Stepping out of the management would be a key aspect of your proposal.

I met with an architect who came out to see my property and he just got back to me with a proposal and he confirmed that I'm allowed to turn the basement into a legal unit.

If they get this one, maybe they'll back off or not pass the cap gains 9% tax proposal on commercial property.  

It's important that you have the right zoning and use of the proposed building.

Structure their 30% seller carry note however it works to keep the cashflow on the positive side with proposed new 70% first mortgage.Just one of many options I'm sure you'll receive. 

His tax software will allow him to model what you are proposing.  

This is the 7 step process I use when handling tenant disputes: 1) Open Communication: Contact your tenant in a friendly tone, acknowledging their positive qualities as a tenant.2) Explain the Issue: Describe the problem with the unpaid electricity bill and its impact on your credit score.3) Propose a Solution: Suggest sharing the prorated amount for the period when they were in the property as a fair resolution.4) Highlight Timely Communication: Emphasize the importance of promptly informing each other about such matters in the future.5) Reiterate Appreciation: Remind them of your appreciation for their positive contributions to the property.6) Listen to Their Perspective: Be open to hearing their side of the story.7) Document the Agreement: If an agreement is reached, document it in writing for clarity.

If the tenant proposes it, that’s a little better but definitely not a good look to propose this as a landlord.

Many people run them (me included) and it doesn't have this added step.I am not sure of the tax rules regarding what you proposed, but I think it would be hard to find an individual willing to do this for you, with all the risks involved.  

In Maryland, our local Realtor boards are fighting against a similar proposed law.