Lease Provisions, New Lease

[Michaelangelo]

We are negotiating with a building owner for a new space, and I have been asked to have our attorney research liability issues that are unique to distilleries. We don't need numbers, only the relevant provisions that would be transferrable to the lease.

Assuming that this has been covered in other members negotiations previously, does anyone have any "must have" provisions that they could share? Or a sample of a "standard" lease for a distillery (like one would really exist, ha ha ha)?

[Jedd Haas]

One provision most landlords will want is to be added as "additional insured" on your policy. There will usually be a fee in the range of $50 to $200 to add them. You might also be required to have a liquor liability rider added to the policy if you have a tasting room. Offering these options to the landlord (if they didn't already ask for them) could be a way to generate some goodwill in your negotiations.

[TetonDistillery]

If he wants an attorney to "research" that, then he should have his own attorney do so on his dime.

Once you give an attorney permission to "research" at $200 to $250 per hour, you can expect a bill for $1,000 to $2,000.

Don't fall for it.

[pressure9pa]

Not really what the landlord was after, but I am insisting on an "escape clause" if we fail to get a licesnse due to the facility not meeting a local, state, or federal regulation. Eg, if such an issue comes up, the landlord has the option to fix or let us out, with a reduced rent in the meantime. I had an agreement to this conceptually, but the negotiation fell apart for other reasons.

You don't want to be in a building that a fire inspector or ttb agent finds unacceptable, and then be unable to leave.

[daveflintstone]

Not really what the landlord was after, but I am insisting on an "escape clause" if we fail to get a licesnse due to the facility not meeting a local, state, or federal regulation.

That would be a contingency. Very common in lease negotiations.

[Michaelangelo]

We have done a good job with the fire inspector, but I like the escape clause for the unforeseen.