Cle Elum Declares Bankruptcy over $26M Debt
- The city of Cle Elum in Washington filed for Chapter 9 bankruptcy on Tuesday due to a $26 million debt to developer City Heights Holdings.
- The filing followed months of failed mediation and a final settlement offer rejected by City Heights, which then garnished nearly $700,000 of city funds.
- Cle Elum's debt arises from a 2011 development agreement for a 950-home project called Ederra, delayed by disputes over permits and contract terms.
- An arbitrator ordered the city to pay over $22 million plus 12% annual interest and $2.3 million in legal fees, making the debt now nearly $26 million.
- The bankruptcy aims to reorganize payments to protect city services given Cle Elum's $5 million budget and limited resources, though the debt itself will not be erased.
12 Articles
12 Articles
Developer owed $26M by Cle Elum speaks on city’s bankruptcy filing
The City of Cle Elum has filed for Chapter 9 bankruptcy, citing nearly $26 million in debt stemming from a land development dispute with City Heights Holdings (CHH) more than a decade ago. Sean Northrop, CHH land developer, specified how the agreement started and where the dispute between CHH and Cle Elum currently stands on “The John Curley Show” on KIRO Newsradio Wednesday. Cle Elum bankruptcy dispute RELATED STORIES'You aren't Banksy': Graffi…
Cle Elum files for bankruptcy to settle $22 million judgment
The city of Cle Elum has filed for municipal bankruptcy protection, making it only the second city in Washington state history to do so. The move comes after the Cle Elum City Council voted Monday to authorize the bankruptcy, ending several months of mediation talks with a Seattle area developer without coming to an agreement. With one member absent, the Council voted 6-0 to authorize Mayor Matthew Lundh to pursue filing for municipal bankruptcy…

Cle Elum declares bankruptcy over $26M debt
The city of Cle Elum filed for bankruptcy Tuesday after failing to reach a deal with a developer over a $26 million debt stemming from a legal dispute over a long-delayed housing project. Read more...
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