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Authority: AS 18.07.031 AS 18.07.101 7 AAC 07.010. Expenditures to be included when determining whether a certificate of need is required. (a) In determining the amount of an expenditure for an activity under AS 18.07.031(a), a person shall include the cost for one, or a combination of two or more, of the following components, as applicable:

(1) site excavation;

(2) construction, demolition, or remodeling of a building;

(3) other site or facility development;

(4) purchase of equipment, a building, or other property;

(5) purchase of land that is to be used for the health care facility; the value of land purchased for future development of the facility will be considered at the time the future development is to occur, if the

(A) future development requires a certificate of need; and

(B) value of the land was not included in a previous certificate of need issued under this chapter for the facility;

(6) the value of land that is owned by the applicant and that is to be used for the health care facility, based on the value of the land at acquisition or the current appraised value of the land after deducting the cost of the appraisal, whichever value is less; the provisions of this paragraph do not apply

(A) to an expenditure that involves only remodeling of an existing facility unless the remodeling includes an expansion of the facility; or

(B) if the value of the land was included in a previous certificate of need issued under this chapter for the facility;

(7) the value of space that is owned by the applicant and that is to be used for the health care facility, based on the value of the square footage of the space if it were leased, using the average current market rate for similar space leased in the proposed service area or comparable space in a comparable service area; the provisions of this paragraph do not apply to an