VERMILION, Ohio — After Erie and Lorain County voters approved a ballot issue, the city of Vermilion is challenging its constitutionality.
The charter amendment, known as Issue 26 in Lorain County and Issue 6 in Erie County, created a requirement for voter approval of any proposed Vermilion tax increment financing (TIF) district.
WHAT IS A TIF?
A TIF is an economic development mechanism in a designated area that creates a separate fund with money generated from the value added by improvements. The funding helps pay for public infrastructure.
Proponents say TIFs help incentivize investment, but critics worry the public money could be diverted from essential services, like schools and public safety.
CHARTER AMENDMENT
“[The issue] was to give the people who are going to be affected most the ability, the right, to vote on it,” said Gerald Phillips, a local attorney who authored the ballot measure.
The amendment says no TIF passed by the Vermilion City Council would take effect until a majority of electors approve during the next general election, at least 90 days after such passage. The language defined electors as “registered voters both in the City of Vermilion, and in any school district which will be affected by the tax incremental financing presently or in the future at the time of the passage of the ordinance or resolution, such as the Firelands School District.”
CONSTITUTIONAL QUESTIONS
The way the measure was written is raising questions about its constitutionality.
“People outside of the city of Vermilion were allowed to vote on something that was in the Vermilion city charter. You couldn’t have people in England voting on an American constitutional matter,” said Vermilion Mayor Jim Forthofer.
During a city council meeting this week, Forthofer announced his intention to challenge the charter amendment’s legality.
It’s a move that has drawn criticism from voters who supported the ballot measure.
“I think there’s no excuse for the city to use our tax dollars to fight against the will of the people. We’ve made it clear what we want,” said Carrie Ott, a Vermilion resident who helped with the Issue 26/6 campaign.
HOUSING DEVELOPMENT AT CENTER OF DEBATE
She and others from the group Concerned Vermilion Citizens (CVC) were spurred by a proposal to build 600-700 homes and some commercial businesses on a 300-acre site in rural Eastern Vermilion.
News 5 spoke to the group in fall 2024, as they raised concerns over the development and were throwing support behind another ballot measure.
RELATED: Proposed Vermilion development sees pushback from neighbors, ballot initiative
The measure passed, now requiring voter approval for any Planned Unit Developments (PUD). Vermilion City Council had previously approved a PUD for the controversial development, which allowed for higher-density development than what previous zoning permitted.
“If they’re making decisions that aren’t what we want, we have the opportunity to petition and put it to the people. And in both cases, the people in Vermilion voted for their right to vote,” said Jean Anderson, a Vermilion resident and former mayor who worked on the Issue 26/Issue 6 campaign.
THE CHALLENGE
Mayor Forthofer previously raised concerns that adding voter approval as part of development decisions could discourage growth. But he said his challenge to the most recent charter amendment has more to do with the language of the amendment.
News 5 asked, “What would you say to the people who think challenging this charter amendment goes against the will of the people who voted on it?”
“Voting is a sacred right,” Forthofer said. “But they were voting on what was essentially, to put it plainly, a bogus document.”
“People deserve the right to petition their government. I raised my hand and swore to protect the Constitution, so I understand that. But they deserve better than this document. This document was unconstitutionally prepared,” Forthofer said.
CVC disagrees with the mayor’s assessment of the charter amendment. They said the current TIF process, which requires approval by the city council and the school board, already includes input from people in the school district outside of the city.
“They need the right to vote if they’re being taxed, period,” Anderson said.
The group is asking the city not to pursue legal action, but said it would consider bringing a similar proposal back to the voters if the challenge is successful.
The mayor said the city will wait until the election results are officially certified to file a challenge.
Catherine Ross is the Lorain County reporter at News 5 Cleveland. Follow her on X @CatherineRossTV, on Facebook CatherineRossTV or email her at Catherine.Ross@wews.com.
