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Holiday Oil seeks 2.27 acre-feet; Tooele staff recommend fee-in-lieu and council to vote
Summary
Holiday Oil requested 2.27 acre-feet of water rights for a proposed convenience store at Frank's Drive and 1000 North; Economic Development Director John Perez said the request equates to $79,450 and cited projected capital investment of $7.5–8 million and 10–15 jobs. The council placed the resolution on the business meeting agenda for a vote.
Economic Development Director John Perez told the Tooele City Council on Feb. 4 that Holiday Oil has requested a payment in lieu of water-rights conveyance for a proposed site at the northeast corner of Frank's Drive and 1000 North and that staff have confirmed the application details.
Perez said the applicant requested 2.27 acre-feet of water, which he said "equates to 79,450." He described the project letter’s estimates: a capital investment between $7.5 million and $8,000,000, creation of 10 to 15 jobs and anticipated annual sales of roughly $15,000,000 (about $12,000,000 in fuel and $3.5 million in convenience-store sales). He also emphasized that the proposal does not include a carwash at that location.
Councilmembers asked technical questions: whether landscaping or restrooms would require the requested water amount and whether a future carwash would change the water calculation. Perez said the applicant provided usage comparisons and the city engineer, Paul Hansen, had confirmed the 2.27 acre-feet figure. Perez also said the applicant submitted a building-permit application that is under review and staff expect site-permit processing to begin in a few weeks. He noted that the permanent traffic light timing and turn-lane upgrades along 1000 North are the responsibility of UDOT and that a permanent light is anticipated in the spring.
The resolution (2026-05) authorizing payment in lieu of water rights will be placed on the business-meeting agenda for formal consideration; no vote occurred at the work meeting.
