NEWS RELEASE For Immediate Release For More Information Linda Siegle SFCC Governing Board (505) 690-5850 Jill Janov Marketing and Public Relations (505) 428-1776 SFCC and Foundation Move Closer to Resolution Judge Dismisses Part of Lawsuit Santa Fe, NM, Thursday, Dec. 16, 2004 – New Mexico District Judge James Hall dismissed a portion of the lawsuit filed against Santa Fe Community College by the Foundation for the Santa Fe Community College. Judge Hall threw out the foundation’s claim that the college breached its contract with the foundation, and he ruled that the foundation could not sue the college for monetary damages. The judge, however, did decide that a valid dispute remains between the foundation and the college and that issues remain to be settled. Those issues include how the approximate 3.3 million endowment and other funds will be transferred. The college believes the funds should be transferred to its new GROW Santa Fe Community College Foundation, the college’s new fund-raising unit. “The foundation’s endowment will remain intact and the proceeds will be distributed according to the donor’s original intent. That has always been the board’s position and will continue to be its position in the future. In no case will any foundation monies or contributions go directly to the college,” said Linda Siegle, governing board member at SFCC. SFCC and the Foundation representatives and their respective attorneys have agreed to meet next week to work on resolving the issues and formal mediation has been set for Jan. 11. “Both parties look forward to resolving the remaining issues as quickly as possible on behalf of our students and donors. The board's only interest has been in strengthening the college,” Siegle said. “We are optimistic that we will move forward quickly and to focus our attention on our fund-raising efforts for the GROW Santa Fe Community College Foundation. -more- Foundation Funds (page 2) The lawsuit was filed by the foundation in September after the SFCC Governing Board unanimously voted in August to end its agreement with the foundation. Board members made the decision because the foundation raised funds almost solely for student scholarships, and since then the needs of the college have changed, requiring a more flexible fund-raising arm that also can support new academic programs, capital campaigns and endowed funds. Dr. Mark Gelber has been selected as acting director to head GROW Santa Fe Community College Foundation in its initial stages. The college is searching for a permanent director. GROW is assuming responsibility for proper administration and disbursement of all SFCC scholarships and will abide by all original donor requests. About Santa Fe Community College Santa Fe Community College serves more than 14,500 students per year in its credit, noncredit and adult basic education programs. The college contributes to the area’s economic, technological and cultural development by offering programs ranging from art to business management and directly addresses regional job shortages through its nursing, teacher education and culinary arts programs. For further information, visit www.sfccnm.edu or call (505) 428-1000. ###