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Residents and a CPA urge council to review Ecology School contracts, cite financial distress and contract breaches
Summary
Members of the public submitted contracts and financial analyses alleging the Ecology School breached a construction loan agreement and other commitments; a CPA presented audited financial data showing multimillion-dollar losses and a going-concern auditor opinion, and asked the council to review city exposure.
SACO, Maine ' Multiple residents urged the Saco City Council on Monday to review contracts and financial records related to the Ecology School, arguing the applicant's delays and strained finances create risk for the city.
Inga Brown handed the council a packet containing a construction loan agreement with a May 14, 2024 signature date, a business partnership initiative (BPI) approved by the council in May, and a 2018 contract-zone agreement with a sunset clause. Brown said the documents show the school may be in breach and that the school's attorney has blamed the council and planning board for project delays.
Deb Hilton, a CPA who said she has more than 35 years of experience, presented audited financial statements and financial highlights for the Ecology School (TES). Hilton said the school recorded an operating loss of $1,100,000 in 2024, has experienced revenue declines and expense increases since 2020, and carries roughly $12,300,000 in debt, including about $8,400,000 in USDA loans that she said are in default. She said auditors Baker Newman Noyes issued a going-concern opinion expressing substantial doubt about the school's ability to continue operating.
"These financial weaknesses have already harmed the city directly," Hilton said, citing unpaid engineering invoices that delayed construction and a breached construction loan agreement she said had a completion deadline of October 2025. She urged the council to review the record before proceeding with further city obligations.
Councilors acknowledged the seriousness of the financial figures and accepted the submitted materials. No formal council action was taken Monday; planning-board hearings and additional submissions were referenced as ongoing processes.
What's next: Public commenters asked the council to review the packet and the planning-board record; councilors said they would examine the materials and the planning-board timeline.
