[WSBARP] Lease termination clause for lease to Marijuana business

[Andrew Hay]

I’ve taken a stab at an addendum for this kind of lease this and invite
comments:

 

 

            The parties understand that the Tenant’s initial Permitted Use
involves marijuana production and processing recently authorized by state
law and at least tacitly tolerated by federal government policy
statements.  Tenant shall adhere to all laws and regulations related to
its Permitted Use of the property.  Because the legal status of this
industry involves risk as a result of the uncertain legal status of
marijuana production and processing at local, state and federal levels,
the parties agree to the following provisions, despite any provision of
this lease to the contrary.

 

1.      Landlord retains the right to terminate this lease on 90 days’
notice in the event of a change in law or policy (or interpretation of law
or policy) at any level of government related to Tenant’s past, present or
future use of the Premises that the Landlord determines in its sole
discretion creates an unacceptable risk of prosecution, forfeiture,
adverse tax or financial consequences, or other adverse consequences of
any type whatsoever.  

 

2.      Landlord retains the right to terminate this lease on 90 days’
notice in the event of action or threatened legal action (civil, criminal,
administrative or otherwise) by private persons or entities, government
entities, or any other person or organization against Landlord, Tenant, or
their members, owners, employees or agents, related to Tenant’s past,
present or future use of the Premises.

 

3.      In the event of the commencement of a legal action or a threatened
action for nuisance, trespass, or any legal or equitable claim for relief
of any type whatsoever by any private person or entity, government entity,
or any other person or organization in any way related to the Premises,
Landlord reserves the right to require Tenant to promptly take all
necessary action to terminate any action or inaction by the Tenant giving
rise to the action or threatened action.  If Tenant determines that this
action by Landlord will prevent Tenant from operating the Permitted Use of
the Premises, Tenant shall have the right to terminate the lease on 90
days’ notice.

 

4.      Landlord retains the right to terminate this lease on 90 days’
notice in the event of the arrest of, or commencement of criminal action
against, any owner, member, employee or agent of Tenant for any charge
that Landlord in its sole discretion determines affects Landlord or the
Premises.

 

5.      This addendum shall be construed liberally to provide Landlord
with the authority to terminate the lease.

 

 

 

Andrew Hay

Hay & Swann PLLC

201 South 34th Street

Tacoma, WA  98418

Phone: (253) 272-2400

Fax:     (253) 267-8947

 <http://www.washingtonlaw.net/> www.washingtonlaw.net

 

 

THIS IS A CONFIDENTIAL COMMUNICATION AND IS INTENDED FOR THE DESIGNATED
RECIPIENT ONLY.  IF YOU HAVE RECEIVED THIS COMMUNICATION IN ERROR, PLEASE
NOTIFY THE SENDER IMMEDIATELY AND DESTROY ALL COPIES

 

From: wsbarp-owner at lists.wsbarppt.com
[mailto:wsbarp-owner at lists.wsbarppt.com] On Behalf Of Andrew Hay
Sent: Monday, August 04, 2014 11:28 AM
To: wsbarp at lists.wsbarppt.com
Subject: [WSBARP] Commercial lease termination clause for landlord with
lease to Marijuana grower

 

Has anyone had to draft one of these clauses you would be willing to
share?  i.e., in the event of federal policy change as to enforcement,
preemption, state law change, etc. 

Thanks in advance

Andrew Hay

Hay & Swann PLLC

201 South 34th Street

Tacoma, WA  98418

Phone: (253) 272-2400

Fax:     (253) 267-8947

 <http://www.washingtonlaw.net/> www.washingtonlaw.net

 

 

THIS IS A CONFIDENTIAL COMMUNICATION AND IS INTENDED FOR THE DESIGNATED
RECIPIENT ONLY.  IF YOU HAVE RECEIVED THIS COMMUNICATION IN ERROR, PLEASE
NOTIFY THE SENDER IMMEDIATELY AND DESTROY ALL COPIES

 

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Information provided on this list should not be considered legal advice.
As with all lists - let the reader beware! No warranties or
representations are made as to the accuracy of any information provided.
All opinions and comments in this message represent the views of the
author and do not necessarily have the endorsement of the Washington State
Bar Association nor its officers or agents. 

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