The Newsfeed: Inside Cle Elum’s yearslong development ordeal

After almost two decades of planning, complications with a housing developer have left the small Central Washington city on the brink of bankruptcy.

Paris Jackson

Shannen Ortale

Paris Jackson Shannen Ortale Jun 11, 2025

Feb 28, 2025

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                <h1>The Newsfeed: Inside Cle Elum’s yearslong development ordeal</h1>
                <h2><p>After almost two decades of planning, complications with a housing developer have left the small Central Washington city on the brink of bankruptcy.</p></h2>
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               <p>By <a href="/author/paris-jackson/">Paris Jackson</a></p>  <p>By <a href="/author/shannen-ortale/">Shannen Ortale</a></p> 
              <p><time datetime="2025-02-04T05:00:00-08:00">Feb 28, 2025</time></p>
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            <p>The City of Cle Elum <a href="https://www.cascadepbs.org/politics/2025/02/how-22m-judgment-against-cle-elum-pushed-city-bankruptcy">is officially considering bankruptcy</a> following a long-running conflict with a Washington developer over a massive real estate development expected to be built in town.</p><p></p>
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<p>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.</p><p>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.  <br>  <br>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.</p>
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The City of Cle Elum is officially considering bankruptcy following a long-running conflict with a Washington developer over a massive real estate development expected to be built in town.

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.

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By Paris Jackson

Paris Jackson is the host of The Newsfeed. Before joining Cascade PBS she was an anchor/reporter for KOMO-TV in Seattle. She’s won Emmy and Associated Press awards for her work.

By Shannen Ortale

Shannen Ortale is a producer at Cascade PBS. She formerly worked as a freelancer & film festival programmer. She also served as a producer & educator for community media & public television in Boston.