La Quinta, CA
Home MenuIn 2002, La Quinta’s Redevelopment Agency (RDA) purchased 525 acres of land tucked against the Santa Rosa Mountains with a vision for a destination resort that would create hundreds of jobs while boosting tourism and generating tax revenues for the City’s general fund.
The vision was for a tournament-level golf course and park for residents to enjoy while providing a luxurious vacation experience for visitors while soaking in unmatched mountain views.
On Valentine’s Day 2005, the 18-hole Arnold Palmer-designed public golf course opened and for three years was a home course for the Bob Hope Classic.
SilverRock is also home to the City’s newest park and event venue sprawling 14 acres near the entrance.
Initially called SilverRock Resort, the project was delayed a few years by the Great Recession and the State’s disbanding of redevelopment agencies in 2012.
In 2014, the City entered into a purchase, sale and development agreement with the SilverRock Development Company (SDC) headed by Southern California developer Robert Green, who ultimately rebranded it under the name Talus La Quinta.
In 2017, Montage International announced that it had signed on as operator of the resort’s two luxury hotels by bringing the Montage and Pendry to the Coachella Valley for the first time.
Mass grading and infrastructure work were impacted in 2020 by the pandemic which drove up labor and materials costs and interest rates.
On August 5, 2024, after numerous delays that put the developer in breach of contract with the City, SDC filed a petition for Chapter 11 bankruptcy freezing all activity including plans for a new developer to take over the project.
The City Manager and City Attorney provide regular updates about the case at Council meetings and those updates will be posted on this website as well.
The City remains committed to its vision to bring a world-class resort to La Quinta and is working to ensure construction resumes with a new developer as soon as the court allows.
** From November 18, 2025: **
During the City Council meeting on Tuesday, November 18, 2025, City Attorney Bill Ihrke gave an update on the SilverRock/Talus bankruptcy case and an appeal heard earlier in the week.
On October 21, 2025, a bankruptcy judge granted a motion to approve the sale of land owned by the SilverRock Development Company and affiliates (collectively known as SDC, or debtors) to TBE RE Acquisition Co. II LLC (TBE), an affiliate of Turnbridge Equities, allowing the property to enter into escrow.
On November 7, one creditor, Construction Loan Services II LLC d/b/a Builders Capital (Builders), appealed the court’s sale order saying Builders has deeds of trust recorded over some of the former Montage luxury residential lots, comprising about 10 acres of the planned development by SDC. At the same time, Builders filed a Motion for Stay Order, attempting to freeze the bankruptcy case while the appeal is pending.
The Stay Motion, which was opposed by the debtors, the City and TBE, was heard by the court and denied “in its entirety” on Thursday, November 13.
In the ruling, the court found that the “public interest” strongly favored moving forward with the sale of the debtors’ property to TBE given the extensive time and investment already spent by the parties to the case,” Ihrke said.
Under federal bankruptcy procedures, Builders could appeal the court’s decision to deny the stay, Ihrke said. In the meantime, the escrow process for the sale of the land continues and Ihrke said he will keep the City Council informed of any changes.
SDC filed for Chapter 11 protection on August 5, 2024, after defaulting on the project formerly known as Talus La Quinta. The case was filed in a U.S. Bankruptcy Court in Delaware, where SDC was formed.
Hear Ihrke’s report on the Council meeting video at www.laquintaca.gov/pastmeetings.
The website, www.laquintaca.gov/taluslq, provides a timeline of the project from the beginning to now and previous updates by Ihrke and City Manager Jon McMillen.
- Talus / SilverRock Update 10.21.2025
- Talus / SilverRock Update 09.22.2025
- Talus / SilverRock Update 09.16.2025
- Talus / SilverRock Update 08.05.2025
- Talus / SilverRock Update 06.17.2025
- Talus / SilverRock Update 06.03.2025
- Talus / SilverRock Update 05.20.2025
- Talus / SilverRock Update 04.15.2025
- Talus Update 04.01.2025
- Talus Update 03.18.2025
- Talus Update 2.4.25
- Talus Update 1.21.25
- Talus Update 12.03.24
- Talus Update 11.19.24
- Talus Update 10.15.24
- Talus Update_10_01_2024
- TALUS Council Recap for 09172024
- TALUS Council Recap for 08062024
December 11, 2024
La Quinta City Council Unanimously Approves $11 Million DIP Financing to Secure SilverRock Bankruptcy
La Quinta, CA: The La Quinta City Council unanimously approved a proposed final Debtor in Possession (DIP) Financing term sheet and memorandum of understanding (collectively, Term Sheet) setting forth binding provisions for a “primed” loan from the City of up to $11 million. The Term Sheet was approved during a special closed session meeting Wednesday, December 11, 2024, for the bankruptcy case filed by Debtor SilverRock Development Company and its affiliates (collectively, SDC).
The Term Sheet is anticipated to be filed with the Bankruptcy Court later this week.
The $11 million includes the $3 million already committed to interim DIP Financing by the City for cleanup of the Talus site and remediation of the project area, including dust and erosion control, and remedial construction work. The funding also covers costs associated with the necessary professionals and independent fiduciaries overseeing the process for finding a new developer and financing to complete the project.
The Term Sheet covers the entire anticipated timeframe for the bankruptcy case, which includes finding a new developer, entering a reorganization plan, and negotiating any amendments or new agreements relating to the project.
Several public purposes are served by the City continuing to lead the DIP Financing and providing the funds as part of the bankruptcy proceeding, including:
· Protection of City-owned property and public amenities in and surrounding the Debtors property. About 140 acres of the 525-acre SilverRock land has been conveyed to SDC over the years. The land surrounding Talus is all City-owned with public access, and the development site needs to be secured for public safety.
· Remediates the public nuisances, abandoned and partially constructed structures that may exist or start to exist while the bankruptcy process moves forward.
· Protection of the City’s economic development interests, “which State law recognizes as a valid public purpose,” Ihrke said. SilverRock/Talus has from the start been looked at by the City as a high transient occupancy tax (TOT) and sales tax revenue producer.
· Protection of the City’s interest in selection of a new developer and review of financing to complete the project.
Retired Judge Christopher Sontchi was recently approved by the Bankruptcy Court to replace Robert Green and The Robert Green Companies as the controlling manager for the SilverRock Development Co. and its affiliates.
Retaining Sontchi, who is a former Chief Judge of the United States Bankruptcy Court for the District of Delaware, “was done to satisfy a legal issue raised by the U.S. Trustee’s Office,” Ihrke said. His position as the controlling manager means that Robert Green is no longer involved in making decisions during the bankruptcy proceeding.
The Term Sheet has DIP Financing that is known as a “priming” loan, which means that under federal bankruptcy law, the City has the most secured type of loan and “will have a super-priority security interest for the repayment of the loan,” Ihrke said. That includes a “super-priority” over all other liens on the real and personal property held by the Debtors, he said.
Interest earned on the principal is 4.71%, which is the current Local Agency Investment Fund (LAIF) rate as set by the State of California.
The funds will be paid back to the City upon specified events in the Term Sheet, such as the closing of a sale, assignment or transfer of all the borrowers’ assets, but the outside repayment date according to the Term Sheet is December 31, 2025.
A chief restructuring officer (CRO) – an independent supervisor not associated with the parties in the case – oversees the Debtor’s estate and eventually a reorganization plan for coming out of bankruptcy.
SDC filed for Chapter 11 voluntary protection on August 5, 2024, in U.S. Bankruptcy Court in Delaware, the state where SDC was formed. The petition for bankruptcy automatically froze the foreclosure sale of the Talus land that was scheduled for August 6, 2024, and any plans to move forward with a new developer for the project, formerly known as the SilverRock Resort.
Once fully executed by the City and SDC, the term sheet for the Final DIP Financing will be submitted to the Bankruptcy Court and will be considered at the next scheduled hearing on January 2, 2025.
To hear all of Ihrke’s report out from Wednesday’s Closed Session, view the meeting video at www.laquintaca.gov/pastmeetings.
Ihrke and City Manager Jon McMillen give regular updates on the bankruptcy proceedings during City Council meetings.
The City’s website, www.laquintaca.gov/taluslq, includes all recent updates, documents, and a timeline of the Talus/SilverRock resort project from the beginning to now.
- Memorandum of Understanding
- Purchase Sales and Development Agreement Amendment 5
- Notice of Default for SilverRock Development Company (SDC)
- Cease and Desist for SilverRock Development Company (SDC)
2002
The City’s Redevelopment Agency (RDA) purchased 525 acres of vacant land off of Avenue 52, adjacent to Tradition, for $42.6 million using tax-exempt bonds with a vision for a world-class luxury resort with two 18-hole golf courses, hotel, spa, retail and other amenities.
2005
The first of the two planned golf courses opened on Valentine’s Day 2005 with golf legend Arnold Palmer, whose company designed the course, the first to tee off. A second course is planned with resort development.
2007
The City entered into an agreement with Lowe Destination Development to develop the resort. SilverRock plans were tabled, however, when the Great Recession hit.
2012
California’s lawmakers voted to dismantle RDAs statewide, costing the City of La Quinta $41 million upfront out of its reserves and millions more per year in property tax revenues that officials counted on for citywide capital improvement projects. The City initially planned to use redevelopment funds to build SilverRock’s infrastructure and sell the pads for development. No longer fiscally able to contribute to the build-out, the city needed to find a developer that could finance the entire project in excess of $400 million.
2014
On November 4, the City Council approved a Property, Sale and Development Agreement (PSDA) Meriwether/Robert Green Co., which together formed SDC, to develop the resort. Unable to secure capital for its end of the project, Meriwether pulled out about a year later and the PSDA was amended to show that Green was now the lead developer.
2017
On March 2, luxury hotel company Montage International announced that it had signed on as operator of the two SilverRock Resort hotels, bringing its Montage and Pendry brands to the Coachella Valley for the first time.
On April 18, the City Council approved Amendment No. 3 to the PSDA that outlined a timeline for which ownership of all but 35 acres of the 525-acre SilverRock land would be deeded to SDC, including the existing 18-hole golf course and Ahmanson Ranch House. Land transfers would occur in stages as development milestones were achieved. To date, roughly 130 acres have been deeded to SDC, and the City continues to own about 400 acres.
On May 1, Montage hosted a groundbreaking ceremony marking the start of development, beginning with the realignment of the golf course to accommodate the Montage hotel.
2018
On October 31, SilverRock developer Robert Green announced that he had secured a $212 million construction loan from Mosaic Real Estate Investors providing the capital for the installation of master site infrastructure and the build-out of the Montage and Pendry hotels, the conference and shared services building, new golf clubhouse and first phase of branded residential units for the hotels.
On November 6, the City Council approved an amendment to the PSDA to reflect a new timeline for construction that would see the hotels built simultaneously and open in late 2020. Mass grading of the site and infrastructure work began soon after.
2020
In March, construction was halted as a result of the COVID-19 pandemic which drove up costs and interest rates and brought a shortage of workers.
2021
Following several delays and extensions granted to SDC to get the project underway, on April 7, the City issued SDC a letter of default, giving Green 30 days to complete a series of steps, including bringing to the City Council a financing commitment that would allow construction to begin.
On April 17, the City held a ribbon-cutting ceremony for the newly constructed 14-acre SilverRock Park and events center with an amphitheater, walking path, water fountain and stream, and 2,800-square-foot modular building that can be used for meetings and events, restrooms and more, including an art walk that will soon be completed.
On April 20, a study session was held and Green told the City Council that hospitality investments had stalled during the COVID-19 pandemic. The pandemic also brought a rise in the cost for construction materials and a reduction in labor availability. Green stated he now had the capital resources to move forward and he remained fully committed to the project.
On October 5, an amended agreement between the City and SDC was approved by the Council and included new completion dates for the hotels with the Montage scheduled to open by September 30, 2023, and the Pendry by July 31, 2024. The new golf clubhouse was slated to open by November 1, 2022.
On October 19, Green received unanimous Council approval for his plan to rebrand SilverRock, starting with a name change to Talus La Quinta.
2022
Green and his team made monthly reports to the Council that showed construction was underway with the framing of Montage hotel rooms and other buildings in progress, including the new golf clubhouse. In the fall, commercial construction stopped while the Montage-branded residential and guest rooms continued slowly.
2023
Green and his team returned in January and February with progress reports to the Council, then construction slowed down and was ultimately paused while Green worked to secure project financing at a lower interest rate. While Green wasn’t appearing before the Council regularly, he and the City Manager were in constant contact.
On October 17, Council members approved Amendment No. 5 of the PSDA, paving the way for recapitalization loans to close and construction of the hotels to resume. A new timeline set the completion dates for the two hotels at March 2025 for the Montage and December 2026 for the Pendry. The new golf clubhouse was to be completed in November 2024.
2024
On May 24, the City entered into a Memorandum of Understanding and Agreement (MOU) with SDC that spelled out the next steps should SDC fail to meet the June 30, 2024, deadline to close escrow on recapitalization loans and cure all defaults that would restart the development of Talus La Quinta.
On July 1, after missing the deadline to close on recapitalization loans, the City issued SDC a Notice of Default giving the company until July 30, 2024, to close on a recapitalization loan. CMG notified the City that it was exercising its right to proceed and pay off SDC’s debts on or before July 30, 2024.
In July, the City began legal action against SDC, The Robert Green Company and other named defendants relating to actions taken that violated the PSDA and the MOU.
On August 2, the City of La Quinta announced that SDC was in total breach of the PSDA for the Talus La Quinta, having missed the deadline to close on Recapitalization Loans, as outlined in Amendment No. 5 and reiterated in the MOU, and no longer had rights as “Developer.”
August 5: SDC and its affiliates petitioned for Chapter 11 protection in a U.S. Bankruptcy Court in Delaware, which automatically placed a hold on active lawsuits and the City’s plan to move forward with a new developer.
October 1: In an update presented during the City Council meeting, City Manager Jon McMillen said that he is in constant contact with Montage International’s president and COO, and that the company remains committed to the project.
TALUS Site Overview
Montage Hotel and Spa
- Luxury hotel of 134 keys across thirty-four guestroom buildings; project includes spa, fitness center, and aquatic center
Montage Residences
- Twenty-nine single-family luxury homes integrated into the infrastructure of the Montage Hotel and Spa
Overall Conference Center
- Includes the Shared Services, Conference Center, and Meeting Center buildings and operations for Talus
Golf Clubhouse
- Future golf clubhouse to serve athletes of Talus
Pendry Hotel
- Lifestyle hotel of 200 keys across ten guestroom buildings; project includes fitness center, pools, a lazy river, and a paintbox
Pendry Residences
- Approximately fifty-five lifestyle homes across eleven buildings integrated into the infrastructure of the Pendry Hotel; project includes a Pendry Clubhouse