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Development Officer's Resignation Catches San Jose By Surprise

SAN JOSE (KCBS/AP) - San Jose City Hall was buzzing after the abrupt resignation of the city's chief development officer, Paul Krutko.

KCBS' Mike Colgan Reports:

"I think it surprised everybody in the building," offered Mayor Chuck Reed.

"It was a shock to me," added councilwoman Nancy Pyle. "I think Paul just needed some personal time. He's going through some pretty tough times right now and he needs time to heal."

City officials on Wednesday announced Krutko's decision to leave his position after 8 years. They also released his resignation letter in which Krutko simply said he was moving on to "other challenges" and would continue his career elsewhere.

Krutko declined to elaborate on his decision when reached by local media.

Krutko worked on high-profile projects such as the Earthquakes soccer stadium and a proposed downtown ballpark. There were suggestions recently that his office be folded into another agency over concerns about its budget.

"I will miss Paul terribly, but I have to tell you that the team that Paul put together is phenomenal. It is absolutely great and I know they're going to prevail," offered Pyle, who also served as chair of the city's economic development committee.

"Paul is very involved in plans to expand the convention center and that will be moving forward," declared Kim Walesh, who assumed the position of acting chief development director. "We are working with the airport on attracting new air service to our beautiful new airport. And we continue to work on the mayor's green vision and attracting clean tech companies to San Jose, and there continues to be a lot of exciting work in that area."

Friday was expected to be his last day.

(© 2010 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)

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