The City of Vermilion has filed a lawsuit in Erie County Common Pleas Court seeking to stop the implementation of a voter-approved charter amendment that changes how tax-increment financing, or TIF, can be used in future development projects. A TIF allows the city to use the extra property tax money created when new buildings go up to help pay for roads or utilities around that project.
The amendment, passed by voters on November 4, 2025, requires TIF proposals to receive direct voter approval. The city argues that the new rules conflict with state law and are therefore unconstitutional.
The lawsuit, filed and verified by Law Director Susan Anderson, names Clerk of Council Melanie Wood, all seven members of City Council, and Mayor Jim Forthofer as defendants in their official capacities. The filing asks the court to prevent the amendment from being added to the charter or enforced in any way until a judge determines whether it is legally valid.
According to the complaint, the amendment attempts to regulate how TIFs are applied to parcels located outside Vermilion’s city limits but within the Vermilion and Firelands school districts. The city argues that it has no legal authority to impose voter-approval requirements on property it does not govern, and that TIF rules are controlled by statewide law. Because TIF districts involve counties, school districts, and other taxing authorities, the lawsuit says the city cannot independently change procedures established by the Ohio Revised Code.
The lawsuit also states that the amendment exceeds Vermilion’s home-rule powers by extending the city’s authority beyond its boundaries. Anderson cites Ohio constitutional provisions that prevent municipalities from overriding general state laws, particularly in matters involving taxation and regional financing.
The case was filed under Ohio Revised Code 733.56, which authorizes a law director to take legal action to restrain the enforcement of an ordinance or charter amendment believed to be illegal or unconstitutional. The city is requesting a temporary restraining order, followed by preliminary and permanent injunctions, to block the amendment while the case moves forward.
Maps of the Vermilion Local and Firelands Local School Districts were included with the complaint to show the areas affected by the amendment. The city argues that allowing Vermilion voters to approve or reject TIF projects involving those areas would improperly give city residents influence over decisions that extend into neighboring townships and communities.
Until the court issues a ruling, the amendment remains effectively on hold. The case now moves forward in Erie County, where a judge will determine whether the measure can remain in the charter or must be set aside.
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