Item description:

Go out the door (right of screen), and talk to the policeman

Use the official pass from your inventory on the policeman

Watch the humorous cutscene that ensues afterward
**** "The Castle" **** Trophy Will Pop On The Next Scene

Once in control of Kate again....

Run left past the merchant and citizens, and all the lobster traps

Keep going until you see a path leading right

You'll find a door that's locked, and a staircase next to it

Go up them and talk to the fisherman about the monster

After the conversation the "The Valsembor Horror" trophy will pop