EXCLUSIVE: Stokes Out at RIEDC
Thursday, May 17, 2012
Keith Stokes will be replaced as executive director of the Rhode Island Economic Development Corporation (EDC), GoLocalProv has learned.
Stokes, who championed the controversial 2010 deal that gave Curt Schilling's 38 Studios a $75 million loan guarantee to move to Rhode Island, has remained quiet since the video company failed to make a $1.125 million payment due to the EDC on May 1. The EDC board held an emergency meeting Wednesday to discuss the company's future in the state, but took no action. Schilling is reportedly seeking bridge financing to keep his company afloat.
In an August of 2010 letter, Stokes addressed concerns regarding the deal and vouched for 38 Studios.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLAST"Many community leaders, like you, have inquired about why the RIEDC would offer so much credit enhancement to one company," the letter stated. "Simply put, our extensive due diligence revealed that while 38 Studios could raise venture equity and stay in their current location, its investors and management team are willing to relocate the company and the related opportunities for Rhode Island if we provide an alternative to their equity dilution."38 Studios began operation in RI in early 2011, but in just 15 months the gaming company was in default to its $75 million deal with the state of Rhode Island.
Stokes, who was flagged by GoLocalProv as one of the 11 to Watch in 2011, has faced a number of challenges including one of the worst unemployment rates in the country and rankings by leading business publications that have placed state behind the rest of New England and the country.
Stokes was appointed in January of 2010 by then Governor Donald Carcieri to the top post at EDC. He previously served as head of Newport County Chamber of Commerce for 15 years. He served as a top aide to Governor Bruce Sundlun in the '90s.
Stokes is tied closely to State Senate President M. Teresa Paiva Weed and is a native of Newport.
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