DENVER (KDVR) – An independent live entertainment venue is asking for help again after its insurance company denied its claim for flood damage.
The HQ was flooded with 10-12 feet of water after a pipe broke outside the building in August. The venue has been closed since.
“Any music venue in the country will tell you that October is the most profitable month of the year, and we’ve lost it all,” said co-owner Scott Happel.
Over the past few weeks, the basement has been cleaned and gutted. Now Happel and his team are waiting for a structural wall to be torn out and rebuilt before they can allow customers inside.
The cost of construction is borne by the property owner. But the cost of renovating the space and replacing all the equipment and inventory falls on the head office.
“We received a complete rejection from the insurance company. Water from outside your structure is a common exclusion in all insurance policies in Colorado, not just commercial properties, but homeowners’ policies as well,” Happel said.
Denver Water has a no-fault water main break assistance program to help property owners with cleanup and costs associated with water damage from a water main break. But HQ does not qualify. The city says the broken pipe was a building-owned service line that connects the building to the water main.
“Any damage caused by this is not covered. Their loss of business is not covered. Literally nothing is covered,” Happel said.
He estimates $100,000 in lost equipment and property, plus a few hundred thousand dollars in lost revenue while the business is closed. They plan to self-fund the restoration of their underground venue.
“Once the upstairs can open and we can start making money here again, we can slowly put that into rebuilding the basement,” Happel said.
According to Happel, the economic impact of the closure goes beyond her venue.
“A live entertainment venue brings a lot of economic impact to the neighbourhood outside of what it does for the venue. It’s hundreds of people on the block spending money and they’re not here now,” he said. “The bars and shops and restaurants around us have been like, yeah, our business is way down since you closed.”
HQ’s owners have set up a GoFundMe to raise additional funds.
They are also looking for city, state and federal arts and venue grants that could help them speed up their reopening.
