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He runs the store/shop (it wasn't until New Leaf that they switched him over to real estate giving the shop completely over to the twins)
He's not running the show thou like he is in New Horizons. He's just the shop owner in AC GC
you'll have Blathers (the museum), the able sisters, you have the post office with cute Pelicans working there, you have a police station with police Dogs, and Tortimer is the mayor he'll appear when you first make a character since you have to talk to him during one of the "missions"/jobs Tom Nook gives you at the beginning and then only appears (i think, could be wrong it's been a while) during special events/holidays
You do work for him VERY briefly. And he does still do your house. But he doesn't own the place.
I'd say he's pretty important, and a lot of old fan comics and Let's Plays about the game basically portrayed him as the dictator running the thing (and Tortimer as a puppet or useless).