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DED Home  >  Business and Community Services Home  >  Community Services  >  Local Finance Initiatives  >  Neighborhood Improvement District

Neighborhood Improvement District

A Neighborhood Improvement District (NID) may be created in an area desiring certain public-use improvements that are paid for by special tax assessments to property owners in the area in which the improvements are made. The kinds of projects that can be financed through an NID must be for facilities used by the public, and must confer a benefit on property within the NID.

Local Government/Voter Initiative

An NID is created by election or petition of voters and/or property owners within the boundaries of the proposed district. Election or petition is authorized by a resolution of the governing body of the municipality in which the proposed NID is located. Language contained in the petition narrative or ballot question must include certain information including, but not limited to a full disclosure of the scope of the project, its cost, repayment, and assessment parameters to affected property owners within the NID.

Typical Budget Items

  1. Acquisition of Property
  2. Improvement of streets, sidewalks, crosswalks and all related components
  3. Drainage, storm and sanitary sewer systems and service connections from utility mains, conduits and pipes
  4. Improvement of streetlights and street lighting systems
  5. Improvement of waterworks
  6. Improvement of parks, playgrounds and recreational facilities
  7. Improvement of flood control works
  8. Improvement of pedestrian and vehicle bridges, overpasses and tunnels
  9. Landscaping streets or other public facilities including improvement of retaining walls and area walls on public ways
  10. Improvement of property for off-street parking

Responsibilities And Challenges

Public hearings concerning the specifics of the project, its costs, and other specific information pertinent to the project must be conducted prior to commencement of work on any project of the NID so that any written or oral objections may be considered.

The ability of Missouri’s neighborhoods and communities to join together for the purpose of improving their public use facilities for the enjoyment, convenience, and safety of all citizens is an outstanding example of local economic development excellence. The Missouri Department of Economic Development has the information, tools and professional expertise to assist Missouri communities create better neighborhoods.


Business and Community Services
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Tel: 800-523-1434    Fax: 573-751-7384   Email: missouridevelopment@ded.mo.gov

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