The City of La Quinta enters into a Memorandum of Understanding, (MOU) with developer Robert Green Co and SilverRock Development, for Talus La Quinta, formerly SilverRock Resort
Under the agreement, SilverRock Development (SDU), and project leader, Robert Green must close escrow on recapitalization of $600 million in loans and pay all outstanding obligations by June 30, 2024.
The agreement extends the earliest possible Foreclosure Sale date for the properties owned by Cypress Point Holdings, a corporate investment firm for Talus and/or Poppy Bank, to July 2, 2024. Additionally, the agreement prohibits SDC from filing for bankruptcy protection or placing any Talus La Quinta properties held by SDC into receivership.
This agreement paves the way for a new entity to assume developer rights and obligations if the June 30 deadline is missed, releasing SDC from obligations or liabilities related to Talus.
The agreement comes after the city issued two default notices against the developer in response to notice’s of foreclosure and trustees sale were recorded by Cypress Point Holdings and Poppy Bank.
La Quinta has had large-scale development plans for this 525 acre project site for almost 20 years, The Robert Green Company partnered with the city in 2014 to bring the Talus project to life, slated as the first of its kind, destination resort, in the valley.
The project will feature
- Renovation of the Ahmanson Ranch House as a themed restaurant
- A 134-room luxury branded hotel and spa
- A 200-room branded lifestyle hotel
- A 71,000 square-foot conference center
- Branded resort-style homes and condominiums
- Retail and recreation space
- A new golf clubhouse
The total price tag for the project has ballooned to more than $600 million and has met multiple delays and obstacles along the way including a recession, pandemic, supply chain disruptions and soaring costs of materials, labor and interest rates.
This latest update comes as Green aims to secure more than $300 million in new financing for the project in addition to re-financing existing loans on the project.
The city has been looking forward to the added revenues Talus La Quinta would bring to the city, and is a key factor to ensuring the city’s financial future.