Passengers also provide a customer base for new commercial uses in the area. The Michigan Department of Transportation has been consolidating bus and train service in small rural Michigan communities over the past 12 years. Similar programs have been initiated by transportation departments in California and New Mexico. Railroad Depots and the Railroad Company When a railroad company has no further need for a depot, its concerns about disposition are complex. Although the land under the depot still has value, buildings that have been on the books for a long time and are fully depreciated have little actual value to the company and yet are expensive to maintain.
Maintenance costs are difficult to justify for a building providing limited economic return.
Removal of the structure incurs demolition costs and company reuse of the structure may require costly removal of asbestos. Yet, the depot has intangible value. Railroad companies can enhance their public image and secure local goodwill by donating surplus railroad property to agencies or organizations willing to redevelop the property for public benefit. A positive relationship between railroad companies and the communities in which they operate is important to negotiation of the speed at which trains travel through incorporated communities and the types of materials they carry in proximity to populated areas. For example, a depot converted to a commercial or museum use may attract pedestrians who are not there to use the train and who may be less aware of the potential risk, particularly with fast-running freight trains.