La Quinta City leaders agree to loan Talus developers up to $11 million in bankruptcy court

La Quinta City leaders agreed to loan the developers of the long-delayed Talus luxury resort development up to $11 million at a special city council meeting on Wednesday. 

That loan agreement was announced after a closed session where council members all voted in favor of what's considered a prime loan under federal bankruptcy law.

The deal will have to be approved by the bankruptcy court as part of a term sheet agreement to obtain Debtor In Possession, or DIP, Financing and includes $3 million already committed to interim DIP Financing by the City to clean up the Talus site and remediate the project area.

City Attorney Bill Ihrke said, "The lender will be the City of La Quinta. The loan amount not to exceed $11 million which includes all principal and the amounts that have already been forwarded to secure debtor in possession financing."

140 acres of the Talus Development property's 525 acres have already been conveyed to the Silverrock Development Company. 

Ihrke said the city's loan would be paid back with interest at a rate set by the state. That rate is currently 4.7%. It is expected to be paid back by Dec. 31, 2025.

It would also give the City of La Quinta a "super priority" interest in all real and secured properties of Silverrock Developers and affiliates. 

UNDERSTAND THE COSTS AND OTHER IMPACTS OF TALUS LA QUINTA WITH THE TALUS TIMELINE

Developer Robert Green no longer controls Silverrock Development Company.

A Retired Judge Christopher Sontchi has been approved by all the involved parties, according to Irhke, and is now acting as a fiduciary for the Silverrock Development Company.

The Talus luxury resort development is sitting idle, half-built for two years now, off Avenue 52 near Jefferson Street wrapped around the city's Silverrock Golf Course.

The resort was initially supposed to open in 2019 but has been mired by years of financing delays.

You can read more of our extensive coverage on Talus at KESQ.com and review our Talus Timeline, which explains and details the ups and downs of the 20-plus-year project.