Section 707. Disposition of property in area proposed to be annexed

1.
  Except as may be provided in  an  agreement  among  the  affected  local
  governments, as authorized by subdivision two of this section concerning
  the  retention,  division  or  other  disposition  of  real and personal
  property and rights in real and personal property of any affected  local
  government  or governments or any special or improvement district in the
  territory proposed to be annexed, all  real  or  personal  property  and
  rights  in  real  and  personal property, including, but not limited to,
  streets, avenues, roads,  highways,  bridges,  overpasses,  underpasses,
  culverts,  sidewalks,  street  lighting  fixtures,  and conduits, pipes,
  drains, either above or below the ground surface, and appurtenances  and
  appurtenant  rights  in  relation  thereto,  owned  by any of such local
  governments (other than the one to  which  such  territory  is  annexed)
  shall  become  the property of the county, city, village, or town (where
  the territory is not annexed to a village or villages in the  town),  to
  which  such  territory is annexed as of the date of such annexation, but
  the ownership of any real and personal property or rights  in  real  and
  personal  property of, or acquired for, special or improvement districts
  in such territory shall remain unaffected.
    2. At any time prior to their determinations as  provided  by  section
  seven  hundred  eleven  of  this  article,  the  governing boards of the
  affected local governments, or their designated  representatives,  shall
  have  power  to  agree  on the retention, division or other disposition,
  either with or without consideration, of real or personal  property  and
  rights  in  real  or  personal  property  of  any  such  affected  local
  government or of any special  or  improvement  districts  in  which  the
  territory  proposed  to be annexed is situated. Any such agreement shall
  be in writing and shall be executed by such governing boards,  or  their
  designated  representatives,  covering  the  matters  agreed  upon. Such
  agreement may provide for the execution  of  any  deeds  or  instruments
  affecting the retention, division or other disposition of such property,
  either  with  or  without  consideration.  Any  such  agreement shall be
  followed in the local law  to  be  adopted  pursuant  to  section  seven
  hundred fourteen of this article.