More specifically, here's the dilemma:
Old "motor inn" motel with 10 units was at some point in the last 50 years converted to mini 1 bedroom apts, with small gas range, gas wall heater & gas water heaters, no laundry, (minimal load). Until a month ago, the entire facility was feed by a 50 amp service. The neutral failed on the service entrance, plus the entire service was hanging by a single screw. The DP 50amp fed a small sub-panel 130' away from the main.
I replaced the service with a meter/main 200amp, 20/40 panel, and ran 130' of 1 1/4" with #2 Thhn feed by a DP 100amp to the sub-panel (it was rated for 100 amps). My work was fully permitted and inspected.
The owners asked about individual metering, but had balked at the cost.
I gave the owners a price for rewiring one unit, with the thought of installing a small sub-panel feed by a DP 40amp. A general contractor gave them a cheaper price to do all the work (without a permit)
The general was caught doing the remodel w/o a permit, and the city shut down the entire job. The city inspector has initially taken the position that the unit had to be have a 100amp service. (BTW, this is still possible, my original job will allow for it, just tremendous overkill)
I say the service is already there (my 200amp), and as long as we show the load (which has been calculated per NEC 200 (2011), we can run what ever the appropriate size feeders are to the new panel in the unit. It calculated to roughly 30 amps. (2 small appliance circuits at 1500 watts each= 3000w, 1500w general lighting, dishwasher @ 1188w, garbage disposal @ 1140w, no laundry or other appliances, hood 300w)
Your thoughts?