Denver Life

The Pearl Property Seized by the City for Unpaid Taxes

The locks are changed, and bills for over $56,000 taped to the doors of the Mercury Cafe building.
a tax seizure notice on the door of The Pearl
The Pearl property at the Mercury Cafe building has been seized due to The Pearl's unpaid taxes.

Patricia Calhoun

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A storm of people raced to save The Pearl, Denver’s only lesbian bar, raising more than $83,000 via GoFundMe over the weekend after the bar announced that it couldn’t afford to stay open. But by April 14, the clouds had cleared to reveal that The Pearl’s issues were more than just financial, with the business dissolving its LLC and refunding those who had donated to the GoFundMe.

The poets, dancers, musicians, tarot readers and astrologers who have been meeting for decades at 2199 California Street, the iconic Mercury Cafe building that The Pearl had been leasing for a year, were caught in the crossfire, but building owner Danny Newman assured the groups that those who had events through the Merc would continue to have their dates and access to the enue, and swing dancers met in the space on the evening of April 14.

a tax notice on the door of The Pearl
Nobody can get in there now.

Patricia Calhoun

But now, nobody will be able to get into the building. The City of Denver has changed the locks and seized the property in the building because of unpaid sales and occupational privilege taxes by The Pearl; one document lists $53,869, a second $2,386.43.

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“The City and County of Denver placed a distraint warrant on this business earlier today,” Denver Department of Finance Communications Director Laura Swartz wrote in an email on April 15. “The business owes over $56,000 in unpaid taxes, the vast majority of which are sales taxes. Sales taxes charged to customers and collected by businesses must be remitted to the city, as these are the taxes that pay for critical public services.”

On April 14, Pearl co-owner Ashlee Cassity took a call from Westword during her trip back from France and said that although the LLC had dissolved, “We spoke with our liquor license attorney, and we’ll be operating for one farewell party where all of the drinks and door proceeds will be given to staff.” That doesn’t seem too likely now.

“Other owners blamed me for back taxes, but the taxes were never my responsibility,” Dom Garcia, another Pearl co-owner, told Westword. “I have proof of that in our operating agreement, but they blamed me.”

They’re probably wishing they had that $83,000 right about now, though.

Keep an eye on westword.com for updates on this developing story.

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