(A) In lieu of annexing contiguous territory or in cases not involving annexation, the executive and the proper administrative agency of a municipality, with the consent of the Town Council, may enter into contracts with the owners or lessees of designated property in the vicinity of the municipality, providing for the payment or contribution of money to the municipality for the payment or contribution of money to the municipality for municipal or public purposes specified in the contract. The payments under the contract may be:
(1) Related to or in consideration of municipal services or benefits received or to be received by the property owners or lessees;
(2) In lieu of taxes that might be levied on annexation of the designated property; and/or
(3) Wholly unrelated to municipal services or benefits to or potential tax imposition on the designated property.
(B) Any other political subdivision that has taxing power in respect to the designated property or is entitled to share in the property taxes assessed and collected by the municipality may:
(1) Join in a contract under this section; and/or
(2) Enter into a separate agreement with the municipality, providing for the division and distribution of contract payments made under this section and for the receipt of a share of those payments by the municipal authority.
(C) A contract under this section may be entered into for the term agreed to by the municipality and the property owners or lessees, but that term may not exceed 15 continuous years under one contract.
(D) A contract under this section continues in effect for its full term unless it is:
(1) Induced by fraud of the property owners or lessees;
(2) Grossly and corruptly improvident on the part of the municipality; and/or
(3) Terminated or reduced in duration by agreement of the municipality and the property owners or lessees.
(E) A contract under this section may provide that during its effective term, the designated property of the contracting owners or lessees is not subject to annexation by the municipality.
(1998 Code, § 18-4)