Outgoing Republican Congressman Rick Renzi has been indicted on federal charges, CNN and the Associated Press report this morning. Renzi, who has been under investigation for more than a year, will face 35 federal charges.

The incumbent, who announced early last year that he would not seek a fourth term in Congress, has faced ethical questions since the FBI raided his wife's business last year. After the raid, Renzi stepped down from his House committees under pressure from leadership.

The 26-page indictment implicates Renzi in a shady land deal, along with two former business partners, which allowed one of the men to trade land for plots owned by the federal government. That deal earned the ex-partner $4.5 million, the AP said.

The Arizona Republic reached Renzi in Virginia yesterday, where he declined to comment. Authorities will hold a 9:30 press conference in Phoenix -- that's 11:30 a.m. Eastern Time -- to outline the indictments.

Renzi's First Congressional District, which we mentioned earlier this week, is the largest, area-wise, in the state. It stretches from the Four Corners region to communities south of Phoenix and includes several Native American reservations.

Democrats are optimistic about State Representative Ann Kirkpatrick's chances in the marginally Republican district. Kirkpatrick has raised more than $400,000 since entering the race last summer and kept almost $300,000 in the bank through December.

Anti-tax activist Sydney Hay is the only major Republican in the race so far, but GOP officials are hopeful they can attract State Representative Bill Konopnicki to the race. Konopnicki declined to run earlier this year, but after several other prominent Republicans took a pass as well, he is said to be reconsidering his decision.

UPDATE: Another strong candidate for the GOP nomination is Arizona Corporation Commissioner Kris Mayes, who announced Tueday the formation of her campaign exploratory committee. Mayes has been mentioned as a possible candidate since Renzi announced his retirement in August.

Mayes has served on the Corporation Commission since 2003, during which time she helped instituted a renewable energy standard for energy utilities. Before that she worked as a politics reporter with the Arizona Republic, and interned for former Arizona Rep. Bob Stump while in college.

Mayes appears to already have a large support network, including the backing of former GOP Rep. Matt Salmon.