MACKINAC ISLAND -- Arnold Transit Company and Star Line are proposing a merger to form a new ferry boat operating company called Northern Ferry Company to service Mackinac Island.
The deal involves James Wynn, owner of Arnold Transit and Union Terminal Piers, selling both companies and some properties to the City of Mackinac Island, which would pay for them by issuing public bonds. Arnold and Union would then lease back the property and docks from the city, in exchange for a monopoly on ferry service to the island.
In his merger proposal, Wynn requests exclusive franchise rights to serve the city of Mackinac Island on a 20 year exclusive term and says the merger would provide year-round service at a greatly reduced rate.
In response, the owner of Shepler's Mackinac Island Ferry has filed a federal anti-trust lawsuit claiming Wynn is seeking a monopoly to eliminate competition and force Shepler's out of business.
The lawsuit charges that in reaching the deal with Wynn, Mackinac Island exceeded its governmental authority, and that Wynn violated antitrust laws and Michigan tort law by suggesting, participating in and creating the deal.
On October 20th, each ferry boat line will be given 20 minutes to make a presentation to the city and explain their proposals in detail.
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