A class-action lawsuit is moving forward in Santa Barbara County, where a local winery alleges that odors from a nearby cannabis operation are harming its business and property value. The case, initiated by Pence Vineyards & Winery and Quantum Wines, targets Santa Barbara Westcoast Farms, a 50-acre outdoor cannabis farm located directly across the road from the winery.
Blair Pence, owner of the winery, claims that the strong smell of cannabis has deterred customers and diminished his property values. According to court documents, visitor numbers at his tasting rooms plummeted from 7,600 in 2021 to 3,300 in 2022, a direct correlation he attributes to the cannabis operation’s activities. Additionally, financial records show a steep decline in monthly wine sales, which fell from $113,000 in October 2021 to just $44,000 by October 2024.
As the lawsuit approaches a key court date, Judge Patricia Kelly is set to decide whether to certify a class of homeowners and business owners within a two-mile radius of the cannabis farm. If approved, this would enable them to collectively seek damages against Westcoast Farms.
Complaints regarding cannabis odors are not new in the Buellton area. The Sta. Rita Hills, where Pence Vineyards operates, is a designated American Viticultural Area, and local residents have long voiced concerns about odors from cannabis cultivation affecting their quality of life. In response, the county Board of Supervisors has mandated odor control measures for some cannabis greenhouse growers but has not broadly addressed the issue for outdoor farms like Westcoast.
Pence describes the odor from Westcoast as a heavy, noxious smell that persists for extended periods, particularly during the growing and harvesting seasons, which can last up to six months a year. He states that customers are deterred by the cannabis odor, which he believes stigmatizes his winery in the eyes of potential visitors.
In contrast, representatives from Westcoast Farms argue that the odor is mild and floral, dissipating quickly and only occurring during the three to four weeks of harvest. They claim that for most of the year, other crops like mustard seed and oats are cultivated on the property, and they deny any link between their operations and Pence’s claims of reduced property values.
Environmental assessments conducted around the cannabis farm have yielded mixed results. An environmental engineer reported that cannabis odors were infrequent and weak in intensity, while independent air sampling indicated noticeable odors in nearby residential areas, particularly during nighttime.
Westcoast Farms is one of the largest outdoor cannabis operations in the region and is part of a broader trend of cannabis cultivation in Santa Barbara County, which has seen a significant increase in permits issued. However, the market for cannabis has been challenging, with wholesale prices dropping 57% since 2021, leading some growers to abandon their projects.
The lawsuit raises issues not only about odor nuisance but also about adherence to water regulations. Pence Vineyards alleges that Westcoast is illegally drawing water from the Santa Ynez River during dry months, which could negatively impact local agriculture. Westcoast denies any wrongdoing and argues that the proximity to the river does not constitute a violation of water law.
As the legal battle unfolds, the outcome could set a precedent for how outdoor cannabis operations are regulated in relation to neighboring businesses and residents, particularly regarding odor management and property rights. The court’s ruling on class certification will be pivotal in determining whether affected neighbors can join the lawsuit or must pursue individual claims if they wish to seek damages.
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