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Resolution - 2007 - 17 - Determining A Certain Area Within The City To Be Deteriorated/Preparation Of A Urban Renewal Plan - 06/26/2007 RESOLUTION NO. 07-17 A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF EAGLE, IDAHO DETERMINING A CERTAIN AREA WITHIN THE CITY TO BE A DETERIORATED OR DETERIORATING AREA AS DEFINED BY IDAHO CODE SECTIONS 50-2018(9) AND 50-2903(8); DIRECTING THE URBAN RENEWAL AGENCY OF EAGLE TO COMMENCE AND COMPLETE THE PREPARATION OF AN URBAN RENEWAL PLAN, WHICH PLAN MAY INCLUDE REVENUE ALLOCATION PROVISIONS, FOR ALL OR PART OF THE AREA; AND PROVIDING AN EFFECTIVE DATE. A RESOLUTION IMPLEMENTING THE STATUTORY CRITERIA, MAKING CERTAIN FINDINGS OF FACT, DETERMINING A PORTION OF THE CITY OF EAGLE TO BE A DETERIORATING OR DETERIORATED AREA AS DEFINED BY IDAHO CODE, SECTIONS 50-2018(9) AND 50-2903(8). WHEREAS, on the 10th day of October, 2006, the Council and Mayor of Eagle, Idaho respectively, approved Resolution No. 06-50 thereby creating the Urban Renewal Agency of the City of Eagle ("Agency"), authorizing it to transact business and exercise the powers granted under the authority of the Idaho Urban Renewal Law of 1965, as amended, Chapter 20, Title 50, Idaho Code (hereinafter the "Law"), and the Local Economic Development Act, Chapter 20, Title 50, as amended (hereinafter the "Act"), upon making the findings of necessity required for creating said Urban Renewal Agency; WHEREAS, Resolution No. 06-50 also authorized the Mayor to appoint, with the advice and consent of City Council, a number of Commissioners of the Urban Renewal Agency as allowed by the Law; WHEREAS, Resolution No. 06-50 approved that certain eligibility report entitled the East State Street Area Urban Renewal Eligibility Report ("East State Eligibility Report"), dated October 4, 2006, prepared by Harlan W. Mann, Real Estate Consultant ("Consultant") which examined an area bounded generally by S. Parkinson Street on the east, Highway 44 on the south, S. Edgewood Road, East State Street, and Academy on the west, and on the north by E. Bishop Way and East Syringa Street for the purpose of determining whether such area is a deteriorating area and deteriorated area as defined by Idaho Code, Sections 50-2018(9) and 50- 2903(8); WHEREAS, Resolution No. 06-54 approved that certain eligibility report entitled the Downtown Area Urban Renewal Eligibility Report ("Downtown Eligibility Report"), dated November 20, 2006, prepared by Harlan W. Mann, Real Estate Consultant ("Consultant") which Page I of3 K:\COUNCILIResolutionsldraft resolutionslResolution 07-17 Urban Renewal DIStrict designation.doc examined an area that included property on both sides of State Street from Cobblestone on the west to Academy Avenue on the east. At one point between 2nd Street and East Plaza Drive, the area extended southwest to State Highway 44, for the purpose of determining whether such area is a deteriorating area and deteriorated area as defined by Idaho Code, Sections 50-2018(9) and 50-2903(8) WHEREAS, it has become apparent that additional property within the City may be deteriorating or deteriorated and should be examined as to whether such an area is eligible for urban renewal planning purposes; WHEREAS, the Agency, on April 4, 2007, requested Consultant to review an additional area adjacent to the areas covered in the East State Eligibility Report and the Downtown Eligibility Report and to prepare an additional eligibility report for the Southeast Highway 44 area; WHEREAS, Consultant has reviewed the additional area and submitted his Southeast Highway 44 Area Urban Renewal Eligibility Report (the "Southeast Highway 44 Area Eligibility Report), dated April 27, 2007; WHEREAS, the Southeast Highway 44 Area Eligibility Report, has been submitted to the Agency Board, a copy of which is attached hereto as Exhibit I; WHEREAS, the Agency, on June 6, 2007, by way of Resolution No. 07-01, accepted the Southeast Highway 44 Area Eligibility Report, and authorized the Agency Chair and Administrator to submit the Resolution and Eligibility Report to the City Council for its consideration; WHEREAS, pursuant to Idaho Code Section 50-2008, an urban renewal project may not be planned or initiated unless the local governing body has, by resolution, determined such area to be a deteriorated area or deteriorating area, or combination thereof, and designated such area as appropriate for an urban renewal project; WHEREAS, Idaho Code Section 50-2906 also requires that in order to adopt an urban renewal plan containing a revenue allocation financing provision, the local governing body must make a finding or determination that the area included in such plan is a deteriorated area or deteriorating area; WHEREAS, it is desirable and in the best public interest that the Agency prepare an urban renewal plan for the areas identified in the East State Eligibility Report, the Downtown Area Eligibility Report and the Southeast Highway 44 Area Eligibility Report located in the City of Eagle, County of Ada, State of Idaho. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF EAGLE AS FOLLOWS: Page 2 of3 K:ICOUNCILIResolutions\draft resolutionslResolution 07-17 Urban Renewal District designation.doc Section I. That there are one or more areas within the City of Eagle which are deteriorating or deteriorated areas as defined by Idaho Code, Sections 50-2018(9) and 50-2903(8). Section 2. That one such area is an area which includes property generally bounded by State Street and Highway 44 on the north, the Idaho Concrete property at State and Highway 44 on the east, the Boise River on the south, and the edge just east of the Lonesome Dove parcel on the west at East Riverside Drive and Highway 44 (the "Southeast Highway 44 Area"). Section 3. That the rehabilitation, conservation, and redevelopment, or a combination thereof, of such area is necessary in the interest of the public health, safety, and welfare of the residents of the City. Section 4. Based on the April 27, 2007, Southeast Highway 44 Area Urban Renewal Eligibility Report of the Area, the City Council makes the findings that: a. The area is determined to be a deteriorating area as defined by Idaho Code, Section 50-2018(9) and a deteriorated area as defined by Idaho Code, Section 50-2903(8); b. The area is determined to be appropriate for an urban renewal project. Section 5. That the City Council hereby directs the Agency to commence the planning process to prepare an urban renewal plan for the areas determined to be appropriate for an urban renewal project. Section 6. That this Resolution shall be in full force and effect immediately upon its adoption and approval. ADOPTED AND APPROVED This ~~~.Pi.. day of June 2007. ........ .... ..- "'A . .' ~ Pl.' .,o;J. 0.........10' ..... (' ~~~' O~A7';.... \ ,~....1 . i< :. ..., OT .. tJ .' _: : ., "- . "". . . ~"'Y.:': 0 : . "S ~~":r:i 'l. ~ro~ ~ "r .' "'''''''''~1' '" -;'E O~ ~....., '."'........".. ATTEST: J. ~ o+<. )t, ~ Sharon K. Bergmann, Cler Page 3 of3 K:\COUNCIL\Resolutions\draft resolutionslResolution 07-17 Urban Renewal DIStrict designation.doc SOUTHEAST HIGHWAY 44 AREA URBAN RENEWAL ELIGIBILITY REPORT PREPARED FOR THE EAGLE URBAN RENEWAL AGENCY BY HARLAN W. MANN CONSULTANT April 27, 2007 H:VUDYlWPDATAlEaglelSoutheast Highway 44 Eligibility Report.doc 04-27-2007 SOUTHEAST HIGHWAY 44 AREA URBAN RENEWAL ELIGIBILITY REPORT BACKGROUND At its meeting of April 4, 2007, the Eagle Urban Renewal Agency ("Agency") authorized preparation of the subject report. This report will provide the technical support for the first step in planning an urban renewal project that includes the southeast Highway 44 area in Eagle, Idaho ("Southeast Highway 44 Area") and two other areas, East State Street and Downtown Eagle. The study area is generally bounded by State Street and Highway 44 on the north, the Idaho Concrete property at State and Highway 44 on the east, the Boise River on the south, and the edge just east of the Lonesome Dove parcel on the west at East Riverside Drive and Highway 44. Idaho Code Section 50-2008(a) states: An urban renewal project for an urban renewal area shall not be planned or initiated unless the local governing body has, by resolution, determined such area to be a deteriorated area or a deteriorating area or a combination thereof and designated such area as appropriate for an urban renewal project. Hence, Step One in planning a renewal project for this area is a resolution by the Eagle City Council ("City Council") making certain findings about the area. This resolution would also authorize the Agency to prepare an urban renewal plan for the area or to include the area as part of an urban renewal plan that would also include the East State Street and Downtown Areas. The attached definitions of deteriorating area and urban renewal project are very pertinent to this step and are the focus of this report. Step Two in the renewal planning process is action by the Agency to prepare an urban renewal plan and recommend its approval to the City Council. The City Council initiates Step Three by referring the plan to the Planning and Zoning Commission and setting a public hearing on the plan. Step Three is completed by a Planning and SOUTHEAST HIGHWAY 44 AREA URBAN RENEWAL ELIGIBILITY REPORT PREPARED FOR EAGLE URBAN RENEWAL AGENCY - I Zoning Commission finding that the urban renewal plan conforms to the City's Comprehensive Plan. Step Four is the adoption of a City Council ordinance approving the plan, after a public hearing. DISCUSSION This report focuses on whether the Southeast Highway 44 Area, as previously described and as outlined on the attached map, qualifies as a deteriorating area pursuant to Idaho Code Section 50-2018(9) and as a deteriorated area pursuant to Section 50-2903(8)(b) under virtually identical definitions. A copy of this joint definition is attached. The first statutory reference is from the basic urban renewal statute, while the second comes from the revenue allocation law. Most of the area, except for a significant portion of the Idaho Concrete property on the east, minor portions of the middle parcel, and the Ancona Business Park, is open land, so the area must qualify under a specific portion ofIdaho Code Section- 50-20 18(9) and a different statutory provision, Idaho Code Section 50-2903(8)(c) which reads as follows: (c) Any area which is predominately open and which because of obsolete platting, diversity of ownership, deterioration of structures or improvements, or otherwise, results in economic underdevelopment of the area or substantially impairs or arrests the sound growth of a municipality. The provisions of section 50- 2008( d), Idaho Code, shall apply to open areas. Finally, the report will discuss why the area is appropriate for an urban renewal project. A. Present Conditions The attached definition of deteriorating area and deteriorated area [Idaho Code ~~ 50- 2018(9) and 50-2903(8)(b)] lists ten different conditions that may be present in such an area, with the tenth being the catch-all "any combination of such factors." The presence of these conditions was documented by a field trip on April 20, 2007, contacts with various City officials, and assessor SOUTHEAST HIGHWAY 44 AREA URBAN RENEWAL ELIGIBILITY REPORT PREPARED FOR EAGLE URBAN RENEWAL AGENCY - 2 file information. Then the area and its public infrastructure were evaluated, and the numbers/designations that correspond to the applicable characteristics in the definition were placed at the appropriate locations on the attached map. This is the same process that was followed in the reports of October 4, 2006, and November 20, 2006, eligibility reports for the East State Street and Downtown urban renewal areas. B. Open Land Area The definition of Section 50-2903(8)(c) cited above lists several of the same characteristics as Sections 50-2018(9) and 50-2903(8)(b) under the same or similar descriptions. "Diversity of ownership" is the same, while "obsolete platting" appears to be equivalent to "faulty lot layout in relation to size, adequacy, accessibility, or usefulness." "Deterioration of structures or improvements" is apparently a combination of "a substantial number of deteriorated or deteriorating structures" and "deterioration of site or other improvements." The final term, "or otherwise," at least implies that a predominately open area shares some of the same characteristics as the previous definition of deteriorated area, Idaho Code Section 50-2903(8)(b). There is also an additional qualification that, "The provisions of Section 50-2008( d), Idaho Code, shall apply to open areas." Section 50-2008(d) lists the findings that the City Council must make in the ordinance approving an urban renewal plan. In addition, this section lists the special findings that the council must make "if the urban renewal area consists of an area of open land to be acquired by the urban renewal agency." There is one set of findings if the area of open land is to be developed for residential uses and a separate set of findings if the land is to be developed for nomesidential uses. Basically, such open land areas may be acquired by the Agency and developed for nonresidential uses if such acquisition is needed to solve various problems associated with the land or the public infrastructure that have retarded its development. These problems include defective or usual conditions of title, diversity of ownership, tax delinquency, improper subdivisions, SOUTHEAST HIGHWAY 44 AREA URBAN RENEWAL ELIGIBILITY REPORT PREPARED FOR EAGLE URBAN RENEWAL AGENCY - 3 outmoded street patterns, deterioration of site, and faulty lot layout, all of which are included in one form or another in the Section 50-2903(8)(b) definition of deteriorated area. The problems that are listed only in Section 50-2008(d)(4)(2) (the open land section) include economic disuse, unsuitable topography, and "the need for the correlation of the area with other areas of a municipality by streets and modern traffic requirements, or any combination of such factors or other conditions which retard development of the area." The conclusion of this discussion about open land areas is that such areas qualify if any of the standard 50-2018(9) and 50-2903(8)(b) characteristics apply. But such areas also qualify if any of the problems listed only in 50-2008(d)(4)(2) apply. Clearly, lack of water and sewer facilities, a partially completed street system, and lack of fire protection facilities are all conditions which retard development of the area. The report text that follows below discusses each of the applicable characteristics of a deteriorated area, as defined by Section 50-2903(8)(b). Several of these characteristics, including diversity of ownership and predominance of defective or inadequate street layout, have exact or approximate counterparts listed under Section 50-2008(d)(4)(2), so their associated numbers, 6 and 2, may be used interchangeably. Other numbers, such as 4 (insanitary or unsafe conditions) and 9 (the existence of conditions which endanger life or property by fire or other causes), fit the broader characteristic of "any combination of such factors or other conditions which retard development of the area." As discussed above, the lack of public infrastructure in the predominately open areas has been a significant factor in retarding development in these areas. Open land areas are designated with the words "Open Land." In addition, lack of public infrastructure in open land areas is designated by the words "Lacks Public Infrastructure." C. DeterioratingfDeteriorated Area Characteristics The following is a listing of conditions found in the area by their corresponding numbers in the definition and a brief explanation of that condition and how it was evaluated and identified: SOUTHEAST HIGHWAY 44 AREA URBAN RENEWAL ELIGIBILITY REPORT PREPARED FOR EAGLE URBAN RENEWAL AGENCY - 4 1. (1) A substantial number of deteriorated or deteriorating structures. There are only a few structures in the area. These include several buildings on the Idaho Concrete property, a small building on the middle parcel, the Family Table building, and two buildings at Ancona Business Park. These do not represent a substantial number of structures. 2. (2) Predominance of defective or inadequate street layout. Ancona Avenue and East Riverside Drive are the streets that serve a portion ofthe area now. Aside from these two streets, there is no internal street system in the area connecting the parcels to these existing streets, and this results in an inadequate street layout. 3. (3) Faulty lot layout in relation to size. adequacy. accessibility. or usefulness. Except for one small subdivision, the Ancona Business Park, the area has never been subdivided. A preliminary plat has been prepared for the large parcel at the western end of the area. The two large ownerships on the eastern end of the area are 77.24 and 80.94 acres, respectively, and they have never been subdivided. 4. (4) Insanitary or unsafe conditions. There are several conditions existing within the proposed renewal area that apply to this characteristic. Typical insanitary conditions include excessive amounts of junk, trash, and weeds in violation of City sanitation codes. Another insanitary condition occurs in areas that lack sanitary sewers or where the sanitary sewer system has insufficient capacity. Basically, the area south of Riverside Drive and Highway 44 has no sanitary sewer system. The Eagle Sewer District plans to serve the area west of Ancona with a new 8-inch main and a gravity system. The area east of Ancona will require some type oflift system. Therefore, when "4S" appears on the map, it indicates problems with the sanitary sewer system, in this case, lack of sewer mains. There are also some unsafe conditions in the area. Most are found with the street system and include lack of sidewalks, curbs, and gutters; narrow, inadequate streets; and lack of street lights. A "4ST" on the map indicates unsafe conditions with the street system. This applies to SOUTHEAST HIGHWAY 44 AREA URBAN RENEWAL ELIGIBILITY REPORT PREPARED FOR EAGLE URBAN RENEWAL AGENCY - 5 Ancona, which lacks sidewalks on the east side, Highway 44 at Ancona, which lacks deceleration and acceleration lanes for traffic entering or exiting Ancona, and the south side of Highway 44 because of uncontrolled access from the two large parcels at the eastern end of the area. 5. (5) Deterioration of site and other improvements. Site improvements include parking lots, fences, and landscaping areas, basically things other than structures that make up a developed property. The term "other improvements" is the place where public improvements such as streets, sidewalks, curbs, gutters, bridges, storm drains, parks, water mains, sanitary sewers, and public facilities such as swimming pools and public buildings are included. This characteristic was not found in the area. 6. (6) Diversity of ownership. Typically this characteristic is present when an area that needs to be redeveloped because of rundown buildings is divided into a number of different ownerships. It could also occur where existing businesses are hindered in expanding because of the number of adjacent property ownerships. Multiple ownerships are more difficult for developers to assemble. This characteristic does not apply to this area because there are only fourteen different ownerships for the property in the area that totals 221 acres. 7. (7) Tax and special assessment delinquency exceeding the fair value of the land. This characteristic does not apply to the area. 8. (S) Defective and unusual conditions of title. These conditions have not been found in the area. 9. (9) The existence of conditions which endanger life or property by fire and other causes. The primary focus of this characteristic is inadequate fire protection facilities, particularly water mains and fire hydrants for projected new development. The hydrant problem is present throughout the area. The Eagle Water Company reported that it has a well on the second large parcel from the eastern edge of the area, but it will need another well on the Lonesome Dove property outside of the area, as well as connecting mains, to provide adequate water service. SOUTHEAST HIGHWAY 44 AREA URBAN RENEWAL ELIGIBILITY REPORT PREPARED FOR EAGLE URBAN RENEWAL AGENCY - 6 A Division of Environmental Quality moratorium is currently preventing the Eagle Water Company from adding any new customers. When a "9F" appears on the map it indicates a lack of adequate fire protection facilities. 10. (10) Any combination of such factors. This number is placed on all areas where two or more of the other characteristics are present. D. Effects of Present Conditions 1. (a) Results in economic underdevelopment of the area. Field review and aerial photographs show the current underdeveloped status of the area. 2. (b) Substantially impairs or arrests the sound growth of a municipality. The City's Comprehensive Plan calls for mixed use in this area; however, the current condition discourages such use because of the concrete plants on the two large parcels at the eastern end and the lack of public infrastructure. So far, the area has been bypassed, but a new development has been planned for the western end of the area. The resulting uneven growth adversely affects the sound growth of the City because it places additional burdens on the City's capital improvement program in attempting to keep up with the unmet infrastructure needs of this area, particularly the greenbelt system along the Boise River and the planned park adjacent to the river in a site with three ponds south of Ancona. 3. (c) Retards the provision of housing accommodations or (d) constitutes an economic or socialliabilitv. In its current condition, the property is producing minimal property taxes when compared to other areas in the City. In addition, the property has very limited public infrastructure. Hence, such an area tends to become an economic liability for the City. 4. (e) And is a menace to the public health. safety. morals. or welfare in its present condition or use. The previous discussion has established that this area has had very slow growth and, as a result, has become a modest economic liability. In addition, the nonexistent fire protection facilities and the street and highway problems create some unsafe conditions in the area. SOUTHEAST HIGHWAY 44 AREA URBAN RENEWAL ELIGIBILITY REPORT PREPARED FOR EAGLE URBAN RENEWAL AGENCY - 7 Accordingly, these conditions represent a menace or threat to the public welfare or prosperity and safety of the community. E. Appropriateness of the Area for an Urban Renewal Proiect The second part of the City Council's determination is the policy decision of whether or not the area is appropriate for an urban renewal project. Note that part of the definition of an urban renewal project' includes, "undertakings and activities of a municipality in an urban renewal area for the elimination of deteriorated and deteriorating areas." This report has provided evidence that the Southeast Highway 44 Area is a deteriorating area because of the presence of various conditions, most of which are related to the public infrastructure. The public infrastructure is inadequate and is dependent upon developer contributions. Such contributions may not happen at the right times and places to allow an orderly west to east development pattern. Developers often bypass such areas because of the higher costs. This leaves the City with the problems of trying to assist new development in such areas and having limited resources to devote to such an effort. Preparation and approval of an urban renewal plan, including a revenue allocation financing provision, would give the City additional resources to assist developers in solving the public infrastructure problems in this area and to achieve the mixed use development as outlined by the Comprehensive Plan. In effect, property taxes generated by new development within the area can be used by the Urban Renewal Agency to finance the needed public improvements. Finally, the new developments would also generate additional jobs that would, in turn, benefit residents of the community. SOUTHEAST HIGHWAY 44 AREA URBAN RENEWAL ELIGIBILITY REPORT PREPARED FOR EAGLE URBAN RENEWAL AGENCY - 8 CONCLUSION This report concludes that the Southeast Highway 44 Area described in this report is a deteriorating and deteriorated area and, as such, is appropriate for an urban renewal project. Attachments SOUTHEAST HIGHWAY 44 AREA URBAN RENEWAL ELIGIBILITY REPORT PREPARED FOR EAGLE URBAN RENEWAL AGENCY - 9 DEFINITION OF URBAN RENEWAL PROJECT, IDAHO CODE & 50-2018(10) "Urban renewal project" may include undertakings and activities of a municipality in an urban renewal area for the elimination of deteriorated or deteriorating areas and for the prevention of the development or spread of slums and blight, and may involve slum clearance and redevelopment in an urban renewal area, or rehabilitation or conservation in an urban renewal area, or any combination or part thereof in accordance with an urban renewal plan. Such undertakings and activities may include: (a) acquisition of a deteriorated area or a deteriorating area or portion thereof; (b) demolition and removal of buildings and improvements; (c) installation, construction, or reconstruction of streets, utilities, parks, playgrounds, off-street parking facilities, public facilities or buildings and other improvements necessary for carrying out in the urban renewal area the urban renewal objectives of this act in accordance with the urban renewal plan; (d) disposition of any property acquired in the urban renewal area (including sale, initial leasing or retention by the agency itself) at its fair value for uses in accordance with the urban renewal plan except for disposition of property to another public body; (e) carrying out plans for a program of voluntary or compulsory repair and rehabilitation of building or other improvements in accordance with the urban renewal plan; (f) acquisition of real property in the urban renewal area which, under the urban renewal plan, is to be repaired or rehabilitated for dwelling use or related facilities, repair or rehabilitation of the structures for guidance purposes, and resale of the property; (g) acquisition of any other real property in the urban renewal area where necessary to eliminate unhealthful, insanitary or unsafe conditions, lessen density, eliminate obsolete or other uses detrimental to the public welfare, or otherwise to remove or to prevent the spread of blight or deterioration, or to provide land for needed public facilities; (h) lending or investing federal funds; and (i) construction offoundations, platforms and other like structural forms. DEFINITION OF DETERIORATING AREA. IDAHO CODE & 50-201S(0) AND DETERIORATED AREA. IDAHO CODE & 50-2903(S)(b) A deteriorating or deteriorated area is any area which by reason of the presence of (I) a substantial number of deteriorated or deteriorating structures; (2) predominance of defective or inadequate street layout; (3) faulty lot layout in relation to size, adequacy, accessibility, or usefulness; (4) insanitary or unsafe conditions; (5) deterioration of site or other improvements; (6) diversity of ownership; (7) tax or special assessment delinquency exceeding the fair value of the land; (8) defective or unusual conditions of title; (9) the existence of conditions which endanger life or property by fire and other causes; or (10) any combination of such factors, (a) (results in economic underdevelopment of the area); l(b) substantially impairs or arrests the sound growth of a municipality; ( c) retards the provision of housing accommodations; or (d) constitutes an economic or social liability; and (e) is a menace to the public health, safety, morals, or welfare in its present condition or use; provided, that if such deteriorating area consists of open land the conditions contained in the proviso in Idaho Code Section 50-2008(d) shall apply.2 Provided, however, this definition shall not apply to any agricultural operation, as defined in Section 22-4502(1), Idaho Code, absent the consent of the owner of the agricultural operation, except for an agricultural operation that has not been used for three (3) consecutive years.2 IThis appears only in the revenue allocation statute. 2This appears only in the urban renewal statute. Idaho Code I 50-2008( d) (d) Following such hearing, the local governing body may approve an urban renewal project and the plan therefor if it finds that (1) a feasible method exists for the location of families who will be displaced from the urban renewal area in decent, safe and sanitary dwelling accommodations within their means and without undue hardship to such families; (2) the urban renewal plan conforms to the general plan of the municipality as a whole; (3) the urban renewal plan gives due consideration to the provision of adequate park and recreational areas and facilities that may be desirable for neighborhood improvement, with special consideration for the health, safety and welfare of children residing in the general vicinity of the site covered by the plan; and (4) the urban renewal plan will afford maximum opportunity, consistent with the sound needs of the municipality as a whole, for the rehabilitation or redevelopment of the urban renewal area by private enterprise: Provided, that if the urban renewal area consists of an area of open land to be acquired by the urban renewal agency, such area shall not be so acquired unless (I) it is to be developed for residential uses, the local governing body shall determine that a shortage of housing of sound standards and design which is decent, safe and sanitary exists in the municipality; that the need for housing accommodations has been or will be increased as a result of the clearance of slums in other areas; that the conditions of blight in the area and the shortage of decent, safe and sanitary housing cause or contribute to an increase in and spread of disease and crime and constitute a menace to the public health, safety, morals, or welfare; and that the acquisition of the area for residential uses is an integral part of and essential to the program of the municipality, or (2) if it is to be developed for nonresidential uses, the local governing body shall determine that such nonresidential uses are necessary and appropriate to facilitate the proper growth and development of the community in accordance with sound planning standards and local community objectives, which acquisition may require the exercise of governmental action, as provided in this act, because of defective or unusual conditions of title, diversity of ownership, tax delinquency, improper subdivisions, outmoded street patterns, deterioration of site, economic disuse, unsuitable topography or faulty lot layouts, the need for the correlation of the area with other areas of a municipality by streets and modern traffic requirements, or any combination of such factors or other conditions which retard development of the area. 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