Before any zoning permit is issued affecting any land within 300 feet of the centerline of a proposed new highway for which changes are proposed as described in the certification to local officials by the Director of Transportation OF any land within a radius of 500 feet from the point of intersection of such centerline with any public road or highway, the Zoning Inspector shall give notice, by registered mail, to the Director that he shall not issue a zoning permit for 120 days from the date the notice is received by the Director. If the Director notifies the Zoning Inspector that he shall proceed to acquire the land needed, then the Zoning Inspector shall refuse to issue the zoning permit. If the Director notifies the Zoning Inspector that acquisition at this time is not in the public interest or upon the expiration of the 120-day period or any extension agreed upon by the Director and the property owner, the Zoning Inspector shall, if the application is in conformance with all provisions of this Part, issue the zoning permit.