City of Cle Elum, WA passes vote to file bankruptcy…only the second city is WA history to do so.

On Tuesday, January 28th, the Cle Elum City Council voted 4-2 to approve a motion to authorize Mayor Matthew Lundh to file Chapter 9 municipal bankruptcy, and hire John Kaplan as counsel for this purpose.

Poor leadership in Mayor, City Council, and planning positions for many years, who repetitively violated a development agreement and lost in arbitration 4 times.

Developer was recently was awarded a $25M+ judgment against the City. Instead of negotiating or having any substantive conversations with either the Developer or the greater community regarding other options, they are plowing into municipal Chapter 9 Bankruptcy.

Only one other city has filed bankruptcy in all of Washington's history.

In Chapter 9, the debts are not forgiven.

More lawsuits are in play and coming.