The council received Mr Skelt’s resignation last night.
Documents showed Cr Skelt was the subject of a sexual harassment complaint from an 18-year-old female staff member before his departure as manager of ILT Stadium Southland.
The complaint included an allegation Cr Skelt asked the stadium staff member if she would be keen to do jelly wrestling naked.
Invercargill Mayor and stadium trustee Nobby Clark was informed of the incidents in a resignation letter in February, and worked to resolve the complaint by issuing a "serious warning" to Cr Skelt, directing him to get psychological counselling and closely monitoring his behaviour.
He also offered the teenager $3000 to cover lost income, counselling for the trauma and the option of working somewhere else at the stadium or at ILT.
Council chief executive Michael Day said following the resignation a by-election would be held "in due course".
Mr Skelt and his family did not wish to comment, he said.
Councillor Ria Bond, who had said she could not continue to work with Cr Skelt, welcomed his decision to step down.
''I think Nigel resigning was the only move that he could do. He lost all of his credibility for his role. I am absolutely pleased that he used his common sense and had the graciousness to do the right thing.
''That means I don't have to resign because I have a lot work to do on the council to get projects over the line.''
Deputy mayor Tom Campbell agreed.
''I think he's made the correct decision. I don't have anything more to say than that.
''No-one on council could have required him to resign from his role. He was democratically elected and had the right to stay. However. . . he needed to think about whether he still had the trust and confidence of the electorate. So he has decided to resign, and I think that was a great choice."
Cr Darren Ludlow believed this was the only outcome.
''It was inevitable. Even though what he's alleged to be involved in wasn't a council thing, that has reflected poorly on us. It would have been difficult for him to carry on.''
Cr Skelt was the highest polling councillor at the 2022 elections and was also leading one of the biggest council projects — Project 1225 — which will see the construction of a new Southland Museum and Art Gallery by December 2025.
