Here’s what’s changed in Denver’s nightlife licensing proposal

The second draft of Denver’s updated entertainment ordinance proposal is out, and the Department of Licensing and Consumer Protection has made some edits based on feedback from club owners, neighborhood organizations and ONE Denver, a nonprofit dedicated to the city’s nightlife.

“We have two main objectives, which are to improve the safety in Denver’s nightlife economy while we’re also reducing overregulation of entertainment,” Molly Duplechian, the department’s executive director, said during a virtual feedback meeting on May 18. “Really, the goal is that we have a Denver entertainment and nightlife scene that is vibrant, safe and thriving.”

The proposal — which is the first major update forty years — reduces the current 14 license categories to three: limited entertainment, adult entertainment and nightlife entertainment. It still includes the suggestion that a nightlife entertainment business (this does not include bars) can operate until 4 a.m. But liquor service will still be cut off at 2 a.m., since that’s a state requirement.

What’s changed

• In this second draft, “nightclub” has been changed to “nightlife entertainment business,” which is a business that offers live entertainment past midnight. “This change better aligns with our intention, which was to provide clarity for businesses about what license category they fall into,” said Abbey Soisson, senior policy analyst, during the virtual meeting.
• The same goes for licenses: “The newly created nightclub license will not be called a nightclub license,” according to Eric Escudero, the department’s communications manager. “It will be called a nightlife entertainment license. The definition is any business offering live entertainment after midnight. Calling it ‘nightclub’ would make it confusing because there are businesses that are not nightclubs providing entertainment in the city after midnight.”
• The definition of “entertainment” has been removed, as the ordinance is meant to regulate live entertainment rather than all forms of entertainment. The prior definition “was confusing and didn’t really serve a purpose…because we have a definition of live entertainment, and that’s what the licenses are based on,” Soisson said.
• The definition of live entertainment is now “includes dance floors, live music, and live performances, including performances by a disc jockey.” The prior definition was broader: “Live entertainment shall mean and include, but are not limited to, all shows, live music, games of sport, performances by a disc jockey, and performances of any kind.”
• The draft also builds upon what live entertainment excludes, stating that it “does not include adult entertainment; unamplified, spoken or dance performances by a single performer; ambient or background music; sporting events broadcast on live television or radio; emceed audience games such as bingo or trivia; or recreational activities such as bowling, lawn games, arcades games, darts, axe-throwing, billiards, or miniature golf.”
• The definition of a limited entertainment business has been narrowed to mean an entertainment business that provides live entertainment until midnight, “after which the live entertainment must cease until 7 a.m.”
• The first draft said it would be unlawful for a limited entertainment business to operate between midnight and 7 a.m.; the second says it would be unlawful for it to provide live entertainment between those hours. In other words, it can still operate after midnight, as long as there isn’t live entertainment.
• A nightlife entertainment license will be required for businesses that offer live entertainment after midnight. A limited entertainment license is for those that offer live entertainment, but not after midnight.
• The definition of “manager” has been revised. An “entertainment business manager means an individual who wholly or partially manages and controls the premises of an entertainment business; who is responsible for ensuring compliance with any ordinances or regulations applicable to the entertainment business; and who in addition to any owner, may be served with legal process regarding the operation of the premises.” This could be someone who “hires or directs security personnel; who manages and distributes revenue collected from sales; who has decision-making or final authority over hiring talent, marketing, promotions, or admission, ejection and dispersal policies.” The new draft adds that the manager can be a contracted party. This revision was made to “just capture those people who have true operational control over the business,” Soisson said.
• Additional clarifications were made for manager requirements. The second draft removed a thirty-day window for notifying the department of a change of manager, as a manager would need to be registered before acting as one. It also states that if the department denies a registration, then this person cannot act as manager. It adds that while a business cannot offer live entertainment unless there is a registered manager, there can be more than one registered manager. It also requires that at least one owner or registered manager must be on-site during operating hours.
• There have also been changes to security requirements. Security guard and weapons-screening requirements at nightclubs were replaced by a requirement that nightlife entertainment businesses adhere to an approved security plan that will be reviewed and approved by the department. “The requirements for security plans will be fleshed out in the public rulemaking process, where the public will still have the opportunity to provide feedback,” according to Escudero. “This rulemaking process will be held after/if the ordinance is approved by city council.”

Alex Berryhill, ONE Denver’s director of marketing, tells Westword, “Interestingly enough, DLCP stated that they made a presentation recently to city officials that said it would reduce the amount of revenue for their department by charging for less licenses, so we believe their intention is to ultimately create more culture within the city. This is reinforced with how transparent they have been in this whole process.” 

But there are still concerns, he says, noting the draft requires a manager on site at all times, and “for many venues, this is unsustainable,” as managers are paid a higher rate. “Remember, according to NIVA, 64% of independent venues operate at a loss,” he adds. “Our underground culture runs on margins defined in pennies. This could burden our cultural institutions and the employees who work at them all because the city wants to rein in a few bad actors, which will be at the expense of the majority of good actors. This is essentially a tax on good behavior. Does that seem fair?”

He also says venue owners are uneasy about “the discretionary nature of the rulemaking and how, even if the department is filled with administrators who want more culture, they may not always be. These rules could change and culture could be crushed by unsympathetic bureaucrats. This isn’t a hypothetical situation, either. This happens in cities all over the world that allow for discretion in these processes.”

He adds, “Operators were also annoyed that because they have live entertainment, they are now under more scrutiny than regular bars. Live music patrons are there for music, generally. Bar attendees are there to get drunk. Which one do you think causes more problems?”

As far as sound limits, ONE Denver and other businesses are also asking for “a better definition where amplification isn’t the rule, but rather something like decibels.”

The department will continue to revise the draft based on feedback before presenting it to Denver City Council’s Finance and Business Committee on June 23. Read the draft here.