Tahoe Wellness Cooperative in a legal battle with landlord, dispensary license at jeopardy

There is a legal battle in South Lake Tahoe that has put a long-time resident against the owner of the City's lone medical dispensary, Tahoe Wellness Cooperative (TWC).

Patricia (Patty) Olson, now 92-years-old, and her late husband Neal owned and operated Young's Bijou Lodge, which was where the Bijou CVS and Bijou Center (Center) are now located. Since 2015, health issues including blindness have caused Patty to reside in an assisted living facility in Sparks. Her son Patrick has been managing the center for her in her absence.

According to court documents obtained by South Tahoe Now, in March, 2015, Bass approached Patrick, about purchasing the Bijou Center for $6.9 million. His Tahoe Wellness Collective is located in the Bijou Center on Highway 50 and he wanted to buy the whole building and Olson's residence on Bal Bijou Road. Paperwork was drawn up and Bass requested Olson to not lease out any unoccupied units as he had plans for the Center. It was in May of that year that TWC was raided and Bass's financial partners in the purchase backed out.

In December of that year, according to the documents, Bass asked the Olsons to give him another chance when he learned of two potential buyers for the Center entering the picture and talking to Patty Olson. During the year, the legal statements say Bass didn't always pay promised rent, leaving the Olsons financially strapped.

Also stated in those documents, Cody Bass started visiting Olson in Sparks, Nev. after she retained an attorney in January, 2016 to represent her in the sale of the Center. In those documents, Olson said Bass informed her during one of those visits that her son Patrick was not acting in her best interest (which she says she later learned was false).

Patty says Cody had her sign a paper in February that he told her was a form that gave him 30 days to put together an offer to buy the Center. "He assured me it was non-binding," Olson states in the document.

It turns out that document was an option to buy the Center from Olson, according to Olson's lawyer, Bruce Grego of South Lake Tahoe.

In the court document filed in El Dorado County Superior Court on July 5, 2016, Olson said Bass returned to Sparks again in March and had her sign another document to give him 30 more days to get the purchase together.

One team of Bass lawyers, Leland, Parachini, Steinberg, Matzger & Melnick of San Francisco have their own complaints filed in court on May 12, 2016 stating the scenario about their client manipulating Olson are "dubious and legal attacks against Bass."

They state that Bass believes Patrick Olson's behavior during the interactions caused the breach of contract and "resulting harm to Mr. Bass."

As in many civil cases, each side has their story and it will be played out in court.

Grego filed three "Cause of Actions" surrounding Bass's visits to Sparks. They are accusing Bass of Elder Abuse, Fraud and Intentional Interference with Business Relations.

It is because of these legal proceedings that Bass has been told he is losing his medical marijuana dispensary license since part of that procedure includes approval of the owner of the building it is located. Olson will not sign off on the required paperwork.

Bass told South Tahoe Now that a jury trial scheduled to start February 6, 2017 will set the record straight. That date will be too late for the dispensary permit should the City Council vote against his appeal on December 13.

"Between now and February the court ordered that Bass be allowed to stay open because he has a valid lease," Henry Wykowski, Bass' lawyer, told South Tahoe Now. "Now there is pressure on the part of the City of South Lake Tahoe. They told Cody his application was denied because part of the process is you need the consent of the landlord to operate, and now the landlord is withholding that consent."

"We want to resolve this in an amicable manner," added Wykoswki. "We will ask the City not take any action until we go to court (in February)."

"Cody has thousands of regular patients that he serves," said Wykowski. "There is something fishy here." According to Bass' permit application, they serve 37,650 patients in South Lake Tahoe.

Wykoswki represents major dispensaries across the country, and said he has done most of the major cannabis litigation for the last ten years. He will be at Tuesday's City Council meeting with Bass. That portion of the meeting is scheduled to start at 2:00 p.m.