Section 2. There is hereby created in each municipality a board to be known as the Industrial Development Financing Authority, hereinafter referred to as the authority; provided, that no such authority shall organize or be organized, transact any business, employ any personnel or exercise any powers until the city council, with the approval of the city manager, in a city having a Plan D or Plan E form of charter, the city council, with the approval of the mayor, in any other city, or by the board of selectmen, in a town, shall by vote declare that an industrial development financing authority is needed therein and that (1) unemployment or the threat thereof exists in the municipality, or (2) security against future unemployment and lack of business opportunity is required in the municipality, and that unemployment or the threat thereof can be alleviated or the security against future unemployment and lack of business opportunity can be provided, by attracting new industry to the municipality or substantially expanding industry existing in the municipality through an industrial development project or projects financed under this chapter. In determining the need for such an authority the city council or the town shall take into consideration its ability to adjust to any expected increase in the demand for municipal facilities and services as a result of the expected increase in employment and business activity from such industrial development. If a municipality votes for the establishment of an authority, the original directors of such an authority from that municipality shall be appointed forthwith as provided in section three.

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Two or more contiguous municipalities may agree to consolidate their respective industrial development financing authorities into a single authority for both or all of said municipalities as hereinafter provided. Every such authority shall be managed, controlled and governed by its directors, appointed or elected as provided in this section or in section three.

In the event two or more municipalities wish to consolidate their industrial development financing authorities, or to establish a consolidated authority, each such municipality shall so indicate by vote of its city council or its board of selectmen, as the case may be, which shall state the desire to consolidate authorities with a designated municipality or municipalities or to establish a consolidated authority with the designated municipality or municipalities. Such a vote may be adopted at the same time as a vote to organize an authority or after an authority has been organized in one or more of such municipalities.

As soon as possible after the appointment and qualification of the original directors of an authority under section three the city or town clerk shall file a certified copy of the vote for the establishment of such authority and a certificate of such appointment and qualification with the board and with the Massachusetts office of business development, and a duplicate thereof in the office of the state secretary. If the state secretary finds that the industrial development financing authority has been established and the directors thereof have been appointed according to law, he shall issue to it a certificate of organization, which certificate shall be conclusive evidence of the lawful establishment of the authority and of the appointment of the directors thereof. If two or more municipalities vote to consolidate their respective authorities, the clerk of each such municipality shall forthwith file a certified copy of such vote and, if an authority has not previously been established in one or more such municipalities, said clerk shall also file certificates of appointment and qualification, as the case may be, of the directors of such authority from that municipality with the board and agency and a duplicate thereof in the office of the state secretary. If the state secretary finds that each of the municipalities have voted that their respective authorities should be consolidated, and he finds that the directors have been appointed according to law, he shall issue to it a certificate of consolidation and such certificate shall be conclusive evidence of the lawful consolidation and establishment of such authority and the appointment of the directors thereof.

Whenever an industrial development financing authority determines that there is no further need for its existence, that it has no property to administer, other than funds or property, if any, to be paid or transferred to the municipality by which it was established, and that all its outstanding obligations have been satisfied, it may by a majority vote of its directors submit the question of its dissolution, in a town, to the voters at an annual town meeting or, in a city having a Plan D or Plan E charter, to the city manager and the city council, and in any other city, to the mayor and city council. If a municipality, or in the case of a consolidated authority each constituent municipality, votes for such dissolution and the Massachusetts office of business development is satisfied of the existence of the facts required herein, it shall so certify to the state secretary and said authority shall be dissolved forthwith subject to the applicable provisions of section fifty-one of chapter one hundred and fifty-five.

An industrial development financing authority is a board of the municipality and not a separate entity. Programs and activities authorized under this chapter are to be carried out by an authority in the name and on behalf of a municipality or municipalities and contracts made, property acquired and earnings, if any, in connection with a project are those of the municipality by and through which the authority acts.

The commonwealth reserves the power at its discretion, and at any time to alter or change the structure, organization programs or activities of an industrial development financing authority, including the power to terminate the authority, subject to any limitation on the impairment of contracts entered into by the municipality acting by and through the authority. Any net earnings of a municipality acting by and through an industrial development financing authority, beyond that necessary for retirement of indebtedness incurred by it or to implement the public purpose or program of the municipality acting by and through the authority may not inure to the benefit of any person other than the municipality. Upon dissolution of an industrial development financing authority, title to all property owned by the municipality acting by and through the authority shall continue to be vested in the municipality. In the case of a consolidated authority, the property shall be divided upon dissolution among the municipalities represented by it in such proportions as the municipalities may from time to time agree or, in the absence of such agreement, in the proportions prescribed by section eight to the extent the same are applicable or, to the extent said proportions are not applicable in proportions determined by the finance board to be equitable.