A. Following formation of a tax increment development district, a district board shall administer in a reasonable manner the implementation of the tax increment development plan as approved by the governing body.

B. The district shall be governed by the governing body that adopted a resolution to form the district or by a five-member board composed of four members appointed by that governing body; provided, however, that the fifth member of the five-member board is the secretary of finance and administration or the secretary’s designee with full voting privileges.

C. Two of the appointed directors shall serve an initial term to expire following a regular local election and not to exceed six years. Two of the appointed directors shall serve an initial term to expire following a regular local election and not to exceed four years. The resolution forming the district shall state which directors shall serve the longer terms and which shall serve the shorter terms. If a vacancy occurs on the district board because of the death, resignation or inability of the director to discharge the duties of the director, the governing body shall appoint a director to fill the vacancy, and the director shall hold office for the remainder of the unexpired term until a successor is appointed or elected.

D. In the case of an appointed board of directors that is not the governing body, at the end of the appointed directors’ initial terms, the board shall hold an election of new directors by majority vote of qualified electors in accordance with the Local Election Act [N.M. Stat. Ann. Chapter 1, Article 22] and the Tax Increment for Development Act. If the election is canceled pursuant to Subsection I of Section 5-15-8 N.M. Stat. Ann., a determination by the owners conducted by ballot shall select the new directors.