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The short answer is yes. The city controls the zoning and layout of the property. If you want to break it into two plots of land so that they can each build a property on it, then you will need to divide the plots into two separate folios. If you don't do that and gift them the land, they will each be 50/50 owners of the entire plot, but the plot will only be one plot (which will ultimately affect them in the future as far as selling, etc.).
Unfortunately, the city does have the authority to control the zoning of the property (which will affect if your daughters can build the houses they want on there). You cannot gift the land to them in whatever form you want as it is controlled by zoning laws.
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