You've not received an application so there's nothing to deny. 

If I were to deny based upon 1 of the applicant's credit check, is there a regulated process I need to follow or a form I need to provide them?

The bad thing is that the city can deny a special exception.

My advice is to deny the applicant now, because you simply don't have the skills to really find out and this is apparently not a C-class neighborhood rental, but to start the learning process.

@Jay Hinrichs Jay, first off I'm not going to deny that I'm acting in my own best interest when I'm negotiating a deal.

Offer her the "happy clause" to mutually terminate the lease AND deny her requests.If she takes you up on it, consider the bullet dodged.

The tenants will likely say that he was there but he is no longer there or deny it all together.

I’ll update the thread once the variance is approved or denied, and reasons as to why it was approved/denied.

Even still, I was denied due to not meeting the square footage minimum with the lots.  

I’ve had the deed (eg not just the tax lien) and possession for over 3 years and was denied title insurance when trying to sell it because I haven’t filed a quiet title yet.