(1) Whether the petition is signed and acknowledged or proved as required by law and is otherwise sufficient.

(2) Whether any part or portion of the real property within the proposed area or proposed extension should not be included therein.

(3) Whether it is in the overall public interest to grant the relief sought.

(b) (1) If the board shall determine that the petition is not signed and acknowledged or proved as required by law or that it is otherwise insufficient, or if it is determined that it be not in the overall public interest to grant the relief sought, the board shall deny the petition.

(2) If the board shall determine that the petition is signed and acknowledged or proved as required by law and is otherwise sufficient and that it is in the overall public interest to grant the relief sought but shall find that any part or portion of the real property within the proposed area or proposed extension should not be included therein, the board shall alter and revise the boundaries of the originally proposed area or originally proposed extension of an existing area so as to exclude therefrom any real property which it finds should not be included in such proposed area or proposed extension.

(3) If and when the board shall make such an affirmative determination, the board may adopt an ordinance or local law establishing an area or extending an existing area as the boundaries thereof shall have been finally determined by said board. Such ordinance or local law may prohibit, restrict, regulate and control the use of all buildings, structures and land within such area as established or extended for any industrial or commercial purpose, or, in the alternative, may limit the use of all buildings, structures and land within such area as established or extended to use for one or two family residential purposes, or to use for one or two family residential and non-profit recreational purposes; provided, however, that no such ordinance or local law shall be adopted unless the petition shall comply with the requirements of this article as to the sufficiency of the area proposed to be zoned and of signers within the boundaries of the proposed area or proposed extension as finally determined by the board. Such ordinance or local law shall not apply to a non-conforming use in existence at the time of the effective date of such ordinance or local law.