(a) Except as provided in Subsection (c), before the district may exercise any powers under this chapter:
(1) the city must adopt an ordinance or resolution consenting to the creation of the district and to the inclusion of land in the district;
(2) the city and the district must negotiate and execute a mutually approved and accepted operating agreement; and
(3) the city and each developer of property in the district must negotiate and execute a project agreement.
(b) This chapter expires December 31, 2020, if:
(1) the city and the district have not executed the operating agreement required by Subsection (a)(2); or
(2) the city and each developer of property in the district have not executed a project agreement as required by Subsection (a)(3).

(c) The board has the powers necessary, convenient, or desirable to negotiate and execute a mutually approved and accepted operating agreement.