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My friend gave me her copy of AC:NL, since she doesn't play anymore, and I was just wondering, in order to start cycling villagers, do I need to get the mayoral permit and stuff? (Get my ratings up to 100%, all that jazz)?
I believe you do need to get your permit, 2nd house upgrade, and access to the island before villagers can move out. They can keep moving in until there is 9 of them though, but until you finish those prerequisites you can't get anyone out.
My villagers in my cycle town didn't begin moving out until I had my permit approved and my tent upgraded to a house (just one upgrade), and I time traveled a lot of days before finishing all of that. Years, even.
I can't confirm it to be absolute truth, just telling you what I know.
I have created cycling towns. The only requirement is that you have 9 villagers, and have talked through the beginning dialogue (buying clothes, how to save, etc.)