2010-09-09 / News

Ferry Franchise Decisions Could Have Area-wide Impact, Shepler Warns Village

Mackinaw City Business Owners To Attend Island Council Meeting
By Michael Ayala

As talk about the possibility of Mackinac Island reducing its ferry services to one line circulates around the village, the Mackinaw City Village Council meeting Thursday, September 2, was packed with concerned residents, business owners, and employees of Shepler's Mackinac Island Ferry. Many said they would not want the Island to reduce services and made plans to attend the next Mackinac Island City Council meeting Wednesday, September 8, at 5 p.m.

Bill Shepler, owner of Shepler's Mackinac Island Ferry, said he plans to attend the Island council meeting to learn more about the city's plans for renewing its ferry franchises.

Last winter, a city attorney said the city could, if it chooses, franchise only one boat line to operate passenger service between Mackinac Island and the mainland, and the city has announced it is investigating the purchase of property from Union Terminal Piers, which owns Arnold Transit, so speculation in Mackinaw City has grown about the economic impact of such moves. Current boat line franchises expire in March.

“The impact of us not being on that dock is like a domino effect. . . . You will lose your rent instantaneously, I will go bankrupt, and I will have 150 employees out of work” if the Island limits itself to one line and does not select Shepler's, Mr. Shepler told the village council.

Several Shepler's employees said it could be difficult finding a job if the ferry line must close, and they would lose their benefits, such as health insurance.

“All we're asking, me and my 150 employees, is support from this community, because you will be affected,” Mr. Shepler said.

Village President Jeff Hingston said he supports the current threeferry system.

“I agree with Mr. Shepler's assessment,” he said. “In my view, one ferry boat line would be wrong for this community and I believe it would be wrong for all the communities involved.”

The village is speaking with an attorney from lower Michigan about what the village could do if the Island reduces the ferry lines, but the council refused to comment further on what is being discussed with the attorney.

“This elimination of ferry boat lines would cause a negative financial impact at many levels, beginning with a loss of lease revenues, possible property tax loss associated with each ferry boat operation, loss of sales for all services to their operations, and loss of jobs and income associated with employees numbering in excess of 250,” Mr. Hingston said.

“These employees won't be spending on needs such as food, beverages, gasoline, and other necessities. The trickle-down effect or fallout from only one boat line is huge. Just the impact on the families of the employees' loss of employment would be devastating. Many of these employees are college students who depend on summer jobs to help see them through their college year.”

Mackinaw City business owner Enzo Lieghio said if the Island limited itself to one line, there would be no imperative for it to provide quality service or competitive prices.

Other business owners attending the meeting said they would also attend the Island council meeting September 8.

Village Plans to Purchase

Parking Lot, Enters Closed Session To Discuss Additional

Property Purchase

A parking lot on Etherington Street may be purchased by the village for $120,000 for use as employee parking. The village issued more employee parking permits than it has parking spaces for this year, Village Manager Jeff Lawson said, prompting the consideration. The property will be purchased only upon review of a clear title, environmental report, and completion of a special assessment.

A special assessment district would be created to pay for the lot and would include the third block of Central Avenue and 100 block north of Louvigny Street, Mr. Lawson said.

The council later entered a closed session to discuss the purchase of additional property. Council members would not comment on where the property is located, how it is zoned, or what it is named.

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