The Brief
- Cle Elum filed for Chapter 9 Bankruptcy due to a $26 million debt from a legal dispute over a delayed housing project.
- The city council voted unanimously for bankruptcy to protect essential services and financial stability.
- The city may consider tax increases to manage the debt, while negotiations with City Heights Holdings continue.
CLE ELUM, Wash. – A nearly $26 million debt from an intense legal dispute over a delayed housing project has forced the City of Cle Elum into bankruptcy. Mayor Matthew Lundh said the decision was not made lightly when filing for Chapter 9 Bankruptcy on Tuesday.
The Cle Elum City Council voted unanimously on Monday to proceed with the bankruptcy filing.
“For months, we pursued every reasonable avenue to reach a fair and responsible settlement with City Heights. Unfortunately, we were unable to do so. Our priority continues to be protecting Cle Elum’s residents, essential services, and our financial future. Chapter 9 allows us to do just that,” said Lundh.
The backstory:…