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Metrichex t1_j6jo3rz wrote

They don't want to pay the taxes. It's safe to assume that's why (mega corp x) doesn't have a location inside city limits.

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tesla3by3 t1_j6k2jla wrote

Local taxes are a very small factor, if at all. It's land availability, easy access, and lots of traffic. Few places in the city meet the criteria,

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shhheeeeeeeeiit t1_j6kbgyz wrote

GetGo managed to expand within the city so it’s not impossible

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tesla3by3 t1_j6kfllp wrote

Sure, it's not impossible, but Sheetz requires a much larger lot than Getgo. There just isn't a lot of land available that meets Sheetz criteria.

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shhheeeeeeeeiit t1_j6kk8z5 wrote

I don’t think the number of pumps matter. Gas stations hardly break even on gas, so a few less pumps doesn’t make a difference compared to convenience sales.

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tesla3by3 t1_j6knpf0 wrote

It's a myth that stations barely break even on gas. There is absolutely profit to be made on gas. The markup is typically 10%. Apply that to a $75 fill up, that's $7.50. That's before expenses, of course. But there's very little labor cost in selling fuel vs MTO.

Then there's the convenience store business that is driven by having gas. If I need smokes and gas, I'm only going to want to make one stop.

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itsjscott t1_j6o1yoy wrote

Sheetz makes a shit ton of money off of gas.

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akmalhot t1_j6mj4sg wrote

So? Getgo is focused on a smaller area or used to be.

Sheetz has a metric shit ton of locations and they are battling w Wawa on it's eastern front. And royal whatever when you go towards maryland

Why move into crammed areas that don't fit their giant gas tankers when you can go over to York pa, build a new giant denovo location in cheap land in the next up and coming exurb. Giant eagle is also a brand in Pittsburgh, and has synergies w getgo

Where I grew up my favorite sheetz shut down. 2 years later they opened up a huge one a few miles down the road right next to another gas station ... Somehow I think that other gas station got more busy

Also rutters on the secondary main truck routes

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TransporterOffline t1_j6jqtuj wrote

I've always suspected this was the answer, or the City would require some kind of site/traffic planning/mitigation that Sheetz wasn't willing to do. They're kind of a traffic magnet, like a Chick-Fil-A or a Starbucks. I saw the C-store-only version of Sheetz (no fuel) in Morgantown and that was a pretty nice affair. They could totally do that any number of places in town. I'm purely guessing though.

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chuckie512 t1_j6khv1u wrote

The city is making it harder to get any kind of drive through permit (for good reason.... Even just a Wendy's does horrible things on Baum). So I'm sure we won't get a new chik fil a.

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akmalhot t1_j6misbd wrote

That site is not appropriate for a drive through, like 4 cars wating and your into baum (moved 10+ years go so could be remembering wrong)

H

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AngryDrnkBureaucrat t1_j6k9tyx wrote

Real Estate taxes are lower in the city than the suburbs.

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AnthonyJ22 t1_j6keqpu wrote

Total? Once you factor in the city tax that doesn’t exist in the suburbs? Not saying you’re wrong. Just literally surprised at that.

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Lexromark t1_j6jxi2c wrote

Yes and no. Higher costs generally associated with being in the city from taxes, rent/land purchase/wages etc but you can't really charge more for the good and services, not enough to match profitability outside the city anyway.

Things could be changing in the next few years on that front though, sheetz will probably end up in the city as they have aggressive growth targets for Western PA.

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chuckie512 t1_j6khhkk wrote

The property millage is lower in the city. And the state doesn't allow the city to collect another kind of corporate tax.

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Lexromark t1_j6ki1u5 wrote

Lower than where?

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chuckie512 t1_j6kixk7 wrote

All of the surrounding suburbs.

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Lexromark t1_j6kogzo wrote

Having a higher millage rate doesn't necessarily mean you'll pay higher taxes. Clairton has a 33.000 millage rate but the taxable value of your building is also much lower than Pittsburgh. (Though your taxes would be really high in Clairton on a new Sheetz to be sure just an example) Taxes definitely aren't the primary factor though, I would agree with that.

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poodog13 t1_j6kyvl2 wrote

It’s a real estate problem, not a tax problem. Too difficult to acquire site pads that meet their needs.

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username-1787 t1_j6ny1wq wrote

Companies don't choose a location on a 1% difference in tax rates

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