OLD MISSION PENINSULA, Michigan—This 19-mile area of undulating hills, cherry farms, and vineyards that descend toward Grand Traverse Bay—beautiful in the summer, extremely cold in the winter—has turned into an unexpectedMidwestern winemaking mecca.
But it is also the starting point for a intense confrontation. On one side: vineyards looking for new sources of income. On the other: farmers and residents who worry that chaotic weddings and overly exuberant brides will destroy their agricultural community.
For many years, the groups have had disputes about the types of events that winemakers can organize—other than Chardonnay tastings—and their size. Peninsula Township officials created detailed regulations, such as linking the number of guests to grape sales and specifying which music genres are allowed at vineyards.
Frustrated vintners took legal action in 2020. Then, a major revelation occurred. Last month, a federal judge based in Kalamazoo mandated that the small area (population 6,000) compensate the wineries $49.3 million for lost earnings due to zoning rules deemed unconstitutional and against Michigan law.
Where will the funds be sourced from? Local officials attempted to file an appeal, but Town Supervisor Maura Sanders has suggested that authorities consider a drastic measure: placing portions of the community at risk.
She aims to evaluate properties such as public parks (including two that have beaches), a historic lighthouse from 1870, and empty lots that could be sold. She has suggested stopping the upkeep of the local cemetery and shutting down the township hall.
A frustrated local expressed his view on town officials with a sign by the road that read: “Resign – $49 Million.”
“It’s a very unfortunate situation we’re facing right now,” said Jennifer Venegoni, who sells homemade jams and carrot cake at a roadside stand. She has friends on both sides.
At a recently crowded public gathering, Supervisor Sanders presented the difficult numbers. She mentioned that no one is eager to sell the valuable assets, but she believed it was necessary to outline the choices, aside from significantly increasing taxes to the point where residents might be forced to move. “It’s tough—and I apologize for using such language,” she said to the community members.
Joseph Infante, a lawyer representing the 11 wine producers, described the discussion about selling local treasures as “a PR move to portray the wineries negatively.”
Grapes and wrath
How did everything become so bad?
Well-known for its cherries, the Old Mission Peninsula—located roughly four hours northwest of Detroit—began exploring the wine industry in 1974. Ed O’Keefe, a former Green Beret, undercover narcotics officer, and nursing home developer, went against the advice of experts and introduced European grape varieties to an old cherry farm.
“Everyone said it wouldn’t succeed. You can’t cultivate grapes in Northern Michigan. It’s just too severe,” remembered his son, Eddie, who is now one of the leading wine producers in the region. A major factor in their success was the heavy snowfall, driven by cold air from Lake Michigan, which shielded the delicate vines.
The late O’Keefe had a vision for European-style agricultural tourism, yet from the beginning faced the core, persistent challenge: At what point does a place transition from being an agricultural operation to a commercial business—and how can a rural setting coexist with visitors, restaurant patrons, and those seeking entertainment?
As years went by and new vineyards opened, many aimed to provide larger events and louder sounds—but locals opposed and rules stayed strict.
Local officials and advocates support their method.
“Every action we took, we asked ourselves, ‘How can this help farming without disrupting the community’s balance?'” said John Wunsch, a third-generation cherry farmer and board member of Protect the Peninsula, an organization that has worked to regulate wineries. He believes the small peninsula, which has only one primary road running through it, isn’t safe for big events along with the slow-moving farm machinery.
Local officials mention that other wine areas also limit certain activities at vineyards. “The wineries are seeking unrestricted commercial operations such as full-service restaurants, event venues, late-night gatherings, and louder music,” Sanders stated. “This would undermine the agricultural essence that contributes to their business success and what makes the township unique.”
But in reply, Infante, the vintners’ lawyer stated, “This is merely exaggeration. The wineries are not trying to open a Waffle House or construct Madison Square Garden.”
He mentioned that “they desire the freedom to run their businesses in a manner that enables them to offer their customers an unforgettable experience, so they cherish their time in Northern Michigan.”
‘Mood music’ only
Peninsula producers claim that numerous restrictions prevented them from developing the lively tourism they saw in other wine regions. “There were 11 wineries here, and each had 11 different sets of rules,” said Spencer Stegenga, co-owner of Bowers Harbor Vineyards, located on a former horse farm.
Co-owner of Bonobo Winery, Todd Oosterhouse, mentioned that the highest number of guests he—along with several other wineries—could accommodate at any event throughout the year was limited by the quantity of grapes purchased from other vineyards on the peninsula in the prior year—1.25 tons corresponded to one guest.
Guest events needed to be connected to farming. “My wife wanted to teach a Spanish class—just sit here and go over Spanish words and discuss wine and other topics, and yeah, like, ‘no, that’s not agricultural,'” so the idea was turned down, he said.
Chateau Chantal, a towered, European-style winery and guesthouse offering breathtaking vineyard and bay vistas, can only accommodate weddings when all guests stay on the premises—capping the number at roughly 44 people. “That’s simply not the kind of size most of our clients are seeking,” said Marie-Chantal Dalese, president and chief executive.
O’Keefe remains confused about certain regulations. “We can have amplified music, but only ‘mood’ music, not louder than a whisper at the property line,” he stated. “We’re permitted to host 75 people for an event, but I’m not sure if that refers to an outdoor gathering or if it includes my entire winery.”
As the legal case progressed, the township revoked some regulations, allowing wineries to host more events without needing constant government permission, although they still exercise caution with major activities.
“We can host events such as farm-to-table dinners…it’s not like the bridesmaids are going out of control,” said Chris Baldyga, co-founder of 2 Lads Winery.
In July, a federal judge, who had previously stated that the township’s regulations were unconstitutionally unclear, ruled that the wineries should receive compensation for lost income over approximately five years. The announcement sparked widespread controversy.
Many people in this community saw the headline about $50 million and are really upset,” said John Jacobs, a retired IT executive and treasurer of Protect the Peninsula. “It’s 11 small-business owners affecting 6,000 residents.
During a public gathering a few days back, multiple residents advocated for direct discussions with winemakers—one individual proposed to organize a summit on the beach close to his residence.
Township officials state they are willing to engage in discussions but emphasize that any settlement requires approval from their insurance company. Some local leaders remain optimistic that they will prevail on appeal—or that the wineries will not ultimately require the town to pay.
“I can’t understand collecting on that judgment, and I hope the wineries would never, ever do such a thing,” said Rebecca Chown, the elected township clerk.
Wine business representatives mentioned they might be open to adjusting the payment and are awaiting information on what the town’s insurance companies will cover before moving forward. “I don’t want to harm my friends and family,” stated Stegenga from Bowers Harbor Vineyards.
On a recent day, Eddie Fichter, a 59-year-old truck driver from North Carolina, was enjoying the scenery at the base of the historic Mission Point Lighthouse. The native of Long Island, N.Y., mentioned that wineries in the area hold events and other special occasions.
If it’s good enough for the people in the Hamptons, then it should be good enough for people up here,” he argued. “I believe they should collaborate. Maintain the lighthouse and allow them to host the weddings.
Write to Joe Barrett atJoseph.Barrett@wsj.com
