Nancy Graham, the president and chief operating officer of the Centre City Development Corp., the city’s downtown redevelopment arm, has resigned effective immediately, a source close to the organization said.

“She will never come back into the office. That information has been communicated to her board. It has been communicated to certain council members, not all,” the source said.

Graham has been on leave in Tennessee, caring for her mother, who has been ill. “She has reassessed her life and priorities and says her first priority is the care of her mother,” the source said.

Graham has come under scrutiny lately for her changing story about her involvement in the negotiations with the developer of a $409 million downtown skyscraper. She was a former business partner with a sister company of Related of California, the developer, and met with the company during the deal’s negotiation process, despite saying she was not involved.

The source said the series of voiceofsandiego.org stories highlighting Graham’s relationship to the developer were not the primary reason for her departure. “While I do not think it is directly related, it was part of her consideration because she just didn’t want to have to deal with these issues any more,” the source said.

Graham’s resignation comes less than 24 hours after Carolyn Y. Smith, the president of the city’s other nonprofit redevelopment arm, Southeastern Economic Development Corp., was fired by her board of directors following a voiceofsandiego.org investigation that revealed a clandestine system of bonuses paid to SEDC employees.

ROB DAVIS

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