New RI Governor Vows to Keep an Eye on 38 Studios

November 9, 2010 -

Curt Schilling’s 38 Studios has received an initial payment of $13 million from the Rhode Island Economic Development Corporation (EDC) as part of a $75 million bond deal put together to lure the developer from Massachusetts to the Ocean State.

38 Studios is slated to receive approximately $51 million in all, with $20 million held in reserve in order to guarantee three years worth of repayments on the debt. Schilling’s firm will receive the rest of the money over the next 15 months as it meets certain milestones.

Rhode Island’s governor-elect, and opponent of the 38 Studios deal, Lincoln Chafee (pictured) stated that he was disappointed over the closing of the loan, as he would have liked to “formally contribute to the process.” He wished 38 Studios success while vowing to do everything in his power “to protect the interests of the taxpayers of our state.”

Chafee also promised to keep watch over the EDC and 38 Studios, saying, “I will, however, ensure that 38 Studios fully and completely comply with each and every commitment that it has made to the taxpayers of Rhode Island.”

A Providence Journal story features details on the fund raising used to fuel the 38 Studios deal, which will be generated by a bond sale. Moody’s gave the bonds in question an A2 rating, “three notches below the Aa2 rating on Rhode Island’s general obligation bonds.”

Standard & Poor’s rated the bonds A, “with a negative outlook,” which indicates “the possibility the rating could be lowered in the next 6 to 24 months.”

The primary job of repaying investors will fall upon 38 Studios. Moody’s said about the bonds, “Given the development stage nature of the company, loan payments from 38 Studios have inherently more risk than other revenue streams that have established track records and predictability.”

Meanwhile, another story on the Providence Journal website outlines the entire story of the deal between 38 Studios and Rhode Island, which apparently began as a result of a visit by then Governor Donald Carcieri to Schilling’s Massachusetts home earlier this year for a fundraiser.

Carcieri recounted telling Schilling that he should relocate to Rhode Island, but he added, “I wasn’t thinking anything would come of it.”


 
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Goth_Skunk"The New Totalitarians Are Here" from The Federalist. http://ow.ly/Pjz3b07/07/2015 - 11:31pm
MattsworknameThere was a time in america when we needed unions and they served a good purpose, but that time hasnt been tbe case for about 20 years or more. The same could be said of our current system for teachers in higher educatoin,but thats a whole nother story07/07/2015 - 10:22pm
TechnogeekIn large part, though, that's an extension of the level of unjust deference given to police in general. Kind of hard to find any real grievances to defend against when the organizational culture views "complains about coworker" as worse than "murderer".07/07/2015 - 8:45pm
TechnogeekThat's a police union.07/07/2015 - 8:43pm
TechnogeekNo, police unions are worse by far. Imagine every negative stereotype about unions, then add "we can get away with anything".07/07/2015 - 8:43pm
Goth_SkunkeZeek: No, I do not agree they are union members.07/07/2015 - 7:48pm
E. Zachary KnightTeachers unions are just as bad as police unions, except of course you are far less likely to be killed by a teacher on duty than you are a cop. But they also protect bad teachers from being fired.07/07/2015 - 6:29pm
E. Zachary KnightGoth, so you agree they are still union members. Thankfully we have a first ammendment that protects people from being forced to join groups they don't support (in most cases any way.)07/07/2015 - 6:27pm
E. Zachary KnightAh, police unions. The reason why cops can't get fired when they beat a defenseless mentally ill homeless person to death. Or when they throw a grenade into a baby's crib. Or when theykill people they were called in to help not hurt themselves.07/07/2015 - 6:26pm
Goth_SkunkeZeek: Non-union employees have no right to attend meetings or union convention/AGM, or influence policy. The only time they get to vote is whether or not to strike.07/07/2015 - 6:24pm
Infophile(cont'd) about non-union police officers being given hell until they joined the union.07/07/2015 - 4:58pm
InfophileParadoxically, the drive in the US to get rid of unions seems to have left only the most corrupt surviving. They seem to be the only ones that can find ways to browbeat employees into joining when paying dues isn't mandatory. I've heard some stories ...07/07/2015 - 4:57pm
Matthew WilsonI am old school on this. I believe its a conflict of interest to have public sector unions. that being said, I do not have a positive look on unions in general.07/07/2015 - 3:59pm
TechnogeekWhat's best for the employee tends to be good for the employer; other way around, not so much. So long as that's the case, there's going to be a far stronger incentive for management to behave in such a way that invites retalitation than for the union to.07/07/2015 - 3:10pm
TechnogeekTeachers' unions? State legislatures. UAW? Just look at GM's middle management.07/07/2015 - 3:05pm
TechnogeekIn many ways it seems that the worse a union tends to behave, the worse that the company's management has behaved in the past.07/07/2015 - 3:02pm
james_fudgeCharity starts at home ;)07/07/2015 - 2:49pm
james_fudgeSo mandatory charity? That sounds shitty to me07/07/2015 - 2:49pm
E. Zachary KnightGoth, if Union dues are automatically withdrawn, then there is no such thing as a non-union employee.07/07/2015 - 2:38pm
Goth_Skunka mutually agreed upon charity instead.07/07/2015 - 2:33pm
 

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