The City of La Quinta on Friday, May 24, 2024, entered into a Memorandum of Understanding and Agreement (MOU) with The Robert Green Co. and SilverRock Development Co. (collectively, SDC). This agreement outlines the next steps should SDC fail to meet the June 30, 2024 deadline to close escrow on recapitalization loans and cure all defaults necessary to restart the development of Talus La Quinta, formerly known as SilverRock Resort.
The MOU is the result of continued collaborative efforts among all parties involved, including SDC, Cypress Holdings LLC, Poppy Bank, Chris M. George (CMG), Montage North America LLC, RD Olson Construction Co., and Granite Construction Co., all of whom have signed the agreement.
Key points in the agreement include:
– SDC must close escrow on recapitalization loans and pay all outstanding obligations to lenders and contractors/subcontractors by June 30, 2024. This requirement is stipulated in Amendment No. 5 of the Purchase, Sale and Development Agreement (PSDA) between the City of La Quinta and SDC executed on November 16, 2023.
– The Foreclosure Sales dates for the Talus property by Cypress and/or Poppy are extended to July 2, 2024 at the earliest.
– SDC is prohibited from filing for bankruptcy protection or placing any Talus properties held by SDC into receivership.
– The agreement allows for a new entity to assume developer rights and obligations. This includes paying off what is owed to Cypress and Poppy as well as contractors/subcontractors Granite and RD Olson while releasing SDC from any obligations or liabilities related to Talus.
