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Podcast: News For Reasonable People
Episode: Cle Elum Declares Bankruptcy Over $26M Dispute with Developer
Description: The small city of Cle Elum, Washington has filed for Chapter 9 bankruptcy after losing a legal battle with a developer over a delayed housing project—marking just the second municipal bankruptcy in Washington state history.At the heart of the crisis is a $26 million debt owed to City Heights Holdings, LLC, following a development agreement gone sour. The City says changes in leadership and interpretations of the 2011 agreement led to disputes that escalated to arbitration, resulting in a devastating damages award.