Fighting law that gave 38 Studios $75M

WPRI 12

By Walt Buteau, Target 12 Investigator

Updated: May 22, 2012 11:15 PM

PROVIDENCE, R.I. (WPRI) - The initial debate on the measure that would eventually allow the $75 million loan guarantee to Curt Schilling's video game company began back in April 2010.

Rep. Robert Watson, (R) East Greenwich, tells Target 12 that back then, some of his colleagues knew that the 38 Studios deal was already being discussed.

span style="text-decoration: underline">Web extra: Watson's heated plea to House /span> PDF: EDC fact sheet on 38 Studios Timeline: How the 38 Studios deal unfolded

"There were members in that room that were aware of the Schilling proposal and the reasons why the loan guarantee bill went from $50 million to $125 million - the rank and file, myself - we were not aware of it," Watson stated.

Watson is asking questions about the size of the 38 Studios loan guarantee. Target 12 has found out that the Economic Development Corporation has provided two other loan guarantees under the same program ; one for $1.5 million to NuLabel Technologies in Providence and another for $4 million to The Corporate Market Place in North Kingstown.

"Most rank and file members anticipated there would be smaller loan guarantees and nothing of the magnitude of the $75 million."

Watson wants to know why it was all so rushed.

"It was too fast, too loose, and a scandal waiting to happen with sketchy details and very little oversight being spelled out."

Target 12 reached out to EDC board members to ask why one company would qualify to get 60 percent of the money available, but so far, no one has commented.

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