zoning change

[HBD]

My property management company is planning to change my zoning from a light industrial zone to a commercial/mixed use zone. I know that I'm only suppose to be in a light industrial zone. Their rep told me that it wouldn't affect me and that I would be grandfathered in.

I'm not a real estate guy and don't have a real estate lawyer. Plus I don't really trust the management people. Is this going to affect me? If so how? Feds, State or locally. Please reply.

[grehorst]

My property management company is planning to change my zoning from a light industrial zone to a commercial/mixed use zone. I know that I'm only suppose to be in a light industrial zone. Their rep told me that it wouldn't affect me and that I would be grandfathered in.

I'm not a real estate guy and don't have a real estate lawyer. Plus I don't really trust the management people. Is this going to affect me? If so how? Feds, State or locally. Please reply.

I suppose it depends on how your local authorities interpret their regs. Where we are, it's understood that alcohol being a hazard has to be in a "heavy industrial" zoned space. That being said, variances are allowed and we got one because we are in an "industrial mixed" use zone. There was a fairly extensive application process that we will have to go through again when our lease is up in 10 years. After getting the zoning requirements met you may need to get "hazardous occupancy" due to the amount of alcohol being processed, which could significantly add to your build out costs. Feds don't care much, they have a blanket statement to the effect of "must meet local regs" and do nothing beyond asking you if you have done so. State for us wasn't an issue except to meet agriculture dept needs.

Good luck!

[coop]

The same goes here. Right now if zoning changed we would be grandfathered in. But if I change anything within my building that would effect the rating of my building then it would be up for review at that time. Many many businesses, not just distilleries have been zoned out of their location and this is at the whim of the politics in your area. coop

[Beauport Bob]

From an old New England Yankee: Do not trust them.

Terms like "Grandfathered In" "Retro Permitted" and the like are often stated to appease and gather trust until the fact occurs then you'll hear "who would have guessed" or "can you believe what they did to us?". All the while the development team goes home to bed while you are out of luck. Then you'll here "well lets look at another location that may be better suited for you", and for whatever self serving motive they may have. At best, as Coop mentioned, you will be limited to your current situation. And do not assume it is automatic. It will still require some sort of advocacy from you.

Find out, or at least confirm, their plans! Go to the public hearing meetings. Planning Board, Varience Boards, Health Boards and the like. Make sure you are seen.

Intellegently review your lease. You do not want to give up options or protections you may have written in. Seriously attend to any notifications you get. Or do not get. Can you believe somtimes they find the sensitive ones may have been returned "undeliverable".

And also, Commercial/mixed use. "Mixed Use" sounds like residential. I'm sure the TTB would have something to say about attached residential or attached anything. What does a local Management Rep know of your DSP permit to say don't worry it won't effect you? How long did any of us have to spend with the regs to only slightly understand what effects us.

Prepare for the worst scenario, get everything in writing, look both ways (not a joke, always look at problems from reverse direction..often a solution appears) when the time comes celebrate you were prepared and defended yourself and your business. And after all we have to be businesspeople and take care of things like this. If only we could just create and sell.

I hope I do not come across as bitter. The fact is in a past career, as some of us have, I was a commercial banker. I have see many examples of when bad things happen to good, trusting, people.

This rant may or may not apply to you, Rinna, but it may help someone.

By the way, a big red flag... You stated you already do not trust them.

Cheers and good luck,

Bob

[HBD]

Thanks to all. I suspect that if nothing drastic happens now, that something will come up at the end of my lease in 4 years. BTW, I never got any letters or anything regarding counsel meetings. I did, however, get the management people dropping in to nonchalantly bs and mention the meeting. That was two days ago, while I was super busy, and I didn't remember they were going to talk about the zoning change until it was too late.

Thanks again for your comments. I'm not sure anything will happen, and if anything does, I'm sure they'll be responsible to pay for my moving and setup expenses.

[Ralph at Tuthilltown]

Which State are you in? A lot depends on the State code as it applies to Farm Operations vs local zoning code. You may want to check with the State Department of Agriculture.