Town owns a building that complies with zoning ordinances for the operation of a medical marijuana dispensary.  Potential dispensary operator has approached Town to lease the building.  The building is in need of repairs and operator proposes to make repairs in lieu of rent for the first few months of the Lease.  Thereafter, the operator will make rental payments to Town.  I am not aware of any law that precludes the Town from leasing its building for a legal business.  I am concerned with the free rent proposal and banking issues re rental payments.

Any thoughts on the lease, rent and banking issues will be appreciated.

Thanks,
Joe Weaver

Joe Weaver
Attorney At Law
405.262.4040
405.262.4058 fax
joe@basslaw.netmailto:agbass@basslaw.net

[cid:image001.png@01D6756D.3A5EE170]
www.basslaw.net
104 N. Rock Island Ave.
P.O. Box 157
El Reno, OK 73036

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I've heard - I think during an OML/OMAG CLE during the past couple of years

• that there is concern that a municipality that permits its property to be
  used in connection with a medical marijuana business could place its federal
  grants and loans at risk (or lose the opportunity).

I have not heard of any municipality actually experiencing such
repercussions.  I've advised against it, though, to be safe.  I'm interested
to hear if others have the same concern.

Kim Spady

From: Oama oama-bounces@lists.imla.org On Behalf Of Joe Weaver
Sent: Tuesday, August 18, 2020 2:49 PM
To: oama@lists.imla.org
Subject: [Oama] Leasing of building owned by Town to operator of a medical
marijuana dispensary

Town owns a building that complies with zoning ordinances for the operation
of a medical marijuana dispensary.  Potential dispensary operator has
approached Town to lease the building.  The building is in need of repairs
and operator proposes to make repairs in lieu of rent for the first few
months of the Lease.  Thereafter, the operator will make rental payments to
Town.  I am not aware of any law that precludes the Town from leasing its
building for a legal business.  I am concerned with the free rent proposal
and banking issues re rental payments.

Any thoughts on the lease, rent and banking issues will be appreciated.

Thanks,

Joe Weaver

Joe Weaver

Attorney At Law

405.262.4040

405.262.4058 fax

mailto:agbass@basslaw.net joe@basslaw.net

www.basslaw.net

104 N. Rock Island Ave.

P.O. Box 157

El Reno, OK 73036

NOTICE:
The information contained in this transmission is or may be protected by the
attorney-client and/or the attorney work product privilege and is
confidential. It is intended only for the use of the individual or entity
identified above. If the reader of this message is not the intended
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the accompanying communication is prohibited. No applicable privilege is
waived by the party sending this communication. If you have received this
communication in error, please notify us immediately by reply and delete the
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communication (including any attachments) is not intended or written to be
used, and cannot be used, for the purpose of (i) avoiding penalties under
the Internal Revenue Code or (ii) promoting, marketing or recommending to
another party any transaction or matter addressed herein.

I would certainly advise against it also due to federal ramifications.  Tell them to declare the building surplus and buy it at auction, or transfer it to an ED trust that can sell it to an individual purchaser.  The Town doesn't need to be in the business of leasing to private industry if it can be avoided, especially for a run-down building needing repair (which is a whole other animal in considering the legality of the lease).

Also, if you are in Eastern Oklahoma - who knows how MM laws will be enforceable within the recognized MCN reservation???  The tribes and the FBI can't enforce MM laws as they are in violation of federal law.  If the dispensary is owned by a tribal member, its not legal at this point, is it?  It would be illegal possession and/or distribution.

Lou Ann Moudy
P.O. Box 266, Henryetta, OK  74437
(918) 652-3328

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From: Oama [mailto:oama-bounces@lists.imla.org] On Behalf Of Kimberlee Spady
Sent: Tuesday, August 18, 2020 3:29 PM
To: 'Joe Weaver' jweaver@basslaw.net; oama@lists.imla.org
Subject: Re: [Oama] Leasing of building owned by Town to operator of a medical marijuana dispensary

I've heard - I think during an OML/OMAG CLE during the past couple of years - that there is concern that a municipality that permits its property to be used in connection with a medical marijuana business could place its federal grants and loans at risk (or lose the opportunity).

I have not heard of any municipality actually experiencing such repercussions.  I've advised against it, though, to be safe.  I'm interested to hear if others have the same concern.

Kim Spady

From: Oama <oama-bounces@lists.imla.orgmailto:oama-bounces@lists.imla.org> On Behalf Of Joe Weaver
Sent: Tuesday, August 18, 2020 2:49 PM
To: oama@lists.imla.orgmailto:oama@lists.imla.org
Subject: [Oama] Leasing of building owned by Town to operator of a medical marijuana dispensary

Town owns a building that complies with zoning ordinances for the operation of a medical marijuana dispensary.  Potential dispensary operator has approached Town to lease the building.  The building is in need of repairs and operator proposes to make repairs in lieu of rent for the first few months of the Lease.  Thereafter, the operator will make rental payments to Town.  I am not aware of any law that precludes the Town from leasing its building for a legal business.  I am concerned with the free rent proposal and banking issues re rental payments.

Any thoughts on the lease, rent and banking issues will be appreciated.

Thanks,
Joe Weaver

Joe Weaver
Attorney At Law
405.262.4040
405.262.4058 fax
joe@basslaw.netmailto:agbass@basslaw.net

[cid:image001.png@01D67575.D29C2440]
www.basslaw.net
104 N. Rock Island Ave.
P.O. Box 157
El Reno, OK 73036

NOTICE:
The information contained in this transmission is or may be protected by the attorney-client and/or the attorney work product privilege and is confidential. It is intended only for the use of the individual or entity identified above. If the reader of this message is not the intended recipient you are hereby notified that any dissemination or distribution of the accompanying communication is prohibited. No applicable privilege is waived by the party sending this communication. If you have received this communication in error, please notify us immediately by reply and delete the original message from your system.

Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.