DENVER — Denver’s Bus Rapid Transit (BRT) construction is tearing up Colfax Avenue. It’s been sobering for the street’s iconic bars, which say the traffic and lack of parking are driving customers away.
“We've seen probably around, right around a 20% decline in revenue,” said Sudhir Kudva, owner of the Squire Lounge.
“I think that a lot of businesses are starting to get scared right now,” added Alex Barakos, general manager of Pete’s Satire Lounge & Pete’s Kitchen.
Barakos is also president of the Colfax Business Improvement District (BID) Board of Directors. He works with businesses along the corridor to identify “pain points” during the construction, which he says “tends to be everywhere right now.”
“If things don't improve, or we don't get some type of help or relief from the city, you will start to see some businesses close,” he said.
Denver Mayor Mike Johnston has an unconventional idea to help them.
“I’m gonna launch a guest bartending program on Colfax for anyone that'll have me,” he told City Cast Denver podcast hosts Paul Karolyi and Bree Davies last week. “I’m gonna come in once a month, do events at restaurants or bars on Colfax, and just encourage our neighbors to come."
On the podcast, Johnston encouraged people to support businesses on Colfax during the construction, rather than shy away from them.
When asked about specifics regarding the guest bartender plans, Johnston’s office told Denver7 on Friday, “More details to come.”
The buzz from Colfax bars has been mixed.
“If it gets people into these bars that are struggling, I think that's a great idea,” Barakos said. “He can't really run, he's making your drinks. I think everyone would kind of show up and at least see what all the commotion is about, at the very least.”
Kudva said he was “60/40” leaning yes to the hypothetical of Johnston guest bartending at the Squire Lounge.
“I’d want to make sure that he doesn't get berated when he's there,” he told Denver7. “ It's a mixed bag… I’m a big fan of Mayor Johnston, but I don't know whether some people think it's a little theatrical to come in and do this. It's not really going to help me out.”
Barakos and Kudva both say there are better ways for Johnston and the city to help them. Barakos suggested a tax abatement plan.
“So if Denver sales tax is 4%, telling these businesses that are really struggling right now, ‘Hey, you can hold on to that 4% but still charge your customers,’ that would be huge for improving cash flow in a lot of kind of down businesses right now,” he explained.
Kudva also suggested a potential break on business taxes.
“That's stuff that's going to actually help us, rather than a guest bartending spot,” he said.
Both Barakos and Kudva mentioned Denver’s Business Impact Opportunity (BIO) grants currently available for businesses in Segment 1 of the BRT construction. Despite the construction’s parking lane closures already affecting the bars, they are situated inside Segment 2 and are not yet eligible for the grants, which pay up to $15,000 to impacted businesses.
“Every dollar helps, but $15,000, like I've said before, is not going to make or break any business over two years,” Kudva said.
“I really don't think that's enough anyway,” Barakos added.
Both men say they are pro-transit and excited to see the finished BRT project but are concerned about losing businesses before then. But with construction slated to last beyond this year, they’re open to anything that can stop closures.
“I know it might be tough to access these businesses, and it might take a little bit longer to find parking on a side street or find the right turn to get to a certain place,” Barakos said. “Please come support these businesses. Everyone is hurting.”
Kudva pointed out that larger chains are better equipped to survive long periods of reduced revenue.
“I don't think anybody wants to see a bunch of Applebee's and Chili's, and nobody wants to see Colfax become a 16th Street Mall,” he said. “I think they want to see Colfax retain its local character, and that's what we're trying to do.”
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