Of course land in the bay is valuable enough that nobody will do what you suggest. However that is economics, it shouldn't be law.
Where I live, a lot of zoning laws are really ordinances, and the enforcement of different aspects of sanitation is split between the zoning ordinance and other ordinances. I wonder how the new anti-zoning law law handles that.
If someone invents a way to do it safely, they should have the burden of safely proving that first.
If someone wants to stockpile 100 tons of explosive material in my neighborhood, I don't want my estate to use the courts to find remedy after my section of the neighborhood gets leveled/cratered. I want the obviously harmful activity to be stopped before the hazard is created.
Also, given prevailing rents that would likely lose them money over renting it out, though you can certainly regulate your way into that being the best option if you "protect" renters enough.