What’s at the root of a growing rift between an iconic Woodinville garden shop and the downtown developer?

With the poinsettia tree up, and shoppers bustling through the store looking for the perfect gift — it's beginning to look a lot like Christmas at Molbak's Garden and Home in Woodinville.

Over the last six decades, the store has grown into a go-to destination, bringing plant lovers together. When founders Egon and Laina Molbak opened their production greenhouse in 1956, Woodinville was just a rural, unincorporated part of King County.

In time, a city sprung up around the garden center, says Molbak's CEO, Julia Kouhia.

"It's not because we put a garden center in the middle of Woodinville, it's that a whole town grew around us," Kouhia said. "And I think one of the biggest challenges now for independent garden centers is being able to stay close to that urban center."

As KUOW reported earlier this week, Molbak's has been embroiled in a public PR war with the developer they had spent the last 15 years collaborating with on a plan to completely re-imagine downtown Woodinville.

RELATED: Woodinville staple Molbak's says its been pushed out of major development project

It's a confusing and evolving situation, because each side has pointed fingers about who is to blame.

Molbak's says their development collaborator, Green Partners, forced them out of the deal.

In a response to KUOW inquiries, Cascade Management Company, representing the developer Green Partners, said in a statement that the company was "surprised" by Molbak's statement, saying "we have no plans to remove Molbak's Garden + Home from its current location."

Their statement also painted Molbak's as the party that ended talks.

"While Cascade is no longer planning to develop the Gardens District, we had been negotiating with Mr. Molbak toward the inclusion of his family’s business as a key feature of a possible future Gardens District," the statement reads. "However, Mr. Molbak upended the discussions even in the face of Cascade’s offer of concessions, including free rent. We expect that the Gardens District will serve the needs of Woodinville, regardless of what Molbak’s decides is in its interest."

The situation in Woodinville has gotten messier than a vegetable garden after a bunch of rabbits moved in, and now, the city council and mayor are stepping in to try to bring both parties back to the table.

But even the Mayor Mike Millman doesn't have a clear picture of what's happened between Molbak's and the developers.

Millman says that when the council approved the development agreement back in June, they did so understanding that Molbak's would be included in the overall vision for a new downtown.

"That's how important it is to Woodinville," Millman said

Millman speculated that economic conditions could have played a role in developer Green Partner's announcement that they are no longer planning to develop The Gardens District with Molbak's.

Early renderings of the new development — called "The Gardens District" — showed new space for retail, restaurants, and over a thousand new housing units. Millman hopes that Cascade Asset Management Company, which represents Green Partners, will revise their development plans, instead of scrapping them completely.

"This is the heart of our downtown," Millman said. "This is really important to the city of Woodinville and the outcry from residents, as you can imagine, is huge. Because this is a big part of what Woodinville is and we want to keep Molbak's here."

Listen to the full interview with Molbak's CEO Julie Kouhia and Woodinville Mayor Mike Millman by clicking the play button at the top of the story.