The California Coastal Commission on Thursday approved a long-deferred plan by Tony Magee to develop a brandy distillery in Marshall. The plan would also permanently conserve for agricultural purposes and habitat protection the vast majority of the Lagunitas Brewing Company founder’s 150-acre pasture alongside Highway One at Marconi Cove.

Adjacent neighbors appealed the project’s approval to the coastal commission in 2010 after the Marin County Planning Commission and Board of Supervisors gave Mr. Magee a…