Jack Daniels neighbors balk at buildup of whiskey fungus

For many whiskey enthusiasts, it would be a dream to live near where Jack Daniels ages its whiskey. But for residents of one town, it's turned into a nightmare. The fumes from the alcohol have spawned a black fungus that has overtaken much of the area.

In Lincoln County, Tenn., a thick layer of black residue covers up street signs and clings to roofs and trees. It's called whiskey fungus, and it is an eyesore and a concern for residents like Warren Ferry.

"It attaches wherever it wants," he said.

The fungus breeds from the fumes of aging Jack Daniels. One of the most popular whiskey brands in the world operates six barrel houses in Lincoln County.

Antonis Rokas, professor of biological sciences at Vanderbilt University says, "Every time we have biological activity that releases some alcohol in the environment, that's where we find this fungus."

The alcohol vapors released during the aging process of whiskey can travel hundreds of yards, fueling fungal growth and spread on many surfaces.

Tracy and Warren Ferry purchased their home right before a barrel house was built next door.

"I saw a little slice of heaven. I saw what I felt was a place where time has stood still," Tracy Ferry said.

Three years later, she says, "I have a huge monster in my backyard that's going to ruin everything."

In a statement, Jack Daniels said this type of "microflora" is not uncommon around distilleries, and that they appreciate that some may not like how it looks and the inconvenience it may present.

"Based on the information available, we believe it is not harmful to individuals or their property," the company said.

Rokas agreed, with a caveat.

"We don't know of any patients that have either acquired an infection with the whiskey fungus," he said. "I would add to that, that no clinical studies have been done."

Residents still worry about potential health hazards.

Patrick and Christi Long have sued, arguing Jack Daniels didn't have the required permits for its latest expansion, a plan to build eight more barrel houses.

The company told NBC News it plans to push ahead with that expansion, which they say will bring $1 million in annual tax revenue to Lincoln County.

That's not enough for Patrick Long.

"We will be looking at somewhere between $30,000 and $40,000 a year to clean the mess they're creating," he said.