In 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.

City Attorney Bill Ihrke and City Manager Jon McMillen provided an update on the bankruptcy case filed by Talus La Quinta developer SilverRock Development Company and affiliates (collectively, SDC).

During a court hearing Tuesday morning, the judge for the case approved a second interim order authorizing another interim debtor in possession (DIP) financing, Ihrke said.

As Ihrke reported to the Council on October 1, DIP financing is the first step in the City-led negotiations to use the funds that would be provided to the chief restructuring officer (CRO) to secure and clean up the Talus site during the bankruptcy process.

The CRO is an independent supervisor not associated with any of the parties in the case, including SDC, who administers and oversees SDC’s estate and proposed bankruptcy reorganization.

On September 27, the judge authorized an initial payment by the City of up to $250,000 of a proposed $2 million that the City would commit, pending a final order from the judge, Ihrke said.

The City’s debt financing is in the form of a loan at 4.55% interest, which is the current Local Agency Investment Fund (LAIF) rate as set by the state. The funds will be paid back to the City by March 15, 2025, or “perhaps earlier or a little later, depending on the status and approval by the bankruptcy court and reorganization plan,” Ihrke said.

The City’s funds must be used for specific items relating to the Talus site, such as remedial construction work, cleanup and dust and erosion control. The second interim order issued Tuesday had been sought and approved by the court to allow additional time for all parties in the case to revise the overall budget that would be in place until the final reorganization plan is presented by SDC.

On October 11, the City used $95,000 of DIP funds to pay contractors providing fencing at the Talus site and to get the utilities, insurance companies and storage companies paid, McMillen said.

McMillen said he, representatives from RD Olson Construction, the original contractor on the commercial components of Talus interested in staying with the project, and the CRO have been working together to identify what is needed to secure the site and get it ready for construction when it can resume.

A final hearing on the DIP financing is scheduled for October 31 when the judge will likely hear several other motions as well.

SDC filed for Chapter 11 protection on August 5 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 scheduled for August 6 and any plans to move forward with a new developer for the project, formerly known as the SilverRock Resort.

McMillen and Ihrke will continue to provide regular updates at Council meetings to keep everyone informed.

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.

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