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I. How often are personal guarantees required in connection with projects of this type? • <br /> 2. Under what circumstances would a personal guarantee be potentially needed or <br /> useful? <br /> 3. As a practical matter, what steps would have to be taken to enforce a personal <br /> guarantee, what types of costs (if any)would the City incur in doing so, and what is the <br /> likelihood that the City would realize a"net recovery"from such action(s)? <br /> 4. To what extent is a "personal guarantee requirement" inconsistent with or contrary to <br /> the business considerations that often prompt developers to use "limited liability" legal <br /> entities (partnerships and corporations)? <br /> In order to provide you with some objective information regarding this issue, I intend to discuss it with <br /> Dave Maroney of Community Partners. Mr. Maroney is a consultant who has advised the City with <br /> respect to certain other aspects of the Mermaid project. I will convey his comments to you at the <br /> meeting on Thursday. Ultimately, the EDC's options with respect to this issue would seem to <br /> include: <br /> I. Recommending in favor of mandatory personal guarantees. <br /> 2. Recommending against mandatory personal guarantees. <br /> 3. Agreeing to take no position with respect to the issue in question. <br /> 4. Deferring a decision of the issue until a future date and/or until more information <br /> becomes available. <br /> As always, please feel free to call me between now and Thursday if you'd like to discuss any of these <br /> items. <br /> K- '• Carroll (6 I - 17-4029) <br /> Economic Development Coordinator <br /> • <br /> N:\DATA\GROUPS\ECONDEV\EDA-EDC\EDC\STAFF99\02259B.MEM <br /> ■ <br />