Exception 1 to Section 1007.1 may not apply since it mentions alterations and your project is a change of occupancy and use. With that said, the definitions for an alteration in the IEBC the IBC are different, which could be the reason why you're not getting a definitive answer.
The IBC considers an alteration "construction or renovation to an existing structure other than repair or alteration." Notice that change of occupancy is not mentioned. However, Chapter 34 has separate requirements for alterations and changes of occupancy (plus the IBC has no definition for change of occupancy, thus, per Section 201.3, the IEBC definition will apply). Section 3408.1 for Change of Occupancy would require that the existing building to comply with the requirements of the IBC, but since the charging requirement is from the section on changes of occupancy and not on alterations, it could be interpreted that the exception in Section 1007.1 would not apply.
The IEBC adds to the above IBC definition for alteration as follows: "Alterations are classified as Level 1, Level 2 and Level 3." In the IEBC, this excludes changes of occupancy, which means your project would not be considered an alteration, and similar to the IBC, compliance with the IBC is required for the change of occupancy and the exception to Section 1007.1 could again be interpreted as not being applicable.
Interestingly, the 2018 IBC deleted that exception and the 2015 IBC deleted the reference to alterations--just "existing buildings." If your jurisdiction is looking to adopt one of these editions, you may use that for a code modification.