11/08/2019 | News release | Distributed by Public on 11/08/2019 09:45
Ian Stewart (Partner-Los Angeles) and Bill Gay (Partner-Los Angeles) were quoted in regard to a Law360 article titled '4 Issues with Converting Warehouses to Cannabis Farms,' which appeared on November 6, 2019. The article posits that the most serious risk is that the federal government will step in and take action, but Ian noted that 'I think we can safely say there has been no foreclosure action where there hasn't been some other violation.'
'There is the possibility of a tenant leaving, just defaulting on a loan and maybe leaving some product on site,' said Bill. In that case, the owners would need to call a cannabis liquidator to dispose of the cannabis, which adds cost and can delay re-leasing the building, he added. Bill also noted that warehouse space often has to be modified to bring in extra water, and in multistory buildings, the weight of soil could create issues. Ian also cited what he calls 'creative theft scenarios' involving 'Mission Impossible−style tactics to avoid cameras.'
Both agree that landlords and property owners should look to work with an insurance broker who 'really knows cannabis.'