(a) The commissioner shall contract for a study of the feasibility of establishing a borough in the unorganized borough by following the procedures under AS 36.30 (State Procurement Code). The commissioner shall include terms in the contract that provide for

1. (1) public participation in the preparation of the study;
2. (2) completion of the study not later than June 30 of the third year after the year the contract is executed.

(b) A study under this section must include

1. (1) a recommendation for or against incorporation of a borough containing all or part of the area studied;
2. (2) an evaluation of the economic development potential of the area studied;
3. (3) an evaluation of capital facility needs of the area studied;
4. (4) an evaluation of demographic, social, and environmental factors affecting the area studied;
5. (5) an evaluation of the relationships among regional educational attendance areas and other regional entities responsible for providing services in the area studied;
6. (6) an evaluation of the relationships between the existing cities within the area studied and regional entities responsible for providing services in the area; and

7. (7) specific recommendations for

   1. (A) organization of a home rule or general law borough government if one is recommended;
   2. (B) changes in organization of cities in the area studied; or
   3. (C) the improvement of the delivery of services to the public by the state in the area studied.