The transaction will likely be considered lender fraud, especially if you are fabricating the sale just to make it look like a sale for lender purposes. 

Doing commercial loans gave me opportunities in other business ventures in other industries, food, hospitality/recreation, steel fabrication and automotive to mention a few. 

Their argument is simply that it corrodes the 'neighborhood fabric' of the area.

Welcome to the site @Fabrice Kanimba HirwaGood luck to you & I'll see you around the forums.

(The managers husband)So I’m on the phone, on hold with TECO when two men run into the cramped office space waving their guns and yelling for us to put our hands up.One is wearing a skull cap with the extra fabric in back wrapping around his face.

Look at the economic factors that drive this and see if its external fabrication.  

From what I understand it basically involves getting rid of or cleaning any fabrics/carpets, then cleaning all surfaces, I think the cleaning solution is called TSP or something like that.

The business was a fabric shop (bottom unit), my idea would be to turn the second story into a studio apartment 1 or 2 room. would I have to purchase the whole commercial property?

Consider a car - you can be the cleanest person in the world, but just getting into and out of the seat every day is going to wear the fabric of the seat.

I do agree that "Manufactured Homes" are too boxy looking and don't offer much in the way of eyeball or curb appeal.For my purpose I'm seeking experienced designers, engineers, fabricators, marketing, advertising and sales organizations that I can network and/or contract with that can provide me with product and generate leads that my crews and I can contract, facilitate, expedite and complete on the literally hundreds of thousands of existing homes that meet the criteria for this.