(1) Before proceeding with plans to establish a prerelease center, the department shall make a preliminary determination that there is a need for a center in the city, town, or county being considered. The department shall develop a written rationale which documents the need for a center. The written rationale must include:

(a) demographic and statistical data on the general and offender population of the city, town, or county being considered; and

(b) the proposed prerelease center's relationship to the correctional needs of the state.