Senior administration with the Regional District of Okanagan-Similkameen (RDOS) has recommended approval of a proposal to build a new restaurant at Phantom Creek Estates Winery that is scheduled to open in the spring of 2019.

The motion that will be presented to the RDOS board next Thursday asks that the Board authorize the application to operate a restaurant as a non-farm use at Phantom Creek Estate Winery, located at 4315 Black Sage Road near Oliver.

A check of the winery's website says a new winery facility is scheduled to open in the spring of 2019 on Black Sage Road. The property is home to dozens of hectares of grapes.

Photo Credit: Facebook Phantom Creek EstatesThe owners of Phantom Creek Estates Winery have applied to build a new restaurant at its facility when it opens next spring and has applied for a non-farm use exemption on agricutural land. A staff recommendation to the RDOS Board favours approving the application to the Agricultural Land Commission.

The staff report, prepared by chief administrative officer Robert Newell, said an application to the Agricultural Land Commission (ALC) has been lodged with the RDOS in order to allow for an “eating and drinking establishment” within the Agricultural Land Reserve (ALR).

In support of this proposal, the applicants have stated that “a fine dining winery restaurant at Phantom Creek Estates would support the winery and our sales and marketing objectives.

"We want to attract new, discerning guests to Phantom Creek with a destination restaurant in the South Okanagan. We firmly believe that food and wine go hand in hand, and are best enjoyed together.

“With this in mind, it is only natural to have a restaurant to best showcase our wines. A winery restaurant also provides a high margin sales channel that is integral to our overall business plan.”

The subject property is approximately 24 hectares  in area and is located on the east side of Black Sage Road approximately nine kilometres south of the Town of Oliver.

The surrounding pattern of development is generally characterized by similar agricultural lands in the ALR and under viticulture production.

Available RDOS records indicate the issuance of various building permits for winery related structures were issued between 2005 and 2017.

In 2011, the ALC initiated a Winery and Cidery Policy Review to determine the appropriateness of allowing wineries to sell other alcoholic beverages in a winery lounge, said Newell’s report.

The ALC “determined that the current regulatory regime for wineries located in the Agricultural Land Reserve is appropriate … [and] that wineries who seek to acquire a food primary license from the Liquor Control and Licensing Branch (LCLB) in order to offer additional alcohol products for sale must continue to submit a non-farm use application to the ALC.”

At a meeting five years ago, the Planning and Development Committee of the RDOS Board resolved that staff be directed to draft an amendment bylaw to the Okanagan Valley Electoral Area Zoning Bylaws in order to introduce a new definition of winery to allow for the sale of other made in B.C. alcoholic beverages.”

In considering this proposal, administration maintains many of its concerns regarding the approval of restaurants in the ALR, said Newell’s report.

“Namely, full-service restaurants potentially diminish the link between the agricultural operation and the retail outlet by allowing a restaurant to exist as an independent commercial entity,” says the report.

Photo Credit: Facebook Phantom Creek Estates

Additional concerns include the erosion of the agricultural land base due to larger structures and expanded parking; impacts of more people, traffic, noise and trespass on adjacent farm operations; complaints and conflicts with other types of agriculture that may not fit with the winery aesthetic; and pressure for other, non-farm related amenities … that such uses should be directed to the Town of Oliver as the commercial hub for the area, said the report.

“Nevertheless, administration also recognizes that the Board previously directed that the definition of a winery be amended to facilitate the development of restaurants within the ALR – subject to ALC approval – and without the need for subsequent rezoning applications to the RDOS,” said the report.

Administration also notes that the Electoral Area C’s Official Community Plan Bylaw  does speak to encouraging “the agricultural sector’s improvement and expansion by pursuing supportive land use policies … and encouraging secondary value added uses (provided they are compatible and incidental.”

Photo Credit: Facebook Phantom Creek Estates

Finally, the OCP Bylaw speaks to “maximizing productive farm activity and minimizing areas of development by clustering buildings, structures and related activities” and, in this instance, the applicant is proposing to cluster the restaurant within the winery building already under construction, said the report.

“For these reasons, administration is recommending that this proposal be authorized to proceed to the ALC in order that the commission can make a determination as to the suitability of this use in the ALR.

To view the staff report, click here and turn to Page 173.

For more on Phantom Creek Estates, click here.