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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.
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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...

·Vancouver, United States
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King5 News broke the news in Seattle, United States on Tuesday, June 24, 2025.
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