Nebraska § 18-3503 - Community improvement district; formation by majority of owners; purposes; articles of association; contents; filing; approval by city or village; ordinance, required.

§ 18-3503. Community improvement district; formation by majority of owners; purposes; articles of association; contents; filing; approval by city or village; ordinance, required.

(1)(a) A majority of the owners, as determined in subsection (5) of this section, having an interest in the real property within the limits of a proposed community improvement district, situated wholly within a village or city in this state at the time of approval pursuant to section 18-3506, may propose formation of a community improvement district for the purpose of construction, installation, improvement, equipping, maintenance, and repair of public infrastructure in or related to such community improvement district, and contracting with the city or village in which the community improvement district is located or other political subdivisions of this state for any public purpose. The real property included within a community improvement district may be contiguous or noncontiguous.

(b) Nothing in this section shall authorize community improvement districts to purchase electric service and resell the same.

(c) For the purposes listed in this section, such majority of the owners may make and sign articles of association in which shall be stated (i) the name of the community improvement district, (ii) that the community improvement district will have perpetual existence, (iii) the limits of the community improvement district, (iv) the name and place of residence of each owner of the land in the proposed community improvement district, (v) the description of the several tracts of land situated in the community improvement district owned by those who may organize the community improvement district, and (vi) the name and the description of the real estate owned by any such owner who does not join in the organization of the community improvement district but who will be benefited thereby. Such owners of real estate as are unknown may also be set out in the articles as such.

(d) No community improvement district may own or hold land in excess of ten acres, unless such land so owned and held by such community improvement district is actually used for a public purpose, as provided in this section, within three years after its acquisition. Any community improvement district which has acquired land in excess of ten acres in area and has not devoted the same to a public purpose, as set forth in this section, within three years after the date of its acquisition, shall devote the same to a use set forth in this section or shall divest itself of such land. When a community improvement district divests itself of land pursuant to this section, it shall do so by sale at public auction to the highest bidder after notice of such sale has been given by publication at least three times for three consecutive weeks prior to the date of sale in a legal newspaper of general circulation within the area of the community improvement district.

(2) The articles of association shall state:

(a) The proposed community improvement district proposes an aggregate maximum permitted levy rate for all purposes in an amount not to exceed ......... per $100 of taxable valuation in such community improvement district, to be deposited and held in the funds of the community improvement district and used for general corporate purposes, including payment of principal of and interest on any outstanding bonds, warrants, and other obligations of the community improvement district; and

(b) The owners of real estate so forming the community improvement district for such purposes are willing and obligate themselves to pay the tax or taxes which may be levied against all the property in the community improvement district and special assessments against the real property benefited which may be assessed against them to pay the expenses that may be necessary for the purposes of the community improvement district as authorized in subsection (1) of this section.

(3) The articles shall propose the names of five or more trustees who (a) live in the purposed community improvement district, (b) are owners of real estate located in the proposed community improvement district, or (c) are designees of the owners if the real estate is owned by a limited partnership, a general partnership, a limited liability company, a public, private, or municipal corporation, an estate, or a trust. The five trustees approved pursuant to section 18-3506 shall serve as a board of trustees until their successors are elected and qualified if such community improvement district is organized.

(4) After the articles are signed, the same shall be filed in the office of the clerk of the city or village in which such community improvement district shall be located together with a request that the city council of the city or board of trustees of the village in which such articles of association have been filed pass and approve an ordinance approving formation of such community improvement district pursuant to the Community Improvement District Act.

(5) For purposes of subsection (1) of this section, a majority of the owners having an interest in the real property in a proposed community improvement district is determined as follows:

(a) If the real property in a proposed community improvement district is currently zoned commercial or industrial, a majority of the owners is determined based on the number of acres owned in the proposed boundary of the community improvement district;

(b) If the real property in a proposed community improvement district is currently zoned residential, a majority of the owners is determined based on the majority of the number of residential lots or condominium units in the proposed boundary of the community improvement district, regardless of lot size;

(c) If the real property in a proposed community improvement district is currently zoned agricultural, majority means all real property owners; and

(d) If the real property in a proposed community improvement district is a combination of subdivisions (a) through (c) of this subsection, a majority of the owners is determined giving equal weight to each acre and each residential lot and must include all owners of agricultural land in the proposed boundary of the community improvement district.