Neighborhood Improvement District

Neighborhood Improvement Districts (NIDs) are designed to finance public improvements that will benefit the district through assessments on properties within the district.

Authorization
Article II, Section 38(c) of the Missouri Constitution and Sections 67.453 through 67.475 RSMo.

Eligible Activities
Only public improvements or facilities may be financed by a Neighborhood Improvement District (NID). Such improvements must benefit property located within the district. However, the improvement may be located outside the district if the improvement benefits the property in the district. Eligible improvements include but are not limited to the following:
  • Engineering and legal fees associated with public improvement projects
  • Gutters
  • Maintenance of the project during the term of the bonds or notes
  • Off-street parking
  • Parks and playgrounds
  • Property Acquisition
  • Sanitary sewer
  • Sidewalks
  • Signing
  • Storm water facilities
  • Streets
  • Water, gas, and utility mains
Financing
  • Bonds - Project improvements may be financed with general obligation bonds issued by the city. Maximum bond term is 20 years.
  • Special Assessments - The bonds are repaid by special assessments placed on the properties within the district. Property owners may make a 1 time lump sum payment before assessments are imposed.
NIDs established after August 28, 2004 must include provisions for maintenance of the project during the term of the bonds or notes. Section 67.469 RSMo. provides that the special assessment shall constitute a lien on the property.

Approval Process
Unlike Community Improvement Districts and Transportation Development Districts, Neighborhood Improvement Districts are not separate political subdivisions. NIDs can be established in one of two ways:
  • City Council may adopt a resolution calling for an election of voters within the proposed district. The election to establish the NID must pass by at least a 4/7 majority of district voters.
  • A petition signed by at least 2/3 of property owners by area of all real property within the proposed district may be submitted for City Council consideration.
Under both methods, the petition or the resolution calling for an election must identify the project name, proposed improvements, district boundaries, method of assessment, and other information required by law.

Following the election or petition, the city will prepare plans for the proposed improvements and a preliminary assessment roll. After a public hearing and adoption of the resolution creating the NID, council will order the improvements constructed, and assess the property owners within the district the cost of the project after construction is completed.

Neighborhood Improvement District Policies
These policies supersede the NID policies contained in City Council Resolution 8101.
  • Petitions requesting establishment of a NID must be signed by owners of at least 2/3 by area of all real property in the proposed district.
  • The sale of bonds authorized for an approved NID shall be determined by the city. All costs normally associated with the sale of bonds shall be considered project costs and shall be reimbursed through the special assessments.
  • If development is to occur before bond sale, NID petitioners must provide a written commitment from an acceptable lending institution to finance the NID improvements for the district on an interim basis.
  • The property in the district liable for the special assessment must have a value sufficient to service the debt. Value may be determined using the Greene County Assessor's data or an appraisal prepared by an appraiser acceptable to the city.
  • NID petitions must indicate the intent of each petitioner to dedicate without cost right-of-way and easements needed to carry out the NID projects.
  • Each petitioner must certify that he does not have a financial interest in an existing development that has delinquent special assessments or taxes.
  • NID petitioners will be financially responsible for any project cost overruns in excess of the maximum bonding amount authorized by City Council.
  • NID petitioners will be financially responsible for any costs involved in the preparation of preliminary plans regardless of the outcome of the district formation.
  • NID petitioners must provide an acceptable market analysis and feasibility study to establish economic viability of the project and the rate of development that can be supported.
  • For developer-initiated NIDs, the developer shall indemnify the city against any nonpayment of assessments.
  • The city retains the right to place a lien on properties for nonpayment of special assessments.
General Policies
All projects will be reviewed for consistency with both the policies for the desired incentive as well as the general policies listed on the Overview and General Policies page.