New developer proceeding with evaluation of long-delayed Talus La Quinta as City declares latest default

A new developer announced his intention to move forward with the long-delayed Talus La Quinta resort development as the City confirmed to News Channel 3 that long-time developer Robert Green Development Company and SilverRock Development Company are in default of all obligations to the project.

Northern California-based investor Christopher M. George, founder of CMG Financial, a mortgage bank, announced he has exercised his rights to proceed under the terms of last month’s Memorandum of Understanding and Agreement (MOU) with the City of La Quinta and other involved parties.

The move will give George additional time to conduct a "thorough investigation into the viability of documenting and advancing the long-delayed Talus project."

"... this move is not yet a commitment to recapitalize or develop the property, but it does signal a positive step forward in the evaluation process," reads a statement released Monday by an agency representing George.

“I have watched the Talus project with great interest for years,” said Mr. George. “I have committed the time and resources to continue my thorough review of the project in order to determine if it can be viable and finally come into being to serve the La Quinta community and market.”

Talus La Quinta is a resort destination that is planned to include two hotels, single-family homes, condominiums, a golf clubhouse, a conference center, and a luxury spa.

The MOU was entered into on May 24, 2024, and signed by the City, SDC, CMG, secured lenders Cypress Holdings and  Poppy Bank, hotel operator Montage North America, and general contractors RD Olson Construction Company and Granite Construction Company.

In a statement, La Quinta City Manager Jon McMillen said "The MOU paves the way for a new entity to assume developer rights and obligations including paying off what is owed to Cypress and Poppy as well as contractors/subcontractors Granite and RD Olson and releasing SDC from any obligations or liabilities related to Talus."

McMillen said, "CMG notified the City on Monday that it is exercising its right to proceed and pay off SDC’s debts on or before July 30. If CMG doesn’t meet that deadline, the MOU will automatically terminate and CMG will not be obligated to the project."

The project, initially known as the SilverRock Resort, was first envisioned in 2002. It's faced numerous delays. In September 2022, construction on the project came to a halt.

McMillen said, the City has issued SDC another Notice of Default, giving the company until July 30 to cure defaults including, "Failure to deliver a copy to the City Attorney and City Manager of all loan documents in a sufficiently final draft form for the Bridge Loans and Recapitalization Loans." Also, "Failure to close on the Recapitalization Loans with the Recapitalization Lenders."

The City Manager also confirmed to News Channel 3 the city's involvement in a San Diego Talus-related lawsuit. McMillen said a judge denied a request for a restraining order an investor had filed, which means the city's current memorandum of understanding with lenders and new developer, Chris George of CMG Financial can continue. 

News Channel 3 I-Team investigator Jeff Stahl took an in-depth look at the project timeline. Check out his special report that aired on Sunday.