Colorado's First Pot Lounge and Micro-Dispensary Approved by Adams County

Update: JAD's Smokehouse owner Josh Davis says he will no longer open on February 25 because of cold temperatures, and now plans to open in April.

Adams County officials have approved a marijuana micro-dispensary and entertainment venue, paving the way for Colorado's first licensed consumption lounge that also sells marijuana products.

JAD's Smokehouse had been pursuing approval from the county's Liquor and Marijuana Licensing Authority Board since last summer, and received the final go-ahead during a virtual public meeting on February 16. Once the smoke ventilation system and some electronic features are completed, the new pot lounge, mini-market and music venue could be open as soon as February 25, according to owner Joshua Davis.

The first of its kind in Colorado, JAD's hospitality and micro-sales license will enable the lounge to sell limited amounts of marijuana flower, concentrate and edibles to patrons, who can consume the products inside or on a private backyard patio. Marijuana consumption devices, such as pipes, bongs, vaporizers and joint papers, will be available for rent or purchase.

"We're pretty much done here, and are finishing up construction. It's all being installed as we speak, and the products are coming between now and next week," Davis says, adding that he's partnered with several Colorado marijuana vendors to create smaller versions of their items to fit his sales model.

Recreational marijuana sales began on January 1, 2014, in Colorado, but the legislature didn't legalize marijuana social consumption venues at the state level until 2019, and local governments must opt in before a business can operate. Adams County opted into pot hospitality in 2020, allowing businesses in the unincorporated areas to apply, but entrepreneurs have been slow to move while criticizing the model's potential.

State laws ban pot hospitality venues from liquor sales, while the local governments that have opted into marijuana social consumption have strict rules for where these establishments can be located, often installing buffers between marijuana businesses and parks, schools and daycares, as well as other marijuana businesses.

Visitors to social consumption venues with micro-sales can't bring in outside marijuana, either, and must consume or leave anything they buy at the establishments. But Davis believes JAD's, which neighbors a strip club at 7667 Washington Street, has enough space, activities and events to attract the crowds.

The location, previously the Drunken Monkeys Tavern, has been converted to allow tables and a bar for smoking and dabbing inside, with almost an acre of outdoor space for parking, food trucks and a music stage, Davis says. He also has plans for projection movie screenings, installing video games and organizing marijuana-friendly classes such as yoga and painting.

"The whole goal is to have as many events and acts as we possibly can," he says, adding that he's already in discussion with music and comedy acts to play at JAD's in the near future.

Davis expects that the venue's live entertainment capabilities will be fully functional by 4/20, the unofficial marijuana holiday on April 20. He originally hoped to be open by Halloween after receiving his state license from the Colorado Marijuana Enforcement Division last September, but renovations to the building's interior to meet local zoning requirements delayed that, he says.