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2025 10 21 CC MinutesCITY COUNCIL MINUTES TUESDAY, OCTOBER 21, 2025 CALL TO ORDER A regular meeting of the La Quinta City Council was called to order at 3:00 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 Mayor Pro Tem McGarrey said she will recuse herself and abstain from participating in the discussion and vote on Consent Calendar Item No. 6, related to the approval of demand registers for Sothern California Gas Company (So Cal Gas), due to a potential conflict of interest stemming from a business relationship, i.e., her employer, So Cal Gas, is listed on the demand register, and requested that the item be pulled for a separate vote. Council concurred. CLOSED SESSION 1. CONFERENCE WITH LEGAL COUNSEL — EXISTING LITIGATION; PURSUANT TO PARAGRAPH (1) OF SUBDIVISION (d) OF GOVERNMENT CODE SECTION 54956.9; CASES NAMES AND NUMBERS — MULTIPLE (listed below, all in U.S. Bankruptcy Court, District of Delaware) CASE NAME: CASE NUMBER SilverRock Development Company, LLC 24-11647 SilverRock Lifestyle Residences, LLC 24-11648 SilverRock Lodging, LLC 24-11650 SilverRock Luxury Residences, LLC 24-11652 SilverRock Phase I, LLC 24-11654 RGC PA 789, LLC 24-11657 2. CONFERENCE WITH LEGAL COUNSEL — EXISTING LITIGATION; PURSUANT TO PARAGRAPH (1) OF SUBDIVISION (d) OF GOVERNMENT CODE SECTION 54956.9; NAME OF CASE: CITY OF LA QUINTA V. SILVERROCK DEVELOPMENT COMPANY, ET AL. (RIVERSIDE COUNTY SUP. CT. CASE NO. CVPS2404750) CITY COUNCIL MINUTES Page 1 of 8 OCTOBER 21, 2025 COUNCIL RECESSED THE OPEN SESSION PORTION OF THE MEETING AND MOVED INTO CLOSED SESSION AT 3:02 P.M. MAYOR EVANS RECONVENED THE OPEN SESSION PORTION OF THE CITY COUNCIL MEETING AT 4:01 P.M. WITH ALL MEMBERS PRESENT REPORT ON ACTION(S) TAKEN IN CLOSED SESSION: City Attorney Ihrke reported the following pursuant to Government Code section 54957.1 (Brown Act): • CLOSED SESSION ITEM NO. 1 — no reportable action; Council's authorization remains in place for the City Attorney, in coordination with the City Attorney's Office and Special Counsel, to defend and protect the interests of the City in the multiple bankruptcy cases filed by SilverRock Development Company and its responsive affiliates as reported out for Closed Session Item No. 2 from the August 6, 2024, Council meeting. Mr. Ihrke noted that a summary of the bankruptcy proceedings status for SilverRock Development Company and its affiliates will be provided under the Announcements, Presentations, and Written Communications section of the agenda, as Presentation Item No. 1. • CLOSED SESSION ITEM NO. 2 — no reportable action. PLEDGE OF ALLEGIANCE Councilmember Sanchez led the audience in the Pledge of Allegiance. PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA PUBLIC SPEAKER: Mary Mann, La Quinta — said she is a geologist by profession and consults in geothermal energy; enjoys outdoor activities; has researched at length the Club at Coral Mountain development, located south of Avenue 58, north of Avenue 60, and east and west of Madison Street; the tentative tract map for this development will be considered by the Planning Commission on October 28, 2025; opposed the location of the bighorn sheep fence to be installed, as part of this development, pursuant to Amendment No. 5 to Specific Plan 2003-067; believes the fence cuts off public access to the open land that should be preserved, and may adversely affect the area's archaeological features, petroglyphs, grindstones, and natural habitat species; noted that a public trail, identified in entitlement, was not reflected in the plans; and asked that the proposed location of the fence be reconsidered, and additional mitigation measures be required of the developer to preserver and maintain the recreation aspect of the area. Mayor Evans explained the Club at Coral Mountain development, following a lengthy review process, was approved in 2024, and only certain components of the project, such CITY COUNCIL MINUTES Page 2 of 8 OCTOBER 21, 2025 as tentative tract maps, site development permits, etc., were now being considered; however, as the project was being developed on privately owned land, it was not within the City's purview nor authority to mandate public access through private land. Further discussion followed regarding the multiple governmental entities responsible for establishing the bighorn sheep fence requirements, approvals, and related fiscal responsibilities. WRITTEN PUBLIC COMMENTS were received from La Quinta resident Mary Mann opposing the location of the bighorn sheep fence being installed at the Club at Coral Mountain development, pursuant to Amendment No. 5 to Specific Plan 2003-067; believes the fence cuts off public access to the open land; and encourages La Quinta to engage in active discussions with developers and other governmental entities regarding preserving public access and increasing recreational opportunities at Coral Mountain and Santa Rosa Wilderness; which were distributed to Council, made public, published on the City's website, and included in the public record of this meeting. ANNOUNCEMENTS, PRESENTATIONS AND WRITTEN COMMUNICATIONS 1. SILVERROCK (FORMERLY TALUS) DEVELOPMENT PROJECT — STATUS UPDATE City Attorney Ihrke said on August 5, 2024, SilverRock Development Company LLC and its affiliates (debtors), collectively referred to as "SDC," voluntarily petitioned for Chapter 11 bankruptcy in U.S. Bankruptcy Court in Delaware; and per Council's direction and approval, the City retained Special Counsel who has continuously been working with the City Manager and City Attorney throughout these proceedings. Prior Announcements regarding the bankruptcy case are available on the City's website at www.Iaquintaca.gov/talus. Mr. Ihrke said, as previously announced, there were 2 motions that had been filed in the Bankruptcy Court: 1) The debtors filed a motion requesting the Court approve the sale of the debtors' assets, which is almost entirely comprised of the approximately 130+/- acres of raw and partially improved land, where the former Talus project was located (the "Debtors Sale Motion"). 2) The debtors also filed a motion requesting the Bankruptcy Court amend the Debtor -In -Possession (or "DIP") Credit Agreement previously approved by the Council and loaned to the debtors (the "DIP Amendment Motion"). These 2 motions were previously summarized in prior announcements related to this case, as well as during the September 22, 2025, public hearing held by the Council to consider the proposed new 2025 SilverRock project to replace the defunct former Talus project. CITY COUNCIL MINUTES Page 3 of 8 OCTOBER 21, 2025 The City Manager, Special Counsel, and City Attorney had been constantly working with the debtors and Chief Restructuring Officer (CRO), and their legal counsel, as the bankruptcy process moved forward pursuant to Court -approved "Bid Procedures," which in general provided a process for the marketing and eventual sale and selection of a new owner and developer for the debtors' assets. Mr. Ihrke noted, as had been previously announced, a live auction was held as part of the Bid Procedures in early August 2025; and the hearing for the 2 motions had been rescheduled several times. The hearing actually commenced on Tuesday, October 14, 2025, and concluded earlier today, October 21, 2025, after 3 days of witness testimony and arguments from various parties in the bankruptcy case. The Debtors' Sale Motion proposed to sell the debtors' assets to TBE RE ACQUISITION CO II LLC, an affiliate of Turnbridge Equities, who was approved by the Bankruptcy Court as the "stalking horse bidder," and was found to be the most qualified bidder after the live auction had concluded. Last week, the Bankruptcy Court ordered the debtors and one creditor party to provide supplemental briefing on a specific issue; and today, October 21, 2025, the Bankruptcy Court granted the debtors' motion in its entirety, and read its lengthy ruling from the bench, clearly indicating the court had spent significant time reviewing the supplemental briefing and evidence to come to its final ruling ("Ruling"). Mr. Ihrke said the Ruling may be summarized as follows: (A) The Sale Process was fair and was conducted in a manner to try and obtain the most qualified bidders and highest sale price for the debtors' assets in compliance with federal bankruptcy laws and the Bankruptcy Court's orders. (B) The City "went out of its way to ensure an open process" to allow for potential qualified bidders, as well as to work with them to have project approvals in place by the time a sale would occur, which the Court found added value and certainty to the debtors' sale assets, and allowed for adjacent City -owned "option property" to be part of a proposed project. (C) A creditor's proposed substitute plan would not be accepted because (1) it did not comply with the Bid Procedures, (2) was untimely, (3) lacked firm financial commitments, and (4) did not have approval from the City. The result is that Turnbridge Equities may proceed with purchasing the debtors' assets, free and clear of prior monetary liens, as permitted and in accordance with federal bankruptcy law. Mr. Ihrke said, today, October 21, 2025, the Bankruptcy Court also granted the DIP Amendment Motion. CITY COUNCIL MINUTES Page 4 of 8 OCTOBER 21, 2025 As previously announced, the proposed DIP Amendment was consistent with the direction authorized by the Council from its August 5 and 11, 2025, meetings, with that direction provided to the City Manager, Special Counsel, and City Attorney, which was passed on to debtors' counsel. The terms and conditions of the proposed DIP Amendment were approved by Council as part of the Economic Development Subsidy Report, at the public hearing held during September 22, 2025, special meeting, which was also consistent with the Council's direction from the August 5 and 11, 2025, meetings. As noted in the staff report and the Economic Development Subsidy Report, the debtors' motion to amend the DIP Financing was on file in the Bankruptcy Court at the time the Council considered the Economic Development Subsidy Report, and may generally be summarized based on the summary in the Debtor's Sale Motion and DIP Amendment Motion, which is that the City will provide additional consideration, on top of its original $11 million loan, comprised of primarily: (1) Subordination of $2.25 million of the original DIP Financing loan to valid secured claims on the debtors' assets; (2) Providing $1 million in additional "non -priming" secured financing to the debtors; and (3) The City, in its sole and absolute discretion, may provide another $1 million to the debtors. The additional City consideration would be provided so as to further the wind -down of the debtors' estate following the closing of the sale of the formerly Talus project property to Turnbridge. Mr. Ihrke said, and as had been the process from early on in this bankruptcy case and as required by the Bid Procedures ordered by the Bankruptcy Court, the debtors and the City worked together and it was a "team effort" to reach a result today that both the City and debtors view as very favorable. The next step in the process will involve working with debtors and Turnbridge as part of the escrow process to effectuate the purchase and sale of the project site. 2. SHAY'S WARRIORS LIFE AFTER CANCER ORGANIZATION AND COMMUNITY GRANT RECIPIENT — PRESENTATION BY FOUNDER SHAY MORAGA PRESENTER: Founder Moraga of Shay's Warriors Life After Cancer Organization provided a detailed overview of the organization's mission, purpose, vision, programs and activities, and profound impacts and support system it provides to its members. MAYOR PRO TEM McGARREYASKED TO BE EXCUSED AND LEFT THE DAIS AT 4:42 P.M. FOR THE REMAINDER OF THE MEETING CITY COUNCIL MINUTES Page 5 of 8 OCTOBER 21, 2025 3. HIDDEN HARVEST — PRESENTATION BY EXECUTIVE DIRECTOR FRANCISCO LINARES PRESENTER: Executive Director Linares of Hidden Harvest provided a detailed overview of the organization's mission, objectives, services, activities, and impacts in the Coachella Valley, and specifically in La Quinta; and encouraged Council and the community to attend the upcoming Hidden Harvest November Luncheon fundraising event, on November 20, 2025, at the Agua Caliente Resort & Spa in Rancho Mirage, CA, focused on "Sharing With A Purpose." 4. FRIENDS OF THE CHILDREN — COACHELLA VALLEY — PRESENTATION BY EXECUTIVE DIRECTOR KARRIE SCHAAF AND BOARD CHAIR RANDY FLORENCE PRESENTERS: Executive Director Schaaf of Friends of the Children — Coachella Valley and Board Chair Florence provided a detailed overview of the organization's mission, purpose, program and services, activities, commitment requirements, partnerships with other organizations and schools, staff commitment, board, and donors. CONSENT CALENDAR 1. APPROVE COUNCIL SPECIAL MEETING MINUTES DATED SEPTEMBER 22, 2025 2. ADOPT RESOLUTION APPROVING SITE DEVELOPMENT PERMIT 2025-0005 GRANTING A TWO-YEAR TIME EXTENSION TO A 252-UNIT APARTMENT PROJECT, LA QUINTA VILLAGE APARTMENTS, APPROVED UNDER SITE DEVELOPMENT PERMIT 2022-0001; LOCATION: NORTHEAST CORNER OF WASHINGTON STREET AND AVENUE 50 [RESOLUTION NO. 2025-025] 3. AUTHORIZE OVERNIGHT TRAVEL FOR MARKETING MANAGER TO ATTEND 2026 VISIT CALIFORNIA OUTLOOK FORUM IN CHULA VISTA, CALIFORNIA, MARCH 9-12, 2026 4. AUTHORIZE OVERNIGHT TRAVEL FOR THE HUMAN RESOURCES DEPUTY DIRECTOR AND THE HUMAN RESOURCES MANAGEMENT SPECIALIST TO ATTEND THE CALIFORNIA JOINT POWERS INSURANCE AUTHORITY ERGONOMICS ASSESSMENT CERTIFICATION WORKSHOP IN LA PALMA, CALIFORNIA, NOVEMBER 3-5, 2025 5. APPROVE DEMAND REGISTERS DATED SEPTEMBER 25 AND OCTOBER 3, 10, 2025 CITY COUNCIL MINUTES Page 6 of 8 OCTOBER 21, 2025 6. T>PITIedfour-a-s orate vote bpi AAa er Oro Tom McGarre y APPROVE DEMAND REGISTERS FOR SOUTHERN CALIFORNIA GAS COMPANY DATED AUGUST 8, SEPTEMBER 5, AND OCTOBER 3, 2025 MAYOR PRO TEM McGARREY HAD RECUSED HERSELF, DURING CONFIRMATION OF AGENDA, IN ORDER TO ABSTAIN FROM THE DISCUSSION AND VOTE ON CONSENT CALENDAR ITEM NO. 6 DUE TO A POTENTIAL CONFLICT OF INTEREST STEMMING FROM A BUSINESS RELATIONSHIP WITH HER EMPLOYER SOUTHERN CALIFORNIA GAS COMPANY, WHICH IS A PAYEE ON THE DEMAND REGISTER, AND HAD REQUESTED TO PULL THIS ITEM FOR A SEPARATE VOTE SINCE MAYOR PRO TEM McGARREY WAS ABSENT AT THE TIME THE CONSENT CALENDAR WAS CONSIDERED, THE ITEM WAS NOT PULLED FOR A SEPARATE VOTE MOTION — A motion was made and seconded by Councilmembers Pena/Fitzpatrick to approve the Consent Calendar as presented. Motion passed: ayes — 4, noes — 0, abstain — 0, absent — (McGarrey). BUSINESS SESSION — None STUDY SESSION — None PUBLIC HEARINGS — None DEPARTMENTAL REPORTS — None MAYOR'S AND COUNCIL MEMBERS' ITEMS Mayor Evans and Councilmember Fitzpatrick reported on their attendance at the inaugural meeting of the La Quinta Youth Collective held on October 8, 2025. Council reported on their various attendance at the Cove Neighborhood Association meeting, City of Indio's State of the City, Big Brothers Big Sisters of the Desert "Walk to Support Kids — Fun Walk & Wellness Festival" welcome in Old Town La Quinta, La Quinta's inaugural Fall Festival, La Quinta High School naming of the football stadium scoreboard after their former coach Dan Armstrong, League of California Cities Annual Conference, recognition of Dorothy Terwilliger at her 100-year-old birthday party, Senior Resource Fair at the Wellness Center, the La Quinta High School Homecoming Parade, Martha's Village and Kitchen Child Development Expansion in Indio ribbon cutting, Leadership Coachella Valley mixer, Coachella Valley Battle of the Badges Law Enforcement Boxing Event, and Shay's Warriors breast cancer awareness fundraiser "Bossoms & Brews Fest" held in Palm Desert. CITY COUNCIL MINUTES Page 7 of 8 OCTOBER 21, 2025 Councilmember Sanchez reported on hosting a meeting with veterans in the Coachella Valley at City Hall on October 14, 2025. REPORTS AND INFORMATIONAL ITEMS La Quinta's representative for 2025, Councilmember Fitzpatrick reported on her participation in the following organization's meeting: • GREATER CV CHAMBER OF COMMERCE INFORMATION EXCHANGE COMMITTEE La Quinta's representative for 2025, Councilmember Pena reported on his participation in the following organization's meeting: • COACHELLA VALLEY VECTOR AND MOSQUITO CONTROL DISTRICT ADJOURNMENT There being no further business, a motion was made and seconded by Councilmembers Pena/Fitzpatrick to adjourn at 5:17 p.m. Motion passed: ayes — 4, noes — 0, abstain — 0, absent — (McGarrey). Respectfully submitted, (i MONIKA RADEVA, City Clerk City of La Quinta, California CITY COUNCIL MINUTES Page 8 of 8 OCTOBER 21, 2025