Just when I thought it could not get any stranger we now have another candidate for Governor of Rhode Island trying to stop the $75 million dollar loan guarantee to 38 Studios in exchange for moving to Rhode Island and creating 450 jobs. I guess the part that angers me the most is not the fact that Caprio has now changed his position, it’s the fact that two unelected candidates feel they can stop a deal made by people who actually have been elected to make such decisions. I have no problem with them voicing their opinion its when they actually take steps to try and stop it that I feel they have crossed the line and are showing no respect to people who have actually been elected.
The Job Creation Guaranty Act Program was created to provide loan guarantees for intellectual property-based investments, including the interactive video gaming industry. The General Assembly overwhelmingly supported the Job Creation Guaranty Act, passing unanimously in the Senate, and 66 – 1 in the House. The RIEDC Board, after months of due diligence, voted 11 to 1 to move forward with the 38 Studios deal after several public hearings on the issue. Where were these two individuals when all this was going on? Where were their objections then? The Job Creation Guaranty Act was voted on and passed. The RIEDC did their job and have acted in good faith and at this point the state and the RIEDC have a legal, business and moral obligation to execute the terms and conditions of the agreement.
PROVIDENCE – R.I. General Treasurer Frank T. Caprio said Tuesday he is attempting to block the state’s $75 million loan guarantee promised to Curt Schilling’s video game company, urging the rating agencies reviewing the deal to hold off until a new administration is in office.
Caprio, the Democratic gubernatorial candidate, said he voiced concerns about the loan guarantee to Moody’s Investors Service on Monday and to Standard & Poor’s on Tuesday morning. Both agencies have been commissioned by the state and Schilling’s 38 Studios to issue bond ratings on the deal for institutional investors.
He also raised questions in an article Tuesday in a bond industry publication The Bond Buyer. Caprio said he was hoping to attract the attention of potential investors.
In a statement, Caprio warned that the deal jeopardizes the state’s “financial stature” by creating a “risky moral obligation for the state” that could lower the state’s bond rating.
[Source]
“The RIEDC Board, after months of due diligence, voted 11 to 1 to move forward with the 38 Studios deal after several public hearings on the issue. Where were these two individuals when all this was going on? Where were their objections then?”
Caprio certainly wasn’t voicing any objections. Quite the contrary.
Caprio on NPR: “I’m optimistic about it. The [EDC] board knew more than anybody. . . They voted almost unanimously for it. So now in my role as a candidate and future governor, I’m going to be a cheerleader for it . . . Let’s do everything in a top-shelf fashion, and let’s put the wind at the back of 38 Studios, and let’s make sure it’s a success.”
Worst. Cheerleader. Ever.
The whole thing is bizarre, cynical and politically motivated. It’s a real shame that this deal has become an election season political football. It’s an incredibly short-sighted strategy. Great coverage, mate. I’ll be following closely.
Ohh my. More of this ****…