House OKs bill giving Mackinac Island authority over ferry fees
Lansing — The Michigan House approved a bill Thursday that will allow Mackinac Island to regulate all aspects of the island’s ferry service, amid an ongoing cost battle between island officials and private ferry owners.
The bill, sponsored by Sen. John Damoose of Harbor Springs, passed in a 91-16 vote, with 16 Republicans opposing its passage. It will allow the City of Mackinac Island to regulate all fees charged for services such as parking in Mackinaw City and St. Ignace, baggage handling and transportation of bicycles to the car-free tourist destination of the Mackinac Sound.
Under the bill, Mackinac Island could approve or deny fare and fee increases for Shepler’s Mackinac Island Ferry and Arnold Transit Co., both of which are owned by a Florida-based company.
State Rep. Parker Fairbairn, R-Harbor Springs, said passage of the legislation is due to more than a year of work with the region’s tourism industry in the straits connecting Lakes Michigan and Huron.
“It’s been a difficult process, but we had to do something about this situation,” Fairbairn said. “When push comes to shove, this plan is the only viable option we have to curb single-owner ferry service and protect tourism affordability in our region.”
The bill passed the Democratic-led Senate by a vote of 30-6 last year and will now be sent to Democratic Gov. Gretchen Whitmer’s desk for consideration.
Whitmer’s office did not immediately respond to a request for comment.
“This legislation is critically important to the region and to the countless businesses in the surrounding communities – we had to get this done,” Damoose said in a statement Thursday. “Mackinac Island is one of Michigan’s premier tourism destinations, and a lack of action would be terrible for Northern Michigan’s tourism industry and the state as a whole. »
The bill, which amends the Mackinac Island Charter of 1899, can only take effect if approved by a majority of Mackinac Island voters.
The fight between the city and Naples, Fla.-based Hoffman Family of Companies, which purchased both Shepler’s Mackinac Island Ferry and Arnold Transit Co. in March 2022 and June 2024, respectively, centers on the city’s opposition to Hoffman’s plan to raise fees for trips to and from Mackinac Island.
Under the city charter, the city can regulate rates for transportation services, but there is disagreement over whether the city can control incidental fees, according to a nonpartisan Senate Fiscal Agency analysis. When the city refused a request to increase ferry fees by $2, the companies instead raised other fees on parking, baggage and bicycle transportation.
The city has accused Hoffmann of using a de facto monopoly to set high rates and has so far refused to negotiate a new contract with them. The ferry’s owner, who sued the city, has warned it could remove the boats from service in 2027 without the contract.
Since Mackinac Island is the only city in Michigan that does not have “home rule,” changes to its charter must first go to the Michigan Legislature before being put to a vote by the people.
eleblanc@detroitnews.com
Staff writer Candice Williams contributed.
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This article originally appeared on The Detroit News: Michigan House OK Mackinac Island ferry boat regulatory powers
