East Kerr County winery to get tax break

June 24--An East Kerr County winery may receive a 5-year tax break worth up to $74,000 under a concept plan agreed to by commissioners Monday.

Jonas Titas, executive director of the Kerrville Economic Improvement Corporation, presented the request on behalf of Bending Branch Winery, a vineyard and winery in Kerr County near Comfort started in 2009.

Titas said the winery plans a new $3.6 million investment on the 56-acre vineyard that will include a new tasting room and manufacturing and production facility that will add at least five new employees to the 12 full-time and two part-time staff already working there.

The request presented Monday is for a 381 agreement with Kerr County that would abate about $14,800 annually in taxes generated on the new investment for a five-year period.

Commissioner Jonathan Letz said the owners of the winery "have taken a true leadership role" in expanding the Texas wine industry to Kerr County.

"From an economic development standpoint, I support what they are doing," Letz said.

Bob Young, one of the owners of the Bending Branch Winery, said they have been researching specific grapes that grow well in Kerr County, along with new techniques for using grapes to produce wine.

He said Bending Branch sells its wine almost exclusively out of the winery in Kerr County and an additional tasting room in Comfort. Currently, the winery can produce up to 4,000 cases of wine annually, but Young said the additional 16,000-square-foot production facility would increase that to up to 20,000 cases a year.

Titas said the winery's annual sales are $866,525 annually and growing, and Young said he hopes their expansion will help what he called "spin-off vineyards" start up in the area.

"Texas vineyards produce only about 50 percent of the grapes needed for wine production," Titas said. "The industry in Texas is in its infancy, and some people have compared it to California in the early '80s."

According to Titas, there are about 30 wineries operating in the Stonewall area north of Fredericksburg, and that number is predicted to grow to nearly 70 in the next two years.

In addition to Bending Branch and the Lost Pirogue vineyard started near Center Point, the KEDC is involved in a project looking to expand the Hill Country Wine Trail along Texas 173 through Kerr County. That area is part of Precinct 2 in Kerr County, which is the only portion of the county where wine and mixed beverages cannot be sold.

Commissioner Tom Moser said, as of Monday, the group seeking to put an initiative on the November ballot to allow the sale of wine and mixed beverages in Precinct 2 had collected only about 600 verified signatures on a petition.

The deadline for the group to turn in about 1,800 signatures is Thursday; however, Titas said there is an exception to the law that prohibits the sale of wine and mixed beverage for Texas agricultural products, which would allow a winery to sell Texas-made wine.

In other matters, commissioners:

--Held a swearing-in ceremony for Mitzi French, justice of the peace in Precinct 1.

--Approved the revision of plat for Lots 34A and 34B of Falling Water subdivision in Precinct 3.

Approved the revision of plat for Lots 5 and 6 of Rio Retiro in Precinct 4 and granted a cul-de-sac variance.

--Approved an aerial utility easement, approximately 25 feet, over the southwest corner of the River Star Arts & Event Park property for an electrical wire.

--Heard a presentation regarding Kerr County Texas A&M AgriLife Extension office activities.

--Approved the use of $100,000 of the airport reserves to pay the consulting firm to be hired to evaluate the roofs at Mooney.

--Approved an interlocal agreement with the Kerr County Juvenile Board.

--Approved a residential contract for the Kerr County Juvenile Detention Facility. This is the contract sent to other counties to house juveniles in the local facility at a rate of

$95 per day.

--Approved an amendment to the organizational chart for the Kerr County Juvenile Detention facility.

--Renewed an annual agreement with the Kerrville Independent School District concerning the Juvenile Detention Facility.

--Received the 2013 Texas Association of Counties Gold Star Award for safety.

--Accepted the annual business associate agreement with Alamo Insurance Group.

--Heard changes to the Kerr County employee voluntary benefits package for 2014-15.

--Appointed commissioners Tom Moser and Jonathan Letz to the Airport Planning Committee.

--Set a public hearing at 9:30 a.m.July 14 for the county clerk's written archival plan. The hearing is an annual requirement.

--Presented a resolution by recognizing the service and 90th birthday of former county commissioner Ed Higgins.

--Authorized the county judge to sign an amendment to the agreement for engineering services with Tetra Tech for the Center Point wastewater improvement project.

--Accepted the audit reports for precincts 1 and 2 justice of the peace offices.

--Amended the contract with Peter W. Lewis Architect and Associates for the Hill Country Youth Event Center concerning a new sewer line and amending the hourly fees for additional services. The contract includes various fees for additional services, if requested by the county. Those fees vary depending on work requested.

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