Sec. 6. A proposed conservancy district may be established as a reservoir conservancy district under this chapter if:
(1) the proposed conservancy district will be established for the purposes of:
(A) developing forests, wildlife areas, parks, and recreational facilities if feasible in connection with beneficial water management, as provided in IC 14-33-1-1(a)(6);
(B) the operation, maintenance, and improvement of:
(i) a work of improvement for water based recreational purposes; or
(ii) another work of improvement that could have been built for any other purpose authorized by IC 14-33-1-1;
as provided in IC 14-33-1-1(a)(9); or
(C) both of the purposes set forth in clauses (A) and (B);
(2) the boundaries of the proposed conservancy district will encompass part or all of a reservoir located partly within a consolidated city; and
(3) at least twenty-five percent (25%) of the surface of the reservoir located within the boundaries of the proposed conservancy district is owned by a utility governed by a board of directors for utilities under IC 8-1-11.1-3.