CAMPBELLSBURG, Ky. (WDRB) -- Rabbit Hole will break ground Thursday on new warehouses on Carrolton Road in Campbellsburg, the first part of the distillery's plan to migrate part of its operations into Henry County.
Rabbit Hole applied for a conditional use permit for bourbon storage, a craft distillery, tasting room and restaurant on Lake Jericho Road in Henry County in June.
People who live in a nearby subdivision, Jericho Meadows, almost ended the project before it started. A group spoke out during the public meeting to protest the application. The "not in my backyard" arguments sited increased traffic and a fear of a so-called "Whiskey Fungus," which is a black substance some say can blanket property near bourbon distilleries.
“We've got concerns about the fungus,” Kathy Jansing said.

Rabbit Hole founder Kaveh Zamanian said in June the group wasn’t large, but “out of respect for those neighbors, we decided to pull the permit.”
Shortly after the public meeting, Zamanian said thousands of people contacted him in support of the project asking him to reconsider.
“After we pulled the application, we got well over 2,000 signatures from local individuals who were either not at the event or decided to chime in later,” Zamanian said.
JP LaVertu lives at one of the closest properties to the Lake Jericho Road distillery.
“It's in our backyard literally, not figuratively,” LaVertu said.
LaVertu welcomes the distillery, because it would be a major shot in the arm for the county, bringing in visitors and generating tax money for the county.
“With increased taxes on the property itself, I think the money coming into the school system and the county in general would be a huge benefit,” LaVertu said.
Supporters say they’re also in favor of the 30 to 40 jobs the distillery will bring at more than $20 an hour on average.
Rabbit Hole is one of many distilleries now planning to into the county. Angel's Envy is building on Cambellsburg Road.
Rabbit Hole will eventually build its distillery on Lake Jericho Road.
“They've gone through the zoning," LaVertu said. "I think they should be allowed to do whatever they want with the property.
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