Cedar Rapids seeks funds for a new Event Center

The Cedar Rapids City Council last night unanimously made a commitment to the U.S. Department of Commerce's Economic Development Administration that the city will find local funds to help pay for a new Event Center and upgraded U.S. Cellular Center if the federal agency awards the city a grant for the project.

The city has asked for $35 million from the Economic Development Administration to go with $15 million already in hand in state I-JOBS funds to help pay for the project, which will cost $67 million.

The city has been working with the federal agency for many months, and in late December, the agency informed the city that the Event Center “merits further consideration” and asked the city to tell the federal government how it can fill any gaps in funding not met by the federal money.

The December development has led city and community officials, who have been optimistic about the grant for months, to be even more so.

Drew Westberg, a planner with the city, told the council last night that construction on the new Event Center and the upgrade of the U.S. Cellular Center could begin by fall if the federal grant comes in.

The council talked of selling bonds to provide upfront money for the project, and no one opposed the suggestion made this week by Mayor Ron Corbett that annual revenue from the city's hotel/motel tax be used to pay the annual bond payments.