Keep in mind this can get expensive if the city attorney does not agree with your muni attorney and you have to go to court, so you need to have some mental preparation for at what point do you walk away from this.
I have put in a couple offers on Parks with this same problem (yes I ask this question before putting under contract) - the owners are still trying to figure out what to do about it and I am just checking in with them every couple months to let them know I am standing by to help at the right price.