Definition
A Local Improvement District is a special public improvement area created under State of Oregon statutes. These statutes allow for public financing of public improvement projects that benefit private property. The eligible category of public improvements is quite broad and includes most major types of construction. Typical use of an LID is to install sanitary sewers, storm drainage, water lines, streets and sidewalks.
Requirements
In order to form an LID, a minimum of 50% of the property owners fronting on, or benefiting from, the proposed improvement must petition the city to construct the project. The petition must specify the type of improvement desired.
For a property to be included in the LID, it must receive some benefit from the project. For example, the benefits of a street improvement project generally accrue to just those properties abutting the street, while the benefits of a sanitary sewer trunk line will accrue to the entire area that it serves, not just to abutting properties.
The Supporting Documents on this page provide more detail on the LID methodology and process and an example of the actual petition.