3. Building Additions and Modifications
Building projects or portions of projects, which should be added to the capitalized value of an existing building, would include the items listed below. However, any project of less than $500,000 for any one building should be charged to expense, unless capitalization/ reporting is required by bond or lease purchase covenants.
a.Building additions including attached ramps, truck docks, fire escapes, and other appurtenances.
b.Improvements requiring modifications of the structure in order to comply with current fire, health, asbestos and safety codes.
c.Improvements undertaken to convert floor space into floor space or upgrade the use of floor space (i.e., converting storage areas to office/classroom space).
4. Major Renovation and Remodeling
Major renovation and remodeling projects which involve updating a building interior for the purpose of enhancing functionality, and extending the useful life will be capitalized providing:
a.The renovation costs when viewed as a single project exceeds $500,000. (The project will be capitalized even though the renovation may be accomplished by several smaller projects over more than one year.)