Lisa Urias: Head of Arizona Office of Tourism resigns; state lawmaker calling for conflicts of interest probe

Arizona tourism director resigning from office

The resignation of Lisa Urias comes on the heels of reports that pointed to potential conflicts of interest regarding contracts awarded by the Arizona Office of Tourism. FOX 10's Nicole Krasean has more.

PHOENIX - Arizona's tourism director has abruptly announced her resignation, effective Dec. 4th.

Lisa Urias' resignation comes on the heels of an article released by the website Arizona Agenda on Nov. 21 that pointed to potential conflicts of interest regarding state contracts awarded by the Office of Tourism. These allegations stem primarily from a bid given for a new state logo design to the brother of the CEO of Urias Communications, an agency founded by Lisa Urias herself in 2006.

That brother worked on the design with a separate graphic design company, but the connection has one state lawmaker calling for a deeper investigation.

"I wanna know why it costs $700,000 to do a logo," said State Rep. Teresa Martinez (R-Dist. 13).

State Rep. Martinez said she is calling on the state's Attorney General, Kris Mayes, to investigate potential conflicts of interest tied to state contracts for Urias Communications, Urias founded in 2006.

"We're just looking for facts," said State Rep. Martinez. "The people expect us to govern. They expect us to do it efficiently and economically. Paying $700,000 for a logo is completely inappropriate. I mean, we could do a contest for free and say 'hey, design a logo for the Office of Tourism."

One of those contracts shelled out $700,000 for a state rebranding effort, paying over $27,000 to the brother of the current CEO of Urias Communications. Urias has since penned a resignation letter to Governor Katie Hobbs, saying the claims are ‘categorically false,’ and that neither Urias Communications nor herself have received any financial benefit from state projects.

Governor Hobbs, meanwhile, addressed the allegations on Nov. 22.

"Anyone who has the privilege of serving the public needs to be above reproach, and that's why I accepted her resignation this morning," said Gov. Hobbs. "This appearance of conflict is not acceptable."

Despite Urias' resignation, State Rep. Martinez says the investigation will go on ... And will dig even deeper.

"I have since heard there are other avenues that I should be looking at, so today, I will be filing a public records request officially for the Office of Tourism and the Office of the Lottery," said State Rep. Martinez.

As of Nov. 22, we have yet to receive any official statement from AG Mayes regarding the request for an investigation into Urias and the Office of Tourism.