Colorado Politics

Denver warns businesses of unlicensed cannabis hospitality

When Nikki Hazamy, owner of Rooted Heart Yoga Studio, decided to introduce cannabis-infused yoga classes, she didn’t know a warning would be heading her way.

“It’s frustrating that there’s so much constriction to what we can do,” Hazamy said. “It’s a legalized city. You see other businesses doing it. Nothing is clear on what you can and cannot do.”

In fact, Sec. 6-205(a)?of the Denver Revised Municipal Code requires that a business must obtain a marijuana hospitality license before engaging in “any form of business or commerce involving marijuana.”

It’s also a violation of the Colorado Clean Indoor Air Act to smoke within a business unless exempted or a licensed marijuana facility.

Eight businesses received warnings from the city of Denver on Saturday for holding marijuana-related activities. Denver’s Department of Excise and Licenses issued a separate violation ticket to Tetra Lounge, said agency spokesman Eric Escudero via email.

The basic marijuana hospitality license allows for adults over 21 years of age to consume cannabis within the permitted location. This license does not allow the selling of cannabis. 

Hazamy insisted that the entire process “vague.”

“There’s countless hoops to jump through and the application process costs thousands of dollars,” Hazamy said. “It’s a total deterrent.”

Escudero maintained that the city has issued licensing bulletins detailing the rules for marijuana hospitality as part of efforts to educate businesses.

“Citations, fines and enforcement activity by the City and County of Denver are always a last resort after every effort has been made to educate businesses about licensing rules and regulations,” Escudero said. 

Escudero points to “multiple licensing bulletins” on the department’s website as examples of the city’s education campaign posted at least three times in the past two years.

The businesses listed in the email that received a warning in June or July are:

  • Ant Life
  • Meta Talent Group
  • Marijuana Mansion
  • Psychedelic Club of Denver
  • NORML Denver
  • The Vape Loft
  • Rooted Heart Yoga Studio
  • Clubhouse Collective

Tetra Lounge, on the other hand, was issued a general violation ticket, according to Escudero.

Owner Dewayne Benjamin declined to comment.

“Allowing unlicensed businesses to operate presents a health, safety and welfare threat to the community and hurts social equity businesses that have taken on the effort and expense to get a license and legally operate in Denver,” Escudero said. “They should not have to compete against illegal competition.”

Hazamy said plenty of her clients will be disappointed by the cancellation of cannabis classes.

“Denver has always been a trailblazing city. I feel that changing the process and allowing these gatherings would bring more traffic to the state,” Hazamy said. “These events are just another avenue to bring people together.”

Under a city ordinance passed in 2021, only social equity applicants are eligible to apply for hospitality licenses until July 1, 2027. Under the social equity requirement, at least 51% of the business’ ownership must come from an “disproportionate impacted area” for a number of years, or the business owner or a family member had been arrested, convicted or suffered civil asset forfeiture due to a marijuana offense, or the household income did not exceed 50% of the state median income.

Eight Denver businesses were sent warnings for allowing or promoting marijuana consumption on their premises. 
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