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the top of the ground-level racks; (3) plywood decking placed
upon the horizontal structure that creates the mezzanine level;
(4) additional racks and shelving located on the mezzanine
level;12 (5) additional columns and beams; (6) four one-piece
stairway units connecting the first floor to the mezzanine level;
and (7) steel frames that support the plywood decking and the
framing where there are no ground-level racks. Petitioner
maintains that the Mezzanine System is not physically connected
to the 1986 Shipping Building (other than the connections to the
first floor of the building) and, therefore, cannot be a
structural component of the 1986 Shipping Building. Furthermore,
petitioner contends that the Mezzanine System's structural
support was constructed using bolts and boltless connectors with
a minimum of welded connections, which indicates that it was
designed to be easily moved and not a permanent component of the
1986 Shipping Building.
Respondent argues that the Mezzanine System is inherently
permanent and constitutes a structural component of the 1986
Shipping Building which does not qualify as section 38 property
pursuant to section 48(a)(1)(A). In support of this contention,
respondent maintains that the floor of the Mezzanine System
relates to the maintenance and the operation of the 1986 Shipping
12The parties do not agree as to the extent, if at all, to
which the costs of the racks and the shelving located on the
mezzanine level are included in the actual costs of the Mezzanine
System.
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