By RANDY SEAVER, Editor

According to documents obtained by the Biddeford Gazette, the city of Biddeford is now investigating why more than $16,000 was spent on a downtown parking plan that was never reviewed or authorized by the city council or its Finance Committee.

At Mayor Liam LaFountain’s request, City Attorney Harry B. Center was asked to investigate questions about a temporary program that used various budget lines to fund a free parking program for downtown merchants during last year’s downtown sewer construction project.

The parking project, according to Center’s memo, was allegedly initiated by former Mayor Marty Grohman roughly 90 days before the city’s biennial election. The program was disbanded in mid-November just days after Grohman lost his reelection bid.

When contacted by the Biddeford Gazette on Sunday, LaFountain confirmed that neither he nor any other elected official was told about the parking program.

LaFountain said he asked Center to investigate how the parking program was launched, operated and funded.

“It appears that it was kept within a small circle of people,” the mayor said. “Unfortunately, no one bothered to tell the council or the Finance Committee.”

LaFountain said he only found out about the project when City Manager Truc Dever asked if he wanted the program to continue.

“I didn’t even know the program existed,” LaFountain said. “It’s certainly troubling. The public expects us to be diligent and careful with public monies. Any major expenditures should be approved by the Finance Committee and then the full city council.”

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“It appears that it was kept within a small circle of people”

— Mayor Liam LaFountain

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According to Center’s memo, the parking plan was initiated just weeks before City Manager Truc Dever began her new position with the city.

As part of his investigation, Center spoke with Finance Director Gerry Matherne.

“There was no council approval,” Matherne told Center. “Marty [Grohman] just did it.”

According to Center, Matherne confirmed that the funding source came from the Route 111 TIF (Tax Increment Finance) fund. under a line item known as “Other Professional Consulting Services.”

The funds were disbursed to Premium Parking, the private company that operates the city’s parking garage and several surface lots throughout the downtown area.

The funds were used to offset the cost of parking for vehicles with certain license plate numbers and designed to make street parking downtown much easier during the sewer construction project.

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“There was no council approval. Marty just did it.”

— Finance Director Gerry Matherne

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LaFountain told the Gazette that he was “troubled” by the situation, and said it only further erodes public confidence in City Hall.

Last year, during a review of the city’s FY 2023 audit, the city received a blistering report from its professional auditors who raised concerns about possible mismanagement of federal grant funds and a sloppy cash reconciliation process.

Matherne was hired in February and is continuing her work to address prior problems in the city’s Finance Department.

RELATED: Auditors give city a blistering report

“Director Matherne is being asked to clean up and reconcile numerous issues that took place before she was hired,” said LaFountain. “Her professionalism and hard work are exactly what the city needs as we try to sort things out.”

Former mayor defends program

Former Biddeford mayor Marty Grohman told the Gazette that he was “unaware” that the city was giving money to Premium Parking to offset costs and provide free parking for certain downtown merchants and their employees.

Grohman said the plan was intended to be “revenue neutral,” and said he never authorized any extra payments to Premium Parking.

Grohman says the paid parking plan came from an idea first discussed during his weekly meetings with downtown merchants and others who were struggling with snarled traffic.

“I didn’t set it up,” Grohman said. “It was Brad Favreau (from the city’s economic development office) who set it up.”

Because of the holiday weekend, City Hall was closed and Favreau was unavailable for comment.

Although Grohman said he thought the program would be revenue neutral, he later said he did “not recall the source of the funding” that would be used.

Grohman said the idea behind his plan was to simply reconfigure spaces and designations of certain downtown parking lots.

Grohman described the plan as a “goodwill agreement” between the city and Premium Parking.

“They (Premium Parking) must have misunderstood the intent of the program,” Grohman said, when asked why the company billed the city an extra $3,170 every month between August and November 2025.

More than two years ago, Grohman was a city councilor and hoping to become the city’s mayor.

Grohman pledged then to “get tough” on the privately operated garage that is still subsidized by the city.

During a May 21, 2023 interview with this reporter, Grohman said the city should not be using TIF funds to make its subsidy payments to Premium Parking.

Grohman then said he considered the use of TIF funds to continue funding revenue shortfalls at the garage as “galling.”

“Our debt service is more than $4 million a year,” Grohman said during that 2023 interview. “I don’t think this [funding of garage revenue shortfalls] is the best use for the TIF funds.”

Next steps

Center’s memo about the parking plan is expected to be addressed during Tuesday’s Finance Committee meeting, which begins at 5 p.m. in the council chambers.

From Center’s memo: “In summary, the former mayor on his own initiative –without City Council or Finance Committee vote — directed that the payments be made to Premium Parking for private downtown business employees to park in the parking garage as well as surface lots during the Elm Street sewer construction project.

“Following an initial payment on August 26, 2025, in the amount of $3,690, four additional monthly payments of $3,170 were made from the “Route 111 TIF Fund” totaling $16,370. The payments were for parking but were made from a line item designated “Other Professional/Consulting Service Expense.”

The Gazette has filed a Freedom of Information request for emails that were circulated between July and October between the mayor’s office, Favreau’s office and Delilah Poupore, executive director of Heart of Biddeford.

“This situation is outrageous,” said At-Large Councilor Marc Lessard. “You can’t just spend taxpayer dollars to make people feel warm and fuzzy. Our ordinances spell out a process.

“Citizens expect us to adhere to those processes and follow the city charter,” Lessard added.

This story will be updated.

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Randy Seaver is the editor and founder of the Biddeford Gazette. He may be reached by email: randy@randyseaver.com

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