VERMILION — Outgoing Vermilion Mayor Jim Forthofer has directed the city’s law department to begin a constitutional review of a newly approved charter amendment that limits the city’s use of Tax Increment Financing (TIF).
Forthofer announced the move during Monday’s city council meeting, saying the amendment’s language may conflict with state law and could require judicial clarification before implementation.
“After the charter amendment was presented to voters, our administration and legal counsel reviewed the language,” Forthofer said. “I’ve asked the law director to initiate a challenge to determine its constitutionality as presented by the petitioning parties.”
The amendment, spearheaded by Jean Anderson and attorney Gerald Phillips, was approved by voters earlier this month. It restricts the city from using TIF incentives in certain developments, a tool traditionally used to redirect future property tax revenues toward infrastructure improvements.
During public comment, Anderson defended the measure, saying it was never meant to halt responsible growth but to ensure residents have a say in how tax-based incentives are applied. “TIFs were originally designed for blighted properties,” she said. “Developers shouldn’t be using public money to fund private projects.”
Forthofer, however, argues that the initiative may contain “jurisdictional flaws,” including issues over Firelands School District voters participating in a city charter matter. “The people have the right to vote,” he said in a follow-up interview, “but they also have the right to vote on something that’s legally sound.”
Incoming Mayor Russ Owens, who takes office January 1, said the legal challenge was “a fair challenge.”
The city’s legal review will begin with the Law Director’s office, but Forthofer indicated an outside attorney with constitutional experience may handle the case.
No timeline has been set for when the challenge will be filed.
About the Author
Well reported. It is my belief that our City Charter was and is about how we govern ourselves as a Charter City. It is much like our Constitution whereby it sets forth how our citizens are represented in the City government, and how that government actually governs the City. My belief is that our Charter was never intended to ajudicate the potential use of specified economic development tools the City may offer in every situation. Our City Charter provides for the responsible administering of such. I have been publicly consistent with my opinion and have openly discussed this with those who proffered the last two Charter Amendments. I also believe that the City of Vermilion cannot afford to spend money it does not have, to prosecute this issue at this time.
Respectfully,
Russ Owens