The City of Cle Elum is filing for bankruptcy.
The decision was announced by the City Council of the Kittitas County town of roughly 2,500 people at a special meeting on Tuesday.
The council passed a resolution to file for Chapter 9 protections in U.S. Bankruptcy Court on a vote of 4-2.
The action comes on the heels of an arbitration award in excess of $22 million against the city that was granted to a land development company, City Heights Holdings of Issaquah in November, 2024.
The City claims is doesn’t possess the financial means to pay the judgement, but City Heights had offered a payment plan they contend would have allowed the City to settle the award over several years.
The council chose to hire attorneys and consultants in pursuit of bankruptcy over a second option of exploring alternatives to this course.
The council’s vote occurred after a closed-door executive session that was preceded by a period of public comment which included calls for the City to conduct a town hall regarding the proposal.
Several councilmembers were openly critical of City Heights during the meeting, including Steven Harper, Jared Weiss, and Steven Cook who accused the developer of “pillaging the City, down to its office supplies.”
Big companies that survived, and thrived, after bankruptcy
There have been some big name brands that declared bankruptcy and built back, stronger — some with New Jersey ties.
From an automaker to theme park company and mall food court staple, here’s at least six successful restructuring stories.
Gallery Credit: Erin Vogt