386.7 - SELF-LIQUIDATING IMPROVEMENTS.

        386.7  SELF-LIQUIDATING IMPROVEMENTS.         When a city proposes to construct a self-liquidating improvement,      the cost of which is to be paid or financed under the provisions of      this chapter, it must do so in accordance with the provisions of this      section as follows:         1.  Section 386.6, subsections 1 to 5 are applicable to a      self-liquidating improvement to the same extent as they are      applicable to an improvement and the proceedings initiating a      self-liquidating improvement shall be governed thereby.         2.  Before the council may order the construction of a      self-liquidating improvement, and after hearing thereon, it must find      that the self-liquidating improvement and the leasing of a part or      the whole of it to any person or governmental body will further the      corporate purposes of the city and will:         a.  Aid in the commercial development of the district.         b.  Further the interests of the district; or         c.  Not substantially reduce the city's property tax base.         3.  If the council orders the construction of the self-liquidating      improvement, contracts for it shall be let in accordance with chapter      26.         4.  The adoption of a resolution ordering the construction of a      self-liquidating improvement is a legislative determination that the      proposed self-liquidating improvement and the leasing of a part or      the whole of it to any person or governmental body will further the      corporate purposes of the city and will:         a.  Aid in the commercial development of the district.         b.  Further the interests of the district; or         c.  Not substantially reduce the city's property tax base.         5.  A city may lease any or all of a self-liquidating improvement      to any person or governmental body.         6.  A city may issue revenue bonds payable from the income and      receipts derived from the self-liquidated improvement.  Chapter 384,      division V applies to revenue bonds for self-liquidating improvements      and the term "city enterprise" as used in that division shall be      deemed to include self-liquidating improvements authorized by this      chapter.         7.  Any resident or property owner of the city may appeal a      decision of the council to order the construction of a      self-liquidating improvement or to lease any or all of a      self-liquidating improvement to the district court of the county in      which any part of the district is located, within thirty days after      the adoption of the resolution ordering the self-liquidating      improvement, but the action of the council is final and conclusive      unless the court finds that the council exceeded its authority.         8.  No action may be brought questioning the regularity of the      proceedings pertaining to the ordering of the construction of a      self-liquidating improvement after thirty days from the date of      adoption of the resolution ordering construction of the      self-liquidating improvement.  No action may be brought questioning      the regularity of the proceedings pertaining to the leasing of any or      all of a self-liquidating improvement after thirty days from the date      of the adoption of a resolution approving the proposed lease.  In      addition to the limitation contained in section 384.92, no action may      be brought which questions the legality of revenue bonds or the power      of the city to issue revenue bonds or the effectiveness of any      proceedings relating to the authorization and issuance of revenue      bonds relating to a self-liquidating improvement after thirty days      from the time the bonds are ordered issued by the city.         9.  The procedural steps contained in this section may be combined      with the procedural steps for the petitioning and creation of the      district.  
         Section History: Early Form
         [C77, 79, 81, § 386.7] 
         Section History: Recent Form
         89 Acts, ch 83, §50; 2007 Acts, ch 144, §20