Illegal Subdivision!!!! Help!

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Hello,

I have a big problem with a small fix. My husband and I have been busy with our main business and are racking our brains with another. Back in 2017 we purchased a vacant piece of property to build our new office building on. As time has gone by building has become expensive. So instead of building we opted to by what we call our "Covid Special" commercial building. The price was right and had enough space for us to have 3 rentals in the one building (1 1bdrm apt and 2 commercial offices 3 if you include our space as well). However, the area in which we live in is having a problem with rental space due to the military taking back their lease with an investor. They are demolishing 420 units and will not be rebuilding the housing. The local government is asking investors to build multifamily units as a way to combat this issue. They are also giving a 10-year property tax break as an incentive to entice local investors. So here comes the issue, the property that we purchased back in 2017 is zoned MFO. Great fantastic we thought! This land is paid off and all we need to do is subdivide it and go on our marry way. Our engineers submit everything to the local platting office only to be denied. The reason......illegal subdivision. Just to let you know this isn't unfamiliar in the wilds of Alaska. They have a way for this to be fixed. We need to go to the neighbor who purchased the other property that was taken out of ours and ask that he fill out the document that says it is ok to re plot his property and this will be fixed. My engineer called the gentleman and told him that the subdivision was illegally subdivided back in 1982 and his property is affected. He continued to tell him they would replot the property at no cost to him if he would sign the document. The neighbor's response........" not interested".  Just to let you know he is currently still building his house on the property. I told the engineer let me call him as he had done work for me at my home years ago (he is a drywaller). I then got on the phone and explained to him what the issue was and that he might want to go down to the borough office and talk to them just so he is informed. He stated "that is the borough 's problem not mine and I know what you are trying to do". I was shocked, shocked to the point of realizing this may not happen. The borough just started enforcing this law with in the past two months. We have since gone to an assembly meeting and have brought the issue up the members. We informed them that what they have as a fix is not working and we can't continue because someone else has control over our property that we have paid taxes on since 2017. Their interest was perked when we alerted them of this problem. They asked questions for clarification and that was it.  One assemblyman even went as far on record to ask my husband, after he gave his 3 min testimony, if he was aware that this subject came up two weeks ago my husband replied by saying "no" and the assembly man continued by saying everyone that was voting no that night didn't want to discuss it. We can still build but once we get financing, we will not be able to subdivide the property. 

We have spoken to an attorney, and he stated you don't have a legal problem here.... this is an ordinance issue. 

Any comments or suggestions we will take.