BLACK MOUNTAIN, N.C. (828newsNOW) — Black Mountain officials say they spent more than three years working with Oak & Grist Distilling Co. to resolve fire code and building code issues before ordering the business to close its indoor tasting room until safety concerns are addressed.

In a detailed timeline provided to 828newsNOW, town officials said the decision was prompted by the discovery of more than 4,000 gallons of combustible distilled spirits stored inside the building, along with deficiencies in the fire alarm and sprinkler systems.

The statement comes after Oak & Grist owner William Goldberg said the town’s order caught the business off guard and could jeopardize its future.

2023 discussions

Town officials said discussions began in April 2023 after Oak & Grist contacted the town about expanding barrel storage at its facility on Grovestone Road.

Goldberg acknowledged those discussions occurred but said they focused solely on a proposed expansion — not the distillery’s existing operations.

“At no point during that conversation in 2023, nor in the time since, did the town give us any verbal or written communication stating that our existing facility was out of compliance,” Goldberg told 828newsNOW.

According to the town, staff spent months researching state building and fire code requirements and consulted with the North Carolina Office of State Fire Marshal. Officials said Oak & Grist was informed that any expansion would have to comply with either the 2018 North Carolina Building Code or use Chapter 40 of the 2024 North Carolina Fire Code as an alternative compliance method for storing distilled spirits.

Town officials say those earlier discussions are relevant because they believe Oak & Grist was informed during the planning process how state building and fire codes would apply to storing larger quantities of distilled spirits. Goldberg disputes that characterization, saying those conversations never addressed whether the existing facility complied with code.

Expansion project ends, dispute begins

The town said meetings continued through 2023 and 2024, including a conference call in April 2024 during which officials said all parties agreed any future project would have to follow one code path or the other.

Officials said work on the project later stalled after Tropical Storm Helene and communication from the owner ceased.

Goldberg said Oak & Grist ultimately chose not to move forward with the expansion because of the financial impact of recovering from Helene.

He said the abandoned expansion project and the current enforcement action are “very separate” issues and that no one from the town raised concerns about the existing facility during annual inspections conducted after those discussions.

“We’ve been in operation for nine years and nobody has ever raised concern about our existing facility as it has been operating,” Goldberg said.

Annual inspection raises concerns

During the distillery’s annual fire inspection on June 1, town officials said inspectors found 77 barrels containing about 4,081 gallons of distilled spirits inside the building.

Officials said they determined that amount of combustible liquid, combined with deficiencies in the fire alarm and sprinkler systems, posed a significant public safety risk that required immediate action.

Goldberg said the barrels have been stored in plain view for years and that the quantity has not changed significantly during recent inspections.

“The barrels are in plain sight,” he said. “Somebody from the town that walks through there every year should have noticed that a long time ago.”

The town also cited deficiencies in the fire sprinkler system and said the fire alarm system had not received its required annual inspection.

Goldberg said the sprinkler contractor completed its annual inspection shortly after the town’s inspection and repaired all deficiencies identified during that inspection by July 7.

He said the fire alarm inspection had already been scheduled for the earliest available appointment in August and has since been moved up after a cancellation.

“We have been and continue to respond to absolutely everything that the town has found,” Goldberg said.

Compliance plan underway

A meeting involving Oak & Grist ownership, its design team and town officials was held July 14 to discuss compliance options.

According to the town, Oak & Grist may continue operating if it either closes the indoor tasting room while serving customers outdoors or temporarily relocates the stored distilled spirits outside the building.

Under the town’s order, employees may continue working inside the building, but customers are not allowed inside until the storage issue is resolved or the barrels are relocated.

Although the North Carolina Office of State Fire Marshal recommended allowing 30 to 60 days for compliance, Black Mountain officials said they extended the deadline to 90 days to reduce the economic impact on the business.

Goldberg said Oak & Grist immediately hired architects, engineers and a contractor to develop a compliance plan but said completing the work within 90 days will be difficult.

“To renovate a building, get plans, get approval of those plans and complete construction in 90 days is a very difficult timeline,” he said.

Still, he said the company intends to comply.

“We are 100 percent complying and making every effort to come up with the solution,” Goldberg said.

As of July 20, town officials said the sprinkler system repairs had been completed, according to the company’s contractor, but Oak & Grist had not yet requested a reinspection. Officials said the required fire alarm inspection remains pending.

The town also said it is investigating possible fire water supply concerns throughout East Side Business Park after discussions with the distillery’s fire protection contractor.

“The Town is legally obligated to ensure the safety of the public while also balancing the economic hardships code enforcement may cause,” Planning Director Michelle Kennedy, Fire Chief John Coffey, Fire Marshal Doug Morrow and Chief Code Inspector Rick Burton said in a joint statement.

“Improper storage of this amount of combustible materials poses significant risk to the public, including rapid fire spread, structural collapse and environmental contamination.”

Competing interpretations

Goldberg said Oak & Grist believes the dispute centers on differing interpretations of changing state fire codes governing barrel storage.

He said the distillery has operated under its certificate of occupancy since 2017 and that newer provisions added in the 2024 North Carolina Fire Code specifically address storage requirements for distilled spirits.

For now, the distillery remains open for outdoor service while it works toward compliance.

“We’re open for business,” Goldberg said. “We invite the community out to come try our products.”