Bankruptcy complicates ownership, tenancy in SLT
The future of the commercial strip housing the Tahoe Wellness Cooperative in South Lake Tahoe as well as the tenants remains in limbo.
This is because property owner Patty Olson has filed chapter 13 bankruptcy. Prior to that filing the property was in foreclosure.
Cody Bass, founder and executive director of the medical marijuana collective, has been trying to buy the property for a year. He is suing Olson for breach of contract. Attorney Bruce Grego had been representing Olson, but is no longer involved.
The city is going after Bass because he doesn’t have a valid permit to operate his business.
“I am not certain what will happen, but it does not change the city’s requirement that the owner consent to the continued operation of a marijuana dispensary and TWC has not provided that consent,” City Attorney Tom Watson told Lake Tahoe News.
The city and Bass issue is slated to go to trial in late June.
— Lake Tahoe News staff report
What a HUGE waste of taxpayer dollars…. The City Attorney must have nothing better to do these days. It is well known that the owner did not sign the continued operating consent because she is in foreclosure and now bankruptcy. Unless there is a good reason to terminate tenancy, the continuation of any tenancy should be allowed until the ownership matter is resolved – even if it is month-to-month during the interim. That puts some money in the City coffers during the interim. No new tenants would sign a lease on a property in foreclosure or bankruptcy! What does the City hope to gain here by closing the doors on the business while waiting for the results of the bankruptcy or foreclosure? Rediculous!