Clocktower Cabaret teeters after city sewage floods Denver entertainment venue

In Denver, it’s no secret that businesses are feeling the impact of the construction of the 16th Street Mall. It’s resulted in lost revenue and foot traffic for many. Now, one Denver entertainment venue is dealing with more than that. Owners of the Clocktower Cabaret say a construction accident caused raw sewage to leak into their building, and they’re now out thousands of dollars in lost shows and still haven’t gotten any help from the city to pay for the damage.

The Clocktower Cabaret is located in the Daniels & Fisher Tower at 1601 Arapahoe Street. Construction is currently underway on the 16th Street Mall, a project that is part of the improvement project. The building is currently surrounded by construction.

The venue is known for its entertaining vintage song and dance performances, including drag and burlesque shows, and has survived many hardships over the past 18 years including the pandemic.

“We’ve had divorce parties here, memorial services here… a lot of history and a lot of stories,” said Selene and Jefferson Arca, owners of the business.

However, the latest construction disaster is causing the company to run into financial difficulties.

In April, the location was closed for several weeks after a construction problem arose.

“They tried to divert the water or something and they accidentally filled our site with raw, untreated sewage from the city. It was disgusting,” Jefferson said.

The ground floor filled with large amounts of wastewater. It created a biological hazard for the company which they say resulted in physical and financial damage. The damage is still visible in their back room leading to the boiler room.

“We’re a little frustrated because we can’t get the job done. We don’t have the money,” Jefferson said.

The sewer problems were immediately repaired, but the damage to the back room is still visible. The crews will not start work until they are certain they will be paid.

“We keep telling them, go to them for the money, go to the city,” Jefferson said. “And it’s just a big circle where we seem to be the ones on the hook.”

The company was forced to cancel nine shows, costing them a total of $70,000 in repairs and lost revenue.

“We’ve been fine up until now. We’re falling further and further behind,” Jefferson said.

The city told Clocktower Cabaret they would pay for the cleanup and repairs. The Arcas, however, are growing impatient.

“It’s been almost three months and we still haven’t seen a dime,” Jefferson said.

In a statement to CBS Colorado, a spokesperson for the city’s Department of Finance said they worked with insurance companies who approved damages and expenses in June and have since sent out checks. Their statement is below:

Supporting local businesses is a top priority for the city and we aim to work closely with all businesses to ensure any issues caused by construction are resolved quickly and efficiently.

The city has insurance that covers contractors and subcontractors on city projects. After the damage was repaired, and within just two days of the incident, the city filed the claim with its insurance company. The insurance company’s appraiser and representatives from Clocktower Cabaret then worked together to coordinate site visits to assess the damage and costs, which were approved for payment in June. The insurance company has since sent reimbursement checks to Clocktower Cabaret twice, although Clocktower Cabaret reports that they have not received the checks. The city is currently working with the insurance company and Clocktower Cabaret to get to the root of this issue and ensure that Clocktower Cabaret is fully reimbursed.

However, Arcas says there is still no money and they have even had to take out loans to pay the costs.

“We really need that $70,000,” Jefferson said. “We’ve got to catch up.”