The governing body of any city of the third class having a population of not to exceed 300, located within a township having a township hall and in a county with a population of not less than 4,500 nor more than 5,500 is hereby authorized and empowered to enter into a contract with the township board of the township for the joint ownership, maintenance, repair, remodeling, and equipping of the township hall, but before such an agreement may be entered into, a petition signed by at least 50% of the residents of such city as determined by the total vote cast for secretary of state at the last preceding election, shall be submitted to the governing body of such city requesting that such a contract be entered into. When the governing body determines that such petition is proper, the governing body shall then adopt a resolution authorizing the city to enter into such a contract.

The township board, upon receipt of such resolution, shall meet and if determined that a contract should be entered into, the board shall adopt a resolution authorizing such contract. Thereafter, the governing body of the city and the township board are authorized to enter into a contract, which contract shall provide that the township hall shall be under the joint ownership of the city and township and shall be maintained, remodeled, equipped and kept in repair jointly by such township and city. The contract shall be approved by a majority of the governing body of the city and of the township board.

After the contract has been entered into, the township board is authorized and empowered to levy an annual tax of not to exceed two mills on the dollar on all of the taxable tangible property of such cities of the third class for the purpose of providing funds to be used for the maintenance, equipping, remodeling and repair of the township hall.