Grapes or growth?

McMINNVILLE, Ore. — Yamhill County is a sweet sip of Oregon’s natural beauty.

Green vines stripe its hillsides, and farmlands blanket its valley. Wineries that produce legendary pinot noir sprinkle the hills. And the sweeping landscape is largely uninterrupted because of long-standing state laws that protect agricultural land.

It’s a sigh-inducing sight that businessman David Kahn wants to share.

Kahn plans to build the area’s first luxury hotel, with a spa and restaurant. The 50-bed hotel nestled in the hills is based on the Auberge du Soleil in Napa Valley, where rooms rent for $500 to more than $1,000 a night.

Yamhill county officials recently approved the plans to rezone agricultural land for the hotel.

But a number of wineries and land conservationists say the hotel will intrude on agriculture and compete for its water.

On a larger level, opponents worry that it opens the doors to projects that might be waiting in the wings for access to agricultural land. They see a dangerous precedent in a state that has long tried to keep commercial development from supplanting pastoral uses.

“If we want to be taken seriously as a place to grow grapes, we have to respect the land it comes from,” said Jason Lett, operator of Eyrie Vineyards, who has organized a group of wineries to fight the project.

Kahn argues the hotel needs this spot to work — it is secluded, has a priceless view and is conveniently nestled among the wineries. He agrees that at least part of the land can be farmed, and he plans to grow grapes there.

The controversy has quickly become about something more than a view on the hill.

The Oregon wine country has an estimated $1.4 billion economic impact on the state. Nearly everyone, including Kahn’s opponents, want a hotel and support tourism. But they are finding it difficult to strike the balance between needs of the agriculture and the demands of growing tourism.

“(Agriculture) is the driver of the economy at this point,” said David Adelsheim, president of Adelsheim Vineyards. “It is what has made land values go up, brought tourism here — the whole driver is agriculture. The reason this is a desirable place to live and a desirable place to visit is agriculture.”

The wine industry started from scratch in Oregon only decades ago and grew incrementally. But the hotel proposal, the recent sale of a small winery to Ste. Michelle Wine Estates and talk of a wine train running through the region all indicate the area becoming something much larger.

It’s a particularly tricky task to manage development in Oregon, where land use laws have historically limited growth and the state prides itself on its laid-back, rusty-in-the-corners ambiance.

“Oregon has this moment to decide what it wants to be,” said David Millman, managing director at Domaine Drouhin, which would be the closest neighbor to the hotel. “It’s not about David Kahn, it’s not about development, it’s about something bigger.”

Oregon put laws in place in the 1970s that protect agricultural land and require development to remain in line with state goals. This is overseen by the Oregon Department of Land Conservation and Development, which does not support Kahn’s project, saying it does not meet the goals.

“There was an Eden-like quality to what we did in the ‘70s here, and we’ve left that behind,” Adelsheim said. “The world has changed. We always wanted more people to recognize what we’ve done here, and now they have — be careful what you wish for.”

Adelsheim said there is a bit of “Napafication” under way in Yamhill County. And he said the county needs to think about its goals more clearly, as development is likely to continue.