PORTLAND — As the Portland Diocese closes the door on negotiations to operate Saint Dominic High School one more year, the new board looking to take the high school private is now pursuing a lease agreement.

Friday morning diocese leaders announced they would not agree to operate the high school for a “bridge year,” which would have given the recently formed Saint Dominic Regional High School board of directors more time to create a plan for taking over the Auburn school.

The board, which wants to run St. Dom’s as a private Catholic school, did not meet the diocese’s May 15 deadline to raise $3 million for an escrow account. The diocese said the funds were needed to help cover potential losses during the proposed bridge year.

“We believe the framework provided to the independent board represented the only way to successfully run the high school in 2025-2026 and ensure continuity for students and staff,” the diocese said in a statement Friday. “The criteria for the framework were not met as of the May 15 deadline, thus the diocese will cease operating the high school division of St. Dominic Academy at the conclusion of the school year.”

In a letter sent to parents Friday, Bishop James T. Ruggieri said, “This decision was made to ensure that students receive a quality Catholic education, that our employees and vendors are treated justly, and that we do not take on risks we cannot bear.”

The diocese established the $3 million requirement to ensure that it would not have to cover financial losses next school year. Losses are why the diocese announced at the end of March that the high school would close after this school year, with grades K-8 staying open at the academy’s Lewiston campus.

The high school, the diocese said, has sustained a total operational loss of $2.5 million over the last five years.

The new board raised more than $1 million through donations and pledges. Board leaders requested to look at financial information related to the high school, but the diocese has declined, prompting frustration among the board and supporters of the effort.

Board leaders have aired their disappointment with the way the diocese communicates, saying it has been difficult to negotiate through written communications, such as emails and written proposals, and that requests for sit-down meetings have gone largely unfulfilled.

The board on Wednesday issued a statement on Facebook outlining a new offer it made to the diocese, to rent the Auburn school and operate grades 6-12 there. Under the plan, it would take on full financial and operating costs of the school.

The diocese communicated to the board what would be required to rent the Auburn campus, though the diocese made clear that the middle school program would be moved to the Holy Cross campus in Lewiston next year, the diocese said Friday.

The diocese declined to elaborate more on rental agreement details. It has not given any details to the board about lease conditions; rather it has asked for the board  to submit documentation confirming the stability of the nonprofit, St. Dom’s board member Jonathan LaBonte said.

“This has been an ongoing point of frustration without their willingness to meet and discuss,” LaBonte said. “Given that we have confirmed the diocese has no capital improvement plan in place for the Auburn campus and no capital reserves, we would prioritize any lease to ensure the stability of the facilities before the diocese makes a profit on the campus the community built.”

Board leaders worked to assure the Saint Dominic community in a Facebook post Friday that their efforts to keep the high school open next year are not yet lost.

“We appreciate the Diocese of Portland’s recent engagement on the future of Saint Dominic Regional High School,” the board said in the post Friday. “Less than 24 hours ago, an agreement was made to begin lease negotiations for the school to operate independently in the 2025–2026 academic year at the Auburn Campus. This agreement — meeting key conditions related to capacity, policy, and curriculum — marks a significant step forward.

“We remain committed to fostering collaboration and transparency that strengthens Catholic education and serves students and families.”