06:16 PM PST on Friday, November 21, 2003

By GARY CHITTIM / KING 5 News

GIG HARBOR, Wash. – A shellfish controversy in Pierce County is coming to a head and millions of dollars are now at stake.

It all centers around a $2,500 county lease that led to millions for a local businessman.

The calm waters off Purdy Spit conceal a turbulent legal struggle – at the center of it is Doug McRae.

At this time last year he was cashing in on geoducks. The giant clams are a highly prized delicacy in Japan and business was booming.

KING Geoducks are a delicacy in Japan.

"We had a contract out here signed by five county department heads. It was filed as a complete contract,” said Doub McRae, Washington Shell Fish. Inc.

Then he says the county pulled it all out from under him.

"We have no business now. We're just basically surviving of our savings and refinancing our property,” he said.

"You're mistaken, you don't have a lease, you need to get off the public property,” said Pierce County Executive John Ladenburg, who admits McRae's lease got lost in the shuffle during his transition into office. And since he (Landenburg) never signed it, there was no valid contract to harvest these waters.

But Ladenburg went to McRae with an offer.

"And because you may have been mistaken by something we did, I'll offer to pay all your expenses right now, so you won't lose a nickel," said Ladenburg.

But Ladenburg said McRae rejected the offer and began his million-dollar harvest of publicly owned geoducks.

Mcrae insists he was only following the contract the country drew up and gave him.

So now McRae's barge sits idle off the Purdy Sand Spit.

Now, the county not only wants to close him down, it wants all the money he made off his geoduck sales.

"He gambled. That's the business life. I used to be in private business, and if you gamble, sometimes you lose,” said Ladenburg.

McRae admits he did lose this round but says before this fight is over, he won't be the only loser.

"It has cost the county taxpayers hundreds of thousands of dollars. We are filing suits against the county in the millions of dollar range," said McRae.

All this over an innocent-looking lease for the calm waters of Purdy Sand Spit.

A county panel is reviewing the lease and is expected to make a decision soon.