State Attorney General Dana Nessel filed a lawsuit on Tuesday seeking to dismantle what the State of Michigan calls an illegal monopoly on ferry and parking services serving Mackinac Island. The suit targets the Hoffmann Family of Companies, a Florida‑based private‑equity firm led by billionaire David Hoffmann, which the state says now controls every commercial passenger ferry and the majority of long‑term parking near the island’s two mainland ports.
How the monopoly formed
According to the complaint, Hoffmann first entered the market by purchasing Shepler’s Mackinac Island Ferry in 2022. In June 2024 the firm acquired the island’s only remaining competitor, the Mackinac Island Ferry Company (formerly Star Line). Those two purchases gave Hoffmann 100% ownership of all commercial ferries and docks that serve Mackinac Island, as well as roughly 80% of the long‑term parking facilities in the Mackinaw City and St. Ignace areas.
The state also points out that Hoffmann now owns more than 116 parcels of land and 51 buildings throughout the Straits of Mackinac region, making it the largest landholder in the area.
Price hikes after the acquisitions
State officials allege that, despite an executive promise after the 2024 acquisition that pricing “will stay the same,” Hoffmann has raised fees across the board. Adult round‑trip ferry fares increased by $3 on each line, bringing the price to $39 on the Shepler’s route and $37 on the rebranded Arnold Transit Company line. In addition, the company added new online “convenience” and booking fees.
Parking rates have risen even more sharply. Daytime parking, which was previously free, now costs between $10 and $15 per day. Overnight dockside parking surged by up to 167%, with nightly rates climbing to $80‑$130 at the Arnold facility.
Local government pushback
When the Mackinac Island City Council invoked its 1899 charter authority to freeze ferry fares and parking rates because of the lack of competition, the state says Hoffmann ignored the freeze, sued the city, and even threatened in court filings and April 2026 letters to cease all ferry operations unless the city renewed its franchise agreements on Hoffmann’s terms.
What the lawsuit seeks
Nessel’s complaint asks the court for structural relief, specifically the forced sale of the acquired ferry line, to break up the monopoly and restore competition. The filing argues that Hoffmann’s control is effectively holding the island’s economy hostage, harming tourists, workers, and residents who must rely on a single provider for both transportation and parking.
Why this matters for Michigan families
Mackinac Island draws roughly 1.2 million visitors each year, many of whom are families seeking a car‑free vacation experience. The alleged monopoly threatens to make that experience more expensive and less accessible, undermining a cherished part of Michigan’s tourism heritage.
The lawsuit underscores the state’s commitment to protecting consumers and preserving fair market competition—principles that align with traditional family values and the constitutional right to free enterprise.
Next steps
The case will proceed in the Michigan Court of Appeals. If the court orders a divestiture, other ferry operators could re‑enter the market, potentially lowering prices and expanding choices for island visitors.
State officials have pledged to monitor the situation closely and to work with local leaders to ensure that any settlement protects both the island’s unique character and the economic well‑being of Michigan families.
Original reporting: Warren | FOX 2 Detroit — read the source article.
