2025 10 07 SRR - Turnbridge - ORD 626 SRR ADA Staff RptCONSENT CALENDAR ITEM NO. 3
Revised 10/04/2025 — see page 27 tracked changes below
City of La Quinta
CITY COUNCIL MEETING October 7, 2025
STAFF REPORT
AGENDA TITLE: ADOPT ORDINANCE NO. 626 ON SECOND READING TO
CONDITIONALLY APPROVE DEVELOPMENT AGREEMENT 2025-0001 (REINSTATED
AND AMENDED DEVELOPMENT AGREEMENT 2014-1001) TO FACILITATE
DEVELOPMENT OF THE SILVERROCK SPECIFIC PLAN AREA; CEQA: AN ADDENDUM
TO ENVIRONMENTAL ASSESSMENT 2002-453 HAS BEEN PREPARED PURSUANT TO
SECTIONS 15162 AND 15164 OF THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
(CEQA); LOCATION: SOUTH OF AVENUE 52, WEST OF JEFFERSON STREET
RECOMMENDATION
Adopt Ordinance No. 626 on second reading to conditionally approve Development
Agreement 2025-0001, Reinstated and Amended Development Agreement 2014-1001, to
facilitate development of the SilverRock Specific Plan area.
EXECUTIVE SUMMARY
• On September 22, 2025, Council adopted resolutions related to the SilverRock
Resort project as follows: 1) Resolution No. 2025-022 approving Environmental
Assessment (EA) 2025-0002 to adopt Addendum No. 3 to previously adopted
Mitigated Negative Declaration under EA 2002-453; and 2) Resolution No. 2025-023
conditionally approving the Economic Development Subsidy Report, Transient
Occupancy Tax (TOT) Revenue Sharing Agreement, and Option to Purchase Real
Property Agreement which includes a Repurchase Option Agreement.
• On September 22, 2025, Council introduced Ordinance No. 626 for first reading to
conditionally approve Development Agreement 2025-001, Reinstated and Amended
Development Agreement 2014-1001, for SilverRock Resort to reinstate development
of the project site with a new developer, TBE RE Acquisition Co II LLC, a subsidiary
of the applicant, Turnbridge Equities, enclosed as Exhibit A to the ordinance.
• If adopted on second reading, as amended by the City AttorneyCouncil on first reading,
Ordinance No. 626 will go into effect 30 days after adoption, or on November 7, 2025,
but the approval of Development Agreement 2025-001, Reinstated and Amended
Development Agreement 2014-1001, would be contingent upon an order issued by the
U.S. Bankruptcy Court for the District of Delaware (Bankruptcy Court) authorizing the
sale of the Phase 1 Property to Turnbridge Equities' designated subsidiary. If the
Bankruptcy Court issues no such order, Ordinance No. 626 will automatically be
rescinded without further action needed by the Council.
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FISCAL IMPACT
The SilverRock Resort project, depicted in the vicinity map included as Attachment 1, will
require substantial investment by the applicant, Turnbridge Equities. The City has agreed
that incentives are required to assure the successful completion of development and long-
term economic viability of the project. Among other state laws, California Government Code
Sections 53083 and 52201 authorize cities to provide public subsidies to further economic
development and opportunities as long as, among other requirements, the City completes
an analysis of both the amounts to be credited to the developer, and the returns that can be
expected as a result of the project, prior to providing the incentives that would benefit the
developer. In this case, the City has identified three incentives, which were conditionally
approved via Resolution No. 2025-023, adopted on September 22, 2025:
1) A Transient Occupancy Tax revenue sharing agreement whereby an amount equal
to 90% of TOT collected on a portion of the project site will be used as a basis for
providing "rebate" payments to the developer for 10 years, and equal to 60% of TOT
collected on a portion of the project site for the following 5 years, after which time all
TOT revenue sharing with the developer will expire.
2) A fixed purchase price of $17 million for "Phase 2" property, including the existing golf
course, the Ahmanson Ranch House and the portion of the "Phase 2 Property"
subject to an option to purchase, if certain conditions, including the successful
completion of the luxury hotel, golf clubhouse and associated amenities of the
Phase 1 project, are met by the developer.
3) A potential subsidy that would benefit development of the Phase 1 project, based on
an amendment to a Debtor -In -Possession (DIP) financing arrangement (DIP
Financing Agreement) between the City and debtors, in an amount up to $13 million,
which provides the debtors with liquidity to sell the Phase 1 property, wind down their
estate, and prosecute a plan of liquidation through the Bankruptcy Court. The City
conservatively estimates that $5.5 million of the up to $13 million will be repaid,
resulting in a net incentive of $7.5 million.
The City's independent consultant has completed that analysis via the Economic
Development Subsidy Report, included as Exhibit A to Resolution No. 2025-023, which
shows that the City's TOT sharing incentive will provide $106.6 million over 15 years, and
that the City will receive net revenues over 30 years of $301.9 million ($263.6 million net of
the amended DIP credit and Phase 2 property incentive). This includes TOT, sales tax and
property tax generated by the project. In addition, the project will generate 2,500 to 3,000
jobs during construction, and once open 445 full time equivalent permanent jobs, the indirect
economic benefits of new guests' and residents' discretionary spending in the City, and the
potential for increased investment in the City as a result of the project. This report satisfies
the requirements of law under Government Code Sections 53083 and 52201.
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BACKGROUND/ANALYSIS
Development Agreement
A detailed background and summary of the SilverRock Resort Area is included in the
Recitals to Development Agreement 2025-0001, Reinstated and Amended Development
Agreement 2014-1001 (ADA) (Exhibit A of the Ordinance) and incorporated into this report
by reference.
Originally, the former La Quinta Redevelopment Agency purchased the approximate 525-
acres project site, with the intention that its use and development would be a world -class
destination golf resort/luxury residential and public amenities project, to act as a substantial
revenue generator for the City. In 2012, after the construction of the Arnold Palmer Classic
Golf Course was completed, the State dissolved redevelopment. The City, with the approval
of the State, invested in the entire SilverRock Resort Area so as to maintain control and
ultimately oversee its sale and development for those original purposes.
In 2014, SilverRock Development Company, Inc., the former developer, applied to the City
for approval of DA 2014-1001, among other agreements, that were within the purview of the
Council. DA 2014-1001 incorporated one of those other agreements, the Purchase, Sale,
and Development Agreement, as amended (collectively, PSDA), which governed the former
project.
Generally, the former project consisted of approximately 132+/- acres conveyed to the
former developer for the construction of a luxury hotel, a lifestyle hotel, spa, conference
center and branded residential components, a permanent golf clubhouse, and a mix of
commercial and residential areas to complement the existing golf course and a potential
future golf course. Since 2014 and per the PSDA, there have been parcel adjustments
through lot -line adjustments, and there were various development permits issued for
infrastructure, the luxury hotel and facilities, and the luxury residential component.
Development of the SilverRock Resort project was delayed due to, among other reasons,
the bankruptcy of the former developer. The City, working with the former developer
(referred to in the bankruptcy proceeding as the debtors) and its current controlling manager
(a former Bankruptcy Court judge with expertise in bankruptcy work-outs), has been
intricately involved with the proceedings in Bankruptcy Court to facilitate a sale of the
properties owned and partially developed by the former developer to a new owner and
developer.
As part of the bankruptcy proceedings, the City and debtors negotiated, and the Bankruptcy
Court approved, a set of "Bid Procedures" that, among other provisions, authorized the
marketing opportunity for the purchase of the debtors -owned property referred to as
"Phase 1" and "Phase 1 Property". The marketing opportunity also referenced City -owned
property, referred to as "Phase 2" and "Phase 2 Property" that is comprised of approximately
195+/- acres. While the Phase 2 Property is subject to the SilverRock Resort Area Specific
Plan, it is not owned by the former developer/debtors, but the former project included the
possibility of an option "springing" into effect for the possible acquisition of the Phase 2
Property upon completion of specified project components in Phase 1.
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Under the Bankruptcy Court -approved Bid Procedures and other relevant orders, as part of
the purchase of Phase 1, the developer is required to enter into an ADA for development of
the Phase 1 Property, along with several other documents that will implement the project.
Attachment 2 shows the vicinity map for the project area with the phases labeled.
The ADA is attached as Exhibit A of the Ordinance. The ADA describes the developer's
obligations for development, including the following major components (see Attachment 2
for proposed land plan):
• Phase 1 Development Components:
✓ Development of a 150± room luxury hotel in the area of the partially
constructed Montage Hotel. The hotel must include a spa, restaurant,
conference and banquet facilities, pool/recreation facilities, and "back of
house" facilities.
✓ Development of a public golf clubhouse, relocated from its current location to
an adjacent area of the luxury hotel and SilverRock/Talus Way.
✓ Residential lots branded to the hotel, in the area where the single-family units
were partially developed, and allowing short-term vacation rentals (STVR)
through the hotel's centralized management.
✓ A private clubhouse and pool/recreation area for residential units to be located
where the former project's public golf clubhouse would be.
✓ Additional for sale residential units on the east half of the Phase 1 property,
which may include STVRs.
✓ Landscaping and trails within Phase 1 and along its perimeter adjacent to
Avenue 52.
✓ Construction of all infrastructure (roads, utilities, etc.) necessary to serve
Phase 1.
• Potential purchase of the land within Phase 2, the City -owned property in the east
and south portion of the site.
The implementation of these development components will be undertaken separately, with
future Site Development Permits, Tract Maps, or other means as needed to implement them,
except to the extent that there are expedited permitting provisions proposed in the ADA to
allow for the continued securing and clean-up, improvement, and removal of partially
completed improvements to effectuate the Phase 1 Development Components. Pursuant to
the proposed project, the developer will use components of the existing partially completed
structures, while other parts, namely the partially constructed luxury residential homes and
partially built spa, will be demolished to effectuate development.
The ADA also contains a number of provisions relating, but not limited to, the developer's
and the City's responsibilities, financing of project components, implementation of CEQA
mitigation measures, and minimization of impacts to golf play and operation.
There is a schedule of performance that includes "hard dates" for the commencement and
completion of construction for the luxury hotel and amenities, and for the public golf
clubhouse. For the luxury single family home sites, the ADA and schedule of performance
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require the delivery of finished lots that are utility ready and available for purchase as custom
homesites that, when lots are purchased, must be constructed timely and in accordance with
requirements of the luxury hotel operator. Dates for the luxury homesites are approximate
for commencement and completion, but the ADA remains binding on these project
components until 50% of the finished, utility -ready lots have homes constructed on them.
The luxury condominiums component has similar allowances for market conditions to govern
phasing of that project components' development.
Once the luxury hotel and amenities are constructed and opened for marketing to regular
guests, the ADA allows for the transfer of the golf course and Ahmanson Ranch House from
the City to the developer, with land use covenants attached to both that, in general, require
the continued availability of the golf course as part of the luxury hotel operations.
Additionally, the ADA and land use covenants obligate the developer to maintain and
operate the golf course with continued access to La Quinta residents at a reduced rate.
Also after the luxury hotel and amenities are constructed and opened for marketing to regular
guests, the developer will have a right to purchase the Phase 2 Property — excluding the
portion of this property that contains SilverRock Park and adjacent retention basin —
pursuant to an Option Agreement. The developer cannot own the Phase 2 Property until
specified conditions are met in the ADA and Option Agreement, which includes the
requirement that the relocated public golf clubhouse has been constructed and open for use
in connection with the golf course. However, the ADA does allow, at the election of the
developer, for development of the Phase 1 B single-family residential project to be integrated
with "non -vertical" development of the Phase 2 property, such as grading and infrastructure
installation. A separate license agreement with the City would be required, with insurance
and indemnity protections (among other requirements), and the developer must provide
sufficient evidence to the City for the financing and completion of any "non -vertical"
development on Phase 2 prior to owning that property pursuant to the Option Agreement.
Additional Documents and Agreements
In addition to the ADA, other documents and agreements related to the pre -development,
development, and allowable uses at the project site were conditionally approved by Council
on September 22, 2025, via Resolution No. 2025-023, as follows:
1) Economic Subsidy Report pursuant to Government Code Sections 53083 and 52201;
2) TOT Revenue Sharing Agreement; and
3) Option to Purchase Real Property Agreement, which includes a City Repurchase
Option Agreement.
California law authorizes cities to provide incentives that further economic development and
opportunity. Government Code Section 53083 defines "economic development subsidies"
broadly to include, and is not limited to, grants, loans, loan guarantees, land price subsidies,
matching funds, tax abatements, tax exemptions, and tax credits. Whenever a subsidy is
more than $100,000, a report is required that includes specified information, such as
projected tax revenue resulting from a project and jobs created as a result of a project.
Similarly, Government Code Section 52201 authorizes the sale or leasing of City -owned
property for a value that takes into consideration covenants, conditions, and constraints to
development unique to a site, in order to create an economic opportunity. A report likewise
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is required that includes, among other specified information, an explanation as to why the
sale of the publicly owned property will assist in the creation of an economic opportunity.
The Economic Development Subsidy Report, summarized under "Fiscal Impacts," above,
provides a summary on the incentives being provided to the developer, the economic
benefits to the City, and includes the information required under Government Code Sections
53083 and 52201. The Economic Development Report was conditionally approved by
Council on September 22, 2025, via Resolution No. 2025-023, and the incentives analyzed
in that report, if conditions are met, would be implemented through two agreements
described below (the TOT Revenue Sharing Agreement and Option Agreement), and a third
pending item before the Bankruptcy Court involving a proposed amendment to the DIP
Financing Agreement.
The TOT Revenue Sharing Agreement sets forth the terms and conditions under which TOT
revenue will be used as a basis for determining a tax "rebate" amount that will then be paid
by the City to the developer from available revenues for providing public subsidies. The TOT
actually collected by the City from the "Phase 1A" area, as shown on the Vicinity Map, is the
area of the project that would be used to calculate the amount of the tax rebate. This
incentive would be provided to the developer for a period of 15 years following the
completion of the hotel being open for marketing to guests. The agreement also provides
rights to the City, including termination of the agreement and a day -for -day reduction in the
TOT rebate payment to the developer, for failing to meet their obligations for completion and
operation of the luxury hotel.
The Option Agreement sets forth the terms and conditions under which the developer may
purchase from the City the Phase 2 Option Property, which is noted in the Vicinity Map and
generally includes all of the real property, including the existing golf driving range, in the
northeastern portion of the SilverRock Resort Area, except the existing SilverRock Park and
adjacent retention basin, which the City will continue to own. Among other key conditions to
being able to close an escrow for the purchase of the Phase 2 Option Property, the
development of the hotel must be completed prior to the exercise of the Option and the
public golf clubhouse must be completed prior to closing the escrow for developer's
purchase of this property. Additionally, prior to closing the escrow, the City and developer
must have negotiated and entered into either an amendment to the ADA currently before
the Council or a new statutory development agreement that will govern with more precision
the phasing of development and other mutually agreed upon terms for the Phase 2 Option
Property after the developer acquires it. The Economic Development Subsidy Report
summarized the purchase price and the significant constraints to development that support
the subsidies due to substantial costs associated with any development at the site, such as
legally imposed on- and off -site improvements that include, among other utility costs, electric
utility substation upgrades.
If escrow closes and the developer acquires the Phase 2 Option Property, there is a
Repurchase Option Agreement that sets forth terms and conditions for the City to have the
right to repurchase the Phase 2 Option Property if the developer falls into a material default
regarding the development of the Phase 2 Option Property according to the required
amended ADA or new development agreement (noted above).
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Should the Council wish to enter into the ADA, these additional documents complete the
implementation of the ADA and project as proposed by Turnbridge Equities. The incentive
relating to the amendment to the DIP Financing Agreement is controlled by the debtors and,
as of the date of this report, is pending in the Bankruptcy Court.
The economic development subsidies, discussed above, are contingent upon both the
adoption of Ordinance No. 626, and upon the Bankruptcy Court approving the sale of the
Phase 1 Property to the applicant.
Bankruptcy Court Proceedings
On August 5, 2024, SilverRock Development Company (and affiliates) filed petitions for
bankruptcy protection in the Bankruptcy Court. Per prior Council authorization, the City
retained Special Counsel and has continuously been working with the debtors as the case
moves forward. Pursuant to "Bid Procedures" that included an auction for the sale of the
debtors' estate, which is the "Phase 1 Property" that is part of the applicant's project, the
debtors must present to the Bankruptcy Court the "successful bidder," selected purchaser
and future developer of this property.
After a substantial marketing and interviewing phase, and after pre -auction negotiations
between debtors, the City and potential bidders, and after the completion of the auction in
August, the debtors received input from the City as to the most qualified bidder, as required
by the Bid Procedures. The debtors have filed a Motion Approving the Sale of the Debtors
Assets (Sale Motion), identifying the subsidiary of Turnbridge Equities as the "successful
bidder" and recommended buyer and future developer of the Phase 1 Property. Because
the Bankruptcy Court must approve the sale of the debtor's assets before Turnbridge
Equities can own the Phase 1 Property, any Council action that would approve the ADA and
related items must be conditioned on the Bankruptcy Court authorizing the sale of the
debtors' estate.
Along with the Sale Motion, a related Motion to Amend the DIP Financing Agreement is
pending. That motion and its various attachments, filed in the Bankruptcy Court, are
referenced as being part of this report because they have the terms and conditions that
would implement the DIP Financing Agreement incentive, which is summarized above and
in the Economic Development Subsidy Report.
MUENCY AND PUBLIC REVIEW
Public Hearing Notices
The September 22, 2025, public hearing for the project was duly noticed as follows:
(A) The public hearing notice for the project was advertised in The Desert Sun
newspaper on September 11, 2025, and distributed to properties within 500 feet of
the site.
(B) The public hearing notice for the Economic Development Subsidy Report was
advertised in The Desert Sun newspaper on September 8, 11, and 18, 2025.
All written comments received are on file and available for review with the City Clerk's Office
and the Design and Development Department. One letter, sent directly to Council Members
and the Director of Design and Development, is addressed below.
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On September 26, 2025, after the conclusion of the Council's September 22, 2025, public
hearing, a letter sent on behalf of Supporters Alliance for Environmental Responsibility
(SAFER) was received by the City, requesting an extension of the Council's October 7, 2025,
meeting so that SAFER could review the previously adopted Mitigated Negative Declaration
under EA 2002-453 (2002 MND). As the Council is aware, environmental documents
approved under the California Environmental Quality Act (CEQA) are available after
adoption not only in City Hall but also on the City's Internet Website through its public
document portal (Laserfiche), including archived documents such as the 2002 MND. Since
the project's application was received by the City, and for the entire time that applicant's
project was before the Planning Commission and the Council, the 2002 MND was available
and accessible via the City's Internet Website, and remains accessible specifically at:
https://laglaserweb.laquintaca.gov/WebLink/DocView.aspx?id=397126&dbid=1 &repo=CityofLaQuinta&cr=1
The September 26 letter, referring to a document production request received by City Staff
from SAFER the day before on September 25, 2025, "reiterated" a request for "immediate
access" to the 2002 MND under the Public Records Act (Gov. Code, § 7920.000 et seq.).
The City Clerk's Office replied to SAFER that same day, on September 26, 2025, by
providing the link to the City's public document portal. The September 26 letter also alleged
that, under CEQA, a 20-day review period should be allowed to review the 2002 MND even
though the document was readily accessible on the City's Website. The authority cited in
the September 26 letter applies under CEQA when there is (or was) an intent by a public
agency to adopt a negative declaration or mitigated negative declaration, which was not the
case here. In fact, the case Emmington v. Solano County Redevelopment Agency (1987)
195 Cal.App.3d 491, cited in the September 26 letter, supports the Addendum that was
presented and reviewed by the Council at its September 22 public hearing. In Emmington,
the lead agency prepared a 5-page initial study, concluding that nineteen (19) previously
prepared EIR's and planning documents spanning the course of eight (8) years adequately
addressed the environmental impacts of the redevelopment plan. Finding the 5-page initial
study inadequate, the court advised that CEQA minimum requirements are met when
compiling all the relevant environmental data into a single format report, "a procedure which
would facilitate both public input and the decision -making process." (Id., at p. 503, quoting
Russian Hill lmprovement Assn. v. Board of Permit Appeals (1974) 44 Cal.App.3d 158, 168.)
The over 380-page Addendum No. 3 to the 2002 MND, adopted by the Council with
Resolution No. 2025-022, did just that. The Addendum compiled all the relevant
environmental data into a comprehensive, single report, with supporting references,
mitigation monitoring program, and appendices. Thus, case authority cited in the September
26 letter actually supports the use of the Addendum that was prepared, reviewed, and
approved by the Council at its September 22, 2025, duly noticed public hearing.
ALTERNATIVES
As Council conditionally approved Development Agreement 2025-001, Reinstated and
Amended Development Agreement 2014-1001, with the first reading of Ordinance No. 626,
and because the Bid Procedures as approved by the Bankruptcy Court have upcoming
deadlines, staff does not recommend an alternative.
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Prepared by: Olivia Rodriguez, Deputy City Clerk
Bill Ihrke, City Attorney
Approved by: Monika Radeva, City Clerk
Attachments: 1. Vicinity Map
2. Proposed Land Plan
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ORDINANCE NO. 626
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF LA QUINTA, CALIFORNIA, CONDITIONALLY
ADOPTING A REINSTATED AND AMENDED
DEVELOPMENT AGREEMENT FOR THE SILVERROCK
RESORT
CASE NUMBER:
DEVELOPMENT AGREEMENT 2025-0001
(REINSTATED AND AMENDED DEVELOPMENT AGREEMENT 2014-1001)
PROJECT: SILVERROCK RESORT
APPLICANT: TBE RE ACQUISITION CO II LLC
(SUBSIDIARY OF TURNBRIDGE EQUITIES)
WHEREAS, the City Council of the City of La Quinta, California, did, on
September 22, 2025, hold a duly noticed Public Hearing to consider a request by TBE
RE Acquisition Co II LLC., subsidiary of Turnbridge Equities, for approval of a
Reinstated and Amended Development Agreement ("Development Agreement" or
"ADA") and associated documents and agreements for the SilverRock Resort (2025
SilverRock Master Plan), relating to real property south of Avenue 52, west of Jefferson
Street, with Assessor Parcel Numbers:
APNs: 770-260-037; 776-150-029, -030; 777-060-008, -010, -011, -019, -020, -062, -
070, -071, -072, -074, -075, -078, -079, -080, -081, -082, -083, -084, -085; 777-490-023,
- 024, -035, -037, -039, -042, -046, -047, -048, -049, -050, -053, -054, -055, -057, -058, -
059, -060, -061, -062, -063, -064, -065, -066, -067, -068, -069, -070, -071, -072, -073, -
074, -075, -076, -077, -078, -079, -080; 777-510-001, -002, -003, -004, -005, -006, -007,
- 008, -009, -010, -011, -012, -013, -014, -015, -016, -017, -018, -019, -020, -021, -022, -
023, -024, -025; 777-520-001, -002, -003, -004, -005, -006, -007, -008, -009, -010, -011,
-012, -013, -014, -015, -016, -017, -018
WHEREAS, the Design and Development Department published a public hearing
notice in The Desert Sun newspaper on September 11, 2025, as prescribed by State
law and the La Quinta Municipal Code. Public hearing notices were also mailed to all
property owners within 500 feet of the site and emailed or mailed to all interested parties
who have requested notification relating to the project; and
WHEREAS, the Planning Commission of the City of La Quinta, California, did
adopt Planning Commission Resolution 2025-008 recommending City Council approval
of the Development Agreement at a duly noticed Public Hearing on September 9, 2025;
and
WHEREAS, said Development Agreement has complied with the requirements of
"The Rules to Implement the California Environmental Quality Act of 1970" (CEQA) as
amended (Resolution 1983-68). The City prepared an Addendum to Environmental
36
Ordinance No. 626
Development Agreement (DA) 2025-0001
SilverRock Resort (2025 SilverRock Master Plan)
*Adopted: October 7, 2025
Page 2 of 6
Assessment 2002-453. The City Council has adopted Resolution 2025-022 approving
the Addendum; and
WHEREAS, California Government Code Section 65864 et seq. (the
"Development Agreement Law") authorizes cities to enter into binding development
agreements with persons having a legal or equitable interest in real property for the
development of such property, all for the purpose of strengthening the public planning
process, encouraging private participation and comprehensive planning, and identifying
the economic costs of such development; and
WHEREAS, the sale to the applicant of the Phase 1 Property, as described in the
Development Agreement, is contingent on the U.S. Bankruptcy Court for the District of
Delaware authorizing said sale, in connection with the following bankruptcy petitions:
SilverRock Development Company, LLC (5730), RGC PA 789, LLC (5996), SilverRock
Lifestyle Residences, LLC (0721), SilverRock Lodging, LLC (4493), SilverRock Luxury
Residences, LLC (6598) and SilverRock Phase I, LLC (2247) (collectively, referred to as
the "Bankruptcy Lawsuit" in the "Bankruptcy Court"). As such, the approval of the
Development Agreement is subject to the condition precedent that the Bankruptcy Court
authorize the sale of the Phase 1 Property to the applicant; and
WHEREAS, at the City Council's Public Hearing, upon hearing and considering
all testimony and arguments, if any, of all interested persons desiring to be heard, the
City Council did make the following mandatory findings pursuant to Section 9.250.020 of
the La Quinta Municipal Code to justify approval of said Development Agreement,
attached to this Ordinance as "Exhibit A," and incorporated herewith by this reference:
1. The Development Agreement is consistent with the applicable objectives,
policies, general land uses, and programs of the La Quinta General Plan as
follows:
GOAL LU-2
Policy LU-2.1
Policy LU-2.2
High quality design that complements and enhances the City.
Changes and variations from the Zoning Ordinance in a Specific
Plan will be offset by high quality design, amenities, and mix of
land uses.
Specific Plans shall be required for projects proposing the
integration of recreation, tourist commercial, and residential
uses; and for all projects proposing flexible development
standards that differ from the Zoning Ordinance.
The proposed project continues the SilverRock Specific Plan
development and includes elements of recreation, tourist
commercial, and residential uses to provide a high quality
project consistent with the General Plan and SilverRock Specific
Plan.
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Ordinance No. 626
Development Agreement (DA) 2025-0001
SilverRock Resort (2025 SilverRock Master Plan)
*Adopted: October 7, 2025
Page 3 of 6
GOAL LU-6 A balanced and varied economic base which provides a broad
range of goods and services to the City's residents and the
region.
Policy LU-6.3 Support and encourage the expansion of the resort industry as
a key component of the City's economic base.
The proposed project continues the development of the
SilverRock Specific Plan area as a resort development to
support the City's economic base.
2. The Development Agreement is compatible with the uses authorized and the
regulations prescribed for the SilverRock Specific Plan (SP2006-080) in which
the real property is located. The Specific Plan provides for the development of
resort, resort residential, and residential uses around the existing golf course.
The Specific Plan requires the implementation of high quality development and
design standards, and the continued expansion of the City's luxury resort
economic sector. The Development Agreement helps implement the Specific
Plan.
3. The Development Agreement is in conformity with the public necessity, public
convenience, general welfare, and good land use practices. The land uses
proposed are consistent with the country club developments that already occur in
the area, and will provide for the continued use of the golf course for the
residents and visitors of La Quinta. The project will generate revenues to the
City, and as a self-contained community, will not directly impact surrounding land
uses. The development of the resort and residential uses within the golf course
area provides a buffer from surrounding land uses and assures that development
intensities will not be exceeded.
4. The Development Agreement will not be detrimental to the health, safety, and
general welfare. The development of resort and residential uses within the golf
course area assures that the community will be self-contained and will implement
infrastructure extensions that are independent of those of surrounding
development. The Development Agreement also includes and requires mitigation
measures to protect the environment and public health, both within and
surrounding the project area.
5. The Development Agreement will not adversely affect the orderly development of
property or the preservation of property values because the development
planned in the Specific Plan area is consistent with the long-term plans for this
property and expands residential and resort opportunities in the City.
6. The Development Agreement will have a positive fiscal impact on the City in that
implementation of the Development Agreement will produce revenues, including
property tax, sales tax, and transient occupancy tax for the long-term fiscal
benefit of the City.
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Ordinance No. 626
Development Agreement (DA) 2025-0001
SilverRock Resort (2025 SilverRock Master Plan)
*Adopted: October 7, 2025
Page 4 of 6
WHEREAS, the City Council has separately adopted Resolution 2025-023,
conditionally approving the Economic Development Subsidy Report, Transient
Occupancy Tax (TOT) Revenue Sharing Agreement, and the Option to Purchase Real
Property Agreement which includes a Repurchase Option for Phase 2 Option Property,
subject to the conditions that: (a) the Bankruptcy Court authorizes the sale of
the Phase 1 Property to the applicant, and (b) the City Council adopts this Ordinance
and the Ordinance becomes effective. The Economic Development Subsidy Report is
applicable to this Development Agreement to the extent the economic subsidies and
financial incentives, the explanations and supporting evidence for the subsidies and
incentives therein, and the findings therein, are to be implemented with the approval of
the Development Agreement.
NOW, THEREFORE, the City Council of the City of La Quinta does ordain as
follows:
SECTION 1. FINDINGS FOR APPROVAL. The above recitations are true and
constitute the Findings of the City Council.
SECTION 2. CONDITIONAL APPROVAL. The City Council hereby approves and
incorporates herein by this reference Development Agreement 2025-0001 (Reinstated
and Amended Development Agreement 2014-1001), "Exhibit A" attached hereto, by the
adoption of this Ordinance, with said approval subject to the condition preceder that
the Bankruptcy Court authorizes the sale of the Phase 1 Property to the applicant. If the
Bankruptcy Court does not authorize the sale of the Phase 1 Property to the applicant,
this Ordinance shall automatically be rescinded, without the requirement for further
action by the City Council, and the conditional approval set forth herein shall be of no
force and effect.
SECTION 3. SIGNING AUTHORITY. Subject to the Bankruptcy Court authorizing the
sale of the Phase 1 Property to the applicant, the City Council authorizes the City
Manager to execute Development Agreement 2025-0001 (Reinstated and Amended
Development Agreement 2014-1001) in substantially the form presented to the City
Council with the adoption of this Ordinance.
SECTION 4. EFFECTIVE DATE: This Ordinance shall be in full force and effect thirty
(30) days after its adoption.
SECTION 5. POSTING: The City Clerk shall, within 15 days after passage of this
Ordinance, cause it to be posted in at least three public places designated by resolution
of the City Council (Resolution No. 2022-027), shall certify to the adoption and posting
of this Ordinance, and shall cause this Ordinance and its certification, together with
proof of posting to be entered into the permanent record of Ordinances of the City of La
Quinta.
SECTION 6. CORRECTIVE AMENDMENTS: The City Council does hereby grant the
City Clerk the ability (a) to make any corrections that may be required by a title officer or
escrow officer in connection with the legal descriptions for the real property described in
39
Ordinance No. 626
Development Agreement (DA) 2025-0001
SilverRock Resort (2025 SilverRock Master Plan)
"Adopted: October 7, 2025
Page 5 of 6
"Exhibit A", and (b) to make minor amendments and corrections of typographical or
clerical errors to "Exhibit A" to ensure consistency of all approved text amendments
prior to the publication in the La Quinta Municipal Code.
SECTION 7. SEVERABILITY: If any section, subsection, subdivision, sentence, clause,
phrase, or portion of this Ordinance is, for any reason, held to be invalid or
unconstitutional by the decision of any court of competent jurisdiction, such decision
shall not affect the validity of the remaining portions of this Ordinance. The City Council
hereby declares that it would have adopted this Ordinance and each and every section,
subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the
fact that any one or more section, subsections, subdivisions, sentences, clauses,
phrases, or portions thereof be declared unconstitutional.
PASSED, APPROVED and ADOPTED, at a regular meeting of the La Quinta
City Council held , 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
LINDA EVANS, Mayor
City of La Quinta, California
ATTEST:
MONIKA RADEVA, City Clerk
City of La Quinta, California
APPROVED AS TO FORM:
WILLIAM H. IHRKE, City Attorney
City of La Quinta, California
40
Ordinance No. 626
Development Agreement (DA) 2025-0001
SilverRock Resort (2025 SilverRock Master Plan)
*Adopted: October 7, 2025
Page 6 of 6
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF LA QUINTA )
I, MONIKA RADEVA, City Clerk of the City of La Quinta, California, do hereby certify the
foregoing to be a full, true, and correct copy of Ordinance No. 626 which was introduced
at a special meeting on the 22nd day of September, 2025, and was adopted at a regular
meeting held on the 7th day of October, 2025, not being less than 5 days after the date
of introduction thereof.
I further certify that the foregoing Ordinance was posted in three places within the City
of La Quinta as specified in the Rules of Procedure adopted by City Council Resolution
No. 2022-027.
MONIKA RADEVA, City Clerk
City of La Quinta, California
DECLARATION OF POSTING
I, MONIKA RADEVA, City Clerk of the City of La Quinta, California, do hereby certify
that the foregoing ordinance was posted on the day of , 2025, pursuant to
Council Resolution 2022-027.
MONIKA RADEVA, City Clerk
City of La Quinta, California
41
ORDINANCE NO. 626
DEVELOPMENT AGREEMENT 2025-0001
SILVERROCK RESORT (2025 SILVERROCK MASTER PLAN)
ADOPTED: OCTOBER 7, 2025
RECORDING REQUESTED BY AND
WHEN RECORDED MAIL TO
City of La Quinta
78-495 Calle Tampico
La Quinta, CA 92253
Attn: City Clerk
EXHIBIT A
Space Above This Line for Recorder's Use
(Exempt from Recording Fee per Gov't Code §6103 and
§27383)
REINSTATED AND AMENDED DEVELOPMENT AGREEMENT BY AND BETWEEN
THE
CITY OF LA QUINTA
AND
TBE RE ACQUISITION CO II LLC
AN AFFILIATE OF
TURNBRIDGE EQUITIES
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TABLE OF CONTENTS
Page
1 GENERAL 7
1.1 Definitions 7
1.2 Term 23
1.3 Development Agreement Effective Date 24
1.4 Termination of this Agreement 24
1.5 Statement of Benefits and Consideration 25
1.6 City CEQA Findings 25
1.7 Consistency with SilverRock Specific Plan Authority for Location
and Alignment of Planning Areas 26
2. AGREEMENTS AND ASSURANCES 26
2.1 Agreement and Assurance on the Part of Developer 26
2.2 Agreement and Assurances on the Part of City 29
3. DEVELOPMENT OF THE PROJECT 31
3.1 Generally 31
3.2 Construction Provisions 34
3.3 Costs of Construction 39
3.4 Completion of Construction 41
3.5 Planned Development and CC&Rs 43
3.6 Dedications and Improvements 44
3.7 Posting Payment and Performance Bonds 45
3.8 Regular Updates to City on Development of the Project 45
3.9 Indemnification 46
3.10 Insurance 49
4. FINANCING THE PROJECT 51
4.1 Developer To Pay All Costs and Expenses for the Project 51
4.2 Submittal of Final Project Budget 51
4.3 City Approval for Financing and Investment in the Project
Components 52
4.4 City Financial Assistance 57
5. AUTHORIZED USES AND OPERATIONS ON THE PROPERTY 58
5.1 General Obligation for Developer and Successors and Assigns 58
5.2 Short -Term Vacation Rentals/Transient Occupancy Taxes 60
5.3 Maintenance Covenants 64
5.4 Obligation to Refrain from Discrimination 64
6. POTENTIAL CONDITIONAL TRANSFERS OF CITY -OWNED PROPERTIES 65
6.1 City -Owned Golf Course Property and Ahmanson Ranch Property 66
6.2 City -Owned Option Property 70
7 CITY'S OBLIGATIONS 71
7.1 Scope of Subsequent Review/Confirmation of Compliance Process 71
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Page
7.2 Project Approvals Independent 71
7.3 Review for Compliance 71
8. DEFAULT; REMEDIES; DISPUTE RESOLUTION; TERMINATION 72
8.1 Default and Cure 72
8.2 Termination of Agreement 74
8.3 City Remedies 74
8.4 Developer Remedies 75
8.5 Legal Actions and Litigation 76
9. MORTGAGEE PROTECTION; CERTAIN RIGHTS OF CURE 78
9.1 Liens Recorded Against the Property and Project 78
9.2 Mortgagee Protection 78
9.3 Mortgagee Obligations and Relief Therefrom 79
10. TRANSFERS OF INTEREST IN PROPERTY, PROJECT, OR AGREEMENT 79
10.1 Developer Unique and Material Term to this Agreement 79
10.2 Transfers Generally Prohibited Without Prior City Approval 79
10.3 Successors and Assigns 82
10.4 Developer Entities Documentation and Permitted Affiliate
Assignees 82
10.5 Assignment by City 83
11. MISCELLANEOUS 83
11.1 Notices, Demands and Communications Between the Parties 83
11.2 Force Majeure 85
11.3 Binding Effect 85
11.4 Independent Entity 85
11.5 Agreement Not to Benefit Third Parties 85
11.6 Covenants 86
11.7 Non -liability of City Officers and Employees 86
11.8 Amendments or Modifications of Agreement 86
11.9 Amendment or Cancellation by Mutual Consent 87
11.10 No Waiver 87
11.11 Severability 87
11.12 Cooperation in Carrying Out Agreement 88
11.13 Estoppel Certificate 88
11.14 Construction 88
11.15 Recordation 88
11.16 Captions and References 88
11.17 Time 89
11.18 Computation of Days 89
11.19 Recitals & Exhibits Incorporated; Entire Agreement 89
11.20 Exhibits 89
11.21 Authority to Execute; Representations and Warranties 90
11.22 City Approvals and Actions by City Manager 90
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Page
11.23 No Brokers 91
11.24 Counterpart Signature Pages 91
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