THE chief executive of Derby City Council, Adam Wilkinson, is to take voluntary redundancy – leaving the leader of the Tory opposition "saddened and concerned".
Mr Wilkinson's shock departure will cost taxpayers about £140,000 – £100,000 in compensation and about £40,000 pay in lieu of notice.
He was one of the main players behind major city projects like Pride Park's Derby Arena and Infinity Park, Sinfin, which will create up to 8,000 jobs.
Now opposition councillors say they fear the pace of regeneration in Derby will stall with Mr Wilkinson's departure.
And Tory opposition leader Councillor Philip Hickson said he believed Mr Wilkinson's job was being "made impossible" by the current Labour leadership.
Mr Wilkinson will officially leave his post on January 31, but it is understood he will take "special leave" until then and he will not return to the Council House.
A statement from the city council said he had decided to take voluntary redundancy on the back of a need "to reduce the number of senior management roles and reconfigure responsibilities".
The comment has inevitably raised questions over whether the council plans to operate without a chief executive.
The statement added: "In respect of the terms agreed for Mr Wilkinson's exit, the council's external auditors have been informed and are content, as are we, that the value for money test is being met.
"He will receive three months' pay in lieu of contractual notice and a compensation payment of £100,000.
"These payments are well within the affordability test that the council applies when considering all voluntary redundancy applications."
Mr Wilkinson, who may look to take a job in another sector, was on about £160,000 a year, so the three month's pay will amount to about £40,000.
Council leader Ranjit Banwait said: "Adam has served the council and the city for over five years, and leaves a positive legacy of regeneration across the city.
"He has recognised that his departure at this stage will enable the council to undertake a more fundamental review of its options for the future shape of its senior management structure that will be required to meet the challenges that lie ahead."
This is a reference to the authority needing to save £69 million in he next three years.
Mr Hickson said he was "extremely saddened and concerned Adam is leaving".
He said: "Adam is a very talented, capable, and motivated chief executive who has transformed this council from where it was to where it is now.
"I don't feel surprised if Adam doesn't want to be part of the Mickey Mouse administration currently in charge at the Council House.
"The council will now stall and possibly go backwards. Adam raised the profile of the city and to a considerable degree was instrumental in most of the positive things that have happened at the council in the past five years.
"I think the Labour leadership made his job impossible. I think they treated him in a disrespectful and unprofessional way."
Mr Hickson said this had involved moving him out of his office, cutting him out of decision making processes and not inviting him to meetings where he should have been.
Labour group spokesman, Councillor Baggy Shanker said there was "no need to respond to Mr Hickson's comments".
Mr Hickson said he believed the £100,000 seemed a "fairly low" settlement for someone of Mr Wilkinson's calibre.
Liberal Democrat group leader Councillor Hilary Jones said Mr Wilkinson's departure made her wonder if the council might be considering operating without a chief executive.
She said: "It's happened in other councils in the country.
"My guess is that perhaps it might work at smaller councils, a small borough for example, but I think it would be more problematic at a larger council because we've got such a varied range of services."
Mrs Jones added: "He's been a figurehead for the city for many years so I'm sure it will have a negative impact on the city's regeneration."
Neither UKIP city councillor was available for comment.
Mr Wilkinson took over as chief executive from Ray Cowlishaw in 2009, and, according to council figures, his pay has not risen since then – despite agreeing a three-year extension to his contract in May 2013..
He was earning about £18,000 a year more than Mr Cowlishaw though he took a pay cut, thought to be in the region of £10,000, when he left his previous position as interim director of neighbourhood services for York Council.
His focus was to be on regeneration, which had dominated his previous 26-year career in local government and was the reason he was drawn to take up the role.
His tenure in Derby was marred by major cuts to the council's services in the face of austerity. Between 2010 and early December last year, the council lost 1,051 full-time equivalent posts through voluntary redundancy and 153 through compulsory job losses.
And, in December, the authority announced another 256 full-time equivalent posts were to go.
But Mr Wilkinson was heavily involved in a string of major projects aimed at improving Derby. It is a legacy that included the controversial £32 million revamp of the city's Council House and the soon-to-be-opened £27.5 million Derby Arena at Pride Park.
Work has also started on the first phase of Infinity Park, Derby, a 250-acre commercial and technology park aimed at providing a home for high-tech companies, particularly those involved in advanced manufacturing and engineering.
Other significant regeneration moves during his tenure have included the £3 million refurbishment of the former magistrates' court, Full Street.
He also oversaw the £1 million revamp of the point in the city centre where East Street, St Peter's Street and St Peter's Churchyard meet, now known as St Peter's Cross, putting in new paving, lighting and benches.
CITY MORE OPEN ON PAYMENTS THAN WAS DERBYSHIRE COUNTY COUNCIL
THE city council's decision to make Adam Wilkinson's redundancy settlement immediately public is in stark contrast to what recently happened at Derbyshire County Council.
It was finally revealed in June last year that the authority's ex-chief executive, Nick Hodgson, received a £219,000 golden goodbye after he left the authority 12 months earlier.
The Derby Telegraph had been pushing for the figure to be revealed since his departure was first announced.
In April, the Labour-led county council appealed against a decision from the Information Commissioner that details of Mr Hodgson's pay-out should be made public.
The authority had always maintained that the figure would appear in its annual accounts in June as it was obliged to by law.
Mr Hodgson clocked up 38 years at Derbyshire County Council – 16 of them as chief executive.
He was replaced by Ian Stephenson, who is on a lower salary.
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![Job of outgoing Derby City Council chief Adam Wilkinson 'made impossible by Labour', claims top Tory Job of outgoing Derby City Council chief Adam Wilkinson 'made impossible by Labour', claims top Tory]()