(1) The office may create an economic development zone in the state if the following requirements are satisfied:
(a) the area is located within a commercial or industrial zone;
(b) the local government entity having jurisdiction over the area supports the creation of the development zone; and
(c) the local government entity described in Subsection (1)(b) provides or commits to provide local incentives within the area in accordance with the local government entity's approved incentive policy.
(2) A local government entity may, for the purpose of incentivizing new commercial projects within the local government entity's boundaries, create an economic development zone if the following requirements are satisfied:
(a) the area is located:
(i) within a commercial or industrial zone; and
(ii) within the geographic boundaries of the local government entity;
(b) the local government entity adopts a long-term plan that addresses the following planning elements within the area:
(i) transportation and infrastructure;
(ii) workforce development; and
(iii) housing needs; and
(c) the office approves the local government entity's request to create the development zone.