No license shall be granted to any person made ineligible for a license by state law. No license shall be issued to an individual who is not a resident of the city or does not have a registered business address therein. No license shall be granted to or held by any person who has, within five years prior to the application for the license, been convicted of a felony, or of violating any law of this state or local ordinance relating to the manufacture, sale, distribution, or possession for sale or distribution of intoxicating liquors or 3.2% malt liquor and cannot show competent evidence under M.S. § 364.03, as it may be amended from time to time, of sufficient rehabilitation and present fitness to perform the duties of a licensee.