The Medical College of Georgia is moving to cut ties with its current foundation and create a new one.

"Unfortunately, the Medical College of Georgia Foundation's priorities are not always aligned with (MCG) priorities," MCG President Daniel W. Rahn said in a statement issued Thursday. "We need a foundation that shares our vision."

If the foundation's board resigns by June 27, however, the school will reconsider.

James B. Osborne, the president and CEO of the foundation, said a letter from Dr. Rahn to foundation board Chairman William E. Mayher III was hand-delivered Thursday afternoon. But it lacked specifics other than a generalization about nonsupport, he said.

"This is a surprise to us," Dr. Osborne said. "We'll just see what happens. We need to know what the specifics are first."

Last year, the school requested $5 million from the foundation's $121 million in endowments to help construct a building for the School of Dentistry, Dr. Osborne said. Such a move would be unprecedented, he said.

The request was turned down by the foundation's executive committee in March and by the full board in April, he said.

There have been a number of issues over the years between the two institutions, said MCG Provost Barry Goldstein.

"But the final straw, if you will, the last item was the fact that they wouldn't support" the new dental building, a top priority for the school, he said.

But Dr. Osborne said the school is failing to take into account that of the $121 million endowment, only $8 million is unrestricted and the rest is contractually obligated to pay things such as endowed chairs at the school.

"We use that as a rainy day fund," to pay obligations in case interest income comes up short, he said.

Taking away $5 million or "two-thirds of that would be devastating," Dr. Osborne said.

Dr. Goldstein does not agree.

"They're our foundation, they have unrestricted resources, they're there to support the Medical College of Georgia and its endeavors," he said.

"I think that is an appropriate request."

The University System of Georgia Board of Regents approved a resolution Wednesday to give Dr. Rahn the power to "take any and all actions" to deal with the MCG foundation, including termination.

The affiliation between the two entities requires 90 days' notice for any change in status, so a new foundation could begin accepting gifts for the school then, Dr. Goldstein said.

If the agreement is terminated, so would the foundation's lease on its campus offices and "they would have to find other offices," Dr. Goldstein said.

"We're at their mercy on that," Dr. Osborne agreed.

The foundation still hopes to have further discussions and get clarification, but Dr. Goldstein said Dr. Rahn has only set out one condition for the school to reconsider: the board has to resign so he can appoint a new one.

However, even if there is a new foundation and the old one moves out, both sides agreed that the current foundation would continue to fund the scholarships and endowed positions it currently does -- just from somewhere else.