A room that two weeks ago was drenched in anger and doubt was filled with civility and cautious optimism during Monday’s joint meeting that brought the Balaton EDA and Balaton City Council together in an effort to keep the town’s struggling municipal liquor store open.
When all was said and done, the EDA came to the rescue, and at the risk of taking a large financial hit, agreed to loan up to $30,000 to the City for the liquor store.
The EDA, which will hash out terms and conditions at its next meeting on Jan. 26, will have oversight of the business with the liquor store committee members from the council. The loan agreement will be finalized at a later date. The move is similar to what the EDA did with the assisted living facility in town.
The failing business was brought to the forefront at a crowded Jan. 2 public hearing at the community center, at which time a number of Balaton residents shared their thoughts about how the council has handled the situation, blaming members for lack of communication about the state of the business’ financial situation.
Residents delivered a petition to the council as a way to convince it to do whatever it takes to keep the liquor store open, but was considered premature, City Attorney Matthew Gross said, as it would have to occur within the last 45 days of 2026. Any special election would have to wait until 2027.
Because the liquor store is considered an enterprise business and is self-sustaining, the City is generally not allowed to loan it money through a fund transfer. An amendment to the City budget and another public hearing would be required to do so.
“That would draw resources from other City operations,” Gross said. “The City would have to cut from other areas. That’s typically something that is not preferred by auditors. It would be very problematic for the City to loan money from the general account to the liquor store fund.”
With a dwindling account balance, the City had a number of options: shut down the liquor store at any time, sell it or lease the property. Gross said the EDA — an entity separate from the City — is able to loan money to the City for the liquor store, a move that does not require a public hearing.
The EDA’s decision to loan the City money is essentially a Band-Aid at this time, as there is no guarantee that the business will be back on its feet by the time the new monies are used up. One of the few audience members at Monday’s meeting asked if it was possible for the City to keep just the off-sale portion of the business open since it was holding its own financially. Gross said that was one option and draws a comparison to what the City of Tracy did when it closed its bar years ago and eventually moved the off-sale location to the highway.
At the conclusion of the joint meeting, the EDA meeting commenced to determine if the group was going to go ahead and loan the money. All the EDA members shared the same sentiment as council members’ in that they want to see the liquor store stay open.
“It’s hemorrhaging, there’s no doubt about it,” EDA member Randy Miller said. “But I think this can be shored up. If the town doesn’t support it, we’re going to be here four months from now and, game over, in my opinion.”
Manager Ashley Haroldson stated that she is open to any ideas from the EDA and has no problem with the EDA’s desire to have significant oversight of the business’ operation.
“If you want to be the one that comes in and deals with me at the bar, I’ll do whatever you want,” she said. “Whatever paperwork you need … let’s figure something out. It is not just a bar problem, it is a town problem. I’m willing to work with whoever to get whatever we need to try and turn it around.”
Haroldson noted that attendance at the bar has improved since the public meeting earlier this month. She also said there are ways the business can save money.
“We’re throwing money away on stuff we shouldn’t be,” she said. “We’re paying on two credit card machines — for what?”
At the regular city council meeting later Monday night, councilmember Dylan Fricke opened the door to his vacating his spot on the liquor store committee, citing a conflict of interest. Fricke owns Balaton Bay Golf Course, which also operates a bar and restaurant. The council showed its appreciation for Fricke’s service, but shared its wish that he remain on the committee despite the conflict. Fricke has in the past abstained from any votes relating to the liquor store.
Also, Tracy McCloud, who like Fricke is both a councilmember and liquor store committee member, expressed his frustration over being included in an email sent by mayor Lonnie Lambertus that intimated he was interested in purchasing the liquor store. Lambertus apologized for including McCloud’s name in the email.
In other business …
• At the request of the dog owner, the council will hold a public hearing at a later date concerning the dog issue in Balaton. The council said the main issue with the dog is not the dog itself, but containment.
• The council set the 2026 fee schedule with a few changes, including adding a liquor fee of $150 to the community center rental rates; that would be on top of the existing $100 damage deposit.
• The City will change its telephone provider from Frontier to Woodstock in a money-saving effort.
• The council accepted donations to the fire department of $5,000 from SWIF/Balaton Area Community Foundation and $1,000 from Box Car Wind in the name of Karyn Groenwold, who was named the winner of a drawing at a recent landowner participant meeting. Groenwold chose the fire department as the recipient of the donation.
• City Hall will be closed on Jan. 19 in observance of Martin Luther King Jr. Day.
