A proposed tax incentive tied to the Waterwood development at the former Brown Mansion site on Lake Road near Joppa Road is raising questions among local officials and residents. The plan involves a Tax Increment Financing agreement, often called a TIF, and has prompted differing views from Erie County officials, Vermilion Township leaders and Vermilion Local Schools. Here is what the proposal means, who is involved and what happens next.
What is a TIF?
A TIF is a tool used by local governments to help pay for public infrastructure such as roads, water lines and sewer systems needed for new development. Instead of collecting all new property taxes right away, a portion of the future increase in property taxes created by a project is set aside for a number of years to help cover those infrastructure costs. In this case, Erie County is proposing a TIF that would capture 75 percent of the new property tax value generated by the Waterwood development for a set period of time.
What would this TIF pay for?
According to Erie County officials, the proposed TIF would cover approximately $7 million in public infrastructure improvements connected to the Waterwood project. Erie County Commissioner Matt Old said the county commission will hold a public hearing at 9:30 a.m. on January 22 to hear from all parties before making a decision. In county documents, the proposal is sometimes referred to as the Gateway Boulevard TIF.
Are schools and local services losing money?
This is one of the most common questions raised by residents. Vermilion Local Schools Superintendent Wes Weaver said the district is not losing money it currently receives. Instead, the TIF captures a portion of future tax revenue that does not yet exist. Weaver said the size and length of the TIF were structured below the level that would require formal approval from the school district. He said development like this is necessary for long-term community success and that once the TIF period ends, full tax revenue from the development will eventually flow to schools.
Why are township officials concerned?
Vermilion Township Trustee Kenn Baughman has taken a firm stance against the use of TIFs within the township. In a written statement, Baughman said that capturing future tax revenue for up to ten years delays funding needed to support fire, EMS and road services, especially as new development increases demand on those services immediately. He argued that the township faces increased service costs years before any new tax revenue becomes available once a TIF expires. Baughman also questioned the need for a TIF in this case, noting that the developer is already building and would likely proceed without the incentive. He further stated that TIFs are typically used to encourage investment in blighted or underdeveloped areas and said Vermilion Township does not meet that definition.
Who decides whether the TIF happens?
In this case, Erie County is the approving authority. The county commission determines whether the TIF serves a public purpose and sets its terms. While schools and townships are notified, they do not have final decision-making authority at this level. The public hearing scheduled for January 22 is the primary opportunity for residents and local officials to share their views before a vote is taken.
When would the community see the benefit?
Supporters of the TIF say the benefit comes in two phases. In the short term, the TIF helps pay for infrastructure improvements needed for development. In the long term, once the TIF period expires, the full value of the development is added to the tax base. Opponents argue that service demands increase immediately, while the tax revenue to support those services can take years to materialize.
What does the developer say?
The project is being developed by DiGeronimo Companies, which purchased the former Brown Mansion property and is overseeing the Waterwood Resort development. DiGeronimo Companies could not be reached for comment prior to publication. This story will be updated if a response is received.
What happens next?
The Erie County Commission will hold a public hearing on the proposed TIF tied to the Waterwood development at 9:30 a.m. on January 22. Residents interested in the issue are encouraged to attend or follow the meeting to learn more about how the decision could affect the community.
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