The West Valley City Council has imposed one of the heftiest business license fees in Utah - $50,000 - on firms involved in graphite fiber production.
Only one firm in the city is affected: Hercules Inc.City Attorney Paul Morris said the fee will finance a study to promote development of the West Ridge Industrial Park and that it automatically expires next year.
"The study will look at energy needs and infrastructure and ways to make the park attractive to quality businesses," Morris said.
Calling the situation unique, Hercules spokesman Bill Hawkesworth said his company does not object to the large fee. "We're comfortable with it. Ultimately, it gets back to our commitment to work with the city on the industrial park."
West Ridge, which includes a golf course as well as light industrial developments, was intended to be a safety buffer zone around Hercules' Bacchus Works.
Both Hawkesworth and Morris said the fee arrangement was not linked to the city's decision earlier this year to reject a higher franchise tax cap, which would have cost Hercules in excess of $250,000.
"There was no connection at all," Morris said. "We were very careful not to tie the two together."
Hawkesworth agreed and added that the company's disagreement with the city over the proposed franchise tax had not harmed their close relationship.
Former City Manager John D. Newman argued the money was necessary to support revenue bonds that were issued for the West Ridge development, an argument he lost.
Hawkesworth said Hercules endorsed the $50,000 fee because it wants to help ensure the success of West Ridge as a "stellar" business park.
"We want to make sure it is done in the most compatible way possible for our operation and for the city," he said. "It is in our long-range interest to see to it that the park is developed properly, and that's why we're taking a Cadillac approach."