A local unit of government that wishes to apply for a grant shall prepare a waterfront redevelopment plan that provides for the improvement of the waterfront. The waterfront redevelopment plan, at a minimum, shall do both of the following:

    (a) Clearly designate the geographic area included within the waterfront planning area.

    (b) Identify the economic impact on the improved area, the surrounding neighborhood, and the region in which the waterfront planning area is located.