Fox Hill Vineyard Tasting Room Proposal Faces Legal Hurdles in Chatham
Public hearing set for January 22 on application that raises questions about state licensing and zoning
CHATHAM NY — A public hearing is scheduled for tomorrow, January 22, on Fox Hill Vineyard’s application to operate a wine tasting room on property located in the town’s RL-2 zoning district. The application has drawn opposition from residents who argue the proposal does not comply with New York State farm winery licensing requirements or local zoning law.
The property in question was purchased as a residential home and is located in the RL-2 (Rural Land 2) zoning district. The property was zoned RL-2 at the time of purchase, meaning the applicants were on constructive notice of all applicable zoning restrictions when they acquired it. After acquiring the property, the applicants planted grapevines with the stated intention of eventually producing wine. However, the applicants have acknowledged that Fox Hill Vineyard does not currently produce grapes in sufficient quantity to manufacture wine at the minimum volumes required for licensure as a farm winery under New York State law. Despite this, the applicants are seeking approval to operate a commercial tasting room serving alcohol to the public.
Wine tasting rooms are not listed among the permitted uses or special permit uses for the RL-2 district under the Town of Chatham Zoning Law, Chapter 180. The stated purpose of the Town’s zoning law, as set forth in Chapter 180, § 180-1, is “to preserve and protect, for the benefit of the town as a whole, the basically rural-agricultural character of the Town.”
Under New York law, the authority to conduct wine tastings is granted exclusively to licensed wineries and farm wineries, pursuant to N.Y. Alcoholic Beverage Control Law §§ 76(4) and 76-a(2)(e). Without a valid license, an establishment has no legal authority to conduct tastings or engage in retail alcohol sales. The New York Alcoholic Beverage Control Law establishes several specific requirements that must be satisfied before an establishment may operate as a farm winery.
First, N.Y. Alcoholic Beverage Control Law § 76-a(9)(b) mandates that any person licensed as a farm winery “shall manufacture at least fifty gallons of wine, cider, and mead per year.” This 50-gallon minimum is equivalent to approximately 250 bottles or 21 cases annually. This is not an aspirational goal but a mandatory prerequisite for licensure. According to the New York State Liquor Authority’s official guidance, as stated in the SLA’s Winery Quick Reference: “You cannot rely on a contract manufacturer to produce the annual production minimum for you.” The production must occur at the licensed facility itself. Currently, with 400 vines the Williams produce less than 160 bottles. None of the wine is produced on site.
Second, N.Y. Alcoholic Beverage Control Law § 76-a(5)(a) provides that “no licensed farm winery shall manufacture or sell any wine not produced exclusively from grapes or other fruits or agricultural products grown or produced in New York state.” The SLA interprets this provision to require that farm wineries use at least 75 percent New York State-grown grapes or fruits in their wine production.
Third, the New York State Liquor Authority requires that a farm winery be located on a farm. As the SLA’s Winery Quick Reference states, “A farm winery must be located on a farm.” A residential property with grapevines does not necessarily constitute a “farm” within the meaning of the licensing requirements, particularly where no wine is actually being manufactured.
Because a wine tasting room is not a permitted use in the RL-2 district, approval of the application would require a use variance. New York Town Law § 267-b(2)(b) establishes stringent requirements for the grant of a use variance. The statute provides that “no such use variance shall be granted by a board of appeals without a showing by the applicant that applicable zoning regulations and restrictions have caused unnecessary hardship.”
To prove unnecessary hardship, an applicant must demonstrate all four of the following elements, as set forth in N.Y. Town Law § 267-b(2)(b)(1)-(4). The applicant must show they “cannot realize a reasonable return” from any permitted use, “provided that lack of return is substantial as demonstrated by competent financial evidence.” The subject property has value for its permitted residential use, as well as for agricultural uses including grape cultivation. A preference for a more profitable commercial use does not establish inability to realize a reasonable return. The purpose of a use variance is not to remedy poor business decisions such as paying too much for a piece of property or to enable owners to make more money than they could from permitted uses.
The applicant must also show that the alleged hardship is “unique” to the property and “does not apply to a substantial portion of the district or neighborhood.” Every property owner in the RL-2 district faces the same restriction against commercial retail uses. An applicant cannot establish uniqueness merely by asserting that they wish to pursue a use that is not permitted.
Additionally, the applicant must demonstrate that the requested use variance “will not alter the essential character of the neighborhood.” The RL-2 district is characterized by single-family residences, agricultural uses, and rural tranquility. A commercial tasting room serving alcohol to the public would generate commercial traffic, noise, parking demands, and activity patterns inconsistent with the neighborhood’s residential character. Patrons arriving and departing—including those who have consumed alcohol—would create safety hazards on rural roads designed for residential use.
Finally, the applicant must show that the alleged hardship “has not been self-created.” The applicants purchased the property as a residential home, not as a commercial vineyard or winery. The property was zoned RL-2 when they acquired it, and they were on constructive notice of all applicable zoning restrictions. Having voluntarily purchased a residence in a residential district, they now seek to convert it into a commercial enterprise. New York courts have consistently held that self-created hardship is fatal to a use variance application.
Opponents of the application have raised concerns about the precedent that approval would set. If the application is approved, it could establish a precedent that any homeowner may convert their residential property into a commercial alcohol-serving establishment simply by planting grapevines and declaring themselves a “vineyard.” Such a precedent could effectively nullify the protections afforded to residential neighborhoods throughout the Town of Chatham. The integrity of the Town’s zoning scheme depends on consistent enforcement of the distinction between residential and commercial uses.
If the applicants wish to operate a wine tasting room, they would need to first meet the legal requirements to become a licensed farm winery—including production of at least 50 gallons of wine annually pursuant to ABC Law § 76-a(9)(b), using grapes grown in New York State pursuant to ABC Law § 76-a(5)(a)—and locate their commercial operation in an appropriately zoned Business district.
Tomorrow’s public hearing will give residents an opportunity to submit comments on the proposal. The Town Board, Planning Board, and Zoning Board of Appeals each have jurisdiction over different aspects of such applications.
This article is public and may be shared. It is also available in Powell's syndicated column on NewsBreak.
Relevant authorities cited in connection with this matter include: N.Y. Alcoholic Beverage Control Law § 76 (Winery License); N.Y. Alcoholic Beverage Control Law § 76-a (Farm Winery License); N.Y. Town Law § 267 (Zoning Board of Appeals); N.Y. Town Law § 267-b (Permitted Action by Board of Appeals); Town of Chatham Zoning Law, Chapter 180; Town of Chatham Zoning Law, Chapter 180, § 180-1 (Purpose); and the New York State Liquor Authority’s Winery Quick Reference.
Links to Referenced Laws and Authorities
N.Y. Alcoholic Beverage Control Law § 76 (Winery License): https://www.nysenate.gov/legislation/laws/ABC/76
N.Y. Alcoholic Beverage Control Law § 76-a (Farm Winery License): https://www.nysenate.gov/legislation/laws/ABC/76-A
N.Y. Town Law § 267 (Zoning Board of Appeals): https://www.nysenate.gov/legislation/laws/TWN/267
N.Y. Town Law § 267-b (Permitted Action by Board of Appeals): https://www.nysenate.gov/legislation/laws/TWN/267-B
Town of Chatham Local Laws:
Town of Chatham Zoning Law, Chapter 180: https://ecode360.com/10484787
Regulatory Guidance:
New York State Liquor Authority, Winery Quick Reference: https://sla.ny.gov/winery-quick-reference-1
Previous Articles on Fox Hill Vineyards:
©2026 All Rights Reserved Josh Powell/The Powell House Press
josh@thepowellhousepress.com
Fantastic breakdown of the variance requirements here. The self-created hardship angle is pretty compelling when you look at the constructive notice issue, like they knew going in what the zoning restrictions were. I actually saw similar clash in a suburb near me where someone tried to retrofit aresidential garage into a wine cellar tasting space, and the planning board shot it down for basically same reasons. The precedent risk alone probably makes this DOA at the hearing.