(1) A developer of a multiple-family residential project consisting of 5 or more dwelling units may receive a credit of up to fifty percent of the appropriate systems development charges otherwise due under Section 7.720 in connection with the development if all of the following conditions are met:
(a) The developer constructs, pays for or contributes to the cost of a capital improvement on the Plan described in subsection (2) of section 7.715 of this Code, and the capital improvement would be eligible for SDC funding under the Plan;
(b) The improvement is located within the boundaries of the neighborhood association in which the development is being constructed;
(c) Credit for the construction of or contribution to the improvement is permissible under state law; and
(d) The City Council, the developer, and the applicable neighborhood association board of directors each:
1. Agree that the improvement will mitigate one or more impacts resulting from the multiple-family residential project in the neighborhood; and
2. Approve the grant of SDC credit in exchange for the construction of, or contribution to, the improvement.
(2) The credit described in this section may be applied only toward the system development charge attributable to the same system (transportation, wastewater, stormwater, parks) as the improvement which the developer constructs or to the cost of which the developer contributes.