(1) The department will conduct a site-specific evaluation to assess the suitability of a tract or portion of a tract proposed for a real estate project. The site-specific evaluation will include the following factors:

(a) unique or sensitive biological and physical features;

(b) topography;

(c) influence of floodplains and/or wetlands;

(d) hazardous geologic conditions;

(e) known cultural or historic features through a preliminary cultural survey;

(f) proximity to other public lands or private lands under conservation easement, as documented by information in the Montana Natural Heritage Program database or similar source;

(g) water availability and water rights;

(h) existing and required access;

(i) the location and quality of infrastructure, such as roads, utilities, power, telephone, public water, or sewer availability;

(j) any existing encumbrances;

(k) proximity to community infrastructure and utilities;

(l) other nearby residential, industrial, or commercial development, proposed or existing; and

(m) wildland fire hazards and available fire protection.

(2) The department will analyze federal, state, and local land-use regulations, plans, and policies, for their relationship to the proposed real estate project. This analysis must identify existing entitlements and any entitlements that must be acquired for the proposed real estate project to achieve the highest return.

(3) The department may conduct a market analysis for a parcel proposed for commercial, industrial, residential, or conservation use. At minimum, the market analysis must identify:

(a) the size of the current and future market;

(b) market-growth trends, historic and future; and

(c) expected rate of return.