The January 2017 “Guidance for Food Service at Wineries on Farmland under Oregon Senate Bill 841” issued by the Oregon Land Conservation and Development Commission and Oregon Liquor Commission with input from the Oregon Winegrowers Association, seeks to help answer questions that have arisen since the 2013 enactment of Senate Bill 841.

Prior to enactment of SB 841, food service at permitted use wineries on farm land was limited to “individually portioned prepackaged foods prepared from an approved source by a commercial processor.” Guidance at 2. Counties may no longer enforce that limited service restaurant restriction on wineries that qualify as permitted uses under current law. Guidance at 3. That said, restaurants are still not allowed.

Oregon’s land use system places a high priority on preservation of farmland for farm use, and state law identifies types of uses permitted outright on land with exclusive farm use zoning and uses that may be conditionally allowed on those lands. (See, for example, ORS 215.283.) SB 841 revised ORS 215.452 to provide production and vineyard size standards for wineries classified as permitted outright. Food service is allowed at these permitted wineries on both exclusive farm use land and mixed farm forest lands subject to statutory limitations.

Given that Oregon Liquor Control Commission Rules may require that food be available as part of the onsite consumption of wine, and the fact that tailored events such as wine-food pairings and winemaker dinners may promote winery success, the enhanced flexibility provided by SB 841 is welcome. Still, as the Guidance makes clear, food service may not become the predominant activity. The Guidance ends with a series of questions that may help a winery operation determine whether proposed food service is authorized at a permitted use winery. Among those questions are:
Continue Reading 2017 Food Service Guidance for Oregon Wineries

The interest in urban wineries is on the rise, with companies looking to take advantage of close proximity to customers, empty warehouse and industrial space, and access to city water and sewer.  However, hidden land use issues can present significant problems when pursuing this type of urban property, particularly within the City of Portland (City).

“Grandfathered” Uses

With the changing urban landscape (in-fill development, urban renewal areas, etc.), many older warehouses and industrial spaces are located in zones that now restrict commercial and industrial activities.  This means that although an industrial activity may have historically occupied the building, a new or changed industrial use may be prohibited or restricted under the City’s current land use regulations.  Even if the building is marketed as a “grandfathered” industrial space, that does not mean it has been approved as a legal nonconforming use or situation under the City’s code.  It is important to know whether the City has already issued a legal nonconforming determination for the industrial activities and, if not, to consider whether such a determination can be obtained prior to acquiring the property.  The City’s website provides a good explanation of the process and the review requirements
Continue Reading Hidden Land Use Issues with Urban Winery Properties

The following post was written by my colleagues Tom Woods, Parissa Ebrahimzadeh & Bao Vu

As part of the Northern California business community and as an advisor to business, we support the Napa and the surrounding Bay Area in getting homes and businesses back on their feet following the August 24, 2014 Napa Valley earthquake.

The earthquake that rocked Napa Valley and nearby regions left an estimated $1 billion in damages, according to a county news release. The McClatchy News Service recently observed the quake “upended more than wine barrels and mobile homes. It also was an unsettling reminder of how few Californians – homeowners and businesses alike – carry earthquake insurance.”

Sure, insurance agents will discuss earthquake insurance policies with business owners, but Napa Valley region had not experienced a quake of such magnitude since 1989. Thus, this rare but catastrophic risk was one for which the cost-benefit analysis dictated to many Californians that they should forgo the expensive form of insurance. Statistically, the shocking drop in homeowner earthquake insurance policies purchased over the last decade was dwarfed by the 29% drop in the number of California businesses that purchased policies over the same period. Reports are that only 10% of California businesses and residents carrying property insurance also carry earthquake insurance.

Where the wine and agriculture industry suffered $48 million worth of damage, and with over 120 businesses affected, the questions running through so many confused and disrupted lives include: “What do I do now? Did I need earthquake insurance, specifically? Am I covered? How do I perfect a claim if I am covered and where can I go for help?”Continue Reading Rebuilding: Dealing with or Without Earthquake Insurance

Stoel Rives’ 7th Annual Oregon Wine Law Seminar attracted nearly 100 wine industry professionals and covered several hot topics ranging from employment law, allergen and organic labeling regulations, growler enforcement and other legislative updates, and distribution agreements. We also caught up with Mark Freund, Managing Director, Silicon Valley Bank, Kevin O’Brien, Director –

Oregon Senate Bill 841 brings finality to the ongoing debate about the appropriate intensity of agri-tourism and other commercial events held at wineries on agricultural land.

Looking forward, wineries permitted under ORS 215.452 are allowed to engage in activities that are directly related to the sale and marketing of wine without local review. These types of activities include wine tastings, wine club activities, winery and vineyard tours, meetings or business activities with wine industry members or vendors, open houses, and similar activities (which appears to be a catch-all allowing for some flexibility). The legislation confronts the debate about on-site kitchens at wineries, making clear that kitchens are allowed under specified conditions.Continue Reading Oregon Senate Bill 841 Provides Some Certainty for Wineries but Leaves Some Wanting

Governor Kitzhaber signed the “Growler Bill” into law Thursday. The new law amends ORS chapter 471 and allows wineries, local groceries, and other retail licensees to sell wine to consumers in growlers. Wineries are increasing the use of kegs and the bill is touted by proponents as responding to changing trends and promoting

Sign up now to join us this Thursday, April 4 at the Allison Inn & Spa in Newberg, Oregon for the 6th Annual Oregon Wine Law Seminar. Topics will include federal and state requirements applicable to exporting overseas, export-related distribution agreements, employment law for wineries, status of foreign investments in the U.S. wine industry, trademarking