(1) In areas where tax increment financing has been approved, the city may pay for some or all of the improvements in such areas, and may relieve the developer of the obligation to pay for these improvements. Any agreement by the city to pay for some or all improvements and to relieve the developer of the obligation to pay for some or all improvements, must be contained in a written agreement between the city and the developer, and be approved by resolution of the city council after review by the planning and zoning commission.

(2) The city may condition approval of the development, and the city’s payment for any improvements with TIF funds, on the developer entering into a project development contract with the city. Such contract shall provide specific guarantees by the developer as to the amount of incremental taxing valuation added to the development over the TIF period. The contract shall require the developer to pay to the city any tax revenues lost by the city because the guaranteed minimum incremental tax valuations are not achieved. At a minimum, the contract shall provide that over the TIF period, the incremental taxing revenues received from the subdivision (or portion of a subdivision, if the improvements in a subdivision are installed in separate phases), are at least equal to the city’s costs for the improvements in the subdivision, or portion of a subdivision. The contract may require the subdivision, or portion, to generate minimum amounts of incremental tax revenue pursuant to a schedule. The contract shall require the developer to post a bond or other acceptable assurance that the developer will be able to fulfill the guarantee over the full TIF period. The contract may allow reductions in the bond or other assurance as tax revenues are received. [Ord. 458 § 1, 1997; Code 1975 § 6-6.0305.]