SID Timeline

While all SIDs generally follow a similar process, each District’s timeline may vary. Some SIDs may exist in perpetuity, while others may operate for 20 to 30 years before being annexed. The process typically includes land acquisition, District formation, installation of improvements, warrant issuance, lot sales and vertical construction, bond issuance, and ultimately the retirement of bond debt or annexation of the SID.

 

Step 1: Land Acquisition (12-36 months)

• Developer identifies and evaluates land for potential development
• Engineer and Developer assess site feasibility and infrastructure requirements
• Municipal Advisor reviews site plans and estimates to determine financial feasibility of the project
• Attorney assists Developer with land acquisition and purchase agreements
• Developer team negotiates subdivision and interlocal agreements with the city or county
• Preliminary and final plats are approved

Step 2: SID Formation (~90 days)

• SID is formally created through district court
• Professional team is engaged (attorney, municipal advisor, engineer, accountant – see Key Players)
• Interlocal agreements are finalized, if applicable

Step 3: Installation of Improvements (12-18 months)

• SID Board adopts resolutions of necessity
• Engineer prepares bid specifications, notices to contractors, and manages the bidding process
• Contracts are awarded to lowest qualified contractors
• Installation of public infrastructure improvements begins

Step 4: Warrant Issuance (1-7 years)

• Occurs concurrently with infrastructure installation
• Special assessments levied on benefited properties
• Annual interest warrants issued

Step 5: Lot Sales and Vertical Construction (2-7 years)

• Lots are marketed and sold to builders or end users
• Construction of residential, multifamily, commercial, and/or industrial improvements occurs
• Property values and tax base begin to grow

Step 6: Bond Issuance (3-7 years)

• Sufficient taxable valuation is established within the District
• Bonds are structured and issued as the tax base grows
• Bond proceeds are used to redeem outstanding warrants and convert to long-term financing

Step 7: Bond Debt Retired or Annexation (20-30 years)

• Bond debt is repaid over time through property tax collections
• SID may be annexed by the city with zoning jurisdiction