vsaks

Anyone got a DSP on a sublease ?

4 posts in this topic

I know the TTB needs some paperwork filled out by the owner for a DSP. Are there any complications if the space is subleased ?

Regards,

Virag

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Maybe Dave Dunbar can weigh in here.

But, as part of our TTB application, he had us amend our lease to specifically include provisions acknowledging that the landlord understood the intended use of the premise.

 

 

 

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TTB does not care if your lease is a first lease, sublease, or sublease to a sublease to a sublease.  They want to know whether you have a right to conduct the business on the property.  

Silk City's reference to its lease involves a requirement that TTB imposes that the owner acknowledge and consent to the use of the premises as a distilled spirits plant.  The law gives TTB authority to break up the grounds to find hidden pipes, etc.  It is something TTB would never do, because who has hidden popes pumping spirits tax free out the door?  But I suspect that they require the consent because it says that, if the landlord does due diligence, it will not be shocked when TTB arrives in Carharts with jackhammers, wheelbarrows, and a determination to tear up the concrete floor to see where the drains lead.  

I can't think of any other reason that they require the consent.  They do not, for example, in the case of wineries and breweries.  But who knows how they actually came to require certain things for one industry and not the other.  For example, for breweries they require statements of whether the brewer owns the equipment and who holds the mortgage on the property, even if it is leased from a third party.  I don't ask how they decided such things.  I just give them what they want without argument unless it is truly bizarre and difficult.

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Dave,

   Thanks again for your reply. I knew that they wanted a consent signed by the owner. I guess if we sign the sublease, we should put in a clause that the actual owner will provide consent for the use as DSP.

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