Some states do have special guidelines or customs that differ from state to state, but this is a minority of situations.  

Where is this located?

Just a thought for you as you begin your journey.Randy  This is great feedback.

They've mandated its demolition but have allowed me to build an even larger addition (500 sq ft).The city is requesting building plans for this new addition.

I would appreciate any advice on this.

They charge a $5/mo fee to each tenant included in the bill.

Does this seem reasonable ideally I could insure it for value vs rebuild cost?

Every day, the Chemical Plants (Dow, Shintech, etc.) and residential neighborhoods that surround the site of this location provide a high traffic count.A great opportunity exists for a tenant that is willing to market their business to travelers of Hwy. 1, the residents in the surrounding neighborhoods, and neighboring communities.How did you find this deal and how did you negotiate it?

Is this common, or are we overpaying due to lack of competition?

To be fair this GC has his estate home next to my project and he did not want to see starter homes going in. we build semi custom highest price in town .. so there was quality of project that also interested him.. this would be a rare event out in the market..