Cortez council approves The Junction liquor license three months after Patron denial

CORTEZ — Three months after denying Patron Nightclub’s liquor-license renewal in a 5-2 vote, the Cortez City Council voted unanimously Tuesday to approve a new tavern liquor license at the same North Broadway location, this time for a company owned by one of Patron’s former owners.

The council voted 7-0 on October 13 to approve Junction Enterprises LLC, doing business as The Junction, at 309 N. Broadway. The company’s sole owner, Anna Arellanes, previously co-owned Patron Nightclub with her husband, Saudiel Arellanes.

The approval followed a public hearing in which police reported some neighborhood opposition, Arellanes outlined plans to improve the property, and council members expressed hope that lessons had been learned from the previous business.

City Clerk Danielle Wells emphasized that The Junction is a new business entity and that the reasons for Patron’s earlier denial could not be used as evidence against its liquor-license application.

Wells explained that Patron’s former license was held by Sierra’s LLC, whose sole member was Saudiel Arellanes. Junction Enterprises, by contrast, is owned solely by Anna Arellanes. Although the owners are married, Wells said the companies and their licenses are “completely separate.”

The distinction was significant because the council’s July denial of Patron’s renewal involved unpaid taxes and concerns about the nightclub’s operating history.

Police survey finds opposition

Two separate surveys presented during Tuesday’s hearing produced notably different results.

Cortez Police Lt. Rogelio Maynard reported that officers surveyed surrounding residents and businesses about the proposed license. Of those contacted, 17 supported the application and 11 opposed it.

Arellanes, meanwhile, told council members that her own petition drive collected 127 signatures in favor of the license and none against.

The figures came from separate surveys rather than a single measure of neighborhood opinion. Neither represents a scientific survey of Cortez residents, but the police findings demonstrated opposition that was absent from the applicant’s petitions.

Councilmember April Randle expressed disappointment with the opposition identified in the police survey but said she saw no grounds for rejecting the application.

“I see no reason to deny the application at this point in time,” Randle said.

The police department’s investigation found no criminal-background concerns involving Arellanes and identified no known public-safety issues associated with the proposed license. City staff also determined that the application satisfied the requirements for a new tavern license and recommended approval.

No one offered public testimony for or against the application during the hearing.

Arellanes outlines plans for The Junction

Addressing council members, Arellanes described plans to transform the former nightclub into a welcoming gathering place for people from “different walks of life.”

She said the name The Junction reflects the property’s location near the intersection of Broadway and Piñon Drive.

Arellanes also presented photographs showing proposed exterior improvements intended to brighten the building and make it more attractive from the street.

Asked whether the establishment would operate more like a restaurant and bar, she said that was her long-term goal. Initially, The Junction will serve lighter food because a full commercial kitchen would need to be installed.

Wells explained that a tavern license permits additional food service, although converting to another type of liquor license would require a new application.

Several council members welcomed the prospect of improvements to the property and encouraged Arellanes to move forward. One said she had met the necessary requirements and deserved a chance, while another expressed relief that the building would not remain vacant.

Still, Patron’s history was not entirely forgotten.

Councilmember Bill Lewis acknowledged that Patron’s previous ownership and operating history could not be considered in the new licensing decision but expressed hope that “there have been lessons learned.”

Other council members noted the challenges of running a small business and praised Arellanes for continuing through the application process.

Councilmember Claire West moved to approve the license, Councilmember Carly Wolf seconded the motion, and all seven council members voted in favor.

Patron’s earlier denial

The unanimous approval contrasts sharply with the council’s July decision to deny Patron Nightclub’s liquor-license renewal.

As The Cortez Current reported September 27, Patron had failed to remit city sales taxes during its first six months of operation and still owed $12,681 when it applied for renewal in June.

The business paid the outstanding city balance shortly before the July hearing, and its owners said they had obtained a loan to pay overdue state taxes.

Council members also reviewed police records documenting 53 calls for service associated with Patron between July 2025 and June 2026, including 10 that resulted in official reports.

Police Chief Vernon Knuckles testified during the July hearing that the number and nature of those incidents did not justify recommending denial of the license. Nevertheless, council members voted 5-2 against renewal, citing the business’s tax-payment history and concerns about its character, record and reputation.

Randle and Mayor Dennis Spruell voted against denying Patron’s renewal. Lewis was among those who supported the denial, raising pointed questions about the business’s repeated tax delinquency.

Patron subsequently closed as a licensed nightclub.

Junction Enterprises was formed July 29, shortly after the denial, and submitted its application for a new tavern license August 17.

The new application also required an agreement between Cortez and Montezuma County because approximately one-third of the building lies outside city limits. Both governments approved that agreement September 22, authorizing Cortez to license and regulate the entire property.

Junction Enterprises has secured a five-year lease for the building and parking lot, extending through August 2031.

A new beginning at the same address

Tuesday’s decision clears a major hurdle for The Junction, although final approval from the Colorado Department of Revenue is still required before the business can legally serve alcohol.

The council’s two decisions involved the same location and owners with a family connection, but different business entities and applications.

In July, council members denied renewal of an existing license after reviewing Patron’s operating record. In October, they unanimously approved a new applicant after finding that it satisfied the legal requirements for a tavern license.

For Arellanes, the approval provides an opportunity to establish a new business at a property that has already attracted considerable scrutiny.

Whether The Junction can succeed where Patron failed remains to be seen. But the council has now given the North Broadway location another chance.

The October 13 City Council hearing can be viewed in the city’s meeting recording on YouTube.