Nightmare scenario

Winemakers are aging out, failing to find successors

Amid the economic storm clouds forming across Canada, driven largely by the tantrums of the tangerine toddler in the White House, anxiety is also percolating in the County. Overheated stock markets, a housing market that has run its course, and an expanding range of debt mountains are contributing to the general sense of unease across the nation. Yet, Prince Edward County has its own set of reasons to worry about the health of its economy. According to an update provided last week by Karen Palmer, the County’s Economic Development Officer, 2026 is likely to be a challenging year. She points to the wine sector, where many of the founding principals are aging out. Several are looking to sell, but are unable to find buyers.

“At the time of writing, three of six cideries were for sale, two distilleries and at least nine wineries and/or vineyards,” wrote Palmer in an economic snapshot presented to Council last week. “That’s nearly a quarter of the County’s 40 wineries/vineyards.”

Palmer worries that the sectors could unravel in a hurry. Vineyards in particular need “constant maintenance” and care. Some owners are considering removing vines to facilitate a sale. The impact would surely reverberate through the entire economy.

Councillor Brad Nieman asked and answered his own question, “If we lose tourism—what do we have?”

“You are describing a nightmare,” said Palmer. “And it’s real.”

Councillor Bill Roberts suggested some industry consolidation was natural and indeed expected— but that a sudden loss of several members of the sector could create a cascading effect.

Palmer agreed.

“The knock-on effect could be huge,” said Palmer. “And it can happen quickly—if owners stop taking care of the vines or their facilities deteriorate.”

She said the food and accommodation sectors of the County’s economy depend on a healthy, thriving wine, cider, and spirits industry.

Palmer explained that these challenges are intensified by lenders sitting on the sidelines, unwilling to venture into the uncertain waters they see before them.

Worse, Palmer doesn’t see a clear path forward. The municipality has limited resources and is unlikely to divert more funds from municipal coffers to ensure a smooth succession, despite the sector’s importance and the threats it faces.

At best, her department and other Shire Hall folks, including Planning, can be a catalyst for economic activity. A spark.

And thus the creation of the Economic Development Working Group. The roundtable will bring together representatives from marketing and industry organizations across the region to facilitate a conversation about the challenges, opportunities, and threats to the County’s economy.

“It’s important to sit down to talk,” said Palmer. “Membership is siloing.”

It is a challenge in many markets. Business operators are running flat out. Industry advocates, necessarily, focus on the problems directly in front of them. Palmer hopes the roundtable will help all to see the dark clouds forming and, perhaps, mobilize collectively to prepare.

“We need to be more creative,” said Palmer. “Getting people to understand the need is urgent.”

LETTING LOOSE THE REINS
Rigid land planning regulations represent a critical hurdle to agribusiness owners looking to sell. Rules erected decades ago, arising from fear of a fast-moving wine sector, have hobbled businesses from expanding and diversifying. Majestic old barns have been rendered unusable and indeed represent an impairment to the value of some properties. In the Niagara region, adaptive reuse policies are written into the Official Plan (OP) to protect these structures and promote their use and rejuvenation.

Councillor Roy Pennell wanted to know how the County’s Economic Development and Planning departments were getting along, particularly in the wake of the turnover of senior staff in Planning.

“Never better,” reported Palmer. “There is a new energy and a new enthusiasm.”

Palmer acknowledged that there is a natural tension between municipal functions—one is about getting a deal done, the other is about thinking of the implications decades down the road.

She reported a review of one recent planning file that had bounced around Shire Hall so long it had “100 touch points”, that is, it had been reviewed, altered, and reviewed again more than 100 times.

“Together, we are looking for improvements,” said Palmer.

David Harrison, councillor for North Marysburgh, urged his colleagues to begin considering allowing smaller agricultural lot formation. Under the County’s current OP, the smallest lot size permissible is 40 hectares (about 99 acres). Harrison suggested that permitting agricultural lot sizes of 10 to 20 acres would maintain rural integrity while supporting the agribusiness sector.

“It will allow flexibility and innovation,” suggested Harrison.

Correcting the record

Councillor lists achievements of former economic agency

There was skepticism among council members when the notion of forming a roundtable forum was put on the table a few weeks ago. A working group comprised of representatives of marketing and industry groups seemed unnecessary to some around the horseshoe. Been there, done that, was the simmering dissent.

A pair of council members had declared at that meeting that the Community and Economic Development Corporation, an arms-length agency of the municipal government, had accomplished “nothing” and that the proposed working group would produce the same outcome.

Another member stepped up last week to presented a fulsome corrective to his colleagues.

Bill Roberts, councillor for Sophiasburgh, offered a long list of achievements to illuminate his colleagues’ amnesia. He was doing so, not to highlight the oversight, but rather to illustrate what might be possible with the proposed Economic Development Working Group.

“It (the CEDC) recommended shoring up the destination development function (DMF) in the face of Taste folding at the time. The CEDC recommended bringing it in house and survived,” started Roberts.

“It updated and expanded County branding, it recommended a community development strategy plan, it created a development framework that focused on cutting red tape and streamlining approvals and processes,” he continued.

“[The CEDC] produced numerous County marketing initiatives, it funded the Small Business Centre when the province was pulling back. It repatriated County resources when the trend was toward a regional marketing focus. It expanded the County’s wayfinding signage strategy,” he said.

“Some of you may remember a time when the Chamber of Commerce was struggling. The CEDC provided funding and support to keep it going. The CEDC initiated the Affordable Housing Corporation, County Transit, the rental vacancy rate review, The Picton harbour vision plan and the short-term licensing review.”

“The first time the idea of key performance indicators, or KPIs, was mentioned in this building it was at the CEDC. We reported on those KPIs.”

He said the CEDC was the first advisory board to invite youth to sit on its board.

“It wasn’t nothing,” said Roberts. “It was a lot.”