"My belief in the mission of the DIA is unchallenged and my passion for the future of downtown is unchanged," Bailey, publisher of the Daily Record, said in his resignation letter to City Council President Bill Gulliford.
Bailey said his resignation would be effective when his replacement is confirmed by council.
Gulliford said Monday morning that he tried to talk Bailey out of resigning when the two spoke last week, but was unsuccessful.
"I think he believes he can be more effective by not being a board member," Gulliford said. "But, by the same token, I sense a certain amount of frustration. Jim is a charge-up-the-hill, want-to-get-it-done kind of guy and there has been a certain slowness to the process and performance to date."
Council members have been critical of the authority's lack of action in its first year and concerned that the Office of Economic Development had been overstepping its involvement with the group.
In a July 24 meeting, Bailey was the only member of the board to vote against allowing OED to negotiate on behalf of the board for six Downtown projects. The OED handles economic development outside Downtown.
The end of Bailey's letter encourages council to "guard the DIA's independence, give the authority the opportunity to succeed, and hold it accountable."
Gulliford said, "It (the board) hasn't been the kind of success people have wanted. Independence is very important, but even so it has to show some results."
He said he thought the authority has more pressure on it than any other Downtown-focused effort in the past, because it "has been done so many times, talked about ad nauseum."
"It's time for the talk to end and action to start … just start off with some successes," he said.
Bailey said he can do that better by communicating with board members, lobbying council members and helping facilitate deals without it being a conflict of interest.
"I don't want anyone to think I am walking away from it," Bailey said. "I am as passionate as ever about Downtown and making it happen."
He said he has an idea of how to spend $4.1 million in earmarked funds for Downtown, but declined to provide details.
Bailey denied that his resignation was to allow him to focus on running for any political office.
"My resignation from the DIA has absolutely nothing to do with my future endeavors," Bailey said.
He was one of four appointments made by former council President Bill Bishop to the inaugural nine-member board.
Gulliford said he has not thought about candidates to replace Bailey and would solicit suggestions from interested parties and the rest of council with the goal of "the quicker, the better."
Downtown Investment Authority board Vice Chair Jim Bailey has resigned from the group, saying he could be more effective as a private citizen.