§46-80.5  Special improvement district. (a)  In addition and supplemental to the authority vested in the counties bysections 46-80 and 46-80.1, any county having a charter may enact an ordinance,and may amend the same from time to time, authorizing the creation of specialimprovement districts for the purpose of providing and financing supplementalmaintenance and security services and such other improvements, services, andfacilities within the special improvement district as the council of the countydetermines will restore or promote business activity in the special improvementdistrict and making and financing improvements therein.  Each separate specialimprovement district shall be established by a separate ordinance enacted asprovided in the ordinance authorizing the creation of special improvementdistricts.  The ordinance authorizing the creation of special improvementdistricts may permit the county to provide for a board or association,established pursuant to chapter 414D, to provide management of the specialimprovement district, and to carry out activities as may be prescribed by theordinance authorizing the creation of special improvement districts and theordinance establishing the special improvement district as permitted thereby.

(b)  The county may levy and assess a specialassessment on property located within the special improvement district tofinance the maintenance and operation of the special improvement district andto pay the debt service on any bonds issued to finance improvements within thespecial improvement district.  Notwithstanding any law to the contrary, inassessing property for a special assessment, the county may implement amethodology as the council of the county deems appropriate.  The specialassessment may be fixed in an amount or appropriated on a basis as the councilof the county deems appropriate, and it shall not be essential that theproperty subject to the special assessment be improved or benefitted by theoperation and maintenance of the special improvement district or any activityor improvement undertaken for, and financed by, the special improvementdistrict.

(c)  The county may issue and sell bonds tofinance improvements within the special improvement district and the ordinanceauthorizing the creation of special improvement districts may provide themethod, procedure, and type or types of security for those bonds.  Each issueor series of bonds shall be authorized by ordinance separate from the ordinanceestablishing the special improvement district.  The bonds shall be in amounts,in denomination or denominations, in form or forms, executed in a manner,payable in place or places and at time or times, bear interest at rate or rates(either fixed or variable), mature on date or dates and provide terms andconditions of redemption, provide security (including the pledge of proceeds ofthe bonds, special assessments, and the lien therefor), provide for creditenhancement, if any, administration, terms of investment of proceeds of thebonds and special assessment receipts, provide terms of default and remedy, andother terms and conditions, as the council of the county deems necessary orproper.  The bonds may be sold in a manner and at price or prices as thecouncil of the county shall determine.  Bonds issued pursuant to this sectionand the interest thereon and other income therefrom shall be exempt from anyand all taxation by the State or any county or other political subdivision,except inheritance, transfer, and estate taxes.

(d)  Notwithstanding any other law to thecontrary, no action or proceeding to object to or question the validity of orenjoining any ordinance, action, or proceeding permitted by this section(including the liability for or the determination of the amount of any specialassessment levied or the imposition thereof), or any bonds issued or to beissued pursuant to an ordinance enacted as permitted by this section, shall bemaintained unless begun within thirty days of the enactment of the ordinance,determination, or other act, as the case may be and, in the case of theassessment, whether the determination or levy, within thirty days afteradoption of the ordinance authorizing or amending the assessment formula and,in the case of bonds, within thirty days after enactment of the ordinanceauthorizing the issuance of the bonds.

(e)  Exemptions.

(1)  Property owned by the state or county governmentsor entities, may be exempt from the assessment except as provided in paragraph(3);

(2)  Property owned by the federal government or entities,shall be exempt from the assessment except as provided in paragraph (3);

(3)  If a public body owning property, includingproperty held in trust for any beneficiary, which is exempt from an assessmentpursuant to paragraphs (1) and (2), grants a leasehold or other possessoryinterest in the property to a nonexempt person or entity, the assessment,notwithstanding paragraphs (1) and (2), shall be levied on the leasehold orpossessory interest and shall be payable by the lessee; and

(4)  No other properties or owners shall be exemptfrom the assessment unless the properties or owners are expressly exempted inthe ordinance establishing a district adopted pursuant to this section oramending the rate or method of assessment of an existing district.

(f)  The assessments levied pursuant to theordinance authorizing the creation of special improvement districts, theordinance establishing a district, and this section shall be a lien upon theproperty assessed.  The lien shall have priority over all other liens exceptthe lien of general real property taxes and shall be on a parity with the lienof assessments levied under sections 46-80 and 46-80.1.

(g)  Any board or association established forthe purposes of carrying out the activities described in this section shall notbe deemed a governmental body.  The board and association shall neither bedeemed to be a government department, agency, or a county nor to be performingservices on behalf of a government department, agency, or county. [L 1999, c107, §1; am L 2002, c 40, §2]