EVANSVILLE, IN (WFIE) -
Earthcare Energy promised to bring 120 jobs to Evansville, but now the financing deal is off the table.
In March, the Evansville City Council approved a $4.8 million loan for start up operations at the old Whirlpool plant.
On Wednesday, city officials announced the company failed to meet its end of the bargain.
Earthcare now owes the city money, and some city council members are calling for change.
"From the very beginning, the proposal on it's face appeared suspect," said city councilwoman Stephanie Brinkerhoff-Riley.
Brinkerhoff-Riley concerns about Earthcare Energy only grew with time.
"I'm glad to see the mayor pulled the plug," said Brinkerhoff-Riley.
The city says the company failed to meet 2 requirements of the agreement. Officials say Earthcare did not apply for a loan guarantee through the Department of Energy and couldn't offer proper proof it had an exclusive licensing agreement for the technology.
"Earthcare couldn't live up to the safeguards the City put in place," said Evansville Mayor Lloyd Winnecke.
The City says it's not interested in negotiating further, but under the agreement, Earthcare still has 30 days to comply.
Because of that Brinkerhoff-Riley filed papers with the Clerk's Office, including a report and 98 exhibits, Wednesday to rescind the loan.
The councilwoman says she spent 100 hours investigating the company. She questions why the project wasn't better vetted by the Growth Alliance for Greater Evansville or GAGE.
"If the city is going to be a bank, we need to act like a bank, so the credit worthiness of the principles is relevant. I don't know if GAGE is unwilling or unable to properly vet this kind of proposal, but I think their future with the City and with City Council is up for discussion," said Brinkerhoff-Riley.
The Mayor's office defends GAGE and its President Debbie Dewey.
"Debbie did a tremendous job, Debbie went to Nevada to put her eyes on the technology to insure it worked," said Winnecke.
Still, some city council members say if they're going to be expected to approve loans of this magnitude, something needs to change.
"I think that City Council needs an independent professional that we can hire, as needed, so that we can evaluate, not from the lens of GAGE," said Brinkerhoff-Riley.
Regardless of differing opinions, city officials say Earthcare does still owe the City $184,000 from an initial loan they were given.
The mayor says he has no reason to believe that money won't be repaid to taxpayers.
Last week, Earthcare Energy representatives said they stand behind their product and name.
They did not return our calls Wednesday.
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