Could a 4 a.m. Closing Time Improve Denver Nightlife?

The Department of Licensing and Consumer Protection is changing the licensing process for Denver venues, and its policy proposal includes a 4 a.m. closing time for nightclubs.

The proposal has been a massive undertaking, according to Molly Duplechian, the department’s executive director, who notes that licensing hasn’t been changed in forty years. “A lot has changed about Denver’s nightlife industry and nightlife scenes since these regulations were created,” she says, “and so we really have been wanting to update them for quite some time now.”

The proposal is a “full repeal” of cabaret and amusement licenses, she says. Taking feedback from venues, neighborhood organizations and nonprofit ONE Denver into account, the second draft of the proposal will be released on May 18, with a virtual feedback session from 2:30 to 4 p.m.

“I can’t begin to state how big of an undertaking this is,” Duplechian says. “To take all of these regulations, repeal them, and start from scratch again. What we are really trying to do, also, is not let perfect be the enemy of the good. … We probably aren’t going to get it 100 percent right and perfect this time, but once we have this system in place, it’s much easier to go back in and pass little changes through city council. It doesn’t have to be forty more years until we do it again, but getting through this first big change will be a huge step.”

There are currently fourteen different licenses that fall under two categories: cabaret licenses, which apply to spots serving liquor, and amusement licenses, for those that don’t. The proposal will reduce these licenses to three: a limited entertainment license, a nightclub license and an adult entertainment license. The proposal also aims to remove some red tape: Right now, a cabaret license is required for such recreation activities as trivia and bingo, but the proposal would eliminate that necessity.

A 4 a.m. Closing Time Only Applies to Nightclubs, Not Bars

Perhaps the most exciting possibility in the proposal is the 4 a.m. closing time for nightclubs. While venues with nightclub licenses would still be required to stop serving alcohol at 2 a.m. — as that is up to the state — a staggered release time could help make the city safer be by removing the let-up crunch, and provide for more entertainment opportunities.

“We’ve heard from businesses that they think there is an appetite for that and that it would be helpful for them,” Duplechian says. “And if that is true, then our hope is there…will be a slower trickle-out of the crowd after 2 a.m. What we see right now is a mass exodus starting at 1:30; it overwhelms law enforcement resources.”

DLCP director of communications Eric Escudero adds that the move could also make rideshares cheaper. “And, what are going to be some of the really cool business ideas that people come up with?” he adds. “Is there going to be a late-night concert series where it starts at 2:30? Is there gonna be a late-night comedy series?

“This is a step forward to making Denver all we can be,” he adds, “as far as truly being the entertainment capital of the Rockies.”

At Issue: How a Nightclub Is Defined

“The hardest piece that we’ve struggled with,” according to Duplechian, is definitions, especially since Denver is home to such multi-layered venues. The proposal currently defines a nightclub as a business with a capacity of at least 100 people that operates after 10 p.m., and whose “primary commercial attraction…is the provision of live music, performances by a disc jockey, [and] a provision of a dance floor.”

Some venue owners and organizations like ONE Denver, which published an analysis of the proposal, believe the definition is too broad. How can you measure what a primary attraction is for Denver businesses, some of which put equal emphasis on food, drinks and music? Duplechian says the department will change the definition in response to feedback.

“There are some key pieces that I think were really just a starting point,” Duplechian says. “The definition of a nightclub, the definition of a nightclub manager, lots of different details, and that’s where we’re in right now, is digging more into kind of the final tweaks of what those details are. … We’re working with our city attorneys right now on workshopping that language to come up with something a little clearer, because that’s one thing that we really want, is businesses having a really clear understanding of whether they need to get the limited entertainment or the nightlife entertainment license.”

Security and Screenings

ONE Denver also takes issue with security and management requirements for nightclubs, saying they could be unaffordable for some venues. The proposal currently states that nightclubs will need “properly licensed security guards” as well as weapons screenings that “may include, but are not limited to,” the use of metal detectors, bag checks, or pat-down searches conducted by licensed security guards.”

The proposal also requires nightclubs to hire a manager who will require a background check, which isn’t anything new, Duplechian notes; they will also need to register with the department. “If you have a liquor license, you’re already required to have a registered manager. Now our definition might be a little bit different, because I think managing the entertainment is different from managing the liquor license,” she says.

Having a registered manager helps the city when issues arise, such as assaults or “a lot of different things that happen in the nightlife industry that not a lot of other businesses see,” Duplechian explains. When businesses have someone in a manager role who isn’t registered, she says, accountability is harder to enforce when things go awry.

“This question of how we define who is a manager and how we define…a nightclub are two of the biggest questions that are going to take the most complex and precise wordsmithing,” she adds.

Duplechian stresses that just because clubs will be allowed to stay open until 4 a.m. doesn’t mean they must, especially if they fear insurance costs will go up, or that the result won’t be worth the longer hours for security and other staff.

“If that impacts their insurance, then that’s a business decision that they would have to make,” she says. “But there is a requirement if you’re in that nightclub category of license, that you have to have some type of security. And that is another area where we are kind of refining the language a little bit based on the feedback.

“We have heard there are maybe some smaller venues that want to stay open till 4 a.m.,” she adds, “but does that mean that everybody has to have licensed security guards? … A lot of those details we’re going to put into the rule after we pass the ordinance, and so that will give us the flexibility to make adjustments.”

Next Steps

Duplechian says the department is in dialogue with venues, neighborhood organizations and ONE Denver to continue making adjustments to the proposal.

“We want to hear from people who run these types of businesses on, like, what is the right ratio of security guards to patrons, and things like that,” she says. “There’s a lot of input that we take from those subject-matter experts, and then we put out a draft rule, and then we hold a public hearing, we take input, we make adjustments, and then we sign and adopt them, and they require signature by both the director and the city attorney.

“So it’s a very formal, public process, similar to going through city council,” she says, “except we don’t have to go through city council, so we can change them a little bit more easily. But it still is a very public process.”

Club owner Regas Christou argued otherwise, but nothing could be further from the truth, according to Escudero, who says that the department has sent numerous emails to stakeholders. “Basically, the only way you don’t know about this is if you just gave the city a false email address or don’t check your email,” he concludes.

To attend the virtual feedback session on Monday, May 18, 2:30-4 p.m., register here.