Sanitary and Improvement Districts Make Nebraska Unique
There was a time in Omaha’s history that all of the land west of 72nd Street was outside the city limits. Today, virtually all of the city’s growth has been developed using Sanitary and Improvement Districts (“SIDs”). Ana limited purpose political corporation formed to aid land development outside the city limits. This sustainable model is unique to Nebraska and has proven to be an effective way for municipalities to efficiently grow at a market-driven pace since the 1940’s. SIDs allow cities to control the specifications and scope of improvements, without requiring their direct investment.
Managed Properly, SIDs are an Effective Tool to Finance and Encourage New Development
The SID process begins with a developer and a vision. Once the district is formed it may install public infrastructure improvements such as streets, sanitary and storm sewers, power, water, gas, and even public parks. These improvements are financed through the issuance of tax-exempt debt. Over time, a tax base is established, which generates property tax revenues sufficient to retire the debt. If and when the city determines it financially feasible to annex the SID, the district ceases to exist.
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