A multi-million-dollar luxury winery under construction in the South Okanagan has been dealt a blow after the Agricultural Land Commission denied an application for a fine dining restaurant and large banquet facility.
The massive 78,000-square-foot winery on the Black Sage Bench near Oliver, B.C., opened this summer to guests by appointment only and will fully open to the public in 2020.
Proprietor Richter Bai invested $100 million to build the mega-winery and acquire six estate vineyards, including the established Sundial Vineyard.
Phantom Creek’s first vintage was 2016.
What has been described as the showpiece of the South Okanagan may now be forced to open without a stand-alone restaurant and banquet hall.
In a decision dated Oct.17, the Okanagan panel of the Agricultural Land Commission shot down both applications for non-farm use of the Agricultural Land Reserve (ALR).
While the decision noted the fine dining restaurant would be located on the third floor of a new alcohol production facility, having no additional impact on agricultural land, the sheer size and scale of the proposal is not in line with ALR regulations.
“The addition of a restaurant, combined with the other anticipated value-added services on the Property, would extend beyond the intent of providing farmers with value-added services which are secondary to the farming operation,” the decision stated.
The ALC panel noted the scope of the entire project includes a large alcohol production facility, an indoor and outdoor food and beverage service lounge and a retail sales area on the property.
“The primary purpose of ALR land is for agricultural use,” it said in rejecting the application.
As for the proposed banquet facility, which would include three separate banquet rooms, one VIP lounge and three patio spaces, the ALC ruled that the commercial venture would trump farming operations on the property.
“The Panel finds that the presence of a permanent stand-alone banquet facility would result in the farm operation becoming ancillary to non-farm uses on the Property,” the decision said.
“In addition, the Panel finds that the potential cumulative impact of the additional guests, traffic and noise associated with hosting large events may cause conflict with neighbouring residences and agricultural users in the area.”
When reached for comment, Phantom Creek Estates said in a statement that it will still be able to serve food in its lounges.
“Despite not getting everything we had hoped for from the Agricultural Land Commission (ALC), the ruling will allow us to open on time, serve food and wine, host wine tastings in the hospitality building and barrel room and host a limited number of special events each month,” the winery said.
Phantom Creek Estates is on schedule to open in April 2020.
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