Bob, is that gas line for the heater in the garage area or the new added living area? Make sure you ventilate the area well if you are working with combustable materials in that space, if it will not be sealed off. I was so paranoid about that, I moved my gas furnaces to the attic, and went with an electric water heater in a closet that is at garage level. Just a thought from Mr. Safety ;-)

Looking good, won't be long now that the bureaucrats are doing their thing.