Lansing — The Michigan House signed off Thursday on a bill 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 boat owners.
The bill, sponsored by state Sen. John Damoose of Harbor Springs, passed 91-16, 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 transporting bicycles to the car-less tourist destination in the Straits of Mackinac.
Under the bill, Mackinac Island could approve and deny increases in fares and fees for Shepler’s Mackinac Island Ferry and Arnold Transit Co., which are both owned by a Florida-based company.
State Rep. Parker Fairbairn, R-Harbor Springs, said the passage of the legislation is due to more than a year of work with the area tourism industry in the straits connecting Lakes Michigan and Huron.
“It’s been a tough process, but we had to do something to address this situation,” Fairbairn said. “When push comes to shove, this plan is the only viable option before us that can rein in the single-owner ferry service and protect the affordability of tourism in our area.”
The bill passed the Democratic-led Senate 30-6 last year and will now be shipped to Democratic Gov. Gretchen Whitmer’s desk for her consideration.
Whitmer’s office did not immediately respond to a request seeking 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 the Northern Michigan tourism industry and for the state as a whole.”
The bill, which amends Mackinac Island’s 1899 charter, cannot take effect unless approved by a majority of voters on Mackinac Island.
Fair Access to Mackinac Island, a coalition formed to advocate for the change, said the vote is a “great step” toward empowering the island and that it “will continue working until all litigation is resolved.”
“One of our biggest fears was what happens if a monopolistic ferry system ignored the rules, raised prices without transparency, and made clear they could stop service,” said John Sellek, a spokesperson for the group. “The Mackinac Island economy would hang in the balance.”
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 increase fees for trips to and from Mackinac Island.
Under the city charter, the city can regulate fees for transport service, but there is disagreement over whether the city can control ancillary fees, according to a nonpartisan Senate Fiscal Agency analysis. When the city denied a $2 ferry fee increase request, the companies instead increased other fees on parking, baggage and bike transport.
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 owner, which sued the city, has warned that it could pull the boats from service in 2027 without the contract.
Because Mackinac Island is the only city in Michigan not granted “home rule,” changes to its charter must first run through the Michigan Legislature before going to a vote of the people.
eleblanc@detroitnews.com
Staff Writer Candice Williams contributed.
This article originally appeared on The Detroit News: House OKs bill giving Mackinac Island authority over ferry fees
Reporting by Beth LeBlanc, The Detroit News / The Detroit News
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