@Rob Ibarra Converting non restaurant space into restaurant space can be fairly costly from what I understand due to the need for larger than standard water lines to service the building and a general need for grease traps and other restaurant specific infrastructure.My first question around going from abandoned auto shop to kitchen is zoning, could you even get the use approved, and then are their any environmental factors in play? 

I tried calling the 311 # for the environmental hazard but nothing has been done yet.  

An environmental impact study?

We just don't know the environmental impacts and ignorance is bliss.

Phase 1 environmental - Get this done in parallel to survey.

(biggerpockets.com)Energy efficiencies in the building: Environmentally Friendly Tax Credits for Your Property (biggerpockets.com)Federal and state grants: Real Estate Grants (biggerpockets.com)On top of the benefits noted above, here are some added tax benefits from a cost segregation study: Added Tax Benefits of Cost Segregation (biggerpockets.com)Have you utilized a cost segregation study for any of these added benefits?

No chemicals, no electricity, refill and clean after each stay, and “environmental friendly”.

Quote from @Jeremy Greenamyre: If the goal is to incentivize housing construction, the federal, state, and local governments could also address the disincentives - environmental restrictions, "green" requirements, restrictive zoning, studies, etc.

Begin your 'pre qualification' process for the acquisition now (most commercial lenders won't issue a PreQual but rather a LOI) In general, Commercial transactions can take longer due to extended due diligence, appraisal, environmental reports and financing (60+ days) so you'll want to initiate your search during the marketing of the down leg as it can cause a tighter timeline than a residential transaction. 

In the world of development you have money at risk to complete these and other reports, legal, zoning, permitting, environmentals, etc before you go hard on your deposit with a seller.