If you really want to stay open there are a couple things you could try.
Most importantly, present yourself to city hall as a business owner(try using paintball as your base argument(it seems to be more socially acceptable and I know why but that is a different story)) with a legitimate concern. Next-ask for an exemption for your business. This will show if you were targeted with this new law. It only takes one small minded councillor with a grudge to convince his peers and there you have it, a new stupid by-law.
If it is a grudge, then it needs to be exposed to the public. Then you may get an exemption. If it is not a grudge then they can prove it by giving an exemption. If your land is not producing as much tax revenue as they would like then they may, indeed, have their eye on you.
Good luck. Fight it if you have to. These petty municipal officials need to be curtailed before they get a feel for abuse of power. That is what makes this a great political system in this country. The people can show the gov't what is right ...sometimes...