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

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.