If you leave the walls that boarder the lot lines you should be able to claim that you are just repairing the old building, anything over $500 worth of work normally requires permits, but less permitting because it's not a new building, also no varrences I think, because it's not new.
I'm a fan of straw bale garages, built one a few years back when I was still building with straw, it was really nice all year round, now if you wood framed your walls, cement sided the outside and set straw in to the wood walls then stuco the inside building inspectors will give you a funny look but will loose any debates, it will also give you an R50 wall.
steel roof all the way, standing seem steel allows for some slick clamps that don't require holes in the roof to mount solar.
in heat slab... PEX in sand under the concreat, you will never have to worry about the slab shifting and cracking the pex, it will also give you more mass to keep the garage warm.
more later.
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