Jan 10, 2025
Greg Smith, a powerful Republican legislator from rural Oregon, is threatening to sue two public agencies and one public official, saying their actions “destroyed” his reputation and moved him to seek “psychological and medical counseling.” He put the agencies and the official on notice in early December of his intentions, but offered to mediate his claims. He is a state representative from Heppner. Smith said in his notice that he was damaged in September during a public meeting of an obscure public agency called the Columbia Development Authority. Smith holds a full-time job as executive director of the agency. The CDA is charged with transforming a former military base outside of Hermiston into an industrial complex with historic and wildlife preserves. His claims were detailed in what is called a tort notice, issued to the Port of Morrow and one of its elected commissioners, Kelly Doherty. The port released the notice to the Enterprise in response to a public records request. Smith asks for “damages” but cites no specific dollar amount. He also issued a notice to the CDA, but the agency hasn’t released the document and its attorney on public records matters, William Ohle of Schwabe Williamson in Portland, didn’t respond to requests for comment. READ IT: Greg Smith’s claim Smith, 55, said in his notice that he would pursue claims “for denial of his constitutional rights, defamation, invasion of privacy and intentional infliction of emotional distress.” He said he became “physically ill” because of Doherty’s conduct at the meeting. He said he was “suffering from insomnia, nightmares, lack of appetite, depression and hopelessness.” His notice said Smith was forced “to seek ongoing psychological and medical counseling to help recover from the trauma.” Time slips for the month after the meeting show no sick leave taken by Smith. More recent time records weren’t immediately available. Smith didn’t respond to questions about that counseling or other elements of his claim. His attorney, Amanda Gamblin, said in an email that it would be “inappropriate” for Smith to respond to questions because “you are entangled in the potential litigation.” She didn’t elaborate or respond to questions on that claim. “This claim is nothing more than intimidation,” Doherty said in written response to questions from the Enterprise. Smith is about to return to leadership roles on the Legislature’s budget-writing committee and in the House Republican caucus. He is the longest-serving member of the House. House Speaker Julie Fahey wouldn’t address questions about whether Smith shared his condition or if she had concerns. “We won’t be commenting on this matter,” said her chief of staff, Scott Moore. State Rep. Christine Drazan, House minority leader, didn’t respond to telephone messages or emailed questions about Smith. Lisa Mittelsdorf, executive director of the Port of Morrow, also didn’t respond to a telephone message or emailed questions about Smith’s claim. Kim Puzey, executive director of the Port of Umatilla, serves as chair of the Columbia Development Authority board. He confirmed the CDA has received Smith’s notice but said he had been advised by attorneys “not to discuss the matter.” Smith’s tort claim is based largely on the meeting of the development authority board on Sept. 20. At the time, Doherty served as the port’s representative on that board. Doherty confirmed she was notified of the claim but didn’t otherwise address questions. Board members at that meeting questioned Smith about arrangements for a pay raise for himself and two agency employees. They cited a submission to the federal government for grant funding that claimed the board had approved increasing Smith’s pay from $139,000 to $195,000. An investigation by the Enterprise, published before the meeting, established the board had taken no such action. The board did approve the federal grant, a typically routine action. But Smith used that grant approval to increase his pay and direct payroll officials to award him retroactive pay. At the September meeting, Smith acknowledged the grant language was wrong.  “I wish that statement wasn’t in there,” Smith said. “I own it.” The development authority board voted then to rescind the pay raise for Smith. “The motion was made to correct the inaccuracy,” Doherty said. “It was simply an organic function of the board. That’s what boards do.” Smith grew testy with board members after the vote, accusing Tovey of putting on “a show” and falsely claiming that Doherty had led a local recall effort. He also falsely represented to the board that a reporter from the Enterprise sent an email to his wife with personal questions. In his legal claim, Smith said Doherty and two other development authority board members “ambushed” him at the meeting and “made false accusations against his professional integrity and competence.” The other board members he identified were John Shafer, a Umatilla County commissioner, and JD Tovey, interim executive director of the Confederated Tribes of the Umatilla Indian Reservation. Shafer and Tovey didn’t respond to written questions. “I don’t believe that government accountability should be labeled ‘intentionally ambushed,’” Doherty said. “He was asked about statements that were in the federal grant funding documents and compliance issues regarding the federal grant. It was on the agenda.” In September, according to Smith’s claim, “Mr. Tovey wrongly accused Mr. Smith of lying, intentionally falsifying government documents, falsifying time records and suggested that the CDA Board terminate Mr. Smith,” The claim said such accusations had “irrevocably damaged” Smith’s reputation. “Mr. Smith’s reputation was destroyed,” the notice said. In November, Smith was reelected to his House seat. The claim said that Smith suffered “significant economic harm in lost pay, business partners, employees and clients.” Puzey, the chair of the development authority board, said he didn’t know what “business partners” Smith was citing. He said a development authority employee who took a medical leave last fall after the September meeting has decided not to return. Smith may have been referring to clients and business partners of his private company, Gregory Smith & Company LLC. Smith founded the company soon after being elected to the Legislature in 2020. It is best known for contracting with public agencies for services. In August, the firm lost one of its longest-standing clients. Eastern Oregon University terminated its contract for operation of its small business development center and subsequently closed the center. PREVIOUS COVERAGE: Defense Department digging into finances of Boardman public agency run by Greg Smith Turmoil continues around Smith as public officials spar over his performance Smith loses big pay increase, faces salary repayment in controversy over his conduct Greg Smith exaggerates his duty to engineer major pay raise from struggling public agency CONTACT: Editor Les Zaitz – [email protected] STORY TIP OR IDEA? Send an email to Salem Reporter’s news team: [email protected]. A MOMENT MORE, PLEASE – If you found this story useful, consider subscribing to Salem Reporter if you don’t already. Work such as this, done by local professionals, depends on community support from subscribers. Please take a moment and sign up now – easy and secure and only $12 a month: SUBSCRIBE. The post Republican legislator says reputation ‘destroyed’ over his controversial pay raise appeared first on Salem Reporter.
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