Saint Luke's Anglican School was founded more than four decades ago when the church was located in Downtown Merced. Church leaders decided to close the campus because of declining enrollment, a difficult economy, and ongoing litigation against the diocese by the Episcopal Church.
The closure impacts eight full time and part time teachers as well as dozens of students.
"I mean 45 years of ministry in our community. Thousands of kids have come through our doors and a lot of lives have been changed and we want to give God thanks for that," said Rev. Ron Parry.
Church leaders have planned a celebration in June, when the church closes, to recognize the many years in the Merced community.
Reverend Parry said the lawsuit by the Episcopal Church placed a lien against the local diocese which doesn't allow the church to do any fundraising for long range capital needs.
A trial is set for January 2014.