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APAC at the BOS
APAC at the BOS
Bill Hocker | Dec 8, 2015 on: APAC
ABC evening News: Napa Wineries Upset over Proposal to Regulate Growth
NVR 12/8/15: Supervisors tackle winery regulations
BOS 12/8/15: Hearing video
APAC documents: Under Item 9D here
The County's APAC Recommendation powerpoint
The first hearing by the Board of Supervisors in consideration of the APAC recommendations was long (5.5 hours) and had a bit of the theatrical air that we have seen in other major land use deliberations over the last 2 years. There were 73 public speakers. Most were workers in the wine and hospitality industries who expressed a common concern that they loved their jobs and that the new regulations represented in the APAC recommendations might put them out of work. Where did they get that idea? Several worked at either Caymus or Sattui wineries, and the owners of each were there as well to make their concerns known. Chuck Wagner, founder of Caymus, made the point that regulations are strangling winemakers, that the issue of winery regulation was too important to be made by the Supervisors and that an initiative to shut down winery regulation should be taken to the voters. I sensed that the County's $1 million fine for exceeding his use permit has left its mark. Dario Sattui, whose Castello di Amorosa has set the standard for the Napafication of the valley, was equally concerned about squeezing the life blood out of the industry and the need for tourism to allow the wine industry to survive. Oddly he concluded by saying that population growth was the problem to be solved. I assume he wasn't talking about the tourist or worker populations his wineries bring into the valley.
Several talking points seemed evident in many of the 3 minute statements.
Talking point #1: No new regulations
The concern that APAC inspired regulations might lead to job losses and the strangulation of the wine industry is false. The principal "regulation" is an annual self-certification by the principal officer of each winery specifying wine gallonage produced, compliance with the 75% Napa wine requirement, and compliance with all use permit conditions.
As we have found, there are an unknown number of wineries (based on some audits perhaps as high as 40%) that have been out of compliance with their permits. Capacity and visitation when exceeded are also accompanied by employee hiring that might not otherwise take place. Were wineries really required to operate within their use permits, that is obey the law, there might in theory be threats to jobs. Given the county's recognize and allow permissiveness that threat is very low. In reality at the worst it would be it might mean a change in employers.
As Supervisor Calldwell finally pointed out late in the day, even given the stringent regulations now in place, 29 new wineries are currently in for use permits in the planning department. There are 24 winery expansions. They represent 2.9 mil gallons of new capacity. They represent 675,000 new visitor slots. He might also have mentioned that there are perhaps 70 new or expanding wineries that have already been approved but not yet built , representing several million gallons of added capacity and a million new visitor slots. And he might have mentioned the almost 2000 hotel rooms and the millions of sf of commercial space in the planning pipelines throughout the county. All of these projects will need workers with hospitality or winery experience. None, I would expect, will abandon their projects because they are now required to assert that they comply with their use permits.
APAC is not about to affect the wine and tourism industries as they exist now. It will probably have little impact on how those industries will develop in the next decade. It is about how this place will develop beyond that.
Talking point #2: the problem is traffic, affordable housing, water
"The real problems in the county are traffic, affordable housing and water" not the winery proliferation. This refrain was first articulated by the Napa Valley Vintners in their "Our Napa" push, which came on the inglorious heels of their refusal to accept APAC recommendations as long as they applied to existing wineries, i.e themselves. True, the problems do need to and hopefully will be addressed in a wider development context than winery regulation, but the talking point tries to deflect attention from the very real contribution that winery tourism does make toward traffic, lack of affordable housing, and water consumption. The increase in winery tourism venues and the effort that each new venue will make to attract its own clientele are driving the increase in tourism numbers which then require more tourism development beyond the wineries.There are 1.6 million new tourist slots at wineries about to be created in the next few years. It is not just a question of shifting around the existing tourist population to fill them. My own email to the BOS before this meeting concerned this issue.
The droned corollary to this talking point is the 17% figure that is used to describe the wineries' contribution to traffic in the valley, from the Napa County Travel Behavior Study (page 34 here). One could argue that 17% is not inconsequential. Every 6th car stuck in traffic with you has been to a winery (every 3rd car on the weekend when winery traffic is 34% of the total.) But also, considering the wineries in isolation from the other tourism venues, the hotels and restaurants and other tourist attractions, that they spawn is hardly an honest analysis of the traffic impacts wineries create.
Talking point #3: 85% of the population supports the wine industry
The third talking point was based on a telephone survey of 399 people done by the clubby and internet-shy Napa Valley Winegrowers. "85% of the people of Napa County support the wine industry." 89% liked outdoor concerts, 89% liked pickup & tasting weekends (what are those?), 87 percent liked winemaker dinners (again what are those?), 84 percent liked weddings. It seems unlikely that residents living near wineries were interviewed. Those that were interviewed seemed to know the jargon of winery experiences. Forgive me for being skeptical; these percentages are in line with political elections in dictatorships. (As with JD Powers awards, I am always a bit skeptical of survey results that support the self interest of the clients that paid for them.)
This survey might presage the intent of Mr. Wagner and vintner Clark Swanson, who spoke toward the end, to back an initiative to do away with regulation of the wine industry. The mustering of an army of winery workers to support the task has been proven. Several people labeled the community groups, whose concern over the continuing development of the county brought about the creation of APAC, as winery haters a sure line of bogus demonizing in a political campaign.
The last two hours
After 3.5 hours of public testimony, the Supervisors made brief statements. Sup Dillon: purpose today is to give direction to staff. Sup. Luce setting an ominous tone: visitation is oxygen to the organism that is the Napa Valley. Sup. Pedroza: negotiate from an interest base (as in financial interest?) not a position base (as in good for the future of the county?). This is a $13 billion industry - we need to be careful. Sup. Wagenknecht: small wineries need support. Sup. Caldwell: wine prices are high because this is an exceptional place to do business.
As Supervisors then ticked off support or opposition to the individual recommendations, the whole proceeding darkened for those of us who felt that less development is a better way to protect the rural character of the county than continued development. There seemed a consensus that the Supervisors only wished to consider the APAC recommendations and not the more protective Planning Commission additions. The proposal X grid was not supported by Pedroza or Luce. No estate grape requirement for the small winery definition. New regs should only apply to new wineries, not modifications. The definition of ag in AG/LU-2 is to remain (An def. of ag working group?). Prop X, the definition of ag, hold and haul, outdoor areas and caves were all briefly batted around with Chair Dillon, time running out, indicating her hope that staff had enough direction to come up with some suggestions by Jan 5th. She seemed anxious not to draw out the process.
The swell of resistance from the Supervisors toward even the modest reforms proposed by APAC cast a pall at the end of a tiring day. The sheer mass of money behind the changes of 2008 and 2010 that have led to such concern from impacted residents, that $13 billion that Sup. Pedroza wants to be so careful about, for the first time in this process seemed to begin to make itself felt.
Both sides in this campaign claim to want the same thing: a healthy wine industry that supports the rural, agricultural character of the place that we all love. Some feel that the expansion of the tourism industry is the way to do that. Others feel that the tourism will eventually corrupt and consume the agriculture and that protections are needed. The expansionists have the money to be made as a motivation and the money to spend to get what they want. The protectionists have only the interest in the preservation of a place and a quality of life that they love, and a hope that their government supports those interests. That support seemed a little less likely late Tuesday afternoon.
ABC evening News: Napa Wineries Upset over Proposal to Regulate Growth
NVR 12/8/15: Supervisors tackle winery regulations
BOS 12/8/15: Hearing video
APAC documents: Under Item 9D here
The County's APAC Recommendation powerpoint
The first hearing by the Board of Supervisors in consideration of the APAC recommendations was long (5.5 hours) and had a bit of the theatrical air that we have seen in other major land use deliberations over the last 2 years. There were 73 public speakers. Most were workers in the wine and hospitality industries who expressed a common concern that they loved their jobs and that the new regulations represented in the APAC recommendations might put them out of work. Where did they get that idea? Several worked at either Caymus or Sattui wineries, and the owners of each were there as well to make their concerns known. Chuck Wagner, founder of Caymus, made the point that regulations are strangling winemakers, that the issue of winery regulation was too important to be made by the Supervisors and that an initiative to shut down winery regulation should be taken to the voters. I sensed that the County's $1 million fine for exceeding his use permit has left its mark. Dario Sattui, whose Castello di Amorosa has set the standard for the Napafication of the valley, was equally concerned about squeezing the life blood out of the industry and the need for tourism to allow the wine industry to survive. Oddly he concluded by saying that population growth was the problem to be solved. I assume he wasn't talking about the tourist or worker populations his wineries bring into the valley.
Several talking points seemed evident in many of the 3 minute statements.
Talking point #1: No new regulations
The concern that APAC inspired regulations might lead to job losses and the strangulation of the wine industry is false. The principal "regulation" is an annual self-certification by the principal officer of each winery specifying wine gallonage produced, compliance with the 75% Napa wine requirement, and compliance with all use permit conditions.
As we have found, there are an unknown number of wineries (based on some audits perhaps as high as 40%) that have been out of compliance with their permits. Capacity and visitation when exceeded are also accompanied by employee hiring that might not otherwise take place. Were wineries really required to operate within their use permits, that is obey the law, there might in theory be threats to jobs. Given the county's recognize and allow permissiveness that threat is very low. In reality at the worst it would be it might mean a change in employers.
As Supervisor Calldwell finally pointed out late in the day, even given the stringent regulations now in place, 29 new wineries are currently in for use permits in the planning department. There are 24 winery expansions. They represent 2.9 mil gallons of new capacity. They represent 675,000 new visitor slots. He might also have mentioned that there are perhaps 70 new or expanding wineries that have already been approved but not yet built , representing several million gallons of added capacity and a million new visitor slots. And he might have mentioned the almost 2000 hotel rooms and the millions of sf of commercial space in the planning pipelines throughout the county. All of these projects will need workers with hospitality or winery experience. None, I would expect, will abandon their projects because they are now required to assert that they comply with their use permits.
APAC is not about to affect the wine and tourism industries as they exist now. It will probably have little impact on how those industries will develop in the next decade. It is about how this place will develop beyond that.
Talking point #2: the problem is traffic, affordable housing, water
"The real problems in the county are traffic, affordable housing and water" not the winery proliferation. This refrain was first articulated by the Napa Valley Vintners in their "Our Napa" push, which came on the inglorious heels of their refusal to accept APAC recommendations as long as they applied to existing wineries, i.e themselves. True, the problems do need to and hopefully will be addressed in a wider development context than winery regulation, but the talking point tries to deflect attention from the very real contribution that winery tourism does make toward traffic, lack of affordable housing, and water consumption. The increase in winery tourism venues and the effort that each new venue will make to attract its own clientele are driving the increase in tourism numbers which then require more tourism development beyond the wineries.There are 1.6 million new tourist slots at wineries about to be created in the next few years. It is not just a question of shifting around the existing tourist population to fill them. My own email to the BOS before this meeting concerned this issue.
The droned corollary to this talking point is the 17% figure that is used to describe the wineries' contribution to traffic in the valley, from the Napa County Travel Behavior Study (page 34 here). One could argue that 17% is not inconsequential. Every 6th car stuck in traffic with you has been to a winery (every 3rd car on the weekend when winery traffic is 34% of the total.) But also, considering the wineries in isolation from the other tourism venues, the hotels and restaurants and other tourist attractions, that they spawn is hardly an honest analysis of the traffic impacts wineries create.
Talking point #3: 85% of the population supports the wine industry
The third talking point was based on a telephone survey of 399 people done by the clubby and internet-shy Napa Valley Winegrowers. "85% of the people of Napa County support the wine industry." 89% liked outdoor concerts, 89% liked pickup & tasting weekends (what are those?), 87 percent liked winemaker dinners (again what are those?), 84 percent liked weddings. It seems unlikely that residents living near wineries were interviewed. Those that were interviewed seemed to know the jargon of winery experiences. Forgive me for being skeptical; these percentages are in line with political elections in dictatorships. (As with JD Powers awards, I am always a bit skeptical of survey results that support the self interest of the clients that paid for them.)
This survey might presage the intent of Mr. Wagner and vintner Clark Swanson, who spoke toward the end, to back an initiative to do away with regulation of the wine industry. The mustering of an army of winery workers to support the task has been proven. Several people labeled the community groups, whose concern over the continuing development of the county brought about the creation of APAC, as winery haters a sure line of bogus demonizing in a political campaign.
The last two hours
After 3.5 hours of public testimony, the Supervisors made brief statements. Sup Dillon: purpose today is to give direction to staff. Sup. Luce setting an ominous tone: visitation is oxygen to the organism that is the Napa Valley. Sup. Pedroza: negotiate from an interest base (as in financial interest?) not a position base (as in good for the future of the county?). This is a $13 billion industry - we need to be careful. Sup. Wagenknecht: small wineries need support. Sup. Caldwell: wine prices are high because this is an exceptional place to do business.
As Supervisors then ticked off support or opposition to the individual recommendations, the whole proceeding darkened for those of us who felt that less development is a better way to protect the rural character of the county than continued development. There seemed a consensus that the Supervisors only wished to consider the APAC recommendations and not the more protective Planning Commission additions. The proposal X grid was not supported by Pedroza or Luce. No estate grape requirement for the small winery definition. New regs should only apply to new wineries, not modifications. The definition of ag in AG/LU-2 is to remain (An def. of ag working group?). Prop X, the definition of ag, hold and haul, outdoor areas and caves were all briefly batted around with Chair Dillon, time running out, indicating her hope that staff had enough direction to come up with some suggestions by Jan 5th. She seemed anxious not to draw out the process.
The swell of resistance from the Supervisors toward even the modest reforms proposed by APAC cast a pall at the end of a tiring day. The sheer mass of money behind the changes of 2008 and 2010 that have led to such concern from impacted residents, that $13 billion that Sup. Pedroza wants to be so careful about, for the first time in this process seemed to begin to make itself felt.
Both sides in this campaign claim to want the same thing: a healthy wine industry that supports the rural, agricultural character of the place that we all love. Some feel that the expansion of the tourism industry is the way to do that. Others feel that the tourism will eventually corrupt and consume the agriculture and that protections are needed. The expansionists have the money to be made as a motivation and the money to spend to get what they want. The protectionists have only the interest in the preservation of a place and a quality of life that they love, and a hope that their government supports those interests. That support seemed a little less likely late Tuesday afternoon.