Denver Bluegrass Bar Fears for Future Amid Colfax Construction

Except for the sounds of the Grateful Dead playing through the speakers, the Velvet Banjo is quiet on a Friday afternoon. Just one person has ambled in to get a beer at the bar, and from the window you can see a trail of cars slowly maneuvering their way through the construction outside.

The Bus Rapid Transit construction project on East Colfax has been wreaking havoc on businesses since it began last fall, and the newgrass bar at 741 East Colfax Avenue has been no exception, says Scottie Sindelar.

According to the co-owner, general manager and self-proclaimed "head dishwasher" of the Velvet Banjo, "there's definitely a fear" that the business could close, but Sindelar and the team aren't throwing in the towel just yet. Other Colfax bars such as the Squire and Lion's Lair are also suffering (still other spaces have closed, such as Middleman), but they have the slim advantage of being longtime local institutions. The Velvet Banjo only opened late last fall, Sindelar points out, just before the construction moved to its block.

"They've been doing a majority of the work right in front of us for the last few months," Sindelar says, estimating that the construction obstructions have led to at least a 17 percent decline in business. Velvet Banjo had applied for a Business Impact Opportunity Fund grant from the city, but didn't get it. Timing is a problem here, too: Eligible businesses (among other requirements) must have had a 2024 gross revenue between $30,000 and $5,000,000, and demonstrate a 20 percent or greater revenue decline.

"The problem is you're supposed to be able to show that this disrupted your business and show the numbers from before to now, but we were brand-new," he notes.

With a staff of just ten people, Sindelar, who helped renovate the bar from the beginning and worked his way up the ladder, has been wearing many hats, getting behind the bar, washing dishes and doing everything he can. "I have to be hands-on to get the full spectrum of what's going on," he says. "There's a level of respect we all have for each other."

The Velvet Banjo opened with the promise of a far more welcoming atmosphere than its infamous predecessor, Sancho's Broken Arrow, the Deadhead bar owned by alleged rapist Jay Bianchi that closed in 2022 after a string of controversial incidents. And it's succeeded in that respect: Located steps from the Fillmore Auditorium, the Velvet Banjo has been a great spot to post up after shows and down some local brews while jamming to bluegrass bands. It stages live music consistently on top of hosting open-mic nights, and it has a killer daily happy hour, too: free pool from 3 to 6 p.m., buy-one-get-one draft beers, half-off well drinks.

"Everybody who's walked in has been impressed," Sindelar says. "Sure, there are some missing Sancho's; they miss what it was. But over time [they say], 'Congratulations, the place looks great; it took me a minute to adjust to it.' It takes characters to build character, and that's what we're going off of."

While Velvet Banjo can still be hoppin' on the weekends or after shows, the foot traffic that the owners looked forward to has completely diminished during construction, which won't wrap until next year. The bar has lost parking, too. "When five o'clock, six o'clock rolls around, there are more people, but overall there's been a decline of people walking around. Business is coming and going, which is scary," he says. "But I understand what our challenges are and how to keep doing what we do, because I feel gratitude for people who are coming in."

That means putting in more hours, but it's necessary. The bar hasn't been breaking even, and "labor costs have been one of the top challenges with sales declining," he says. "You have a steady roll of payroll labor. Luckily for me as general manager, it's bartending experience galore and I'm jumping back there myself. It's a boots-on-the-ground scenario, trying to create balance within our staff of giving people enough shifts to make a living, plus as well our business standpoint."

He says he's been working with a local group, We Back the 'Fax, and will be attending more Denver City Council meetings, as well. Owners of Colfax bars, restaurants and shops have shared their woes at BRT meetings, and "we recently spoke about putting together a coalition of local businesses," Sindelar says. "We know that this is affecting all of us in one way or another, whether we go to some city council meetings, whether at BRT meetings, we have that voice on what we would like to see or how the city can work with us to keep our doors open. So that's something in the works."

In the meantime, Sindelar is maintaining a favorable outlook. "In another year or two, this area could look drastically different in a positive way. What the city shows us in the schematics and drawing boards looks beautiful," he says, adding that the dedicated center lane for rapid bus service would inevitably make public transit more accessible and enliven the area.

He has experience that many don't in overcoming challenges. "From my standpoint, it's perseverance. I went through some cancer scenarios for the past five years and I'm now on the other side," he says. "But during that time, I had perseverance, and that's where I'm at now with this business, these challenges:  All right, persevere."

The Velvet Banjo is at 741 East Colfax Avenue; see its events schedule at velvetbanjo.com.