A.   City Authority: In order to encourage economic development not otherwise within the city, the city is authorized to enter into development agreements with any developer whose development meets the conditions listed in subsection B of this section.
   B.   Conditions Required For Development Agreement: For a period beginning with the adoption of this section and continuing until June 30, 2007, any developer who meets the conditions contained in this subsection can enter into a development agreement with the city in which the developer agrees to abide by all the conditions in this subsection in exchange for the reduced tax rate on certain privilege taxes described in subsection D of this section. The conditions that must be met by a developer to qualify for a development agreement include:
      1.   The development must encompass a minimum of two thousand (2,000) acres not currently within the city, but adjacent thereto.
      2.   The developer must agree to voluntarily annex to the city at least one thousand five hundred (1,500) acres of the development.
      3.   The development must contain both residential and commercial components.
      4.   A planned area development for at least seventy five percent (75%) of the development's acreage must be approved by Pinal County.
      5.   The development must not require the use of city water or sewer infrastructure to serve the development.
   C.   Compliance With State Statute: Any development agreement entered into by the city and a developer must comply, to the extent applicable, with all the requirements of a "retail development tax incentive agreement" as described in Arizona Revised Statutes section 9-500.11.
   D.   Tax Rates: Pursuant to this section, the rate of taxes to be paid pursuant to sections 16-415 and 16-416 of the tax code of the city of Eloy, with respect to work performed in the development by a developer that has entered into a development agreement, or any contractor hired by such developer or any subcontractor thereof shall be reduced to one-third (1/3) of the rate otherwise set by the city from time to time.
   E.   Rate Reduction Options: The city may choose either to incorporate the reduced tax rate as part of its city tax code, or, in the alternative, the city may instruct any taxpayers eligible for the rate reduction of this section to remit the tax at the full rate otherwise in effect, in which case the city will then pay to the developer monthly a return of the excess amount of tax payments (2/3) received from all taxpayers with respect to the development. If the city elects the latter option, it will require the developer to provide monthly schedules showing all taxes paid pursuant to sections 16-415 and 16-416 of the Eloy tax code by the developer, any contractors hired by the developer and any subcontractors to perform work in the development. Such schedules shall be subject to the city's right to audit and verification.
   F.   Limitation On Time Period; Termination Of Agreement: Any development agreement and the tax rate reductions contained therein will remain in effect for the time period during which the developer is engaged in construction activities within the development or thirty (30) years, whichever is shorter. If the conditions listed in subsection B of this section are not substantially met by the developer or development, then the city may elect to terminate the development agreement.
   G.   Definitions: For the purposes of this section:
      CITY: The city of Eloy.
      DEVELOPER: Any landowner, agent of such landowner, equitable owner, or tenant with the permission of the landowner, for whom subdivision or land development plans are being or have been made.
      DEVELOPMENT: The land on which the developer desires to develop a master planned community.
      DEVELOPMENT AGREEMENT: The written agreement entered into between the city and any developer meeting the conditions listed in subsection B that qualifies the developer, and any contractor hired by developer and any subcontractor thereof to perform work in the development for reduced rates for certain transaction privilege taxes in exchange for a commitment that the development will satisfy the conditions listed in subsection B of this section. (Ord. 06-603, 1-26-2006)