MACKINAC ISLAND, Mich. (Michigan News Source) — A long-running dispute over who controls Mackinac Island’s ferry service has landed in federal court, with the island’s largest ferry operator suing city officials for allegedly overstepping their authority in freezing rates and regulating parking fees.

Shepler’s Inc., operating as the Mackinac Island Ferry Company, filed the lawsuit on March 3 in the U.S. District Court for the Western District of Michigan. The company claims the city council has no legal right to block its proposed fare hikes or dictate parking prices at off-island lots in St. Ignace and Mackinaw City, according to The Detroit News.

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Tensions between the ferry operator and city officials began last fall when the Mackinac Island City Council rejected Shepler’s 2024 fare increases, citing concerns over a “monopoly situation” after the Florida-based Hoffmann Family of Companies acquired both major ferry operators. The council later denied a 2025 parking rate hike and demanded financial details about existing rates and lot capacities.

In its complaint, Shepler’s argues that ferry rate adjustments are necessary due to mounting costs, including a $1.9 million payroll increase, $500,000 in fuel price hikes, and $6 million in fleet repairs. The lawsuit seeks a ruling preventing the city from enforcing rate freezes or extending regulatory control beyond its franchise agreement.

Despite the dispute, ferry services will remain uninterrupted, according to Mackinac Island Tourism Bureau Executive Director Tim Hygh.

“This is a matter between the city and Hoffmann Marine,” Hygh said. “It will not impact ferry service this season. A robust schedule has been agreed upon, and we’ll be welcoming guests starting in April.”

Mackinac Island Mayor Margaret Doud has not issued a public statement on the lawsuit.