Where the mean of the setbacks of the buildings on the immediately adjacent lots on each side of the subject lot is greater than the minimum setback required within a zoning district, the Building Inspector shall not issue any building permit for the subject lot but shall promptly refer the matter to the Plan Commission. In such event, building setback lines appropriate for the location of the subject lot and for the type of development and use contemplated which are more restrictive than the regulations of the zoning district in which the subject lot is located may be required by the Plan Commission. Examples of the application of this provision would include, but are not limited to, requiring greater setbacks on cul-de-sac lots to achieve the necessary lot width at the setback line, requiring greater setbacks that are compatible with setbacks of existing adjacent development, or setting special yard requirements to protect natural resource elements. In determining appropriate building setback lines in such cases, the Plan Commission shall consider the following, together with such other factors as the Plan Commission may deem relevant:
(1) Compatibility. The setback, size, quality and character of existing lots and building development in the immediate area with a view to maintaining compatibility and protecting property values.
(2) Practicability. The economic and engineering practicability of constructing buildings on the subject lot.
(3) Hardship. The degree of practical hardship which may be imposed upon the owner of the subject lot.