A town that stymied winery growth now owes more than $49 million to wine operators

Location of Old Mission Peninsula
in Michigan (Wikipedia map)

Long known for its cherry orchards and scenic bay, Old Mission Peninsula, Michigan, is a winery destination with a contentious history between winery owners and residents. "On one side: wineries seeking alternative revenue streams," reports Jim Barrett of The Wall Street Journal. "On the other: farmers and homeowners who fear rowdy weddings and brides gone wild will shatter their agricultural enclave."

Years of feuding over development restrictions ended in winery operators suing the town, and this summer "a federal judge in Kalamazoo ordered the tiny locale (pop. 6,000) to pay the wineries $49.3 million in lost revenue over zoning ordinances the court found unconstitutional and in violation of Michigan law," Barrett writes. 

While town leaders appealed the massive judgment, Town Supervisor Maura Sanders asked officials to consider selling parts of the town to raise funds. Barrett explains, "She wants to appraise properties like public parks (including two with beaches), a historic 1870 lighthouse and vacant lots for potential sale. She has floated ending maintenance of the local cemetery and closing the township hall."

Joseph Infante, a lawyer for the 11 winery owners, "called the talk of selling off local jewels 'a P.R. stunt to paint the wineries in a bad light,'" Barrett reports. "One frustrated resident summed up his opinion of town leaders on a roadside sign: '$49 MIL. RESIGN.'"

Bowers Harbor Vineyards in located on the Peninsula,
but it does not offer private events. (Bowers Harbor photo)

The ire began with town requirements that curtailed winery development. Residents and town officials worked to prevent winery growth by designing "intricate rules, including tying guest counts to grape purchases and dictating which music genres could grace vineyards," Barrett explains. "Peninsula producers say myriad restrictions kept them from establishing the vibrant tourism they observed in other wine destinations."

Wine owners tired of rules and infighting filed suit in 2020. "As the lawsuit continued, the township repealed certain ordinances, and the wineries now hold more events without seeking government approval each time, though they remain cautious about larger activities," Barrett reports.

Some townspeople don't believe the winery owners will push to collect. "Some local leaders expressed confidence they would win on appeal — or that the wineries won’t actually force the town to pony up," Barrett writes. "The wine operators have said they could be flexible on the payout and are waiting for a sense of what the town’s insurers will pay before proceeding."