Community Improvement District
A Community Improvement District (CID) may be either a political subdivision or a not-for-profit corporation. CID’s are organized for the purpose of financing a wide range of public-use facilities and establishing and managing policies and public services relative to the needs of the district.
Organizing A CID
By request petition, signed by property owners owning at least 50% of the assessed value of the real property, and more than 50% per capita of all owners of real property within the proposed CID, presented for authorizing ordnance to the governing body of the local municipality in which the proposed CID would be located. Language contained in the petition narrative must include a five year plan, describing the purposes of the proposed district, the services it will provide, the improvements it will make and an estimate of the costs of those services and improvements, and the maximum rates of property taxes and special assessments that may be imposed within the proposed district. Other information must state how the CID would be organized and governed, and whether the governing board would be elected or appointed. There are specific rules that provide the required elements of a CID petition, and the procedures for publication, public hearings, etc. Your Missouri Department of Economic Development will be happy to provide details of these rules upon request.
Unlike a Neighborhood Improvement District, a CID is a separate legal entity, and is distinct and apart from the municipality that creates the district. A CID is, however, created by ordnance of the governing body of the municipality in which the CID is located, and may have other direct organizational or operational ties to the local government, depending upon the charter of the CID.
Typical Budget Items And Responsibilities
A CID may finance new facilities or improvements to existing facilities that are for the use of the public. Such public-use facilities include:
- Convention centers, arenas, meeting facilities, pedestrian or shopping malls and plazas
- Paintings, murals, fountains or kiosks
- Parks, lawns, gardens, trees or other landscapes
- Streetscapes, lighting, benches, marquees, awnings, canopies, trash receptacles, walls
- Lakes, dams and waterways
- Sidewalks, streets, alleyways, bridges, ramps, tunnels, traffic signs and signals utilities, drainage works, water, storm and sewer systems and other site improvements
- Parking lots, garages
- Child care facilities and any other useful, necessary or desired improvement
A CID may also provide a variety of public services, some of which may be:
- Operating or contracting for the operation of parking facilities, shuttle bus services
- Leasing space for sidewalk café tables and chairs
- Providing trash collection and disposal services
- With consent of the municipality, prohibiting, or restricting vehicular and pedestrian traffic and vendors on streets
- Within a designated “blighted area”, contract with any private property owner to demolish, or rehabilitate any building or structure owned by such property owner
- Providing or contracting for security personnel, equipment or facilities
Funding of CID projects and services must be set forth in the requesting petition that is presented to the local governing body of the municipality in which the CID is located. Funding may be accomplished by district-wide special assessment, rents, fees, and charges for the use of CID property or services, grants, gifts or donations. If the CID is organized as a political subdivision, property and sales taxes may also be imposed within the boundaries of the CID.
The ability of Missouri’s communities to establish CIDs for the purpose of improving their public use facilities for the enjoyment, convenience, safety and common good of all citizens is an outstanding example of local economic development excellence. The Missouri Department of Economic Development has additional information available and strongly recommends retaining qualified professional consultation or assistance of counsel in the formation of a special district.
Disclaimer: The materials available at this web site are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem. Use of and access to this Web site or any of the e-mail links contained within the site do not create an attorney-client relationship between DED, the State of Missouri, or any attorneys employed by them and the user or browser.
Business and Community Services
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