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NEW: Schilling’s 38 Studios to Owe $395,000 Tax Bill in Providence

Wednesday, May 16, 2012

 

The struggling video game company founded by former Red Sox star Curt Schilling is set to owe the city of Providence nearly $400,000 in tangible personal property taxes, GoLocalProv has learned.

According to the city tax assessor’s office, 38 Studios, which leases space at One Empire Plaza, has a total personal property assessment of $7,091,478. Of that amount, $5,899,436 is the company’s tax responsibility, which amounts to $329,188.52 in annual taxes. The remainder, $1,192,041, is leased equipment which they are also responsible for paying $66,515.88 in taxes on.

So when tax bills go out later this summer, 38 Studios will owe Providence $395,704.40, the assessor’s office said.

The company missed a $1.125 million payment to the Economic Development Corporation (EDC) on May 1, which prompted an emergency meeting held by the EDC board this morning. Schilling is reportedly seeking bridge financing to help keep the company solvent, but the board did not take action during its meeting.

"The RIEDC Board of Directors met in closed session to receive a presentation from representatives of 38 Studios as to the company’s confidential financial status and projections," said EDC spokesman Mike Blazek. "Members of the Board asked many probing questions of the company. After representatives from 38 Studios concluded their presentation, the Board then engaged in extended discussion of confidential financial information. The Board did not take any vote. The company still has the option to cure the existing default by paying the $1,125,000 guaranty fee that is past due. In the meantime, we will continue to talk with 38 Studios and develop additional information, and will resume the Board meeting at our regularly scheduled meeting on May 21. The members of the Board may not discuss the confidential information received and discussed today."

Schilling’s company, which released its first game earlier this year, was wooed to Rhode Island in 2010 with a widely-criticized $75 million loan guarantee.

Dan McGowan can be reached at dmcgowan@golocalprov.com

 


 

 

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Comments:

Todd B

Has anyone attempted to interview Carcieri about this? You would think he would want to be part of any solution, given that he was the one person who pushed the hardest to give 38 Studios the money.

jon paycheck

The personal property tax rate in providence would
Scare any viable business off.

You are paying over 7% of the value of your
Office furniture and computers every year.

That's more than triple the rate in most other
Cities.

This is another anchor that prevents growth in
Providence




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