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2024-08-02 LQ Press Release re SDC PSDA Breach Failure to Cure Default06)Qtd«r�, Contact: Marcie Graham Marketing Manager / Public Information Officer 760.777.7032 — Direct 760.501.8924 — Mobile Email: mgraham@Iaquintaca.gov For Immediate Release August 2, 2024 CALIFORNIA City of La Quinta Declares Developer in Breach of Contract for Talus La Quinta Project La Quinta, CA — The City of La Quinta announced that Robert Green Company and SilverRock Development Company LLC (collectively, SDC) are in total breach of a Purchase, Sale and Development Agreement, as amended (PSDA), for the Talus La Quinta project. Due to SDC's failure to cure, within the allowable time, a critical June 30, 2024, deadline to secure Recapitalization Loans, the City declares that SDC no longer has any rights as "Developer" under the PSDA. The June 30, 2024, deadline, outlined in Amendment No. 5 of the PSDA and reiterated in a May 24, 2024, Memorandum of Understanding (MOU), was not met. Since receiving the City's July 1, 2024, Notice of Default, SDC has further demonstrated bad faith by: • Unauthorized execution of multiple promissory notes purported to be secured by the real property owned by SDC. • Recording "mechanics liens" against its own property. • Falsely claiming in an August 1, 2024, letter that SDC has the authority to determine that CMG, one of the parties to the MOU has no further rights, liabilities, or obligations under the MOU or PSDA. The City of La Quinta is committed to the successful development of the Talus La Quinta project and will take all necessary steps to protect the interests of the community. ### 78495 Calle Tampico 1 La Quinta, California 922531760.777.70001 wwwlaquintara.gov