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Sterling approves amended $750,000 CDBG grant and revised job-creation deal for KMW expansion
Summary
The Sterling City Commission approved an amended $750,000 CDBG Economic Development grant agreement and a revised job-creation agreement increasing KMW's obligation to 51 full-time equivalents; the city attorney reviewed the changes and both motions passed 5-0.
The Sterling City Commission on Feb. 16 approved an amended Community Development Block Grant (CDBG) Economic Development agreement of $750,000 with the Kansas Department of Commerce to support water improvements tied to the KMW expansion, and approved a revised job-creation agreement with KMW, Ltd.
City Manager Ian Hutcheson told the commission the U.S. Department of Housing and Urban Development funds the CDBG program and that Kansas administers the award through the Department of Commerce. The city received the $750,000 award in September 2025 but could not access funds until a job-creation agreement acceptable to KMW and the Department of Commerce was executed. Hutcheson said KMW had previously declined the original agreement and that subsequent negotiations increased the company's job-creation obligation from the 23 full-time equivalents (FTEs in the initial CDBG paperwork) to 51 FTEs established in the parties' development agreement. Wayne Buchberger, managing director/CEO of KMW, signed the revised agreement before the meeting, Hutcheson said.
Hutcheson described changes to the job-creation agreement that make the city's remedies in the event of default less explicit in the CDBG document itself, but he emphasized that the city retains rights under the separate development agreement. City Attorney Scott Bush reviewed the revised documents and raised no objections, Hutcheson said.
Commissioners voted 5-0 to approve grant agreement no. 25-IN-002 with the Department of Commerce and to approve the amended Job Creation Agreement with KMW. Mayor Brian Inwood and commissioners did not request additional financial offsets; Hutcheson noted that the construction contract bid opening for related work is scheduled for March 12, 2026.
The commission's approval allows the city to move forward with project procurement and with required testing and construction steps; the Department of Commerce must still release funds according to its administrative procedures and the executed agreements.
