slides: Who Created the 38 Studios Deal?

Speaker Gordon Fox

Speaker Gordon Fox pushed the legislation through   the House two months after the legislative deadline. The bill moved quickly and was sponsored by House power brokers like Steven Costantino and now-House Finance Committee Chair Helio Melo.

Steven Costantino

Now, Costantino is Chafee's Director of Health & Human Services, but in 2010 he was the powerful Chairman of the House Finance Committee and was the lead sponsor of the legislation funding the 38 Studios deal.

As a candidate for Mayor, Costantino said in a September 2, 2010 debate reported by GoLocal, that the deal could be good for Providence if Schilling moved his company to the city. “If Curt Schilling wants to come to Providence, I want him to come to Providence,” Costantino said. “I want 400 jobs for Providence.”  

Rep Helio Melo

The East Providence State Rep. was another sponsor of the $125 million funding bill that spawned the 38 Studios legislation.

Melo is the Finance Committee Chairman who took over for Costantino. The 38 Studios legislation was introduced two months after the bill deadline.

S&P and Moody

The Rhode Island Economic Development Corporation announced that rating agencies Standard & Poor’s and Moody’s issued favorable ratings on bonds for the state’s loan guarantee agreement with 38 Studios. 

The strong ratings by the rating agencies "ensure that the interest rates on the bonds will be within the interest rate cap approved by the RIEDC Board of Directors for 38 Studios," according to RIEDC.

Standard & Poor’s issued an “A” rating. Moody’s rated the bonds at “A2”. 

Keith Stokes, RIEDC

Keith Stokes was always the cautious policy leader and his advocacy for 38 Studios was inconsistent with his previous efforts. 

In responding to original criticism of the deal, Stokes told GoLocal in an interview in early November of 2010, “You have something such as $75 million in a recession. You had a persona of Curt Schilling. You had an industry that few people could see. They saw it as a game, not as industry,” said Stokes.

Lawyer & More Lawyers

Many of the top political law firms in Rhode Island had a bite of the business relating to the deal. The cost of issuance of the bonds was $650,000. 

Bound Counsel to Issuers of the Bonds: Moses & Alfonso, Ltd., Providence, RI

General Counsel to the Issuer: Adler Pollock & Sheehan, Providence, RI

Disclosure Counsel to the State: Taft & McSally, LLP, Cranston, RI

Counsel to the Placement Agents: Pannone Lopes Devereaux & West LLC, Providence, RI

Counsel to the Trustee: Bernstein, Shur, Sawyer, & Nelson P. A. (Portland, ME)

Counsel to the Company: Edwards Angell Palmer & Dodge, LLP, Providence, RI

Financial Advisors to the Issuer: First Southwest, Lincoln, RI

Governor Don Carcieri

The GOP Governor was known for being a fiscal conservative. He cut aid to cities and towns and worked to reduce the size of state government.

Carcieri was wowed by conservative baseball icon Curt Schilling and bet the proverbial ranch, passing special legislation in his last year in office to bring Schilling's gaming company to Rhode Island.