipment without deteriorating, provides adequate drainage, and is
the surface used by United Rentals at comparable Trench Safety facilities across North
America. The City’s acknowledgment of this reality in pre-application discussions reflects a
practical and appropriate application of the zoning code’s surface requirement.
United Rentals’ Trench Safety division represents among the most compatible and low-
impact uses for an I-2 outdoor storage yard:
- No retail customers or public-facing foot traffic. All clients are commercial
contractors who schedule equipment deliveries and pickups in advance. Site visits
by customers are rare and by appointment only.
- No hazardous materials. Trench safety equipment does not involve fuels, chemicals,
solvents, or other regulated substances. All equipment repairs and maintenance are
conducted entirely within the warehouse building. Equipment washing is performed
outdoors on a designated knockdown pad using water; no engine work is performed
on-site.
- No significant noise generation. Operations consist of equipment loading and
unloading by forklift and flatbed truck during normal business hours. There are no
operations that generate noise beyond what is typical and expected in an I-2
industrial district.
- No odor or air quality impacts. The operation does not involve any process, chemical,
or combustion activity that would generate odors, dust, or emissions beyond
incidental diesel equipment exhaust during loading operations.
- All equipment maintained in operational condition. United Rentals maintains its
rental fleet in ready-to-deploy condition at all times. No inoperable, derelict, or
refuse-quality equipment will be stored on the site, consistent with Section 11-86-
6(E)(4).
- Investment-grade, nationally recognized tenant. United Rentals is NYSE-listed with
established corporate environmental, safety, and compliance programs. The
company operates under standardized facility management protocols at all
locations.
This property was purpose-built in 2007 for heavy industrial outdoor storage operations and
has been used continuously in that capacity ever since. The improvements — an oversized
warehouse with 16’x16’ drive-in doors and 28’ clear height, five loading positions, a 2,683 SF
professional office building, and an outdoor storage yard as depicted on the submitted site
plan — represent exactly the infrastructure United Rentals requires and exactly the type of
industrial development the I-2 district is intended to accommodate.
Site modifications are limited to Tenant occupancy improvements. The Tenant will install
perimeter fencing with gated access at both existing site entrances and a knockdown pad
within the outdoor storage yard for outdoor equipment washing using water. No new
buildings are proposed, and the outdoor storage area footprint will not be expanded beyond
that depicted on the submitted site plan. These improvements also fulfill the outstanding
conditions of the 2006 CUP: perimeter fencing satisfies Condition 8, and the Class 5
aggregate surface satisfies Condition 9 as confirmed by City staff in pre-application
correspondence.
The proposed use will not adversely impact neighboring properties or the surrounding area:
- The site is entirely surrounded by compatible I-2 General Industrial uses. There are no
residential properties adjacent to or in close proximity to the site.
- The proposed use is quieter, cleaner, and less traffic-intensive than many I-2
permitted uses. Construction equipment rental generates far less truck traffic than,
for example, a distribution center or manufacturing facility of comparable size.
- The site has existing mature landscaping that provides visual buffering from the
public right-of-way and neighboring properties. The Tenant’s planned perimeter
fencing will further enhance screening upon occupancy.
- The Tenant’s operations will improve the management, organization, and appearance
of the outdoor storage yard relative to its current condition, bringing professional
facility management standards to the site.
Previous Applications:
A Site & Building Plan and Conditional Use Permit (CUP) for outside storage in the I-2 General
Industrial District were approved by the Otsego City Council on June 12, 2006 (Findings &
Decision dated 06-07-06) for Kinghorn Construction/Northdale Construction on this parcel
(Lot 1, Block 2, Otsego I-94 Industrial Park 4th Addition). That approval authorized a 3,500 SF
office building, a 6,000 SF warehouse/shop building, and outside storage. The CUP runs with
the land. The current IUP application is a continuation of that pre-existing approved use
under new tenancy, with a less intensive and more professionally managed operator. The
Tenant’s planned fencing satisfies Condition 8 of the 2006 CUP, and the Class 5 aggregate
surface satisfies Condition 9 as confirmed by City staff in pre-application correspondence.
Exhibit A
Comparable United Rentals’ Trench Safety Locations
LAND56APENOTES: I. AllplantingsshallbetruetonameadsizeInaccordancewithAmericanwrsery5tontlrds. Nodamagedorscaredtreesorshrubswillbeaccepted. 2. PlantingSoilshallbeamixtureofIpartpeat, IpartsoilandIpartsand. 3. AllplantsshallbeguaranteedForoneyearFromthedateofacceptance. TheIarlscopecontractorshallreplaceanydeadordamagedplantsatnoadditionalcosttotheownerduringthewarrantyperiod. 4. AlltreesshallbestakedandwrappedasshownIndetails. 5. Alltreesinsodmeasshallhavea4' deepshreddedbarkmalchmolntenawebed, 5' Indiameter. 6. SodshallbeculturedKentuckyBluegrassFreeofweedsandciunps. Thelandscapecontractorshallwaterandrollthesodatthetimeofhstollotiontoassureasmoothsurface. Allsodonslopesgreaterthan3toIshallbestoked. Anysoddamagedduetosildingshallbereplacedbythelandscapecontractor. 1. AllsnubbedsandareasIndicatedasreceivingshreddedbarkmulchshallreceivea4' deeplayerofshreddedbarknichoverfilterFabric. Allgroundcoverareasshallreceivea2' layerofmulchwithnoFilterfabric. 8. Allareaswheresodandmulchtouch'sholihavevalleyviewpolyedger. 9. AllplantingislandsInparkingareasandgroundcoverbedsshallhaveaminimumofPdeepplantingsoliInstalled. Itwillbethelandscapecontractor'sresponslbllityofremoveanyexistingconstructiondebrisandexistingsoiltoprovidenewplantingsoilintheseareas. 10. Allproductsubstitutionscrestbeapprovedbyowner, generalcontractororIandscpearchitectpriortoInstallation. PLANT5GHEDULEBroadleoFDeciduousGuontltq5qmboIl5r1entlFlcNameCommonNamePlontinqSize4FraxinuspeIvanlcoIonceolot0GreenAsh21/2" -Gal2AcersaccharumSugarMaleICrobopple21/2"-6.0110aIMolus, runSnow' SpringSnow11/2" -GalConiferEvercireen2uantit4mbol5clentlFlcNameGttnammonNamePlan51-,e20Plcealauco 'Densota' BlackHillsSpruce6' 519IQIPinusstilvestris15cotchpine6' 54E3Shrub10vantitti154mboll7alentlPfc. NamecommonNamePlanttnSize12Ireox 'Goldmound' Goldmound5pirea5-6alDONOTGUTCENTRALLEADERPRUNEONLYDEADWOODPRIORTOPLANTING. P051TIONOF5TAKE5SHALLBEORIENTATEDWITHREGARDTOPREVAILINGWINDS. PLA( E'ROOTBALLONUNEXGAVATEDORTAMPEDSOIL. I'-O`RAOIU5MULCHCOLLARWHENSHRUBSARENOTPLANTEDINAMULCHEDBED. 4' H16HEARTHSAUCERm BEYONDEDGEOFROOTBALL. LANDSCAPEDETAAL2Ill"=1'-0" ILii2 . • Gfir ' LAN05C.AFEPLAN11 1- I1it1www. htg—architocts. cam9300HennepinTownRoadEdenPrairie, MN55347Tel: 952.278.8880Fax: 952.278.8822PROJECTNORTHDALECONSTRUCTIONOFFICE/ WAREHOUSEOTSEGO, MINNESOTABIDSETApFi126,2007REVISIONSDATE. 01-12.01IADDENDUM 'I01-21-01yADDENDUM02AKNGHORNCONSTRUCTIONFROJECr14!98NORMAEBLVAAOGEPAMN56374PfM763-428•-MlHEREBYCERTIFYTHATTHISPLAN, SPECIFICATIONORREPORTWASPREPAREDBYMEORUNDERNYDIRECTSUPERVISION, ANDTHATIANADULY. LICENSEDARCHITECTUNDERTHELAWSOFTHESTATEOFMINNESOTADAMEGROS/E2t12989April26, 2006REO. NO. DATEwall i14feZINmyVIAkirrttr9yDRAWNBY: RLOCHECKEDBYTRMNaMAln2001- 070LP -07131
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CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO: 2026-54
ADOPTING FINDINGS OF FACT AND APPROVING AN INTERIM USE PERMIT FOR
PID 118-238-002010
WHEREAS, Hempel Properties (“Developer”) has submitted application for an Interim Use Permit to allow accessory outdoor
storage at 9760 71st Street; and
WHEREAS, the legal description of the Property (“Property”) is attached as Exhibit A; and
WHEREAS, the Property is within the West Sewer District and guided for Industrial land uses by the 2023 Comprehensive Plan;
and
WHEREAS, the Property is zoned I-2, General Industrial District; accessory outdoor storage is allowed as an interim use within
the I-2 District; and
WHEREAS, the City Council previously approved a Conditional Use Permit allowing outdoor storage upon the property on 12
June 2026; and
WHEREAS, the change in occupancy and character of the outdoor storage is substantially different than that for which the
Conditional Use Permit was approved; and
WHEREAS, applications for an Interim Use Permit are processed in accordance with the provisions of Section 10-5-2 of the
Zoning Ordinance; and
WHEREAS, the City Council must take into consideration the possible effects of the proposed interim use with their
judgment based upon (but not limited to) the criteria outlined in Section 11-5-2.F the Zoning Ordinance:
1. The proposed action's consistency with the specific policies and provisions of the Otsego Comprehensive Plan.
Finding: The subject property is guided for industrial uses. The proposed rental outdoor storage use is an allowed
use of the subject property that is characteristic of and incidental to industrial areas. The proposed use is consistent
with the policies of the 2023 Comprehensive Plan.
2. The proposed use's compatibility with present and future land uses of the area.
Finding: The subject property is surrounded by existing industrial uses similar in character to the existing and
proposed use of the property. The proposed outdoor storage will be compatible with existing and planned uses in
the area.
3. The proposed use's conformity with all performance standards contained within the Zoning Ordinance and other
provisions of the City Code.
Finding: The proposed use will comply with all requirements of the Zoning Ordinance.
4. Traffic generation of the proposed use in relation to capabilities of streets serving the property.
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Finding: The subject site is accessed via 71st Street from 70th Street, which is a future Minor Arterial roadway
designated by the Transportation Plan. The existing streets serving the subject property have adequate capacity
to accommodate traffic generated by the proposed use.
5. The proposed use can be accommodated by existing public services and facilities and will not overburden the
City's service capacity.
Finding: The proposed use involving a change in occupancy of an existing developed industrial lot will not affect
City services.
WHEREAS, the Planning Report dated 14 July 2026 the City Planner, The Planning Company LLC, is incorporated herein.
WHEREAS, the Planning Commission conducted a public hearing at their regular meeting on 20 July 2026 to consider the
application, preceded by published and mailed notice; based upon review of the application and evidence received, the
public hearing was closed and the Planning Commission recommended by a 7-0 vote that the City Council approve the
request based on the aforementioned findings.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Otsego that the findings of fact outlined herein are
adopted and the application an Interim Use Permit for the property is approved based upon the foregoing information and
applicable ordinances, subject to the following conditions:
1. The subject site shall be developed in accordance with the plans and information on file with the City subject to
stipulations of approval as outlined herein in accordance with Section 11-9-4 of the Zoning Ordinance.
2. Outdoor storage areas shall be surfaced with Class-5 material sufficient to adequately control dust and prevent
erosion, subject to inspection and approval by the City Engineer.
3. Trees that are not in place, or that are dead, diseased, or not in good condition illustrated on the landscape plan
approved with the 2006 Site and Building Plan review shall be replaced, subject to review and approval by the
Zoning Administrator.
4. Installation of any new exterior lighting or replacement of existing fixtures shall comply with Section 11-16-6 of
the Zoning Ordinance, subject to review and approval by the Zoning Administrator.
5. Exterior storage of waste and recycling containers shall comply with Section 11-18-4.C of the Zoning Ordinance,
subject to review and approval by the Zoning Administrator.
6. Construction of a fence at the perimeter of the outdoor storage area shall comply with Section 11-19-4.H of the
Zoning Ordinance, with issuance of a fence permit, subject to review and approval of the Zoning Administrator;
the south line of the fence shall be solid to screen the outdoor storage area from view of 71st Street.
7. All freestanding and wall signs shall comply with Chapter 37 of the Zoning Ordinance and require issuance of a
sign permit, subject to review and approval by the Zoning Administrator.
8. There shall be a minimum of 25 off-street parking spaces striped onto the existing pavement with dimensions
required by Section 11-21-7 of the Zoning Ordinance, subject to review and approval by the Zoning Administrator.
9. All grading, drainage, and erosion control issues shall be subject to review and approval by the City Engineer.
(Remainder of page blank; signatures follow)
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ADOPTED by the Otsego City Council this 27th day of July, 2026.
MOTION BY:
SECONDED BY:
IN FAVOR:
OPPOSED:
CITY OF OTSEGO
__________________________________
Jessica L. Stockamp, Mayor
ATTEST:
__________________________________
Audra Etzel, City Clerk
EXHIBIT A
LEGAL DESCRIPTION
Lot 1, Block 2, Otsego I-94 West Industrial Park Fourth Addition, Wright County, Minnesota