Michigan lawmakers give Mackinac Island control of ferry rates. Neighbors aren’t happy

The Michigan House on Thursday OK’d a bill that would give Mackinac Island authority over all aspects of ferry services to the tourist destination, including prices for not only fares but also parking and baggage handling.

Just before the start of the Memorial Day weekend, the House passed Senate Bill 304 by a 91-16 vote Thursday, with all opposition coming from Republicans.

The legislation now goes to Gov. Gretchen Whitmer. Because it amends the island’s charter, it would only take effect if a majority of its residents approve it.

Both St. Ignace and Mackinaw City oppose the legislation because it gives the smaller city power to control parking rates in their municipalities.

“This was a tough fight — but sometimes as legislators we have to be willing to take a hard stance and take a few arrows to do what is right,” state Sen. John Damoose, R-Harbor Springs, wrote in a statement on social media.

Mackinac Island attracts some 1.2 million visitors a year, and its economy depends almost entirely on tourism. This week, it was named the top summer travel destination for the fourth consecutive year by USA TODAY readers.

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The legislation advances amid a year-old federal court battle between the island and the Florida company that owns both ferry lines that transport tourists.

Since Hoffman Marine bought the two ferry services to the island — Shepler’s Inc. and Arnold Transit — in 2004, it has raised rates from $36 to as high as $39.

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The issue is whether that constitutes a monopoly. Mackinac Island contends it is, allowing its government to set the rates. Hoffman sued, arguing the city can’t unilaterally declare a monopoly.

A federal appeals court allowed the island to control ferry ticket prices, but not parking, while the lawsuit continues.

The ferry contract expires next summer, and Hoffman Marine has threatened to shut down the ferries unless a new contract is negotiated.

Hoffman Marine said in a statement it was “disappointed” by the lawmakers’ actions, saying its ticket prices “reflect the realities of increased fuel, labor, maintenance, and infrastructure expenses, while maintaining a strong commitment to accessibility.

“A sustainable, well-invested ferry system is critical to preserving Mackinac Island’s long-term vitality,” the statement continued. “A regulatory approach that limits operational flexibility risks undermining the very investments required to maintain safe, efficient, and high-quality service, ultimately impacting both residents and visitors alike.”

Damoose wrote in a statement that he isn’t opposed to a privately owned ferry system, but that it “can only exist with oversight and regulation.”

“This arrangement has worked well for more than 125 years, but recent challenges stemming from the ferries and docks now being owned by the same entity meant the state legislature had to act to allow the City of Mackinac Island to update its own charter to maintain such oversight,” Damoose wrote on social media.

Mackinaw City’s council was expected to vote Thursday night on a resolution that would impose a $200,000 fee on each ferry operator to recoup expenses such as policing and road maintenance linked to tourism.

Hoffman Marine officials spoke out against the fees, according to MLive.

This story was originally published by Bridge Michigan and distributed through a partnership with The Associated Press.