The Owensboro City Commission has approved a municipal order allowing the City to apply for more than $11.4 million in federal funds on behalf of Cargill, formerly Owensboro Grain, to help stabilize the bank of the Ohio River near the company’s East 2nd Street facility.
The application to FEMA’s Building Resilient Infrastructure and Communities (BRIC) program would support the construction of a 1,400-foot sheet pile wall designed to reinforce a section of riverbank known as Slope Creek. The site has experienced ongoing soil erosion that poses a threat to the facility’s operations and safety, officials said.
City Manager Nate Pagan said the City will serve as a pass-through agency for the funding.
“This municipal order authorizes a grant application to FEMA on behalf of Cargill,” Pagan said. “The company’s site is experiencing instability along a portion of the riverbank, and this request would provide funding for sheet pilings to stabilize it.”
According to the municipal order, Cargill would be solely responsible for the required 25% local match — just over $2.8 million — while the City would bear no financial obligation. The Green River Area Development District will assist with writing and administering the grant if it is awarded.
In a statement, the company said, “Owensboro Cargill is exploring potential restoration of the structural integrity of the riverfront to prevent further soil erosion and protect the safety of our employees who work at the facility.”
Cargill clarified that the proposed construction is a restoration project — not a wall — and that erosion, if left unaddressed, could eventually jeopardize a facility relied on daily by hundreds of farmers. The company also said it will comply with all local and state regulations for any restoration efforts.
Commissioners unanimously approved the measure, with Pagan noting that similar grant requests have been submitted in the past but were not funded. Officials said they are hopeful for a favorable outcome this time, given the potential risk and economic significance of the site.
