2024-07-01 KESQ (Stahl) PRA Resonse - TALUS Project StatusFrom: Jon McMillen
Sent: Monday, July 1, 2024 4:32 PM
To: Jeffrey Stahl; Monika Radeva
Cc: Jeffrey Stahl
Subject: Re: KESQ Talus June 30 Deadline Inquiry
Hello Jeff,
As of 12:01 a.m. Monday, July 1, 2024, SilverRock Development Company and The Robert Green Company (collectively,
SDC) are in default of all obligations as outlined in the original SilverRock/Talus Purchase, Sale and Development
Agreement (PSDA) and Amendment No. 5, entered into with the City of La Quinta on October 17, 2023.
The City has issued SDC a Notice of Default, giving the company until July 30, 2024, to cure the following defaults, as
stipulated in the original PSDA Article 500 and specifically Section 501:
1. Failure to deliver a copy to the City Attorney and City Manager of all loan documents in a
sufficiently final draft form for the Bridge Loans and Recapitalization Loans.
2. Failure to close on the Recapitalization Loans with the Recapitalization Lenders.
The MOU was entered into on May 24, 2024, and signed by the City, SDC, CMG, secured lenders Cypress Holdings
and Poppy Bank, hotel operator Montage North America, and general contractors RD Olson Construction Company and
Granite Construction Company.
The MOU paves the way for a new entity to assume developer rights and obligations including paying off what is owed to
Cypress and Poppy as well as contractors/subcontractors Granite and RD Olson and releasing SDC from any obligations
or liabilities related to Talus.
If SDC did not close recapitalization funding by the June 30 deadline, the MOU provides that Christopher M. George (CMG),
founder of a mortgage bank and known to be a responsible lender, has the right to pay SDC's debts and have the project
assigned to CMG which can then bring in a new developer for Talus, formerly SilverRock Resort.
CMG notified the City on Monday that it is exercising its right to proceed and pay off SDC's debts on or before July 30. If
CMG doesn't meet that deadline, the MOU will automatically terminate and CMG will not be obligated to the project.
The lawsuit filed June 14, 2024, in San Diego County Superior Court sought to prevent SDC from adhering to the terms of
the MOU, which is intended to get the project moving again. A San Diego Superior Court judge on Thursday, June 27, 2024,
denied a request filed for a temporary restraining order which enables the MOU to proceed.
The San Diego lawsuit is YH-MSCV Fund I, LLC et al. v. SilverRock Lifestyle Residences, LLC et al., Case No. 37 -2024-
00028106 -CU -SL -CTL.
Please let me know if you have additional questions.
Regards
alb
Gin
Jon McMillen 1 City Manager
City of La Quinta
78495 Calle Tampico 1 La Quinta, CA 92253
Ph. 760.777.7030
www.laquintaca.gov
www.playinlaquinta.com
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From: Jeffrey Stahl <jeffrey.stahl@kesq.com>
Date: Monday, July 1, 2024 at 8:36 AM
To: Jon McMillen <jmcmillen@laquintaca.gov>, Monika Radeva <mradeva@laquintaca.gov>
Cc: Jeffrey Stahl <jeffrey.stahl@kesq.com>
Subject: KESQ Talus June 30 Deadline Inquiry
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Good morning Jon,
I hope all is well with you.
I'm writing to inquire if there has been a deal with Robert Green to secure financing for the TALUS
development. Yesterday, June 30, was the city's latest deadline, according to the City's MOU
announcement in late May. Can you confirm if there has been a deal struck, or give details on what has
happened?
We'd appreciate a statement or any other information the city can provide on that, also the San Diego
securities lawsuit the city intervened in last week-- what the city is hoping to secure there, and any
movement in the project's construction.
Thanks in advance,
Jeff Stahl
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