I will admit to never having visited the area personally, but if the description is correct, the faire probably brings in more than 30% of the annual business income. Per the website, the township has a population of a little over 1400 souls, all of which are rural. If the faire goes away, the town might just disappear.
Unfortunately, petty tyrants are all too common in small jurisdictions like this. My town has a population of 14,000 + and we still get the occasional closet bigot in office (though to our credit, we quickly purge him/her). In a town as tiny as Trumbell Township, there are probably few that care enough or have the desire to run the town, and there is always the risk that someone with a personal agenda will fill the vacuum. If most of the residents are elderly, retired or otherwise don't care about the faire either way, this guy/group can use the town coffers anyway they want, even to the detriment of the local economy. It is doubtful the locals will do anything about it, if they even know what is happening around them.