KITCHENER -- The Kitchener Rangers Hockey Club (KRHC) is hoping to defer payments on a 10-year loan they drew from the City of Kitchener back in 2012.
Because of the abrupt end to the hockey team's 2019-2020 season, the KRHC has seen its revenue streams "significantly reduced," a city staff report read in part.
The OHL has also announced a delayed and shortened 2020-2021 season, starting in early February and running for 40 games instead of the usual 68. As for playoffs, only eight teams will make it through this year, compared to the usual 16.
The KRHC's COO Joe Birch submitted a written request to revise its loan agreement with the city.
Director of Sport Kim Kugler recommended that the team be given the deferral, noting that all of its previous payments had been made on time.
The KRHC still owes more than $5.6 million of its $9.6 million loan, and is hoping to refinance a little more than $4.3 million over the next 10 years.
If approved, the club will still be charged interest on the deferred principal rates, because the city will still be required to make the principal payments on the club's behalf.
"To account for this, the City will charge the KRHC interest on the deferred principal payments to recoup the loss of investment income the City could have earned, and ensure taxpayers are not financially disadvantaged by the change in agreement with the KRHC," a staff report read in part.
