A municipality may not exercise any of the powers conferred upon municipalities by this chapter until its governing body adopts a resolution finding that:

1. One or more slum or blighted areas or industrial or commercial properties exist in the municipality; and

2. The development, rehabilitation, conservation, or redevelopment, or a combination thereof, of the area or properties is necessary in the interest of the public economy, health, safety, morals, or welfare of the residents of the municipality.