Editing Cle Elum, Washington (section)

===Bankruptcy===

In 2011, the city government approved a development agreement with City Heights, who sought to create a [[planned community]] with 962 homes on {{convert|358|acre|ha}} in the Cle Elum area. City Height announced in 2019 that it would begin construction of the development, named "Ederra", under the existing agreement, while the City of Cle Elum proposed new conditions to address various concerns. City Heights filed a lawsuit against the city government for a breach of the original agreement.<ref name="YHR-Bankruptcy">{{cite news |last1=Kelly |first1=Brian |last2=Rose |first2=Anna |date=January 30, 2025 |title=Cle Elum council votes to seek Chapter 9 bankruptcy |url=https://www.yakimaherald.com/news/northwest/cle-elum-council-votes-to-seek-chapter-9-bankruptcy/article_0beccfbc-d487-5711-b1d6-c7cc20d5fcf3.html |work=[[Yakima Herald-Republic]] |accessdate=February 3, 2025}}</ref><ref name="Times-Bankruptcy">{{cite news |last=Brunner |first=Jim |date=January 8, 2025 |title=Cle Elum considers bankruptcy amid $22M debt in development dispute |url=https://www.seattletimes.com/seattle-news/politics/cle-elum-considers-bankruptcy-amid-22m-debt-in-development-dispute/ |work=The Seattle Times |accessdate=February 3, 2025}}</ref> An arbitrator ruled in November 2024 that the city government owed $22.2&nbsp;million to City Heights for violating the agreement along with reimbursement of legal fees and other expenses.<ref name="Times-Bankruptcy"/> A 20-year payment plan with 6% monthly interest was proposed to cover the debt, which the city government could not pay with its existing revenue sources. As a result, the city council voted to seek [[Chapter 9, Title 11, United States Code|Chapter 9 bankruptcy]] protection on January 28, 2025.<ref name="YHR-Bankruptcy"/> Cle Elum would become the second city in Washington to file for bankruptcy after [[North Bonneville, Washington|North Bonneville]] in 1991.<ref name="Times-Bankruptcy"/>