Tensions between the Olalla Bay Market and Kitsap County have hit a boiling point after a series of alleged false reports and subsequent actions from the county, including the brief stoppage of food service and the mandated removal of a concrete garden structure, led the establishment’s owner to file a tort claim for $35 million.

Business owner Gregg Olsen and his family purchased what would become the Olalla Bay Market in February of 2021, and it opened in early 2023. The community of Olalla demonstrated “overwhelming support” for the work put into the business, especially after a 2022 fire, he said.

However, Olsen said there have been numerous complaints from the county, law enforcement and Kitsap 911 dating back to 2021. The complaints have resulted in lost revenue and a tarnished public image, he added.

“From the beginning, and up to this filing, we have been the target of hundreds of baseless and egregious complaints…,” Olsen wrote in a 35-page document that lays out his reasons for filing a tort claim of $35 million against Kitsap County Aug. 2. The total is made up of a $10 million claim for financial losses and $25 million in punitive damages.

County officials would not share their side of the story regarding the claim. “We have received a torte claim relative to the Olalla Bay Market. The county generally does not comment publicly on damage claims or pending litigation,” county public information officer Krista Carlson says in a statement.

Olsen claims a public works employee and his spouse, who neighbor the market, are behind several of the complaints, alleging they took on false personas and have additionally “misrepresented themselves” as the Olalla Neighborhood Association to make the complaints appear more widespread.

The county’s lack of action to investigate the conduct of the employee or the reports was a major reference point in the claim. “Despite providing detailed information and expressing repeated concerns over a three-year time period, no substantive internal investigation was initiated to explore the validity of my concerns or to scrutinize the actions of a specific county employee and others at the county assisting the employee in his efforts to harm and defame,” Olsen writes.

The allegations in the claim are directed at the county commissioners, the Department of Community Development and the Public Works department for what Olsen called “continuous harm inflicted upon Olalla Bay Market and our family due to these unresolved and mishandled administrative actions.”

Among the officials listed in the complaint is Commissioner Charlotte Garrido, whom Olsen alleges has participated in collusion with the employee and his spouse. Documents collected through public records requests allegedly reveal a “deeper, hidden relationship” that consisted of after-hours in-person and phone communications. “This collusion and concerted effort between the commissioner and the county employee and his spouse facilitated a malicious campaign against Olalla Bay Market and our family,” he said.

Gariddo was unavailable for comment.

Two key events in 2024 made up the final steps toward the filing of the claim. The first was a March 20 order from the county’s DCD assistant director and chief building official to cease on-site food service and live music. The order, which stated the property’s use as a restaurant was not actively an approved function, was allegedly forwarded to the county employee and his spouse.

The letter also triggered a response from the state Liquor and Cannabis Control Board, and alcohol sales were briefly paused.

Olsen alleges that the DCD later said there had been a “miscommunication,” and the market could serve food. They resumed selling alcohol as well after it was affirmed the market had provisional approval to function as a restaurant. “However, this ‘miscommunication’ had an enormous impact, leading to significant financial losses and the layoffs of four full-time employees,” Olsen said. “Public perception has been further skewed to believe Olalla Bay Market remains closed for food service, exacerbating financial strains.”

Complaints also led to the removal of an $8,000 garden from the corner of Crescent Valley and Banner roads. The garden had been inspired by the presence of a large pothole at the time of the market’s purchase and had been intended to function as a priority of safety for patrons, drivers and pedestrians. “We constructed the planter (or rain garden) to guide drivers to make the turn at a safer speed,” Olsen said.

Persistent grievances from the employee and his spouse continued. Complaints that the garden interfered with their access to a private road leading to their driveway and that it created a safety hazard eventually led to a county order for the garden’s modification or permanent removal from the spot.

A statement from the county around the time of the April 8 demolition read, “Without obtaining the required right of way permit, a 4-foot-high planter was constructed in open county right of way.” It “poses both visibility and safety concerns.”

The statement was contradictory to initial guidance that no such permit was required, Olsen said. Furthermore, he said he and others at the market were instructed to not approach the media with their concerns.

A more common complaint has been the market’s patrons parking at the nearby boat launch. Olsen said an agreement was reached with the Olalla Bible Church in March. However, church pastor Dave Campbell received a phone call March 25 that was alleged to be a call of intimidation and threats against the church for making the agreement. Olsen alleges the phone number from that call matches the number of the county employee.

The filing of the tort claim signaled the start of a 60-day period in which an agreement between Olsen and the county could be reached before further action is taken.

Some community members have started a petition in the days following the filing. Over 1,000 signatures have been collected in support of the market.