Book-Cellar, Inc. v. City of Phoenix
In Book-Cellar, Inc. v. City of Phoenix, 150 Ariz. 42, 721 P.2d 1169 (App. 1986), a business owner argued that it was not required to abide by a certain zoning ordinance, and the city had appealed the zoning administrator's original decision in the business owner's favor to the Board of Adjustment, which reversed and held in the city's favor.
In a special action then filed by the business owner, the city contended that the business owner was first required to seek a waiver from the contested zoning ordinance before requesting judicial review before the superior court.
The Court held that the business owner was not required to seek a waiver because it was not seeking a waiver under the zoning ordinance but was arguing that the business was not subject to the zoning ordinance at all.
The Court held that, unless the activity is "a fundamentally inherent function of or encompassed within the basic nature of government," it is a proprietary function. Id.
The Court then explained that operation of a fairgrounds did not constitute a fundamentally inherent function of the government because it was a competitive, commercial endeavor and was not funded by tax revenues. Id.