37-335.02. Off-site improvement of urban lands

A. The governing body of an incorporated city or town or the board of directors of a county improvement district or a community facilities district pursuant to title 48, chapter 4, article 6 may submit to the commissioner for approval an improvement plan to be carried out by the city, town or district for some or all of the urban lands within its corporate or district boundaries. The plan shall be submitted before any assessment has been levied for construction of off-site improvements which will be on or adjacent to and benefit the urban land. The plan may provide for the imposition of special assessments only against the leasehold interest of the lessee or the interest in the certificate of purchase of the purchaser of urban lands which will be subject to sale or long-term lease pursuant to section 37-281.02 or other law. The plan shall include the following:

1. A description of the work proposed.

2. An estimate of the cost of such work and the costs to be imposed against the leasehold interest of the lessee or the interest in the certificate of purchase of the purchaser of urban land within the area of the plan.

3. A map and legal description of the area showing the urban lands benefited by the work proposed.

4. A method of charging the cost to any long-term lessee or certificate of purchase holder of the urban lands benefited.

5. A schedule or alternative schedules for payment of the costs so charged by future holders of certificates of purchase or lease on such urban land, including the manner in which charges under such schedules will be held in abeyance for urban lands not subject to a certificate of purchase or lease. The schedule for payments shall state the maximum assessment amount, excluding interest, which may be imposed against the leasehold interest of the lessee or the interest in the certificate of purchase of the purchaser of urban land involved in the plan.

6. The maximum interest rate to be charged on the unpaid charges, including the maximum rate at which interest, if any, will accrue for urban lands benefited but not subject to a certificate of purchase or lease.

7. Information showing that the urban land involved in the plan will be benefited in an amount equal to or greater than the proposed maximum assessment amount.

8. Such other terms as the governing body deems necessary or appropriate.

B. No plan may include urban land which is already subject to a long-term lease or certificate of purchase nor may any assessment be imposed against the leasehold interest of the lessee or the interest in the certificate of purchase of the purchaser of such land unless the lessee or certificate of purchase holder agrees to such inclusion and assessment.

C. The commissioner shall cooperate if requested by the governing body of the city, town or county improvement district in the preparation and revision of the improvement plan. The commissioner may hold such public hearings as the commissioner determines are necessary and may approve the plan if it is in compliance with the development or secondary plan for the urban lands affected.

D. If the commissioner approves the improvement plan or any modification of the plan, he shall enter an order to that effect in his official records and cause a copy to be served on the governing body requesting approval, recorded with the county recorder of the county in which the land is located and filed with the secretary of state. Fees shall not be charged for recording or filing.