Boutique wineries to be exempt from permits

Sometime this year, boutique wineries in the unincorporated area of San Diego County will be able to have tasting rooms and retail sales by right.

A 4-0 San Diego County Board of Supervisors vote February 28, with Supervisor Ron Roberts absent at the time of the vote, directs county staff to return to the supervisors within 120 days with an ordinance which would exempt wineries producing no more than 12,000 gallons per year and on agriculturally-zoned land from discretionary permits.

“This is what we’ve been hoping for,” said Bill Schweitzer, the president of the Ramona Valley Vineyard Association. “We’re very happy. This is the day when perhaps we start the journey to catch up to Temecula and become a recognized wine region.”

Ramona is a Federally-recognized wine region; in January 2006 the US Taxation and Trade Bureau designated the Ramona Valley as an American Viticultural Area, meaning that if at least 85 percent of the grapes were grown in Ramona the bottle can be given a Ramona Valley appellation on the label. The American Viticulture Area designation was the 162nd in the nation since Federal law created the process in 1980 and was the third in Southern California, following the 1981 designation of San Pasqual Valley and the 1986 approval of the Temecula Valley appellation.

The Ramona Valley designation which recognizes the area’s distinct microclimate, elevation, and soil attributes covers an 89,000-acre area surrounding Ramona. At the time of the designation more than 60 of those acres were in production by 20 commercial vineyards, nine of whom operated bonded wineries including two with tasting rooms.

The designation also caused winery owners and community residents to express a desire of exploring options which would allow successful operation and expansion of small boutique wineries. Some counties in Northern California have eliminated burdensome regulations on small wineries, and in October the Board of Supervisors directed the county’s Chief Administrative Officer to work with the San Diego County Farm Bureau, the Ramona Valley Winery Association, and any other interested winery owners to investigate options which would allow small wineries to expand and operate by right without burdensome regulations such as a Major Use Permit. The original motion was amended to add the possibility of signage to identify local wine-producing areas, and the Chief Administrative Officer was directed to report back to the supervisors within 120 days.

The map identified wineries in Dulzura, Valley Center, Fallbrook, Bonsall, and Pala-Pauma as well as in the Ramona and Julian areas. Winery regulations in eight other California counties, including Riverside, were researched. A stakeholders group was formed and had two meetings with county Department of Planning and Land Use and Department of Agriculture, Weights and Measures staff to discuss options; while several planning groups were invited the only planning group representatives who attended were from the Ramona and Potrero planning groups. The Farm Bureau and the Ramona Valley Winery Association (the Ramona Valley Winery Association is separate from the Ramona Valley Vineyard Association, which includes grape growers who sell wine grapes but do not produce wine, although most if not all Ramona Valley Winery Association members are also in the Ramona Valley Vineyard Association) also attended the meetings.

The current county zoning ordinance defines two types of wineries. A Wholesale Limited Winery allows production of up to 7,500 gallons annually and is allowed by right in agricultural zones, but the zoning ordinance does not allow retail activities, tasting rooms, or special events. A Winery is allowed by right in industrial zones but is required to have a Major Use Permit in agricultural zones and in certain residential and special purpose zones. Tasting rooms, special events, and retail sales can be allowed under the conditions of a Major Use Permit.

The Ramona Valley Winery Association proposal, which was recommended by the supervisors with one minor exception regarding the allowable hours for marketing events, created four new categories of wineries in addition to the Wholesale Limited Winery category. Wholesale Limited Wineries would be allowed by right while the four new categories are based on volume. Boutique wineries produce no more than 12,000 gallons per year, small wineries produce up to 55,999 gallons annually, medium wineries produce under 100,000 gallons, and large wineries produce at least 100,000 gallons. Sales, tasting, and special events would be allowed by right at boutique wineries, with an Administrative Permit for small wineries, with a Minor Use Permit for medium wineries, and with a Major Use Permit for large wineries. One tasting room of up to 30 percent of the production facility’s area or 2,000 square feet (whichever is greater) is allowed for all wineries, and up to 30 percent of the tasting room area is allowed for non-wine retail sales.

Boutique wineries are not allowed to host special events, and they may hold up to four marketing events per year. The initial proposal was to allow marketing events between 10:00 a.m. to 10:00 p.m., but the supervisors amended that to end the events by sunset. Retail sales are allowed seven days a week between 10:00 a.m. and sunset; 75 percent of the wines sold must be from San Diego County grapes and 35 percent of the wine must be from the winery operating the tasting room, although there is an exemption for new wineries and the Department of Agriculture, Weights and Measures can suspend that requirement. Pre-packaged food can be sold and consumed, and food service is allowed if catered or from a facility approved by the county’s Department of Environmental Health. No bus or caravan tours are allowed for boutique wineries, and outdoor eating areas are limited to five tables and no more than ten people. No amplified sound is allowed, and chip seal or alternative material is required for access and parking areas.

DPLU staff provided two alternatives, one which would require a ministerial permit for tasting rooms and retail sales for the smallest wineries and one which would require an Administrative Permit.

While the supervisors approved the Ramona Valley Winery Association option other than for the closing hours of marketing events, the ordinance to be returned to the supervisors covers only boutique wineries. “They didn’t deal with the larger wineries yet,” said Eric Larson, the executive director of the San Diego County Farm Bureau. “They just wanted to get the boutique ones taken care of.”

The supervisors’ decision was welcomed by the Farm Bureau. “We will generally support anything that makes it easier for a farmer to do well,” Larson said.

“You need to get the farmer in direct contact with the retail customer,” Larson said. “The Major Use Permit was an impediment to that happening.”

The reduction in marketing event hours was not of concern to the growers. “They think people coming to tasting rooms are going to do it during daylight hours anyway,” Larson said. “It was not an issue at all.”

With the exception of Larson, all of the public speakers both for and against the proposal are Ramona residents. “We need to sell our wine,” said Carolyn Harris of Chupa Rosa Vineyards. “If we all tried to drink it ourselves that wouldn’t be real productive.”

Chupa Rosa Vineyards has one acre of zinfindel in production and is planting one acre of brumello. “Under our current zoning we cannot sell our wines other than wholesale,” Harris said. “Right now a Major Use Permit is a no go for most of these little tiny wineries.”

Opponents cited the lack of public notice for by-right operation. “A by-right issue without any notification of neighbors, I think, is gross negligence on the county’s part,” said Carol Angus. “None of the safety issues were addressed.”

Angus noted that Ramona has numerous private roads and several gated communities. She added that visitors would be given private gate information. “It’s just setting it up for a real non-neighborhood community,” she said.

Angus also noted the cumulative effect of visitors tasting wine at multiple locations. “If they’re not drunk, they’re at least impaired,” she said.

Angus noted that State Route 67, which runs from El Cajon to Ramona, is one of the county’s most dangerous roads. “I think this will only make that situation worse,” she said.

“We have kids walking on our roads,” Angus said. “We don’t have sidewalks or pathways along our roads.”

Angus also referred to “flag lots” in which neighbors share a common driveway and noted that many of those driveways are narrow. “I just think it’s something that needs some sort of review,” she said.

“Our view is that this type of thing needs to have a complete and thorough impact study that covers all areas of safety and neighborhoods,” said Steve Pelzer. “We have to really take a good hard look at the ultimate implications and the ultimate impact on a community that we all very much enjoy.”

Pelzer explained that a Major Use Permit allows for appropriate public input and impact studies. “This particular issue has really not had an opportunity to be vented by all parties and all concerned,” he said. “It’s only when we have the facts and we really understand that we can make an informed decision for the good of the community and the good of the people.”

Pelzer noted that wineries are different from each other. “There are so many unique potential outcomes,” he said. “That’s why you do impact studies.”

Vivian Osborn joined Angus and Pelzer in the comments opposing the Ramona Valley Winery Association proposal. “The small boutique wineries are asking for an exemption and an amendment to the existing ordinance that other wineries have had to follow,” she said. “I object to that. I believe that they should have the same kind of rules that any other wineries have regarding the use of allowable business in a residential neighborhood.”

Harris noted that boutique wineries will help maintain Ramona’s rural character. “It’s the right thing to do for our area,” she said.

Schweitzer’s six-acre Paccielo Vineyard sells sangiovese and cabernet sauvignon grapes to local wineries but does not produce wine itself. “Every little bit of publicity helps,” he said.

Tammy Rimes and her husband own Hacienda de las Rosas Winery and have just over one acre of cabernet sauvignon and sauvignon blanc in production. “It was a good day for us,” she said. “The supervisors were very supportive, so that was good. They sort of understood the dilemma we were in.”

This year is the first of production for Hacienda de las Rosas Winery. “To me it’s building our dream,” Rimes said.

“We’re just another agribusiness,” Rimes said. “I don’t want to be treated better. I just want to be treated the same.”

Michael Kopp of Kohill Winery grows various varietals on 2.3 acres. He notes that no additional impact will occur by the presence of a tasting room. “We already can have a winery; we can have a vineyard by right,” he said.

“We all hope it will develop the wine industry in San Diego,” Kopp said of the ordinance.

Kopp noted that suitable acreage in the county for grapes is difficult to obtain. “The large wineries probably are not even considering San Diego County,” he said. “Until we have wineries within San Diego County we’re not going to attract some of the bigger wineries.”

Harris noted that the February 28 decision was the second of three steps, following the October direction and to be followed by the actual ordinance. “If this passes in June we’ll have a chance to introduce our wines,” she said.

“A lot of people are really jazzed about it,” Harris said.