This is and always has been an issue of zoning and code regulations. The truth of assertions about regulations does not lie in the middle.
If code enforcement says you have to provide two fire exits, and you think you have to provide none, you don't end up in the middle and provide just one fire exit, or half a handrail, or a building that is built with concrete on one side and toothpicks on the other. Similarly, zoning determinations are matters of law, there in black and white, not matters on which conflicting parties have a kumbaya moment in the middle ground between opposing views. This is not the way the law works.