Report: Michael Corso Stood to Gain Millions from 38 Studios Loan Deal Getting Approved

Another day, another dozen stories coming out of Rhode Island about 38 Studios and how it is affecting several political races this year. The most prominent story today (from the Providence Journal) highlights the revelation that Michael Corso, the Rhode Island lawyer, tax-credit broker, and long-time friend of former House Speaker Gordon D. Fox, stood to gain million of dollars when he brokered the $75 million loan that lured Curt Schilling and 38 Studios to Providence.

According to documents provided by an unidentified "38 Studios insider" to House Oversight Committee chairwoman Karen MacBeth, Corso stood to be enriched in several ways by the deal going through. In addition to receiving a fee for lobbying on behalf of 38 Studios, Corso presided over the Kingston Capital Group, the Preservation Credit Fund and Orb Development, created on Jan. 17, 2008, prior to the loan guaranty legislation making its way through the state legislature.

Orb was promised a "development fee in the amount of 10 percent" of 38 Studios’ projected $10.3 million construction-budget, "but no less than $500,000." Documents filed with the Secretary of State's office also showed that Corso was listed as a "registered agent" at Orb. The documents show a who’s who of construction companies and managers that had a hand in the rehabilitation of 38 Studios' new headquarters on Empire Street, in Providence.

We will have more on this story as it continues to develop.

Source: Providence Journal

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