Architect of 38 Studios Deal Met with Commerce RI on Tuesday Seeking More Tax Credits

Wednesday, November 06, 2019

GoLocalProv News Team

 

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Michael Corso

The dealmaker who helped to bring Curt Schilling's fledgling 38 Studios to Rhode Island and leveraged his relationship with top political officials to secure $75 million in financing is back.

Michael Corso has returned, seeking millions more from the state for his latest project. On Tuesday, he was meeting with officials at Commerce Rhode Island looking for Rebuild Rhode Island tax credits — a program that is described by the agency as “If your real estate project cannot raise sufficient funding, Rebuild Rhode Island can fill the financing gap with redeemable tax credits covering up to 20% – and, in some cases, 30% – of project costs. “

Corso is a key player in the development of a controversial apartment project "Providence Chestnut 1" in Providence’s Jewelry District.

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Commerce RI’s Matt Sheaf confirmed the meeting, “Members of the Commerce development team took had a routine meeting with developers of a proposed project for the Jewelry District. It was an informational meeting asked for by the developers where we learned more about the project.”  

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Corso's Chestnut Street Project

Corso with Providence Chestnut 1, LLC submitted the application for the project at 151-155 Chestnut Street with the Downtown Design Review Committee. The Committee approved the project this week.

Corso did not respond to requests for comment for this article.

Ten Years Later

According to emails and depositions tied to the State of Rhode Island’s civil lawsuits to recover funds from the collapsed gaming company, Corso was involved in the efforts to score funding for the financially struggling startup fantasy gaming company 38 Studios in the summer of 2009. According to documents, Corso was paid more than $2 million -- and was eligible for millions more -- according to deals he had secured.

In July of 2009, Corso was sending emails to private investors seeking their interest in investing in 38 Studios, but Corso and the company were unsuccessful at securing significant private investment in Schilling’s company --  and the company turned to Corso to tap funding from the state of Rhode Island.

Corso was a close friend with the then-Speaker of the House Gordon Fox, who had shepherded through legislation to create a loan guarantee program and after the passage of the late session fast-tracked legislation, $75 million dollars was approved by Economic Development Corporation for 38 Studios.

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All communications come through me - "level of distrust"

By March of 2010, Corso was negotiating the framework of the 38 Studios deal with RI Economic Development Corporation officials — a deal that would make him millions according to documents released as part of the State's civil suits.

“Corso’s agreements with 38 Studio included a kicker of 5% of the $75 million Rhode Island funding for 38 Studios, which totaled $3.75 million.

Corso’s deal also included 2% ownership in 38 Studios and despite the state’s $75 million in funding, Rhode Island received no equity in the company.

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Just a few days later, EDC lawyer and Corso were outlining the structure of the deal

Governor Gina Raimondo, Speaker of the House Nick Mattiello and Senate President Dominick Ruggerio all refused to provide comment for this article.

 

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