NAC439A.325. Projects for which approval required.

     1. For projects subject to review pursuant to subsection 1 of NRS 439A.100, the amount specified for the capital expenditure, as adopted by the Department, is $2,000,000.

     2. Pursuant to subsection 4 of NRS 439A.100, additional approval must be obtained before any change may be made to a previously approved project if the proposed change would result in:

     (a) A change in the location of the project; or

     (b) A substantial increase in the maximum capital expenditure.

     3. An acquisition by donation, lease, transfer or comparable arrangement requires approval if the acquisition would be subject to review pursuant to subsection 1 if made by purchase. An acquisition for less than fair market value requires a letter of approval if the acquisition would be subject to review pursuant to subsection 1 if made at fair market value. The Department will require an appraisal if it appears that the acquisition was or will be for less than fair market value.

     4. A person shall not, in order to evade the scope of review pursuant to this section, divide a single project into separate components which are so interdependent or interrelated that they should not be undertaken separately. In determining whether a project is properly separable, the factors to be considered include:

     (a) The physical location of the respective components;

     (b) The functional independence of each component;

     (c) The separate and distinct capital expenditures involved; and

     (d) The time required for initiation and completion of each component.

     5. Any new construction proposed to be undertaken within 2 years after the completion of any prior new construction, regardless of whether that prior new construction required a letter of intent or letter of approval, must have:

     (a) A letter of intent; and

     (b) A letter of approval, if the combined capital expenditure for the prior new construction and proposed new construction is more than $2,000,000 and the projects are not found to be properly separated pursuant to subsection 4.

     6. As used in this section, “fair market value” includes all costs associated with the acquisition of a facility, whether the facility is acquired by lease, rental agreement, donation, contractual agreement, purchase or any method of financing or encumbrance of money.

     (Added to NAC by Dep’t of Human Resources, eff. 9-4-84; A 3-6-86; 11-25-86; 11-10-87; 1-2-90; 10-14-97)