Development has not hit there yet, it hasn't really hit in St Cloud area for most part aside from Sartell, and even then not on scale like rest of Twin Cities expansion, so your some time away from forced appreciation via development. 

I am horrify in how will this impact my property value.

They red-tagged us and we were forced to pay for plans to be drafted, approved, and several inspections before they permitted us - set us back several thousand dollars and an extra two months as a result - still, we were able to complete the project and still appraised for more than we spent.

Your city can also force a work stop order if you don’t have them and make you remove stuff to get it inspected. 

If I were to take ownership and assign myself as a new member of the LLC, would the current bank force me to refinance the portfolio?    

While you can force appreciation through rehab, sweat equity, etc, buying at the right price factoring in all of the property's needs will set you on the right path.

On a positive note, those fees are only a few thousand dollars or less so even if they are forcing a buyer to pay this fee, it should not be a deal breaker depending on the duplex condition and price. 

I want to talk to more than one lender, but I do not want my credit score to be impacted by having it checked multiple times.

By working in different geographic areas you can help minimize this risk and will be able to exit those properties at different times for additional capital as macro or micro economic changes will have different impacts to different markets. 

We bought turnkey propertie in Texas, when we were stationed with the Air Force over in England.