I am posting the numbers in order to (1) share the information for the benefit of others and (2) get people's comments on the deal.The property we're selling closes tomorrow and we will receive about $420k, which is enough for a roughly 25% down payment on this new property.

If you sell you pay tax on the gain. 

A couple of questions: Should I just pay or is there some benefit to requesting abatement? 

Definitely continue to interact and ask questions here on Bigger Pockets and try and learn as much as you can and take action on the wisdom you gain.

The benefit is that you can choose pretty much anything to invest in as long as you follow the IRS rules. 

The one year you rented it will be subject to cap gains (in addition to one of depreciation recapture) under the Qualified Use I believe it is called.  

I’m working the creative real estate strategies and I am looking to connect with active wholesalers for collaboration with mutual benefit.

Your two policies don't list all the same benefits. 

If you have a license but not the zoning, do you lose any core benefits (i.e. the ability to evict)?

@Chris Wierman The St Michael area benefits from being close to The Elk River Otsego area which has boomed over the last 20 years, however, it is most attractive due to its price.