Pot collective sues for right to buy southwest Santa Rosa parcel

A southwest Santa Rosa pot farm at the center of a neighborhood dispute is suing its landlord to take permanent ownership of the property.

Peace in Medicine, run by Sebastopol City Councilman Robert Jacob, filed a breach of contract claim against landlord Daniel Smith after it said Smith refused to let it exercise an option to buy the 2.5-acre parcel as called for in the 2011 lease.

The pot growers said in legal papers they had been making “above-market” lease payments of $5,400 a month and in May sought to purchase the land and greenhouses for $575,000.

But Smith balked, claiming Peace in Medicine exceeded a 499-plant maximum, nullifying the agreement. Later, Smith offered to sell the land for a renegotiated “fair-market value” but Peace in Medicine refused to pay, the suit said. Then on July 22, Smith issued a 60-day eviction notice, the lawsuit said.

Their suit, filed a week later, accuses Smith of breach of contract, fraud, deceit, trespass and other allegations.

“It’s unfortunate that dealings such as lease and purchase options rise to this level, but it is a good thing we have our California court system to make final judgments in such cases,” Jacob said in an email. “We are a legal medical cannabis organization operating not-for-profit that follows the letter of the law, both state and local.”

He did not respond to a question about the 499-plant issue.

Smith declined to discuss the dispute in detail.

“Tenants violated more than one section of the very agreement they crafted themselves and they knew they were violating it,” Smith said.

“Their rent is based on fair market values,” Smith said. “These accusations are unfounded and deceitful on their part.”

The suit came about a week before neighbor Mary Quinn erected signs in her pasture identifying the Peace and Medicine property and an adjacent home as places where pot was being grown.

Quinn alleged the pot farms, which emit a strong odor, attract thieves, creating a public nuisance. She said her horses were injured by people cutting her fences to get to the pot.

Her banners listed the names of Jacob, Smith and several others and included phone numbers.

Quinn vowed to keep the signs in place indefinitely but she said they were cut down and removed by someone the night of Aug. 20.

She said she has not filed a police report.

You can reach Staff ?Writer Paul Payne at 568-5312 or paul.payne@pressdemocrat.com.?On Twitter @ppayne.