Marijuana farm next door to Yamhill County's prized vineyards sparks legal fight

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Some Yamhill County neighbors are fighting the start of a marijuana growing and processing operation in prime wine country. (Kristyna Wentz-Graff/The Oregonian/File photo)

The owners of a vineyard in coveted Yamhill County wine country have asked a judge to ban their neighbor from growing marijuana out of fear that the smell will waft over to their land and taint their prized grapes.

The Momtazi family, which runs the Momtazi Vineyard, has already lost one grape-buying customer who canceled an order because of the planned marijuana operation, according to a lawsuit filed in Yamhill County Circuit Court this week.

The Momtazis have grown grapes for 18 years and own about 580 acres along Muddy Valley Road southwest of McMinnville.

Joining them in the attempt to stop the marijuana-growing application are Harihara and Parvathy Mahesh, who bought about 19 acres in 2013 and are in the process of developing it into a small vineyard, according the lawsuit.

Richard Wagner, with the financial backing of his parents Steven and Mary Wagner of Southwest Portland, plans to grow half an acre to an acre of marijuana outdoors on nearly seven acres that they bought last December for $682,000, according to the suit. The property includes a home and barn.

Wagner doesn't need permission from the county to grow marijuana because the land is already zoned for farm use. But he's seeking county permission to process pot on the site -- including products such rosin, a hash oil made without solvents. The lawsuit says Wagner could process more than 33,000 pounds of marijuana from his operation and other growers.

The marijuana operation will produce “foul-smelling particles” that will migrate to the neighboring properties and could tarnish the grapes, the lawsuit claims.

“The odor is similar to that of skunk and is not acceptable in wine,” Moe Momtazi told the Yamhill County Board of Commissioners last week. “The impact on Momtazi Vineyard ... would certainly put the vines and wine at great risk.”

Momtazi pleaded with commissioners to reject Wagner's marijuana-processing application. The county planning director approved Wagner's application earlier this year, but commissioners have been asked to overturn that approval. They haven't made their decision yet.

Reached by phone Wednesday, Richard Wagner said he's following all rules and regulations and has tried to be an open communicator with his neighbors.

He said he’ll follow organic and sustainable growing practices, including avoiding pesticides. He'll also use a water-extraction process instead of solvent-based processes that have been responsible for past explosions and will minimize water use and runoff with a drip irrigation system, he said.

Although the smell will be apparent for a few weeks during harvest season, Wagner said the processing won’t emit foul-smelling particles and his operation won’t negatively affect nearby grape crops.

“They’re afraid, they’re very afraid,” Wagner said. “It’s all based on ignorance and fear. ... At the same time, I get it. I’m not lacking empathy with them.”

Wagner said he knows some of his neighbors moved to their rural land in an era when marijuana-growing wasn't legal.

“Back then, they didn’t see cannabis-growing as a potential neighbor,” he said.

During the presentation to Yamhill County commissioners, Wagner and his attorney said concerns that he’ll grow 8,000 pounds of marijuana a year and truck in much more for processing in his barn are overblown. Wagner said if all goes well, he hopes to yield 1,000 pounds from his fields in the first year.

But his neighbors remain skeptical.

“Any of these things that he’s telling us right now, to be frank with you guys, I don’t believe a bit of that,” Momtazi told the commissioners.

The Momtazi family bought its land in 1997 and converted the abandoned wheat farm into a vineyard by 1999. The family now produces wine under the label Maysara.

The vineyard carries a Demeter Biodynamic certification -- recognizing its organic farming method -- but the Momtazis are worried about losing the certification because of their new neighbors, according to the lawsuit. John Bridges, a Newberg attorney representing the Momtazi and the Mahesh families, didn't return a call from The Oregonian/OregonLive this week seeking elaboration.

Conflicts between marijuana growers and neighbors have occasionally flared, particularly since Oregonians voted to legalize marijuana for recreational use in 2014 and the state rolled out sales in phases starting in 2015.

Wagner's plot used to be horse and cow pasture. It's located on a verdant, sloping hillside with excellent sun exposure.

Although different people might debate the science, some have argued that environmental conditions around vineyards have affected grapes -- smoke from forest fires, for instance, tainting crops in other regions. Wine aficionados say they can taste undertones of eucalyptus in wines made from grapes grown next to groves of the trees in California’s Napa Valley or in Australia. Some value the eucalyptus notes.

Amy Margolis, a Portland attorney who represents clients in the cannabis industry, said just like any other farming operation, cannabis growers have heard some complaints about noise, light pollution or odor.

But, she said, “I literally have never heard of it affecting another crop. ...That seems to be an enormous stretch.”

Kevin Chambers, a member of the Oregon Wine board of directors, said he has friends who grow grapes in southern Oregon and were concerned about the effect of nearby marijuana-growing operations on their vineyards several years ago. But problems didn't materialize, he said, and the anxiety has eased.

Yet those pot operations, he said, weren’t processing marijuana and what he doesn’t know is the effect a processing facility could have on nearby grapes.

Chambers said other pungent smells have been a concern to Yamhill County grape growers. Last year, he said, a private company planned to set up an asphalt production plamt next to a gravel quarry in the county's Eola Hills area, raising alarms among growers that the odor of tar would taint their crops. The company eventually scrapped plans, he said.

The Oregon Wine Board has discussed the possibility of doing research into whether tar, hops, pot or whatever the smell affects grapes in this state, he said.

The Maheshes, who live next to Wagner’s property, said they worry the marijuana operation would jeopardize their privacy and security.

Wagner’s attorney assured the county commission that Wagner will follow all state safety regulations by installing cameras, motion sensors, an alarm and panic buttons to ward off any trespassers or thieves. But the Maheshes told the commission that the security cameras are pointed at the front of their property

"This is a life-changing event for us,” Parvathy Mahesh told the commission. “The cameras are pointing right at our vegetable garden, right at our farm. We will have no privacy. We basically can’t go out in front.”

The Maheshes have put their plans to start growing grapes on hold because of the marijuana smell they fear will overwhelm their crops.

“We effectively will have to stay indoors,” Harihara Mahesh said at the commission meeting. “And the reason we moved to this beautiful Yamhill County is to be outdoors, and be with nature and do our farming.”

-- Aimee Green

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