Judge rules against voters-approved charter change

VERMILION — Vermilion's government successfully challenged a voter-approved charter amendment over what's known as tax increment financing in Erie County Common Pleas Court. In short, the measure — approved by voters during the fall 2025 election — cannot be enforced, according to a recent ruling. Supporters campaigned for the issue under the Concerned Vermilion Citizens group. Erie County Common Pleas Judge Roger Binette found the amendment conflicts with Ohio law and gives voting power to people outside the city. He permanently blocked the amendment from taking effect, meaning city officials cannot enforce it. The city, which filed this case, argued the amendment was unconstitutional and asked the court to stop it from being implemented. What is it? Tax increment financing, in essence, redirects new property tax revenue from development projects toward infrastructure improvements. They're tools political subdivisions, like cities, use to help pay for public improvements tied to development, such as roads, sidewalks and/or utilities. In November, at the polls, Vermilion voters approved a charter change, which paved the way for a change. But this 2025 measure indicated it wouldn't take effect until actually approved by voters at a later election. Now that's a moot point based on Binette's ruling. It also expanded who could vote by including residents in affected school districts, even if they lived outside of Vermilion, another issue with which city officials expressed concerns with. Why take action? After the election, the city challenged the amendment in court, arguing it broke the rules in two main ways as it: • Allowed people outside Vermilion to vote on city decisions • Created a local approval system that conflicted with Ohio law While this situation played out in court, all tax increment financing changes in Vermilion went on hold until a firm decision could be made. Why rule against? Binette agreed with the city and said the amendment could not stand for two main reasons: • It gave people outside Vermilion a say in city decisions because the affected school districts include other communities. • Ohio already has rules for how tax increment financing deals are handled, and those rules do not give all voters the power to approve or reject every tax increment financing deal. The court found the amendment went beyond what the city could do on its own and conflicted with the state's process for handling tax increment financing deals. Binette said this is not just a local issue. Tax increment financing deals are used across Ohio to support development, and the rules are meant to work the same way statewide. The court said letting cities create their own approval systems could interfere with that statewide system. What comes next? The judge granted the city's request and permanently blocked the amendment. Unless a higher court overturns the ruling or state law changes, the measure cannot be used or enforced. While voters approved the amendment, the court found the city cannot legally enforce it. That means tax increment financing deals decisions will continue under current state rules, which allow an elected body to decide and vote upon them. They still must, however, inform the public about their intentions to vote on these matters at public meetings.