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The Wall Street Publication > Blog > U.S > Wineries face uncertainty as Santa Clara County proposes ag rezoning
U.S

Wineries face uncertainty as Santa Clara County proposes ag rezoning

Editorial Board Published August 22, 2025
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Wineries face uncertainty as Santa Clara County proposes ag rezoning
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Santa Clara County’s proposed zoning ordinance amendments throughout rural districts is inflicting concern among the many space’s wine producers about how the modifications would have an effect on their enterprise operations and backside strains.

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In response to the county, the proposed amendments are designed to assist farmers and ranchers entry undeveloped and actively farmed properties in unincorporated rural areas of Santa Clara County. These properties are being marketed for house improvement, which in flip has inflated land values.

The proposal seeks to mitigate this by updating unique agriculture, agricultural ranchlands, hillside and rural residential zones. The replace consists of 4 principal parts:

Substitute “local-serving” provisions with goal requirements
Simplify and standardize agricultural makes use of
Restrict makes use of within the unique agriculture zone to assist long-term agricultural viability
Undertake requirements for agricultural impacts

Alamitos Winery vineyard co-owner Shaun Coleman says he’s trying ahead to collaborating with county employees to make sure the principles are clear to small enterprise homeowners and accommodating of the challenges small wineries face regarding compliance procedures. He hopes the principles can be utilized constantly throughout operations of all sizes, from boutique wineries like his Almaden Valley vineyards to bigger, traditionally vital ones like J. Lohr Vineyards and Guglielmo Vineyard, the latter of which is celebrating 100 years in enterprise this 12 months.

“Our margins as wineries are often small, typically single-digit percentage net profits at best,” says Coleman. “Clear and fair regulations are essential to support our operations and preserve our ability to thrive.”

Given the austere future going through the whole wine trade, on account of altering client habits and a basic oversupply, he and others fear that with out clear grandfathering provisions, these modifications may restrict tastings, occasions and direct-to-consumer gross sales, all of that are important income streams for wineries.

“New zoning restrictions could exacerbate these pressures by imposing unforeseen costs or operational limits not accounted for in long-term business planning,” says Kim Engelhardt, president of the Wineries of Santa Clara Valley and co-owner of Lion Ranch Vineyard.

Zoning rule modifications that doubtlessly may value wineries unexpected will increase in permits or occasion charges, for instance, may drive them to lift wine costs.

Engelhardt says a letter has been despatched to the county asking them to think about a grandfather clause to guard current wineries.

Santa Clara Valley’s wine trade generates over $117.2 million yearly in tourism {dollars} and helps the county’s identification as California’s oldest premium wine-producing space.

“Our wineries provide a vital community service by preserving agricultural heritage, offering scenic landscapes and fostering local pride through award-winning wines recognized by Wine Enthusiast and Wine Spectator,” says Engelhardt.

Santa Clara County shouldn’t be alone in wrangling this ag land use concern, as San Benito County final 12 months tried to rezone and put restrictions on the subdivision of huge properties. Nevertheless, the proposal, seen as a risk to farmers, was rejected. A brand new Ag Zone committee is presently re-evaluating find out how to protect agricultural land in addition to land values.

The Santa Clara County Planning Fee is holding a particular assembly to debate the proposed zoning modifications on Aug. 28 at 6 p.m. within the Board of Supervisors’ Chambers, positioned within the County Authorities Heart, 70 W. Hedding St., San Jose. This assembly can be hybrid, providing each in-person and digital attendance choices. A digital assembly hyperlink can be out there within the agenda at http://bit.ly/4mPoHgh

The county has ready a draft Program Environmental Impression Report for the Rural Zoning Amendments and Agricultural Impression Threshold Mission, which is offered for evaluate at http://bit.ly/3UF15Pz

TAGGED:ClaraCountyFaceproposesrezoningSantauncertaintywineries
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