2024 08 06 CC Minutes Sp MtgCALL TO ORDER
CITY COUNCIL MINUTES
SPECIAL MEETING
TUESDAY, AUGUST 6, 2024
A special meeting of the La Quinta City Council was called to order at 4:15 p.m. by Mayor
Evans.
PRESENT: Councilmembers Fitzpatrick, McGarrey, Pena, Sanchez, and Mayor Evans
ABSENT: None
PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA — None
CONFIRMATION OF AGENDA — Confirmed
PLEDGE OF ALLEGIANCE
BUSINESS SESSION
1. REVIEW TERM SHEET RELATING TO PROPOSED INTERIM AGREEMENT
FOR TRANSFER OF DEVELOPER RIGHTS AND OBLIGATIONS FOR THE
TALUS PROJECT (FORMERLY SILVERROCK RESORT)
City Manager McMillen presented the staff report, which is on file at the Clerk's Office;
the City Manager explained that, due to SilverRock Development Company's (SDC)
bankruptcy filing on August 5, 2024, he requested that the recommended action be
amended to authorize the City Manager to negotiate, on behalf of the City, an Interim
Agreement with the parties to the Memorandum of Understanding and Agreement
Relating to Default and Developer Requirements (Purchase, Sale, and Development
Agreement) (MOU), executed on May 24, 2024, excluding SDC and its associated
entities, and to bring it back to Council for consideration and approval after the general
terms and conditions have been negotiated, consistent with the Term Sheet included as
Attachment 1 to the staff report.
City Attorney Ihrke explained the anticipated timing to complete the above stated Interim
Agreement negotiations and to obtain any signatures, is dependent on the bankruptcy
case filed by SDC, which triggers certain federal laws, including an automatic stay on
transactions that would transfer real properties owned by SDC, including by foreclosure;
the City Attorney further explained that, while negotiations may be allowable under federal
bankruptcy law during the automatic stay, the ability to enforce such Interim Agreement
would likely not be allowed thereby lessening the immediate need to grant the City
Manager signing authority for the Interim Agreement that arose when this Special Meeting
was noticed; and, while the City may want to continue negotiations in order to protect the
CITY COUNCIL MINUTES
SPECIAL MEETING
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City's interests as well as to draft provisions that may be relevant in the plan to exit out of
bankruptcy, as long as the bankruptcy case remains pending, the ability to enforce such
Interim Agreement would likely not be allowed thereby also giving time for any such
Interim Agreement, once drafted, to return to the City Council for review and approval
before signature by the City Manager.
Mayor Evans stated that the City will still have intention of moving forward with the
negotiations on the Interim Agreement, but because of the bankruptcy case, the City
Manager will prepare accordingly so that a potential agreement will come back to the
Council for action.
Council Member Fitzpatrick also stated that, as part of the protection of the City's
interests, the City will also be protecting the site as discussed.
MOTION — A motion was made and seconded by Mayor Evans/Mayor Pro Tem Pena to
authorize the City Manager to negotiate on behalf of the City an Interim Agreement based
on the general terms and conditions of the Term Sheet and return to City Council for
review and approval, when allowable, given the bankruptcy filing. Motion passed
unanimously.
ADJOURNMENT
There being no further business, a motion was made and seconded by Councilmembers
Fitzpatrick/Pena to adjourn at 4:20 p.m. Motion passed unanimously.
Respectfully submitted,
MONIKA RADEVA, City Clerk
City of La Quinta, California
CITY COUNCIL MINUTES
SPECIAL MEETING
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