DENVER (KDVR) – A long-time Denver bar has been ordered to fight for its city licenses after Denver police went undercover to investigate complaints of narcotics deals and underage serving.

An order from Denver Excise and Licenses department breaks down why Sancho’s Broken Arrow on Colfax Avenue will have to “show cause” to keep their liquor and cabaret licenses. 

According to the city order, Denver police received an anonymous complaint involving the sale of narcotics at Sancho’s Broken Arrow in September. The complaint involved the alleged sale of dimethyltryptamine (DMT) and cocaine by employees of the bar.

Undercover officers went into Sancho’s Broken Arrow back in September and documents revealed that they bought suspected cocaine from a bar employee while on the patio. The order states that the substance purchased was tested and deemed to be positive for cocaine.

It goes on to say undercover officers bought cocaine at the bar two more times, the most recent instance having occurred a few months ago in March. 

Aside from drugs, the order mentions two times undercover cadets had been served alcohol. According to the report, a 19-year-old cadet was served back in March after they showed a bartender a Colorado Driver’s License with the vertical format and “Under 21” printed on it.

This is the same Grateful Dead-inspired bar we reported on back in 2020 when it was shut down for violating COVID stay-at-home orders. Problem Solvers obtained additional past “show cause” and settlement agreements from 2019, 2020, and another one from earlier this year, all for the same bar. 

According to the order, new owners took over the bar in 2020. They also own a brewery, called So Many Roads, that’s also being ordered to “show cause” with the city’s licensing department. Both Bars are scheduled for a virtual hearing at the end of June.

Problem Solvers tried contacting the owners directly and left messages with the bar asking for their side.

Denver Police officials told FOX31 that they are unable to do an interview or comment since the investigations are open and ongoing.