Peter Kelly stood in his spacious city hall office, trying to explain why, after nearly a dozen years as Halifax mayor, he had opted not to run again.

"It's an acknowledgment that I screwed up personally," said the 55-year-old mayor, after issuing a statement Wednesday announcing his decision.

He said politics had taken an enormous toll on his private life – that he'd sacrificed his marriage to be the mayor of Halifax. "I can't change the past," he said, looking drawn as he discussed his "90-plus-hour" work weeks, when he said he sometimes slept on his office floor.

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Mr. Kelly's announcement comes during a difficult time. Normally ubiquitous, the mayor had been invisible since The Coast, a free weekly newspaper, published a lengthy story last week about his role as the executor of a $500,000 estate belonging to a long-time friend, Mary Thibeault.

The story alleged that Mr. Kelly took more than $160,000 from the estate and questioned why, seven years after her death, the will has not been settled. There are heirs, some of whom engaged a lawyer to deal with the matter.

In the interview, Mr. Kelly said that it was a "complicated situation" and that it was being handled by lawyers whose direction he will take. "Her wishes will be fulfilled," he said.

Oddly, the interview was conducted standing up in his office, which included a sitting area. "I've always done it that way," he insisted.

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He said he has been weighing the "pros and cons" of re-offering for election for "the last few months ... and more so for the last few days." He thought it was important that he make a "clear statement" about his future, and felt "relieved" after making up his mind.

He said he'd done a "good job" as mayor, but "sometimes the negative overshadows the positive, and I think it's important to get that point out there and be able to acknowledge one's mistakes ... as I'm trying to do and get ready for the future."

Sometimes, he'd focused so much on the job "that everything else suffered," he said, pointing to a section of his office where he would sleep. "But you don't realize it until it goes to the extreme. That's when the marriage piece fails."

Mr. Kelly and his former wife, Nancy, have two sons. They have been split up for several years. He said there was no way he could patch up his relationship but is now working to find "that balance."

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Of his problems, he said "sometimes that's why things are the way they are, because things fell off the table that should have been on the front-burner when all I was focused on was trying to make sure I did the best job as mayor."

Mr. Kelly is a populist politician from a strong Conservative family in Bedford, a Halifax suburb. He has served 27 years in public office and, as mayor, was everywhere in Halifax, attending event after event. Often, he was seen serving up food or tea, leaving the speaking part of the program to another politician. His wife was rarely seen with him.

And he has attracted much controversy, especially for his penchant to hold closed-door meetings. Last spring he took a beating over the so-called "cash-for-concert" scandal, in which it was revealed that for years public funds had been secretly advanced to a music promoter.

He is now having to deal with a three-week-old transit strike, which he said Wednesday is important to get resolved.

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His decision not to seek re-election, which stunned some of his colleagues, now opens up the race for mayor. Former Liberal MP Mike Savage, the son of former premier John Savage, has already declared his intention to run.

In a brief statement Wednesday, Mr. Savage noted Mr. Kelly's "work ethic" and his "commitment" to the municipality.

Although polls had Mr. Savage well ahead, Mr. Kelly said this did not factor into his decision.

His future? There had been rumours that he would run for the Harper Tories, but he dismissed those Wednesday. And there is a vacancy for Nova Scotia in the Senate with the recent death of Fred Dickson.

But Mr. Kelly says it's time now for him to "regroup" and look at "other horizons."