GRAND RAPIDS, Mich. (WOOD) — After a number of years of modifications, a rift has shaped between the Mackinac Island Metropolis Council and the island’s high ferry companies.
Shepler’s Inc. and Mackinac Island Ferry Firm filed a joint lawsuit towards the Metropolis of Mackinac Island on Monday in federal court docket, accusing the town council of overstepping its bounds by attempting to regulate ferry schedules and fares and meddling of their different companies.
A part of the difficulty stems from large modifications within the native business. The Hoffmann household joined Shepler’s as companions in 2022, then bought MIFC in 2024.
In keeping with the lawsuit, the Hoffmann household knew that the MIFC fleet was outdated and wanted repairs, nevertheless it apparently underestimated the quantity of labor crucial to remain afloat.
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“Shortly after its purchase, the Hoffmann Family discovered that MIFC ferry fleet required significant repairs, many of which raised critical safety concerns,” Shepler’s representatives mentioned within the lawsuit. “During the first several months of ownership, the Hoffmann Family invested approximately $6 million in MIFC, the majority of which went to repair and modernize the fleet.”
Whereas the repairs have been finished, the lawsuit claims the Hoffmann’s labored intently with the town, increasing Shepler’s companies to ensure the island’s ferry wants have been met.
As a part of the franchise settlement between the town and the businesses, each ferry companies should submit their proposed fares for the upcoming season. Citing the tumultuous 2024 season and different financial elements, the 2 corporations proposed a “slight increase” for ticket charges in 2025.
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The Metropolis Council rejected the proposed charges, claiming the Hoffmann’s try to “monopolize” the market and lift costs. Legal professionals representing Shepler’s Ferry reject that declare.
“In addition to the substantial capital investments that need to be recouped over time, both Shepler’s and MIFC were experiencing a significant increase in expenses, including a $500,000 increase in fuel prices, an increase in local taxes of $50,000, a $1,900,000 increase in payroll and approximately $420,000 in lost ticket value that Shepler’s and MIFC, in conjunction with the City, gives away for purposes of promotion,” the lawsuit reads.
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The town council additionally mandated that the 2 corporations should additionally submit a proposal for his or her parking charges, which prospects pay once they depart autos on the ferry firm’s property in St. Ignace or Mackinaw Metropolis.
The lawsuit claims that the businesses submitted parking proposals “in the interest of continued cooperation” whereas claiming that the town council has no say over their parking charges underneath the present franchise agreements.
The town council formally rejected the parking charges final month.
