2015 SR Dev Co/PSDA Amend 1 - Notice of DefaultVIOL t
y
Cry
May 20, 2015
VIA E-MAIL AND
REGISTERED FIRST CLASS MAIL
SilverRock Development Company, LLC
c/o Meriwether Companies
11999 San Vicente Boulevard, Suite 220
Los Angeles, CA 90049
Attention: Graham Culp
Re: Notice of Default of Purchase, Sale, and Development Agreement and
Request for Meeting with City Manager and City Consultants
Dear Mr. Culp:
The City of La Quinta ("City") and SilverRock Development Company, LLC
("Developer") entered into a Purchase, Sale, and Development Agreement on
November 19, 2014 ("PSDA") for the SilverRock Resort Project ("Project"). While
the City remains committed to see the Project through to completion in accordance
with the PSDA, we find that the Developer is not achieving the Project schedule
outlined in the PSDA.
Attachment No. 3 of the PSDA sets forth schedule that both parties negotiated and
agreed upon that establishes times by which the Developer must start and
complete specific items of performance. The completion dates listed are the
"absolute outside dates permissible" under the PSDA. As negotiated by the
parties, the Schedule of Performance includes the following Pre -Development task,
which was required to be completed by May 19, 2015: "Prepare, submit to City
for approval, and obtain City's approval of, plans for Golf Course Realignment."
As of today, May 20, 2015, the Developer has not met this completion date. The
City has not received and approved the "Golf Course Realignment" as that term is
defined in the PSDA. Therefore, pursuant to Section 501 of the PSDA, the City
hereby declares the Developer in "Default" of its obligations under the PSDA. This
letter serves as written notice of the Default, and any cure of the Default is
governed by Section 501 of the PSDA.
78-495 Calle Tampico I La Quinta I California 92253 1 760.777.7000 1 www1a-Quinta.orjg
In consideration of the aforementioned and the fact that there are several other
items on the schedule that may become delinquent shortly, the City requests a
meeting to be held with designated City staff, including myself, and its consultants.
Please be prepared to outline and discuss a strategy with an associated schedule
that gets the Project back on track.
Should you have any questions and to schedule a meeting, please contact me at
(760) 777-7030; alternatively, if the questions are of a legal nature, please ask Mr.
Breskal to contact Bill Ihrke at (714) 641-5100.
Sincerely,
Frank J. peu
City M ager
cc: William H. Ihrke, City Attorney
Jon McMillen, Tall Man Group
Saul Breskal, Esq., Glaser Weil Fink Howard Avchen & Shapiro, LLP
Robert Green, The Robert Green Company
2
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Glaser Weil
10250 Constellation Blvd.
19th Floor
Los Angeles, CA 90067
Attn: Saul Breskal
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■ Complete items 1, 2, and 3. Also complete
item 4 if Restricted Delivery Is desired.
a Print your name and address on the reverse
so that we can return the card to you.
• Attach this card to the back of the mailpiece,
or on the front if space permits.
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3551 Fortuna Ranch RAod
Encinitas, CA 92024
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