Unless you are on sewer the first you need to take a look at the new sub-surface systems regulations. If you tear if down or modify it significantly it could run afoul of your systems permit. If you tear it down and do want to rebuild with a bigger footprint you will need to meet the setback if its possible. If you can't meet the setback then you would be looking at the possibility of getting a Redevelopment Waiver with would allow you to offer restoring or replanting areas or making other improvements to offset the increased sq ft of impervious area.
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