The Northburn Wine Company is seeking planning consent for a subdivision as part of its deal selling its vineyard and function venue to a global luxury goods group.
Northburn plans to sell its 23ha vineyard and The Shed cellar door and function centre to Cloudy Bay Vineyards, subject to Overseas Investment Office (OIO) approval.
Cloudy Bay was established in 1985 by Cape Mentelle Vineyards, Western Australia, which is part of the Moet Hennessy Wine Division.
Moet Hennessy is part of LVMH, founded in 1987 after a merger between Moet Hennessy and Louis Vuitton.
The manager of the OIO, Land Information New Zealand, Annelies McClure, said yesterday Northburn's application to the OIO for approval of the sale was still being processed.
She was unable to say when a decision would be made.
Northburn has also applied to the Central Otago District Council for consent to create two allotments with areas of 5.27ha and 4.72ha.
One parcel of land included in the conditional deal with Cloudy Bay has vineyard and general farming activities on it.
The aim was to subdivide so the vineyard portion could go to Cloudy Bay and the general farmland could remain with the Northburn Station, which Northburn owners Tom and Jan Pinckney will continue to own and farm.
The matter was considered by the council's hearings panel yesterday and the panel reserved its decision. Council planning consultant David Whitney has recommended the subdivision be allowed, subject to several conditions.
He said any adverse effects on the environment would be minor and the applicant believed the status quo would be maintained as far as land use was concerned.
On behalf of Northburn, BTW South Ltd planner Martell Letica told the panel the subdivision was needed to separate two distinctive land uses - grazed pasture land and viticulture.
''This in turn will allow for the viticulture area to be included in the prospective sale of the vineyard whilst retaining the remaining pasture area as part of the applicant's farming operation,'' she said.
There were no current plans to build any structures on the property as a result of the subdivision.
Although the subdivision was a non-complying activity as it created lots below the average size in the rural resource area, it should not establish a significant precedent, she said.
