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Living

Once, twice, three times a wine







"We were probably at the brewery.” Emily Hodson Pelton is recalling a fateful conversation with fellow winemakers Jake Busching and Matthieu Finot, when Busching chimes in.

“We said, ‘Wouldn’t it be fun if…?’”




Matthieu Finot (left) of King Family Vineyards, Emily Hodson Pelton of Veritas Vineyard and Winery and Jake Busching of Pollak Vineyards combine their efforts and expertise to develop 3,
a limited edition collaboration wine.




And that, wine lovers, is how great ideas are born: A couple of brewskis in Nelson County and an idle rumination about other kinds of unexplored fun. Or at the very least, that’s how the winemakers from Veritas Vineyard and Winery (Pelton), King Family Vineyards (Finot) and Pollak Vineyards (Busching) came up with the concept for 3. Or, as Pelton explained at a recent blending trial that brought the winemakers together in Finot’s barrel room: “Three wine-
makers, three wineries, three vineyards, three varietals, one wine.”

3 will be a limited edition blended wine from this trio of young and successful winemakers. As Pelton says, they “work within spitting distance of each other.” And they’re all friends. King Family is located in Crozet with Pollak a few miles west in Greenwood and Veritas just over the Nelson County border in Afton. “For me, it was making sense,” says Finot, the Frenchman among the group of three friends. “Three wineries working on the same hillside with the same terroir. And our objective as winemakers is the same: to make premier wine.”

On this early November afternoon, when they invite a reporter and photographer to leave the office for some wine tasting of the 2009 vintage and conversation (Please! Twist our arms! Harder!), they are concocting the final blend for 3. Pelton contributed the Petit Verdot, with Finot  adding the Merlot and Busching the Cabernet Franc. “The nose on it—it’s working,” Finot declares.

But while the assertive, fragrant red wine seems destined for quick success—and at a 150-case run, you’re well advised to buy it as soon as it’s available at the wineries, because it will certainly run out—it required a tad of persuading to get the winery owners to sign off on the concept.  “It took a little explaining,” says Pelton. “I don’t think anyone else in Virginia has done it before so, yes, it was unusual,” adds Finot. 

Finot, Busching and Pelton are each closing in on about a decade of winemaking, and they are trusted colleagues. But, as Busching points out, winemaking is a highly individual creative form, too. Tapping into that was as much a motivation for 3 as any marketing across wineries might have been. “People say it’s artistry,” he says. “A lot of what drives us is creative desire. To get outside of what is not exactly a routine—but still—to get outside of that is very refreshing.”

It’s easy to think that with an ever-growing regional wine industry, wineries and winemakers might be competitive and unwilling to collaborate. Pelton says that if one winemaker asks another about techniques or styles in a way that cuts too close to the bone, he might get rebuffed. But those instances are rare. “There’s not just one way to make wine,” adds Busching. “There’s an appreciation for creative differences amongst the group. There are not a lot of closed doors in the Monticello AVA.”

3 will be bottled over the winter, and beyond that the only other outstanding detail is getting all the interested parties (e.g. the winery owners) to sign off on a label, which all agree should look like the kind of hand-drawn chalk mark that a winemaker leaves on a barrel of aging wine. Meanwhile, the trio of 30something Virginia winemakers is at work creating the 2010 vintage of 3. And they’re looking ahead to a future that sounds remarkably like the start of their combined venture: “The idea of sitting down to dinner in a couple of years and drinking this wine with these guys is great,” says Busching.

NEW C-VILLE COVER STORY: 25 gifts under $25

Whatever day you give presents, C-VILLE has a budget gift-giving guide in this issue to help you along the way. Last week’s news showed a slight rise in retail spending in Albemarle County. Yay! Every little bit of economic recovery counts. But if you’re still waiting for the rebound—like most of us—and watching your wallet, there are many low-cost ways to spread cheer. Click here for this week’s cover story. 

Their $1.2M pledge to PVCC half paid, Kluge and Moses assure the rest is coming

In the fat times, a short five years ago, Patricia Kluge and Bill Moses pleged $1.2 million to PVCC to build a science building that would support, among other courses of study, the community college’s enology and viticulture programs. But now that Farm Credit of the Virginias has foreclosed on Kluge Estate Winery and Vineyard, is the donation jeopardized?

Mary Jane King,  the school’s director of institutional advancement and development, says no. A 10-year pledge, the gift is half paid already. And King says that in early November, after the bank shut down Kluge Estate Winery’s operations, "we were contacted by the donor and assured of their commitment to pay the gift in full. And that’s where we are," she says.

The Kluge-Moses Science Building opened this year. "Students love it, faculty love it. The science labs are excellent," King says.

By the terms of the pledge, Kluge and Moses have five more years to pay the remaining $600,000.

 

Categories
Living

Countdown to Kluge auction continues







Naturally, it didn’t take long for Patricia Kluge’s news to spread, like red wine on a white linen tablecloth. More than two weeks ago, C-VILLE broke the story that Farm Credit of Virginias have foreclosed on Kluge Estate Winery and Vineyard, Albemarle’s largest winery, which is owned by Kluge and her husband Bill Moses. Kluge and Moses owe the bank nearly $35 million on the property that includes 164 acres under vine. The bank filed a civil suit, too, alleging fraudulent transfer of property into a trust for her son (Kluge and Moses’ attorney calls that charge “ridiculous”).



“Certainly, bringing a winery that is in trouble to someone’s attention would be part of our job in promoting the Virginia wine industry,” State Secretary of Agriculture Todd Haymore says, “but I’m not sure there is anything else the Governor’s office or I can do for an individual winery.” Kluge has 164 acres planted with grapes. The auction of the land, buildings and equipment is scheduled for December 8.




And the news got worse and worse over the past two weeks. NBC29 first reported that Kluge heads the class of property tax delinquents in Albemarle County with an unpaid tab of $86,000. Then, C’ville Bubble Blog reported that Kluge and Moses had dropped the sale price on Albemarle House, their 45-room mansion on Blenheim Road, to $24 million (Bank of America holds a lien for $22.8 million on that property). When they first put it on the market about a year ago, the asking price was an incredible $100 million, which came down within months to $48 million, though it still attracted no buyers at that price. 

By the time Wine Spectator picked up the Kluge news, there seemed to be a glimmer of hope. “Virginia Gov. Bob McDonnell, an avid wine enthusiast, is reportedly attempting to interest the Altria Group, which owns both Chateau Ste. Michelle in Washington and Philip Morris tobacco, in a deal with Kluge,” the magazine reported in an unbylined online story on November 4. Not exactly, says Virginia Secretary of Agriculture Todd Haymore. 

“We are reaching out to a number of companies both domestically and internationally to ask them to look at the Virginia wine industry,” says Haymore, “to look at the land that is producing these grapes that are producing these wines.” He confirms that Altria is among those companies. But, he adds, “We have had no specific conversation about any winery. It’s been a very broad discussion about the Virginia wine industry.”

Haymore confirms that Kluge and Moses reached out to the McDonnell administration, adding, “it’s unfortunate what’s going on with Bill and Patricia and we hope for the best.”

“Certainly, bringing a winery that is going out of business or is in trouble to someone’s attention would be part of our job in promoting the Virginia wine industry,” Haymore says, “but I’m not sure there is anything else the Governor’s office or I can do for an individual winery.”

Meanwhile, Haymore says, Moses has resigned from the Virginia Wine Board, though at press time Moses’ name was still listed among the 10 members on the state’s official wine website, virginiawine.org.

Kluge Estate Winery and Vineyard is scheduled for auction on December 8 at the property. A separate auction of some 15,000 cases of Kluge wines is scheduled for December 11 at The Warehouse in Madison County. That stock includes vintages dating to 2004 and is restricted to businesses with an ABC license, such as restaurants and wine shops.

While Kluge may still be searching for a white knight, Sweely Estate Winery, which was also facing foreclosure a couple of weeks ago, has reached an agreement with its lender, Sun Trust Bank, and the auction of that Madison County property, which includes a capacious event building and 295 acres (40 of those planted with grapes) has been canceled. There will be “no change in operations,” says owner Jess Sweely.

 

Previously: Foreclosures hit two big local wineries

Price further reduced on Kluge estate, though it remains an Albemarle high at $24M

Once among the priciest real estate listings in the country, Albemarle House, the English-style mansion owned by Patricia Kluge and her husband Bill Moses, remains the costliest listing in Albemarle County even after a recent price reduction to $24 million. It was originally listed for $100 million, before dropping to $48 million earlier this year. C’ville Bubble Blog broke the story today.

Facing foreclosure of her winery and operations, as well as $86,000 in unpaid property taxes due to Albemarle County, Kluge and Moses are also subject to a civil suit filed on October 29 by Farm Credit of the Virginias, which holds the lien on their winery property and acreage. That suit alleges a fraudulent transfer of land while Kluge and Moses were in loan restructuring discussions with Farm Credit.

To read more about the pending auction of Kluge Estate Winery and Vineyard and the unpaid taxes, click here. And here.

Attorney says allegations against Patricia Kluge and Bill Moses are “ridiculous”

UPDATE, 11AM:

Through a spokesperson, Bill Moses referred inquiries to Edward B. MacMahon, Jr., a Middleburg attorney who is representing Moses and Patricia Kluge in Farm Credit’s civil suit. “We’ll file an answer in the next 21 days,” MacMahon says, adding, “those allegations are ridiculous.”

While MacMahon acknowledges they transferred 7.18 acres into a trust for Kluge’s son, John W. Kluge, Jr., he says, “they have not fraudulently transferred anything. Farm Credit is not the only person in the world interested in that Albemarle County property.”

On the matter of unpaid property taxes, MacMahon says he “doesn’t know anything about that.”

Will Kluge Estate Winery and Vineyard find a white knight before the auction scheduled for next month? “They’re trying everything they can to get strategic partners to keep the winery open,” MacMahon says. “The bank had promised that they would keep the winery open, and [Moses and Kluge] were surprised that they would instead do everything they could to shut down operations.”

__________________________________________________________________

More troubles for Patricia Kluge and Bill Moses? A weekend report from NBC 29 puts Kluge and Moses at the top of the list of parties that owe Albemarle County unpaid property taxes. According to the TV station, Kluge and Moses are in arrears for $86,000. This news comes on top of earlier reports that Farm Credit of the Virginias has foreclosed on Kluge Estate Winery and Vineyard. With a lien totaling $34.8 million, the bank plans to auction the property and related equipment on December 8. Additionally, the bank has filed a civil suit against Kluge and Moses alleging a fraudulent transfer of property to her son’s trust in the midst of loan-restructuring negotiations. Moses did not immediately return calls seeking comment on the claim of unpaid property taxes nor the civil suit. For more on Kluge’s recent financial troubles, click here.

 

 

 

Owners renegotiate as Sweely Winery auction is canceled

 

Some two weeks after going into foreclosure, Sweely Estate Winery announced this morning that the auction of the Madison County winery, originally scheduled for November 18, has been canceled. Jeff Stein, vice president of auction house Tranzon Fox, confirmed that “the sale has been canceled pursuant to a negotiated agreement between owners and lenders. They’re in workout.”

Jess Sweely, proprietor of the winery, one of the area’s largest, told C-VILLE there will be “no change in operations.”  In a statement released last night, he said, he “regrets that the lender chose to advertise a foreclosure sale when they were at the end of finalizing their business terms going forward. Nevertheless, Mr. Sweely felt that it was inappropriate to comment prior to completing his negotiations with the lender.”

 

 

Bank pursues Patricia Kluge with personal lawsuit, business foreclosure

More developments in the strange case of the onetime wealthy socialite Patricia Kluge, whose wine business foreclosed late last week: Her lender has also filed a personal lawsuit against her and husband Bill Moses, alleging that they deliberately moved assets into her son’s trust in order to defraud the bank. Read more here.

Debts unsatisfied, bank takes control of Kluge winery

The state wine industry, by many accounts, is blossoming. New money is coming in from Richmond to market the fast-growing industry, sales within the state increased by 13 percent in the past year, and a well-received PBS documentary captures the unique challenges of making wine in Virginia. But things are looking decidedly sour for Albemarle County’s largest winery, Kluge Winery and Vineyard, the business that socialite Patricia Kluge and her husband Bill Moses opened in 1999.

Rumors of financial troubles at Kluge Estate Winery and Vineyard have resurfaced in the past several weeks. Owner Kluge herself has long espoused a worldwide vision for her product, often distancing herself from the Virginia industry, per se, aspiring instead to be “one of the East Coast’s most prestigious wineries,” as the Kluge website puts it. But many people close to Kluge’s business have been saying that her creditors took control of operations and fired staff. At the end of last month, Trevor Gibson, who had been the company’s chief financial officer for five years, left Kluge. Reached at his new business, GTG Advisors, he would only say he was “not at liberty to make any comments.” And late last night, after C-VILLE placed calls to one of Kluge’s lenders, Kluge CEO Bill Moses issued an unusual statement. Blaming a “perfect storm” of economic collapse that has also hit the wine industry, he said Kluge’s pace of growth “was not sufficient to satisfy the company’s banking consortium.”

“We have been, and are continuing intense discussions with various potential partners, and have kept our Bank apprised of these positive developments. From our perspective, it is disappointing that at the very moment when these talks appear to be most productive, they have chosen to take the initial steps towards dismantling the winery as an operating business as well as an auction of the property.”

Moses projects that it will “be some time” before a sale can take place and vows to continue discussions with “the promising partners and the Banks.”

Kluge has long been subject to rumors about financial and managerial instability—rumors that resurfaced in the past couple of years as the company ran through winemakers (at least five red winemakers since 1999) and in 2009 when Kluge and Moses put Albemarle House, their 45-room English style manor, on the market, initially for $100 million. At that time, she was pressed to say that the move had no implications for winery operations, a sentiment she repeated when, earlier this year, she brought most of the contents of the house to auction.

Albemarle County’s largest wine operation has 220 acres under vine. One former employee, speaking off the record, described Kluge’s chaotic environment. “It’s like a reality TV show,” the former employee said. “I always said if they really wanted to make money, that’s what they should do.”

For more on this story and another Charlottesville-area foreclosure, see The Working Pour column in next Tuesday’s edition of C-VILLE.

NEW C-VILLE COVER STORY: Taxpayer state park

The Biscuit Run deal certainly spoke to the idea that when it comes to getting things done, it’s a straight-up question of who you know. Environmentalists applauded the deal that traded the specter of 3,100 new homes in southern Albemarle for the promise of a state park when Craig, joined by Dave Matthews Band fiddler Boyd Tinsley and then-Governor Tim Kaine, announced the state had purchased the property. And as Will Goldsmith points out in his comprehensive cover story this week, it’s very likely that in generations to come, when there’s a lovely park to enjoy only minutes from town, no one will care who made a phone call to which Richmond bureaucrat to fast track what plan nor whose wife sat on what board of directors with whom. Read the cover story here, and don’t forget to leave your comments.