Property owners may petition the City Commission to create a Community Improvement District (CID) for projects exceeding $200,000. Applicants may request special property tax assessments within the district, special sales tax up to 2% within the district or a combination of both. All property owners within the proposed CID must participate in the petition. Upon creation of a CID, revenue generated by these sources is available through a pay-as-you-go account. A CID can exist for a maximum of 22 years.
A CID project must:
A CID will not be used if:
Funds may be used for eligible ongoing operating expenses (ex. security, entertainment, promotion, training, market studies, etc.) only up to a maximum amount identified in the petition. Residential and mixed-use developments may not use funds for ongoing expenses.
Funds may not be used to pay development fees. Funds may reimburse capital costs incurred not more than one year prior to the creation of a CID and pay City administrative costs.
A CID petition must contain:
CID projects will not require a financial analysis to demonstrate that the project would not be possible without a CID. The City will conduct a background check on all applicant(s) and project partners.
The non-refundable application fee is $1,500 upon submission of a petition. If approved, the City will be paid an on-going administrative service fee in an amount not more than 5% of the total CID revenues. The application fee will serve as a credit against the on-going fee.
Before submitting a petition, the applicant(s) submits drafts to the City Manager, the Finance Director, the Economic Development Director and any other designated staff. Drafts do not need to be signed. City staff will meet with the applicant(s) to evaluate the draft and determine the eligibility of the project.
When a petition is submitted to the City Commission, notice of a public hearing will be published once each week for two weeks in the City’s official newspaper. The second publication will be at least seven days before the hearing. Notice will be mailed to all owners and occupants of property within the proposed district at least 10 days before the hearing.
After the hearing, the City Commission may approve the CID by ordinance. When a CID is created, the City Commission, the City and the applicant(s) will enter a Development Agreement governing the CID.
Please contact us to learn more about the City’s CID policy and petition process.
Jerrod Niemann, country singer and songwriter, graduated from Liberal High School.