Denver theater group leaves downtown space after loan dispute
DIRT surrendered its 15th and Blake Street venue in July after failing to open its immersive Shakespeare production, prompting a city demand for an accounting of its $400,000 loan.
By Martin Reynolds ·
Denver Immersive Repertory Theater vacated its downtown space on July 20 without staging a single performance.
The company signed a mutual lease termination with landlord Fred Glick on July 17. DIRT stated that no eviction judgment was entered. A separate lawsuit from a construction contractor was dismissed without prejudice, leaving the underlying financial allegations unresolved.
Founders Blair Russell and Steve Wargo planned to convert a former Patagonia store near 15th and Blake streets into a 200-seat immersive venue. They projected a $2 million development that would generate $19.6 million in economic activity over five years. The project was part of a July 30, 2025, announcement by Mayor Mike Johnston and the Denver Downtown Development Authority for roughly $100 million in downtown revitalization projects.
Russell and Wargo moved to Denver from New York. They received a $400,000 loan from the DDDA. The final agreement, dated Jan. 28, allocated $350,000 to working capital and $50,000 to furniture, fixtures and equipment. The loan closed on Feb. 4. Russell said the city planned to issue a physical check rather than an electronic transfer, causing delays while the company waited for insurance paperwork to be cleared.
The theater originally targeted an April 10 opening. That date slipped to June 18. By March, Russell estimated that an additional 10 weeks without ticket revenue would cost roughly $280,000 in rent and payroll. He requested this amount from the DDDA board in a letter blaming the approval timeline for the delay. The company had employed 18 actors and seven designers. Weekly payroll averaged $22,124. The records do not show whether the board considered or rejected the request.
DIRT furloughed its actors on April 11. On June 15, the company released its performing company from contracts. Denver issued a formal notice of default on July 27. City officials said DIRT’s January draw request included $52,212 for rent covering March, April and May, but the company failed to pay May rent. DIRT confirmed the May rent was unpaid and stated it prioritized payroll over rent during a cash shortage. The company documented $431,359.29 in project expenses, including $223,233.91 in payroll.
Denver immersive artist Lonnie Hanzon described the project as a familiar attraction for the city. “Denver has always had a problem with shiny things from New York. We really love shiny things from New York,” he said. He added that warning signs about the project’s finances were apparent to the community from the beginning. Emails from August 2025 show DEDO specialist Rick Snyder asked Russell for evidence of financing. Russell provided a breakdown totaling $1,060,360, which left nearly $940,000 of the estimated project cost unaccounted for in that document.
Shelby Morse, DEDO’s director of communications and marketing, defended the initial approval in an Oct. 29 email. She stated that DIRT had secured a lease, begun construction and set an opening date, satisfying key viability metrics. Morse noted that the DDDA has since supported 25 projects totaling more than $295 million and moved to a reimbursement-based lending model. The city can seek repayment and recover equipment pledged as collateral following a default. DIRT told officials in August that its custom scenery and technical equipment were in storage. Morse did not say whether the city had inspected the equipment or recovered any of the loan.
The theater projected 44,000 ticket sales in its first year. It never opened its doors to an audience. As of Nov. 2, the city has not said whether any of the taxpayer money has been returned.
