NEW: Meeting Notes Show Fox, Paiva-Weed Pushing for 38 Studios
Tuesday, June 25, 2013
Notes from a conference call in the fall of 2010 between state leaders and bond raters appear to show strong support from Speaker of the House Gordon Fox and Senate President Teresa Paiva-Weed for the $75 million loan approved by the EDC for 38 Studios.
SCROLL DOWN FOR NOTES
Following the General Assembly's passage of the expansion of the Job Creation Guaranty Program from $50 million to $125 million that June, the RI EDC approved the $75 million loan in July -- but it would not be finalized until November.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTNotes obtained from FirstSouthwest from conference calls in September 2010 appear to indicate that Fox and Paiva-Weed strongly backed the loan program, as well as then-Governor Donald Carcieri.
"The General Assembly and the Governor need to do something to jumpstart the economy," is a quote attributed to Fox in the handwritten notes, along with other transcribed statements from Paiva-Weed, Carcieri, and lawyers.
Wistow Dismisses Notes
The state's lawyer, Max Wistow, told GoLocal this afternoon that he didn't hold any credence in the circulating document. "These are baseless" said Wistow.
However, Wistow continued, "What I can say though is one of the stupidest things we could have done is vote for 38 Studios -- but now it would be equally so not to honor the obligation."
"It's easy for some groups, especially right now, to say that the $2.5 million payment could be put to better use, but that quick fix would result in a hemorrhage."
"Look, the state has over $3 billion in debt obligation. You can go get bonds all over the place. It's very appealing to say just don't pay them. It's a big bond market...a whole bunch of people wouldn't buy Rhode Island bonds if we defaulted, or else the terms would be exorbitant."
Larry Berman, spokesperson for Speaker of the House Gordon Fox, told GoLocal, "These notes don't change what we've already said."
"This call was after the General Assembly vote, and after the EDC gave its initial approval. All this call was was Governor Carcieri asking leadership to participate in the call."
Regarding the contents of the minutes taken, Berman said, "You'll find what was said it that if there was if there was default, they would honor the default."
Notes- 38 Studios Bond Rating Calls 9-8-10 and 9-9-10
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