2018-10-25 SRR - Urban Habitat Litigation Rumors - City Official Statement
October 25, 2018
OFFICIAL STATEMENT REGARDING SILVERROCK LITIGATION RUMORS
Social media has been abuzz regarding whether contractors hired by Robert Green and
SilverRock Development Company (SDC) are suing SDC and the City for work performed at
the SilverRock Golf Course. This is NOT the case.
The following is a chronology of events.
o May 2014 - August 2014: The Water District funds and moves a portion of the
Coachella Canal that runs through the SilverRock Golf Course.
o September – October 2014: The City funds and improves holes 10, 12 and 15 to
accommodate the Canal relocation and improve play.
o May – November 2017: SDC funds and creates a new 18th hole (to replace the
existing 18th hole, the site of the Montage Resort), creates a new 11th hole, and
reconfigures holes 12, 14 and 17 to improve upon the work the City did in 2014.
SDC hired Urban Habitat (UH) for this work; their previous contractor inflated their price
due to the project labor agreement SDC has with the unions. A $2,000,000 budget was
established and SDC deposited $2,000,000 into an escrow account that required City
approval to release funds (to insure the work was properly completed on City property).
Cost overruns occurred and UH filed a Stop Notice (to freeze escrow fund releases). UH
also filed a complaint in Superior Court but did not serve either SDC nor the City. SDC and
UH agreed to a Settlement Agreement and Mutual Release in July 2018, which released the
remaining escrow funds. A second payment from SDC is due when the commercial
development loan for the SilverRock Development closes or by March 31, 2019. No other
contractor has filed Stop Notices or liens for this work.
Frank J. Spevacek
City Manager