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Industrial Facility Exemption
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What happens when the cost of a project or the size of a project turns out to be greater than was stated on the original application?
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Answer:
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The PTD staff distinguishes between an increase in scope versus an amendment of the project. If the original application listed 10 computers at a total cost of $20,000 but it turns out that the 10 computers cost a total of $25,000, that is an increase in scope. If the original application listed 10 computers at a total cost of $20,000 but it turns out that 20 computers are purchased at a total cost of $40,000, that is an amendment.
STC Rule 54 reads as follows:
Rule 54. (1) If the final cost of a project, either the real or tangible personal property components, will be greater by more than 10% of the estimated amount in item 6 of application form L-4380, a certificate holder shall request that the local governmental unit approve the revised cost.
(2) If a local unit of government approves a revised cost in accordance with subrule (1) of this rule, the holder of the certificate shall request that the commission issue a revised certificate. The request shall be accompanied by a copy of a resolution of approval adopted by the local governmental unit.
If there is an increase in scope of the project which exceeds the original approved amount by 10% or less, it is not necessary that the local unit approve the new amount. If there is an increase in scope which exceeds the original approved amount by more than 10%, the procedures in STC Rule 54 must be followed.
When additional real and/or personal property components are added, an amendment to the project has occurred, regardless of the dollar amount of the additional property and must be approved at the local level and finally by the STC.
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