This quest is given when you reach level 34, as the Dance Hall becomes unlocked.
You will require 10 neighbours to complete the first part of this quest. At level 34, most players will already have 10 neighbours, and this part of the quest will be immediately completed when the quest appears.
The Dance Hall costs 5,450 Silver Coins. You will need 10 of your neighbours to staff the building for it to be completed.
The cheapest decorations are the Dirt Path and the Stone Path, so you can place 5 of these for 250 Silver coins to complete the third part of the quest.