Hill has devoted much of his time in recent months to the waterfront project and the mayor indicated the move is a necessary next step in getting the effort off the drawing board and underway.

"It is now time for us to have someone who can lead this effort on a full-time basis," he said before adding, "Dave has done an excellent job getting us this far, and I am confident we can make even greater progress when he can devote all his energies to this important project."

Hill currently oversees the Engineering Department and the Plans Review and Inspections Department, which will both be transferred to other departments.

The position of chief operating officer will not be filled.

Engineering and Plans Review and Inspections will become a part of the Community and Neighborhood Services Department.

At the same time the Community Development Office will move from its current home in Community and Neighborhood Services into the Department of Finance and Accountability.

Much of the federal grant money the city receives for redevelopment and to help neighborhoods flows into the Community Development Office.

"It is important that we coordinate the use of these funds and leverage these monies with city funds so we can get the greatest benefit of all the taxpayers' money," Haslam said. "The most logical place to do that is the Finance Department."

The mayor said neither the directors of the various affected departments, nor the daily responsibilities of those departments, will change as a result of the reorganization.

The departmental moves will also go into effect on Oct. 9.