FILE - (2009) Passengers sitting on benches at Arnold Ferry Line Dock. (Photo by: Jeffrey Greenberg/Universal Images Group via Getty Images)
The State of Michigan has sued to break up an alleged monopolization of ferry and parking services to and around Mackinac Island.
The Hoffman Family of Companies is accused of holding the monopoly. Here’s what to know:
Hoffmann Family of Companies
Big picture view:
Hoffmann Family of Companies is a Florida- based private equity firm controlled by billionaire David Hoffmann.
Hoffmann acquired two ferry companies, eliminating competition and raising prices, the state alleges.
The backstory:
After buying Shepler’s Mackinac Island Ferry in 2022 and acquiring its only remaining competitor, the Mackinac Island Ferry Company (formerly Star Line), in June 2024, Hoffmann gained 100% control of all commercial passenger ferries and docks serving Mackinac Island, as well as roughly 80% of all long-term mainland parking near the Mackinaw City and St. Ignace ports, according to the state.
By the numbers:
Hoffman owns more than 116 parcels of land and 51 buildings in the Straits of Mackinac region, according to the State of Michigan, making it the area’s largest landholder.
Mackinac Island ferry prices
For context:
Part of the island’s draw is its no-car policy. No bridge connects the mainland to the island, so visitors must travel by ferry from Mackinaw City on the lower peninsula and St. Ignace on the upper peninsula.
The state says Hoffman also owns the vast majority of long-term parking near those docks, which most visitors need in order to reach the island.
What they're saying:
"Every tourist, worker, and resident who rides a ferry to the Island must buy a ticket from Hoffmann, and most of them must also pay Hoffmann to park for the duration of their visit," the state says in its lawsuit.
By the numbers:
Despite a Hoffmann executive publicly promising after the 2024 acquisition that pricing "will stay the same", the company aggressively raised costs across the board, the state alleges.
The state says adult round-trip fares were raised by $3 on each line (reaching $39 on Shepler's and $37 on the rebranded Arnold Transit Company) alongside new online "convenience" and booking fees.
Parking rates saw even sharper hikes: daytime parking, which was previously free, now costs $10 to $15, and overnight dockside parking surged by up to 167%, reaching $80 to $130 per night at Arnold.
Mackinac Island lawsuits
Dig deeper:
When the Mackinac Island City Council invoked its 1899 charter authority to freeze fares and parking rates due to the lack of competition, the state says Hoffmann ignored the freeze, sued the city, and explicitly threatened in court filings and April 2026 letters to cease all ferry operations if the city did not renew its franchise agreements on Hoffmann's terms.
Presently:
Attorney General Nessel is suing and asking the court for structural relief, specifically the forced sale of the acquired ferry line, to break up the monopoly and restore competition.
The lawsuit alleges Hoffmann is effectively holding the Island and its economy hostage.
Where is Mackinac Island?
Big picture view:
Mackinac Island is located in Lake Huron in the Straits of Mackinac, between Michigan's Upper and Lower Peninsulas.
By the numbers:
It’s a popular tourist destination, and the state says 1.2 million people are estimated to visit the island each year.
The Source: Information in this article was taken from the State of Michigan, Mackinac Island State Park, the Hoffmann Family of Companies website, and a lawsuit filed by Michigan attorney general Dana Nessel.