At least every 12 months the Director shall review the project for good faith compliance with the terms of the agreement by the applicant or successor in interest thereto. In the event the Director determines that there is not good faith compliance, he shall refer the matter to the City Council, which shall determine, after a hearing, if good faith compliance has occurred. If the City Council finds that good faith compliance has not occurred, it may, in its sole discretion, terminate or modify the agreement in order to best preserve the public health, safety and welfare.