First of all, I apologize for
First of all, I apologize for thinking that your locomotive and gas electric were Bachmann products. Had I looked closer it is evident fine the fine details and road specific equipment these are brass.
Yes the lumber spur can serve a lumber yard or distributor without being a producing mill and I think a way side shed and office would work well. Also most engine houses were designed to handle basic repairs with major ones requiring the locomotive to be sent to a large railroad shop. Therefore they frequently were pretty narrow with small lean to anex for an office, tool bench and storage. I would think six inches would be plenty of room. I also like Dave Husman's suggestion of running a spur of the main to the right of the depot for a team track/dock.
As far as operations are concerned, upon arriving at the terminal from the right, the engine would pull the train down to clear the left run around switch, cut off from the train, holding onto cars for the oil/coal spur and then using the run around track, switch that industry first. After spotting a tank/hopper the engine would complete the run around move coming out the right switch and coupling onto the caboose and any cars for the lumber yard and team track. After spotting a box/flat at the lumber yard and any box/reefer/ flat on the team track, the engine would the shove the caboose ahead on the main to clear the engine house lead, tie it down on the main and back up to clear the house lead, line the switch, run the engine inside the house close and lock the door and tie up (go home).
The next day, the crew would back the engine out of the house pick the caboose off the main and then shove it out of the way on the engine house lead. Next, they would move over to the run around track to switch the oil/coal track pulling any mtys,, pull them out to main and leave them in front of the depot, They would then go back on the run around and pull any mtys out of the lumber yard and team track in the opposite direction and coupling them to the rest of the outbound cars by the depot. The last move before departing for the connection at the mainline interchange, would be to pull all the cars to the right to clear the engine house lead, couple onto the caboose, pull everything out to clear the main line switch, perform an air test of the airbrakes and then with the proper paperwork the crew climbs aboard and departs.
It's amazing how much true operation can be enjoyed by running and switching cars on a small layout like this. I figure the above listed moves would take anywhere from 30-60 minutes to accomplish using a smooth, slow running locomotive, and duplicating the methods prototype crews use in applying/releasing handbrakes, lining switches/derails, coupling/uncoupling/spotting cars and performing air tests. Too many modelers try to make switching a game by trying to make things happen too fast and hurry too much. Real railroaders have to comply with many safety and operating rules which means slower but effecient operations. I could go into more detail about switching but I am sure I bored you long enough with this post. I need to get to bed as I am teaching a class of new conductors and need to be up early for class.
Barry