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La Quinta Goes To Court Over Ill-Fated Talus Development; Seeks Damages & Resolution To Ongoing Delays

July 26, 2024 10:26AM PDT
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La Quinta Goes To Court Over Ill-Fated Talus Development; Seeks Damages & Resolution To Ongoing Delays
Courtroom desk, w gavel on the desk. Photo from Alpha Media Portland OR

Editors Note: Here is the latest regarding the City of La Quinta and its ongoing business relationships regarding the proposed development known as Talus Resort.

The City of La Quinta has submitted for filing a lawsuit against SilverRock Development Company, The Robert Green Company, and other named defendants, relating to  actions taken by the developer that violate a Purchase, Sales and Development Agreement  (PSDA) and a Memorandum of Understanding (MOU) with the City for the development of the Talus Resort.

The City’s lawsuit is in response to the following actions taken by The Robert Green Company  and SilverRock Development Company LLC (collectively, ‘the developer’):

  • Unknown to the City of La Quinta, and without notice, starting on July 1, 2024, and through at least July 5, 2024, the developer executed multiple promissory notes purported to be secured by the real property owned by the developer, without the City’s approval.
  • The developer also recorded encumbrances known as “mechanics liens” against the  developer’s own property, when mechanics liens operate to protect payment of contracted construction workers and design professionals.
  • The City states in the lawsuit that these actions taken by the developer, on and after July 1, 2024, intentionally and fraudulently, are trying to frustrate and thwart the

Memorandum of Understanding (MOU) entered into on May 24, 2024, developer’s other  contractual obligations with the City, and have encumbered all or portions of the

developer-held properties with unenforceable mechanics liens and unauthorized deeds  of trust without the City’s approval.

  • The developer did not close financing by June 30, 2024, and on July 1, 2024, the City issued to the developer a notice of default under the operative amendment, and pursuant to the MOU dated May 28th 2024,  another party to the MOU (CMG…Chris M. George) issued its notice that it would  proceed with its rights to pay off the existing secured creditors and mechanics liens and assume the project, agreements, and property to resume and complete construction.

The lawsuit alleges that by filing mechanics liens and unauthorized deeds of trust without the   City’s approval, the developer breached contractual obligations as detailed in the Purchase,  Sales and Development Agreement (PSDA) between the developer and the City, with an intent to hinder the project’s progress.

The City’s lawsuit in Riverside County Superior Court seeks to compel the developer to remove unauthorized encumbrances from the property and to uphold its contractual obligations. Among the remedies sought by the City, are:

  1. The developer to remove the unauthorized encumbrances and prevent any further unauthorized encumbrances.
  2. An order for the developer to honor its contractual obligations under the MOU.
  3. An award of damages to compensate the City.

The Talus Resort Project is a cornerstone of the City’s land use plan and is expected to create jobs, generate revenue, and enhance the quality of life for residents and visitors alike. The City  is committed to protecting this important investment and ensuring the project moves forward.

 

Editor’s Note:   Neither elected officials in La Quinta nor City Staff are available for interviews.

 

 

Courtroom desk, w gavel on the desk.

Photo from Alpha Media Portland OR

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