Section 1120.110  Project and Related Cost Data – Review Criteria

a)         Estimated Total Project Cost

The applicant shall provide the estimated total project cost, including the amounts for each cost component (line item) applicable to the project.  When a project or any component of a project is to be accomplished by lease, donation, gift or any similar means, the fair market value or dollar value that would have been required for purchase, construction or acquisition shall be included in the estimated total project cost.  The applicant shall submit documentation as to the fair market or dollar value as defined in 77 Ill. Adm. Code 1130.140. Costs shall be provided for the following components (line items), as applicable:

1)         Preplanning Costs − those costs incurred prior to the submission of an application, such as development and feasibility studies, market studies, legal fees, bid solicitation, etc.;

2)         Site Survey and Soil Investigation Fees − the costs for surveying of a proposed project site and related soil investigation fees;

3)         Site Preparation Costs includes, but is not limited to, costs for equipment rental for earthwork, concrete, lifting and hoisting, site drainage, utilities, demolition of existing buildings or structures on site, clearing, grading and related earthwork;

4)         Off-site Work Costs – all costs related to off-site activities, such as drainage, pipes, utilities, sewage, traffic signals, roads and walks;

5)         Construction and Modernization Contracts – all costs and expenses covered under the construction contract, including major medical and other fixed equipment, contractor's overhead and profit;

6)         Contingencies − a cost allowance to be used solely for unforeseeable events relating to construction or modernization costs;

7)         Architectural and Engineering Fees – the costs associated with the design, development of contract documents, and construction administration related to the proposed project, including only those fees defined as "basic services" in Document B101-2007, Standard Form of Agreement Between Owner and Architect (www.aia.org) (American Institute of Architects, 1735 New York Ave., NW, Washington DC 20006-5292, 800/242-3837; 2007, no later editions or amendments included);

8)         Consulting and Other Fees – the costs and charges for the services of various types of consulting and professional expertise, including environmental impact, computer software fees, certificate of need fees, etc. (the applicant shall provide a detailed listing of types and amounts of such fees);

9)         Capital Equipment Not Included in Construction Contracts − the cost of all fixed and movable capital equipment, including any medical equipment and the cost of installation of the equipment, excluding any trade-in allowances on existing equipment, that are not included in construction contracts;

10)         Bond Issuance Expense − all costs associated with the issuance of bonds to finance a project, including issuer's fees, bond counsel's fees, official statements (feasibility study), official statement printing, printing of bonds, survey of the collateral site, title insurance to property, auditor's fees, trustee fees, underwriters' discount, and government fees (if applicable);

11)         Net Interest Expense During Construction – the cost representing the difference between interest earned on funds for construction and interest expense on the amount of borrowed funds;

12)         Other Costs that Are To Be Capitalized − miscellaneous fees, expenses (e.g., asbestos removal, mold treatment, temporary insurance, workers' compensation, surface parking lots, temporary roads or paving, lighting, fencing, security, etc., that are not included in construction contracts) and working capital expenses related to the project (the applicant shall provide a detailed listing of all other fees and expenses and the amount of each);

13)        Acquisition of Buildings or Other Property (excluding land) − the cost incurred (or the fair market value) for the acquisition of buildings or property for the project.  Any acquisition that has occurred within two years prior to the date of application for permit submission must be included as part of project costs.

HFSRB NOTE: If the acquisition is by a lease, and the terms of the lease include capital improvements to the property, then those capital improvements are to be listed separately.

b)         Related Project Cost Data and Information Requirements

The applicant shall provide the following information related to the project, as applicable.

1)         Land Acquisition Cost − the purchase price or fair market value, whichever is applicable, for the acquisition of land that has been acquired within two years prior to the date of application for permit submission or that will be required in order to undertake the project.  Acquisition of land is not included as part of total estimated project costs.

2)         Operating Start-up Costs − the estimated non-capitalized operating start-up costs, including any estimated initial operating deficit, and any other necessary amounts to make the project operational (AMPO).  Any capitalized costs that are related to the start-up costs of a facility must be included in the total estimated project cost.

3)         Project Development Schedule − a project completion schedule that provides the project start date, the estimated date when one third of the total estimated project cost will be expended, and the anticipated date for completion of the project.

HFSRB NOTE: Project completion includes all post-construction activities, including installation of furnishings and equipment, inspections and training of staff. (Applicant should refer to definition of "Project Completion" in 77 Ill. Adm. Code 1130.140.)

4)         Construction Schedule − a construction schedule that provides the dates for construction start and midpoint of construction and anticipated date for construction completion.

5)         Debt Service Reserve Fund − the amount that will be placed in a debt service reserve fund and the terms of and conditions on uses of the fund.

(Source:  Amended at 40 Ill. Reg. 14067, effective September 27, 2016)