(1)__A court has determined that the denial of a permit under this section would constitute a constitutional taking of property; or

(2)__The department finds that strict application of the standard from which a variance is sought would result in undue hardship.__The department may find that undue hardship exists only when:

(a)__The undeveloped lot was a deeded lot of record as of August 1, 1983;

(b)__The property can not be put to a reasonable economic use unless a variance is granted.__In making this determination, the department shall consider evidence of the value of the property when it was purchased or acquired, the reasonable expectations of the applicant for use of the property when it was purchased or acquired and the value and possible uses of the property without the requested variance;

(c)__The hardship is not the result of action taken by the applicant or a prior owner; and

(d)__There are no practicable measures or alternatives that would allow the project to proceed in compliance with the standard from which a variance is sought.__The applicant shall demonstrate that the applicant has explored all alternatives that would allow the project to proceed in compliance with the standard from which a variance is sought and shall explain to the satisfaction of the department why each such alternative is unavailable or unreasonable.

B.__After an applicant pursuant to subsection 480-AA, subsection 1 has demonstrated that the applicant is eligible for a variance under paragraph A, the applicant shall also demonstrate that the proposed project meets both the applicable standards of sections 480-AA and 480- BB of this chapter, for which a variance is not being granted, and the following standards.__The following standards are intended to help minimize the impact on protected natural resources.