Section 504. Site designation

An area shall be designated by the governing
  body, or by the commission where so authorized to act by  the  governing
  body,  on  its own initiative or on petition of the owners in fee of not
  less than fifty-one per cent of the land (excluding publicly owned land)
  or upon recommendation of the agency, upon a finding that such  area  is
  appropriate for urban renewal as defined in subdivision three of section
  five  hundred  two of this article.  Such designation may be accompanied
  by a recommendation of the commission as to the  predominant  reuse  and
  such  other planning criteria as it may deem appropriate for the general
  renewal of the area.