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Coffey County hears detailed CHIPS project update, moves into closed session over confidential financing
Summary
Burns & McDonnell and consultants updated the Coffey County Commission on the KSMC industrial park and a proposed gallium nitride fabrication project tied to the CHIPS program. Commissioners discussed proof-of-funds, federal PMT/NOF timing and entered a closed session to protect trade secrets and financial negotiations.
Joel Cancola, program manager with Burns & McDonnell, told the Coffey County Board of Commissioners that the firm is overseeing predevelopment support for the KSMC industrial park and coordinating with private-sector anchor tenant TEM (Trusted Electronic Materials). Cancola said the county's contracted predevelopment tasks included a draft development agreement, a site plan and a checklist intended to support future federal and private funding.
Carl Wyatt, part of the TEM/consultant team, gave a 45-minute presentation outlining how a gallium nitride semiconductor fabrication facility could be built at the county site, displayed footage of a high-volume factory and laid out the economic case. Wyatt said the project has private interest, citing a previously announced $10 million ICS commitment, and described a financing plan that would combine private investment, bond financing and state support. "If there is an award, TEM would spend that $700,000,000," Wyatt said, summarizing the private contribution described in the presentation.
Presenters repeatedly stressed that a PMT (preliminary memorandum of terms) from the CHIPS program office is not a guarantee of cash. Wyatt told commissioners that a PMT makes an applicant a candidate for funding but can be rescinded and that the notice of funding is where money starts flowing. He urged the board to help speed regional advocacy and suggested drafting a letter to Senator Jerry Moran's office asking for direct engagement.
Commissioners pressed for clarity about proof of funds and the licensing of semiconductor processes. Wyatt said some previously described relationships with IMEC (Leuven) were not as firm as earlier understood and that U.S.-based options such as HRL Labs, NXP or Intel would be preferable or necessary for licensing a next-generation gallium nitride process.
Given the sensitivity of financial negotiations and proprietary process details, the board voted to enter a 20-minute executive session including commissioners, project representatives and the county counselor to discuss trade secrets and financial affairs that, the county said, could jeopardize the CHIPS application if publicly disclosed. Upon return the public summary said the discussion had not produced a final denial and that the project remains a viable candidate pending federal action.
Next steps identified by county staff were (1) verifying and collecting proof-of-funds documentation from private partners, (2) drafting a short letter to Senator Moran and (3) organizing a rapid regional briefing (Zoom) for adjacent counties and economic-development partners to build coordinated support before federal funding windows close.
The presentation and closed-session request set timelines and political outreach as the board's near-term focus; no formal county development agreement was executed at the meeting, and presenters said proof-of-funds and further due diligence remain prerequisites to any binding commitments.
