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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
