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OCR for page 52
Utilities When making a location decision, a company will want to know that reliable and cost-effective electric, water, sewer, and other utility capacity exist. Some facilities are more dependent on utility capacity than others. Electric, water, and sewer capacity is less critical to warehouse, distribution center, and intermodal facility locations than it is for data center and manufacturing use. However, refrigerated and automated warehouses will have requirements with regards to Income, sales, real estate, and the amount, cost, and reliability of power. This will also be the case property taxes can all affect for any freight facilities that incorporate manufacturing as part of the cost environment for freight the operation. facilities. Some facilities, such as those using heavy lift capability or automated warehouses (which are highly reliant on computerized machinery), will pay even more attention to utilities and may even use access to uninterrupted power as a go/no-go issue when evaluating potential sites. Freight facilities often include assembly or light manufacturing operations in addition to freight movement. Utility requirements of these ancillary functions may impact location needs. Permitting and regulation Permitting and regulation impact how a company can implement its plans for a particular site and can also impact its timeline. Knowledge that a community is already familiar with industrial and freight facility types and has a process in place can be seen as a location positive. Content and interpretation of fire codes, land use regulations, traffic regulations, zoning, and hours of operation regulations can all impact the feasibility of a freight facility location. Tax environment Income, sales, real estate, and property taxes can all affect the cost environment for freight facilities. Real estate taxes can be high on urban facilities, especially if the land could be used for other high-density development such as upscale condos and retail. High 52 Freight Facility Location Selection: A Guide for Public Officials