The procedures for assessment reimbursement contracts shall be governed by the following:
(1) An assessment reimbursement area shall be formulated by the city, town, or county based upon a determination by the city, town, or county of which parcels adjacent to the improvements would require similar street improvements upon development.
(2) The preliminary determination of area boundaries and assessments, along with a description of the property owners' rights and options, shall be forwarded by certified mail to the property owners of record within the proposed assessment area. If any property owner requests a hearing in writing within twenty days of the mailing of the preliminary determination, a hearing shall be held before the legislative body, notice of which shall be given to all affected property owners. The legislative body's ruling is determinative and final.
(3) The contract must be recorded in the appropriate county auditor's office within thirty days of the final execution of the agreement.
(4) If the contract is so filed, it shall be binding on owners of record within the assessment area who are not party to the contract.