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Kenyon liquor store operator urges caution on $200,000 remodel, suggests dispensary alternative

City of Kenyon Council · September 3, 2025
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Summary

The liquor store operator asked council to reconsider a $200,000 capital budget for expansion, saying remodeling might cost less and proposing municipal cannabis dispensary as a higher‑revenue alternative; staff said enterprise fund spending would not affect the city levy.

Kenyon — The operator of the city liquor store urged council to reconsider a proposed $200,000 capital outlay for expansion and raised the idea of a municipal cannabis dispensary as an alternative revenue source.

At the workshop the operator said the liquor store is an enterprise fund and that the $200,000 would not affect the property-tax levy. He said he was "kind of pushed into spending all of it here about a year ago" but now believes the building could be remodeled for substantially less — citing a local estimate near $94,000 — and floated splitting the building so the city could operate a dispensary alongside the liquor operation.

The operator asked staff to restore an annual $20,000 transfer to the capital outlay line (previously stopped after a staffing change) to rebuild a capital cushion for the enterprise; staff agreed to add that transfer back into the draft budget for 2026.

Council reaction: members said they were open to reviewing alternatives and asked staff to include the $20,000 transfer in the next draft. No formal decision on dispensary policy or capital funding was made; those are policy items that would require separate council action and statutory review.