(1) Upon receipt of a petition signed by the owners of more than 60% of the area of the property proposed in the petition to be included in a district or in the expansion of a district, a governing body shall establish a district or expand a district as provided in this part.
(2) The boundaries of a district must comply with applicable zoning regulations.
(3) The district may not include areas that are zoned primarily as residential areas.
(4) (a) A district may be composed of noncontiguous areas if the properties in a district have a common purpose of providing overnight stays at lodging facilities.
(b) The boundaries of a district with noncontiguous areas must encompass all properties in the district with the same identified purpose.