Friday, May 27, 2011

Winery approval final: no appeals of earlier decision

            The approval of  Deschutes County’s first winery on agricultural land became final May 25 with no appeals filed during a 12-day period following a hearing officer’s favorable decision.
            But the following day the Deschutes County Planning Commission discussed the county’s potential role in regulating activities and events associated with the winery. 
The answers, commissioners and county staff acknowledged, are not clear cut and assistant county attorney Laurie Craghead was instructed to further research state law related to wineries on land zoned for Exclusive Farm Use.
County planning director Nick Lelack and Craghead both explained to commissioners that hearing officer Karen Green’s decision approving the winery could not be modified.
Faith Hope & Charity vineyard
Lower Bridge Way in Terrebonne
Green found in favor of Cindy and Roger Grossmann’s proposal to establish a winery in Terrebonne adjacent to their existing vineyard under state law, ORS 215.452. The legislation authorizes wineries on EFU land as an “outright use” if associated with a vineyard of at least 15-acres.
The county planning staff had initally concluded that the Grossmanns’ existing Faith Hope & Charity 15-acre vineyard did not qualify as a vineyard in that grapes have yet to be produced. As their vineyard matures the Grossmanns have purchased on contract grapes from nearby Monkey Face Vineyard in Terrebonne that are being made into wine at a Medford facility.
Following a March hearing by Green, planning commissioner James Powell had written to the planning staff raising issues related to traffic and access to the winery site during special events, which are authorized under an amendment to the winery legislation.
But Craghead pointed out that no comments by county staff could be added to the record “ex parte” after the March public hearing,” explaining that any county staff involvement after the hearing “opens them up to claims of bias.”
Powell said his concern was “not about the winery per se” but that the winery approval under state law “lacked any oversight of local jurisdiction.” Among the issues he cited were access for emergency vehicles and regulation of food service and the county’s authority over the “timing and magnitude of events.”
Powell acknowledged that the Grossmanns have made a “huge investment and we would like to see that recaptured.” However, in the future Powell said he’d like to see the county develop a policy addressing events “that would be applicable across the county including wineries” while recognizing the need to support landowners attempting to derive income on farmlands.
Craghead said she would, “study this to see how we can restrict events. It’s a state statute and we’re limited on what we can regulate.”
“I don’t think we have the same authority to regulate it as we would, for example, a public park.”
Lelack explained that the issue events at wineries on farmlands is separate from those at non-winery venues. There are several bills in the legislature to address the events issue, including one that would exempt wineries approved prior to the bill. He termed the legislative process, with amendments being added to bills, “a quickly moving target.”
Lelack  pointed out that the hearing officer’s decision on the Grossmanns’ winery included conditions which the county could address as needed under its code enforcement authority.
Although some neighbors may be concerned about events at the winery, Lelack emphasized the operation is an “outright permitted use. There’s no consideration for compatibility” (with neighboring uses).
“There’s no question that should code enforcement be an issue it’s going to be very, very difficult.” Lelack concluded.

Sunday, May 15, 2011

Winery approval marks a milestone in regional viticulture

            Although it will be a while before they’ll pop a cork on wines produced from grapes at their Terrebonne vineyard, Cindy and Roger Grossmann have a reason to celebrate. And the good news came on Friday the 13th .
            In a decision dated May 13 Deschutes County hearing officer Karen Green found that the Grossmann’s Faith Hope & Charity vineyard qualifies to establish an onsite winery on part of a 164 -acre parcel.
It would be the first approved for Deschutes County under a state statute allowing wineries associated with vineyards as an “outright use” on agricultural land zoned for Exclusive Farm Use, or EFU.
At issue in the decision was whether wine grapes already planted on the Grossmann’s farm in the Lower Bridge Way area met the statutory minimum requirement of 15 acres for a vineyard.
The Deschutes County planning staff had interpreted the law to require that grapes already have been produced to qualify.
However, Green wrote that, “I have found there is no requirement that the winery produce wine from grapes grown on site, but that the onsite vineyard must be maintained as a viable farm use on the subject property.”
Green also found the Grossmanns could meet a requirement that  revenue from  “incidental” goods and services, such as wedding and other events, not exceed 25 percent of those from wine sales, and that there is “direct access” by a road and easement that would not require mitigation to protect adjacent farm operations.
The proposed winery location already meets minimum setback requirements by a large margin, Green concluded.

View to proposed "barn" winery across vineyard
 at Faith Hope & Charity

Some opponents had claimed the winery would be a “pretext to create a lucrative wedding venue” Green noted. But she said that was unlikely given that the Grossmanns provided evidence of spending more than $1 million to develop their vineyard, including $375,000 for purchase and planting of vines and a drip irrigation system.
To monitor sales ratios, Green said the Grossmanns must submit an income statement to the Deschutes County Planning Division by April 15 each year to verify that not more than 25 percent of gross income is derived from sources other than wine sales.
Contracts for events such as weddings must also require that guests purchase a minimum 10 cases of wine.
The decision came five months after the Grossmann’s filed their application and followed a March 8 public hearing on the county planning staff’s report. At that hearing and in submitted comments some opponents of the winery argued that the winery and associated events would not be compatible with neighboring agricultural uses.
But Green found that, “the statutory standards applicable to wineries do not authorize the county to consider the proposed winery’s compatibility with surrounding land uses.”
She said those issues had been addressed by the legislature when it amended ORS 215.452, which authorized wineries as an accepted use on EFU land, to also allow events such as weddings.
Green also concurred with statements by the Grossmann’s attorney, Andrew Stamp, that lawmakers did not intend to require wineries produce wine only from grapes grown from their onsite or adjacent vineyards, “exclusively or at any particular time.” The legislature recognized the “apparent practice” in Oregon of acquiring grapes from other sources as their vineyards mature, she wrote.
The namesake "Three Sisters" from
Faith Hope & Charity Vineyard
The Grossmanns have a contract to purchase grapes from Monkey Face Vineyard near Smith Rock State Park . The wine will be made from those grapes for the Faith Hope & Charity label by Pallet Wine Company in Medford until their vineyard, planted in 2010, reaches production maturity—probably in three to five years. The also have a working relationship with Zerba winery in the Milton-Freewater area.
One opponent of the winery questioned whether the vineyard could produce grapes on a sustaining basis given climate and soil conditions. Green concluded that the 15 acre vineyard must remain in production for the winery to qualify as an outright use on the EFU property.
The Grossmanns have planted French-American hybrid varietal grapes similar to those which have successfully produced wine grapes for several years at Monkey Face, which is at a higher altitude. Monkey Face has also supplied some grapes used in wine made by Maragas Winery, which was approved in Jefferson County under a different standard than the Grossmann’s operation. As yet Maragas does not have 15 acres in vineyards.
French-American hybrids, such as Marechal Foch, Le Crescent, Frontenac and Leon Millot, have been found to thrive in colder climates such as the Northeast and Upper Midwest.
Other findings in the hearing officer’s decision included a requirement that food service be confined to that allowed for a “limited service restaurant.” The winery can only serve food prepared and pre-packaged in individual portions “completely enclosed in those packages.”
The decision said conditions related to the county’s approval of a guest ranch on part of the winery and vineyard parcel would remain in effect. A site plan for the property calls for the proposed winery be moved from a “barn” to another location on the 164 acres. The site would eventually include guest ranch cottages and other amenities.
Other requirements in Green’s findings included compliance with existing state liquor license rules; county plan review and building permits; adequate off-street parking; directional signage; and providing staff to control event traffic.
The Oregon Liquor Control Commission approved a liquor license for the winery in late April.

A look into the economics of Central Oregon viticulture

Papers filed in the application to Deschutes County to establish a winery associated with the existing Faith Hope & Charity vineyard in Terrebonne give a glimpse into the economics of viticulture.
In a March 22 memorandum, attorney Andrew Stamp representing the vineyard owners, estimated that a one-acre vineyard would yield approximately 3 tons of hybrid grapes. A single ton of grapes could produce 160 gallons of wine, or about 69.56 cases at 2.3 gallons per case.
By that math an acre of grapes could produce 208.68 cases, and a 15-acre vineyard which meets the minimum size for a commerical winery on land zoned for agriculture might yield 3,130 cases.
At a price of $25 per bottle, or $300 for a 12 bottle case, the 3,130 cases could result in gross sales of $939,000, according to Stamp’s calculations.
The numbers are important in the approval of the winery for Cindy and Roger Grossmann and their Faith Hope & Charity vineyard and winery. The hearing officer who approved their application found that no more than 25 percent of the winery’s gross sales could come from non-wine items and events, such as weddings.
Assuming the potential wine sales of $939,000, the winery would be allowed to gross $234,750 from other sources if the vineyard yielded three tons of grapes an acre, or 45 tons for 15 acres. If the yield were only half that, or 1.5 tons per acre, the allowed income would be $117,375 from incidental goods and services or events.
Stamp noted that arguments by winery opponents that weddings could be held every week were exaggerated. More likely, he wrote, the number would range from 10 to 20 annually.  Hearing officer Karen Green wrote she was “persuaded by this evidence”  that the winery could meet the limitation on gross income from events and other non-wine sales.

Sunday, May 8, 2011

Forest Serivce to consider environmental impacts of Bend water project

             
             Public comment on the City of Bend’s proposed $58 million water system upgrade is being solicited by the Deschutes National Forest as part of the federal agency’s required assessment of the project’s potential environmental impacts.
            The Bend-Ft. Rock District office said the process will consider comments and conduct surveys that will focus on the water project’s effects on fish and wildlife, sensitive plants, wetlands and other resources.
            The agency said it will accept comments through June 6 of this year and that a report on the project analysis is expected to be completed by Spring of 2012.  At that time comments on the proposed action would also be accepted.
The city is planning to replace its existing two surface water diversion  pipelines built in the 1920s and 1950s with a single 10-mile line that would follow Forest Road 4603 from a point of diversion in the Bridge-Tumalo Creek watershed.
The project would require removal of trees along a 500 foot distance within the national forest to reach the longest stretch that would follow FS 4603 and Skyliners Road. The line would cross Tumalo Creek twice from its origin to a new membrame treatment plant.
Any impacts must be reviewed by the Forest Service under the National Environmental Policy Act. The impetus for the new water project has been a requirement for the city to meet new federal clean water guidelines. And the city wants to rebuild the pipline concurrently with Forest Service plans for construction improvements on Skyliners Road scheduled to begin in 2012.
            Some business and civic leaders have questioned the cost of the system, which would be one of the most expensive in the city’s history.
            They have suggested that a system based more on groundwater wells would be more reliable, less costly and have fewer impacts on stream flows and  fish and wildlife habitat.
            A value engineering study conducted for the city by a Florida firm
concluded the water system should continue to rely on both surface and well withdrawals. However, under guidelines of city officials the firm did not consider an all-well system.
            The city has also signed contracts with the engineering firm HDR for design of the sytem and another firm for construction management.
            It’s unclear what effect the Forest Service review and recommendations would have on the city’s decision and schedule to proceed with its system upgrade.      
The district office is accepting comments by e-mail to comments-pacificnorthwest-deschutes-bend-frock@fs.fed.us. Or comments may be submitted by mail to: Bend Surface Water Improvement Project, Project manager, Rod Bonacker, PO Box 249, Sisters, OR  97759; Tel: 541-549-7729, Fax: 541-549-7746; e-mail: rbonacker@fs.fed.us.

Monday, May 2, 2011

Central Oregon wine growers thinking big

             An AVA for Central Oregon?
            The acronym might draw a quizzical “What’s an AVA?” response for many people. But to winegrowers and others who gathered recently at Faith Hope & Charity Vineyard it’s an important question.
Some are confident that  Central Oregon will one day be designated an American Viticultural Area, a prestigious recognition that would put it—for example--on a level with regional wine appellations such as Yamhill and Willamette AVAs in Oregon, and Columbia, Yakima and Walla Walla valleys in Washington.
AVAs are recognized by the federal Alcohol and Tobacco Tax and Trade Bureau after reviewing petitions from a wine region. Oregon now has 16 AVAs and Washington nine according to the non-profit Wine Institute trade group.
The AVA optimism may be a few years premature for the fledgling local viticulture industry. But members of the Winegrowers Association of Central Oregon, along with guests, were as upbeat over the future prospects as the recent weather—a rare warm day with a light breeze, puffy clouds and blue sky in this latecomer Spring.
            The snow-laden Three Sisters peaks for which the vineyard is named provided an appropriate backdrop for the 15 acres of grape vines that could be the  first in Deschutes County qualifying as a commercial vineyard. A few more weeks of sun and heat  would stimulate canopy growth in the vineyards and the crucial “bud break.”

Faith Hope & Charity vineyard with its
namesake peaks in the distance

            Featured on the program were Laura Cooper and Linda Donovan, a one-two combination of wine appreciation and winemaking knowledge. And both encouraged the winegrowers’ optimism over the future of the local effort.
            Cooper, a land use attorney, recently took time off from her position at the Ball Janik law firm to study at a London wine school and to visit vineyards and wineries  throughout Europe to enhance her skills.
            Donovan is a principal in Pallet, a Medford business that crushes grapes and makes wine for vineyards across the state. A graduate of the highly-respected enology program at the University of California at Davis, she is now making wine on contract to Faith Hope & Charity from grapes grown at Monkey Face Vineyard at Ranch at the Canyons near Smith Rock State Park.
            Cooper’s presentation covered the basics of recognizing characteristics of wine in the glass and on the palette—from color and clarity to the nose and taste, acids and tannins, and length of the finish.
            Although appreciating and recognizing wine attributes can be charted and quantified, “Winemaking is really an art,” Cooper emphasized.
            Acknowledging Donovan’s role as a contract winemaker, “it’s not unlike someone who has hired a surrogate to have their baby,” Cooper explained.


Standing, l-r, Linda Donovan, Laura Cooper,
Kerry Damon and Cindy Grossmann
 
            But the quality of the grapes is essential, she said.
            “You can make a bad wine out of good grapes, but you cannot make a good wine out of bad grapes.”
            Donovan focused on the winemaking process—from the harvest in the vineyard to the crush, fermentation, barrel racking and the continuing analysis of brix, or sugar content, and other factors as the juice gains unique attributes before bottling.
            At times the dialogue slipped into technical details—indigenous yeast profiles of individual vineyards; the intensity derived from “dead yeast” and the desired levels of malalactic fermentation.  
            But the give and take of questions to Cooper and Donovan amply demonstrated the higher knowledge level and serious intent of the regional winegrowers.
            At one point an association member observed, “this (the local industry)  has an AVA potential.”
            That enthusiasm found support  from Donovan, who recounted her recent learning curve with the American hybrids now being grown in Central Oregon.
            Both Donovan and Cooper said that American hybrids, rather than vitis vinifera grapes grown in warmer climates, will likely be the signature varietals of Central Oregon.
            Donovan acknowledged that as a Californian she was unfamiliar with the hybrids until receiving the contract shipment of grapes grown at Monkey Face Vineyard and purchased by Cindy and Roger Grossmann at Faith Hope & Charity.
            As the grapes started fermentation she called in her Medford colleagues to observe the difference in the process from more familiar vinifera grapes such as Pinot Noir.
            In particular, Donovan said, “Le Crescent is really, really unique. I think you guys are really going to be surprised.”
            Vineyard manager Kerry Damon of Monkey Face at Ranch at the Canyons also noted that Central Oregon grapes are gaining a reputation.   A red dessert wine, Beet Red, made from a blend of area grapes at Maragas Winery on Highway 97 in Jefferson County recently won a Silver Medal in the San Francisco Chronicle Wine Competition.

Participants take a break during recent
Central Oregon Winegrowers event

            Damon is known as a mentor to other winegrowers in Deschutes County, arriving in 2007 to refine and build on an existing vineyard started in 2004 at Ranch at the Canyons, a gated agricultural preserve community.
            Damon, and other regional winegrowers, recognize the climate challenges of growing wine grapes in Central Oregon, especially late and early frosts making for a shorter season.
            But they also say that mesoclimates, or the weather of an area as small as a few acres, mean certain varietals will thrive. Some growers, such as Doug Maragas of Maragas Winery and Vineyard near Monkey Face, are also experimenting with vinifera grapes including Syrah and Cabernet Sauvignon to see what might be successful.
Most growers, however, are concentrating on the hybrids, among them Frontenac, Leon Millot, Marquette and Marechal Foch in reds, and Vignole, Frontenac Gris and Le Crescent in whites.
Damon believes Marechal Foch will be the varietal that will see much success in Central Oregon. Maragas has already produced the varietal with grapes grown at Monkey Face.