I agree that the second item is loaded. However, if they vote Yes in item 1, they are in the SFL. If they vote No in item 2, they are not in D1. By implication, since the SFL rules don't have any other option, they are in D3.
You can bet, though, that those clubs who feel they have been railroaded will be all over this.
One other thing .... what happens if another club wishes to apply for the vacancy?