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This is an unusual case.  Most neighborhood problems arise out of real or perceived violations of the covenant, conditions and restrictions (CC&Rs).  Zoning issues usually involve running a business out of a home, possessing livestock or unauthorized structures.  A garden railroad is so far removed from the normal zoning laws that I'm surprised that the local officials gave the complaint even a cursory glance.  Did you run your track through the foundation into the basement or perhaps run your power from your electrical junction box or something like that?  If the officials are taking this seriously, you live in a very tough town indeed!
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