Albuquerque small business owners often say operations are challenging in the best of circumstances, whether it’s navigating supply chain issues, the cost of goods, paying bills or making payroll. But when you add vandalism, theft and other crimes to the mix — at least in the case of the Historic El Rey Theater owners — it also pushes insurance rates through the roof.
Aaron “Buck” Burnett is one of four El Rey owners who took the reins in 2018. The group includes Joe Anderson, Alejandro “Hano” Blake and Wes Edling. The El Rey consists of four businesses on Central Avenue near Seventh Street: El Rey, El Rey Liquors, Founders Speakeasy (in the basement) and InsideOut (an indoor-outdoor venue to the theater’s east).
Burnett said El Rey’s annual insurance costs in 2018 — for general liability, liquor liability and workers’ compensation coverage — equaled about $36,000. A little more than five years later, the price tag hit $132,000.
“Our insurance broker showed us two pages of companies that declined to insure,” Burnett said. “He said they just lost their appetite for Downtown. Then you ask the question: ‘Why?’ He said it’s just one thing: ‘The crime.’”
The El Rey has seen its share. Burnett said a security guard was recently shot in the leg by a man trying to steal alcohol. It was caught on their security cameras.
“Three months ago, we had two guys — I think it was 1 o’clock or 2 o’clock in the morning — take a rock and smash out the window and climb into [El Rey Liquors] stealing booze for an hour and a half,” he said.
A week after the incident, Burnett said another man tried to break into the El Rey Theater.
“He probably worked on that for at least an hour and a half — trying to jimmy the doors open,” he said.
There have been instances of people using ladders to access InsideOut from the open air roof, vandalizing and stealing alcohol. Burnett said the business doesn’t always file insurance claims because the policy carries such a high deductible — around $20,000.
“So it just doesn’t make any sense,” he said. “If it was a $2,000 deductible then it might.”
Their next insurance renewal date is in April, and Burnett is concerned, especially since the business ended 2024 a little bit in the red.
“We’re already talking to [our broker] and shopping policies, but as of two and a half weeks ago, it doesn’t look like anything’s going down,” he said.
Call For More Police
Burnett said his frustrations extend to Mayor Tim Keller, who he said refuses to come clean about the extent of Downtown crime. He said it amounts to “gaslighting the city.”
“It just sucks because the mayor and a lot of people are painting this rosy picture of Downtown, saying how much better it’s gotten. It’s untrue,” he said. “The big thing that we need to do is have a bigger police presence. We need more boots on the ground.”
Keller spokesperson Staci Drangmeister said in an email to City Desk ABQ last week that the administration is aware that high insurance rates are putting a strain on Albuquerque businesses.
“We share concerns with businesses and residents about crime, but these [insurance] corporations aren’t factoring in local improvements, including a new police substation, [Albuquerque Community Safety] and security presence, 100 new streetlights, and crime fighting technology like gunshot detection and cameras,” Drangmeister said.
She said the El Rey area was “rapidly improving,” with the first new Downtown hotel in 20 years scheduled to open this year — Arrive Albuquerque — and the recently opened Ex Novo Brewery.
“Creating a Business Improvement District could help businesses pool their resources to assist with costs and help create a more vibrant commercial environment Downtown,” Drangmeister added.
Burnett, who’s also a 96.3 KKOB: News Radio fill-in host, started working Downtown in 1994. He said there was a more visible police presence then.
“We would have fights, but it wasn’t the insanity that we have now,” he said.
On the bright side, Burnett said the live music lineup at El Rey is looking robust this year. He said there are 21 shows already booked in April, for example — about three times more than in 2024. He agrees with Drangmeister about the arrival of Ex Novo Brewing, located at 701 Central Ave. NW about 200 feet away from the El Rey, being a welcome addition.
“That’s a good anchor to have — those guys are all my buddies,” he said.
Burnett said he’s also laying the groundwork for a second speakeasy location in the Northeast Heights near Candelaria Road and Tramway Boulevard. His HUB International insurance broker said his rates in that part of town would be about $30,000 a year.