Bylaws Battle Intensifies at CCEDF, Mediation Ordered in Castillo-Garcia Lawsuit

Body

GRANTS, N.M. — The legal clash between Cibola Communities Economic Development Foundation President Robert E. Castillo and Grants Mayor Erik Garcia has officially spilled into the courtroom.

With restricted public access, and rising questions about the governance Cibola Communities Economic Development Foundation’s future on the line, the board held a meeting the same morning Garcia and Castillo were set to go to court, the meeting had one goal: amend the bylaws.

On May 22, a judge extended the Temporary Restraining Order (TRO) against Garcia and referred the case to mediation, setting a new hearing date for June 6, 2025, at 9 a.m. The original hearing, scheduled for the sane day, May 22, was closed to outside observers, including the Cibola Citizen, despite attempts to attend via the court-issued virtual link.

A Public Dispute with Public Implications

The civil case — Castillo v. Garcia, D-1333-CV-202500103 — stems from an April 26 altercation at the CDEC Annual Meeting. Castillo alleges that Mayor Garcia verbally assaulted him by waving a finger in his face and saying, “I’m going to get you.” Garcia has acknowledged the remark but called it political, not physical, and framed the lawsuit as an attempt to silence him ahead of key votes at CCEDF.

Days before the argument at the CDEC Annual Meeting, Castillo was caught on record badgering Garcia and insulting him at a Cibola Communities Economic Development Foundation meeting. The two men argued over the course of their meeting about how a meeting should be conducted, and how taxpayer dollars should be spent. At this meeting, Garcia repeatedly tells Castillo that the bylaws must be updated so the board could start doing its job.

At the May 22 CCEDF board meeting — held just hours before the planned hearing — Garcia was denied full participation. The mayor attempted to attend virtually but was cut off midcall by order of Castillo, who claimed the TRO prohibited Garcia from being involved, despite no explicit legal interpretation from the court.

The 13th Judicial District Attorney’s Office previously told the Citizen it could not weigh in on civil matters; the order was issued without explicit rules, further muddling the legal boundaries of the TRO, which restricts Garcia from contacting or being near Castillo — but does not explicitly bar participation in governance meetings involving taxpayer-funded institutions.

Mediation Ordered, Hearing Postponed

The case now heads to mediation, with Special Master Simone M. Siler overseeing the process. No public details from mediation have been released, and both parties have remained largely silent following the failed hearing.

According to court records, the amended TRO remains in effect until the June 6 hearing.

As of publication, it is unclear whether Garcia will be allowed to participate in upcoming CCEDF board meetings — which are set to include potential changes to bylaws or leadership structure — despite the fact he is the lawfully elected mayor and was selected to serve on the CCEDF Board by the Grants City Council.

The City of Grants has $40,000 a year set aside for CCEDF – taxpayer money – that is meant to be used for developing the local economy.

Chaos and Confusion at the CCEDF Board Meeting

The May 22, meeting of the Cibola Communities Economic Development Foundation (CCEDF) showed that board leadership remains struggling, but progress to amend the bylaws is ongoing.

The meeting opened with two controversies. Before the end of the meeting, NMSU-Grants President Marlene Toivanen would comment that the controversies ultimately took 40 minutes of the board’s time.

First, CCEDF Vice President Clemente Sanchez was quick to point out that the Cibola Citizen was present at the meeting. President Castillo asked the Citizen what intentions the newspaper had at the meeting, to which the newspaper said it was present to observe the meeting as taxpayer dollars flow through the organization. After arguments among board members and a motion with a second to allow the newspaper to stay, Sanchez would ask for the motion to be withdrawn and the Citizen be allowed to stay.

The second controversy was that Mayor Erik Garcia was barred from participating in person due to a Temporary Restraining Order filed against him by Board President Robert Castillo. Garcia joined the meeting via telephone but was ultimately silenced and disconnected at Castillo’s direction, who ordered for board members to “hang up” the call. This was after a board vote to allow Garcia to stay at the meeting.

Adding to the surreal nature of the meeting, after an argument about Garcia’s eligibility to participate even by phone, a representative from the 13th Judicial District Court attempted to contact Garcia during the meeting via phone, the purpose of which remains unclear.

The point of this meeting was to update the board’s bylaws, which were last updated in 2012. The bylaws this board has been operating on since 2018 have been invalid because they were never voted on.

A draft set of bylaws was prepared by a former executive director of the board who ultimately resigned because the board was late filing taxes and was not working to improve itself.

The board had asked a local attorney to review their proposed bylaws and offer opinions. The attorney mentioned that the meeting was running late, and he had to leave, but that he had thoughts about the bylaws which he made notes of.

The revisions were reviewed with NMSU-Grants President Marlene Toivanen, who is a CCEDF board member and helping coordinate the bylaw revisions and will seek board feedback before a final vote is held.

One of the most debated proposals was a suggestion to bar elected officials from serving on the CCEDF board. Supporters of the idea said it could help reduce political interference and personal conflict, especially in light of recent tensions that have paralyzed the board’s ability to function. No formal vote was taken on that provision, but several members indicated support.

Other revisions under consideration include limiting full voting rights to organizations that financially contribute to the Foundation, thereby aligning influence with investment. The new draft would also formally define officer roles — such as president, vice president, treasurer, and secretary — and establish term limits to promote turnover and reduce the risk of entrenched leadership.

The board also discussed adding clearer procedures for calling meetings, setting agendas, and determining quorum. These steps are designed to resolve past confusion and improve operational transparency. Additionally, the revisions would outline conditions under which a board member could be suspended or removed, a move meant to address absenteeism or conduct deemed harmful to the Foundation.

Financial accountability is another key focus. The new bylaws are expected to mandate routine financial reporting and bring the Foundation into compliance with nonprofit governance standards — a reaction to prior failures to file taxes and maintain up-to-date records.

If approved, the new bylaws would also shrink the board, taking it from a 10member board to a sevenmember board.

Toivanen said she would incorporate the board’s suggestions and circulate a final draft electronically for approval. If adopted, the bylaws would mark the most sweeping changes to the CCEDF’s structure in years and could dramatically impact who leads, who votes, and how the Foundation moves forward.

Off the record, several board members told the Citizen they were grateful for the newspapers presence, that they were able to work on the bylaws and credited the newspaper for preventing disorderly behavior.

A Warning on Confidentiality

Sanchez, who previously served in the New Mexico Legislature and now holds a senior position on the CCEDF board, voiced concern that too many internal matters were being shared publicly.

Without naming names, he suggested that recent disclosures to the press — including meeting details, board votes, and behind-thescenes disagreements — were undermining the integrity of the Foundation.

“We need to remember,” Sanchez said, “that what is discussed in executive session or in the boardroom stays in the boardroom.”

After delivering his comments, Sanchez put his head in his hands, silver hair gliding over his fingers.

His remarks came just minutes after board members had debated whether a restraining order against Grants Mayor Erik Garcia should impact his ability to vote on new bylaws — a question that directly tied CCEDF’s operations to a high-profile legal dispute and that had already garnered local media attention.

The remarks also came just weeks after the Cibola Citizen’s April 30, 2025 edition which exposed dysfunction in the CCEDF board and aggression between CCEDF board leadership and officials from the City of Grants.

Institutional Accountability at Stake

Castillo’s dual role — as both CCEDF president and CEO of CDEC — continues to raise questions about conflicts of interest and transparency.

The Cibola Citizen has previously reported on CDEC’s looming financial transition as the City of Gallup prepares to exit its $9 million annual power contract on July 1, 2025. Despite requests for comment from the Continental Divide Electric Cooperative board members, since the incident causing the Castillo-Garcia lawsuit occurred at CDEC’s Annual Event, none have responded.

The Cibola Communities Economic Development Foundation meeting is scheduled for June 11, 9 a.m., at 1050 Roosevelt Avenue in Grants, N.M.