The city council shall have the right, power and authority to refuse any application for a permit where, by reason of the location of the proposed well and the character and value of the permanent improvements already erected on the block or area of land in question, or adjacent thereto and the use to which the land and surroundings are adapted, or for sanitary reasons, the drilling of an oil or gas well would, in the judgment of the city council, be a serious detriment to the city and the welfare of its inhabitants. (Prior code § 28-1-3)