Chafee Would End ‘Special Deals’ For Companies
Thursday, August 19, 2010
Independent candidate for governor Lincoln Chafee yesterday promised to end special deals for companies like the $75 million loan guarantee the state gave to Curt Schilling’s video game company, 38 Studios.
“It is inappropriate for a quasi-public organization to put Rhode Island taxpayers on the hook for millions of dollars on very risky deals with unproven companies,” Chafee said.
The loan guarantee was approved by the Rhode Island Economic Development Corporation. If elected governor, Chafee would serve as the chairman of the EDC board—and, in that role, he said he would make sure that it did not make risky deals that “gambled” away large sums of taxpayer money.
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When that failed, he sent a letter on Tuesday to each of the board members—again making his case for revoking the deal.
“Why the rush to judgment – over a period of just a few months – to determine that 38 Studios is the one company around which to develop a video game industry in Rhode Island?” Chafee wrote.
“I hope to be the next Governor of Rhode Island. I have definite plans for business and job growth in our state and I do not want to inherit a fundamentally flawed deal that will limit our options for the application of new economic development strategies,” he added.
Chafee made his remarks in front of the Beacon Mutual Insurance Company in Warwick, where, as mayor, he said he refused to give the company a deal on property and inventory tax relief.
“Then they came to Warwick anyway, because they realized that was exactly the type of community they wanted to do business in,” Chafee said. “Now they pay more than $200,000 in property taxes each year and employ hundreds of people. This is the kind of thing I was able to do as mayor, and it’s what I’ll do as governor – attract businesses without using risky deals.”
