A single-family dwelling may be constructed on any recorded lot held in single and separate ownership prior to adoption of these regulations without regard to the minimum lot area, minimum lot width and minimum lake or river frontage required by Article III of this chapter, provided that such lot does not adjoin any other lot or lots held by the same owner such that the owner might combine two or more lots in order to meet minimum requirements. Minimum front, side and rear building setbacks for new structures shall be 1/2 the minimum requirements specified in § 120-11 of this chapter. The establishment of a use other than a single-family dwelling on such lots shall require a variance.