May 25, 2012|
Former Providence Mayor Vicent "Buddy" Cianci called in D&C to react to Curt Schilling's video company, 38 Studio, laying off all of its employers. He comments on how bad a situation this is for Rhode Island, what Schilling's role has been in the process, and why the EDC didn't properly monitor 38 Studios.
Transcript - will not be 100% accurate
Do you see Jesse was the mayor of Providence, Rhode Island from 7584. And again from 1991 to 2002. You can hear him on WP RO -- he -- -- daily talk show. But -- as he joins us on the AT&T hotline AT&T forgy LTE good morning Buddy Cianci John and Jerry in Boston how -- Good morning aren't sure you do what we're doing very well break this down simply -- -- the white hats and who knows -- in the black cats in this -- down their body. Well you know that's to be determined by. It was -- it was decided before the last elections by the previous administration. That Curt Schilling would get 75 million dollars loan guarantees and it they get a hold out here it's time. And the channel twelve dated and it showed that 50% of Rhode islanders did not say with a 75 million dollar loan. And 20% -- a twenty -- percent -- it was controversial part because virtually no track record. And I think that some of these politicians. And it would celebrity -- via what he saw a guy. And it's kind it is a very competitive industry. And day it's kind of cut -- industry and and basically it's different it's a very difficult to district. And Rhode Island was experts and -- still isn't tough economic times and so they thought they could jumpstart. The brand new industry in the state by giving this. This Coca about a brilliant track record this guarantee. I -- it because critical deeper there's all kinds of there's a lot of accusations of insider deals now with with with people popular government won this thing can happen. And but he did just yesterday but that's a all the employees -- laid off. Curt Schilling according to the governor has not been for coping with an excellent -- -- just been a comedy of errors here it is and it's just which is an awful thing for the state rural. Buddy we can back up before the somebody five million dollar loan guarantees were granted is there any way of knowing how much research how much due diligence. How much vetting was done before that money was handed over. And in the it was kind of a rush to judgment and it was not that pathetic I mean we don't. Even today we don't know the incident we don't have the information. That is necessary to make determinations as to what course of action ought to be take. The governor was on my radio show the other day he said that. The killing was Stonewall. That the whole -- the whole world. A process don't -- number two is quite sure and direct nickname as a -- FaceBook the other day saying. You know she's honest person if you get sick of what was shall observe all the little bolt heads would roll. And people would be troubled. It's a whole -- would get the money for the tax credits what law firms are involved who did the build -- for the building all kinds. You know but it was -- you know -- it was it's it's just an awful -- but but right now I aisle we sit. You know order in this state like this that's a pretty heavy attack and population arrested just think we would've done you'll be there. What a -- you know you know politics and -- as well as anyone but he was was. The governor. Lincoln Chafee do you think he was against that when it happened so he's pretty happy right now he's been vindicated. Well I don't know but that that the the company it's kind of like -- was against -- what at first he was a candidate and he actually tried to testify against the people the economic development corporation it would not -- it even in the room. So he's in a position now where. That's -- got to look at this where he was pitching for the Red Sox and you know it in the fifth inning the Red Sox treated the Yankees to pitch against you know what needs. Because obviously support the companies which -- possibly can't awarded 75 million dollar. Or actually more than that would be a 102 million dollars that the state -- on the hook for. So as we move on with this thing out it's also that's what the ramifications that members of the economic development corporation borders resigning. It's it's in the attendees was supposed to be the best in the breakfast or are people big business guys who put on this economic development corporation. And that it wasn't the opposite we nobody. On the board of the company -- that there was it was supposed to be on the ticket was monitored JP tried to -- the position of he's big shame that these these city. The last seventeen months so now of course is -- to say where -- you over the last seventeen which were gets to unit was problematic would've have been doing to monitor. Why were the most Rhode islanders against it today have weather experts analysts in -- video game industry people. -- explaining to them through you know your show for the newspapers that it was risky or did they just think. They just get the sense that the touchy area and others were. Enamored of -- celebrity. I think I think Oakland all of the above I think that the the previous governor was involved it in in in pushing it he was. Then chairman of the economic development corporation to. And he reported that members of the board that wasn't the problem fitting -- that they should have caught on. That's apparent now. Armed and be. But we have looked kind of vote vote situation -- -- -- can see this would happen. Did that head of the the the executive director of the of the development corporation went to be. Legislature directly for a fifteen billion dollar loan guarantee program developed to develop jobs and that wasn't that was not specifically for. Killing that was the old core parts of businesses who -- comply port. But when Schilling came on the scene that the people that the speaker of the house and others in the people could give the law firms could get the tax credit to business at all what kind of struck -- They went with the legislature and that 75 million dollars added that fifteen million dollars without telling the legislature. Or reconciled that legislation that was earmarked. -- So they were kind of that was the gathering of old and that legislature there was there was they relate to his voting for something they bought. It was for help businesses but it really was for Schilling. And that's that's what people mad at him and you know that the these guys. That people on the economic development corporation have their own agenda they've taken. Issue bonds that would -- not a full faith and -- of the state to state certainly has a moral obligation to patent. And that it considered to be the best and the brightest and they you know held a high esteem because of the companies that they run in these guys turned out big government. But he's someone called us earlier said he learned from you from your show that Schilling lost nothing that Schilling walked away with money in his pocket. Well I -- know where that come from. I don't bite I said that I -- that question actually you know we keep showing his money -- we guaranteed it. And the bonds Irish that he takes some of the money -- ask the question and. Usually I don't know that you don't know he made money here I mean. No because you weren't FaceBook and said that he's got his own money in the deal in his ability you know he put does this game is -- the kingdom -- -- -- able -- -- And at the bit of the returns next game -- in didn't even come back at the -- of the -- just literally it went to a previously. And then it if they were monitoring. If CDC was monitoring this this whole process and they weren't. They would have seen that the cash flow was the not number one number two they can always be part of the development of this second. And number three that debt relief that the -- they had a burn rate it just was reasonable. Considering the fact that they had get a game out there in order to meet -- deadlines at the bit that were imposed upon them to pay the loan. So it's day it's very problematic. In his it is what else was happening now they had an -- certain people tend if I guess they did meet those deadlines probably everybody off. And they tried to get video tax credits you know video game in the tax -- that's open window open but to sit at. But stated not gonna chase we'll give them more money. And the governor -- not that bad money you'll put money after bad. So we're the real enemy it would optical winner and -- not people resigning from the board does the economic development board Thursday just everybody in this in the affirmatively off. I I don't know -- state -- state is gonna get out of -- But to the credit of the people of Massachusetts. A they've refused shall -- well they they wouldn't give them a -- that's what he came here. -- final question for me is our chance that this gets worse before it gets better and by that I mean. Litigation lawsuits may be even charges being brought against certain people is that a possibility. There's all kinds of charges you know well. You know given -- red you know both -- Any poll you read George Washington pocket you know there's there's there's honest graft and then there is is -- is illegal graft on to graft is what heavily insiders. Looks into gained something from -- -- -- to abided Curt Schilling go to the law firm. That he came to when it rallied get him -- get -- -- of -- -- little yellow -- he went to a -- -- Corso was the king of tax credits here he's very and he's very friendly with the speaker of the house. So you know all these things and being looked I understand the feds are looking at a and but whether there's any criminal criminality to a I don't know it's just stupidity in it's is it it certainly is -- wet cold diligence. It certainly was. A bad bad bad process that was used -- -- implemented by our -- economic development corporation. Are you or anyone else getting a whole Akashi areas there is the hiding -- You know I think this kind of put our yet. I think he was kind of an after thought he was kind of like a passenger on the train he was the government he went to jumpstart an industry. But he came remember there's a lot of blame to go around you had been through the law firms as speaker of the house that they -- -- the economic development by the way cool. What is what who. The first was involved in this thing in it and went to see the speaker's circuit listened and we get some money in the governor found out about it -- the -- should be great state. You have to look at all the players. They get a scorecard to see who stood to gain final whistle did the build out of the building -- the building. But the reserves explore building in downtown proper school lawn net. What connection if that person to have the ocelot fur -- who they connected to that made the big money was gonna do the tax credit for the movies and big money there. And and expressed that attitude that it's that the public he scammed and as long as we have the control will political through what -- even know -- -- -- here. And they thought that this in the behalf for a successful and that it wasn't established a track record that this guy had a very fragile industry it's very competitive. And and we will I guess not up not me I was against it from the beginning. But I I think that there's little people -- whatever. Which again with the industry with the opportunity for a quick fix integrated industry that. That frankly you they thought it took could could post a financial. Prowess of the state Rhode -- -- -- -- -- Torre's former Providence mayor Buddy Cianci former Boston resident he missed the halfway house up your -- Yeah I'd do -- album are -- aren't gonna Tibetans visit celebrity alumni association. It's got the book with the longest title in the history books -- Curtis anybody. Yet it politics and -- You can buy Amazon or how -- prosecuted mobsters rebuilt a dying city done the Sinatra spent five years and -- federally funded gated community and lived to tell the tale that's what long title but he thinks the time we appreciate it. You domestic that is yet to -- Dennis and Callahan their rebel. Would join us next C NBC sports business reporter.