CEDAR RAPIDS, Iowa — The City of Cedar Rapids City Council approved of a $1.4 million loan to the Cedar Rapids Baseball Club, Inc. regarding the Veterans Memorial Stadium Tuesday night.
The Veterans Memorial Stadium is the home field of the Cedar Rapids Kernels.
The City received a request from the Cedar Rapids Baseball Club, Inc. to defer lease payment to future years due to COVID-19 and 2020 minor league baseball season cut short.
The Cedar Rapids Baseball Club, Inc. leases the Veteran's Memorial Stadium from the City.
The Kernels will be entering into an agreement with BankIowa for a lone. The agreement would require the City to guarantee a lone from BankIowa to the Cedar Rapids Baseball Club, Inc., in the amount of $1.4 million to fund the operations of the Kernels at the Veterans Memorial Stadium.
The loan to the Kernels would be a five year loan commitment with any remaining principle and accrued interest due at the five year maturity.
The interest rate for the loan would be fixed at 4%.
The collateral for the loan would be the general business interests of the Cedar Rapids Ball Club, Inc. as well as an unlimited and unconditional guarantee of the loan by the City of Cedar Rapids, Iowa.
The guarantee given by the City of Cedar Rapids would obligate the city to guarantee the Cedar Rapids Baseball Club, Inc.’s payments to BankIowa on the loan.
The city’s obligation to guarantee the loan would not exceed $1,475,000.00.