A state commission has finally approved the City of Hoonah’s request to form a borough. Now, residents of the proposed borough will decide whether to accept it.
On Tuesday, the state’s local boundary commission accepted the petition in a 3-2 vote to annex neighboring areas to create Alaska’s 20th borough.
Last year, the City of Hoonah proposed to dissolve its city government to add more than 10,000 square miles of nearby unincorporated land and water — including Glacier Bay, Chichagof Island, and more — to form one unified, regional government called the Xunaa Borough.
The city says forming a borough would give residents more say in the future development of the region. That is increasingly important as cruise ship tourism continues to boom in Southeast Alaska. The boundary encompasses most of the Huna Lingít historic territory.
On Wednesday, Hoonah City Administrator Dennis Gray, Jr. said the new status would give the communities more local control.
“It’s important because we get to handle our future now. We’re not laying our future on the steps of somebody else,” he said. “We’re being able to make our own decisions and that’s the most important part of that whole piece, is that it’s going to preserve our way of life.”
Commissioner John Harrington voted in favor of the borough, despite some concerns.
“It is not perfect. It is a step in the right direction, but unfortunately, with the communities that were left out, it leaves lots to be desired,” Harrington said during the meeting.
He said he wants to see Gustavus, Pelican, and Tenakee Springs communities eventually added to the borough to streamline how the state administers services. Those communities declined to be included.
The commission’s approval comes despite a recommendation this August by its staff to deny the petition, citing “substantive concerns” with it. They argued the proposal fails to meet state requirements for borough incorporation and doesn’t appear to benefit anyone but the residents of Hoonah. The staff report also argued the proposal trades one local government for another.
The City of Hoonah has about 900 residents. This proposal isn’t the first time it has attempted to create a borough. It’s a plan that’s seen several versions over the last 30 years. The last time Hoonah tried was in 2018. It was denied largely because of opposition from Gustavus, Pelican and Tenakee Springs, which were included in that version of the borough. That’s why this time around, the proposed boundaries didn’t include those communities.
Gray said it’s nice to see the proposal finally move forward — he has been working on it for decades.
“I first started this whole effort when I was a kid out of college in 1997. So, yeah, it’s nice to get across the line,” he said.
Commissioner Clayton Trotter voted in favor of granting the borough. He thought it was a good idea from a business perspective, and didn’t see a downside from a statewide perspective.
“I would say that this would benefit the state of Alaska to go forward with it, and it would benefit it and it would open up an opportunity for a community to grow,” he said. “To me, both economically and in just about every other way.”
Icy Strait Point is a major cruise destination in Hoonah. A new borough would be allowed to collect a 1% seasonal sales tax during the summer cruise season and would likely mean more state funding for the Hoonah School District.
The petition faced some opposition from both individual residents and communities within the region, like Elfin Cove. The Juneau Assembly opposed a portion of the borough because it overlaps with land on Admiralty Island that it once explored annexing. But residents of that area – Funter Bay, Horse Island and Colt Island – were largely in support of the borough because it didn’t levy a property tax.
Following Tuesday’s vote, commission staff will issue a written decision in the next 30 days. Then, the state will hold a special election for registered voters in the proposed region to vote on it. If approved it would be the first new borough since Petersburg in 2013.
