(a) For the purposes stated in this chapter there is incorporated in each city and town a body corporate and politic which shall be known as the municipal detention facility corporation of the municipality. The corporation is a public corporation, which is an instrumentality and agency of the municipality, but has a distinct legal existence from the municipality, and which has purposes that are consistent with the declaration of purpose set out in this chapter, and which has powers that are necessary and incidental to the effectuation of the stated purposes.
(b) The corporation of any city or town shall not have the authority to transact any business or exercise any powers under this chapter until the city or town council shall by resolution declare that there is a need for the corporation to function in the city or town.
(c) The corporation of each city or town shall cease to exist unless the city or town council passes the resolution specified in subsection (b) prior to December 31, 1991, the corporation of the municipality has entered into a contract for the operation of a detention facility with the United States Marshals’ Service prior to December 31, 1991, and the site of the detention facility has received all necessary zoning approvals by December 31, 1991.