Attorneys for the parties would not discuss details of the settlement, but all expressed relief that the case had finally ended.
"The foundation is very pleased that we've reached a settlement with Daystar," said Ardelle St. George, the general counsel for the foundation. "I think everyone is very pleased with it."
The district put KOCE up for sale in 2003, hoping to raise money for academic programs and ultimately sold the station to its own foundation.
Daystar also bid for KOCE and sued, claiming its $25.1 million cash bid trumped the foundation's $8 million cash and $24 million credit offer.
An Orange County Appellate Court judge voided the sale in 2006.
Sherman would not disclose details of the settlement but said, "KOCE will continue to be owned and operated by the foundation. Daystar is very pleased with the agreement."
With the foundation firmly in charge of the station, the district will not have to return the $8-million down payment that it spent shortly after the sale.
District trustee Jerry Patterson admitted that it had been hard to find a resolution to the KOCE case, but said the final settlement tied as many loose ends as possible.
"I knew, ultimately, there would be some resolution, but everybody seemed to be on a horse riding in a different direction," he said. "As it turns out, it's not number-one perfect for probably anyone, but it's close to that for the district."
