Denver fines cannabis spot Tetra Lounge $10,000 for unlawful activity

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Denver fines cannabis spot Tetra Lounge ,000 for unlawful activity — Employee no longer with the city after incident at Tetra.jpg

A Denver Cannabis Lounge Avoids License Revocation, Fined $10,000 Instead

The Tetra Lounge in Denver, located at 3039 Walnut St., narrowly escaped losing its license and has been instructed to pay a $10,000 fine by the city’s Department of Licensing and Consumer Protection. This decision came after a hearing last November, where Tetra Lounge had to address allegations of violating various laws during special events held on April 20 and July 10, both significant cannabis holidays.

As part of the ruling, Tetra Lounge must settle the $10,000 fine within 90 days and will be subject to a year-long probation. Any further violations will result in an additional $10,000 penalty and a 60-day closure. This ruling was issued by Molly Duplechian, the executive director of the Department of Licensing and Consumer Protection, marking the first licensing discipline case for a marijuana hospitality business in Denver.

Owned by Dewayne Benjamin, Tetra Lounge plans to appeal the decision despite the repercussions. The business was initially issued an “order to show cause” last year, leading to a hearing to defend its license status. City inspectors alleged witnessing unlawful activities during visits on April 20 and July 10, including on-site marijuana sales and sampling.

Established in 2018, Tetra Lounge operates as a cannabis hospitality business where patrons can bring their own marijuana for consumption on the outdoor patio. However, marijuana sales are strictly prohibited under its licensing conditions. Inspectors reported instances of cannabis consumption within the building, vendors distributing marijuana products, and booths selling illegal substances like psilocybin and DMT.

Despite the allegations, Benjamin has denied any wrongdoing and criticized the city’s actions as predatory and discriminatory. The enforcement action has had negative impacts on Tetra Lounge’s business, including decreased event bookings, sponsorships, and daily visitors.

In response to the fine, Duplechian stated that Benjamin’s failure to acknowledge the violations and take responsibility led to the imposed penalty. The ongoing dispute highlights the challenges faced by cannabis hospitality businesses in navigating regulatory requirements and compliance.

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