The Chief may exercise discretion, and is hereby empowered to deny or withhold approval of a permit for which an application has been made if the building, premises, equipment, apparatus, vehicle, or reasonable facilities for the establishing, maintaining, conducting operating the business, operation, occupation, or premises for which the permit is requested is or are insufficient or are unfit or incapable of being used, maintained, established, or operated to comply with this article or other applicable laws and the Rules and Regulations of the Department.