Community Improvement Districts

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What is a Community Improvement District (CID)?
First utilized in 2002, CIDs are a tool for redevelopment and neighborhood stabilization. A CID is a separate legal entity, either a political subdivision or not-for-profit corporation, which is established to pay for public improvements or private projects through a sales and use tax, special assessment, or real property tax.

Community Improvement District (CID) Fiscal Year Annual Reports


What is Kansas City, Missouri's policy on CIDs?
Ordinance 210565, approved by council in January 2022, establishes the City's comprehensive policy for the approval of new community improvement districts and existing community improvement districts. The most current version of the City's CID policy can be found in the Code of Ordinances in Chapter 74, Article VII. State policy regarding CIDs can be found in RSMo. 67.1401 to 67.1571.

What are the requirements to establish a CID in Kansas City?

All requirements for a CID in Kansas City are listed in the Code of Ordinances in Chapter 74, Article VII. A simplified list is as follows:

1. Petition shall:

a) Inform the property owners of the right to initiative a petition to terminate the proposed CID.

b) Provide that the City Auditor shall have the right to examine or audit the records of the CID and shall require that the CID make such records available to the City Auditor within 10 days after a written request for the same is made. 

c) Estimate the revenue to be used for benefits to the public and describe such benefits.

2. Term:

CIDs shall be limited to a term of 20 years. However, if the petition provides that sales tax revenue will be used to repay debt issued to fund capital improvements, blight removal, or both, the term may be up to 27 years.

3. Blight Determination:

Any CID requesting a finding of blight or relaying on a prior determination of blight must submit with its petition additional information as outlined in Ordinance 210565.

4. City Manager Execution:

The City Manager shall not execute any petition on behalf of the City as a property owner seeking to establish a CID unless authorized by the City Council.

5. Cooperative Agreement:

Each CID shall enter into a cooperative agreement with the City. 

 


What are the Reporting Requirements for CIDs?

The City ordinance requires annual reports and proposed annual budgets be submitted to the City and provide a detailed breakdown of the CID revenue used or to be used toward public infrastructure improvements, exterior improvements, interior improvements, and other improvements and services. 

Specifically, annual reports must include the name and contact information for each current board member to be entered into the City's board and commissions electronic database. 

The City Clerk shall notify the City Council by communications to be included on the City Council's agenda each time a CID files its proposed annual budget and annual report with the City Clerk. 

City staff shall submit to the City Council, or through one of its committees, on or around December 1st of each year a report indicating the degree of compliance of all CIDs related to their submission of proposed annual budgets and annual reports within the time limits required by the State, whether the work performed conformed to previously submitted budgets, and whether the CID adhered to the terms of its cooperative agreement with the City. At the time of this report's presentation, a representative of each CID will be given the opportunity to provide a brief report on its activities. 


Revolving Loan Fund

The City of Kansas City has established a loan fund to assist in the establishment of Community Improvement Districts (“CIDs”) and provide temporary operational funds for newly established CIDs.  Applicants may apply for a loan and will be considered on a first-come, first-served basis, and as funding is available. Selected applicants must enter into a contract with the City regarding repayment of the loan. See the below documents for the policies, application process, and forms.

 Revolving Loan Fund Policy

Revolving Loan Fund Application - Newly Established CID

Revolving Loan Fund Application - Proposed CID



For more information or if you have questions, please contact the City Planning and Development Department at 816-513-1500.