Mackinaw City is poised to choose between two development options, and Shepler's Mackinac Island Ferry, a company invested in the area for more than 50 years, is caught in the conflict. To ensure economic vitality by preserving open waterfront scenery that is believed to be favored by tourists, the local planning commission voted 6-3 Thursday, July 24, to change the zoning designation of Shepler's two parcels on the waterfront, eliminating the right to built hotels in the heart of the village. The move has the potential to devalue the waterfront property, eliminating an essential line of credit for the company, company owners say, and put Shepler's out of business. After months of debate, one tied vote on the matter, a public hearing Thursday, and a second vote, the planning commission's final recommendation will be considered by a higher legislative body, the village council, which will rule on the matter Thursday, August 7.

To complete its zoning map and master plan, the commission considered several zoning designations, after which the commission voted to place the two Shepler parcels in the marina commercial district, a designation that prohibits hotels and motels. The property is near the corner of Central and Huron avenues

The highly emotional hearing included area residents, people from out of town who work in the village, business owners, business operators, current and former members of local governments, attorneys, and Shepler company employees, who packed Mackinaw City's village municipal meeting room and the hallway outside.

Commissioners Nancy Dean, Rosada Mann, Edward "Bo" Whipkey, Robert Most, Mary Clark, and Florence Tracy voted to place the Shepler property in the marina commercial district. Commissioners Paul Allers, Earl "Doc" Taylor, and Jeff Hingston voted against the idea.

The commission voted separately on two adjacent, village-owned properties. In favor of marina commercial zoning were Ms. Dean, Mrs. Mann, Mr. Allers, Mr. Whipkey, Mr. Most, Ms. Clark, and Mrs. Tracy. Voting against were Mr. Taylor and Mr. Hingston.

An earlier vote to include the Shepler property in the B2 business district failed. B2 allows hotels and is considered the city's least-restrictive zoning district.

The parcels span a highly contested portion of Mackinaw City's downtown waterfront. To continue drawing tourists to the area, many believe a clear view of the Straits of Mackinac must be maintained. Others insist the parcels should be available for development, to ensure that town's tax base remains strong, hotels, presumably, having more tax value than ferry and marine services businesses. The Shepler family contends it will also ensure sufficient property value to secure a line of credit that enables the company to operate.

Opponents contend that obscuring the water will actually devalue the town in the eyes of community's primary source of revenue, tourists.

To operate the Mackinaw City portion of Shepler's business, the company leases the village dock next to its parcels for $130,000 a year. This amounts to 10% of Mackinaw City's operating budget.

According to Bill Shepler, his son, Chris Shepler, and their attorneys, marina waterfront designation would devalue the property enough that the company may be unable to pay off existing debts and continue a business plan in which it borrows money to pay 38 employees throughout the winter.

The Sheplers acknowledged that the ferry boat business is down this year by 15% to 20%, both in Mackinaw City and St. Ignace, but insisted that they have no intention of building hotels or motels. The company is interested in retaining a business district zoning designation to maintain the parcels' property value, they said.

Mrs. Dean insisted the Shepler company is unable to guarantee its employees long-term jobs, no matter which zoning designation the parcels are placed in.

"I happen to believe that you are going to stay in the ferry business," Mrs. Dean said, however, if a hotel company offered a huge sum for the property, prompting its sale, and the village had established a business district that allowed that land use, the local government could not stop a hotel project.

"The next thing we know, we would have another hotel sitting at the end of town," she said. "You can't guarantee what the next person is going to do."

Testimony was offered by the public regarding the potential shortterm economic impact and the longterm impact of the potential zoning change.

Misty Martinchek of Alanson, a sales manager for Shepler's, said a long term layoff from the company is likely to force her family to leave Michigan and return to Indiana.

"I have lived in Michigan for nine years," she said. After completing college, "I came up here to raise our kids in a more peaceful environment. We love the views, . . . but it took me three years to find a job where I got enough money to sustain my family. My husband is in construction, a tenuous field. For the first time this winter, he was laid off for three months. Without my fulltime job, we wouldn't have made it.

"One of the things we've been talking about is that financing may not be there to make it through the winter at Shepler's. . . .I just hope that the commission thinks about not just the city, but the people that work here," she said.

Barry Dean, supervisor of Mackinaw Township and owner of a bed and breakfast, said the village needs to take the risk of preventing waterfront development so it can ensure the long-term growth of tourism

A resident and business owner for 11 years, Mr. Dean said his customers have stayed in Mackinaw City not for his facility, but to experience "the beautiful environment that Mackinaw offers."

After speaking to many of his customers over the past four months at breakfast, he determined that the view is critical, he said.

"They want to see the water," he said of the visitors. "They want to experience the up-north environment that Mackinaw can offer, but if we as a village continue to give away the waterfront, if we allow walls of construction material separating the people who come to visit from the water, they won't come anymore. . . . They can very easily drive across the bridge or go to other places in Michigan that still have a nautical view and the up-north feeling. . . . That is what this town lives by. It lives by the tourists who come. And they can very easily choose not to."

Mr. Dean, who lived in Florida for 30 years, cited several cities there that are walled off from the waterfront by development, with the exception of one. Jupiter forced all construction to the west side, a risk that paid off. The town is now among the most attractive on the east coast of Florida, he said.

"I would like to think that we are going to take the same risk that they took," he added.

Mr. Dean's evaluation of the waterfront was supported by several long-time area residents, who said they moved to Mackinaw City specifically for the waterfront environment.

According to Bill Marvin of Mackinaw City, concern over the "wall of buildings" is unfounded.

"We seem to be going astray here with the concept of we are going to have all of the views or none of the views," he said. "There are dozens of views that can never be changed. They end with city parks. They are pieces of property that are inviolate."

He cited 23 areas to view the Straits in the village.

"We are not talking about the loss of major views along that route. We are talking about the potential loss of one," he said. Further, "I can think of four to five appealable issues immediately, if this is rezoned to MC [marina commercial]. This will drag on and become contentious. . . . We do not need that in this city."

Nancy Dean questioned the number of views Mr. Marvin cited.

Tom Pfeiffelmann, part owner and general manager of Star Line Mackinac Island Ferry, addressed the commission, speaking for himself and Bob Brown of Arnold Transit Company, who could not attend the hearing.

He cited commercial ownership of the Shepler property by several businesses for more than 100 years.

"I feel if you want to preserve this [waterfront], you should not take the rights away from the Shepler family. You should probably get a grant and pay fair market value for it. Arnold Transit and Star Line also own property on the lake front. . . and we paid a dear price for it."

He objected to government "arbitrarily" devaluing property.

"We're competitors, but what you are . . . about to do is just plain wrong," he said, before the vote.

It was a sentiment echoed by Dick Moehl of the Great Lakes Lighthouse Keepers, who is involved in local tourism.

Mr. Moehl said the Shepler Company is victim of the actions of previous administrations, which allowed expansion along the water. Now that the village seeks to stop major construction on the Straits, the company is poised to take the fall for poor planning, he told The St. Ignace News.

The rezoning issue revolves around the fact that the parcels have no zoning label on the village zoning map. A computer printing mistake in the 1980s left off a designation. Zoning updates, including the map without labels, were voted on and approved by previous administrations, explained Village Manager Jeff Lawson.

Responding to the issue, former village council trustee and president Paul Desy, who now lives in Petoskey, addressed the council and apologized for the mistake.

"I've been sitting here . . . trying to go back 20 years," he said. "We probably . . . left it un-zoned because we didn't feel [a zone with few restrictions] was appropriate for that piece of property."

Most likely, the council was unsure what it wanted to do with the property and intended to return to the issue, but simply did not do so, he explained.