By Matthew Holloway |
Arizona Republicans raised serious allegations Thursday around Democrat Gov. Katie Hobbs’ approval of a $700,000 upgrade of the state logo by Urias Communications, owned by the brother of Office of Tourism Director Lisa Urias. On Friday morning, the Governor’s office announced that Urias would resign. Hobbs told reporters, ”This appearance of conflict is not acceptable.”
Arizona State senator Jake Hoffman laid out his allegations in a lengthy post to X in which he cited a report from Arizona Agenda. The Agenda reported that the Arizona Office of Tourism spent a sum of $700,000 originating from COVID-19 federal relief funds “on 57 in-person and digital listening sessions across the state, not to mention the $27,500 that went to the brother of the CEO of Urias’ marketing agency. He helped work on the logo with a separate graphic design company.”
Hoffman wrote, “’And of all the artists in the state who could have drafted that logo, the contract just happened to go to one who has close ties to the Office of Tourism Director Lisa Urias’—her brother.”
Hoffman added, “Katie Hobbs continues to exploit her office, break the law, and take advantage of the people of Arizona. This is what it looks like when Democrats are in control of your government.”
Senator John Kavanagh, when briefed by the outlet, reportedly called the matter “clearly an ethical violation. Whether or not it’s a legal violation is another issue.”
According to the report from Arizona Agenda, Urias’ mandate upon taking office included the hefty rebranding of Arizona to include “elements of Arizona’s Native American cultures in the design.” To that end the Office of Tourism engaged the services of Urias Communications, a company that is still owned by the director, although she “doesn’t have any role in its day-to-day operations,” as claimed by the tourism department’s communications director Josh Coddington.
The outlet noted that the Office of Tourism under Urias is leveraging a tax-funded budget of $8 million to woo tourists to come to Arizona, adding, “The appointment seems to have been an economic driver for Urias Communications as well.”
The Agenda concluded, “But even if she isn’t involved with the day-to-day operations of the company that she founded, Urias seems to be financially benefiting from the state’s contract with her company at the same time she is pulling a salary from the state.”
The report added that over a year after Urias became Director of Arizona’s Office of Tourism, her firm went on to win a $250,000 five-year contract from the Arizona Department of Education. This led Hoffman to remark that Superintendent of Public Instruction Tom Horne “is wrapped up in this scandal too.”
However, Horne refuted this in a response posted to X saying “Senator, we paid $15K on an expiring 1-year contract with Urias. ADE does not, nor will it, have a $250K contract with Urias. Get your facts straight.”
Hoffman replied, “Public reporting says otherwise. Send the receipts to back up what you’re saying to my Senate office. Would be glad to find out the public reporting is wrong. Need the receipts though.” Horne followed up that the documentation had been sent to Hoffman’s office, even posting an image of the documentation. He added, “Documents are at your office. Unlike the Governor we don’t know Urias personally. Next time ask first.”
In a letter to Arizona Attorney General Kris Mayes and Maricopa County Attorney Rachel Mitchell, Majority Whip Sen. Teresa Martinez called for an investigation into the allegations. Within twenty-four hours, Urias’ resignation was announced.
Urias responded to the allegations in a statement Friday saying, “In light of the Senate Confirmation members making it clear they will not confirm me as Tourism Director—despite the recent allegations being untrue and unfounded—I have tendered my resignation to the Governor.”
Matthew Holloway is a reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.