Sounds like it’s time to launch a nice, lucrative lawsuit against that city. Businesses rent their space out to churches all the time. If Satan’s lot is going to try persecuting Christians need to return fire in spades.
In my area the churches normally rent out the space (to AA groups and such); anyone who has had someone set up a “church” in their home might appreciate what the city is doing. They may be trying to prevent a mass of parking issues in an area that wasn’t zoned/approved for it.