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The city clerk may refuse a license in the event a license is applied for and the city clerk has good reason to believe that the license is intended for the operation of an unlawful business or enterprise. Upon such refusal, any person so denied a license shall have a right to appeal to the city council, which shall hold a hearing on the application. At such hearing the applicant shall be given an opportunity to be heard. The council may then, at its discretion, order the city clerk to issue the license or sustain the refusal, and the action of the city council thereon shall be final. (Ord. 105 § 6, 1939).