Denver cannabis lounge accused of violating law, could lose its license

A Denver cannabis lounge is at risk of losing its license following allegations from city officials that the business violated multiple laws during events it held earlier this year.

This week, the Denver Department of Excise and Licenses issued an “order to show cause” to Tetra Lounge, meaning it will have to defend itself in a hearing in October and explain why its license “should not be suspended or revoked.”

The city alleges that the business, at 3039 Walnut St., violated the terms of its license during parties on April 20 and July 10 when vendors appeared to be selling and sampling cannabis products. Investigators believe one of the vendors was not a legally licensed marijuana company, the order states, among other allegations.

Tetra Lounge, which opened in the River North Art District in 2018, is what’s technically known as a marijuana hospitality establishment, and its license doesn’t permit cannabis sales. Patrons who visit bring their own weed and pay an entry fee to smoke outside on its patio. The lounge also hosts events, such as joint-rolling classes.

In an interview with The Denver Post, Tetra Lounge owner Dewayne Benjamin disputed many of the city’s allegations and said some were mischaracterized or taken out of context. For example, officials noted finding pipes with burnt marijuana inside the building, which is not licensed for smoking. Patrons are only permitted to consume outside on the patio, but Benjamin said he brings the pipes and other smoking apparatuses inside to clean them.

In an instance where officials allege they saw someone sampling and selling cannabis, Benjamin said he was told by the vendor they were not doing so, but he removed them from the property anyway.

“These things we go above and beyond to prevent,” Benjamin said. “Over the course of seven years, Tetra has been one of the safest social atmospheres in Denver.”

One other accusation involved psychedelics, some of which are now decriminalized in Colorado. The city’s order alleges that one event included a vendor advertising DMT, microdose capsules and mushroom chocolates, and that another was giving away free psilocybin gummies just outside of Tetra’s licensed premises.

Benjamin said the onsite vendor in question was providing information about decriminalization laws, not products. He also said he saw a representative of the Denver Department of Excise and Licenses consume a mushroom gummy from the vendor located off of the business’ property.

Eric Escudero, spokesperson for the department, said “We encourage him to file a complaint with the city, and it will be investigated.”

Tetra Lounge’s hearing is scheduled for Oct. 10 and the business is permitted to operate in the meantime.

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