The City of La Quinta has entered into a Memorandum of Understanding and Agreement (MOU) with The Robert Green Co. and SilverRock Development Co. (SDC) regarding the future of Talus La Quinta, formerly known as SilverRock Resort. This agreement, signed on May 24, 2024, outlines the next steps if SDC fails to meet the June 30, 2024 deadline for closing escrow on recapitalization loans and curing all defaults necessary to restart development.
The MOU is a result of collaborative efforts involving multiple parties 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 MOU include:
– SDC must close escrow on recapitalization loans and pay all outstanding obligations to lenders and contractors/subcontractors by June 30, 2024, as 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.
– SDC is prohibited from filing for bankruptcy protection or placing any Talus properties held by SDC into receivership.
– A new entity may assume developer rights and obligations including paying off debts owed to Cypress and Poppy as well as contractors/subcontractors Granite and RD Olson. This would release SDC from any obligations or liabilities related to Talus.
For further information, contact Marcie Graham at mgraham@laquintaca.gov or call 760.777.7032.
