I had a maximum level granary but when I moved it to a new location the granary reverted to a level 1 version. It seems to be that when you move any building you are refunded the base cost, not the improved building cost, but then upon placing the building it only builds the lowest level version.
Edit: Just found this is the FAQ "Be careful when moving upgraded buildings, as these will turn back into small buildings when they are moved". I would strongly suggest adding a warning to the "move/recycle" tooltip indicating this will occur as it is not noted in the game (and is certainly a shock when it happens).



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