BALATON — The Balaton Economic Development Authority will be stepping forward to try and help keep the city’s municipal liquor store open. Monday night, the EDA board approved terms for a $30,000 loan to the city of Balaton for the Balaton Liquor Store.

The terms set by the EDA board included a 3% interest rate for the loan, with the liquor store building as collateral. During Monday’s meeting, board members also said that if the liquor store uses its remaining funds and has to dip into the $30,000 from the loan, it will trigger a special meeting with the Balaton City Council to talk about the possible sale of the building.

Balaton EDA Director Tara Onken said loan documents will be finalized with the help of Balaton city attorney Matthew Gross.

The future of the Balaton liquor store was the subject of a public hearing earlier this month. The liquor store, which has both a bar and off-sales, has had financial struggles over the past few years.

Reports on municipal liquor store operations released by Minnesota State Auditor’s Office showed the Balaton liquor store went back and forth from having net losses to net profit in the past five years. The store went from having a $21,778 net loss in 2020 to $13,242 in profit in 2021, state analysis said. However, the following year the liquor store had a net loss of $1,386. In 2023, the store had a net profit again, of $7,820.

According to statements of net position from the city of Balaton, the liquor enterprise fund had an operating loss of more than $30,000 at the end of 2024.

After the public hearing on the future of the liquor store, the Balaton EDA agreed to loan the city up to $30,000 to help the store. At the same time, EDA board members and the Balaton City Council’s liquor store committee members would have oversight of the business.

Information presented at Monday’s EDA board meeting said the Balaton Liquor Store had a bank account balance of $29,934, and after outstanding checks and unpaid bills, it had an estimated available balance of $18,993. The information presented to the EDA board said a representative of the Minnesota Municipal Beverage Association was coming to Balaton Tuesday to consult on how to help improve operations at the liquor store. City staff were also working on possibly getting a less costly insurance rate for the liquor store.

At Monday’s meeting, EDA board members talked about factors like what kind of interest rate to set for the $30,000 loan, how often a subcommittee should meet and report back to the EDA and the Balaton City Council, and when the EDA and city should talk about possibly selling the business.

Board members voted to approve two separate motions regarding the liquor store loan. In the first vote, they approved granting the city a $30,000 loan at 3% interest. The second vote approved a subcommittee to meet biweekly, and update the EDA and city council on the liquor store.