(1) One or more business improvement zones may be established within a city or village.

  (2) The zone plan shall allocate assessments on the basis of the benefit to assessable property. A zone area shall be contiguous, with the exception of public streets, alleys, parks, and other public rights-of-way.

  (3) A business improvement zone may be established in a city or village even if the city or village has established a principal shopping district or business improvement district under chapter 1. Assessable property shall not be included in any of the following:

  (a) More than 1 business improvement zone established under this chapter.

  (b) Both a principal shopping district and a business improvement district established under chapter 1.