(a) Before the district may undertake projects, issue bonds, impose taxes, or borrow money, the district and the city must negotiate and execute a mutually approved and accepted project development agreement regarding the development plans and rules for:
(1) the development and operation of the district; and
(2) the financing of improvement projects.
(b) The agreement must:
(1) describe each project the district intends to undertake;
(2) include a financing plan specifying how each project will be financed; and
(3) provide a procedure and rules for amending the agreement.