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David Nicholas: Mackinac Island may begin regulating ferry operations that carry people to and from the popular tourist destination. That's under a law signed today by Governor Gretchen Whitmer, and it comes amid an ongoing legal battle between the island and the private company Hoffmann Marine, that owns and operates the ferries, over who has authority to set the rates. WCMU's Blace Carpenter has been following the story, and he spoke about it with news director Rick Brewer.
Rick Brewer: So Blace, what does this new law actually do?
Blace Carpenter: It gives Mackinac Island authority over all ferry services, such as the pricing of fare tickets, parking, and baggage handling. Because this law is an amendment of the city's charter, it will only take effect if majority of the island residents approve it. The signing of this law is happening amidst a federal court case that was started because the private company claimed that the city had overstepped their authority after trying to raise rates.
RB: What has been the reaction from businesses on the island and local communities around Mackinac Island?
BC: Yeah, so there's been a mix from some of the businesses I've spoke to. Some agree with the law. Some say that there won't be an effect on them. When I was on the island last week, I was turned away by a number of businesses, but I did notice “Thank you legislators” signs in some of the windows following the House approving this law. One business owner that I did speak with was Todd Callewaert, who owns a number of businesses on the island, such as Ryba’s Fudge. He said after the House passed a law that he was glad that it was moving forward.
Todd Callewaert: Mackinaw Island is open for business. We're going to be here for this year, next year, and the next 100 years, and it just gets better every year.
BC: Another perspective is the island's neighbors. St. Ignace and Mackinaw City are not too thrilled with the law and how it gives the island authority over parking prices. In my conversation with the manager of Mackinaw City, Dean Martin, he said that there was no representation of the village when drafting this bill and wished for a more inclusive agreement.
Dean Martin: I don't think I've heard one positive reaction from the residents and businesses here. We had a comparatively packed house at our most recent council meeting and the public comments that were provided were all negative to Senate Bill 304 passing.
RB: So how did Hoffmann Marine, the private company who owns the ferries, respond?
BC: After the House had passed the bill, which is now a law, Hoffman Marine said they were disappointed in the legislation and cited inflation and rising costs as to why they wanted to raise rates in the first place. They also said that they have been investing in these two companies since acquiring them a few years ago.
RB: So Blace, you mentioned there was a federal court case at play here. What does this new law mean for that case?
BC: The heart of this case, again, is who has authority over the price of ferry services. When the ferry company sued the city, claiming it overstepped its authority, the city then countersued, claiming that the company is a monopoly, and that's why they have the right to set rates according to an agreement they signed in 2012.
RB: So where does the case stand exactly?
BC: The case is still ongoing as both parties try to find an agreement regarding the 2012 agreement. That is what it's focusing on, is this agreement. And the city says that they hope to have an agreement within the next month, but the company hasn't really given a timeline yet.
RB: Blace, you've been following the story now for a couple of weeks. What are you going to be looking for moving forward in the coming days?
BC: Well, again, Whitmer signing this into law is a big step, but it still needs to be approved by a majority of the island residents before it's enacted. So, I'll be looking at how residents vote on this. Another thing that I'll be looking at is a contract going forward. That 2012 agreement ends next summer, and if this bill is enacted, I wonder what a contract will look like going forward.
RB: Blace Carpenter, thanks for your time, sir.
BC: Thank you so much.
DN: WCMU reporter Blace Carpenter speaking with news director Rick Brewer.
MPRN's Rick Pluta contributed reporting to this story.
