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Keith Stokes Resigns; Curt Schilling To Make Loan Payment

The head of the state's Economic Development Corporation has stepped down following the controversy of Curt Schilling's 38 Studios.

Keith Stokes resigned as the head of the Rhode Island Economic Development Corporation amid the controversy surrounding Curt Schilling’s videogame company 38 Studios, according to the Providence Journal.

The company, headed by the former Red Sox pitcher, defaulted on a $1.125-million payment to the state on May 1.

Breaking: The company, 38 Studios, is expected to make a $1.125-million wire payment Thursday afternoon, according to the Providence Journal. 

On Wednesday, Schilling and members of 38 Studios met with state and EDC officials in an emergency meeting that was closed to the public.

In 2010, EDC approved a $75-million guaranteed loan to the videogame company following 38 Studios’ promise to bring 450 jobs to the state by the end of 2012 and moved its business from Massachusetts to Providence.

Stokes, a longtime board member of the EDC, was appointed by former Gov. Donald Carcieri in January 2010 and reappointed by Gov. Lincoln Chafee when he took office the following year.

"As a lifelong Rhode Islander, I am grateful for the opportunity to have served at the RIEDC," said Stokes.  "I have dedicated my entire career to a state I love very much with the desire to create a better place for Rhode Islanders to succeed and to raise their families. I will continue to be involved in the future."

A Newport native, Stokes said he plans to spend time with his family for now. 

"I thank Keith for his service to Rhode Island, not only at the helm of the EDC, but also as a former Board member of that agency and as the long-time Executive Director of the Newport County Chamber of Commerce," said Chafee in an official statement issued Thursday morning.

The Providence Journal also reports that Colin P. Kane has been asked to replace Stokes.

Amidst the 38 Studios dilemma, State Rep. Lawrence Ehrhardt (R – North Kingstown) introduced legislation to the General Assembly Wednesday that would prohibit the EDC from providing loan guarantees of more than $10 million to any one entity, according to the Journal. 

Robert E May 17, 2012 at 08:55 PM
I am sure the employees 38 Studios enjoyed their three times a week lobster dinners at the taxpayer’s expense. I'm glad they got to build themselves a nice new basketball court and game room with my money too. The Attorney General needs to look into this Schilling need to be criminally charged for misappropriating funds.
Bill Carson May 18, 2012 at 03:33 AM
We need to ask the Rhode Island Economic Development Corporation why the Ocean Wind Port for all the ocean wind turbines is being built in New Bedford ,Massachusetts at a cost of 62 million dollars ! Quonset Point is already built and is home to the largest barge company in the world and an ocean wind turbine contractor has his headquarters at Quonset Point ! Quonset Point is already built ! The RIEDC lost lots of jobs to Massachusetts and WHY ????
Phil Hadley May 18, 2012 at 04:36 AM
Ya, ummm, the check is no good. This is both saddening and makes so many upset and mad. Sorry I don't trust anyone in these circumstances and everyone that took part and is taking part in the decisions of Rhode Island in the General Assembly, Senate, Governors office, needs to be investigated. This is a huge loss in trickle down economics for any small business person that was in Hope that Rhode Island was going to give a small business a chance. Now it is more then a black eye, no money coming in, no chance for younger business men and women to have a chance to expand. I was actually scared that I was going to drive down the street and see city workers not doing there jobs because we are on verges of defaults all around or cities and towns. Can we please say enough is enough, we as a society no longer need to be looking the other way, as a great state of the people we need to stand up to everyone of these politians and ask the toughest questions they have ever had to answer. And they need to give of a thesis on why they even deserve to live in this state. Sick of corruption.
getreal May 18, 2012 at 12:50 PM
The Gov. is very quick with telling cities and towns what they are doing wrong yet he is not even remotely close to getting his own house in order......Easy to blame the past administration when you have been asleep at the switch for how long ???? Road to recovery has to begin first at the Marble Palace and it is just not happening !! I guess the budget surplus for this year is pretty much wiped out . It is time for a complete change of our Reps, senators and Governor and all appointments.

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