2021-05-06 SRR Dev Co - Status Report 1 re Notice of Default to PSDAta QaLtra
,I Ir-ORNIA --
May 6, 2021
VIA E-MAIL AND
REGISTERED FIRST CLASS MAIL
RETURN RECEIPT REQUESTED
SilverRock Development Company, LLC
c/o The Robert Green Company
3551 Fortuna Ranch Road
Encinitas, CA 92024
Attention: Robert Green
Re: Status Report No. 1
Notice of Default of Purchase, Sale, and Development Agreement
Dear Mr. Green:
As set forth in the April 7, 2021 Notice of Default of Purchase Sale, and Development
Agreement ("Default Notice") for the SilverRock Resort Project, the City identified items
for performance that would be deemed by the City as the "commencement to cure"
pursuant to Section 501 of the PSDA. (Please note that capitalized terms and
abbreviations in this Status Report have the same meaning ascribed to them in the
Default Notice.)
The City received on May 4, 2021, a draft of the Developer's proposed amendment to the
PSDA. While the amendment was not in a form that could be brought before the City
Council within the 30-day "commencement to cure" period, the City, at this time, will
not declare Developer in breach of the PSDA so that the City and Developer will engage
in good faith negotiations for the proposed amendment's language and its terms and
conditions.
Additionally, the City received information that Poppy Bank and Mosaic are to be
included as sources for the financing of the Project. While a financing commitment(s)
has not been brought before the City Council for consideration within the 30-day
"commencement to cure" period, the City, at this time, will not declare Developer in
breach of the PSDA so that the Developer can continue to secure any necessary financial
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1 11 H-ORNIA -
commitment(s) that will allow the Developer to commence construction and, with due
diligence, continuously perform the project components which are now (or likely to
become) in Default under the current Schedule of Performance.
Furthermore, recurring study sessions at the Regular Meetings of the City Council will be
required until such time as all items in the Default Notice have been addressed to the
Council's satisfaction so that "commencement of cure" can be attained.
Per the direction of City Council and recommendation of the City Attorney, regular
Status Report letters, such as this one, will be issued until such time as the Developer
has commenced cure of the Default or the City declares the Developer in breach of the
PSDA due to a failure to sufficiently commence cure and, with due diligence,
continuously perform under the PSDA.
Finally, nothing in this Status Report or the Default Notice is intended to or does waive
any rights and remedies available to the City under the PSDA or otherwise available at
law or in equity. Should you have any questions, please contact me at (760) 777-7100.
Sincerely,
Ton McMillen
City Manager
cc: William H. Ihrke, City Attorney
Clinton L. Blain, Attorney at Law
3990 Old Town Avenue, Suite B-101
San Diego, CA 92110
Attention: Clinton Blain, Esq.
Dana Schiff man
Crosbie Gliner Schiff man Southard & Swanson LLP
12750 High Bluff Drive, Suite 250
San Diego, California 92130
Email: Dana Schiffman <dschiffman@cgs3.com>
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CAI IFORNIA -
Mosaic SilverRock LLC
c/o Mosaic Real Estate Investors, LLC
23975 Park Sorrento, Suite 420
Calabasas, CA 91302
Attention: Vicky Schiff
Email: vs@mosaicrei.com
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ATTN: ROBERT GREEN
3551 FORTUNA RANCH RD
ENCINITAS CA 92024-7214
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