Where does the deputy mayor’s resignation leave DC economic development?

With a major bank collapse and a variety of leadership changes, March has completely changed DC’s economic development climate.

Immediately following the demise of Silicon Valley Bank, which boasted some local influence, a municipal government agency with strong links to DC’s startups endured a pretty serious blow. John Falcicchio, the Deputy Mayor for Planning and Economic Development (DMPED), resigned from his post amidst a sexual harassment investigation. And he’s not the only leader from a key economic development force to leave their job in March.

All in all, startup leaders and small business owners might now feel a little rattled and wonder where to turn. Here’s everything we know so far.

The fall of Falcicchio

Late last week, the Mayor’s Office announced that Falcicchio, who had been deputy mayor since 2020 and Mayor Muriel Bowser’s right-hand man, would leave his post and transition to the private sector. In his stead, DC CTO Lindsey Parker would take over his role of chief of staff to Mayor Bowser while Keith Anderson, previous director of DC’s Department of General Services (DGS), was named the interim deputy mayor.

The situation devolved after the weekend. On Monday, Mayor Bowser announced that an investigation into Falcicchio was launched — though she did not specify about what. Later that day, attorneys Debra Katz and Kayla Morin released a statement saying they were representing a DC employee who reported “serious allegations of sexual harassment” by Falcicchio. The statement said that this behavior is longstanding.

“Our client is courageous. She came forward to ensure accountability and protect other women,” the statement from Katz and Morin reads. “Given the gravity of our client’s allegations — which involve unwelcome advances and sexual contact — we ask the media to respect her privacy.”

On March 31, a second complaint was filed against Falcicchio, according to Katz and Morin. In a written statement, the law office announced that a second employee of the district brought forth serious sexual harassment allegations by the former deputy mayor.

“Her allegations are extremely disturbing and reflect a longstanding pattern of sexual harassment and predatory behavior by Mr. Falcicchio,” the statement reads.

The Office of the CTO, DMPED and the Mayor’s Office of Legal Counsel all declined to comment further on the news.

Bowser said at a press conference Monday morning that the investigation does not involve “allegations of improprieties related to business transactions.”

Another alleged wrinkle emerged on March 17 when NBC4 Washington journalist Mark Segraves tweeted that Mayor Bowser actually knew about the allegation before Falcicchio’s departure. According to Segraves, her staffers were calling journalists to correct statements she made during Monday’s press conference.

DC @MayorBowser knew of allegation of sexual misconduct by @falcicchio more than a week before his resignation. Complaint lodged March 8. Bowser notified that night. Bowser orders investigation March 9. Falcicchio resigns March 17 @nbcwashington pic.twitter.com/xGBZe0QBTb

— Mark Segraves (@SegravesNBC4) March 21, 2023

Bowser spokesperson clarifies that the mayor misspoke at press conference when saying she learned about allegations only a few days before announcing Falcicchio’s departure. Staff called reporters today to correct the record. @nbcwashington

— Mark Segraves (@SegravesNBC4) March 21, 2023

Over the years, Falcicchio has been a well-known face on the local startup and entrepreneurial scene.  He partnered with the likes of WeWork, Google and the local business improvement districts to train tech workers and develop return-to-work policies. He was also involved in establishing DC’s Inclusive Innovation Equity Impact Fund for entrepreneurs, the Small Business Bond program and the mobility innovation district.

Who else resigned this week?

In addition to Falcicchio, several other prominent DC-area officials and leaders stepped down from their posts. Donna Cooper, Pepco’s regional president, will be stepping down from the company next month. Cooper is also the co-chair of the Washington DC Economic Partnership’s (WDCEP) board of directors. The other co-chair was Falcicchio, although WDCEP’s website currently lists Cooper as co-chair alongside Falcicchio’s interim replacement Anderson. WDCEP spokesperson and The Riddle Company CEO Catherine Timko did not immediately confirm if Cooper and Falcicchio had officially vacated their board roles.

WDCEP also lost its longtime CEO. On March 15, Keith Sellars announced that he would depart the partnership in April, though he has yet to offer a reason. In July, Sellars would have celebrated 20 years at the organization; he began working at WDCEP in 2003 and took over as CEO in 2011. Chad Shuskey, the organization’s senior VP of programs, will serve as interim president and CEO.

“It has been an incredible honor to work with the WDCEP and the Executive Office of the Mayor, through the Deputy Mayor of Planning and Economic Development,” said Sellars in a statement earlier this month. “I love this organization and the District of Columbia. I am grateful for having the opportunity to work with so many extraordinary individuals, including my team and the WDCEP board. I am proud to have been integrally involved in the positive economic and social transformation of the District of Columbia.”

Who are the replacements?

Parker, the aforementioned CTO-turned-chief of staff, will likely be familiar to Technical.ly readers. She became deputy chief of staff to Mayor Bowser in 2015 before being named CTO in 2019 and assistant city administrator in 2022. She’s headed broadband initiatives and a $1 million redesign of dc.gov.

Interim Deputy Mayor Anderson took on the role of DGS director in 2018; the department primarily builds and maintains the district’s real estate portfolio. However, a report released last November found that DGS had “serious shortcomings” in its management of work orders. Before general services, Andersen was the director of DC Parks and Rec and the Department of Energy and Environment.

Despite these top-level changes, Mayor Bowser has said that the work of DMPED and other agencies will continue.

“There is no reason for our important work on behalf of the residents of the District of Columbia to slow down,” she said in a statement. “I have every confidence in my new Chief of Staff, Lindsey Parker, and in our Interim Deputy Mayor, Keith Anderson and in the 37,000 employees of DC Government to keep us moving ahead.”