cracybat, you could say the same about the schools when they were introduced, they can now become level 5 too, and an actual level 5, not just level 1 with output as a level 5.
if the game says: "level 1" then the building is level 1, regardless of output. ei. output does not yield building level, as then buffing could be considered to be a temperarily building upgrade, and that's just wrong.
I will kindly suggest not to argue with the game data, as you are, imho, just going to lose. the game clearly states that it's a level 1 building.
doesn't matter what the output is, if the building is level 1. ei. don't matter if the output is 1:1 or 1:5. the building is regardless of this, level 1.
take care