(B) A cultural district:

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(1) must be a geographical area that is within a community and that has a concentration of cultural facilities, creative enterprises, or arts venues located within it;

(2) may be home to not-for-profit and for-profit creative entities; and

(3) is intended to impact the larger community in which it is located by:

(a) attracting artists, creative entrepreneurs, and cultural enterprises;

(b) encouraging economic development;

(c) encouraging the preservation and reuse of historic buildings;

(d) fostering local cultural development; and

(e) providing a focal point for celebrating and strengthening its unique cultural identity.

(C) A geographical area of the State only may be designated as a cultural district under the provisions of this section by applying to the commission for the designation, satisfying criteria and other requirements of this section, and upon approval by the commission.

(D) The commission shall:

(1) provide leadership and assistance to a community that seeks to develop or foster a cultural district;

(2) develop a process through which a community may apply for the designation of a cultural district by the State, including:

(a) specific guidelines and criteria; and

(b) a process for the periodic evaluation of the success of a designated cultural district and the periodic recertification of the district; and

(3) pursue partnerships and collaborative agreements with other public agencies and the private sector to maximize the benefits and value of cultural districts designated by the commission.