In 2011, Cle Elum signed a 25-year development agreement with City Heights Holdings LLC, run by Issaquah-based developer Sean Northrop, to develop Ederra, a nearly 1,000-home community.
In 2019, Northrop approached the city seeking subdivision permits. By then, most of the Cle Elum City Council had not been around when the agreement was signed. City planning officials insisted Northrop go through a complete planning process, including a public hearing and environmental review.
Northrop turned to arbitration. In November 2024, an arbitrator ruled that the City of Cle Elum had breached the 2011 development agreement and owed the developer $22 million in damages. As a result, in January, the Cle Elum City Council voted to move forward with bankruptcy proceedings.
