38 Studios Specter Haunts Rhode Island
Governor Lincoln Chafee says the 38 Studios debacle "remains an economic development crisis" for the state.
It's been almost four months since declared bankruptcy [http://www.amazon.com/Kingdoms-Amalur-Reckoning-Xbox-360/dp/B0044SA70M/ref=sr_1_1?ie=UTF8&qid=1348674955&sr=8-1&keywords=kingdoms+of+amalur], but Rhode Island is still struggling with the fallout. Governor Lincoln Chafee is now considering a plan to restructure the state's economic development system, which currently falls under the aegis of the Rhode Island Economic Development Corporation, and to create a new agency "to oversee broader economic policy and development."
Unfortunately for the EDC, it approved a $75 million loan guarantee to Curt Schilling's startup, for which the state was left on the hook when the studio went under. For the tiny state of Rhode Island, with a population of just over a million people and the second-highest rate of unemployment in the U.S., that's a serious albatross.
"38 Studios was and remains an economic development crisis for the state of Rhode Island," Chafee said in a statement. "I will continue to digest the report over the coming weeks as my administration works to put in place the best structure for sustained and long-term business growth."
Former Governor Donald Carcieri was a big blamed Chafee [http://www.escapistmagazine.com/news/view/103737-38-Studios-Finalizes-Rhode-Island-Relocation], Carcieri's successor, for the company's collapse, but others have pointed the finger at internal "dysfunction" and a lack of effective and experienced leadership as the primary source of trouble.
Source: Reuters [http://in.reuters.com/article/2012/09/25/rhode-island-economic-development-idINL1E8KPLG520120925]
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Governor Lincoln Chafee says the 38 Studios debacle "remains an economic development crisis" for the state.
It's been almost four months since declared bankruptcy [http://www.amazon.com/Kingdoms-Amalur-Reckoning-Xbox-360/dp/B0044SA70M/ref=sr_1_1?ie=UTF8&qid=1348674955&sr=8-1&keywords=kingdoms+of+amalur], but Rhode Island is still struggling with the fallout. Governor Lincoln Chafee is now considering a plan to restructure the state's economic development system, which currently falls under the aegis of the Rhode Island Economic Development Corporation, and to create a new agency "to oversee broader economic policy and development."
Unfortunately for the EDC, it approved a $75 million loan guarantee to Curt Schilling's startup, for which the state was left on the hook when the studio went under. For the tiny state of Rhode Island, with a population of just over a million people and the second-highest rate of unemployment in the U.S., that's a serious albatross.
"38 Studios was and remains an economic development crisis for the state of Rhode Island," Chafee said in a statement. "I will continue to digest the report over the coming weeks as my administration works to put in place the best structure for sustained and long-term business growth."
Former Governor Donald Carcieri was a big blamed Chafee [http://www.escapistmagazine.com/news/view/103737-38-Studios-Finalizes-Rhode-Island-Relocation], Carcieri's successor, for the company's collapse, but others have pointed the finger at internal "dysfunction" and a lack of effective and experienced leadership as the primary source of trouble.
Source: Reuters [http://in.reuters.com/article/2012/09/25/rhode-island-economic-development-idINL1E8KPLG520120925]
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