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New Viansa owner hopes to resurrect original vision

SONOMA – A New York-based hedge fund that acquired Viansa Winery & Italian Marketplace out of bankruptcy late last year has proposed

$5.5 million in upgrades to the property to help restore the vision of founders Sam and Vicki Sebastiani and recoup the fund’s $55 million investment.

Laurus Funds is looking to have a fresh start with an operation that has been plagued with regulatory compliance issues and management foibles in the past several years as the 168-acre property at the south end of Sonoma Valley passed from the Sebastianis to former owner 360 Global Wine.

Going back to the vision the Sebastianis started with in 1989 will entail replacing or removing several buildings and temporary structures, changing the wastewater system and scaling back the approved 2001 expansion plan, according to Laurus partner Lloyd Davis, who serves as president and chairman of Viansa.

Laurus, which has $2 billion invested in 145 companies globally, is so committed to maximizing the revenue potential at Viansa that Mr. Davis now oversees his portfolio responsibilities half the year from Sonoma.

Laurus was the largest investor in 360 Global Wine Co.’s 2005 acquisition of Viansa from the Sebastianis for $31 million. The fund’s $40.5 million debt equity bid for Viansa won out in bankruptcy court.

Laurus also plans to start construction as soon as the new plan is approved. Construction would be staged and screened to prevent disrupting the property.

“When we enter into a situation, we look to realize value by looking at the spirit of the investment,” Mr. Davis told the Sonoma Valley Citizens Advisory Commission last week.

The panel, which counsels county boards and commissions on land-use issues, gave a unanimous recommendation to the Board of Zoning Adjustments on the proposal for a minor use-permit modification.

That “spirit” Mr. Davis wants to revive is Mr. Sebastiani’s club-focused marketing model, revolving around a variety of wines, a club for foods that go well with Viansa wines and picnicking opportunities overlooking the 112-acre wetland Mr. Sebastiani helped create for migratory birds.

The proposed facility plan includes replacing the 3,800-square-foot white “Le Mura” temporary hospitality tent next to the landmark marketplace building at the south end of the property with a structure that mirrors the architecture of the marketplace. Other structures to be removed are trailer offices, kitchen facilities and a house at the north end of the property.

The 2001 approved expansion allowed for wine production of up to 150,000 cases a year in two wine-making buildings totaling 35,000 square feet. One was to be on the Viansa property, connected to the other by a wine storage tunnel on the adjoining vineyard property owned by Jordan Smith, who also sold grapes to Viansa.

Mr. Smith is no longer part of the venture. Part of the current proposal includes excluding Mr. Smith’s property and allowing for just a 15,000-square-foot winery producing up to 40,000 cases a year.

Laurus would submit plans for the winery to produce higher-end estate wines and an adjoining wastewater treatment pond at a later date.

Currently, Viansa produces 55,000 cases of wine a year in a facility on Eighth Street East near Sonoma. That facility is permitted to produce 75,000 cases a year.

North Coast wineries have been expanding their hospitality offerings to attract and cater to club members as part of a direct-sales strategy that can offer higher profit margins than wine sold through distributors.

Viansa boasts one of the largest clubs around, and the proposed Viansa plan includes a 2,175-square-foot “Tuscan Hall” tasting room for club members.

Project architects are Michael Palmer of Santa Rosa and MacNair Landscape Architecture, also of Santa Rosa. The Fifth Resource in Cotati is the project manager. Adobe Associates of Santa Rosa provided civil engineering.