Name of a city for my business trademark

What is the name of your state (only U.S. law)? Arizona
I am trying to trademark my business name which has the title of a prominent city in Arizona. My business is located in Arizona and I have been denied my trademark because another business is using that city name for one of their lines of wine. My business is going to be a distillery and I am going to be making spirits. I want to use the name for my whole business and not just one line of spirits. I am going to use other names for my lines. Do I have a case to be able to use this city name?What is the name of your state (only U.S. law)?

Perhaps I am totally misunderstanding your question but, if your use of the trademarked name has already been denied because it is in use by another competing business, then I would say you probably don't have much of a case for using the name.