A city that wants to create a business improvement district needs to

The correct answer is "use home rule to pass an ordinance."

To create a BID there are 3 steps. First of all, some number of businesses in the area petition the local government to create the BID. Then, the local government regulates if a majority of businesses want the BID. Finally, the local government ratifies legislation creating the BID. Prior to this occurring, state legislatures need to grant local units the authority to create BIDs. This first local petition needs to be signed by the owners of at least 60% of the real property and at least 51% of the municipal taxpayers. It must include boundaries, implementation plan and budget.

A city that wants to create a buisness improvement district needs to petition the state for permission.