ESCONDIDO -- Mayor Lori Holt Pfeiler announced Thursday that she will not run for re-election in 2010 and that she has endorsed City Councilman Dick Daniels as her successor.

Daniels will probably be challenged in the 2010 mayor's race by Councilman Sam Abed, who said Thursday that he was "seriously considering" a run for mayor now that Pfeiler will be retiring from politics.

Councilwoman Marie Waldron said Thursday that it was also possible she would seek the mayor's seat, but Waldron said it would take a large number of residents urging her to do so.

Councilwoman Olga Diaz said Thursday there was very little chance she would run for mayor in 2010, explaining that she was still weary from her aggressive run for the council in 2008.

Pfeiler, who has been mayor since 1998 and on the council since 1992, said she had served long enough.

"You only get to hold the reins for so long, and then the community needs a change," said Pfeiler, who made her announcement at a joint press conference with Daniels at City Hall.

Pfeiler, 51, said she planned to seek a job in the private sector that pays more than the Escondido mayor's $53,000 annual salary. But she said financial concerns did not play a key role in her decision.

The mayor said she endorsed Daniels as her successor because he would continue her efforts to improve Escondido's reputation as a sophisticated, business-friendly city.

"I feel confident the issues I've worked so hard for over the past 16 years are just as important to Dick," said Pfeiler, who has served with Daniels since he was first elected to the council in 2006. "I'm looking forward to working on his campaign."

She also stressed that Daniels would strive to unite the community, and steer clear of the divisive politics that have brought turmoil to Escondido over illegal immigration and related issues in recent years.

Pfeiler has previously blamed that turmoil partly on Abed, and on Thursday she said Abed would not be a good choice for mayor.

"He has a totally different philosophy than I do," said Pfeiler, explaining that she disagrees with Abed's overly aggressive approach to fighting illegal immigration and balancing the city budget no matter the circumstances. "I have not supported his positions, so I would not be able to support Sam for mayor."

Abed called Pfeiler's endorsement of Daniels 22 months before the election "self-serving" and inappropriate.

"The voters should decide who will be the next mayor, not Lori," said Abed, who was easily re-elected to a second council term in November. "This is a self-serving attempt to continue her liberal policies by choosing someone who will stick with those policies after she's gone."

Abed, 56, took particular issue with the timing of the decision.

"My priority right now is the city's financial crisis, not an election that is nearly two years away," he said, referring to a $6 million city deficit that has been attributed to plummeting sales tax revenue.

On the other hand, Abed said he was considering a mayoral run even before Pfeiler decided not to seek re-election.

"I've been approached by many community leaders over the last several years about running for mayor," said Abed. "And I am seriously considering it."

Pfeiler conceded that her announcement came unusually early in the election cycle, but she said the timing was prompted by relentless questions this winter about her intentions.

"I'm really not good at hedging, and I haven't been able to say with a straight face that I plan to run," said Pfeiler. "I don't think it's fair to let people believe I am running when I am not."

Pfeiler said she approached Daniels about replacing her shortly after last November's election.

Daniels, 66, said Thursday that he was excited about the opportunity to unite the city.

"Our city can't afford the politics of division that pit one group of residents against another," he said, explaining that he plans to hold several community forums during the campaign with diverse groups from all across the city. "Whatever our current challenges may be, mutual respect and inclusion will make Escondido a stronger community in the future."

It is significantly more risky for Daniels to seek the mayor's job than Abed. Daniels will have to give up his council seat in order to run because his council term expires in 2010, while Abed could remain on the council if he lost because his council term runs through 2012. But Daniels said he thought about the risk and decided to run anyway.

Waldron would also be risking her council seat if she ran for mayor, which she acknowledged was a small factor in her reluctance.

But she said she it was possible she would change her mind "if people continue to ask me to run."

Both Waldron and Diaz said they were not sure whom they would endorse if the mayoral election ends up pitting Daniels against Abed.

Diaz said both men would get a chance to "earn" her vote. Waldron said she was reluctant to take sides two years before an election, especially when she agrees with both candidates on so many issues.

Waldron, who was elected to the council the same day that Pfeiler was elected mayor, said Pfeiler deserves enormous credit and respect for her leadership during the past decade.

"I watched her really grow into that job," said Waldron. "She has served honorably and her strength has always been bringing people together."

Contact staff writer David Garrick at (760) 740-5468 or dgarrick@nctimes.com.