The York Planning Board denied  the expansion of a whiskey distillery over concerns about the values of adjacent properties.

Board members voted Thursday to reject the preliminary application from Wiggly Bridge Distillery to add a 1,700-square-foot addition to its existing distillery and build two new buildings near its Route 1 location. As of Monday afternoon, no appeal of the decision had been filed, according to town officials.

Neighbors had raised concerns that a black film was appearing on the exterior of their homes that was traceable to the ethanol vapors from the distillery.

Whiskey fungus, a byproduct of the whiskey-making process, clings to surfaces and creates a black film, which can be removed by power washing. Researches have so far not found any health risks.

A report conducted by University of Maine said it was highly likely the source of the fungus was the distillery.

David Woods, who started the distillery 10 years ago, vowed in August to fight the decision if he lost the preliminary application, saying the fungus could be found on homes nowhere near his distillery; it didn’t damage property; and that his property was suitably zoned for an expansion.