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Legally speaking, they should not be able to control is as a city, unless a city ordinance is being violated
If no city ordinace is being violated and no other public nuisance is present, then the city does not have the authority to do anything.
If the city continues to interfere, you as a group, have the right to seek an injunction against the city to prevent them from interfering going forward. You need to be able to show that irreparable harm will occur if the city is allowed to continue on this path and that court action is the only method of prevention.
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