I-Team: Foreclosure auction delayed for TALUS La Quinta’s resort land. Parcels set to be sold to satisfy loan obligations
Editor's Note: A previous version of this story incorrectly included the on-screen logo of Silver Rock Development Inc. It has no affiliation with the SilverRock Development Company, LLC, Robert Greene, or any associated companies.
Some of the partially developed land at the City of La Quinta's TALUS luxury resort development was set to be sold at auction on Thursday.
But an I-Team investigation reveals a foreclosure auction has now been reset to the end of the month.
News Channel 3's Jeff Stahl has continuing coverage on the long-overdue development that's now being forced to sell off land it used to secure construction-related loans from lenders.
The I-Team has acquired a Notice of Trustee Sale from the City of La Quinta for numerous parcels of land at TALUS to satisfy an estimated $45,550,467 obligation to Cypress Point Holdings, LLC.
The May 16 foreclosure land sale was recently postponed to May 30th.
The I-Team has also confirmed with the City that a second piece of the TALUS development property will be auctioned to the highest bidder on June 4. This second property will be sold to satisfy a $32,539,912 obligation to Poppy Bank.
La Quinta residents have shared their concerns with the city at recent council meetings.
Richard Gray said, “We’ve been told in the past there’s a plan B, but we have no idea what plan B is for handling TALUS. A foreclosure sale and notice of default mean things are coming to a head.”
The City of La Quinta has a development agreement with the Silverrock Development Company, LLC., which the Robert Green Company heads. The plan has long been to build two branded hotels, a conference center, spa facilities, and other residential and commercial developments near Jefferson and Avenue 52.
The City purchased the 525 acres of land for the project and municipal golf course in 2002 for $42,500,000. The first branded luxury hotel was set to open in 2019 but construction has experienced years of delays due to funding troubles and rising labor and material costs.
“I understand there are the defaults and everything else," said La Quinta resident David Dinnell during public comment at the city council's April 7 meeting, "but I’m trying to learn how the city got in this situation. I heard the developer got the land for a dollar.”
The City most recently filed a Notice of Default against SilverRock Development Company, LLC., on April 17 as its latest project funding deadline approached. That default has not been cured by the Robert Green Company, which is now leading to multiple secured land foreclosure sales set to be held in Corona.
The City no longer owns the land involved in the sales actions but residents are still paying off the bonds the City used to purchase the property in 2002.
The I-Team is working to find out more about the pending land sales and how they will play into the development's future.
