Denver Cannabis Club Faces License Threat After Employee Incident

The Tetra Lounge in RiNo found itself in hot water following a 4/20 party that led to repercussions for one Denver city employee. The Denver Department of Excise and Licenses recently issued an “order to show cause” to Tetra Lounge, located at 3039 Walnut St., alleging violations of its license terms during events in April and July. The accusations revolve around the alleged sale and sampling of cannabis products by vendors, one of whom was not a legally licensed marijuana company. Tetra Lounge’s license strictly prohibits cannabis sales, allowing patrons to bring their own cannabis and pay an entry fee to smoke on the premises.

Established in 2018, Tetra Lounge faces potential license suspension or revocation and will have to present its case in court this fall. An incident on April 20 raised eyebrows when city inspectors observed a vendor outside the licensed area distributing psilocybin-infused gummies. The situation escalated when it was revealed that a city employee allegedly consumed one of the gummies. The employee involved is no longer with the city, indicating accountability for any misconduct discovered during investigations.

Owner Dewayne Benjamin defended Tetra Lounge against the allegations outlined in the city’s order to show cause, arguing that the mention of psilocybin gummies aimed to cast the business in a negative light. Benjamin highlighted the challenges faced by his establishment over the years as it adapted to changing city regulations, including updates to the air filtration system and licensing requirements. Despite the controversy, Tetra Lounge can continue operating until its hearing on October 10.

The incident at Tetra Lounge underscores the complexities of operating within the evolving cannabis industry, particularly in jurisdictions like Denver with stringent regulations. Benjamin’s assertion of Denver’s extreme measures to hinder his business highlights the ongoing tensions between regulatory bodies and cannabis establishments. The case serves as a reminder of the importance of compliance and adherence to licensing terms to avoid jeopardizing business operations and facing potential legal consequences.

Key Takeaways:
– Tetra Lounge in Denver faces license jeopardy after alleged license violations during 4/20 parties.
– City inspectors witnessed a vendor distributing psilocybin-infused gummies outside Tetra’s licensed area.
– A city employee who reportedly consumed a mushroom gummy is no longer employed by the city.
– Owner Dewayne Benjamin disputes the allegations and stresses the challenges of complying with evolving regulations in the cannabis industry.

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