There are no shortage of people who are drawn to the lore and romance of starting their own winery, but too often, people going into the wine business abandon the sound business principals they relied upon in building their initial success.
Wine is more than a lifestyle. It is a business. If you have decided that growing grapes and producing wine is for you, you need to create a due diligence plan before you purchase your soon-to-be vineyard. Broadly speaking, there are generally two things to consider: (1) what you can physically do with your land, and (2) what the government will allow you to do with your land. Physical Aspects. Grapes are a crop. Before you purchase, you need to understand whether the land you want to acquire is capable of producing the crop you desire. This generally involves working with a qualified viticulturalist or other expert to investigate (i) the climate (the micro and macro climates, and what grapes can be grown in your particular climate), (ii) the soil and topography (including the presence of various chemicals (good and bad) and toxins and other substances which affect your ability to produce the quantity and quality of grapes desired), and (iii) water (and water rights which affect your ability to grow grapes). Your satisfaction with the climate, the soil and the water on the subject property should all be conditions to your obligation to continue with the purchase. Land Use/Governmental Approvals. It is one thing to say your property can grow grapes and produce wine. It is another thing to say that the government will let you do these things. This is where land use comes into play. Land use rules stem from all branches of the government (federal, state, and local) and can affect what you may do with your land. Is your land sloped? If so, you may need to obtain a special permit before you may plant. Are you planning on removing any trees? There may be rules against this (and there may be endangered species living in the trees or relying habitat created by the trees). Want to have a tasting room open to the public without an appointment? Not in Napa County. Want to open your winery to public events and weddings? Not in Napa County. These various land use issues, many of which are simply not intuitive, need to be researched before your inspection contingency is removed. Simply put, you need to know what you are buying and what you can physically and legally do with your property before you close.
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blogHi. I'm Stephen Flynn. Attorney and founder of the Law Offices of Stephen M. Flynn. This is my blog. Enjoy! Archives
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