Parents want probe of school's finances

A group of parents angry about the abrupt closing of the Renaissance Academy, a private school for gifted children, has asked the El Paso County District Attorney's office to investigate the school's finances and find out what happened to their money.

Fredo Killing, president of the school's board, said Thursday the board had been contacted by the D.A.'s office, but had not met with any of its representatives. The district attorney's office declined to comment on the parents' request.

In a contentious meeting at the school Wednesday night, parents demanded that school officials give them financial information about why they suddenly closed the doors Sept. 30.

They were told the academy is filing for Chapter 7 bankruptcy, in which assets typically are liquidated. But no detailed financial information was forthcoming from school officials about whether the parents will get their tuition back. Tuition at the school in northwest Colorado Springs was about $9,700 per child for full-time students. Parents who paid in advance got a discount.

In an interview Thursday, Killing said he cannot comment on the school's finances because of the impending bankruptcy proceedings.

"Basically the only thing the board said at the meeting was that there was going to be a bankruptcy and to get in line," said parent Kim Dulaney. "Parents were very upset because they don't feel they were given answers."

The school's financial problems stem, in part, from a $2.4 million variable-rate construction loan the school took out four years ago for the 13,000-square foot building project, board member Tom Briggs, said at the time of the closing.

The school had been making monthly interest payments of $10,000 to $15,000, but was never able to pay anything on the principal, officials said. Efforts to refinance failed.

Adding to the problem was a decline in enrollment from 95 students last year to 70 this year, making it harder for the school to meet its financial obligations, Briggs said.

Many parents were upset that the school went ahead and opened for the fall when the financial situation was dicey. Some at the meeting said they had received tuition payment notices only a week before the school closed.

And they were angry that there was no warning: They received a letter at the end of the school day telling them the school was shutting down, leaving behind 70 students, 12 teachers and three staff members.

According to parents at the meeting, board members told them school officials had given the school personal loans over time to stave off a closing.

Director Clayanna Killing gave $70,000 and her former husband, Fredo, provided $140,000 or more, officials told the parents.

He acknowledged Thursday that he had lost a large financial stake in the school, but more important was the lost dream of helping children.

"We gave 16 years trying to make a difference for kids, and these are tough times," Fredo Killing said. "We didn't want this to happen, but the resources are gone. I'm sad and sorry."

Helena HoTseung whose son was in the school seven years, said she understands the anger some parents feel, but she doesn't feel victimized, even though she lost tuition money.

"We came out of all this with much more than we lost. Our son benefited greatly from the program," she said.

Meanwhile, parents are forming a committee to look into revitalizing the concept of the school, which served preschoolers through eight-graders.

"It won't be this year, Dulaney said. "But we will do our own fundraising and see if we can come up with a way."

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Contact the writer: 636-0371 or carol.mcgraw@gazette.com