About
A Neighborhood Improvement District (NID) is a community improvement district that can finance public improvements that benefit the properties within the district. Financing can occur in the form of bonds (max term 20-years) or special assessments.
The NID revenue can help pay for public infrastructure, facilities or other improvements that benefit the property within the district, even if the improvement is located outside of the district.
Authorization of NIDs is provided via Article II, Section 38(c) of the Missouri Constitution Sections -67.475. An NID is not a separate political subdivision.
NIDs are established through a cooperative agreement between the local municipality and residents within the proposed district. There are two methods for establishment:
- A City Council resolution calling for a vote, which requires 4/7 majority of district voters.
- A petition submitted to the City Council signed by 2/3 of the property owners by area of all real property within the proposed district.
After the NID is established, the City Council orders the improvements to be constructed, and assess the property owners within the district the cost of the project when construction is complete.
Consult your municipal attorney prior to moving forward with NID opportunities.