The main problem with the sentence as written is the redundancy of "both...and" and "in addition." One of those must be deleted, so (A) is wrong. Scanning the answer choices, one key distinction between them is the word preceding "located." Two have "is," two have "are," and one has "and." The government facility "is" located--there is only the one facility. Thus, (B) and (E) must be wrong.
Choice (D) has a different structure from the other choices. It has no verb to match the subject "government facility" and is not a complete sentence. This is clear when you read around all of the underlined details: "A...government facility [doing x]...and located at [y], having..., more than...." There's clearly something missing. Choice (C) is correct.