Neighbors fighting Buffalo Trace expansion cite whiskey fungus, property values, traffic

Janet Patton
·4 min read

Kentucky’s $9 billion bourbon industry is booming, with distilleries planning more warehouses to age whiskey to meet growing demand. But plans for a major expansion of the Franklin County-based Buffalo Trace Distillery into Anderson County are drawing opposition from the would-be neighbors.

“This is a quick cash grab on the part of the county, and it’s just being pushed through by Buffalo Trace,” said Cody Alexander, a local resident who opposes the placement of the warehouse complex, which would be in a rural area on the outskirts of Lawrenceburg.

He and his neighbors are worried about whiskey fungus, which feeds off the alcohol fumes released by aging barrels and blackens buildings and trees. They also have concerns about increased truck traffic on the two-lane state road and the potential fire hazard of so much flammable liquid nearby.

Buffalo Trace said in a statement that the distillery is “committed to working with local officials to minimize any impact to the community.”

In April, the Frankfort bourbon maker announced plans to establish a new campus off of Hwy 151, just outside of Franklin County. Plans call for building up to 24 barrel warehouses on 450 acres on Graefenburg Road.

Each warehouse would hold about 60,000 barrels of whiskey, meaning once full the site would age about 1.4 million barrels. Under Kentucky’s existing taxes on aging spirits, that could generate millions in taxes a year for the school district and local governments.

Partners Cody Alexander and Shea Wells have concerns that the value of their home will drop if a proposed Buffalo Trace bourbon barrel warehouse campus is built directly across the street in Anderson County off of Highway 151 outside of Lawrenceburg. A group of neighbors have formed to petition and protest the zoning change and construction for various reasons including safety, health, property values and more.
A 450-acre farm on Graefenburg Road off Highway 151 will be developed into a new bourbon aging campus for Buffalo Trace. Neighbors who oppose the project are fighting the plan.
A 450-acre farm on Graefenburg Road off Highway 151 will be developed into a new bourbon aging campus for Buffalo Trace. Neighbors who oppose the project are fighting the plan.

When the news was announced, county leaders were excited. Anderson County Judge-Executive Orbrey Gritton told The Anderson News he was “elated” while Lawrenceburg Mayor Troy Young said more projects could be coming.

Neighbors oppose bourbon warehouses

But several families who live in the neighborhood are less enthused. Alexander said they aren’t opposed to Buffalo Trace coming into Anderson County but think there are better locations.

Alexander, who lives directly across from the proposed development, said recently that they are very worried about potential traffic on the two-lane state highway, which he said has already seen plenty of accidents.

Shea Wells and Cody Alexander live directly across from the site of a proposed Buffalo Trace bourbon barrel warehouse campus in Anderson County that would hold a proposed 24 rickhouses which could hold over 1 million barrels of whiskey.
Shea Wells and Cody Alexander live directly across from the site of a proposed Buffalo Trace bourbon barrel warehouse campus in Anderson County that would hold a proposed 24 rickhouses which could hold over 1 million barrels of whiskey.
Partners Cody Alexander and Shea Wells are worried about traffic on the two-lane highway that leads to the planned Buffalo Trace barrel warehouse campus. But the distillery says it anticipates about only about 10 trucks a day will travel that route.
Partners Cody Alexander and Shea Wells are worried about traffic on the two-lane highway that leads to the planned Buffalo Trace barrel warehouse campus. But the distillery says it anticipates about only about 10 trucks a day will travel that route.

“That Highway 151 is a very dangerous highway,” he said. “No one follows the speed limit. ... When you add the prospect of additional transportation, it increases the danger for sure.”

In a statement, Buffalo Trace said that the distillery does not have concerns about the highway.

“Traffic studies we have conducted for other sites show bourbon warehouses are not significant traffic generators. We are projecting to likely have 10 trucks a day go to the new warehouses,” according to the statement. Buffalo Trace does not plan to bottle on the site.

Whiskey fungus, fire concerns

Barrels of bourbon aging at Buffalo Trace in Frankfort release fumes, known in the industry as “the angels’ share” that feed a black whiskey fungus. Neighbors of a potential new warehouse complex in Anderson County are worried about the fungus.
Barrels of bourbon aging at Buffalo Trace in Frankfort release fumes, known in the industry as “the angels’ share” that feed a black whiskey fungus. Neighbors of a potential new warehouse complex in Anderson County are worried about the fungus.
Barrels of whiskey aging at Buffalo Trace distillery in Frankfort. Buffalo Trace has proposed building a new bourbon barrel warehouse complex in Anderson County. But neighbors are fighting to have it moved.
Barrels of whiskey aging at Buffalo Trace distillery in Frankfort. Buffalo Trace has proposed building a new bourbon barrel warehouse complex in Anderson County. But neighbors are fighting to have it moved.

Property owners also are worried about what whiskey fungus, which feeds off the alcohol fumes, could do to values of their homes, and potential impact on livestock and crops on the nearby farms.

Buffalo Trace said that it has not seen evidence of property values declining around existing sites. “What is referred to as ‘whiskey fungus’ is scientifically known as Baudoinia compniacensis. This fungus and many different species of fungi appear black and are found everywhere in the world, regardless of whether or not a distillery is present,” the distillery said. “There is no evidence that Baudoinia compniacensis causes health issues.”

Alexander also said the rural area has insufficient fire suppression to handle what he called “a pretty sizable fire hazard, with millions of gallons of alcohol right at our front door.”

To mitigate fire hazards, Buffalo Trace said that the warehouses will exceed the local fire code. “We are installing a fire water tank that will hold half million gallons of water. We are installing two fire water pumps on the property. Each barrel warehouse will have a sprinkler system,” according to the distillery. The warehouses will be monitored 24 hours a day, seven days a week, and each warehouse will be built with containment berms.

What’s next for Buffalo Trace project

The group from the neighborhood took their concerns to the zoning board but on May 10 the board voted 4-3 to approve the necessary change to allow the plan to move forward.

It’s expected to come before the Anderson County fiscal court in June.

This isn’t the first time that an expansion by Buffalo Trace has run into a roadblock. Plans to place bourbon barrel warehouse on a farm on Peaks Mill Road near the Elkhorn Creek also have been challenged by Franklin County residents.

Buffalo Trace, which is owned by Sazerac, makes some of the most popular bourbon brands including Buffalo Trace, Weller, Blanton’s, Elmer T. Lee, Eagle Rare, E.H. Taylor Jr. and the rare Pappy Van Winkle line.