IMHO you don't want this person as a tenant.

I have found local government types are worse than the feds or state because in the give a person a little power category.

If a customer isn't going to be profitable to my business, I'd prefer not to have that person as a customer.  

I think it goes without saying you cannot discriminate against a disabled person as well. 

The police will not want either one of you getting into a confrontation or talking with this person as that can escalate things.

She's no pushover, but she is just a genuinely nice person, as well as efficient.

This learning curve makes a person a better REI.  

I would not rent to this person. A

It is generally illegal to refuse an applicant due to a property's no-pet policy if they have a service animal, but is it permissible in Colorado to charge that person a standard pet deposit?

What do you say to that person as the reason not to rent to them?