How does the trend of marijuana legalization mix with the construction industry? When it comes to consumption, the two don’t seem particularly compatible. However, there is an opportunity to create a specialty within the construction industry when it comes to constructing the facilities where marijuana is legally grown and farmed. These facilities must be built to very particular specifications. Plus, with the marijuana industry still labeled as “taboo” by many, competition can be less fierce. The grass isn’t always greener on the other side, however – payment problems that exist on regular old construction projects still exist on projects fearing marijuana grow facilities.
Take a deeper look at this topic: Construction and Marijuana: How Will Legalization Affect the Industry?
Contractor Files Lien For Over $680K Against a Medical Marijuana Facility
The company developing this facility is Cumberland Properties Leasing LLC, and a company named AGRiMED leases the premises and will run the facility. Their plans for this project are pretty grand. To start, a 16,000 square foot facility was built. However, according to the Observer-Reporter, the footprint for the site is a whopping 61 acres – plenty of room to expand the operation. One of the key spokesmen for AGRiMED on this project is Jack Ham. You may recognize the name – he’s a former linebacker for the Pittsburgh Steelers and member of the Pro Football Hall of Fame. As you may recall, the Pro Football Hall of Fame had their own lien troubles recently. But I digress…
The project’s general contractor, Accelerated Construction, is the party who filed the mechanics lien on the project. Apparently, Accelerated Construction performed all labor on the project and provided all materials. After allegedly submitting at least 7 ignored invoices, Accelerated Construction wasn’t left with much of a choice. Because unpaid invoices were piling up, they filed a lien to the tune of $683,831. AGRiMED and Accelerated Construction dispute that any payment dispute occurred between the two parties according to this article from the Observer-Reporter. However, this may stem from a dispute between Accelerated and Cumberland Properties.
This lien may not be a result of a tenant-contractor, but it brings this article to mind: What Happens to Mechanics Lien Rights If My Project is a Tenant Improvement?
Plenty of Time Before Lien Foreclosure
It’s worth noting that just because a lien was filed does not mean that the growery will have to cease operations or that the property will be sold – at least for now. Pennsylvania has one of the longer lien enforcement periods in the nation. Whereas some states have a very brief timeframe during which a lien must be enforced (in California it’s just 90 days), a claimant has 2 years to foreclose a mechanics lien claim. Even with payment issues abound, if the owner and claimant can come to a mutual agreement or payment plan that staves off lien foreclosure, the claimant can wait to pull the trigger on enforcement.