(The following story by Dave DeWitte appeared on The Gazette website on August 1.)
CEDAR RAPIDS, Iowa — Seven Iowa railroads that sustained damage from June flooding have been awarded no-interest state loans averaging $571,000.
More than 400 miles of rail were damaged by flooding on Iowa rivers.
Emergency funding of $3,999,000 was approved Thursday by the Iowa Railway Finance authority and the Iowa Department of Transportation.
All of the funds went to short-line railroads, including three Cedar Rapids-based railroads.
The Cedar Rapids and Iowa City Railway Co. (CRANDIC) was approved for a maximum eligible loan of $320,000. The Iowa Northern Railway was approved for up to $681,000, and the Iowa Interstate Railway was approved for up to $772,000.
The largest single loan of $1.4 million was approved for the Iowa Chicago and Eastern Railroad, based in Sioux Falls, S.D.
The loans carry a maximum term of 15 years. Railroads have until Jan. 1, 2011, to begin repaying the amounts.
Iowa Northern Railway Vice President T. Scott Bannister said the state funds will enable the Iowa Northern to complete repairs on washouts and other track damage more efficiently with contractors and its own employees.