Iowa State Fair boots Steer N’ Stein operators after failure to pay fair, workers, vendors

One of the most profitable beer and food concessions at the Iowa State Fair is up for grabs in 2025 after the fair board decided Wednesday to discontinue a contract with its operators, a prominent Des Moines couple who failed to pay employees, vendors and a portion of concession fees after this year’s fair.

Fair CEO Jeremy Parsons said fair staff will be preparing a request for proposals for those interested in operating Steer N’ Stein, which occupies a large stand across from the administration building on the fairgrounds. It recorded more than $1.28 million in sales at this year’s fair, which ran from Aug. 3-13.

Parsons said the decision to end the annual contract with former Adventureland Resort CEO Michael Krantz and his wife Kimberly came after fair staff decided the pair failed to meet contractual obligations and operations standards as concessionaires, including maintaining good business practices.

The fair sent a letter Nov. 7 to Michael Krantz, forbidding the removal of any personal items from the fair-owned Steer N’ Stein building until the fair receives $102,000 in concession fees still due from the 2024 fair.

More: An Iowa State Fair food vendor that didn’t pay employees owes the fair more than $100,000

Parsons said in an interview after Wednesday’s fair board meeting that fair staff also would be re-examining bylaws and policies in the coming year to try to avoid similar problems with future concessionaires. Changes, he said, are likely “as the fair grows in popularity, and as food and beverage sales become more important, and money is involved.”

Steer N’ Stein operators face accusations of nonpayment

To date, the Iowa Department of Inspections and Appeals has received at least 14 wage claims from Steer N’ Stein employees who said they didn’t get paid, didn’t receive correct tips, or had paychecks bounce.

Steer N’ Stein reported to fair officials that it experienced an almost 5% decrease in sales this year, though the fair had record attendance. The 2024 fair drew almost 1.183 million people, 4% more than the 1.134 million it drew in 2023.

The Krantzes also are accused in a Polk County civil lawsuit of owing another $218,582 to a local business that provided them services leading up to the fair. Parsons said at least one other Steer N’ Stein contractor also has complained of not getting paid.

Michael Krantz did not immediately respond to an email seeking comment. He has given several reasons for the couple’s failure to pay debts since Watchdog in an Oct. 23 column reported the wage theft allegations.

He initially said in a statement the payment failures were “beyond our control,” caused by technical flaws in his company’s payment processing system. Later, he said it had temporary cash flow problems resulting from a change in how the fair collects funds from vendors.

Spokeswoman Mindy Williamson said the fair this year gave vendors the option of paying their concession fees online using automated clearing house money transfers. The limit for automated transfers was $100,000 per day, but other forms of payment were acceptable.

In a statement last week through a law firm representing him, Krantz said he was “working diligently and quickly to assure that anyone owed money from this year’s State Fair is paid,” adding that “all outstanding obligations will be resolved very soon.”

Krantzes are former owners of Adventureland; face lawsuit in child’s death there

The Krantz family is the former owner of Adventureland, the Altoona amusement park started 50 years ago by Michael Krantz’s father, Jack. It was sold in December 2021 following fatal injury the previous July of an 11-year-old boy in an accident on the park’s Raging River Ride. The Krantzes have faced large legal bills — and potential liability — tied to a $100 million wrongful death lawsuit stemming Michael Jaramillo’s death and severe injuries to his older brother, David.

The Krantzes had been big donors to the Iowa State Fair Blue Ribbon Foundation, contributing more than $182,700 as patrons or bidders in silent auctions since June 2022. But according to the fair, they also have not paid an invoice for a $5,000 sponsorship table at this year’s Corndog Kickoff, a fundraiser for fairgrounds renovations.

Steer N’ Stein, which serves beer, breakfast and burgers, has been a mainstay at the fair for 53 years. It was rebuilt after burning down in 1999, when it was under the management of longtime operator George Kranovich.

Lee Rood’s Reader’s Watchdog column helps Iowans get answers and accountability from public officials, the justice system, businesses and nonprofits. Reach her at lrood@registermedia.com, at 515-284-8549, on Twitter at @leerood or on Facebook at Facebook.com/readerswatchdog.