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Mackinac Express, a catamaran passenger ferry owned by the Arnold Transit Co. in the Mackinac Island harbor in 2006. Future of Arnold passenger service is being questioned this year amid reported financial troubles at the company.

(Wikimedia Commons)

Update, 4/25: Arnold promises to resume passenger service 'very soon'

MACKINAC ISLAND, MI — Questions are being raised about the future of Arnold Transit Co. after Mackinac Island's oldest ferry service lost a major client and missed a deadline to declare whether it would operate in 2014.

The Arnold Line may not operate passenger ferry service this summer after losing Mission Point Resort as a client this week, according to sources on the island.

An electricity shut-off at the Arnold dock and ferry terminal has islanders wondering about the financial stability of the ferry service, which has undergone recent turnover among the company leadership.

“There are lots of questions right now about Arnold Transit,” said Melanie Libby, a developer on the island who owns a bike shop at the head of the Arnold dock.

Libby spoke to Matt Stuck, Arnold Line vice president, on Tuesday and was told the ferries would be running freight between the island and its docks in Mackinaw City and St. Ignace this summer, but passenger service was still a question mark.

Libby and partner Ira Green own the land between the dock and Main Street on the island, a parcel that's been a source of controversy in recent months. Arnold pays them to keep access open for passengers and cargo.

“They have a number of issues,” Libby said. “At present, it is the economics of it. They are short on cash.”

'Deep uncertainty' over continued operations

For several months, the city council has been discussing possible impacts on the island economy and operation if the Arnold Line were to close.

On Monday, Arnold Transit Co. missed a deadline to notify the city of Mackinac Island whether it would operate this season. Deputy Clerk Linda Price said Tuesday the city “has no idea when they are going to be running.”

“We are still iced-in and no boat lines are running,” Price said.

Transportation between the island and the mainland has been reliant on air service due to the harsh winter.

There has been recent activity seen on Arnold boats in the icy island harbor. The company fleet includes three catamarans, five traditional ferries and three freight service boats.

Arnold is “planning on running, but we don’t have any details,” Price said. “There’s a lot of people wanting answers and we don’t have them to give.”

Messages left with Arnold Line leaders were not returned Tuesday, April 22.

On Facebook, Mission Point Resort touted a new partnership with Star Line for passenger ferry service this year. Resort managers say they switched guest and freight services to Star Line and Shepler's given the state of flux surrounding Arnold Line's 2014 outlook.

“We did our best to maintain the Arnold relationship,” said Bradley McCallum, resort general manager. "Unfortunately, the management of Arnold Transit conveyed to us deep uncertainty over whether they would continue to operate. With our resort being so close to opening its doors for the season, we needed to do what is best for our guests and our resort, which includes providing strong, healthy ferry service partners.”

Arnold President Brent Rippe told Interlochen Public Radio on Tuesday that the situation was "fluid" and acknowledged some financial difficulties. Rippe was announced as the new Arnold Line president in early April.

The company called it a "move in a different direction" after several years under former owner and president James Wynn, who sparked litigation in 2010 after an attempt to get exclusive ferry service rights to the island.

Under Wynn’s leadership, former Arnold Line corporate parent Union Terminal Piers began selling land on the island in order to raise cash for ferry operations.

Mackinac Island Ferry Capital, an investment group from Cincinnati, Ohio, now controls the company. Arnold Line has been operating since 1878.

"We hope they figure it out," Libby said. "They are still working on the passenger side of things. We all have our fingers crossed."

Garret Ellison covers business, government and breaking news for MLive/The Grand Rapids Press. Email him at gellison@mlive.com or follow on Twitter & Instagram