Tourism Director Quits Amidst Controversial Conflict of Interest Scandal

The Arizona Office of Tourism has found itself in turmoil following the abrupt resignation of its head, Lisa Urias, over potential conflicts of interest regarding a $700,000 expenditure for a new logo.

Urias submitted her resignation to Governor Katie Hobbs on Friday, just hours after House Majority Whip Teresa Martinez called for an investigation into the spending, which involved Urias Communications, the firm owned by Urias.

Despite claims of severed financial ties with the company, Urias acknowledged receiving a stipend from the firm, the exact amount of which remains undisclosed.

Governor Hobbs emphasized the need for public officials to maintain integrity, stating, “Anyone who has the privilege of serving the public needs to be above reproach.”

She accepted Urias’ resignation with a firm stance, declaring, “This appearance of a conflict is not acceptable.”

While Hobbs sidestepped questions about the appropriateness of spending $700,000 on what critics deemed a logo redesign, she maintained that the primary issue at hand was the alleged conflict of interest.

Political reactions were swift; Senate President Warren Petersen stated the chances of Urias being confirmed by the Senate were “zero.”

Urias reflected on her predicament in her resignation letter, responding to what she described as unfounded and false allegations related to the financial management of the rebranding project. She insisted that neither she nor her firm had benefited from the project.

Yet, she acknowledged that the ongoing allegations would hinder her chances for Senate confirmation.

Although Hobbs had not initially heard about Martinez’s investigation request, Martinez asserted that the resignation would not deter her from seeking scrutiny from Attorney General Kris Mayes and Maricopa County Attorney Rachel Mitchell.

The controversy intensified with reports that Urias recommended artist Kevin Coochwytewa, who subsequently earned $27,500 for the logo design, raising eyebrows due to family ties with Jason Coochwytewa, Urias’ successor at Urias Communications.

Martinez pointed to the optics of the situation, asserting that even if Urias’ firm did not benefit directly, the appearance of a conflict still existed.

As Urias departs from her $205,000 position, Martinez stressed the need for answers regarding the costs of the logo and the rationale behind hiring an external firm.

“This is government bloat,” she remarked, highlighting concerns of wastefulness within the project.

In defense of the spending, Josh Coddington, the public information officer for the Office of Tourism, argued that the logo was only a part of a broader rebranding initiative, which included a comprehensive “discovering Arizona listening tour.”

Coddington noted that the contract encompassed work that went beyond the capabilities of the office, emphasizing the year-long effort to collect input from Arizonans about their experiences and expectations for the state’s image.

Governor Hobbs previously praised the new branding initiative, claiming, “Arizona deserves a brand as vibrant as its people.”