1.    There is created in each municipality a public body corporate and politic to be known as the “urban renewal agency” of the municipality; provided, that the agency may not transact any business or exercise its powers under this chapter until or unless the local governing body has made the finding prescribed in section 40-58-05 and has elected to have the urban renewal project powers exercised by an urban renewal agency as provided in section 40-58-15.

2.    If the urban renewal agency is authorized to transact business and exercise powers under this chapter, the mayor, by and with the advice and consent of the local governing body, shall appoint a board of commissioners of the urban renewal agency which must consist of five commissioners. The term of office of each commissioner is one year.

3.    A commissioner may not receive compensation for services but is entitled to the necessary expenses, including traveling expenses, incurred in the discharge of the commissioner’s duties. Each commissioner shall hold office until a successor has been appointed and has qualified. A certificate of the appointment or reappointment of any commissioner must be filed with the clerk of the municipality and the certificate is conclusive evidence of the due and proper appointment of the commissioner.

4.    The powers of an urban renewal agency must be exercised by the commissioners of the agency. A majority of the commissioners constitutes a quorum for the purpose of conducting business and exercising the powers of the agency and for all other purposes. Action may be taken by the agency upon a vote of a majority of the commissioners present, unless in any case the bylaws require a larger number. Approval of the payment of an account or claim must be recorded in the record of the agency’s proceedings and this is sufficient to indicate approval without requiring a majority of the commissioners to sign or initial the voucher or order for payment.

5.    Any persons may be appointed as commissioners if they reside within the area of operation of the agency which shall be coterminous with the area of operation of the municipality and are otherwise eligible for appointments under this chapter. The mayor shall designate a chairman and vice chairman from among the commissioners. An agency may employ an executive director, technical experts, and such other agents and employees, permanent and temporary, as it may require, and determine their qualifications, duties, and compensation. For legal services it may require, an agency may employ or retain its own counsel and legal staff. An agency authorized to transact business and exercise powers under this chapter shall file, with the local governing body, on or before March thirty-first of each year a report of its activities for the preceding calendar year, which report must include a complete financial statement setting forth its assets, liabilities, income, and operating expense as of the end of the calendar year. At the time of filing the report, the agency shall publish in a newspaper    of general circulation in the community a notice to the effect that the report has been filed with the municipality and that the report is available for inspection during business hours in the office of the auditor and in the office of the agency.

6.    For inefficiency or neglect of duty or misconduct in office, a commissioner may be removed only after a hearing and after the commissioner has been given a copy of the charges at least ten days prior to the hearing and has had an opportunity to be heard in person or by counsel.