Appeal of state commission decision could halt vote to approve Xunaa Borough

The City of Hoonah. (Courtesy/Local Boundary Commission)

The filing period to run for an elected position in Southeast Alaska’s proposed Xunaa Borough closes on Friday. 

But, a pending appeal of a state commission’s approval of the new borough could halt the special election scheduled this July, when residents will be asked whether to create Alaska’s 20th borough. If approved, it would be the first new borough created in Alaska since Petersburg in 2013.

The state’s local boundary commission approved the City of Hoonah’s request to form a borough late last year. This isn’t the first time the City of Hoonah has tried to create a borough. It’s a plan that has seen a handful of different versions over the last three decades.

The proposal involves the City of Hoonah dissolving 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.

The proposed Xunaa Borough Boundary. (Local Boundary Commission)

Hoonah city officials say that forming a borough would give residents more say in the future development of the region. A new borough would also 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.

But, not everyone is on board with the plan — a recently filed appeal and motion to stay could halt the election.

The communities of Tenakee Springs, Pelican, Gustavus and Elfin Cove first filed formal requests for the commission to reconsider its decision to approve the borough last year.

They cited “substantial procedural errors” and argued that their exclusion would deny them a say in regional decision-making, among other concerns.

The commission’s approval last year also came despite a recommendation by staff to deny the petition, also citing substantive concerns with the plan.

Commission members took up the request to reconsider earlier this year but maintained their original decision. Then, in April, the communities filed an appeal and a motion to stay – that would pause any actions related to the election while the appeal is still pending. 

The judge has not yet ruled on whether to grant or deny the stay while the appeal is pending. A spokesperson for the state’s division of elections said they could not comment on how that might impact the current election timeline.

As it stands, the special election ballot will ask voters whether the borough should be formed and if there should be a 1% seasonal sales tax. It will also ask voters to elect a seven-member borough assembly, including a mayor, and a five-member school board.

The election will be conducted entirely by mail. Ballots will be sent to registered voters on or before June 23 and must be postmarked or returned by July 15. 

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