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Economic effects Jobs and investment make up the primary economic benefit resulting from freight facility location decisions, and communities and companies often estimate jobs, income, wages, and property value as direct, indirect and induced effects of a facility. These impacts include both the short-term construction effects and long-term operations as well as the potential to attract other businesses near a freight facility. These impacts must be considered and balanced with projected impacts to evaluate how desirable these facilities are to the community and region. Knowledge of the true costs and benefits also provides the public sector with a much better basis for negotiations for incentives, credits, impact fees, and other public-private partnerships. Near-Term Construction Effects Building the facility and proposed infrastructure as well as necessary transportation connections requires short-term construction activity with both direct effects and broader multiplier effects. If desired, these impacts can be measured using input-output models, such as IMPLAN or RIMS II, which allocate construction spending to relevant industry categories. Direct Economic Activity at the Freight Facility The direct impacts of the new freight facility include the number of people employed at the facility, their wages and salaries, changes in revenue (business output), and any developments directly related to the facility. Freight facilities also generate income to the community and state directly in the form of property tax, corporate income tax, sales tax, and the various permitting fees that accompany the activities at the site. In addition to this, the region and state also gain additional tax income through the income and purchasing activity of employees and vendors. Multiplier Effects of the Freight Facility Operations Impacts beyond the direct impact of the facility itself are called multiplier effects. For example, an employee at the new warehouse receives wages that he otherwise would not have received. Put another way, the salary paid by a freight company to an employee Freight Facility Location Selection: A Guide for Public Officials 13