Iowa Code § 403.4: Resolution of necessity.

A municipality shall not exercise the authority conferred upon municipalities by this chapter until after its local governing body has adopted a resolution finding that:

1. One or more slum, blighted or economic development areas exist in the municipality.

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