City won't allow me to rent out my Triplex

[Beau Ryan]

So here is the back story.  I bought a tri-plex in 2005 located in Mankato, Mn while I went to college.  The property had a grandfathered rental license on it.  This worked great for a couple of years, my roommates' rent covered the cost of the property and then some.  But there was an assisted living home across the street who continually called the police and we received a number of noise violations for doing nothing wrong except being 20 something college kids with weird hours, much different than a senior living center.  The city will not allow us to rent the property or a new owner to obtain a rental license or rent the property either.  The city rezoned the area as well.  We have tried to sell the property a few times but no offers as no one wants to buy a large tri-plex that can not be rented.  We have had no choice but to continue renting.  Every year or so the city is notified and we are forced to evict our tenants and are fined.  We do not want to foreclose on the property and lose our substantial downpayment, 10's of thousands of updates done to the property, and ruin our credit as the loan is in mine and my parents name.  The city is now threatening us with larger fines and jail time.  We have other rental units and flip homes as well and that would not look good to have a foreclosure on our record.  Has anyone run into a similar issue and found a way around this.  I feel what the city has done is illegal.  Any help would be appreciated.

[Adam Moffatt]

Sell to the assisted living center or considerturning  it into an assisted living center?