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<p class="MsoNormal">Hi Gabe – thanks for bringing this one up. My replies are below<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal"><b>From:</b> wsbarp-bounces@lists.wsbarppt.com <wsbarp-bounces@lists.wsbarppt.com>
<b>On Behalf Of </b>Gabriel Dietz<br>
<b>Sent:</b> Thursday, August 20, 2020 3:10 PM<br>
<b>To:</b> WSBA Real Property Listserv <wsbarp@lists.wsbarppt.com><br>
<b>Subject:</b> [WSBARP] Seattle Ordinance 126116 (Commercial Lease Enforcement)<o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal">Colleagues:<o:p></o:p></p>
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<p class="MsoNormal"><br>
I would appreciate a discussion, and any insights, with respect to Seattle Ordinance 126116 (linked
<a href="https://seattle.legistar.com/LegislationDetail.aspx?ID=4590650&GUID=D9CC697B-125B-4F96-89BE-16DBCF967382">
here</a>) regarding prohibition of enforcement of commercial leases. <o:p></o:p></p>
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<p class="MsoNormal"><br>
My questions include, among others:<o:p></o:p></p>
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This appears to be a blanket prohibition against enforcement of rent and triple net charges against tenants and guarantors for small businesses. Do you read this any different way?<o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="color:red">I WOULD AGREE. ONE WOULD EXPECT SOME TIME LIMITATION, BUT THIS SEEMS TO BE OPEN-ENDED.
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:red"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="color:red">2(A) STOPS THE OWNER FROM ENFORCING ONLY THROUGH THE EMERGENCY AND 6 MONTHS AFTER.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:red"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="color:red">BUT 2(B) SAYS THE LEASE IS UNENFORCEABLE AGAINST A GUARANTOR IF THE BUSINESS CLOSED OR CEASED OPERATIONS DUE TO PROCLAMATIONS. NO TIME LIMIT.<o:p></o:p></span></p>
<p class="MsoNormal"> <o:p></o:p></p>
<p class="MsoNormal"><br>
Do you read any time limits in Subsection 2(B) on page 5?<o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="color:red">2(B) – INTENDED OR NOT – APPEARS TO STOP COLLECTION OF ANY RENT AND CAMS IF THE BUSINESS CLOSED DUE TO THE PROCLAMATIONS.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:red"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="color:red">SO IF THE BUSINESS MEETS THE DEFINITION OF CLOSED OR CEASED OPERATIONS, THEN THE LEASE IS NOT ENFORCEABLE AGAINST INDIVIDUAL TENANTS OR GUARANTOR.<o:p></o:p></span></p>
<p class="MsoNormal"><br>
Do you have any thoughts on the takings clause and contracts clause arguments as applied to this rule?<o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="color:red">ALL THESE ORDERS AND PROCLAMATIONS POTENTIALLY RUN AFOUL OF THE TAKINGS CLAUSE. I HAVENT RESEARCHED THAT ISSUE, BUT IT SEEMS DEFERRING COLLECTION IS A LOT MORE LIKELY TO SURVIVE A CHALLENGE THAN TERMINATING CONTRACTUAL
RIGHTS PERMANENTLY.<o:p></o:p></span></p>
<p class="MsoNormal"><br>
Any other thoughts or comments regarding the effect this rule will have on landlords and tenants are appreciated.<o:p></o:p></p>
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<p class="MsoNormal"><br>
Thank you,<br>
Gabe Dietz<o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal" style="mso-margin-top-alt:auto;background-image:initial;background-position:initial;background-repeat:initial">
<span style="font-family:"Arial",sans-serif;color:black">Gabriel A. Dietz<br>
Partner<br>
(206) 451-3859</span><o:p></o:p></p>
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<a href="mailto:gabe@hdpnw.com" target="_blank"><span style="font-family:"Arial",sans-serif">gabe@hdpnw.com</span></a><o:p></o:p></p>
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<a href="http://www.hdpnw.com/" target="_blank"><span style="font-family:"Arial",sans-serif">www.hdpnw.com</span></a><span style="font-family:"Arial",sans-serif;color:black">
</span><o:p></o:p></p>
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<o:p> </o:p></p>
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