A four-year battle over a small vineyard north of Bend, Oregon, has tentatively reached a turning point. On March 25, the Deschutes County Board of County Commissioners preliminarily approved a proposal by Duane and Dina Barker to open Lava Terrace Cellars, a wine tasting and production facility on their five-acre property. While the decision marks a significant step forward for the Barkers, opposition remains strong, with neighbors vowing to continue the fight and potentially accept the matter to the state level.
The approval, which is still pending a final decision in the coming weeks, comes after years of debate centered on concerns about potential well water contamination, increased traffic on rural roads, and whether the proposed winery aligns with the area’s agricultural zoning. Supporters, whereas, argue that Lava Terrace Cellars would provide an economic boost to the region and complement the area’s rural character. The dispute highlights the challenges of balancing agricultural development with the preservation of a quiet, residential lifestyle in a rapidly growing region.
Lava Terrace Cellars, located on Bowery Lane a few miles north of the recent Costco in Bend, aims to produce approximately 1,500 cases – roughly 18,000 bottles – of wine annually, according to the Barkers’ application. First submitted in 2022, the plan involves converting existing barn and garage structures into a production facility and a small tasting room capable of accommodating six to eight people for tastings and “wine related events.”
The Barkers did not respond to requests for comment from The Source. However, their proposal has faced consistent opposition from nearby residents, most notably Toby and Michel Bayard, who live half a mile away on a winding dirt road. The Bayards have led the charge against the winery, formally contesting a hearings officer’s initial approval in January 2024 and submitting numerous emails and comments to the county.
Following the county’s preliminary approval, Toby Bayard reiterated his determination to fight the project. “I’m going to file an appeal,” Bayard stated, describing himself as an “environmental junkyard dog.” “We’ve been fighting this for years.” He intends to appeal the decision to the Oregon Land Use Board of Appeals (LUBA), which has the authority to overturn or send back local land use decisions.
The “Farm-Use” Debate at the Heart of the Dispute
Much of the contention revolves around the interpretation of Deschutes County’s Mixed-Use Agriculture zoning regulations. The Bayards argue that the Barkers’ plan to supplement their own grape harvest with grapes from other vineyards effectively circumvents the zoning requirements, which stipulate that commercial activity must be “in conjunction” with a farm use – specifically, growing grapes. They contend that simply processing grapes sourced elsewhere doesn’t qualify as a functionally dependent agricultural activity.
“The mere thematic relationship between agricultural and commerce is insufficient,” Michel Bayard argued, highlighting the zoning’s intent to protect agricultural land from purely commercial development. He has a background in wine production, having studied the craft at the University of Bordeaux in France.
Tommy Brooks, a third-party hearings officer for Deschutes County, disagreed in a 2024 decision, stating that the Barkers’ use of locally-grown grapes, even if not exclusively their own, was sufficient to meet the zoning requirements. The 2025 winery proposal explicitly states the Barkers plan to use grapes “from vineyards in Deschutes County, including Applicant’s vineyard.”
The debate also touches on water quality concerns. Wineries producing fewer than 6,000 cases annually are exempt from water quality permits from the Oregon Department of Environmental Quality, according to agency spokesperson Antony Sparrow. This exemption has fueled concerns among opponents who fear potential impacts on local well water.
A Neighborhood Divided and a History of Conflict
The proposed winery is located in an area some residents affectionately refer to as the “Golden Triangle” of Bend, characterized by its rural atmosphere and proximity to the city. Julie Langou, a resident living one block from the proposed winery, wrote in a February 24 letter to the county that a tasting room and small production facility would “complement — not conflict with” the area’s character, noting the presence of alpacas, horses, and other small agricultural operations in the neighborhood.
However, other residents, like William McVicker, who lives across the street from the vineyard with three young children, have expressed concerns about narrow roads, blind spots, and the potential for impaired driving. “Our neighborhood is a quiet, residential area served by a single-lane, private gravel road with several blind spots,” McVicker wrote to the county.
Adding another layer of complexity to the dispute is the question of the Rock O’ the Range Homeowners Association (HOA). Residents established the HOA in 1966, and neighborhood leaders have argued that its covenants prohibit commercial activity. However, the Barkers sued the HOA last year, and a Deschutes County Circuit Court judge ruled that the organization was never formally established. The Bayards are contesting that ruling.
“Let’s not say, we don’t have an HOA. We do,” Michel Bayard said on February 25. “That HOA does not allow commercial activity on Bowery Lane.”
Political Donations and Future Steps
Toby Bayard is a frequent donor to Central Oregon LandWatch, a nonprofit land use litigator, and to local Democratic campaigns. She contributed $8,000 to the 2024 reelection campaign of Deschutes County Commissioner Phil Chang, who recused himself from the March 25 vote. Bayard is also a significant donor to Jamie Collins, who is challenging longtime incumbent Commissioner Tony DeBone in this year’s election, having given $20,000 to her campaign. With Chang recused, Commissioners DeBone and Patti Adair voted to approve the winery proposal.
The next step in the process is a final decision by the Deschutes County Board of County Commissioners. If approved, the Barkers can proceed with their plans to establish Lava Terrace Cellars. However, Bayard’s planned appeal to LUBA could significantly delay or even halt the project. The Oregon Land Use Board of Appeals is scheduled to hear arguments in late summer 2026, according to a spokesperson for the board.
The outcome of this case could have broader implications for land use regulations and the balance between agricultural development and residential quality of life in Deschutes County. Residents on both sides of the issue are closely watching the proceedings, and the future of Lava Terrace Cellars remains uncertain.
If you are experiencing stress or anxiety related to local disputes or land use issues, resources are available. The Deschutes County Behavioral Health team can be reached at 541-322-7145.
The Board of County Commissioners will revisit the matter at their next scheduled meeting on April 8th. Further updates will be available on the Deschutes County website. We encourage readers to share their thoughts and perspectives on this ongoing story in the comments below.
