Business Guide: Hospitality and Liquor Licensing for Boulder’s 2027 Sundance Film Festival

The Sundance Film Festival will move to Boulder, Colorado beginning in January 2027, after over 40 years in Park City, Utah. The festival will center in downtown Boulder, utilizing theaters and venues around the pedestrian-only Pearl Street Mall and incorporating spaces on the University of Colorado Boulder campus. The 2024 festival generated $132 million in gross domestic product, created 1,730 jobs paying $69.7 million in wages, and attracted 24,000 out-of-state visitors who spent an average of $735 a day.

For businesses in Boulder’s hospitality sector, and out-of-state businesses looking to come to Boulder, this represents an unprecedented opportunity to capitalize on one of North America’s most significant independent film events. However, success requires careful planning and compliance with Colorado’s complex liquor licensing and special event regulations, with requirements varying significantly between in-state and out-of-state businesses.

This Guide is not intended to be all-inclusive nor legal or business advice. Rather, it’s an overview of the hospitality business and legal landscape in Boulder Colorado. Further, this Guide is based on information available today, and Boulder may alter licensing processes specifically for the 2027 Sundance Film Festival. Be sure to check the city’s official pages for up-to-date information.

Understanding Colorado’s Dual Liquor Licensing Authority

Colorado operates as a dual licensing authority for liquor retailers and special event permittees. Liquor licensing requires businesses to first obtain license approval at the local level, typically requiring demonstration of neighborhood needs and desires for new liquor licenses. This means all businesses must navigate both Boulder city requirements and Colorado state regulations. Once the city approves, the application moves on to the State Licensing Authority for approval. This can be a concurrent process, which takes about four months – and sometimes longer.

Key Boulder Municipal Requirements

Boulder City Liquor License Required: Boulder requires all businesses to obtain a city license to sell or offer for sale any alcohol beverage, in addition to state licensing requirements. However, businesses with special event permits issued by the State of Colorado are not required to obtain a separate city license for those specific events.

Boulder Beverage Licensing Authority (“BLA”): Applications must be submitted to Boulder’s Beverage Licensing Authority, which can many types of city licenses including retail liquor store, hotel and restaurant, tavern, beer & wine, brew pub, distiller pub, arts licenses, and entertainment facility licenses. The BLA follows state law procedures for applications, hearings, and decisions.

University Campus Distance Restrictions: Notably, Boulder has eliminated the 500-foot distance restriction from the University of Colorado campus for hotel-restaurant and beer and wine licenses only, and from Naropa University campus for beer and wine licenses only. This creates opportunities for businesses near these campuses that wouldn’t be available in other Colorado municipalities.

Public Consumption Restrictions: Boulder prohibits possession and consumption of alcoholic beverages in public places, with specific exceptions for licensed premises and certain city-owned properties including Boulder Reservoir, Flatirons Golf Course, East Mapleton Ball Fields, Pleasant View Fields Sports Complex, and Stazio Recreation Complex during operating hours. Special event permits can override these restrictions in designated areas.

City Manager Permission for Special Events: The city manager may grant permission to consume alcoholic beverages on city-owned property for special functions including athletic events, artistic events, cultural events, receptions, and civic events. This authority is particularly relevant for festival-related events requiring alcohol service on city property. It remains to be seen whether Boulder will adopt special rules for public consumption for the Sundance Film Festival.

Sundance Film Festival Opportunities include pop-up venues, outdoor screenings, industry parties and receptions and promotional events and brand activations, to name a few. However, before planning, all business must know and plan for the regulatory environment in Boulder.

Key Boulder Liquor Licensing Timeline Considerations

Start Early: The licensing process can take several months. Events involving alcohol require submission at least 60 days in advance for licensing, and we recommend at least 90 days. For new businesses seeking permanent licenses, the timeline may extend even longer due to background investigations, zoning issues, and local hearings.

Plan for 2026: Given the festival’s January 2027 debut, businesses should begin their licensing planning and application processes no later than mid-2026 to ensure compliance and operational readiness.

Common Types of Colorado Liquor Licenses for Hospitality Businesses

Hotel and Restaurant License

The Hotel and Restaurant License permits restaurants and hotels with restaurant facilities to sell malt, vinous, and spirituous liquors for consumption within licensed premises. Requirements include actively and regularly serving meals with at least 25% of gross sales from food and serving meals between 8 AM and 8 PM when open and serving alcohol.

Tavern License

Tavern licenses permit the sale of all types of alcoholic beverages for on-premises consumption, with the principal business being alcohol sales. The Tavern License type does not have a mandatory gross food sales, but light snacks and sandwiches must be available during all business hours.

Festival Permit

The Festival Permit may end up being an ideal solution for the 2027 Sundance Film Festival for establishments planning to serve as industry gathering spots and after-party venues. It remains to be seen whether the Boulder Beverage Licensing Authority will create a local permit for the Sundance Film Festival. Under this permit, licensees may also hold a festival permits and coordinate with other licenses for the Festival.  Festival permits are unique and require significant advance planning and cooperation among participants.

Beer and Wine License

This more limited license allows only malt and vinous liquor sales for on-premises consumption, with similar food requirements to tavern licenses.

Brew Pub and Distillery Pub License

Brew Pubs and Distillery Pubs can manufacture alcohol while operating as bona fide restaurants with at least 15% of gross sales from food.

Special Event Considerations

Temporary and Special Event Permits

Boulder requires Special Event Permits for planned public activities with 50 or more people, use of tents/structures, or sound amplification. Special Event Liquor Permits are available to charitable organizations and require both city and state applications and must include public notice posting at the event location for at least ten days before the hearing  .

Private Party Liquor Licensing Requirements

A common question for businesses and organizations planning festival-related events is whether liquor licenses are required for private parties. Colorado’s Liquor Enforcement Division provides specific guidance that clearly defines when alcohol events require licensing based on whether they constitute a “sale” or occur in “public” versus “private” settings.

What Constitutes a “Sale” Under Colorado Law: Colorado law broadly defines “sell or sale” to include exchanging, bartering, trafficking, delivering for value, or possessing with intent to sell alcohol. Any of the following activities are considered illegal sales requiring proper licensing: charging any fee that includes alcohol (even if called a “donation”), selling items like coasters and providing “free” drinks, soliciting or accepting money or anything of value in exchange for alcohol, or having unlicensed third parties serve as middlemen between buyers and licensed retailers.

Public vs. Private Event Determination: An event is considered public (and therefore subject to licensing requirements) if invitations are made through public or social media and the event is open to anyone, or if the general public may attend. This is particularly important for festival-related events that may use social media promotion or industry-wide invitations, as these characteristics could classify the event as public regardless of the venue.

Legal Private Party Requirements: Private parties may legally serve alcohol without licensing only when: the host purchases alcohol from a licensed retailer for off-premises consumption, provides it free to invited guests with no charge or value exchange, and ensures no entrance fees or “donations” are required. For Sundance-related events, this means corporate sponsors cannot charge admission, require festival passes for entry, or accept any form of payment or valuable consideration.

Professional Service Arrangements: Private party hosts may hire third-party bartending or catering companies, but these companies cannot provide alcohol beverages or be compensated in connection with alcohol. They may only charge for bartending labor services, not for corkage fees, service fees tied to alcohol volume, storage fees, or delivery of alcohol beverages. This creates specific compliance requirements for production companies and agencies planning catered festival events.

Retail Liquor Store Involvement: Retail liquor stores cannot sell alcohol at private events since they’re limited to selling within their licensed premises. However, owners of retail stores may also own catering companies, provided the businesses remain completely separate with different legal entities, separate vehicles, and separate bank accounts. This separation requirement is crucial for businesses planning integrated hospitality services during the festival.

Trade Shows and Supplier-Sponsored Events

For businesses planning to host industry trade shows, supplier events, or promotional gatherings during the Sundance Film Festival, Colorado provides specific guidance on wholesaler-retailer transactions that significantly impacts event planning and alcohol procurement.

Wholesaler-Retailer Pricing Requirements: Wholesalers cannot sell alcohol products to retailers below laid-in cost, even for trade shows or supplier events. This means zero-cost invoicing or below-cost sales are generally prohibited unless specific exceptions apply. This restriction affects film industry suppliers, distributors, and production companies planning promotional events at licensed venues.

Limited Exceptions for Below-Cost Sales: The only permitted exceptions include discontinued product lines (minimum one-year discontinuation), aged inventory with substantially decreased market value after 12 months, and products for non-profit organizations for use (not resale) with detailed invoicing requirements and unused product return obligations.

Charitable Event Zero Invoicing: Zero-cost invoicing is permitted when wholesalers donate to qualifying organizations having charity events at retail locations licensed for on-premises consumption. The retailer must consent to the arrangement, unused products must be returned to the wholesaler, and any unreturned products must be charged at minimum cost. This exception may apply to certain film festival fundraising events or non-profit screenings.

Compliance Strategy for Supplier Events: When suppliers want to sponsor events at retail venues, the proper structure requires wholesalers to invoice retailers at or above laid-in cost in accordance with regulations, while suppliers separately pay retailers for the product at negotiated prices as customers of the retailer. This two-step process ensures compliance while allowing supplier-sponsored hospitality events.

Festival Industry Implications: Film distributors, production companies, and entertainment industry suppliers planning events during Sundance must structure their alcohol procurement through compliant wholesaler-retailer relationships. Direct supplier payments to retailers for alcohol must be handled as separate customer transactions rather than attempts to circumvent minimum pricing requirements.

Insurance Requirements Considerations

Special events require general liability insurance coverage of $1 million per occurrence with a $2 million aggregate, maintained throughout the event duration including setup and dismantle periods.

Business Licensing and Tax Requirements

For Colorado In-State Businesses

Licensing Advantages: Colorado businesses already registered with the Colorado Secretary of State have streamlined processes for obtaining liquor licenses. All corporations and limited liability companies must maintain current registration with the Secretary of State’s Office.

Boulder Local Business Benefits: Businesses based in Boulder are required to maintain regular business licenses rather than special event licenses, creating operational flexibility and cost advantages. Local businesses can more easily modify existing licenses rather than applying for new permits.

Tax Compliance: In-state businesses already registered for Colorado sales tax should ensure their current sales tax licenses cover the increased volume and any temporary modifications needed for festival operations.

Workers’ Compensation and Unemployment: Colorado businesses typically have established relationships with state agencies for unemployment insurance and workers’ compensation, simplifying the process for hiring additional festival staff.

For Out-of-State Businesses

Initial Registration Requirements: Out-of-state businesses must first establish legal presence in Colorado. Foreign corporations and limited liability companies must register with the Colorado Secretary of State and be authorized to do business in Colorado before applying for any liquor licenses.

Tax Registration Obligations: Out-of-state businesses face more complex tax requirements:

• Must obtain a Colorado sales tax license through the Colorado Department of Revenue if selling, renting, or leasing tangible personal property
• Can use Colorado Business Express online registration system to simultaneously register with multiple state agencies
• Must register with Colorado Department of Labor and Employment for unemployment insurance if hiring local staff
• May need Colorado workers’ compensation insurance depending on operations and employee count

Special Event Licensing: For temporary festival operations, out-of-state businesses must register for each event they plan to attend and file sales and use tax returns for each event, even if no sales are made. Returns are due within 20 days after the event ends. The City of Boulder treats all tax payments as public monies held in trust, requiring vendors to act as trustees until funds are remitted to the city.

Licensing Process Complexity: Out-of-state businesses may face additional scrutiny during the licensing process, including more extensive background investigations. However, an exception exists for chain stores or entities with multiple Colorado liquor licenses, where the state Division conducts background investigations to avoid repetitive local processes.

Boulder Special Event Licenses: Boulder provides free Special Event licenses for out-of-city vendors, but all businesses must obtain a City of Boulder business license prior to event start, even if no sales are made.

Compliance and Enforcement

Colorado’s Liquor Enforcement Division can impose fines, suspension, or license revocation for violations. Serving alcohol to minors can result in fines up to $3,000 and potential license suspension.

Risk Management: Implement robust staff training programs (Seller Server Training, TIPS, Responsible Vendor) and verification procedures, especially given the influx of out-of-state visitors during the festival.

Strategic Recommendations

For Colorado In-State Businesses

Existing Boulder Businesses:

1. Evaluate Current Licensing: Assess whether current licenses meet anticipated festival demand and consider license modifications
2. Leverage Local Advantages: Utilize established relationships with Boulder licensing authorities and existing operational infrastructure
3. Plan Capacity Expansion: Consider temporary outdoor seating or special event permits to maximize festival opportunities
4. Staff Training: Invest in responsible alcohol service training programs for expanded operations

Other Colorado Businesses:

1. Temporary Operations: Explore special event licensing for temporary Boulder operations during festival periods
2. Partnership Opportunities: Consider partnerships with Boulder businesses for joint ventures or venue sharing
3. Supply Chain Advantages: Leverage existing Colorado vendor relationships and distribution networks

For Out-of-State Businesses

Permanent Establishment:

1. Colorado Business Formation: Begin Colorado Secretary of State registration and business formation process by early 2026
2. Local Partnership Strategy: Consider partnerships with Colorado businesses to navigate regulatory complexity and leverage local expertise
3. Location Strategy: Focus on downtown Boulder near Pearl Street Mall and University of Colorado campus for maximum festival exposure

Temporary Operations:

1. Special Event Focus: Utilize Boulder’s free special event licensing for out-of-city vendors
2. Compliance Planning: Budget for legal and accounting services to ensure full tax and regulatory compliance
3. Early Application and Registration: Begin state registration processes well in advance, as out-of-state businesses face additional administrative requirements

Conclusion

The Sundance Film Festival’s move to Boulder represents a tremendous opportunity for both Colorado in-state and out-of-state hospitality businesses. While Colorado businesses enjoy certain regulatory advantages and streamlined processes, out-of-state businesses can still capitalize on this opportunity through careful planning and compliance with additional registration requirements.

Success will require early planning, with different timelines and complexity levels for in-state versus out-of-state businesses. Colorado businesses should focus on optimizing existing licenses and operations, while out-of-state businesses must invest in establishing proper legal and regulatory presence in Colorado well before the 2027 festival debut.

The economic impact promises to be substantial—Boulder offered $34 million in tax incentives over 10 years to secure the festival—but the benefits will flow primarily to those prepared to meet the specific regulatory requirements for their business type and location. The next two years present a critical window for all hospitality businesses to prepare for their role in Boulder’s transformation into the new home of independent film.