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Jack Kelly retired as Jersey City's business administrator on Aug. 1.

(Jersey Journal file photo)

Jersey City’s business administrator abruptly retired at the end of last month, leaving a vacancy in one of the city’s most vital positions.

John “Jack” Kelly, who was hired in May 2010 and earned a $134,605 salary, retired as of Aug. 1. Kelly has been a public employee for almost 33 years, and is expected to make a roughly $94,000 annual pension, according to state Treasury spokesman Bill Quinn.

An ally of former Mayor Jerramiah Healy, Kelly became chummy with Mayor Steve Fulop after Healy lost the May 14 mayoral contest, even visiting Fulop’s victory party that night after Healy conceded defeat. Kelly was expected to stay on as business administrator for at least a few months.

Before the May election, Fulop and Kelly had a publicly contentious relationship, often trading barbs at City Council meetings. In August 2010, Fulop tried to have Kelly removed because Kelly remained a finance director for the City of Orange Township even as he helmed Jersey City's budget office (Kelly no longer works for Orange).

"Directors serve at the pleasure of the mayor," said city spokeswoman Jennifer Morrill when asked why Kelly and the city parted ways. "While we appreciate the work Jack Kelly has done for the city, the timing of his departure made sense for both the Mayor and Jack.”

Kelly, who also made $26,000 as a part-time tax assessor for Caldwell, is retiring with lifetime health benefits courtesy of city taxpayers. Though the council in 2010 banned non-unionized employees from receiving lifetime benefits for anyone who didn’t work for the city for more than 25 years, Kelly was awarded lifetime benefits back in 2010.

Morrill noted today that Fulop voted against Kelly’s appointment at the time.

Assistant Business Administrator Robert Kakoleski will serve as acting business administrator until Kelly’s successor is appointed.