It seems like I'd be approved for parking if I went through the process, but I can't wait 4-6 months to get a variance granted prior to starting construction.

So....if you stop them from using the RR easement, they can go to court and a judge will grant them access “through an adjoining property owner’s property, whichever one makes the most sense, or the property that was divided and cut access off”.  

If that's the case, the city will do whatever they can to stop you from developing or making improvements to the lot-- including granting variants now and any future property updates.

@Grant Delmonte thanks for the info!

Granted, some "higher risk" lenders would be willing to take a look at it, but the amount you'd pay in interest at those places would likely exceed any closing costs at the bank you're already in discussions with. 

Granted that number would go down every month as principle paid off.

Here are my favorite negotiating books:Never Split the Difference: Negotiating As If Your Life Depended On It by Chris VossTrump: The Art of the Deal by Donald TrumpImpossible to Ignore by Carmen SimonThe Psychology of Selling by Brian TraceyThe Little Red Book of Selling by Jeffrey GitomerSpin Selling by Neil RackhamThe Greatest Salesman in the World by Og MandinoZiglar on Selling by Zig ZiglarThe Secret to Selling Anything by Harry Browne48 Laws of Power by Robert GreenePitch Anything by Oren KlaffCrucial Conversations by Kerry Patterson, Joseph Grenny, Ron McMillian, and Laura RoppeInfluence by Robert CialdiniSell or Be Sold: How to Get Your Way in Business and in Life by Grant CardoneHow to Win Friends and Influence People by Dale CarnegieWin Your Case by Gerry Spence

Granted, often this process goes faster, but don’t put yourself in a situation where you’ll depend on it.

Are they able to apply for a grant to help pay for the rehab?

Has any one refi with a first time home grant/loan from the state?