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EDC Official Resigns; 38 Studios Staff Laid Off

Helena B. Foulkes is the second state official to resign in the last week amidst the 38 Studios controversy.


Economic Development Corporation Vice Chairwoman Helena B. Foulkes has resigned, reports the Providence Journal, the second state official to resign amidst the controversy surrounding 38 Studios, which reportedly has laid off its staff.

"I have discussed with the governor his plans for the Board at the EDC, and I think it is best at this time I resign. I wish him good luck in this very difficult challenge," Foulkes said.

Gov. Lincoln Chafee appointed Foulkes to the EDC last year.

Foulkes' resignation comes a week after in the wake of the controversy surrounding Curt Shilling's video game company.

The company, headed by the former Red Sox pitcher, defaulted on a $1.125-million payment to the state on May 1, and faces financial turmoil after sales of its first game, "Reckoning," failed to meet expectations. Chafee criticized Schilling publicly last week, saying the company had been "stonewalling" the state. 38 Studios has reportedly laid off its entire staff, which numbers around 400, most of which were in Rhode Island.

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.

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 – a measure Ehrhardt attempted to submit two years prior. According to the Journal, Ehrhardt said he was dissuaded from proposing the cap at that time by Stokes who told him it would “upset a transaction” that the EDC was working on.

“I feel that I was substantially betrayed,” Ehrhardt told the Journal.

Jack Baillargeron May 24, 2012 at 09:54 PM
If you have to bribe a Company to move here, then obviously, you have a major problem in the State being business friendly. Then the whole EDC should be scrapped and rebuilt for one thing only, to help businesses already in the State, specificly small businesses. You want to benifit from the EDC, move your damn business here firt and show it is viable then the EDC can determine if you are worthy, After all is that not why it was formed in the first place? Is that not their mandate? First thing they should do now is grab all of Shillings baseball memorbilia to auction for all the money we are never going to recover, along with this person and stokes, and anyone in the legislature, who was stupid enough to be involved, past and present., they should all resign and be held accountable to we the people.
marina peterson May 24, 2012 at 10:20 PM
People... take note. The current new proposed legislation for the East Bay Energy Consortium puts it under the EDC! Not a good thing. The executive director of the EDC will sit on the board and the others will be appointed by the Governor. Be sure to call your legislator and tell them you do not want S2870 Sub A passed under any circumstances. Let's let private industry take the risk!
Robert Smith May 24, 2012 at 11:39 PM
A former sports hero, with no experience in the electronic gaming industry, says he is going to create a product in a very competitive business dominated by very experienced gaming companies like EA sports, Blizzard (World of Warcraft), and others and thinks he is going to make it. Whoever believed it was a good idea to do this deal should be fired. Fools, everyone of them, from Schilling on up or down. I knew he was a peice of work before this, now it just makes me sick as a Rhode Islander to think of him as someone I used to cheer for. Mr. Schilling is a very outspoken Conservative Republican who thinks anyone that isn't like him is a fool. Him and his ilk are one of the biggest reasons this state and this country are in the condition it is. The EDC is supposed to help develop the economics of the state, not subsidize frivolous business ventures. Just think about it, most of the financial crisis we have been through over the last ten years is due to so called Conservatives and their ideas. The "fiscally responsible" Conservative Republicans have done it again in RI. Liberal Democrats were against this from the beginning, they wanted to spread the risk among a larger number of businesses so if any one of them failed it would not be such a big impact on an already strained system.. These so called Conservatives thought that was a bad idea and gambled on one business. They call Liberals wreckless, what a joke. Now 400 more people are out of work, thanks Curt.
Jack Baillargeron May 25, 2012 at 12:45 AM
Sorry Robert; you’re wrong, you cannot blame the GOP in any way shape or form in this State, unless they side with the DEM in this State. The Senate consist of 8 GOP and 29 DEM and 1 IND. The House consist of 9 GOP and 65 DEM and 1 Libertarian It has been this was in lop sidedness for over 78 years, the longest control by one party in the history of this Country, making the Governorship, nothing more than a figurehead. This problem was caused by DEM politicians, who are as stupid as they come on this deal and inside backroom deals that were made by the DEM leadership in the house and the Senate. It is all over the news now of the deals that were made. It was as asinine as they come to spend $75 million of $125 million, set aside for small business to dump into this. People should be going to jail in my opinion. No matter the party, it accomplishes nothing to try and turn this into a party issue. It is all about taxpayers are screwed in this, no matter their ideology. Just saying ;-}.
DownTown May 25, 2012 at 02:20 AM
The bond guarantee program was supposed to be for $50 million but Weed and Fox jammed home a $75 million dollar increase to it in order to accomodate 38 Studios. Carcieri was the main push behind this but it was a team effort with Republican & Democrats on the same page. I'm a conservative moderate and I was against it as were 99% of conservatives that post on Projo's web site. None of those people will be out of work long. 2 Massachusetts video game companies have had job fairs already in Providence.
Robert Smith May 25, 2012 at 11:24 AM
Please Jack, do some checking. This was pushed through by conservative Republicans. Chafee was against it as well as quite a few others. Of course they needed some Democrats to get it through, however, Schilling is a very outspoken Conservative who slings the crap as hard as any Conservative about fiscal responsibility, etc... and then this happens. The whole point is anyone, Conservative or Liberal that thought this was a good idea is only showing how moronic it was to invest in such a business when this state is headed into the rocks. The money should have been used to invest in many smaller businesses. BTW Jack, I am not wrong. Simply look at who backed this idea and sold it to state gov't. I find it fascinating that when Conservative Republicans make such mistakes people say "...it is everybody not just us...", please, give me a break. Both parties make mistakes, look at Solyndra. My point is the hypocrosy of touting a line that glorifies the Conservatives as some kind of fiscal gods, how ridiculous. Conservative principles are one of the biggest reasons this country is going backwards. The selfish "do as I say, not as I do" mentality sucks and has to go. Dishonesty on both sides is overwhelming. Conservative Republicans take the cake though. Not only do they espouse the self righteous attitude that only they have the answers, but, they leave the door open so stuff like this can happen. No or weak oversight, no or weak regulations=Conservative Republican ideals.
Bryan Palumbo May 25, 2012 at 12:12 PM
Robert, did you see the numbers jack put up? If you don't believe him, feel free to research those numbers yourself. How exactly do Conservative Republicans (of which there isn't many in our state, at least not ones in office) "push" something through when they need 12 Democrats in the Senate (that's 4 more than there are Republicans, just to help you out) and 28 Democrats in the House (that's 18 more Democrats than there are Republicans)? Not to mention that anyone, Republican or Democrat, that wishes to use Government (see Taxpayer) money to pay a private company is not very Conservative to begin with. I bet you're one of those people who actually believe Obama when he said he hasn't spent a lot of money over his 3 and a half years too.
Robert Smith May 25, 2012 at 12:44 PM
This deal was approved by Carcieri, a Republican governor. Chafee, who used to be a Republican until he saw the light, would not have approved this deal no matter who backed it. The Republicans are who pushed this and some Democrats jumped onboard hoping it would work. My problem is the hyppocracy of so called fiscal Conservatives, of which Mr Schilling is a proud and boisterous member, who criticize and denounce Liberal opinions and ideas. I honestly couldn't care less what the political affiliation of whoever was involved, it was a very bad idea from the beginning. I have been in the computer service industry for over 23 years and i'll tell you the gaming industry is very volatile and full of failures. Anyone, Liberal or Conservative, Republican or Democrat, that thought or sold this as a good idea is either very naive or had some other agenda when approving this deal. Carcieri was and is a Republican and he was the sitting governor when this deal was approved, he should have been smarter about it and rejected it. I am only concerned with the rehtoric and other comments by people such as Schilling who put themselves above others as if they are the only ones with the answers and show us that they are no better than anyone else. Schilling had no business getting into the gaming industry in the first place. He outspent his revenues and gambled on a bad product, how Conservative of him.
Bryan Palumbo May 25, 2012 at 01:13 PM
There's a lot of people in the Republican party in our state that are about as Conservative as Karl Marx. They are more Democrat Light than any sort of actual opposition. Don't confuse these Rhode Island Republicans with the National kind. Fact is, in Rhode Island, nothing can get done without the Democratic Party's support. Hating on Curt Shilling's politics doesn't change that fact. Shilling actually put a good team together to make the game, his biggest mistake was releasing the RPG (which still did well) before releasing the MMO (called Copernicus, as of right now), though he probably did that because he needed capital to continue making "Copernicus".
Bryan Palumbo May 25, 2012 at 01:16 PM
I also have to add, that they used Obama's "shovel ready" stimulus money to fund this. Which is money he is claiming now that he didn't spend. Hysterical if you ask me, too bad it's our money that's being wasted.
Jack Baillargeron May 25, 2012 at 01:19 PM
No bob, to try and make this a blame game party like the “National Scene” is ludicrous. In this State its impossible to blame the GOP for this. 17 GOP, 89 DEM in the legislature and 1 GOP governor. and you say the GOP did it lol. Really!!! You say the DEM jumped on board, then you’re saying they are dumber than the GOP, (whose is the fool, the fool or the fool who follows him). Come on bob, you know, as I do that in this State nothing moves with out DEM approval, no matter who the Governor is. There s no such thing as a Veto in this State, because it can easily be over ridden. If there is a veto that holds up, it is because the legislature is using it for political gain. Frankly I believe most RI, voters were against this from the start, I know I was, just because they were using $75 million of a $125 million fund set up to help businesses, that’s plural, meaning not one game company. That is the debate period. Your constant reference to, “conservative”, is just rhetoric and has nothing to do with anything, this legislature has done, or will do. With over 78 years of “super majority” rule by the legislature, if you want to blame a party, in this State it is DEM, and liberal. Most wouldsay there are no real GOP upState anyway lol. Those are the facts not rhetoric. in this State anyway. Much as I cannot stand Chaffee, he did campaign against this, so he cannot have any blame, this company cannot be saved, nor should by taxpayers period.
Jack Baillargeron May 25, 2012 at 01:42 PM
PS. As someone who is independent, but leans far conservative on fiscal issues, this explains it all lol. An elderly lady was walking on the golf course on the island of Martha's Vineyard. She slipped and fell. Obama who was behind her by chance, helped her to get up promptly. She thanked him and he answered "It was a pleasure to help you. Don't you recognize me? I am your president. Are you going to vote for me in the next election? " The elderly woman laughed and replied: ''You know ... I fell on my Butt ... not on my head......
Robert Smith May 25, 2012 at 01:44 PM
Bryan, one of the biggest problems in politics is rhetoric. Spewing speculation and non-truths to make a point is a very rocky road. This issue is about state gov't and it's inability to control spending. Conservative Republicans are just as much to blame as anyone else. My problem is the rhetoric they spew, such as your comment about Obama's spending and my perception of it. What has that got to do with this local, state issue? Of course there is enough blame for everyone, not just the Repubs and I have no problem with the blame going where it deserves to go. The truth is the truth and you can't sugar coat it anymore with insane rhetoric. Fact:Scilling is an outspoken Conservative Republican who espouses the rhetoric and values that are putting this state and country into such a mess. Fact:Mr. Schilling sold an idea that was doomed to failure and because the state of RI was too stupid or greedy to see the failure looming we are now responsible for that loan. You can't run from the fact that Schilling is a blowhard that has no idea how to run this business and the Republican Governor that approved the plan should have known that. If you talk a big game you'd better be ready to back it up, Schilling wasn't ready and you Conservatives are just upset because he is one of you. If he had been a Liberal you Conservatives would have been all over it, so please, stuff your self righteous attitude.
Bryan Palumbo May 25, 2012 at 01:56 PM
Robert, Conservatism is an ideology. If you're spending government money to help private companies then you're not being conservative. Just being "Republican" or saying that you're conservative doesn't make you so. What they did was something liberals agree with. And like Jack is trying to explain to you, in Rhode Island... unless you have the Democratic Party's support then you can't do it. You can't blame the Republicans (liberal or conservative) for anything wrong (or right for that matter) in our state because they have had absolutely no power since 1932. That's not rhetoric, that's facts. Why do you think the Tea Party keeps working on replacing liberal Republicans with Conservative ones? Look at Lugar, for instance, in this election. The left does it too, Leiberman was too conservative on Foreign Policy issues so they replaced him with another in the Primary of 2008. Shilling being a conservative, or a bad game designer, or a bad businessman has nothing to do with anything. I get it, you don't like him... but did he have the power to give his company millions of dollars from the Stimulus fund? No, he didn't... only one group of people did and that's the Rhode Island Democrats.
Robert Smith May 25, 2012 at 02:19 PM
Jack, I am blaming Schilling and his ideals because he is so outspoken about the opposition's inability to make sound fiscal decisions. This is a party line that Conservative Repubs use all the time. I am against all bad politics, whichever party it is. What I am opposed to and ranting about is the rhetoric and other crap that Schilling and others like him spew. Of course this is a political issue. Everything in state politics is political. So the Dems decided to compromise and back a Republican and when the venture fails you try to turn it around and blame the democratically controlled legislature, how predictable. What I am attacking is the ideals that schilling and his followers espouse. Acting as if they are the only fiscally responsible party. Now that we know the truth of course I would expect the Repubs to distance themselves and blame the Dems as much as possible. I really don't care what politics you follow this was a bad idea and anyone involved should be held responsible. The numbers of who is in control of this state are well known and citing them is unneccessary. Of course members of both parties are to blame. Schilling and his outspoken attitude are what makes this particular issue so politically polarizing. BTW, Schillings own words, "...this was an all in gamble" Is that what you expect of a Conservative, gambling with state funds. All business is a gamble of sorts, however, this is a highly volatile business the state had no business being involved in.
Bryan Palumbo May 25, 2012 at 02:29 PM
Robert, the Democrats control the state... there's no one else to blame, no one else has the power to do anything. Shilling doesn't, he's not even an elected official, the GOP isn't... they don't even have the votes to stop a veto from being overturned... What's so hard to understand about this? Are you that far up the Democratic Party's backside that you can't see anything going on around you? I'm not saying that to be rude, and I mean no disrespect but come on... you can't be serious with this stuff you're writing.
Robert Smith May 25, 2012 at 02:41 PM
Bryan, you are very naive about how business and politics work. Carcieri was the director of the EDC when this deal was started. as Governor he had final approval. Of course backroom deals were made to get Schilling this money. Better than 50% of Rhode Islanders were against this deal, less than 30% approved and still the deal got done. If you think Schilling was just sitting there waiting for the State then you are truly naive. This was a bad business from the beginning and MA knew this thats why they didn't fight to keep it. If this was such a good deal then he would have found private money for it. RI and Carcieri should have known that. Of course Dems were involved, only a complete moron would assume this was all Republican. Deals are made to get stuff like this done, you scratch my back i'll scratch yours etc. The problem with this deal is that most of RI was against it from the beginning, even Cianci, that should tell you a lot. An awful lot of people knew this was a bad idea from the beginning yet they did it anyway. What that means in this environment is it is only just the tip of the iceberg so to speak. Many more heads will roll, 2 have already quit because of this. Just wait, a few Dems will go as well and you repubs can delight in that when it happens. I am more concerned with the impact of this in an already struggling State economy. I hope they don't stop helping the smaller businesses because that is where we need to go in this State.
Bryan Palumbo May 25, 2012 at 02:51 PM
Robert, I'm just going to copy and paste a small section of what Jack wrote. Maybe it'll get through... probably not, but since we're here, why not? "The Senate consist of 8 GOP and 29 DEM and 1 IND. The House consist of 9 GOP and 65 DEM and 1 Libertarian" And again, I'll say that just being "Republican" doesn't mean you're a conservative. Having a government fund a Private enterprise is a leftist ideal, so while you defend your party because of how badly this went... remember, every time you vote for a liberal (in either party), you're basically saying that doing stuff like this is okay.
Jack Baillargeron May 25, 2012 at 02:53 PM
So let me get this straight, the guy asking for money is at fault, based on his political ideology, according to you. So Obama is at fault, for asking congress to raise the debt ceiling, so he can spend more money. Obama is at fault for asking for more money to subsidize green energy, and is responsible for all failures, not congress, no matter who is in power there. You do realize that is your reasoning right? guess you're voting GOP this time around You going to continue to support the the shilling from washington lol. You are really making me laugh on this one lol Folow the money, I can predict with ease it goes into more DEM blame and liberal idea's in this state then any GOP or conservative ideology, which is fiscal responsibility, any sense of the name conservative, not be liberal with the peoples money, it never works lol. In any case, it has do with stupidity, on the legislatures part. They pushed the money to the EDC, back room deal with shilling, beind closed doors, with speaker Fox (DEM) Caceri (GOP) and many other who were not GOP. They approved the deal. Sorry you lose this argument Tell me where the GOP was able to force and twist DEM arms of of 80% of the legislature, when they make up about 10% Because if thats the case, then how come GOP agenda's are not rampant in this State and elected.The Governorship is always the lesser of 2 evils, and nothing he or she does is without the approval DEM controled legislature lol.
Robert Smith May 25, 2012 at 02:57 PM
I am very serious. You must be some kind of moron if you think only the Dems have any control in this state. Just because they are in the majority doesn't mean the GOP doesn't have any influence. Carcieri is a Republican and he was Director of the EDC as well, Schilling and his followers are staunch Conservative Republicans, so... Don't give me that bull about not being rude. Just like an arrogant Conservative you try to double talk your way out of a problem. Thats twice now you've made rude comments about me. Jack and I know each other personally and know what to expect. I don't know you and can only surmise by the direction of your comments that you are an antagonist. In case you don't know what that means, you try to make your point by insulting the opposition. Which means to me you have nothing substatntial to say so you throw out the insults hoping to troll me into making a comment you can jump on, good luck.
Bryan Palumbo May 25, 2012 at 03:06 PM
Hold on, so the Democratic party has ALL the power in the state but I'm the one "double talking". I'm a Realist. If you know Jack so well, listen to him because out of both of you, he's the only one that is making any sense. "The Senate consist of 8 GOP and 29 DEM and 1 IND. The House consist of 9 GOP and 65 DEM and 1 Libertarian" Just being "Republican" doesn't mean you're a conservative. Having a government fund a Private enterprise is a leftist ideal, so while you defend your party because of how badly this went... remember, every time you vote for a liberal (in either party), you're basically saying that doing stuff like this is okay. Maybe if you read it enough times, it will eventually stick.
Jack Baillargeron May 25, 2012 at 03:21 PM
Sorry bob, but I would really be interested, in how the GOP is controling this State, with a DEM controled super duper legislaturefor 78 years and the governorship, for many many times, making it total control of the State, how has the GOP done it? I mean really, how? Because I have not seen it in my lifeime yet lol. I can also assure you that you cannot filibuster or hold up any bill in our legislature with only 10% membership.
Jack Baillargeron May 25, 2012 at 03:27 PM
On another note this is much better than at my house, I do not get a headache and yelling from the wife, for us to shut up lol. Back to yard kork. I look forward to how the GOP has taken total control of this State for so long, though some kind of magic lol. Please be aware if you decide to tell me how this is done, I will make sure i is posted on every conservative and independent site I can find, if it works on DEMS it must be able to work on any polticians lol. Can't wait to get rid of the power in washington of all these has beens and entrenched idiots of all parties down there, patiently awaiting the secret lol.
Robert Smith May 25, 2012 at 09:22 PM
Jack, I never said the GOP was in control of this state. I merely stated my dislike and anger at Curt Schilling for accepting a corporate handout and defaulting. I have been adamant that ANYBODY involved in this, Dem or Repub, needs to be held accountable. This problem is exacerbated by the fact that Mr Schilling is so outspoken about his ideals. The fact that some Dems are going to fall over this is fine with me. Get as many of the greedy little b'sterds out of there as we can. This guy had no business accepting such a large amount of money for such a risky business. The State now essentially owns that business. Any part of the States money that can't be recouped through that business should come from any assets that Schilling has. Isn't it curious how when confronted with the possibility that he might obtain an additional $14 mil he came up with the neccessary payment so he wasn't in default anymore and after Chafee, who I think is showing extrordinary backbone by trying to find a way out of this, says no your company isn't actually registered in RI so you don't qualify for that $14 mil. Did you know that 38 studios is actually a registered business in Delaware not RI? The actual amount that this is going to cost the State of RI is in excess of $100 mil, so forgive me if I step on a few toes with my humble opinion of Mr. Curt Schilling and his cronies, thanks to Carcieri, another so called Conservative Republican, for bringing this aggravation to our State.
Jack Baillargeron May 25, 2012 at 09:46 PM
Forget it, I give up!! it was Bushs fault for being born obviously. If one person says they are conservative and robs someone, then obviously anyone conservative is a robber and should be put in jail. Anyone who votes for anything other than a DEM, has obviously ruined the Country. Though figures for Congress show a lot different than that lol. If one person exposes a view, then anyone who supports or repeats, that view, is guilty for anything that one person does in his whole life, forever. Yep I give up lol. Can't argue with that lol.
Robert Smith May 25, 2012 at 10:45 PM
Your learning. After all is said and done a few beers cures the ill, at least it helps you forget about it for a while, lol. Seriously, I just learned that theres a lot of computer equipment available in Providence for a shilling or two, lololol. Didn't know I had it in me, hahaha.
Vicky White May 26, 2012 at 06:21 PM
Can't we spice up the debate? lol

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