18-3539.

Merger; procedure; effect.

(1) Whenever a majority of the respective boards of trustees or the administrators of two community improvement districts organized under the Community Improvement District Act, organized within the same city or village shall desire that one of the community improvement districts shall wholly merge into the other community improvement district, the trustees or administrators shall first propose a joint resolution declaring the advisability of such merger and setting out verbatim the terms and conditions thereof and specifying which community improvement district shall be the surviving community improvement district, and also setting out the time and place when the boards of trustees or administrators of the two community improvement districts shall meet to consider the adoption of such resolution. Notice of the time and place when the two community improvement districts shall meet shall be delivered to the city or village clerk and the county clerk, election commissioner, and register of deeds of each county or counties in which the community improvement district is located at least forty-five days prior to such date.

(2) The trustees or the administrators shall mail a copy of such proposed joint resolution to the city or village clerk within five days after the date of first publication of the published notice described in this section. Notice of the time and place when such resolution shall be set for consideration shall be published the same day each week for two consecutive weeks in a newspaper of general circulation published in the city or village where the community improvement districts were organized, which publication shall contain the entire wording of the proposed resolution. The last publication shall be not less than five days nor more than two weeks prior to the time set for hearing on objections to the passage of the resolution, at which hearing the owners of property within either of the community improvement districts or the holders of any unpaid bonds, warrants, or other obligations of either community improvement district, or any city or village if any part of such community improvement district or community improvement districts lies within the area of its zoning jurisdiction, may appear and make objections to the proposed resolution.

(3) If (a) a petition opposing the proposed resolution of merger is signed by (i) property owners representing a majority of the area of real estate within either community improvement district or (ii) any holder of any unpaid bonds, warrants, or other obligations of either community improvement district or (b) a resolution is adopted by the city council or village board of trustees opposing such resolution of merger and if any such petition or resolution is presented to the boards of trustees or administrators on or prior to the hearing date, then the boards of trustees or administrators shall not adopt such resolution.

(4) If a written petition or resolution opposing the proposed resolution of merger is not filed, then a majority of the boards of trustees or administrators of both community improvement districts may pass the resolution and thereby adopt the proposed merger. Upon adoption of the proposed resolution by the boards of trustees or administrators of both community improvement districts, the clerk of the community improvement district or the administrator from both community improvement districts shall prepare and file a certified copy of such resolution of merger in the office of the city or village clerk where the original articles of association of the community improvement districts were filed and in the office of the Secretary of State, and thereupon the surviving community improvement district shall succeed to and become vested with full title to all the property and property rights of every kind, contracts, obligations, and choses in action of every kind held by or belonging to the nonsurviving community improvement district, and the surviving community improvement district shall also be liable for and recognize, assume, and carry out all valid contracts and obligations of the nonsurviving community improvement district including all outstanding warrants, bonds, or other indebtedness. All taxes, assessments, and demands of every kind due or owing to the nonsurviving community improvement district shall be paid to and collected by the surviving community improvement district.

(5) Upon the filing of the certified copies of the resolution of merger as provided in this section, the corporate existence of the nonsurviving community improvement district shall thereupon terminate and the boundaries of the surviving community improvement district shall be extended to include all the territory within the boundaries of the nonsurviving community improvement district. A majority of the board of trustees or the administrator of the surviving community improvement district shall have power, from time to time, to give binding directions in writing to the county treasurer of the county in which the surviving community improvement district is located, directing that the treasurer segregate the special assessment funds of the two community improvement districts or directing the segregation of the other assets of the two community improvement districts or directing the method and priority of payment of registered warrants of the two community improvement districts, or giving directions to the county treasurer as to other problems of fiscal management of the affairs of the two community improvement districts involved in the merger.