RI taypayers not on the hook yet

PROVIDENCE (WPRI) - While 38 Studios has injected an estimated $17 million in payroll and benefits into Rhode Island’s economy over the past year, Rhode Island taxpayers have not paid a dime to Curt Schilling's company, yet.

The Economic Development Corporation broke down the dollars aimed at 38 Studios and told Target 12, the company has received 47.4 million in privately funded municipal bond money. About $23 million of the $75 million from the state's loan guarantee program is held in a pair of reserve accounts. That money is not available to the company. The rest of the money paid fees that included bond insurance.

"Principal and interest will be paid out of the capital reserve funds until 2014," EDC spokesperson Judy Chong said.

Chong said if 38 Studios cannot make its payments in the future, a request for taxpayer money would then be made to the General Assembly, starting in 2014 to pay off the privately funded bonds and interest by 2020. Chong added that the company's present and future rights, title and interest in any projects, trademarks, patents and copyrights are among the collateral required for the loan guarantee agreement.

38 Studios is required to report its internal income statements, balance sheets and its number of full time employees to the EDC. The income statements and balance sheets are not available to the public.

On the jobs front, as of 38 Studio's last report, 251 were employed with salaries and benefits that average $67,500 per employee. Chong said there are about 25 additional positions that pay less than that. The total payroll amount is not required to be reported. Under its agreement, the company was supposed to employ 300 full time employees by this November and 450 by next November.

38 Studios first game, Kingdom of Amalur, Reckoning was made in Maryland, released in February and had reportedly sold 1.2 million copies through its first 90 days on the market. Right now, the company is working on a game code named Copernicus at its 1 Empire Plaza location in Providence.

Target 12 found out Schilling's loan guarantee is one of three the EDC has made through the $125 million program that was approved by the General Assembly in 2010.

NuLabel Technologies in Providence and The Corporate Market Place in North Kingstown are the other two.