(1) A structure shall be converted only at its existing location unless the agency determines that the purposes and policies of the Adirondack Park Agency Act would be better served by the removal of the structure to, or the replacement of the structure at, a different location on the project site.

(2) A single structure containing over 1,250 square feet of net interior floor space as of May 22, 1973 may be converted to more than one single family residential unit at the approximate rate of one unit for each 1,250 square feet of floor space in the structure prior to conversion; however, there shall be no fixed square footage requirement for the resulting units.

(3) For the purpose of determining whether any additional principal buildings may be constructed on the project site, each single family residential unit resulting from the conversion shall be considered a new principal building, and the overall intensity guidelines will be applied pursuant to the Adirondack Park Agency Act and section 547.7 of this Part. All contiguous or adjacent lands associated with the prior use or in the same ownership shall be included in the area upon which the overall intensity guidelines will be applied.