The Mayor’s Office just released the memo calling for Southeastern Economic Development Corp. President Carolyn Y. Smith to resign that we alluded to in this post earlier today. The letter from Mayor Jerry Sanders and Council members Tony Young, Ben Hueso and Donna Frye reads in its entirety:

We believe that it is in the best interest of the City of San Diego and specifically the communities served by Corporation for Ms. Smith to resign as president of SEDC effective immediately. She has served our community for over twenty years and has shown dedication to the redevelopment process.

If she does not do so immediately, we ask the Board of Directors to terminate her contract immediately at an emergency meeting of the Board.

We feel that these changes must occur immediately so that we can return this agency of City government to its original purpose of serving the communities it was established to serve.

Please contact Jay Goldstone, the City’s Chief Operating Officer, … no later than 5pm today with your chosen course of action.

Smith was given until 1 p.m. to resign before the memo went public.

The call for her resignation is a result of the fallout from a investigation last week that revealed a system of clandestine bonuses and extra compensation given to Smith, her top deputy and other employees without the knowledge of the SEDC board or the City Council.

We’ve placed a call into SEDC and are awaiting response. Stay tuned for more.


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