(1) At any time within one year after the day on which the lieutenant governor completes the public hearings required under Section 10-2a-506, the owners of the property who filed the feasibility request under Section 10-2a-502 for the proposed preliminary municipality area may proceed with the incorporation process by filing a petition for incorporation of the proposed preliminary municipality that: (a) includes the typed or printed name, signature, address, and phone number of the initial landowners; (b) describes the proposed preliminary municipality area, as described in the feasibility request or the modified feasibility request; (c) demonstrates compliance with Subsection 10-2a-504(4); (d) states the proposed name for the proposed preliminary municipality; (e) designates the primary sponsor contact for the proposed preliminary municipality; (f) designates the board chair and three of the four board members who will serve as a five member council form of government for the preliminary municipality, described in Section 10-3b-402, for the preliminary municipality; (g) is accompanied by an accurate map or plat, prepared by a licensed surveyor, showing: (i) the boundaries of the proposed preliminary municipality; (ii) a single development plan for the proposed municipality, depicting each phase of the development; (h) is accompanied by a bond, cash deposit, or letter of credit that: (i) is posted by the initial landowners; (ii) is in favor of the proposed preliminary municipality, to guarantee that the initial landowners will complete the system infrastructure no later than six years after the day on which the initial landowners file the petition for incorporation described in this section; and (iii) will be refunded to the initial landowners in percentages that reflect the progress toward completing the system infrastructure; and (i) is accompanied by payment in full, from the initial landowners, of the costs incurred by the lieutenant governor for the feasibility study, the public notices, the hearings, and the other expenses incurred by the lieutenant governor to comply with the requirements of this part in relation to the proposed preliminary municipality. (2) If, within six years after the day on which the initial landowners file a petition for incorporation under Subsection (1), the system infrastructure for the preliminary municipality is not completed, the portion of the bond, cash deposit, or letter of credit described in Subsection (1)(h) that has not been refunded to the initial landowners shall forfeit to the preliminary municipality. (3) If, within four years after the day on which the first residential certificate of occupancy is issued for the development described in Subsection 10-2a-503(5)(e), or six years after the day on which the initial landowners file a petition for incorporation under Subsection (1), the preliminary municipality has not transitioned to a town: (a) the lieutenant governor shall issue a certificate dissolving the preliminary municipality; (b) all roads and infrastructure within the preliminary municipality revert to the county in which the preliminary municipality is located; (c) the area within the proposed municipality falls under the jurisdiction of the county and is no longer incorporated; and (d) the initial landowners are liable to the county for damages caused to the county due to the dissolution of the preliminary municipality.
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