(a) Except as provided in subdivision (c) of this section, an area for which designation as an empire zone is sought shall not exceed two square miles for any proposed or existing zone. Such area shall be defined by one or more borders determined by the applicant, which need not be entirely coterminous with the borders of census tracts or block-numbering areas. Each zone shall be located entirely within traditional neighborhood or community boundaries and, where appropriate, be bounded by major natural or man-made physical boundaries, such as bodies of water, railroad lines, or limited-access highways.

(b) An area for which designation as an empire zone is sought shall not exceed two square miles for any zone within a town with a population of less than 25,000, provided that such zone is not wholly within a village. Such area shall be defined by a continuous border, which shall be determined by the applicant, and which need not be entirely coterminous with the borders of census tracts or block-number areas.

(c) Any zone lands designated for regionally significant projects as defined in section 10.2(u) of this Part shall not be included within the two square mile limitation.