Updated: Tuesday, 31 Aug 2010, 1:55 PM EDT
Published : Tuesday, 31 Aug 2010, 1:40 PM EDT
PROVIDENCE, R.I. (WPRI) - General Treasurer Frank Caprio said Tuesday he will try to block the R.I. Economic Development Corporation from providing a $75 million loan guarantee to Curt Schilling’s video game company, 38 Studios.
Caprio, a Democrat who is running for governor, said the state is taking on too much risk and failing to protect itself in backing the private loan, which was approved by the EDC’s board of directors and is strongly supported by Gov. Donald Carcieri.
"Our state's leaders and EDC are unwilling to stop this deal or restructure it," Caprio said in a statement. "That's why I've gone directly to the potential investors to stop this deal and to protect our taxpayers."
The EDC brushed off Caprio’s criticism in a statement to Eyewitness News and said it would still proceed with the loan guarantee as planned.
"RIEDC has a legal, business and moral obligation to move forward with this business investment opportunity as voted on by the RIEDC Board of Directors and outlined under the executed terms and conditions of the agreement,” the statement said. “We are working toward a closing date.”
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