Wisconsin Code § 66.1110

Neighborhood improvement districts
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(1) In
this section:
(a) “Board” means a neighborhood improvement district
board elected under sub. (4) (a).

(b) “Chief executive officer” means a mayor, city manager,
village president, or town chairperson.
(c) “Local legislative body” means a common council, village
board of trustees, or town board of supervisors.
(d) “Municipality” means a city, village, or town.
(e) “Neighborhood improvement district” means an area
within a municipality consisting of nearby but not necessarily
contiguous parcels, at least some of which are used for residential
purposes and are subject to general real estate taxes, and property
that is acquired and owned by the board if the local legislative
body approved acquisition of the property under sub. (4) (d) as
part of its approval of the initial operating plan under sub. (3) (e).
(f) “Operating plan” means a plan adopted or amended under
this section for the development, redevelopment, maintenance,
operation, and promotion of a neighborhood improvement
district.
(g) “Owner” means the owner of real property that is located
within the boundaries, or the proposed boundaries, of a neighborhood improvement district.
(h) “Planning commission” means a plan commission under
s. 62.23 or, if none exists, a board of public land commissioners
or, if none exists, a planning committee of the local legislative
body.
(2) An operating plan shall include at least all of the following
elements:
(a) Subject to sub. (8), the special assessment method applicable to the neighborhood improvement district.
(am) Whether the neighborhood improvement district may
approve a special assessment under sub. (8).
(b) The kind, number, and location of all proposed expenditures within the neighborhood improvement district.
(c) A description of the methods of financing all estimated expenditures and the time when related costs will be incurred.
(d) A description of how the creation of the neighborhood improvement district promotes the orderly development of the municipality, including its relationship to any municipal master plan.
(e) A statement as to whether the local legislative body authorizes the board to own real property and, if so, a description of the
real property to be owned, the purpose of the ownership, and a
statement of to whom the real property will be transferred if the
neighborhood improvement district is terminated.
(f) A legal opinion that pars. (a) to (e) have been complied
with.
(3) A municipality may create a neighborhood improvement
district and adopt its operating plan if all of the following conditions are met:
(a) An owner of real property subject to general real estate
taxes and located in the proposed neighborhood improvement
district designated under par. (b) has petitioned the municipality
for creation of a neighborhood improvement district.
(b) The planning commission has designated a proposed
neighborhood improvement district and adopted its proposed initial operating plan.
(c) At least 30 days before creation of the neighborhood improvement district and adoption of its initial operating plan by the
municipality, the planning commission has held a public hearing
on its proposed neighborhood improvement district and initial
operating plan. Notice of the hearing shall be published as a class
2 notice under ch. 985. Before publication, a copy of the notice,
together with a copy of the proposed initial operating plan and a
copy of a detail map showing the boundaries of the proposed
neighborhood improvement district, shall be sent by certified
mail to all owners of real property within the proposed neighborhood improvement district. The notice shall state the boundaries
of the proposed neighborhood improvement district and shall indicate that copies of the proposed initial operating plan are available from the planning commission on request.
(d) Within 30 days after the hearing under par. (c), one of the
following has not filed a petition with the planning commission
protesting the proposed neighborhood improvement district or its
proposed initial operating plan:
1. The owners of property to be assessed under the proposed
initial operating plan having a valuation equal to more than 40
percent of the valuation of all property to be assessed under the
proposed initial operating plan, using the method of valuation
specified in the proposed initial operating plan.
2. The owners of property to be assessed under the proposed
initial operating plan having an assessed valuation equal to more
than 40 percent of the assessed valuation of all property to be assessed under the proposed initial operating plan.
(e) The local legislative body has voted to adopt the proposed
initial operating plan for the neighborhood improvement district.
The local legislative body shall publish a class 2 notice under ch.
985 regarding the meeting at which the local legislative body will
vote on whether to adopt the proposed initial operating plan for
the neighborhood improvement district. Before publication, a
copy of the notice shall be sent by certified mail to all owners of
real property within the proposed neighborhood improvement
district.
(4) (a) 1. If the local legislative body adopts the proposed
initial operating plan under sub. (3) (e), it shall determine the size
of board, which shall consist of at least 5 members, all of whom
shall own or occupy real property in the neighborhood improvement district.
2. The number of board members who represent commercial
and residential property, respectively, shall be set by the local legislative body, as closely as possible, in the same proportion as is
the aggregate valuation of commercial property in the neighborhood improvement district to the total assessed value of all property in the district, and the aggregate valuation of residential
property in the district to the total assessed value of all property
in the district.
3. The local legislative body shall set the time and place for a
meeting at which members of the board will be elected, and shall
publish a class 2 notice under ch. 985 that contains this information. The notice shall specify that all individuals who either own
or occupy real property within the neighborhood improvement
district are eligible to serve on the board and vote at the election.
4. At the meeting, the individuals who own or occupy real
property shall be divided into 2 groups. One group shall consist
of those individuals who own or occupy commercial property,
and one group shall consist of those individuals who own or occupy residential property. Each group shall elect from among its
members the number of board members set to represent its group
by the local legislative body under subd. 2.
5. Board members elected under subd. 4. shall serve a one
year term, and may be reelected. Annually, the number of board
members who represent commercial and residential properties,
based on the calculation described in subd. 2., may be reallocated
by the local legislative body to the greatest extent possible to be
consistent with the proportion described under subd. 2.
6. Annually, board members shall be elected under the procedures contained in this paragraph. If a vacancy occurs during
the term of a board member, an individual shall be elected to fill
the unexpired term of the member under the procedures contained in this paragraph.
(b) The board shall annually consider and may make changes
to the operating plan, which may include termination of the plan,
for the neighborhood improvement district. The board shall then

submit the operating plan to the local legislative body for its approval. If the local legislative body disapproves the operating
plan, the board shall consider and may make changes to the operating plan and may continue to resubmit the operating plan until
local legislative body approval is obtained. Any change to the
special assessment method applicable to the neighborhood improvement district shall be approved by the local legislative body.
(c) The board shall prepare and make available to the public
annual reports describing the current status of the neighborhood
improvement district, including expenditures and revenues. The
report shall include an independent certified audit of the implementation of the operating plan obtained by the municipality.
The municipality shall obtain an additional independent certified
audit upon termination of the neighborhood improvement
district.
(d) Either the board or the municipality, as specified in the operating plan as adopted, or amended and approved under this section, has all of the powers necessary or convenient to implement
the operating plan, including the power to contract.
(4m) A municipality may annex territory to an existing
neighborhood improvement district if all of the following conditions are met:
(a) An owner of real property subject to general real estate
taxes and located in the territory proposed to be annexed has petitioned the municipality for annexation.
(b) The planning commission has approved the annexation.
(c) At least 30 days before annexation, the planning commission has held a public hearing on the proposed annexation. Notice of the hearing shall be published as a class 2 notice under ch.
985. Before publication, a copy of the notice, together with a
copy of a detail map showing the boundaries of the territory proposed to be annexed to the neighborhood improvement district,
shall be sent by certified mail to all owners of real property
within the territory proposed to be annexed. The notice shall
state the boundaries of the territory proposed to be annexed.
(d) Within 30 days after the hearing under par. (c), one of the
following has not filed a petition with the planning commission
protesting the proposed annexation:
1. The owners of property in the territory to be annexed that
would be assessed under the operating plan having a valuation
equal to more than 40 percent of the valuation of all property in
the territory to be annexed that would be assessed under the operating plan, using the method of valuation specified in the operating plan.
2. The owners of property in the territory to be annexed that
would be assessed under the operating plan having an assessed
valuation equal to more than 40 percent of the assessed valuation
of all property in the territory to be annexed that would be assessed under the operating plan.
(5) All special assessments received from a neighborhood improvement district and all other appropriations by the municipality or other moneys received for the benefit of the neighborhood
improvement district shall be placed in a segregated account in
the municipal treasury. No disbursements from the account may
be made except to reimburse the municipality for appropriations
other than special assessments, to pay the costs of audits required
under sub. (4) (c) or on order of the board for the purpose of implementing the operating plan. On termination of the neighborhood improvement district by the municipality, all moneys collected by special assessment remaining in the account shall be
disbursed to the owners of specially assessed property in the
neighborhood improvement district, in the same proportion as the
last collected special assessment. This subsection does not apply
to special assessments under sub. (8).
(6) (a) Subject to pars. (b) and (c), a municipality shall terminate a neighborhood improvement district if one of the following
occurs:
1. The owners of property assessed under the operating plan
having a valuation equal to more than 50 percent of the valuation
of all property assessed under the operating plan, using the
method of valuation specified in the operating plan, file a petition
with the planning commission requesting termination of the
neighborhood improvement district.
2. The owners of property assessed under the operating plan
having an assessed valuation equal to more than 50 percent of the
assessed valuation of all property assessed under the operating
plan, file a petition with the planning commission requesting termination of the neighborhood improvement district.
3. The owners of property assessed under the operating plan
having a valuation equal to more than 50 percent of the valuation
of all property assessed under the operating plan fail to file a petition with the planning commission to continue the neighborhood
improvement district within one year of the date on which the
membership of the board changes from a majority which represents commercial properties to a majority that represents residential properties, or vice versa, as described under sub. (4) (a) 3.
(b) 1. A petition may not be filed under this subsection earlier
than one year after the date on which the municipality first adopts
the operating plan for the neighborhood improvement district.
2. On and after the date on which a petition is filed under par.
(a) 1. or 2., or on and after the date on which a petition must be
filed under par. (a) 3., neither the board nor the municipality may
enter into any new obligations by contract or otherwise to implement the operating plan until the expiration of 30 days after the
date of the hearing under subd. 3. and unless the neighborhood
improvement district is not terminated under par. (c).
3. Within 30 days after the filing of a petition under par. (a)
1. or 2., the planning commission shall hold a public hearing on
the proposed termination. Within 30 days after the deadline for
filing a petition under par. (a) 3. passes, the planning commission
shall hold a public hearing on the proposed termination. Notice
of the hearing shall be published as a class 2 notice under ch. 985.
Before publication, a copy of the notice, together with a copy of a
detail map showing the boundaries of the neighborhood improvement district, shall be sent by certified mail to all owners of real
property within the neighborhood improvement district. The notice shall state the boundaries of the neighborhood improvement
district and shall indicate that copies of the operating plan are
available from the planning commission on request and are
posted in the building in which the municipality’s governing body
regularly holds its meetings.
4. Within 30 days after the date of the hearing under subd. 3.,
every owner of property assessed under the operating plan may
send written notice to the planning commission indicating, if the
owner signed a petition under par. (a) 1. or 2., that the owner retracts the owner’s request to terminate the neighborhood improvement district, or, if the owner did not file or sign a petition
under par. (a) 1. or 2., that the owner requests termination of the
neighborhood improvement district under par. (a) 1. or 2.
5. Within 30 days after the date of the hearing under subd. 3.,
every owner of property assessed under the operating plan may
send written notice to the planning commission indicating, if the
owner signed a petition under par. (a) 3., that the owner retracts
the owner’s request to continue the neighborhood improvement
district, or, if the owner did not file or sign a petition under par.
(a) 3., that the owner requests continuation of the neighborhood
improvement district under subd. 3.
(c) After the expiration of 30 days after the date of the hearing
under par. (b) 3., and after adding any additions and subtracting
any retractions under par. (b) 4. and 5., the municipality shall ter-

minate the neighborhood improvement district on the date on
which the obligation with the latest completion date entered into
to implement the operating plan expires if the owners who have
signed the petition requesting the termination of the neighborhood improvement district under par. (a) 1. or 2. constitute the required groups specified in par. (a) 1. or 2., or if an insufficient
representation of owners, as described under par. (a) 3., petition
to continue the neighborhood improvement district under par. (a)
3.
(7) (a) 1. Except as provided in subd. 2., any parcel of real
property used exclusively for less than 8 residential dwelling units
and real property that is exempted from general property taxes
under s. 70.11 may not be specially assessed for purposes of this
section.
2. In a 1st class city, real property that is exempted from general property taxes under s. 70.11 may not be specially assessed
for purposes of this section.
(b) A municipality may terminate a neighborhood improvement district at any time.
(c) This section does not limit the power of a municipality under other law to regulate the use of or specially assess real
property.
(8) (a) Notwithstanding sub. (3) (a), and subject to par. (c), a
municipality may create a neighborhood improvement district
with authority to approve a special assessment upon petition for a
neighborhood improvement district with authority to approve a
special assessment by all owners of real property subject to general real estate taxes located in the proposed neighborhood improvement district and satisfaction of the conditions under sub.
(3).
(b) Upon approval by the local legislative body of a neighborhood improvement district operating plan approving the imposition of a special assessment, a municipality shall impose a special
assessment on the parcels within the initial neighborhood improvement district. All proceeds of a special assessment imposed
under this subsection shall fund infrastructure related to residential development within the neighborhood improvement district.
A special assessment imposed under this subsection may be collected in installments and may be included in the current or next
tax roll for collection and settlement under ch. 74 even if the special assessment is not delinquent. If a municipality authorizes the
collection of a special assessment under this paragraph in installments, the municipality shall designate the maximum number of
years over which the installments may be made.
(c) All of the following apply to a neighborhood improvement
district operating plan approving a special assessment:
1. The operating plan shall include a description of infrastructure to be funded by special assessment. Infrastructure that
may be funded by special assessment includes only infrastructure
related to residential development within the neighborhood improvement district.
2. The operating plan shall include the repayment amounts
that will be attributed to each parcel in the neighborhood improvement district or the method by which these amounts will be
determined.
(d) 1. A municipality may forgo the mailed notice under sub.
(3) (c) and (e) for a neighborhood improvement district under this
subsection if all property in the neighborhood improvement district is owned by a single person.
2. Subsection (4) (a) does not apply until at least 5 persons
own real property within the neighborhood improvement district.
If fewer than 5 persons own real property within the neighborhood improvement district, the board shall consist of a designee
of each owner of real property within the neighborhood improvement district.
(e) The termination of a neighborhood improvement district
under this subsection does not affect the enforceability of a special assessment imposed under par. (b).

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