The city of Desert Hot Springs could sign a new contract Tuesday with the developer of the stalled housing development project that would finally require it to finish public improvements on two of the villages.

The Skyborne Development — a housing project on Pierson Boulevard, between Karen Avenue and Worsley Road — could one day feature 10 villages with more than 700 homes, according to their plans.

Most of the villages have not yet been mapped out.

The City Council will vote on a new contract that would release the developer from the existing bonds and replace them with a lien contract for $10,012,585.

In exchange, the developer would finish public improvements on the first two villages within one year and pay about a $100,000 annual security fee to the city.

The contract would mean a nice perk for the city budget — the annual security fee — plus a slice of ownership in the property, Mayor Yvonne Parks said.

The owners handed over an appraisal on seven of the 10 Skyborne Villages that show they are worth $20.9 million.

Parks cautiously said she is confident the remaining villages would finally be built.

“There's every indication that it's going to go forward — but there's always a chance that it might not (because of the economy,” she said.

Councilman Russell Betts, who is running against Parks in the mayoral race, said he will ask the deal to be turned down, or at least pulled the agenda.

He says the city is “in a totally secure position right now,” and the contract would risk that unnecessarily.

“I'm aghast that even before this election is over, that a developer deal like this is coming through on the City Council agenda,” he said.

The council is scheduled to review the contract during its regularly scheduled meeting at 5 p.m. Tuesday in the Carl May Community Center.