Utah Municipal Attorneys Association

Requiring individual owners of corporations and LLCs to Sign Development Agreements

  • 16 May 2012 4:12 PM
    Message # 922701
    Deleted user

    West Jordan, like many cities, has one or more subdivision projects that were abandoned during the recession with public improvements uncompleted.  Political fallout then occurs from the residents.

     

    West Jordan is considering requiring the individual owners of corporations or LLCs signing development /deferral agreements.  This is a lesson learned long ago by banks, who regularly require owner guarantees of corporate or LLC loans. 

     

    If the individuals believe in their projects, they should be happy to sign personally....right!

     

    Nevertheless has anyone had experience with this concept of personal guaranties of development agreement obligations?

     

    Thanks.

     

    Bob Thorup

    Deputy City Attorney

    City of West Jordan

  • 17 May 2012 9:40 AM
    Reply # 923310 on 922701
    If you record them don't they run wiht the land and give you the same result?
  • 17 May 2012 9:55 AM
    Reply # 923321 on 922701
    Deleted user
    Thanks, John.  Yes they do, but then the follow on developer makes the argument that it is no longer roughly proportional and thus an unconstitutional taking.  We would like the option of suing the individuals, who often take title to the remaining property.
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