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16. SUBSEQUENT EVENTS
12 Months Ended
Dec. 31, 2012
Subsequent Events [Abstract]  
NOTE 16. SUBSEQUENT EVENTS

In December 2012, the Board of Directors approved a significant remodel and expansion of the Winery’s hospitality center.  The Board approved a total project cost of up to $4.5 million.  Features of the remodeled and expanded facility include additional barrel storage capacity, a club-members tasting room, a larger general public tasting area, enhanced kitchen services, new spaces for hosting smaller parties, expanded deck seating to capitalize on views from the winery, and a new lawn terrace for large, outdoor events.  Management believes that these enhancements will be critical in supporting the future growth of direct-to-consumer sales of Company wines.  Construction began in February 2013, and is expected to be finished before the end of 2013.

 

During March of 2013, the Company entered into a new, $2,000,000 construction loan agreement with Farm Credit Services.  The proceeds from the loan will be used to pay for construction costs of the hospitality center remodel and expansion.  The Company expects to draw on the construction loan during 2013.  Repayment of the loan will be made in equal monthly payments, estimated at approximately $15,500, over the 15 year life of the loan.  The loan bears interest at a rate of 4.75%, and is collateralized by real estate and equipment. The loan is subject to the same covenants as the existing debt to Farm Credit Services.